Royce Global Financial Services Fund (RYFSX)
18

At a Glance

Why invest in Global Financial Services?

  • Seeks to benefit from the long-term structural changes in the global financial sector, such as the growth of investment management, non-traditional lenders, exchange traded financial instruments, and professional wealth management.
  • Uses a bottom-up approach to invest in U.S. and non-U.S. companies with strong competitive positions that are benefiting from these trends, including those in asset management, diversified financial services, and specialized technology companies with financial expertise.
  • Average annual total return of 7.7% since inception (12/31/03) through 12/31/23.

As of 12/31/23

  • Small/Mid-Cap
    Core Approach
    $3.72B
    Avg. Market Cap
  • Low
    Volatility
    99%
    Active Share
  • Portfolio Manager
    Tenure
    20+
    Years on Fund

Portfolio Management

"What we do in the global financial space is distinctly different. We invest primarily in non-leveraged financials–the agents, the asset managers, the insurance brokers, and the service and tech suppliers to this sector."
Chuck Royce

Manager Tenure

Manager Tenure

Performance

Average Annual Total Returns (%)

Outperformed MSCI ACWI Small Cap for the Quarter and 3-Year periods as of 12/31/23. Outpaced Russell 2000 for the 3-Year period as of 12/31/23.
QTR YTD 1YR 3YR 5YR 10YR 15YR SINCE INCEPT.
(12/31/03)
Global Financial Services 12.73 15.7215.723.519.686.4810.487.72
MSCI ACWI SC 11.98 16.8416.843.339.856.6611.168.47
Russell 2000 14.03 16.9316.932.229.977.1611.308.11

Annual Operating Expenses: Gross 1.98 Net 1.57

FEB YTD 1YR 3YR 5YR 10YR 15YR SINCE INCEPT.
(12/31/03)
Global Financial Services 4.03 4.8614.872.898.157.0112.537.91
MSCI ACWI SC 3.25 0.5410.281.207.196.3912.558.43
Russell 2000 5.65 1.5410.05-0.946.897.1313.278.12

Annual Operating Expenses: Gross 1.98 Net 1.57

MAR YTD 1YR 3YR 5YR 10YR 15YR SINCE INCEPT.
(12/31/03)
Global Financial Services -0.57 4.2628.140.267.966.8511.707.86
MSCI ACWI SC 0.24 0.7818.090.127.156.3712.188.42
Russell 2000 -1.35 0.1719.16-2.386.746.7712.628.03

Annual Operating Expenses: Gross 1.98 Net 1.57

Important Performance and Expense Information

All performance information reflects past performance, is presented on a total return basis, reflects the reinvestment of distributions, and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, so that shares may be worth more or less than their original cost when redeemed. Shares redeemed within 30 days of purchase may be subject to a 1% redemption fee, payable to the Fund, which is not reflected in the performance shown above; if it were, performance would be lower. Current month-end performance may be higher or lower than performance quoted and may be obtained at www.royceinvest.com. Gross operating expenses reflect the Fund's gross total annual operating expenses for the Service Class and include management fees, 12b-1 distribution and service fees, other expenses, and acquired fund fees and expenses. Net operating expenses reflect contractual fee waivers and/or expense reimbursements. All expense information is reported as of the Fund’s most current prospectus. Royce has contractually agreed, without right of termination, to waive fees and/or reimburse expenses to the extent necessary to maintain the Service Class’s net annual operating expenses (excluding brokerage commissions, taxes, interest, litigation expenses, acquired fund fees and expenses, and other expenses not borne in the ordinary course of business) at or below 1.49% through April 30, 2024. Acquired fund fees and expenses reflect the estimated amount of the fees and expenses incurred indirectly by the Fund through its investments in mutual funds and other investment companies.

Rolling Returns

For 98% of the periods, 10-year average annual total returns were greater than 5%.

Absolute Returns: 10-Year Monthly Rolling Return PeriodsNumber of 10-Year Average Annual Return Periods Since the Fund’s Inception

Return Range Periods % in Range
> 10% 34 28
> 5% and ≤ 10% 84 69
> 0% and ≤ 5% 3 2
≤ 0% 0 0

The Fund averaged a 8.7% return over all 121 10-year monthly rolling return periods.

