Morningstar Includes This Royce Fund in its List of "Small-Value Funds Worth a Look"
article 11-03-2017

Morningstar Includes Royce Special Equity Fund in its List of "Small-Value Funds Worth a Look"

Morningstar highlights Royce Special Equity Fund's unique focus and long-term record.


Morningstar features Royce Special Equity Fund in its list of Small-Value Funds Worth a Look. The article by Dan Culloton looks at the portfolio strategies and "best ideas among value-oriented small-cap equity funds."

Culloton writes that the “unique focus” of Royce Special Equity Fund "on firms with cautious accounting practices and low valuations should help it make up ground when the stock market tumbles." The Fund looks for companies with superior balance sheets, sustainable returns on invested capital, and strong levels of free cash flow from operations.

In addition, the article highlights Portfolio Manager Charlie Dreifus's "excellent long-term record" and describes Assistant Portfolio Manager Steven McBoyle as a "capable successor."

Charlie Dreifus, who has 49 years of investment experience, manages Royce Special Equity Fund and Royce Special Equity Multi-Cap Fund. Steven McBoyle, who has 27 years of investment experience, serves as assistant portfolio manager for Special Equity and Special Equity Multi-Cap. Steven is a portfolio manager on Royce Premier Fund and Royce Small/Mid-Cap Premier Fund.

Read the Morningstar article here.

Important Disclosure Information

Average Annual Total Returns as of 9/30/17 (%)

Special Equity 3.51 3.13 19.10 9.08 9.99 8.24 9.79 9.33 05/01/98
Russell 2000 5.67 10.94 20.74 12.18 13.79 7.85 11.37 7.37 N/A
Annual Operating Expenses: 1.17%

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 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.

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. Smaller-cap stocks may involve considerably more risk than larger-cap stocks. (Please see "Primary Risks for Fund Investors" in the prospectus.)

Royce Special Equity 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.) As of 09/30/17 the Fund invested a significant portion of its assets in a limited number of stocks, which may involve considerably more risk than more broadly diversified 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. (Please see "Primary Risks for Fund Investors" in the prospectus.)



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