Royce Small-Cap Value Fund (RYVFX, RVVHX, RVFCX, RVFIX, RVFKX, RVVRX)
188

At a Glance

Why invest in Small-Cap Value?

  • Small-cap value fund that focuses on companies with above-average profitability and low leverage that are selling at attractive valuations due to what Royce believes are temporary factors. Small-cap stocks' market caps are less than the largest stock in the Russell 2000® Index.
  • Takes a contrarian value approach, looking for stocks with solid fundamentals in industries where pessimism runs high.
  • Average annual total return of 9.0% since inception (6/14/01) through 9/30/24.

As of 09/30/24

  • Small-Cap
    Value Approach
    $1.88B
    Avg. Market Cap
  • Above Average
    Volatility
    94%
    Active Share
  • Portfolio Manager
    Tenure
    21+
    Years on Fund

Portfolio Management

"My goal is to find companies where expectations built into the current valuation are too low relative to what I believe is far more likely to happen."
Jay Kaplan

Performance

Average Annual Total Returns (%)

Outperformed Russell 2000 Value for the 3-Year, 20-Year and since inception (06/14/01) periods as of 09/30/24. Outpaced Russell 2000 for the 3-Year and since inception (06/14/01) periods as of 09/30/24.
QTR YTD 1YR 3YR 5YR 10YR 15YR 20YR SINCE INCEPT.
(06/14/01)
Small-Cap Value 8.69 5.5322.449.219.126.417.837.899.02
Russell 2000 Value 10.15 9.2225.883.779.298.229.807.748.35
Russell 2000 9.27 11.1726.761.849.398.7810.598.498.11

Annual Operating Expenses: Gross 1.35 Net 1.24

SEP YTD 1YR 3YR 5YR 10YR 15YR 20YR SINCE INCEPT.
(06/14/01)
Small-Cap Value 0.00 5.5322.449.219.126.417.837.899.02
Russell 2000 Value 0.06 9.2225.883.779.298.229.807.748.35
Russell 2000 0.70 11.1726.761.849.398.7810.598.498.11

Annual Operating Expenses: Gross 1.35 Net 1.24

OCT YTD 1YR 3YR 5YR 10YR 15YR 20YR SINCE INCEPT.
(06/14/01)
Small-Cap Value -1.75 3.6920.937.469.656.547.557.808.92
Russell 2000 Value -1.83 7.2225.832.319.568.289.527.618.26
Russell 2000 -1.30 9.7227.160.969.748.9810.368.398.04

Annual Operating Expenses: Gross 1.35 Net 1.24

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. 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 total gross annual operating expenses and include management 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 Investment 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 1.24% through April 30, 2025.

All performance and risk information presented in this material prior to the date of commencement of Investment Class shares on 3/15/07 reflects Service Class results. Shares of the Fund's Service Class bear an annual distribution expense that is not borne by the Investment Class.

Rolling Returns

For 83% 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% 43 27
> 5% and ≤ 10% 90 56
> 0% and ≤ 5% 27 17
≤ 0% 0 0

The Fund averaged a 7.6% return over all 160 10-year monthly rolling return periods.

Market Cycle Performance

The Fund outperformed the Russell 2000 Value from the 11/8/21 index peak through current (9/30/24).
Peak-Peak - 06/23/15 - 08/22/18
Small-Cap Value23.5%
Russell 2000 Value39.0%

Peak-Peak - 08/22/18 - 11/08/21
Small-Cap Value18.1%
Russell 2000 Value37.6%

Peak-Current - 11/08/21 - 09/30/24
Small-Cap Value18.9%
Russell 2000 Value1.2%

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 06/14/01 and 09/30/24

Small-Cap Value$74,720.98
Russell 2000 Value$64,796.21

Risk

Above Average Volatility vs. Peer Group as of 09/30/24

The Fund has a above average volatility within its peer group of 512 Small-Cap Funds based on 5-year rolling standard deviation.

Down Market Performance Comparisonas of 09/30/24

The Fund outperformed the Russell 2000 Value during four out of six downturns of 15% or more from the index’s prior historical high since the Fund’s inception.

Market Downturns (%)

DownMarketImg

Russell 2000 Value Down Quarters

QUARTER ENDRUSSELL 2000 VALUE (%)SMALL-CAP VALUE (%)SPREAD (%)
06/30/24-3.6-6.3-2.7
09/30/23-3.0+0.3+3.3
03/31/23-0.7+3.2+3.9
09/30/22-4.6-1.2+3.4
06/30/22-15.3-11.0+4.3
03/31/22-2.4-9.2-6.8
09/30/21-3.0-3.7-0.7
03/31/20-35.7-39.5-3.8
09/30/19-0.6+1.9+2.5
12/31/18-18.7-14.1+4.6
03/31/18-2.6-0.4+2.2
03/31/17-0.1-1.5-1.4
09/30/15-10.7-10.9-0.2
06/30/15-1.2-2.1-0.9
09/30/14-8.6-5.5+3.1
06/30/12-3.0-11.1-8.1
09/30/11-21.5-21.9-0.4
06/30/11-2.6-3.4-0.8
06/30/10-10.6-8.1+2.5

Capture Ratios Fund's First Full Quarter (06/30/01) to 09/30/24

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 09/30/24

Over the past 5 years, the Fund produced lower volatility than the Russell 2000 Value Index.
Over the past 3 years, the Fund outperformed the Russell 2000 Value Index with lower volatility.
From the Fund's inception, the Fund outperformed the Russell 2000 Value Index.

