On 8/16/22, Morningstar upgraded the Institutional Class shares of Royce Premier Fund from Bronze to Silver, with the other four classes rising to Bronze. Dan Culloton, the director of equity strategies for Morningstar, wrote that the Fund’s “high-conviction approach and a solid portfolio warrant an Above Average Process Pillar.” He went on to describe the approach used by Co-Lead Portfolio Managers Lauren Romeo and Steven McBoyle as “more of a blend portfolio that has tended to avoid healthcare stocks, which has hindered it versus the small-growth Morningstar Category and the Russell 2000 and Russell 2500 indexes in the past. That said, the team has had some successes among the healthcare picks it has made in recent years, despite the firm’s lack of specific expertise in the sector,” while noting that “the portfolio’s average profitability measures still top those of its average rival and relevant benchmarks.”

He also discussed the Fund’s portfolio management team, saying, “Like most Royce Investment Partners managers, Romeo and McBoyle do much of their own research. The firm, however, promoted analyst Andrew Palen to assistant [portfolio] manager, hired Zach Weiss in April 2022 as a senior analyst for this strategy, and bolstered the family’s central analyst pool.” Chuck Royce, who founded the Fund, remains as a portfolio manager on the Fund.

https://www.morningstar.com/funds/xnas/ryprx/quote

About Morningstar’s Analyst Ratings

Morningstar’s Analyst Rating for funds is a forward-looking, qualitative rating that is designed to help investors find funds most likely to outperform their peers over a full market cycle. A fund that is most likely to outperform its peers receives an Morningstar Analyst Rating of Gold, followed by Silver, Bronze, Neutral, and Negative. Morningstar fund analysts assign Neutral or Negative ratings if they have little conviction in the fund’s ability to outperform.

The Morningstar Analyst Rating is based on three pillars: Process, People, and Parent. Funds receive scores of High, Above Average, Average, Below Average, or Low depending on their performance for each pillar.

“Process” refers to how managers execute their investment strategy. It also examines their investment research, decision making, and loyalty to their strategy—especially when it’s out of favor. “People” refers to the individuals who manage the fund. Managers with long tenures, qualified analysts, relevant investment experience, and diligent succession planning receive a high rating. “Parent” refers to the asset manager that offers the fund. Asset managers with a winning investment culture, detailed preparation, and fundholder-friendly processes earn a high rating.

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