Royce Small-Cap Opportunity Fund (RYPNX, RYOFX, ROFCX, ROFIX, ROFRX)
137

At a Glance

Why invest in Small-Cap Opportunity?

  • Small-cap value fund that uses an opportunistic approach to invest in companies are categorized into themes: Turnarounds, Unrecognized Asset Values, Undervalued Growth, and Interrupted Earnings. Small-cap stocks' market caps are less than the largest stock in the Russell 2000® Index.
  • Identifies a catalyst for future earnings growth in the form of new management, more favorable business cycle, product innovation, and/or margin improvement.
  • Has historically produced strong results, particularly during up market periods, outperforming its benchmark, the Russell 2000 Value Index, during six out of seven trough-to-peak periods since inception (11/19/96).

As of 03/31/25

  • Small-Cap
    Value Approach
    $1.20B
    Avg. Market Cap
  • High
    Volatility
    91%
    Active Share
  • Fund
    Longevity
    28+
    Years of History

Portfolio Management

"We look for companies with what we think are attractively cheap valuations where we've also identified a catalyst for growth, such as an earnings rebound or recovery."
—Brendan Hartman

Manager Tenure

Manager Tenure

Performance

Average Annual Total Returns (%)

Outperformed Russell 2000 Value for the 5-Year, 10-Year, 15-Year, 20-Year and since inception (11/19/96) periods as of 03/31/25. Outpaced Russell 2000 for the 5-Year, 10-Year and since inception (11/19/96) periods as of 03/31/25.
QTR YTD 1YR 3YR 5YR 10YR 15YR 20YR 25YR SINCE INCEPT.
(11/19/96)
Small-Cap Opportunity -13.00 -13.00-9.52-1.0518.936.988.477.278.4810.34
Russell 2000 Value -7.74 -7.74-3.120.0515.316.078.196.808.478.51
Russell 2000 -9.48 -9.48-4.010.5213.276.308.987.556.837.82

Annual Operating Expenses: Gross 2.34 Net 2.24

APR YTD 1YR 3YR 5YR 10YR 15YR 20YR 25YR SINCE INCEPT.
(11/19/96)
Small-Cap Opportunity -4.46 -16.88-6.800.6214.106.637.567.478.4410.13
Russell 2000 Value -4.02 -11.45-0.681.3811.745.877.416.878.278.33
Russell 2000 -2.31 -11.570.873.279.886.328.427.747.007.71

Annual Operating Expenses: Gross 2.34 Net 2.24

MAY YTD 1YR 3YR 5YR 10YR 15YR 20YR 25YR SINCE INCEPT.
(11/19/96)
Small-Cap Opportunity 1.32 -15.78-5.981.0615.386.707.657.548.4310.18
Russell 2000 N/A N/AN/AN/AN/AN/AN/AN/AN/AN/A
Russell 2000 Value N/A N/AN/AN/AN/AN/AN/AN/AN/AN/A

Annual Operating Expenses: Gross 2.34 Net 2.24

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. Consultant Class shares redeemed within 365 days of purchase may be subject to a 1% contingent deferred sales charge, payable to the Fund's distributor, Royce Fund Services, LLC, 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 Consultant Class and include management fees, 12b-1 distribution and service fees, and other 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 Consultant 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 2.24% through April 30, 2026.

All performance and risk information presented in this material prior to the commencement date of Consultant Class shares on 3/30/06 reflects Investment Class results. Consultant Class shares bear an annual distribution expense that is not borne by Investment Class shares. If Consultant Class's annual distribution expense had been reflected, total returns prior to 3/30/06 would have been lower.

Rolling Returns

On a monthly basis, the Fund outperformed the Russell 2000 Value in 73% of all 10-Year periods; and 62% of all 5-Year periods.

For 95% of the periods, 10-year average annual total returns were greater than 5%.

Relative Returns: Monthly Rolling Average Annual Return Periods 25 Years Through 03/31/25

periods beating
the index(%)		 fund
avg(%)		 index
avg(%)
10-year
132/181
 73 8.7 8.2
5-year
149/241
 62 9.4 8.5
1-year
143/289
 49 12.7 10.7

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% 73 33
> 5% and ≤ 10% 137 62
> 0% and ≤ 5% 11 5
≤ 0% 0 0

The Fund averaged a 9.4% return over all 221 10-year monthly rolling return periods.

