Royce Total Return Fund (RYTRX, RYTFX, RYTCX, RTRIX, RTRRX)
15

At a Glance

Why invest in Total Return?

  • Small-cap value fund that invests primarily in dividend-paying stocks with solid fundamentals. Small-cap stocks' market caps are less than the largest stock in the Russell 2000® Index.
  • Focuses on quality businesses with the ability to generate excess cash flow and attractive prospects that are selling at prices Royce believes do not fully reflect these attributes
  • Has a long-term history of low volatility

As of 09/30/21

  • Small-Cap
    Value Approach
    $3.14B
    Avg. Market Cap
  • Low
    Volatility
    96%
    Active Share
  • Fund
    Longevity
    27+
    Years of History

Portfolio Management

Assistant Portfolio Manager: George Necakov, CFA®

"We seek to buy high-quality, dividend-paying businesses trading at a discount to our estimate of their intrinsic value. Our rigorous and repeatable process marries the risk aversion of a credit investor with the growth orientation of a long-term business owner."
Miles Lewis

Performance

Average Annual Total Returns (%)

Outperformed Russell 2000 Value for the Quarter, 15-Year and since inception (12/15/93) periods as of 09/30/21. Outpaced Russell 2000 for the Quarter, Year To Date and since inception (12/15/93) periods as of 09/30/21.
QTR YTD 1YR 3YR 5YR 10YR 15YR 20YR SINCE INCEPT. DATE
Total Return -1.75 17.7047.428.5010.4411.737.899.6010.59 12/15/93
Russell 2000 Value -2.98 22.9263.928.5811.0313.227.509.7910.13 N/A
Russell 2000 -4.36 12.4147.6810.5413.4514.639.1610.299.61 N/A

Annual Operating Expenses: 1.25

SEP YTD 1YR 3YR 5YR 10YR 15YR 20YR SINCE INCEPT. DATE
Total Return -2.37 17.7047.428.5010.4411.737.899.6010.59 12/15/93
Russell 2000 Value -2.00 22.9263.928.5811.0313.227.509.7910.13 N/A
Russell 2000 -2.95 12.4147.6810.5413.4514.639.1610.299.61 N/A

Annual Operating Expenses: 1.25

OCT YTD 1YR 3YR 5YR 10YR 15YR 20YR SINCE INCEPT. DATE
Total Return 5.05 23.6445.2913.0712.0311.578.039.7110.76 12/15/93
Russell 2000 Value 4.58 28.5558.1112.9712.3712.857.509.9010.28 N/A
Russell 2000 3.90 16.8042.9515.5714.9014.179.0810.239.74 N/A

Annual Operating Expenses: 1.25

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, other expenses, and acquired fund fees and expenses. 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, hedge funds, private equity funds, and other investment companies.

Rolling Returns

For 99% 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% 74 35
> 5% and ≤ 10% 137 64
> 0% and ≤ 5% 3 1
≤ 0% 0 0

The Fund averaged a 9.6% return over all 214 10-year monthly rolling return periods.

Market Cycle Performance

The Fund outperformed the Russell 2000 Value from the 8/22/18 index peak through current (9/30/21) and in one of the two previous full market cycle periods.
Peak-Peak - 06/04/07 - 06/23/15
Total Return55.7%
Russell 2000 Value45.9%

Peak-Peak - 06/23/15 - 08/22/18
Total Return34.7%
Russell 2000 Value39.0%

Peak-Current - 08/22/18 - 09/30/21
Total Return25.2%
Russell 2000 Value24.7%

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 12/15/93 and 09/30/21

Total Return$163,889.61
Russell 2000 Value$146,002.14

Risk

Low Volatility vs. Peer Group as of 09/30/21

The Fund has a low volatility within its peer group of 489 Small-Cap Funds based on 5-year rolling standard deviation.

Down Market Performance Comparisonas of 09/30/21

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

Market Downturns (%)

DownMarketImg
Outperformed in 18 out of 19 down quarters.

Russell 2000 Value Down Quarters

QUARTER ENDRUSSELL 2000 VALUE (%)TOTAL RETURN (%)SPREAD (%)
09/30/21-3.0-1.8+1.2
03/31/20-35.7-30.3+5.4
09/30/19-0.6+0.2+0.8
12/31/18-18.7-15.3+3.4
03/31/18-2.6-2.3+0.3
03/31/17-0.1+2.2+2.3
09/30/15-10.7-9.6+1.1
06/30/15-1.2-1.0+0.2
09/30/14-8.6-6.5+2.1
06/30/12-3.0-4.3-1.3
09/30/11-21.5-17.0+4.5
06/30/11-2.6-0.9+1.7
06/30/10-10.6-7.7+2.9
03/31/09-19.6-12.0+7.6
12/31/08-24.9-23.2+1.7
06/30/08-3.5-0.3+3.2
03/31/08-6.5-5.6+0.9
12/31/07-7.3-3.5+3.8
09/30/07-6.3-2.5+3.8

Capture Ratios Fund's First Full Quarter (12/31/93) to 09/30/21

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 09/30/21

Over the past 10 years, the Fund produced lower volatility than the Russell 2000 Value Index.
Over the past 5 years, the Fund produced lower volatility than the Russell 2000 Value Index.
Over the past 3 years, the Fund produced lower volatility than the Russell 2000 Value Index.
From the Fund's inception, the Fund outperformed the Russell 2000 Value Index with lower volatility.

