Royce Dividend Value Fund (RYDVX, RDVIX, RDIIX)
205

At a Glance

Why invest in Dividend Value?

  • Small/mid-cap value fund (generally market caps up to $15 billion) that invests primarily in dividend-paying companies with strong business fundamentals and attractive prospects.
  • Focuses on quality businesses, both U.S. and foreign, with below-average debt and above-average profitability selling at prices that Royce believes do not fully reflect underlying quality.
  • Average annual total return of 9.2% since inception (5/3/04) through 9/30/24.

As of 09/30/24

  • Small/Mid-Cap
    Value Approach
    $8.84B
    Avg. Market Cap
  • Below Average
    Volatility
    97%
    Active Share
  • Fund
    Longevity
    20+
    Years of History

Portfolio Management

"Our goal is to invest in what we see as high-quality businesses trading at a discount to our estimate of their intrinsic value by using a rigorous and repeatable process with the goal of long-term growth."
—Miles Lewis

Manager Tenure

Manager Tenure

Performance

Average Annual Total Returns (%)

Outperformed Russell 2500 for the Quarter, Year To Date, 1-Year, 3-Year and 5-Year periods as of 09/30/24. Outpaced Russell 2000 for the Quarter, Year To Date, 1-Year, 3-Year, 5-Year, 10-Year, 20-Year and since inception (05/03/04) periods as of 09/30/24.
QTR YTD 1YR 3YR 5YR 10YR 15YR SINCE INCEPT.
(05/03/04)
Dividend Value 9.66 16.9733.0010.0511.468.9910.599.17
Russell 2500 8.75 11.3026.173.4710.439.5011.629.37
Russell 2000 9.27 11.1726.761.849.398.7810.598.40

Annual Operating Expenses: Gross 1.27 Net 1.09

OCT YTD 1YR 3YR 5YR 10YR 15YR SINCE INCEPT.
(05/03/04)
Dividend Value 0.43 17.4840.488.1910.918.7610.829.16
Russell 2500 -0.93 10.2733.081.519.818.9211.999.28
Russell 2000 -1.44 9.5634.07-0.058.507.9411.008.29

Annual Operating Expenses: Gross 1.27 Net 1.09

NOV YTD 1YR 3YR 5YR 10YR 15YR SINCE INCEPT.
(05/03/04)
Dividend Value 3.57 21.6734.468.3811.179.0910.889.32
Russell 2000 N/A N/AN/AN/AN/AN/AN/AN/A
Russell 2500 N/A N/AN/AN/AN/AN/AN/AN/A

Annual Operating Expenses: Gross 1.27 Net 1.09

Important Performance and Expense Information

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. Current month-end performance may be higher or lower than performance quoted and may be obtained at www.royceinvest.com. Gross operating expenses reflect the Fund's 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 the 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, 2025.

All performance and risk information presented in this material prior to the commencement date of Investment Class shares on 9/14/07 reflects Service Class results. Service Class shares bear an annual distribution expense that is not borne by Investment Class shares.

Rolling Returns

For 100% of the periods, 10-year average annual total returns were greater than 5%.

Absolute Returns: 10-Year Monthly Rolling Return PeriodsNumber of 10-Year Average Annual Return Periods Since the Fund’s Inception

Return Range Periods % in Range
> 10% 27 22
> 5% and ≤ 10% 98 78
> 0% and ≤ 5% 0 0
≤ 0% 0 0

The Fund averaged a 8.7% return over all 125 10-year monthly rolling return periods.

Market Cycle Performance

The Fund outperformed the Russell 2500 from the 11/8/21 index peak through current (9/30/24) and in one of the two previous full market cycle periods.
Peak-Peak - 08/29/18 - 02/20/20
Dividend Value6.9%
Russell 25005.6%

Peak-Peak - 02/20/20 - 11/08/21
Dividend Value28.1%
Russell 250045.2%

Peak-Current - 11/08/21 - 09/30/24
Dividend Value21.6%
Russell 25001.1%

Royce defines market cycles as those that have retreated at least 15% from a previous market peak and have rebounded to establish a new peak above the previous one. 

