article 08-04-2014

David Nadel on Three International Small-Cap Names on The Street

Director of International Research and Portfolio Manager David Nadel details three international small-cap names he currently likes in his interview with Gregg Greenberg.


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"Royce International Smaller-Companies Fund invests with a three- to five-year horizon in companies that generate high returns on invested capital and have strong balance sheets," said Director of International Research and Portfolio Manager David Nadel in his July 28, 2014 interview with Gregg Greenberg of The Street.

David also detailed why he liked three non-U.S. stocks, including Indian travel agency Thomas Cook India, emerging markets asset manager Ashmore Group, and Japanese convenience store chain FamilyMart

"FamilyMart is sort of a prime example of the way that we invest," said David. "It's a business with a lot of pricing power and it's a business that is a play on Pan-Asian growth," he added.

David Nadel has 22 years of investment industry experience, eight of which at Royce. He is portfolio manager of Royce International Smaller-Companies Fund, Royce European Smaller-Companies Fund (with Mark Rayner), and Royce International Premier Fund.

Important Disclosure Information

David Nadel is Director of International Research and a Portfolio Manager of Royce & Associates, LLC, investment adviser to The Royce Funds. He serves as Portfolio Manager for Royce International Smaller-Companies Fund (RIS), Royce European Smaller-Companies Fund (RES), and Royce International Premier Fund (RIP). He also serves as Assistant Portfolio Manager for Royce Global Value Fund (RGV), Royce Value Trust (RVT), Royce Global Dividend Value Fund (RGD), Royce International Micro-Cap Fund (RMI), and Royce Global Value Trust (RGT). The thoughts expressed in the video are solely those of the person speaking and may differ from those of other Royce investment professionals, or the firm as a whole. There can be no assurance with regard to future market movements. There can be no assurance that companies that currently pay a dividend will continue to do so in the future.

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. Royce International Smaller-Companies Fund may invest a significant portion of its assets in foreign companies, which may be subject to different risks than investments in securities of U.S. companies, including adverse political, social, economic, or other developments that are unique to a particular country or region. (Please see "Investing in Foreign Securities" in the prospectus.) Therefore, the prices of the securities of foreign companies in particular countries or regions may, at times, move in a different direction than those of the securities of U.S. companies. (Please see "Primary Risks for Fund Investors" in the prospectus.) In addition, as of 6/30/14 the Fund held a limited number of stocks, which may involve considerably more risk than a less concentrated portfolio because a decline in the value of any one of these stocks would cause the Fund's overall value to decline to a greater degree. The Fund invests primarily in small-cap and/or 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.)

Percentage of Fund Holdings as of 6/30/14 (%)

FamilyMart 1.14 0.00 1.65 0.92 0.11 0.00 0.00 0.98
Thomas Cook (India) 0.80 0.00 0.00 0.00 0.03 0.00 0.00 0.00
Ashmore Group 1.49 2.51 2.63 3.01 0.33 1.11 0.00 1.36

There can be no assurance that any of these securities mentioned in this interview will be included in these portfolios in the future. References to specific securities in this piece are not intended as recommendations and should not be relied upon as the basis for anyone to buy, sell, or hold any security.



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