Market Cycle Performance

The Fund outperformed the MSCI ACWI SC in each of the two previous full market cycle periods.
Peak-Peak - 01/26/18 - 01/17/20
Global Financial Services2.7%
MSCI ACWI SC2.3%

Peak-Peak - 01/17/20 - 11/08/21
Global Financial Services41.7%
MSCI ACWI SC39.5%

Peak-Current - 11/08/21 - 12/31/23
Global Financial Services-11.3%
MSCI ACWI SC-9.1%

Royce defines market cycles as those that have retreated at least 15% from a previous market peak and have rebounded to establish a new peak above the previous one. 

Royce defines market cycles as those that have retreated at least 15% from a previous market peak and have rebounded to establish a new peak above the previous one. 

Calendar Year Total Returns (%)

 

Growth of Investment

Value of $10,000 invested between 12/31/03 and 12/31/23

Global Financial Services$44,239.70
MSCI ACWI SC$50,841.50

Risk

Low Volatility vs. Peer Group as of 12/31/23

The Fund has a low volatility within its peer group of 51 Financial Funds based on 5-year rolling standard deviation.

Down Market Performance Comparisonas of 12/31/23

The Fund outperformed the MSCI ACWI SC during five out of seven downturns of 15% or more from the index’s prior historical high since the Fund’s inception.

Market Downturns (%)

DownMarketImg
Outperformed in 12 out of 17 down quarters.

MSCI ACWI SC Down Quarters

QUARTER ENDMSCI ACWI SC (%)GLOBAL FINANCIAL SERVICES (%)SPREAD (%)
09/30/23-3.4-0.8+2.6
09/30/22-5.3-4.2+1.1
06/30/22-17.1-17.3-0.2
03/31/22-6.2-6.0+0.2
09/30/21-1.5-2.0-0.5
03/31/20-30.2-28.8+1.4
09/30/19-1.2-1.4-0.2
12/31/18-16.8-15.3+1.5
03/31/18-0.5+3.7+4.2
09/30/15-10.5-10.2+0.3
09/30/14-6.1-4.2+1.9
06/30/13-0.8+4.1+4.9
06/30/12-6.5-6.2+0.3
09/30/11-20.8-20.1+0.7
06/30/11-0.6-2.8-2.2
06/30/10-10.1-12.8-2.7
03/31/09-9.2-8.7+0.5

Capture Ratios Fund's First Full Quarter (12/31/03) to 12/31/23

Upside Capture Ratio measures a manager's performance in up markets relative to the Fund's benchmark. It is calculated by measuring the Fund's performance in quarters when the benchmark goes up and dividing it by the benchmark's return in those quarters.

Downside Capture Ratio measures a manager's performance in down markets relative to the Fund's benchmark. It is calculated by measuring the Fund's performance in quarters when the benchmark goes down and dividing it by the benchmark's return in those quarters.

Long Term Risk Measurementas of 12/31/23

Over the past 5 years, the Fund produced lower volatility than the MSCI ACWI Small Cap Index.
Over the past 3 years, the Fund outperformed the MSCI ACWI Small Cap Index with lower volatility.
From the Fund's inception, the Fund produced lower volatility than the MSCI ACWI Small Cap Index.

Go to Relative Risk Spectrum Tool

Morningstar Statistical Measures as of 12/31/23

The Fund beat the MSCI ACWI SC on a risk-adjusted basis, as shown by its Sharpe ratio. In addition, the Fund produced lower volatility than the MSCI ACWI SC and 50% of financial objective funds, as shown by its standard deviation.
The Fund produced lower volatility than the MSCI ACWI SC and 90% of financial objective funds, as shown by its standard deviation.
The Fund produced lower volatility than 90% of financial objective funds, as shown by its standard deviation.
Sharpe RatioStandard Deviation
Global Financial Services0.3717.53
MSCI ACWI SC0.3817.35
Category Median0.3720.53
Best Decile Breakpoint0.5517.73

Category Median and Best Decile Breakpoint based on 47 financial objective funds (oldest class only) with at least ten years of history.
Sharpe Ratio Standard Deviation
Global Financial Services
MSCI ACWI SC
Category Median
Best Quartile Breakpoint

Composition

Morningstar Style Map™as of 09/30/23

mstar-RYFSX

The Morningstar Style Map is the Morningstar Style Box™ with the center 75% of fund holdings plotted as the Morningstar Ownership Zone™. The Morningstar Style Box is designed to reveal a fund's investment strategy. The Morningstar Ownership Zone provides detail about a portfolio's investment style by showing the range of stock sizes and styles. The Ownership Zone is derived by plotting each stock in the portfolio within the proprietary Morningstar Style Box. The shaded area represents the center 75% of the Fund's assets while the plot point in the middle represents the weighted average of its holdings. Over time, the shape and location of a fund's ownership zone may vary.

