Investment Team Update for RYPNX—Royce
article 09-27-2021

Investment Team Update for Royce Opportunity Fund

Buzz Zaino will return to his role as Senior Advisor on the team that manages Royce Opportunity Fund, one of our Small-Cap Opportunistic Value Strategy portfolios, while Kavitha Venkatraman joins the Strategy as Assistant Portfolio Manager.

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Effective with the close of business on 10/29/21, Buzz Zaino will return to his role as Senior Advisor on the team that manages Royce Opportunity Fund, while Kavitha Venkatraman will be joining Royce as Assistant Portfolio Manager on all of the Small-Cap Opportunistic Value Strategy portfolios on 10/4/21. Portfolio Managers’ Jim Stoeffel, Brendan Hartman, and Jim Harvey, who joined Buzz in managing the strategy on 4/21/21, will lead the Strategy following this transition. As Senior Advisor, Buzz will continue working with the team, engaging with companies and participating in the daily morning meetings where the team evaluates each position in the portfolio.

Buzz said, “I’m very pleased that we have such an excellent team in place—one that’s more than capable of bringing the same level of success to the portfolio and engagement with our investors that it’s enjoyed since Royce launched the Opportunistic Strategy in 1998. The leadership transition to Jim, Brendan and Jim has been seamless, and I am completely comfortable reverting back to my role as Senior Advisor with the strategy in such experienced and capable hands. The addition of Kavitha to the team brings an added dimension as she brings experience and perspective that will make this strong team that much better.”

Royce CEO Chris Clark added, “We are extremely grateful to Buzz, who created this Strategy and very successfully managed it at Royce for more than two decades, for the skill and leadership he’s shown throughout his career with us. His dedication to our shareholders and investors has been exemplary, and we are thrilled he will continue his involvement with the team as a Senior Advisor. Importantly, we are very fortunate to have such a highly experienced team of portfolio managers, who have a combined 62 years of investment experience managing small- and micro-cap portfolios, at the helm of this long standing and highly successful strategy. Finally, with the arrival of Kavitha Venkatraman, we have added another talented, highly capable investment professional who will be a great addition to the team.”

The portfolio managers will use the same process-oriented, theme-based investment discipline in the Royce Small-Cap Opportunistic Value Strategy that has been used since its inception in 1998. The strategy will continue to invest in companies with low P/B and P/S ratios that are categorized into one of four themes: Turnarounds, Unrecognized Asset Values, Undervalued Growth, and Interrupted Earnings.

In discussing how the team works together, Portfolio Manager Jim Stoeffel said, “We see many benefits to our team-managed approach. Most important, we see the intellectual rigor of vetting an idea with peers as a critical function in developing conviction on an investment opportunity, either as a risk mitigation tool or as an opportunity to increase or decrease a position size. Individual bias can be a potential impediment to successful investing, and therefore we believe that a team approach, when successfully executed, can help alleviate such biases. The concept of peer review is common in many industries, and in our view plays a critical role in portfolio management. We also believe that the key to a successful team resides in mutual respect and collegiality. Having worked closely with Brendan for over 25 years and with Jim Harvey for the past 12, we all have great confidence in each other’s capabilities and the complimentary skills we bring to managing the Opportunity Strategy.”

About Kavitha Venkatraman: Kavitha Venkatraman has 11 years of investment industry experience with a specific focus on the value segment of the equity market. She has a patient, highly disciplined style that focuses on long-term returns and enjoys doing primary research. She joins Royce after an extensive search process that included substantial input from Messrs. Zaino, Stoeffel, Hartman, and Harvey, as well as Co-CIOs Chris Clark and Frank Gannon and founder Chuck Royce. The firm was deeply impressed by her independent thinking, unique background, and distinctive perspective gained from living and investing globally. Throughout her career as an analyst, she has been a successful stock picker with a demonstrated track record across diverse geographies and sectors, most recently at Alpine Peaks Capital (2020-present). Previously, she was an equity analyst as Pzena Investment Management (2016-2020), Steinberg Asset Management (2013-2016), and Blackrock (2010-2013). She holds a Master of Business Administration, Major in Finance from the Wharton School of Business and a bachelor’s degree in Engineering with a major in Computer Science from Madras University in Chennai, India.

Important Disclosure Information

Average Annual Total Returns as of 6/30/21 (%) 

  2Q211 1YR 3YR 5YR 10YR 15YR 20YR SINCE INCEPT. DATE
Opportunity Fund 4.64 102.05 17.76 21.11 13.19 10.42 11.24 13.23 11/19/96
Russell 2000 Value 4.56 73.28 10.27 13.62 10.85 7.90 9.17 9.92 N/A
Russell 2000 4.29 62.03 13.52 16.47 12.34 9.51 9.26 9.45 N/A

Annual Operating Expenses: 1.23

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 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.

About Royce Investment Partners: Royce Investment Partners is a small-cap equity specialist offering distinct investment strategies with unique risk/return profiles designed to meet a variety of investors’ needs. For more than 45 years, our strategies have focused on active, risk-conscious investing driven by deep, fundamental company research. Chuck Royce, the firm’s founder and a pioneer of small-cap investing, enjoys one of the longest tenures in the industry. Royce & Associates, LP, primarily conducts its business under the name Royce Investment Partners. Royce & Associates, LP is a subsidiary of Franklin Resources. (NYSE: BEN). Royce Fund Services, LLC, the Fund’s distributor, is a member of FINRA and the SIPC.

Please read the fund's prospectus carefully and consider a fund's investment goals, risks, fees and expenses before investing or sending money. The prospectus contains this and other information. Distributor: Royce Fund Services, LLC

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