Royce Smaller Companies Fund
About The Fund
Investment Aim
The Fund seeks to achieve long-term capital appreciation by investing at least two-thirds of its Total Asset Value in equity securities issued by mid- and small-cap companies with stock market capitalisations of less than US$5 billion.
Performance Benchmark
Russell 2000 Index
- Invests primarily in small US companies.
- Highly experienced investment team.
- Standard & Poor's fund management rating: AA.
About the Investment Strategy
- Bottom-up stock selection process based on a disciplined value approach.
- Portfolio comprises around 100 companies that the investment manager considers are 'outstanding' small- and micro-cap companies.
- Micro-cap companies usually comprise less than 20% of the Fund's portfolio.
- Seeks to invest in companies trading at discounts of 50% or more to the investment manager's estimate of their value as a business, i.e. what the manager believes a knowledgeable buyer would pay to acquire the entire company.
- The investment manager seeks to identify companies that have strong balance sheets, high internal rates of return and excess cash flow.
About the Investment Team
Headquartered in New York, Royce & Associates has more than 30 years' investment experience in US small-cap equities. The firm focuses exclusively on the US smaller companies sector.
Risk Factors: Fluctuations in exchange rates can affect the value of the Fund and the income from it. The Fund may acquire shares in companies with relatively small market capitalisations and may involve a higher degree of risk. The Fund may select fewer equities in which to invest and this concentration carries more risk than funds investing in a larger number of companies. Please refer to the offering document for Legg Mason Global Funds plc, which describes the full risk factors associated with this Fund.