Portfolio Diagnosticsas of 12/31/23

  RYFSX MSCI ACWI SC
Average Market Cap
3.72B
2.93B
99%
-
2023 Portfolio Turnover
12%
-
Weighted Average P/E,
10.6x
14.5x
Weighted Average P/B,
1.8x
1.8x
Non-U.S. Investments (% of Net Assets)
50.7%
-
U.S. Investments (% of Net Assets)
47.0%
-

Portfolio Allocation

  • Total
    Holdings
    49


SECTORS
RYFSX (%) MSCI
ACWI SC (%)
Financials
81.0
14.3
Real Estate
8.9
8.1
Materials
3.5
8.1
Information Technology
2.4
12.1
Industrials
1.9
19.4
Consumer Discretionary
-
13.2
Health Care
-
9.9
Consumer Staples
-
4.9
Energy
-
4.4
Communication Services
-
3.1
Utilities
-
2.6
Cash and Cash Equivalents
2.3
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
First Citizens BancShares Cl. A
4.6
Tel Aviv Stock Exchange
4.5
Sprott
4.5
FirstService Corporation
4.5
KKR & Co.
4.4
E-L Financial
3.8
Popular
3.5
Franco-Nevada
3.5
Carlyle Group
3.1
Intermediate Capital Group
3.1
Top 10 as % of Net Assets
39.5

SECTORS
RYFSX (%) MSCI
ACWI SC (%)
Financials
81.0
14.3
Real Estate
8.9
8.1
Materials
3.5
8.1
Information Technology
2.4
12.1
Industrials
1.9
19.4
Consumer Discretionary
-
13.2
Health Care
-
9.9
Consumer Staples
-
4.9
Energy
-
4.4
Communication Services
-
3.1
Utilities
-
2.6
Cash and Cash Equivalents
2.3
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
First Citizens BancShares Cl. A
4.6
Tel Aviv Stock Exchange
4.5
Sprott
4.5
FirstService Corporation
4.5
KKR & Co.
4.4
E-L Financial
3.8
Popular
3.5
Franco-Nevada
3.5
Carlyle Group
3.1
Intermediate Capital Group
3.1
Top 10 as % of Net Assets
39.5

Portfolio Holdings

Unaudited schedules of portfolio holdings are presented for informational purposes only.

View the complete list of holdings (unaudited) for this fund as of the previous quarter-end: 12/31/23.

Geographical Breakdown

Portfolio Country Breakdownas of 12/31/23

Countries% of net assets
(subject to change)
United States47.0
Canada26.4
Bermuda5.5
Israel4.5
United Kingdom3.1
India2.9
Panama2.3
Brazil2.0
New Zealand1.5
South Africa1.1
Poland0.9
Egypt0.5

Distributions

NAV & Distributions


Start DateEnd Date
to

Learn more about distributions

Distributions

RECORD
DATE
EX-DATE PAYABLE
DATE
INCOME ($) SHORT
TERM
GAINS ($)
LONG
TERM
GAINS ($)
RETURN OF
CAPITAL ($)
TOTAL ($) REINVEST
PRICE ($)
12/13/23 12/14/23 12/14/23 0.2803 0.0000 0.5120 - 0.7923 10.00
12/14/22 12/15/22 12/15/22 0.0817 - 0.1146 - 0.1963 9.27
12/15/21 12/16/21 12/16/21 0.3953 0.0021 0.3437 - 0.7411 11.75
12/09/20 12/10/20 12/10/20 0.0423 - 0.6940 - 0.7363 10.31
12/11/19 12/12/19 12/12/19 0.1484 - 0.0920 - 0.2404 9.65
12/12/18 12/13/18 12/13/18 0.0873 0.0046 0.9203 - 1.0122 8.51
12/13/17 12/14/17 12/14/17 0.2282 - 0.1532 - 0.3814 10.34
12/14/16 12/15/16 12/15/16 0.0483 0.0062 0.0180 - 0.0725 8.90
12/16/15 12/17/15 12/17/15 0.1085 0.0626 0.6778 - 0.8489 7.95
12/16/14 12/17/14 12/17/14 0.0671 0.0895 0.5577 - 0.7143 9.03
12/04/13 12/05/13 12/05/13 0.0177 - - - 0.0177 9.33
12/27/12 12/28/12 12/28/12 0.0284 - - - 0.0284 6.75
12/05/12 12/06/12 12/06/12 0.0335 - - - 0.0335 6.66
12/07/11 12/08/11 12/08/11 0.0559 - - - 0.0559 5.69
12/08/10 12/09/10 12/09/10 0.0959 - - - 0.0959 6.38
12/08/09 12/09/09 12/09/09 0.0442 - - - 0.0442 5.43

