Royce Smaller-Companies Growth Fund (RYVPX, RVPHX, RVPCX, RVPIX, RVPKX, RVPRX)
139

At a Glance

Why invest in Smaller-Companies Growth?

  • Small/mid-cap growth fund (generally market caps up to $7.5 billion) that invests in companies with superior revenue and/or earnings growth selling at prices that Royce believes do not fully reflect their prospects
  • Seeks companies that look poised for multi-year periods of robust growth driven by sustainable competitive advantages and/or benefiting from secular growth themes that create favorable conditions for the business
  • A GARP ("Growth At A Reasonable Price") approach that focuses on companies with recurring revenues and sustainable business models.

As of 06/30/20

  • Small-Cap
    Growth Approach
    $1.16B
    Avg. Market Cap
  • Average
    Volatility
    95%
    Active Share
  • Lead Manager
    Tenure
    17+
    Years on Fund

Portfolio Management

"We’re looking for recurring revenues and sustainable business models as opposed to very high-growth, shot-in-the-dark, one-time winners. We want companies that have established themselves as industry leaders in an emerging growth area with a distinct niche."
Chip Skinner

Manager Tenure

Manager Tenure

Performance

Average Annual Total Returns (%)

Outperformed Russell 2000 for the Quarter, Year To Date, 1-Year, 3-Year, 5-Year and since inception (06/14/01) periods as of 06/30/20.
QTR YTD 1YR 3YR 5YR 10YR 15YR SINCE INCEPT. DATE
Smaller-Companies Growth 33.59 1.623.545.464.848.866.799.91 06/14/01
Russell 2000 25.42 -12.98-6.632.014.2910.507.017.20 N/A

Annual Operating Expenses: Gross 2.51 Net 2.24

JUL YTD 1YR 3YR 5YR 10YR 15YR SINCE INCEPT. DATE
Smaller-Companies Growth 4.34 6.025.446.775.268.956.6110.11 06/14/01
Russell 2000 2.77 -10.57-4.592.695.1010.076.777.32 N/A

Annual Operating Expenses: Gross 2.51 Net 2.24

AUG YTD 1YR 3YR 5YR 10YR 15YR SINCE INCEPT. DATE
Smaller-Companies Growth 5.40 11.7517.269.207.069.407.0110.41 06/14/01
Russell 2000 6.03 -5.186.124.976.8910.727.377.64 N/A

Annual Operating Expenses: Gross 2.51 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. All expense information is reported as of the Fund's most current prospectus. 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, 2021.

All performance and risk information presented in this material prior to the commencement date of Consultant Class shares on 3/30/06 reflects Service Class results. Consultant Class shares bear annual expenses that are higher than those borne by Service Class shares. If Consultant Class's annual expenses had been reflected, total returns prior to 3/30/06 would have been lower.

Rolling Returns

For 78% 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% 26 24
> 5% and ≤ 10% 60 55
> 0% and ≤ 5% 24 22
≤ 0% 0 0

The Fund averaged a 7.8% return over all 109 10-year monthly rolling return periods.

Market Cycle Performance

The Fund outperformed the Russell 2000 from the 8/31/18 index peak through current (6/30/20).
Peak-Peak - 04/29/11 - 06/23/15
Smaller-Companies Growth40.6%
Russell 200058.5%

Peak-Peak - 06/23/15 - 08/31/18
Smaller-Companies Growth31.7%
Russell 200040.4%

Peak-Current - 08/31/18 - 06/30/20
Smaller-Companies Growth-6.4%
Russell 2000-14.9%

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 06/14/01 and 06/30/20

Smaller-Companies Growth$60,515.80
Russell 2000$37,592.08

Risk

Average Volatility vs. Peer Group as of 06/30/20

The Fund has a average volatility within its peer group of 498 Small-Cap Funds based on 5-year rolling standard deviation.

Down Market Performance Comparisonas of 06/30/20

Market Downturns (%)

DownMarketImg

Russell 2000 Down Quarters

QUARTER ENDRUSSELL 2000 (%)SMALLER-COMPANIES GROWTH (%)SPREAD (%)
03/31/20-30.6-23.9+6.7
09/30/19-2.4-6.4-4.0
12/31/18-20.2-23.0-2.8
03/31/18-0.1+0.2+0.3
03/31/16-1.5-4.5-3.0
09/30/15-11.9-11.3+0.6
09/30/14-7.4-6.8+0.6
06/30/12-3.5-8.1-4.6
09/30/11-21.9-22.6-0.7
06/30/11-1.6-2.8-1.2
06/30/10-9.9-8.1+1.8
03/31/09-15.0-6.5+8.5
12/31/08-26.1-29.1-3.0
09/30/08-1.1-10.1-9.0
03/31/08-9.9-9.90.0
12/31/07-4.6-6.9-2.3
09/30/07-3.1-2.0+1.1
06/30/06-5.0-6.1-1.1

