Royce Special Equity Fund in Morningstar—Royce
article 02-04-2019

Royce Special Equity Fund in Morningstar

Royce Special Equity Fund, managed by Charlie Dreifus, was mentioned by Morningstar as an attractive small-cap value fund.


Morningstar recently featured Royce Special Equity Fund in an article titled “13 Funds for 2019 and Beyond” by Russel Kinnel.

Read the piece here.

In the article, Russel makes the case for why small-cap value and foreign value are currently performing well in the market and added that small-cap value is a cheaper buy among stocks. He went on to list “three ideas for playing the long-delayed rebound in small value,” and among them was Royce Special Equity Fund.

“Royce Special Equity (RYSEX) has long been one of my favorites for manager Charlie Dreifus’ savvy understanding of accounting and ability to find good companies with defensive characteristics,” Russel said. “Generally this fund has held up nicely in bear markets.”

Read the piece here.

Bio of Charlie Dreifus:

Charlie Dreifus manages the firm’s Special Equity mutual fund that attempt to combine classic value analysis, the identification of good businesses, and accounting cynicism. In 2008, he was named Morningstar's Domestic-Stock Fund Manager of the Year. Mr. Dreifus has been at Royce for 20 years and has 50 years of experience in the industry, having worked at Limited Managing Director of Lazard Freres & Co., LLC as the Portfolio Manager, General Partner, and Managing Director. He also formerly worked at Oppenheimer & Co. as a Limited Partner and as the Portfolio Manager, and at Oppenheimer Capital as an Executive Vice President. Mr. Dreifus holds a bachelor's degree from the City College of New York/Baruch School and a Masters of Business Administration from Baruch College. He is a CFA® charterholder.




Important Disclosure Information

Average Annual Total Returns as of 12/31/18 (%) 

Special Equity -9.78 -9.86 8.73 2.64 10.08 7/18 9.11 8.43 05/01/98
Russell 2000 -20.20 -11.01 7.36 4.41 11.97 7.50 7.40 8.42 N/A
Russell 2000 Value -18.67 -12.86 7.37 3.61 10.40 6.91 8.23 7.14 N/A

Annual Operating Expenses: 1.17% 

1 Not annualized.

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.

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. The Russell 2000 Index 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 Russell 2000 Value and Growth indexes consist of the respective value and growth stocks within the Russell 2000 as determined by Russell Investments. The performance of an index does not represent exactly any particular investment, as you cannot invest directly in an index.

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 micro-cap stocks, which may involve considerably more risk than investing in larger-cap stocks. As of 12/31/18, 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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