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 micro-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.
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.
† Brendan Hartman lead manager since 2024 (manager 2021-2024), Jim Stoeffel since 2021, Jim Harvey since 2021, assistant Kavitha Venkatram since 2022
1 The Morningstar Rating for funds, or ‘star rating’, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed end funds, and separate accounts) with at least a 3-year history. Exchange–traded funds and open ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year (if applicable) Morningstar Rating metrics. The weights are 100% 3-year rating for 36-59 months of total returns, 60% 5-year rating/40% 3-year rating for 60-119 months of total returns, and 50% 10-year rating/30% 5-year rating/20% 3-year rating for 120 or more months of total returns. While the 10-year overall rating formula seems to give the most weight to the 10-year period, the most recent 3-year period actually has the greatest impact because it is included in all 3 rating periods. The Fund's Investment Class was rated 2, 4 and 4 stars against 464, 441 and 349 funds in the category for the 3-, 5- and 10-year periods, respectively. The Fund’s other share class may have different performance characteristics. Past performance is no guarantee of future results. ©2025 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
2 Royce classifies a client account as ‘Value’ because it anticipates it will have a weighted average price-to-book ratio or weighted average normalized price-to-earnings ratio lower than its general asset class (e.g. U.S. Small-Cap, U.S. Micro-Cap, International Small-Cap, Global Small-Cap); as ‘Core’ because it anticipates the client account equity holdings will have a weighted average price-to-book ratio or weighted average normalized price to earnings ratio that is similar to, or somewhat higher than, its general asset class; or as ‘Growth’ because it anticipates the client account equity holdings will have weighted average estimated eps growth higher than its general asset class.
3 Geometric Average: This weighted calculation uses each portfolio holding's market cap in a way designed to not skew the effect of very large or small holdings; instead, it aims to better identify the portfolio's center, which Royce believes offers a more accurate measure of average market cap than a simple mean or median.
4 Low Volatility is the lowest quintile ranking; Below Average Volatility is the second-lowest quintile ranking; Average Volatility is the middle volatility quintile ranking; Above Average Volatility is the second-highest volatility quintile ranking; and High Volatility is the highest volatility quintile ranking. Volatility characteristics were determined based on the quintile ranking among all funds in Morningstar’s Small Growth, Small Blend, and Small Value Categories with at least five years of history, a total of 540 funds as of 12/31/24 for Royce Micro-Cap, Premier, Small-Cap, Small-Cap Opportunity, Small-Cap Special Equity, Small-Cap Total Return, Small-Cap Value, and Smaller-Companies Growth Funds; for Royce Dividend Value Fund Fund the quintile ranking among all funds in Morningstar’s Small and Mid Growth, Small and Mid Blend, and Small and Mid Value Categories with at least five years of history, a total of 965 funds as of 12/31/24; for , the quintile ranking among all funds in Morningstar’s Large Growth, Large Blend, and Large Value Categories with at least three years of history, a total of funds as of 12/31/24; for the quintile ranking among all funds in Morningstar’s World Stock Category with at least five years of history, a total of funds as of 12/31/24; for , the quintile ranking among all funds in Morningstar’s Financial Category with at least five years of history, a total of funds as of 12/31/24; for Royce International Premier Fund the quintile ranking among all funds in Morningstar’s Foreign Small/Mid Growth, Foreign Small/Mid Blend, and Foreign Small/Mid Value Categories with at least five years of history, a total of 96 funds as of 12/31/24; for the quintile ranking compared with all funds in Morningstar’s Foreign Small/Mid Growth, Foreign Small/Mid Blend, and Foreign Small/Mid Value Categories with at least three years of history, a total of funds as of 12/31/24. In each case, the universe consists of the fund’s oldest share class only. Royce calculated volatility quintiles based on the average five-year standard deviation for each of the last four calendar quarters, where four calendar quarters of history exist, or the five year standard deviation as of the latest quarter-end, or the three-year standard deviation as of the latest quarter-end. Higher volatility is usually associated with higher risk.
5 Active Share: The sum of the absolute values of the different weightings of each holding in the Portfolio versus each holding in the benchmark, divided by two.
6 MTD and QTD results are not annualized. YTD and since inception results for periods of less than one year are not annualized.
7 Average of monthly rolling average annual total returns over the specified periods.
8 Royce generally defines a trough as the lowest point of a decline of at least 15% from a market peak.
9 Upside Capture Ratio measures a manager’s performance in up markets relative to the client account’s benchmark (Russell 2000 Value). It is calculated by measuring the client account’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 client account’s benchmark (Russell 2000 Value). It is calculated by measuring the client account’s performance in quarters when the benchmark goes down and dividing it by the benchmark’s return in those quarters.
10 The Sharpe Ratio is calculated for a specified period by dividing a portfolio's average excess returns by its annualized standard deviation. The higher the Sharpe Ratio, the better the portfolio's historical risk-adjusted performance.
11 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.
12 The Morningstar Style Map uses proprietary scores of a stock's value and growth characteristics to determine its placement in one of the five categories listed on the horizontal axis. These characteristics are then compared to those of other stocks within the same market capitalization band. Each is scored from zero to 100 for both value and growth attributes. The value score is subtracted from the growth score to determine the overall style score. For the vertical, market cap axis, Morningstar subdivides into size groups. Giant-cap stocks are defined as those that account for the top 40% of the capitalization of each style zone; large-cap stocks represent the next 30%; mid-cap stocks the next 20%; small-cap stocks the next 7%; micro-cap stocks the smallest 3%.
13 Harmonic Average: This weighted calculation evaluates a portfolio as if it were a single stock and measures it overall. It compares the total market value of the portfolio to the portfolio's share in the earnings of its underlying stocks.
14 P/B Ratio - The Price-to-Book, or P/B, Ratio is calculated by dividing a company's share price by its book value per share.
15 Price to Sales is calculated by dividing the company’s market cap by the revenue in the most recent year.
