Updates To RYTRX & RDVIX—Royce
article 05-18-2020

Royce Investment Partners Hires Portfolio Manager Miles Lewis, CFA®

We’re excited to announce the latest addition to our portfolio management team, Miles Lewis, who will be working with Chuck Royce.

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May 18, 2020—Miles Lewis, CFA® is joining Royce Investment Partners (“Royce”) as Portfolio Manager on Royce Total Return and Dividend Value Funds. Prior to joining the firm, he was a portfolio manager (2014-2020) and investment analyst (2010-2014) for the well-respected Small-Cap Value Fund and Strategy at American Century Investments.

We hired Miles because he has demonstrated proficiency using a small-cap, value-oriented, quality approach that is similar to Royce Total Return’s discipline. Indeed, Chuck Royce, Chris Clark, and Francis Gannon all see parallels between the approach Miles uses and what Chuck does in our dividend value portfolios. Over its nearly 30-year history, Royce Total Return Fund has delivered superior down-market performance compared with its peers and benchmark, as well as very low volatility and attractive risk-adjusted returns. The portfolio managers fully intend to continue to deliver that distinctive performance experience.

“We are very excited that Miles is joining Royce, especially given how well his approach to investing in small-cap stocks aligns with Chuck’s,” said Royce’s CEO, Chris Clark. “He is a meaningful and important addition to our highly experienced investment team. Even during this challenging time, we are committed to adding talented investors to our firm.”

“I look forward to joining the firm and working with Chuck Royce, for whom I have enormous respect,” added Mr. Lewis. “As we talked about how we evaluate companies, in particular the qualitative aspects of identifying high quality, I saw a great deal of common ground between our approaches.”

Mr. Lewis holds a bachelor’s degree in business administration from The College of William and Mary and a master’s degree in business administration from the Johnson Graduate School of Management at Cornell University. He is a CFA® charter holder and a member of the CFA® Institute.

Royce Investment Partners, investment adviser to The Royce Funds, is a small-cap equity specialist offering portfolios with distinctive investment approaches to address specific investment goals. The firm has been managing U.S., global and international micro-cap, small-cap and small/mid-cap strategies portfolios for more than 45 years.

Important Disclosure Information

Average Annual Total Returns as of 3/31/20 (%) 

  2Q201 1YR 3YR 5YR 10YR 15YR 20YR SINCE INCEPT. DATE ANNUAL OPERATING EXPENSES (%)
Dividend Value -30.72 -21.00 -3.96 0.17 5.83 5.95 N/A 6.31 05/03/04 Gross: 1.20 Net 1.09
Total Return -30.27 -22.81 -5.73 -0.34 5.70 5.02 7.45 8.88 12/15/93 Gross: 1.23 Net 1.23
Russell 2000 -30.61 -23.99 -4.64 -0.25 6.90 5.71 5.28 N/A N/A  
Russell 2000 Value -35.66 -29.64 -9.51 -2.42 4.79 4.11 6.83 N/A N/A  
Russell 2500 -29.72 -22.47 -3.10 0.49 7.73 6.49 N/A N/A N/A  

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 www.royceinvest.com. Operating expenses reflect Royce Total Returns total annual operating expenses for the Investment Class and include management fees, other expenses, and acquired fund fees and expenses. Gross operating expenses reflect Royce Dividend Value Funds total gross annual operating expenses for the Investment Class and include management fees and other expenses. Net operating expenses reflect contractual fee waivers and/or expense reimbursements. All expense information is reported as of each Fund's most current prospectus. Royce has contractually agreed, without right of termination, to waive fees and/or reimburse expenses to the extent necessary to maintain the Investment Class's net annual 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 1.09% through April 30, 2021. 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.

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. All indexes referenced are unmanaged and capitalization-weighted. The Russell 2000 Index is an index of domestic small-cap stocks that 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 Russell 2500 is index of the 2,500 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.

Low Volatility is the lowest quintile ranking; Below Average Volatility is the second-lowest quintile ranking; Average Volatility is the middle volatility quintile ranking; Above Average Volatility is the second-highest volatility quintile ranking; and High Volatility is the highest volatility quintile ranking. Volatility characteristics were determined based on the quintile ranking among all funds in Morningstar’s Small Growth, Small Blend, and Small Value Categories with at least five years of history, a total of 504 funds as of 03/31/20 for Total Return Fund. In each case, the universe consists of the fund’s oldest share class only. Royce calculated volatility quintiles based on the average five-year standard deviation for each of the last four calendar quarters, where four calendar quarters of history exist, or the five year standard deviation as of the latest quarter-end, or the three-year standard deviation as of the latest quarter-end. Higher volatility is usually associated with higher risk.

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.)

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