Go to Relative Risk Spectrum Tool

Morningstar Statistical Measures as of 09/30/21

The Fund beat the Russell 2000 Value on a risk-adjusted basis, as shown by its Sharpe ratio. In addition, the Fund produced lower volatility than the Russell 2000 Value and 50% of small-cap objective funds, as shown by its standard deviation.
The Fund beat the Russell 2000 Value on a risk-adjusted basis, as shown by its Sharpe ratio. In addition, the Fund produced lower volatility than the Russell 2000 Value and 50% of small-cap objective funds, as shown by its standard deviation.
The Fund beat the Russell 2000 Value on a risk-adjusted basis, as shown by its Sharpe ratio. In addition, the Fund produced lower volatility than the Russell 2000 Value and 90% of small-cap objective funds, as shown by its standard deviation.
Sharpe RatioStandard Deviation
Total Return0.7416.03
Russell 2000 Value0.7318.69
Category Median0.8018.29
Best Decile Breakpoint0.9716.59

Category Median and Best Decile Breakpoint based on 404 small-cap objective funds (oldest class only) with at least ten years of history.
Sharpe Ratio Standard Deviation
Total Return
Russell 2000 Value
Category Median
Best Quartile Breakpoint

Composition

Morningstar Style Map™as of 06/30/21

mstar-RYTRX

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 09/30/21

  RYTRX Russell 2000 Value
Average Market Cap
3.14B
2.15B
96%
-
2020 Portfolio Turnover
61%
-
Weighted Average P/E,
15.2x
13.0x
Weighted Average P/B,
2.0x
1.6x
U.S. Investments (% of Net Assets)
86.9%
-
Non-U.S. Investments (% of Net Assets)
12.5%
-

Portfolio Allocation

  • Total
    Holdings
    101


SECTORS
RYTRX (%) RUSSELL
2000 VALUE (%)
Financials
40.4
26.2
Industrials
21.2
14.8
Materials
8.9
4.6
Information Technology
8.9
5.4
Consumer Discretionary
7.3
8.0
Consumer Staples
3.6
2.8
Energy
3.0
7.1
Real Estate
2.6
11.1
Communication Services
1.9
4.3
Health Care
0.8
11.2
Utilities
-
4.6
Bonds & Preferreds
0.8
-
Cash and Cash Equivalents
0.6
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Vontier Corporation
2.3
Spectrum Brands Holdings
2.2
James River Group Holdings
2.0
Independent Bank Group
1.8
Trean Insurance Group
1.8
Axis Capital Holdings
1.7
Compass Diversified Holdings
1.7
Element Solutions
1.7
Bank of N.T. Butterfield & Son
1.7
Timken Company (The)
1.7
Triumph Bancorp
1.6
Graphic Packaging Holding Company
1.6
Home BancShares
1.6
Crane Company
1.6
Kennedy-Wilson Holdings
1.6
MSC Industrial Direct Cl. A
1.6
Minerals Technologies
1.5
UFP Industries
1.5
CDK Global
1.5
nVent Electric
1.5
Top 20 as % of Net Assets
34.2

SECTORS
RYTRX (%) RUSSELL
2000 VALUE (%)
Financials
40.4
26.2
Industrials
21.2
14.8
Materials
8.9
4.6
Information Technology
8.9
5.4
Consumer Discretionary
7.3
8.0
Consumer Staples
3.6
2.8
Energy
3.0
7.1
Real Estate
2.6
11.1
Communication Services
1.9
4.3
Health Care
0.8
11.2
Utilities
-
4.6
Bonds & Preferreds
0.8
-
Cash and Cash Equivalents
0.6
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Vontier Corporation
2.3
Spectrum Brands Holdings
2.2
James River Group Holdings
2.0
Independent Bank Group
1.8
Trean Insurance Group
1.8
Axis Capital Holdings
1.7
Compass Diversified Holdings
1.7
Element Solutions
1.7
Bank of N.T. Butterfield & Son
1.7
Timken Company (The)
1.7
Triumph Bancorp
1.6
Graphic Packaging Holding Company
1.6
Home BancShares
1.6
Crane Company
1.6
Kennedy-Wilson Holdings
1.6
MSC Industrial Direct Cl. A
1.6
Minerals Technologies
1.5
UFP Industries
1.5
CDK Global
1.5
nVent Electric
1.5
Top 20 as % of Net Assets
34.2

