Royce Small-Cap Opportunity Fund (RYPNX, RYOFX, ROFCX, ROFIX, ROFRX)
2

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
  • Outperformed its benchmark, the Russell 2000 Value Index, for the 3-, 5-, 10-, 15-, 20-, 25-year, and since inception (11/19/96) periods ended 6/30/22

Morningstar Overall Rating TM

Based on risk-adjusted returns out of 439 Small Value Funds as of 6/30/22

As of 06/30/22

  • Small-Cap
    Value Approach
    $1.00B
    Avg. Market Cap
  • High
    Volatility
    90%
    Active Share
  • Fund
    Longevity
    25+
    Years of History

Portfolio Management

"Our goal is to find companies where we've identified a catalyst for growth that are also very inexpensive based on their price to sales and price to book."
Jim Stoeffel

Manager Tenure

Manager Tenure

Performance

Average Annual Total Returns (%)

Outperformed Russell 2000 Value for the 3-Year, 5-Year, 10-Year, 15-Year, 20-Year and since inception (11/19/96) periods as of 06/30/22. Outpaced Russell 2000 for the Year To Date, 1-Year, 3-Year, 5-Year, 10-Year, 15-Year, 20-Year and since inception (11/19/96) periods as of 06/30/22.
QTR YTD 1YR 3YR 5YR 10YR 15YR 20YR SINCE INCEPT. DATE
Small-Cap Opportunity -18.22 -22.08-22.0912.678.3211.047.179.7711.59 11/19/96
Russell 2000 Value -15.28 -17.31-16.286.184.899.055.587.778.76 N/A
Russell 2000 -17.20 -23.43-25.204.215.179.356.338.177.83 N/A

Annual Operating Expenses: 1.21

JUL YTD 1YR 3YR 5YR 10YR 15YR 20YR SINCE INCEPT. DATE
Small-Cap Opportunity 10.80 -13.66-11.7616.1910.2812.508.2911.4011.99 11/19/96
Russell 2000 Value 9.68 -9.30-4.779.446.7110.186.869.149.12 N/A
Russell 2000 10.44 -15.43-14.297.517.1210.607.549.608.23 N/A

Annual Operating Expenses: 1.21

AUG YTD 1YR 3YR 5YR 10YR 15YR 20YR SINCE INCEPT. DATE
Small-Cap Opportunity 6.91 -7.70-4.4421.3312.5512.739.1911.7812.26 11/19/96
Russell 2000 Value 6.71 -3.221.4414.128.8710.547.389.479.38 N/A
Russell 2000 7.26 -9.29-7.1711.989.2611.008.119.938.51 N/A

Annual Operating Expenses: 1.21

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. Operating expenses reflect the Fund's total annual operating expenses for the Investment Class as of the Fund's most current prospectus and include management fees and other expenses.

Rolling Returns

On a monthly basis, the Fund outperformed the Russell 2000 Value in 99% of all 10-Year periods; 74% of all 5-Year periods; and 58% of all 1-Year periods.

For 97% of the periods, 10-year average annual total returns were greater than 5%.

Relative Returns: Monthly Rolling Average Annual Return Periods 20 Years Through 06/30/22

periods beating
the index(%)
fund
avg(%)
index
avg(%)
10-year
120/121
99 10.1 8.5
5-year
134/181
74 9.6 7.9
1-year
132/229
58 16.5 12.1

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% 93 49
> 5% and ≤ 10% 90 48
> 0% and ≤ 5% 5 3
≤ 0% 0 0

The Fund averaged a 10.5% return over all 188 10-year monthly rolling return periods.

Market Cycle Performance

The Fund outperformed the Russell 2000 Value in each of the two previous full market cycle periods.
Peak-Peak - 06/23/15 - 08/22/18
Small-Cap Opportunity41.8%
Russell 2000 Value39.0%

Peak-Peak - 08/22/18 - 11/08/21
Small-Cap Opportunity65.1%
Russell 2000 Value37.6%

Peak-Current - 11/08/21 - 06/30/22
Small-Cap Opportunity-26.0%
Russell 2000 Value-21.8%

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 06/30/22

Small-Cap Opportunity$165,705.24
Russell 2000 Value$85,821.61

Risk

High Volatility vs. Peer Group as of 06/30/22

The Fund has a high volatility within its peer group of 509 Small-Cap Funds based on 5-year rolling standard deviation.