Royce defines market cycles as those that have retreated at least 15% from a previous market peak and have rebounded to establish a new peak above the previous one. 

Calendar Year Total Returns (%)

 

Growth of Investment

Value of $10,000 invested between 05/03/04 and 09/30/24

Dividend Value$59,984.59
Russell 2500$62,214.44

Risk

Below Average Volatility vs. Peer Group as of 09/30/24

The Fund has a below average volatility within its peer group of 947 Small/Mid-Cap Funds based on 5-year rolling standard deviation.

Down Market Performance Comparisonas of 09/30/24

The Fund outperformed the Russell 2500 during all six downturns of 15% or more from the index’s prior historical high since the Fund’s inception.

Market Downturns (%)

DownMarketImg

Russell 2500 Down Quarters

QUARTER ENDRUSSELL 2500 (%)DIVIDEND VALUE (%)SPREAD (%)
06/30/24-4.3-3.7+0.6
09/30/23-4.8-3.5+1.3
09/30/22-2.8-4.6-1.8
06/30/22-17.0-16.0+1.0
03/31/22-5.8-5.9-0.1
09/30/21-2.7-3.7-1.0
03/31/20-29.7-30.7-1.0
09/30/19-1.3-1.6-0.3
12/31/18-18.5-17.6+0.9
03/31/18-0.2-1.3-1.1
09/30/15-10.3-10.30.0
06/30/15-0.3+1.6+1.9
09/30/14-5.3-7.3-2.0
06/30/12-4.1-6.3-2.2
09/30/11-21.2-19.4+1.8
06/30/11-0.6-1.4-0.8
06/30/10-10.0-6.7+3.3

Capture Ratios Fund's First Full Quarter (06/30/04) to 09/30/24

Upside Capture Ratio measures a manager's performance in up markets relative to the Fund's benchmark. It is calculated by measuring the Fund's performance in quarters when the benchmark goes up and dividing it by the benchmark's return in those quarters.

Downside Capture Ratio measures a manager's performance in down markets relative to the Fund's benchmark. It is calculated by measuring the Fund's performance in quarters when the benchmark goes down and dividing it by the benchmark's return in those quarters.

Long Term Risk Measurementas of 09/30/24

Over the past 10 years, the Fund produced lower volatility than the Russell 2500 Index.
Over the past 5 years, the Fund outperformed the Russell 2500 Index with lower volatility.
Over the past 3 years, the Fund outperformed the Russell 2500 Index with lower volatility.
From the Fund's inception, the Fund produced lower volatility than the Russell 2500 Index.

Go to Relative Risk Spectrum Tool

Morningstar Statistical Measures as of 09/30/24

The Fund beat the Russell 2500 and performed within the top 25% of small/mid-cap objective funds on a risk-adjusted basis, as shown by its Sharpe ratio. In addition, the Fund produced lower volatility than the Russell 2500 and 50% of small/mid-cap objective funds, as shown by its standard deviation.
The Fund beat the Russell 2500 and performed within the top 50% of small/mid-cap objective funds on a risk-adjusted basis, as shown by its Sharpe ratio. In addition, the Fund produced lower volatility than the Russell 2500 and 50% of small/mid-cap objective funds, as shown by its standard deviation.
The Fund produced lower volatility than the Russell 2500 and 50% of small/mid-cap objective funds, as shown by its standard deviation.
Sharpe RatioStandard Deviation
Dividend Value0.4718.42
Russell 25000.4819.05
Category Median0.4719.42
Best Quartile Breakpoint0.5217.96

Category Median and Best Quartile Breakpoint based on 771 small/mid-cap objective funds (oldest class only) with at least ten years of history.
Sharpe Ratio Standard Deviation
Dividend Value
Russell 2500
Category Median
Best Quartile Breakpoint

Composition

Morningstar Style Map™as of 06/30/24

mstar-RDVIX

The Morningstar Style Map is the Morningstar Style Box™ with the center 75% of fund holdings plotted as the Morningstar Ownership Zone™. The Morningstar Style Box is designed to reveal a fund's investment strategy. The Morningstar Ownership Zone provides detail about a portfolio's investment style by showing the range of stock sizes and styles. The Ownership Zone is derived by plotting each stock in the portfolio within the proprietary Morningstar Style Box. The shaded area represents the center 75% of the Fund's assets while the plot point in the middle represents the weighted average of its holdings. Over time, the shape and location of a fund's ownership zone may vary.

