Royce U.S. Small Cap Opportunity Fund
About The Fund
Investment Aim
Seeks to achieve long-term capital appreciation by investing primarily in a diversified portfolio of equity securities issued by small-cap and micro-cap US companies.
Performance Benchmark
Russell 2000 Index
- Invests primarily in small- and micro-cap 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 a broad range of small- and micro-cap companies and portfolio diversification is achieved by holding around 300 stocks.
- Micro-cap companies usually comprise around 40% to 50% 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, ie what the manager believes a knowledgeable buyer would pay to acquire the entire company.
- The Fund's portfolio falls within one of four distinctive themes: unrecognised asset values; turnarounds; undervalued growth; and interrupted earnings.
- The investment manager seeks to identify promising 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. Please refer to the offering document for Legg Mason Global Funds plc, which describe the full risk factors associated with this Fund