Up Market Performance Comparisonas of 06/30/22

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

Capture Ratios Fund's First Full Quarter (12/31/96) to 06/30/22

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 06/30/22

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.
Over the past 3 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 06/30/22

Sharpe RatioStandard Deviation
Small-Cap Opportunity0.5621.76
Russell 2000 Value0.5318.67
Category Median0.5618.37
Best Quartile Breakpoint0.6117.63

Category Median and Best Quartile Breakpoint based on 413 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 03/31/22

mstar-RYPNX

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 06/30/22

  RYPNX Russell 2000 Value
Average Market Cap
1.00B
1.71B
90%
-
2021 Portfolio Turnover
69%
-
Weighted Average P/E,
9.0x
9.5x
Weighted Average P/B,
1.5x
1.3x
Weighted Average P/S
0.8x
1.3x
U.S. Investments (% of Net Assets)
90.4%
-
Non-U.S. Investments (% of Net Assets)
5.9%
-

Portfolio Allocation

  • Total
    Holdings
    249

Top 200 holdings represented 94% of the Fund's equity investments as of 06/30/22.

SECTORS
RYPNX (%) RUSSELL
2000 VALUE (%)
Industrials
30.8
12.7
Information Technology
19.6
6.1
Consumer Discretionary
16.2
9.6
Materials
7.4
3.9
Energy
5.8
5.0
Health Care
5.0
11.0
Financials
4.3
28.4
Communication Services
3.3
3.3
Real Estate
2.0
11.9
Consumer Staples
2.0
2.9
Utilities
-
5.3
Cash and Cash Equivalents
3.7
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Digi International
0.9
Modine Manufacturing
0.8
Northwest Pipe
0.8
DZS
0.8
Cohu
0.8
Griffon Corporation
0.8
AAR Corporation
0.7
VSE Corporation
0.7
Stoneridge
0.7
Sierra Wireless
0.7
Advanced Energy Industries
0.7
B. Riley Financial
0.7
Wabash National
0.7
TTEC Holdings
0.7
Asbury Automotive Group
0.7
Spectrum Brands Holdings
0.7
ADTRAN
0.7
Veeco Instruments
0.7
Ducommun
0.7
Cross Country Healthcare
0.7
Top 20 as % of Net Assets
14.7

SECTORS
RYPNX (%) RUSSELL
2000 VALUE (%)
Industrials
31.3
-
Information Technology
19.9
-
Consumer Discretionary
16.0
-
Materials
7.4
-
Energy
6.0
-
Health Care
5.0
-
Financials
4.2
-
Communication Services
3.2
-
Real Estate
2.0
-
Consumer Staples
1.6
-
Cash and Cash Equivalents
3.3
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Modine Manufacturing
0.9
Digi International
0.8
Wabash National
0.8
ADTRAN
0.8
Babcock & Wilcox Enterprises
0.8
B. Riley Financial
0.8
DZS
0.8
Advanced Energy Industries
0.8
VSE Corporation
0.7
Stoneridge
0.7
Northwest Pipe
0.7
Veeco Instruments
0.7
AAR Corporation
0.7
Haynes International
0.7
Griffon Corporation
0.7
Ichor Holdings
0.7
WESCO International
0.7
Heritage-Crystal Clean
0.7
TTEC Holdings
0.7
Cohu
0.7
Top 20 as % of Net Assets
14.9

Portfolio Holdings

View the complete list of holdings for this fund as of 06/30/22. Unaudited schedule of portfolio holdings is presented for informational purposes only.

Least Portfolio Overlap - U.S. Equity Funds

Greatest Portfolio Overlap - U.S. Equity Funds

Geographical Breakdown

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 ($) REINVEST
PRICE ($)
12/15/21 12/16/21 12/16/21 0.0000 0.9595 2.8126 - 3.7721 15.94
12/11/19 12/12/19 12/12/19 0.0000 - 0.1964 - 0.1964 12.37
12/12/18 12/13/18 12/13/18 0.0000 0.2209 0.7919 - 1.0128 10.59
12/13/17 12/14/17 12/14/17 0.0000 0.1329 1.8917 - 2.0246 13.21
12/14/16 12/15/16 12/15/16 0.0000 - 0.8860 - 0.8860 12.99
12/16/15 12/17/15 12/17/15 0.0000 - 1.0617 - 1.0617 10.55
12/16/14 12/17/14 12/17/14 0.0000 0.1123 1.8262 - 1.9385 13.01
12/04/13 12/05/13 12/05/13 0.0000 0.0218 1.5136 - 1.5354 14.84
12/05/12 12/06/12 12/06/12 0.0000 0.1317 0.5382 - 0.6699 11.42
12/07/11 12/08/11 12/08/11 0.0000 - 0.1887 - 0.1887 9.96
12/08/09 12/09/09 12/09/09 0.0010 - - - 0.0010 8.56

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 0.00
Other expenses 0.21
Total annual Fund operating expenses 1.21

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.

11/19/1996 12:00:00 AM

Share:

Subscribe:

Sign Up

Follow: