This fund aims for sustained long-term appreciation of investment capital. Its portfolio is primarily comprised of common stocks issued by smaller U.S.-listed companies. These investments are chosen according to specific standards established through a unique analytical framework devised by the fund's sub-advisor. Royce employs a systematic, quantitative methodology to pinpoint securities that exhibit a favorable blend of characteristics: they are valued below the market average, demonstrate superior profitability, and possess strong debt coverage (signifying sufficient cash flow to fulfill their current debt commitments). This selection process is carried out relative to other potential investments in its universe, with the objective of maintaining a similar overall risk profile.


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