Market Cycle Performance

The Fund outperformed the Russell 2000 Value in one of the two previous full market cycle periods.
Peak-Peak - 08/22/18 - 11/08/21
Small-Cap Opportunity59.2%
Russell 2000 Value37.6%

Peak-Peak - 11/08/21 - 11/25/24
Small-Cap Opportunity6.7%
Russell 2000 Value9.9%

Peak-Current - 11/25/24 - 03/31/25
Small-Cap Opportunity-18.1%
Russell 2000 Value-15.9%

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 11/19/96 and 03/31/25

Small-Cap Opportunity$162,752.74
Russell 2000 Value$101,437.51

Risk

High Volatility vs. Peer Group as of 03/31/25

The Fund has a high volatility within its peer group of 459 Small-Cap Funds based on 5-year rolling standard deviation.

Up Market Performance Comparisonas of 03/31/25

The Fund outperformed the Russell 2000 Value during six out of seven trough-to-peak periods since the Fund’s inception (11/19/96).
UpMarketImg

Capture Ratios Fund's First Full Quarter (12/31/96) to 03/31/25

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 03/31/25

Over the past 10 years, the Fund outperformed the Russell 2000 Value Index.
Over the past 5 years, the Fund outperformed the Russell 2000 Value Index.
From the Fund's inception, the Fund outperformed the Russell 2000 Value Index.

Go to Relative Risk Spectrum Tool

Morningstar Statistical Measures as of 03/31/25

Sharpe RatioStandard Deviation
Small-Cap Opportunity0.3224.44
Russell 2000 Value0.2921.31
Category Median0.3320.59
Best Quartile Breakpoint0.3819.67

Category Median and Best Quartile Breakpoint based on 453 small-cap objective funds (oldest class only) with at least ten years of history.
Sharpe Ratio Standard Deviation
Small-Cap Opportunity
Russell 2000 Value
Category Median
Best Quartile Breakpoint

Composition

Morningstar Style Map™as of 12/31/24

mstar-ROFCX

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 03/31/25

  ROFCX Russell 2000 Value
Average Market Cap
1.20B
2.04B
Active Share
91%
-
2024 Portfolio Turnover
35%
-
Weighted Average P/B,
1.5x
1.3x
Weighted Average P/S
0.9x
1.2x
U.S. Investments (% of Net Assets)
87.8%
-
Non-U.S. Investments (% of Net Assets)
9.4%
-

Portfolio Allocation

  • Total
    Holdings
    225

Top 200 holdings represented 97% of the Fund's equity investments as of 03/31/25.

SECTORS		ROFCX (%) RUSSELL
2000 VALUE (%)
Industrials
26.3
12.3
Information Technology
19.8
6.0
Consumer Discretionary
10.6
8.7
Financials
10.2
30.7
Energy
9.9
6.9
Health Care
9.7
8.5
Materials
5.3
3.9
Communication Services
4.6
3.2
Consumer Staples
0.4
2.5
Real Estate
0.4
11.4
Utilities
-
5.9
Cash and Cash Equivalents
2.9
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Select Water Solutions Cl. A
0.9
Lakeland Industries
0.8
Champion Homes
0.8
Astronics Corporation
0.8
Mistras Group
0.8
Knowles Corporation
0.8
Victory Capital Holdings
0.8
ATI
0.8
Leonardo DRS
0.8
BankUnited
0.7
CECO Environmental
0.7
WNS (Holdings)
0.7
Luxfer Holdings
0.7
FARO Technologies
0.7
Kyndryl Holdings
0.7
VSE Corporation
0.7
Aviat Networks
0.7
Ichor Holdings
0.7
Comstock Resources
0.7
AAR Corp.
0.7
Top 20 as % of Net Assets
15.0

