Chuck Royce in Business Insider on Being a Small-Cap Pioneer
article 05-31-2023

Chuck Royce in Business Insider on Being a Small-Cap Pioneer

Chuck and co-CIO Francis Gannon talk about our flagship’s long-term record and three high-confidence holdings.


Chuck Royce and Francis Gannon spoke recently to Marley Jay of Business Insider about Chuck’s long-term record managing Royce Pennsylvania Mutual Fund and how not many investors “got into the market before the advent of a major index” as Chuck did before the inception of the Russell 2000 Index. Chuck said, “We were early in identifying [small cap] as a category for investing even before Russell showed up."

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The article also looked at the evolution of Chuck’s approach, including the critical realization that “risk is as important as reward and the work has to be around the risk factors. I came to an early feeling that risk management has to be part of the goal."

The piece continues with a discussion of three holdings in which Chuck and Francis have especially high confidence.

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Important Disclosure Information

Average Annual Total Returns as of 3/31/2023 (%)

NET               GROSS
Pennsylvania Mutual 8.15 -1.30 21.46 7.24 8.53 12.19 N/A  0.96  0.96
Russell 2000
2.74 -11.61 17.51 4.71 8.04 N/A 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 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.

Mr. Royce’s and Mr. Gannon’s thoughts and opinions concerning the stock market are solely their own and, of course, there can be no assurance with regard to future market movements. No assurance can be given that the past performance trends as outlined above will continue in the future.

The performance data and trends outlined in this presentation are presented for illustrative purposes only. Past performance is no guarantee of future results. Historical market trends are not necessarily indicative of future market movements.

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 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. 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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