Go to Relative Risk Spectrum Tool

Morningstar Statistical Measures as of 09/30/24

The Fund beat the Russell 2000 Value and performed within the top 25% of small-cap objective funds on a risk-adjusted basis, as shown by its Sharpe ratio. In addition, the Fund produced lower volatility than the Russell 2000 Value, as shown by its standard deviation.
The Fund produced lower volatility than the Russell 2000 Value, as shown by its standard deviation.
Sharpe RatioStandard Deviation
Small-Cap Value0.3221.11
Russell 2000 Value0.4020.95
Category Median0.4420.12
Best Quartile Breakpoint0.4919.29

Category Median and Best Quartile Breakpoint based on 432 small-cap objective funds (oldest class only) with at least ten years of history.
Sharpe Ratio Standard Deviation
Small-Cap Value
Russell 2000 Value
Category Median
Best Quartile Breakpoint

Composition

Morningstar Style Map™as of 06/30/24

mstar-RVVHX

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 09/30/24

  RVVHX Russell 2000 Value
Average Market Cap
1.88B
2.13B
94%
-
2023 Portfolio Turnover
48%
-
Weighted Average P/E,
12.3x
13.9x
Weighted Average P/B,
1.6x
1.4x
U.S. Investments (% of Net Assets)
99.5%
-
Non-U.S. Investments (% of Net Assets)
0.0%
-

Portfolio Allocation

  • Total
    Holdings
    86


SECTORS
RVVHX (%) RUSSELL
2000 VALUE (%)
Consumer Discretionary
23.2
-
Financials
21.2
-
Industrials
19.1
-
Information Technology
15.0
-
Energy
9.3
-
Health Care
6.3
-
Consumer Staples
2.5
-
Communication Services
1.8
-
Real Estate
1.2
-
Utilities
-
-
Materials
-
-
Cash and Cash Equivalents
0.5
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Tri Pointe Homes
1.9
M/I Homes
1.9
PulteGroup
1.9
ePlus
1.9
Sanmina Corporation
1.9
Caleres
1.8
Meritage Homes
1.8
Village Super Market Cl. A
1.8
Catalyst Pharmaceuticals
1.8
Flex
1.8
Shoe Carnival
1.8
Dime Community Bancshares
1.7
Tiptree
1.7
Univest Financial
1.7
Unity Bancorp
1.7
Kontoor Brands
1.6
Evercore Cl. A
1.6
Allison Transmission Holdings
1.5
Barrett Business Services
1.5
Buckle (The)
1.5
Top 20 as % of Net Assets
34.8

SECTORS
RVVHX (%) RUSSELL
2000 VALUE (%)
Consumer Discretionary
23.2
-
Financials
21.2
-
Industrials
19.1
-
Information Technology
15.0
-
Energy
9.3
-
Health Care
6.3
-
Consumer Staples
2.5
-
Communication Services
1.8
-
Real Estate
1.2
-
Utilities
-
-
Materials
-
-
Cash and Cash Equivalents
0.5
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Tri Pointe Homes
1.9
M/I Homes
1.9
PulteGroup
1.9
ePlus
1.9
Sanmina Corporation
1.9
Caleres
1.8
Meritage Homes
1.8
Village Super Market Cl. A
1.8
Catalyst Pharmaceuticals
1.8
Flex
1.8
Shoe Carnival
1.8
Dime Community Bancshares
1.7
Tiptree
1.7
Univest Financial
1.7
Unity Bancorp
1.7
Kontoor Brands
1.6
Evercore Cl. A
1.6
Allison Transmission Holdings
1.5
Barrett Business Services
1.5
Buckle (The)
1.5
Top 20 as % of Net Assets
34.8

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: 06/30/24.

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 ($) REINVEST
PRICE ($)
12/13/23 12/14/23 12/14/23 0.1216 0.1068 0.6401 - 0.8685 10.10
12/14/22 12/15/22 12/15/22 0.0493 - 0.5070 - 0.5563 8.94
12/15/21 12/16/21 12/16/21 0.0070 - 0.6011 - 0.6081 10.03
12/09/20 12/10/20 12/10/20 0.1697 - 0.1861 - 0.3558 8.46
12/11/19 12/12/19 12/12/19 0.0808 0.0572 0.1925 - 0.3305 9.49
12/12/18 12/13/18 12/13/18 0.0416 0.1462 0.9387 - 1.1265 8.60
12/13/17 12/14/17 12/14/17 0.0597 - 0.3512 - 0.4109 9.92
12/14/16 12/15/16 12/15/16 0.0815 - 0.5011 - 0.5826 10.12
12/16/15 12/17/15 12/17/15 0.0899 0.0600 1.5940 - 1.7439 8.75
12/16/14 12/17/14 12/17/14 0.0302 0.4014 1.2648 - 1.6964 11.47
12/04/13 12/05/13 12/05/13 0.0312 0.5294 0.4425 - 1.0031 13.04
12/05/12 12/06/12 12/06/12 0.1436 0.0070 0.5186 - 0.6692 11.12
12/07/11 12/08/11 12/08/11 0.0692 - 0.7472 - 0.8164 10.93
12/08/10 12/09/10 12/09/10 0.0413 - - - 0.0413 12.40

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 0.35
Total annual Fund operating expenses 1.35
Fee waivers and/or expense reimbursements (0.11)
Total annual Fund operating expenses after fee waivers and/or expense reimbursements1.24
Royce has contractually agreed, without right of termination, to waive fees and/or reimburse expenses to the extent necessary to maintain the Investment 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 1.24% through April 30, 2025.

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 stocks, which may involve considerably more risk than investing in larger-cap stocks. In addition, as of 09/30/24 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.(Please see "Primary Risks for Fund Investors" in the prospectus.) The Fund may invest up to 25% of its net assets in foreign securities (measured at the time of investment), 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 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.

Managed by Jay Kaplan since 2013 (co-manager 2003-2013)

3/15/2007 12:00:00 AM

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