Royce Small-Cap Special Equity Fund Consultant Class (RSQCX)

Overview

The investment strategy of the fund focuses primarily on equity securities of small-cap companies, which are defined as those companies with a small market capitalization. The fund commits to investing at least 80% of its net assets in such equity securities under normal circumstances. While its primary focus is on investing in U.S. companies, the fund maintains the flexibility to allocate up to 10% of its net assets in securities of companies headquartered in foreign countries, allowing for a diverse investment portfolio. This strategic allocation aims to capitalize on the growth potential of small-cap companies while managing the risks associated with equity investments.

Products and Services

• Equity Securities of Small-Cap Companies

This service entails investing the majority of the fund’s assets in equity securities of small-cap companies. Such companies are typically those with a smaller market capitalization, which could offer significant growth potential. The fund aims to identify and invest in these opportunities, underpinning its strategy with the expectation of achieving higher returns compared to investing in larger, more established companies.

• Investment in Foreign Companies

While the fund primarily focuses on U.S.-based small-cap companies, it reserves the capacity to invest up to 10% of its net assets in equity securities of companies that are headquartered in foreign countries. This allocates a portion of the fund’s assets towards international markets, thereby diversifying its investment portfolio and potentially enhancing returns through exposure to global opportunities.