Royce Smaller-Companies Growth Fund (RYVPX, RVPHX, RVPCX, RVPIX, RVPKX, RVPRX)
10

At a Glance

Why invest in Smaller-Companies Growth?

  • Small/mid-cap growth fund (generally market caps up to $7.5 billion) that invests in companies with superior revenue and/or earnings growth selling at prices that Royce believes do not fully reflect their prospects.
  • Seeks companies that look poised for multi-year periods of robust growth driven by sustainable competitive advantages and/or benefiting from secular growth themes that create favorable conditions for the business.
  • Average annual total return of 8.9% since inception (5/1/98) through 9/30/21

As of 09/30/24

  • Small-Cap
    Growth Approach
    $2.69B
    Avg. Market Cap
  • High
    Volatility
    91%
    Active Share
  • Portfolio Manager
    Tenure
    21+
    Years on Fund†

Portfolio Management

"We are looking for companies whose business is at an inflection point, growing faster than consensus estimates and have a long runway of growth. These companies generally have developed a better ‘mouse-trap’ and are leaders in their industries."
—Chip Skinner

Manager Tenure

Manager Tenure

Performance

Average Annual Total Returns (%)

Outperformed Russell 2000 Growth for the Year To Date, 1-Year, 5-Year and since inception (06/14/01) periods as of 09/30/24. Outpaced Russell 2000 for the Year To Date, 1-Year, 5-Year and since inception (06/14/01) periods as of 09/30/24.
QTR YTD 1YR 3YR 5YR 10YR 15YR 20YR SINCE INCEPT.
(06/14/01)
Smaller-Companies Growth 8.38 14.9830.91-4.439.768.188.967.9510.27
Russell 2000 Growth 8.41 13.2227.66-0.358.828.9511.098.997.54
Russell 2000 9.27 11.1726.761.849.398.7810.598.498.11

Annual Operating Expenses: Gross 1.57 Net 1.49

OCT YTD 1YR 3YR 5YR 10YR 15YR 20YR SINCE INCEPT.
(06/14/01)
Smaller-Companies Growth 2.99 18.4147.09-5.489.757.969.708.0710.37
Russell 2000 Growth -1.33 11.7236.49-2.307.928.1511.538.787.45
Russell 2000 -1.44 9.5634.07-0.058.507.9411.008.308.01

Annual Operating Expenses: Gross 1.57 Net 1.49

NOV YTD 1YR 3YR 5YR 10YR 15YR 20YR SINCE INCEPT.
(06/14/01)
Smaller-Companies Growth 10.28 30.5844.31-0.8811.758.9810.198.2210.80
Russell 2000 N/A N/AN/AN/AN/AN/AN/AN/AN/A
Russell 2000 Growth N/A N/AN/AN/AN/AN/AN/AN/AN/A

Annual Operating Expenses: Gross 1.57 Net 1.49

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 gross total annual operating expenses for the Service Class and include management fees, 12b-1 distribution and service 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 Service 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 1.49% through April 30, 2025.

Rolling Returns

For 89% 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% 53 33
> 5% and ≤ 10% 89 56
> 0% and ≤ 5% 18 11
≤ 0% 0 0

The Fund averaged a 8.8% return over all 160 10-year monthly rolling return periods.

Market Cycle Performance

The Fund outperformed the Russell 2000 Growth in one of the two previous full market cycle periods.
Peak-Peak - 08/31/18 - 02/19/20
Smaller-Companies Growth-0.2%
Russell 2000 Growth3.3%

Peak-Peak - 02/19/20 - 02/09/21
Smaller-Companies Growth68.9%
Russell 2000 Growth50.5%

Peak-Current - 02/09/21 - 09/30/24
Smaller-Companies Growth-19.3%
Russell 2000 Growth-13.4%

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 06/14/01 and 09/30/24

Smaller-Companies Growth$97,518.33
Russell 2000 Growth$54,325.59

Risk

High Volatility vs. Peer Group as of 09/30/24

The Fund has a high volatility within its peer group of 512 Small-Cap Funds based on 5-year rolling standard deviation.

Down Market Performance Comparisonas of 09/30/24

Market Downturns (%)

DownMarketImg

Russell 2000 Growth Down Quarters

QUARTER ENDRUSSELL 2000 GROWTH (%)SMALLER-COMPANIES GROWTH (%)SPREAD (%)
06/30/24-2.9-2.90.0
09/30/23-7.3-10.9-3.6
06/30/22-19.3-23.4-4.1
03/31/22-12.6-16.7-4.1
09/30/21-5.7-5.6+0.1
03/31/20-25.8-23.8+2.0
09/30/19-4.2-6.2-2.0
12/31/18-21.7-22.8-1.1
03/31/16-4.7-4.4+0.3
09/30/15-13.1-11.1+2.0
09/30/14-6.1-6.5-0.4
06/30/12-3.9-8.0-4.1
09/30/11-22.2-22.4-0.2
06/30/11-0.6-2.6-2.0
06/30/10-9.2-8.0+1.2

Capture Ratios Fund's First Full Quarter (06/30/01) 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 5 years, the Fund outperformed the Russell 2000 Growth Index.
From the Fund's inception, the Fund outperformed the Russell 2000 Growth Index.