NAV History for

Fees & Expenses

Shareholder Fees (%)

(fees paid directly from your investment)

Maximum sales charge (load) imposed on purchases 0.00
Maximum deferred sales charge 0.00
Maximum sales charge (load) imposed on reinvested dividends 0.00
Redemption fee (as a percentage of amount redeemed on shares held for less than 30 days) 1.00

Annual Fund Operating Expenses (%)

(expenses that you pay each year as a percentage of the value of your investment)

Management fees 1.00
Distribution (12b-1) fees 0.25
Other expenses 0.65
Acquired fund fees and expenses 0.08
Total annual Fund operating expenses 1.98
Fee waivers and/or expense reimbursements (0.41)
Total annual Fund operating expenses after fee waivers and/or expense reimbursements1.57

Royce has contractually agreed, without right of termination, to waive fees and/or reimburse expenses to the extent necessary to maintain the Service Class’s net annual operating expenses (excluding brokerage commissions, taxes, interest, litigation expenses, acquired fund fees and expenses, and other expenses not borne in the ordinary course of business) at or below 1.49% through April 30, 2024.

Total annual Fund operating expenses may differ from the expense ratio in the Fund's Financial Highlights because they include only the Fund's direct operating expenses and do not include acquired fund fees and expenses, which reflect the estimated amount of the fees and expenses incurred indirectly by the Fund through its investments in mutual funds and other investment companies.

Important Disclosure Information

This material is not authorized for distribution unless preceded or accompanied by a current prospectus. Please read the prospectus carefully before investing or sending money. The Fund invests primarily in equity securities that are "principally" engaged in the financial services industry. The Fund is not a complete investment program. It is designed for long-term investors who can accept the risks of investing in a fund with common stock holdings primarily in small-cap and mid-cap financial services companies. Therefore, the Fund is subject to certain risks associated with the industry, including, among other things, changes in government regulations, interest rate levels, and general economic conditions. The Fund invests primarily in small-cap and/or mid-cap stocks, which may involve considerably more risk than investing in larger-cap stocks. (Please see "Primary Risks for Fund Investors" in the prospectus.) As of 12/31/23 the Fund invested a significant portion of its assets in a limited number of stocks, which may involve considerably more risk than a more broadly diversified portfolio because a decline in the value of any of these stocks would cause the Fund’s overall value to decline to a greater degree. The Fund will normally invest at least 40% of its net assets in equity securities of companies headquartered in at least three different countries outside of the United States, which may involve political, economic, currency, and other risks not encountered in U.S. investments.(Please see "Investing in Foreign Securities" in the prospectus.)

Sector weightings are determined using the Global Industry Classification Standard ("GICS"). GICS was developed by, and is the exclusive property of, Standard & Poor's Financial Services LLC ("S&P") and MSCI Inc. ("MSCI"). GICS is the trademark of S&P and MSCI. "Global Industry Classification Standard (GICS)" and "GICS Direct" are service marks of S&P and MSCI.

The Price-Earnings, or P/E, Ratio is calculated by dividing a company's share price by its trailing 12-month earnings-per-share (EPS). The Portfolio's P/E ratio calculation excludes cash holdings and companies with zero or negative earnings. The Price-to-Book, or P/B, Ratio is calculated by dividing a company's share price by its book value per share. Standard deviation is a statistical measure within which a client account’s total returns have varied over time. The greater the standard deviation, the greater a portfolio’s volatility.
Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and/or Russell ratings or underlying data and no party may rely on any Russell Indexes and/or Russell ratings and/or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell’s express written consent. Russell does not promote, sponsor or endorse the content of this communication.
Source: MSCI.  MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein.  The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products.  This report is not approved, endorsed, reviewed or produced by MSCI. None of the MSCI data is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. The MSCI ACWI Small Cap Index is an unmanaged, capitalization-weighted index of global small-cap stocks. Index returns include net reinvested dividends and/or interest income. The Russell 2000 is an unmanaged, capitalization-weighted index of domestic small-cap stocks. It measures the performance of the 2,000 smallest publicly traded U.S. companies in the Russell 3000 index.  The performance of an index does not represent exactly any particular investment, as you cannot invest directly in an index.

Managed by Chuck Royce since 2003

12/31/2003 12:00:00 AM

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