Portfolio Diagnosticsas of 09/30/24

  RDVIX Russell 2500
Average Market Cap
8.84B
5.52B
Active Share
97%
-
2023 Portfolio Turnover
14%
-
Weighted Average P/E,
21.6x
18.8x
Weighted Average P/B,
3.0x
2.4x
U.S. Investments (% of Net Assets)
72.2%
-
Non-U.S. Investments (% of Net Assets)
22.0%
-

Portfolio Allocation

  • Total
    Holdings
    47


SECTORS		RDVIX (%) RUSSELL
2500 (%)
Financials
35.7
16.7
Industrials
30.7
19.0
Materials
14.6
6.0
Consumer Discretionary
5.4
12.6
Health Care
4.1
12.8
Real Estate
1.6
7.2
Energy
1.6
4.8
Information Technology
0.5
11.8
Consumer Staples
-
3.3
Communication Services
-
3.0
Utilities
-
2.5
Cash and Cash Equivalents
5.8
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
HEICO Corporation Cl. A
5.4
Evercore Cl. A
4.8
Carlyle Group
4.6
Applied Industrial Technologies
4.3
SEI Investments
3.7
KKR & Co.
3.5
Royal Gold
3.5
First Citizens BancShares Cl. A
3.4
Hubbell Incorporated
3.2
Franco-Nevada
2.9
Top 10 as % of Net Assets
39.3

SECTORS		RDVIX (%) RUSSELL
2500 (%)
Financials
38.9
-
Industrials
24.1
-
Materials
16.7
-
Consumer Discretionary
6.7
-
Health Care
4.3
-
Information Technology
3.5
-
Energy
2.2
-
Real Estate
0.4
-
Cash and Cash Equivalents
3.3
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Carlyle Group
5.4
Evercore Cl. A
5.0
Applied Industrial Technologies
4.5
SEI Investments
4.0
KKR & Co.
3.7
Royal Gold
3.6
First Citizens BancShares Cl. A
3.6
Hubbell Incorporated
3.2
Franco-Nevada
3.1
AptarGroup
2.9
FTAI Aviation
2.9
KBR
2.7
Sprott
2.3
Graco
2.3
BOK Financial
2.3
Assured Guaranty
2.1
Reliance
2.0
State Street
2.0
Comfort Systems USA
2.0
Recordati Industria Chimica e Farmaceutica
1.9
Top 20 as % of Net Assets
61.5

Portfolio Holdings

Unaudited schedules of portfolio holdings are presented for informational purposes only.

View the complete list of holdings (unaudited) for this fund as of the previous quarter-end: 09/30/24.

Least Portfolio Overlap - U.S. Equity Funds

Greatest Portfolio Overlap - U.S. Equity Funds

Geographical Breakdown

Distributions

NAV & Distributions


Start DateEnd Date
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Distributions