SECTORS		ROFCX (%) RUSSELL
2000 VALUE (%)
Industrials
26.3
12.3
Information Technology
19.8
6.0
Consumer Discretionary
10.6
8.7
Financials
10.2
30.7
Energy
9.9
6.9
Health Care
9.7
8.5
Materials
5.3
3.9
Communication Services
4.6
3.2
Consumer Staples
0.4
2.5
Real Estate
0.4
11.4
Utilities
-
5.9
Cash and Cash Equivalents
2.9
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Select Water Solutions Cl. A
0.9
Lakeland Industries
0.8
Champion Homes
0.8
Astronics Corporation
0.8
Mistras Group
0.8
Knowles Corporation
0.8
Victory Capital Holdings
0.8
ATI
0.8
Leonardo DRS
0.8
BankUnited
0.7
CECO Environmental
0.7
WNS (Holdings)
0.7
Luxfer Holdings
0.7
FARO Technologies
0.7
Kyndryl Holdings
0.7
VSE Corporation
0.7
Aviat Networks
0.7
Ichor Holdings
0.7
Comstock Resources
0.7
AAR Corp.
0.7
Top 20 as % of Net Assets
15.0

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: 03/31/25.

Least Portfolio Overlap - U.S. Equity Funds

Greatest Portfolio Overlap - U.S. Equity Funds

Geographical Breakdown

Distributions

NAV & Distributions


Start DateEnd Date
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Distributions

RECORD
DATE		 EX-DATE PAYABLE
DATE		 INCOME ($) SHORT
TERM
GAINS ($)		 LONG
TERM
GAINS ($)		 RETURN OF
CAPITAL ($)		 TOTAL ($) REINVEST
PRICE ($)
12/11/24 12/12/24 12/12/24 0.0000 0.0005 0.9419 - 0.9424 12.42
12/13/23 12/14/23 12/14/23 0.0000 0.0442 0.4840 - 0.5282 11.45
12/14/22 12/15/22 12/15/22 0.0000 0.0531 0.4752 - 0.5283 10.32
12/15/21 12/16/21 12/16/21 0.0000 0.7467 2.1888 - 2.9355 12.60
12/11/19 12/12/19 12/12/19 0.0000 - 0.1583 - 0.1583 9.98
12/12/18 12/13/18 12/13/18 0.0000 0.1797 0.6444 - 0.8241 8.64
12/13/17 12/14/17 12/14/17 0.0000 0.1095 1.5599 - 1.6694 10.89
12/14/16 12/15/16 12/15/16 0.0000 - 0.8860 - 0.8860 10.83
12/16/15 12/17/15 12/17/15 0.0000 - 1.0617 - 1.0617 9.00
12/16/14 12/17/14 12/17/14 0.0000 0.1123 1.8262 - 1.9385 11.40
12/04/13 12/05/13 12/05/13 0.0000 0.0218 1.5136 - 1.5354 13.40
12/05/12 12/06/12 12/06/12 0.0000 0.1317 0.5382 - 0.6699 10.54
12/07/11 12/08/11 12/08/11 0.0000 - 0.1887 - 0.1887 9.34

NAV History for

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Fees & Expenses

Shareholder Fees (%)

(fees paid directly from your investment)

Maximum sales charge (load) imposed on purchases 0.00
Maximum deferred sales charge on purchases held for less than 365 days 1.00
Maximum sales charge (load) imposed on reinvested dividends 0.00

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 1.00
Other expenses 0.34
Total annual Fund operating expenses 2.34
Fee waivers and/or expense reimbursements (0.10)
Total annual Fund operating expenses after fee waivers and/or expense reimbursements2.24
Royce has contractually agreed to waive fees and/or reimburse 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 2.24% through April 30, 2026.

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 small-cap and micro-cap stocks, which may involve considerably more risk than investing in larger-cap stocks. (Please see "Primary Risks for Fund Investors" in the prospectus.) The Fund’s broadly diversified portfolio does not ensure a profit or guarantee against loss.

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 Russell 2000 Value and Growth indices consist of the respective value and growth stocks within the Russell 2000 as determined by Russell Investments. 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.

† Brendan Hartman lead manager since 2024 (manager 2021-2024), Jim Stoeffel since 2021, Jim Harvey since 2021, assistant Kavitha Venkatram since 2022

3/30/2006 12:00:00 AM

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