Capture Ratios Fund's First Full Quarter (06/30/01) to 06/30/20

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 06/30/20

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

Go to Relative Risk Spectrum Tool

Morningstar Statistical Measures as of 06/30/20

The Fund beat the Russell 2000 and performed within the top 50% 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 and 50% of small-cap objective funds, as shown by its standard deviation.
The Fund beat the Russell 2000 and performed within the top 50% of small-cap objective funds on a risk-adjusted basis, as shown by its Sharpe ratio. In addition, the Fund produced lower volatility than 50% of small-cap objective funds, as shown by its standard deviation.
Sharpe RatioStandard Deviation
Smaller-Companies Growth0.5118.91
Russell 20000.6018.60
Category Median0.5718.63
Best Quartile Breakpoint0.6917.85

Category Median and Best Quartile Breakpoint based on 398 small-cap objective funds (oldest class only) with at least ten years of history.
Sharpe Ratio Standard Deviation
Smaller-Companies Growth
Russell 2000
Category Median
Best Quartile Breakpoint

Composition

Morningstar Style Map™as of 03/31/20

mstar-RVPCX

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 06/30/20

  RVPCX Russell 2000
Average Market Cap
1.16B
1.61B
95%
-
2019 Portfolio Turnover
53%
-
Weighted Average P/B,
3.8x
1.9x
3-5 Year EPS Growth (est.)
20.6%
9.6%
U.S. Investments (% of Net Assets)
83.6%
-
Non-U.S. Investments (% of Net Assets)
11.3%
-

Portfolio Allocation

  • Total
    Holdings
    109


SECTORS
RVPCX (%) RUSSELL
2000 (%)
Information Technology
34.7
13.9
Health Care
29.6
20.6
Industrials
8.9
14.5
Consumer Discretionary
8.0
11.8
Financials
6.3
16.3
Communication Services
3.5
2.5
Real Estate
2.2
7.1
Consumer Staples
1.3
3.3
Energy
0.4
2.3
Materials
-
4.0
Utilities
-
3.6
Cash and Cash Equivalents
5.1
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Unisys Corporation
4.0
Iteris
3.5
CryoPort
2.9
Lawson Products
2.2
USA Technologies
2.1
MagnaChip Semiconductor
1.8
LivePerson
1.8
Lumentum Holdings
1.5
STAAR Surgical
1.4
Sea Cl. A ADR
1.3
Coupa Software
1.3
Pennant Group
1.3
Lovesac Company (The)
1.3
Cerence
1.3
Avalara
1.2
Silicon Laboratories
1.2
GAN
1.2
Advanced Energy Industries
1.2
Postal Realty Trust Cl. A
1.2
Descartes Systems Group (The)
1.1
Top 20 as % of Net Assets
34.8

SECTORS
RVPCX (%) RUSSELL
2000 (%)
Information Technology
34.0
-
Health Care
33.6
-
Industrials
8.9
-
Consumer Discretionary
7.4
-
Financials
5.5
-
Communication Services
3.6
-
Real Estate
2.2
-
Consumer Staples
1.5
-
Energy
0.2
-
Cash and Cash Equivalents
3.1
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Unisys Corporation
4.2
CryoPort
3.0
Iteris
3.0
Lawson Products
1.9
MagnaChip Semiconductor
1.9
LivePerson
1.8
Lumentum Holdings
1.6
Sea Cl. A ADR
1.5
USA Technologies
1.4
Coupa Software
1.4
Pennant Group
1.4
STAAR Surgical
1.3
Itamar Medical ADR
1.3
Advanced Energy Industries
1.2
Avalara
1.2
PetIQ Cl. A
1.2
Silicon Laboratories
1.2
Bandwidth Cl. A
1.2
Cerence
1.2
Descartes Systems Group (The)
1.2
Top 20 as % of Net Assets
34.1

Portfolio Holdings

View the complete list of holdings for this fund as of 06/30/20. 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 ($) REINVEST
PRICE ($)
12/11/19 12/12/19 12/12/19 0.0000 - 0.2360 - 0.2360 6.66
12/12/18 12/13/18 12/13/18 0.0000 0.3171 2.3386 - 2.6557 6.04
12/13/17 12/14/17 12/14/17 0.0000 0.0527 1.8863 - 1.9390 9.09
12/14/16 12/15/16 12/15/16 0.0000 0.0046 1.2506 - 1.2552 9.76
12/16/15 12/17/15 12/17/15 0.0000 0.3185 2.4330 - 2.7515 9.95
12/16/14 12/17/14 12/17/14 0.0000 0.2879 2.9932 - 3.2811 12.82
12/04/13 12/05/13 12/05/13 0.0000 - 1.3450 - 1.3450 15.41

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 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 0.51
Total annual Fund operating expenses 2.51
Fee waivers and/or expense reimbursements (0.27)
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, 2021.

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 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.) The Fund’s broadly diversified portfolio does not ensure a profit or guarantee against loss. 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 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 Chip Skinner since 2007 (co-manager 2003-2007)

3/30/2006 12:00:00 AM

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