RECORD
DATE		 EX-DATE PAYABLE
DATE		 INCOME ($) SHORT
TERM
GAINS ($)		 LONG
TERM
GAINS ($)		 RETURN OF
CAPITAL ($)		 TOTAL ($) REINVEST
PRICE ($)
09/11/24 09/12/24 09/12/24 0.0150 - - - 0.0150 6.69
06/12/24 06/13/24 06/13/24 0.0150 - - - 0.0150 6.34
03/13/24 03/14/24 03/14/24 0.0150 - - - 0.0150 6.43
12/13/23 12/14/23 12/14/23 0.0353 0.0188 0.6391 - 0.6932 5.97
09/13/23 09/14/23 09/14/23 0.0050 - - - 0.0050 6.13
06/14/23 06/15/23 06/15/23 0.0300 - - - 0.0300 6.11
03/15/23 03/16/23 03/16/23 0.0100 - - - 0.0100 5.56
12/14/22 12/15/22 12/15/22 0.0107 - 0.0118 - 0.0225 5.46
09/14/22 09/15/22 09/15/22 0.0100 - - - 0.0100 5.21
06/15/22 06/16/22 06/16/22 0.0150 - - - 0.0150 4.90
03/16/22 03/17/22 03/17/22 0.0100 - - - 0.0100 6.02
12/15/21 12/16/21 12/16/21 0.0261 0.0019 0.8676 - 0.8956 6.20
09/14/21 09/15/21 09/15/21 0.0050 - - - 0.0050 7.11
06/15/21 06/16/21 06/16/21 0.0150 - - - 0.0150 7.21
03/16/21 03/17/21 03/17/21 0.0150 - - - 0.0150 6.90
12/09/20 12/10/20 12/10/20 0.0604 - 0.2559 - 0.3163 5.96
09/02/20 09/03/20 09/03/20 0.0100 - - - 0.0100 5.54
06/03/20 06/04/20 06/04/20 0.0250 - - - 0.0250 5.41
03/04/20 03/05/20 03/05/20 0.0150 - - - 0.0150 5.37
12/11/19 12/12/19 12/12/19 0.0377 - 0.9153 - 0.9530 6.14
09/04/19 09/05/19 09/05/19 0.0250 - - - 0.0250 6.52
06/05/19 06/06/19 06/06/19 0.0250 - - - 0.0250 6.37
03/06/19 03/07/19 03/07/19 0.0150 - - - 0.0150 6.25
12/12/18 12/13/18 12/13/18 0.0234 0.0585 0.6716 - 0.7535 5.79
09/05/18 09/06/18 09/06/18 0.0150 - - - 0.0150 7.59
06/06/18 06/07/18 06/07/18 0.0350 - - - 0.0350 7.65
03/07/18 03/08/18 03/08/18 0.0250 - - - 0.0250 7.58
12/13/17 12/14/17 12/14/17 0.0515 0.0340 0.9869 - 1.0724 7.32
09/06/17 09/07/17 09/07/17 0.0250 - - - 0.0250 7.73
06/07/17 06/08/17 06/08/17 0.0300 - - - 0.0300 7.60
03/01/17 03/02/17 03/02/17 0.0200 - - - 0.0200 7.46
12/14/16 12/15/16 12/15/16 0.0200 - 0.6933 - 0.7133 7.25
09/07/16 09/08/16 09/08/16 0.0300 - - - 0.0300 7.47
06/01/16 06/02/16 06/02/16 0.0400 - - - 0.0400 7.19
03/02/16 03/03/16 03/03/16 0.0200 - - - 0.0200 6.84
12/16/15 12/17/15 12/17/15 0.0462 0.0406 0.6568 - 0.7436 6.82
09/02/15 09/03/15 09/03/15 0.0200 - - - 0.0200 7.64
06/03/15 06/04/15 06/04/15 0.0350 - - - 0.0350 8.41
03/04/15 03/05/15 03/05/15 0.0350 - - - 0.0350 8.15
12/16/14 12/17/14 12/17/14 0.0419 0.1160 0.3807 - 0.5386 7.92
09/03/14 09/04/14 09/04/14 0.0200 - - - 0.0200 8.98
06/04/14 06/05/14 06/05/14 0.0200 - - - 0.0200 8.95
03/05/14 03/06/14 03/06/14 0.0200 - - - 0.0200 8.90
12/04/13 12/05/13 12/05/13 0.0293 0.1345 0.3995 - 0.5633 8.57
09/04/13 09/05/13 09/05/13 0.0200 - - - 0.0200 8.41
06/05/13 06/06/13 06/06/13 0.0250 - - - 0.0250 8.17
03/06/13 03/07/13 03/07/13 0.0250 - - - 0.0250 7.87
12/05/12 12/06/12 12/06/12 0.0538 - 0.0175 - 0.0713 7.12
09/05/12 09/06/12 09/06/12 0.0150 - - - 0.0150 6.97
06/06/12 06/07/12 06/07/12 0.0250 - - - 0.0250 6.43
03/07/12 03/08/12 03/08/12 0.0250 - - - 0.0250 6.92
12/07/11 12/08/11 12/08/11 0.0187 0.0549 0.0375 - 0.1111 6.24
09/07/11 09/08/11 09/08/11 0.0150 - - - 0.0150 6.06
06/08/11 06/09/11 06/09/11 0.0200 - - - 0.0200 6.88
03/09/11 03/10/11 03/10/11 0.0100 - - - 0.0100 6.92
12/08/10 12/09/10 12/09/10 0.0199 0.0089 0.0179 - 0.0467 6.67
09/08/10 09/09/10 09/09/10 0.0150 - - - 0.0150 5.70
06/09/10 06/10/10 06/10/10 0.0350 - - - 0.0350 5.49
03/10/10 03/11/10 03/11/10 0.0150 - - - 0.0150 5.68
12/08/09 12/09/09 12/09/09 0.0195 - - - 0.0195 5.14
09/08/09 09/09/09 09/09/09 0.0100 - - - 0.0100 4.94
06/09/09 06/10/09 06/10/09 0.0200 - - - 0.0200 4.48
03/10/09 03/11/09 03/11/09 0.0150 - - - 0.0150 3.11