Portfolio Holdings

View the complete list of holdings for this fund as of 09/30/21. 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 ($) REINVEST
PRICE ($)
09/14/21 09/15/21 09/15/21 0.0350 - - - 0.0350 10.91
06/15/21 06/16/21 06/16/21 0.0200 - - - 0.0200 11.40
03/16/21 03/17/21 03/17/21 0.0400 - - - 0.0400 11.20
12/09/20 12/10/20 12/10/20 0.1020 - 1.7460 - 1.8480 9.17
09/02/20 09/03/20 09/03/20 0.0250 - - - 0.0250 9.44
06/03/20 06/04/20 06/04/20 0.0400 - - - 0.0400 9.28
03/04/20 03/05/20 03/05/20 0.0400 - - - 0.0400 9.54
12/11/19 12/12/19 12/12/19 0.0463 - 0.8864 - 0.9327 10.89
09/04/19 09/05/19 09/05/19 0.0350 - - - 0.0350 10.87
06/05/19 06/06/19 06/06/19 0.0450 - - - 0.0450 10.72
03/06/19 03/07/19 03/07/19 0.0300 - - - 0.0300 10.84
12/12/18 12/13/18 12/13/18 0.0572 0.0411 2.0577 - 2.1560 10.13
09/05/18 09/06/18 09/06/18 0.0500 - - - 0.0500 14.06
06/06/18 06/07/18 06/07/18 0.0450 - - - 0.0450 13.88
03/07/18 03/08/18 03/08/18 0.0350 - - - 0.0350 13.46
12/13/17 12/14/17 12/14/17 0.0251 0.0145 1.7732 - 1.8128 13.22
09/06/17 09/07/17 09/07/17 0.0250 - - - 0.0250 13.78
06/07/17 06/08/17 06/08/17 0.0350 - - - 0.0350 13.90
03/01/17 03/02/17 03/02/17 0.0350 - - - 0.0350 14.04
12/14/16 12/15/16 12/15/16 0.1273 - 1.0906 - 1.2179 13.83
09/07/16 09/08/16 09/08/16 0.0250 - - - 0.0250 13.67
06/01/16 06/02/16 06/02/16 0.0400 - - - 0.0400 12.89
03/02/16 03/03/16 03/03/16 0.0250 - - - 0.0250 11.92
12/16/15 12/17/15 12/17/15 0.0000 - 1.6504 - 1.6504 11.86
09/02/15 09/03/15 09/03/15 0.0300 - - - 0.0300 13.68
06/03/15 06/04/15 06/04/15 0.0400 - - - 0.0400 14.93
03/04/15 03/05/15 03/05/15 0.0500 - - - 0.0500 14.77
12/16/14 12/17/14 12/17/14 0.1983 0.0456 1.5698 - 1.8137 14.37
09/03/14 09/04/14 09/04/14 0.0300 - - - 0.0300 16.62
06/04/14 06/05/14 06/05/14 0.0300 - - - 0.0300 16.51
03/05/14 03/06/14 03/06/14 0.0300 - - - 0.0300 16.54
12/04/13 12/05/13 12/05/13 0.0418 0.1382 1.2786 - 1.4586 15.93
09/04/13 09/05/13 09/05/13 0.0300 - - - 0.0300 15.84
06/05/13 06/06/13 06/06/13 0.0400 - - - 0.0400 15.41
03/06/13 03/07/13 03/07/13 0.0300 - - - 0.0300 14.80
12/27/12 12/28/12 12/28/12 0.0217 - - - 0.0217 13.40
12/05/12 12/06/12 12/06/12 0.1000 0.0273 0.5909 - 0.7182 13.39
09/05/12 09/06/12 09/06/12 0.0350 - - - 0.0350 13.85
06/06/12 06/07/12 06/07/12 0.0450 - - - 0.0450 12.78
03/07/12 03/08/12 03/08/12 0.0350 - - - 0.0350 13.53
12/07/11 12/08/11 12/08/11 0.0236 - 0.1465 - 0.1701 12.42
09/07/11 09/08/11 09/08/11 0.0350 - - - 0.0350 12.12
06/08/11 06/09/11 06/09/11 0.0350 - - - 0.0350 13.39
03/09/11 03/10/11 03/10/11 0.0250 - - - 0.0250 13.40
12/08/10 12/09/10 12/09/10 0.0346 - - - 0.0346 12.98
09/08/10 09/09/10 09/09/10 0.0350 - - - 0.0350 11.24
06/09/10 06/10/10 06/10/10 0.0500 - - - 0.0500 11.04
03/10/10 03/11/10 03/11/10 0.0350 - - - 0.0350 11.46
12/08/09 12/09/09 12/09/09 0.0313 - - - 0.0313 10.45
09/08/09 09/09/09 09/09/09 0.0300 - - - 0.0300 10.09
06/09/09 06/10/09 06/10/09 0.0350 - - - 0.0350 9.22
03/10/09 03/11/09 03/11/09 0.0400 - - - 0.0400 6.67

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 0.24
Acquired fund fees and expenses 0.01
Total annual Fund operating expenses 1.25
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, hedge funds, private equity 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 small-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 (measured at the time of investment) in securities of companies headquartered in foreign countries, which may involve political, economic, currency, and other risks not encountered in U.S. investments. (Please see "Investing 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.

Miles Lewis lead manager since 2021 (manager 2020-2021), Chuck Royce since 2021 (lead portfolio manager 2013-2021, co-manager 2011-2013, and manager 1993-2011), assistant George Necakov since 2005

12/15/1993 12:00:00 AM

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