Go to Relative Risk Spectrum Tool

Morningstar Statistical Measures as of 09/30/24

Sharpe RatioStandard Deviation
Smaller-Companies Growth0.3921.91
Russell 2000 Growth0.4420.73
Category Median0.4420.12
Best Quartile Breakpoint0.4919.29

Category Median and Best Quartile Breakpoint based on 432 small-cap objective funds (oldest class only) with at least ten years of history.
Sharpe Ratio Standard Deviation
Smaller-Companies Growth
Russell 2000 Growth
Category Median
Best Quartile Breakpoint

Composition

Morningstar Style Map™as of 06/30/24

mstar-RYVPX

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

  RYVPX Russell 2000 Growth
Average Market Cap
2.69B
3.24B
Active Share
91%
-
2023 Portfolio Turnover
65%
-
Weighted Average P/B,
4.0x
4.2x
3-5 Year EPS Growth (est.)
23.1%
16.8%
U.S. Investments (% of Net Assets)
83.8%
-
Non-U.S. Investments (% of Net Assets)
12.9%
-

Portfolio Allocation

  • Total
    Holdings
    87


SECTORS		RYVPX (%) RUSSELL
2000 GROWTH (%)
Health Care
24.4
25.6
Information Technology
22.4
19.6
Industrials
20.8
21.8
Financials
9.7
8.3
Consumer Discretionary
9.2
10.1
Energy
3.3
3.4
Materials
2.8
3.9
Consumer Staples
2.8
3.2
Communication Services
1.4
2.0
Real Estate
-
1.5
Utilities
-
0.5
Cash and Cash Equivalents
3.3
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Zeta Global Holdings Cl. A
2.8
FTAI Aviation
2.7
Avid Bioservices
2.6
Distribution Solutions Group
2.5
VSE Corporation
2.4
ARS Pharmaceuticals
2.2
ACV Auctions Cl. A
2.1
Agilysys
2.1
Harrow
2.0
Corcept Therapeutics
2.0
Freshpet
1.9
Semtech Corporation
1.8
AeroVironment
1.7
Carpenter Technology
1.6
Golar LNG
1.6
Atlantic Union Bankshares
1.6
BWX Technologies
1.6
Seacoast Banking Corporation of Florida
1.5
Bright Horizons Family Solutions
1.5
JFrog
1.5
Top 20 as % of Net Assets
39.7

SECTORS		RYVPX (%) RUSSELL
2000 GROWTH (%)
Health Care
22.7
-
Information Technology
21.5
-
Industrials
19.4
-
Financials
10.7
-
Consumer Discretionary
9.6
-
Energy
3.4
-
Consumer Staples
3.0
-
Materials
2.4
-
Communication Services
1.8
-
Cash and Cash Equivalents
5.4
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
VSE Corporation
2.9
FTAI Aviation
2.7
Distribution Solutions Group
2.4
Avid Bioservices
2.2
ARS Pharmaceuticals
2.2
NextNav
2.1
Corcept Therapeutics
2.0
Reddit Cl. A
1.8
AeroVironment
1.8
Freshpet
1.8
Life Time Group Holdings
1.7
BWX Technologies
1.7
Semtech Corporation
1.7
Texas Roadhouse
1.6
Mirion Technologies Cl. A
1.6
Atlantic Union Bankshares
1.6
Golar LNG
1.6
PAR Technology
1.5
Seacoast Banking Corporation of Florida
1.5
OneSpaWorld Holdings
1.5
Top 20 as % of Net Assets
37.9

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 ($) REINVEST
PRICE ($)
12/14/22 12/15/22 12/15/22 0.0000 0.1050 0.1329 - 0.2379 5.55
12/15/21 12/16/21 12/16/21 0.0000 0.5230 2.4322 - 2.9552 7.99
12/09/20 12/10/20 12/10/20 0.0000 - 1.1087 - 1.1087 10.04
12/11/19 12/12/19 12/12/19 0.0000 - 0.2770 - 0.2770 7.81
12/12/18 12/13/18 12/13/18 0.0000 0.3647 2.6901 - 3.0548 7.03
12/13/17 12/14/17 12/14/17 0.0000 0.0607 2.1727 - 2.2334 10.47
12/14/16 12/15/16 12/15/16 0.0000 0.0046 1.2506 - 1.2552 11.15
12/16/15 12/17/15 12/17/15 0.0000 0.3185 2.4330 - 2.7515 11.12
12/16/14 12/17/14 12/17/14 0.0000 0.2879 2.9932 - 3.2811 13.90
12/04/13 12/05/13 12/05/13 0.0000 - 1.3450 - 1.3450 16.30
12/07/11 12/08/11 12/08/11 0.0798 - - - 0.0798 11.89
12/08/10 12/09/10 12/09/10 0.0341 - - - 0.0341 13.18

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 1.00
Distribution (12b-1) fees 0.25
Other expenses 0.32
Total annual Fund operating expenses 1.57
Fee waivers and/or expense reimbursements (0.08)
Total annual Fund operating expenses after fee waivers and/or expense reimbursements1.49
Royce has contractually agreed, without right of termination, to waive fees and/or reimburse expenses to the extent necessary to maintain the Service 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 1.49% 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 in foreign securities (measured at the time of investment), 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 2000 Value and Growth indices consist of the respective value and growth stocks within the Russell 2000 as determined by Russell Investments. 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.

† Managed by Chip Skinner since 2016 (lead portfolio manager 2016, manager 2007-2016, and co-manager 2003-2007)

6/14/2001 12:00:00 AM

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