NAV History for

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Fees & Expenses

Shareholder Fees (%)

(fees paid directly from your investment)

Maximum sales charge (load) imposed on purchases 0.00
Maximum deferred sales charge 0.00
Maximum sales charge (load) imposed on reinvested dividends 0.00
Redemption fee (as a percentage of amount redeemed on shares held for less than 30 days) 1.00

Annual Fund Operating Expenses (%)

(expenses that you pay each year as a percentage of the value of your investment)

Management fees 0.85
Distribution (12b-1) fees 0.00
Other expenses 0.42
Total annual Fund operating expenses 1.27
Fee waivers and/or expense reimbursements (0.18)
Total annual Fund operating expenses after fee waivers and/or expense reimbursements1.09
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, 2025.

Important Disclosure Information

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 mid-cap stocks, which may involve considerably more risk than investing in larger-cap stocks. (Please see "Primary Risks for Fund Investors" in the prospectus.) The Fund’s broadly diversified portfolio does not ensure a profit or guarantee against loss. The Fund may invest up to 25% of its net assets (measured at the time of investment) in securities of companies headquartered in foreign countries, which may involve political, economic, currency, and other risks not encountered in U.S. investments. (Please see "Investing in Foreign Securities" in the prospectus.)

Sector weightings are determined using the Global Industry Classification Standard ("GICS"). GICS was developed by, and is the exclusive property of, Standard & Poor's Financial Services LLC ("S&P") and MSCI Inc. ("MSCI"). GICS is the trademark of S&P and MSCI. "Global Industry Classification Standard (GICS)" and "GICS Direct" are service marks of S&P and MSCI.

The Price-Earnings, or P/E, Ratio is calculated by dividing a company's share price by its trailing 12-month earnings-per-share (EPS). The Portfolio's P/E ratio calculation excludes cash holdings and companies with zero or negative earnings. The Price-to-Book, or P/B, Ratio is calculated by dividing a company's share price by its book value per share. Standard deviation is a statistical measure within which a client account’s total returns have varied over time. The greater the standard deviation, the greater a portfolio’s volatility.
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. Source: MSCI.  MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein.  The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products.  This report is not approved, endorsed, reviewed or produced by MSCI. None of the MSCI data is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. The Russell 2500 is index of the 2,500 smallest publicly traded U.S. companies in the Russell 3000 index. 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 performance of an index does not represent exactly any particular investment, as you cannot invest directly in an index.

† Miles Lewis lead manager since 2021 (manager 2020-2021), Joseph Hintz since 2022, Jag Sriram since 2024 

9/14/2007 12:00:00 AM

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