Fund Evaluator:

Royce Small-Cap Opportunity Invmt Overview

Royce Small-Cap Opportunity Invmt (RYPNX) is an actively managed U.S. Equity Small Value fund. Royce Investment Partners launched the fund in 1996.

The investment seeks long-term growth of capital. The fund’s investment adviser invests the fund’s assets primarily in equity securities of small-cap companies in an attempt to take advantage of what the adviser believes are opportunistic situations for undervalued securities. It invests at least 80% of its net assets in securities of small-cap companies, under normal circumstances. It may invest in other investment companies that invest in equity securities.

About Royce Small-Cap Opportunity Invmt (RYPNX)

There are 4 members of the management team with an average tenure of 5.08 years: James Harvey (2021), Kavitha Venkatraman (2021), James Stoeffel (2021), Brendan Hartman (2021). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: Russell 3000 TR USD index with a weighting of 100% and Russell 2000 Value TR USD index with a weighting of 100%. Royce Small-Cap Opportunity Invmt has 216 securities in its portfolio. The top 10 holdings constitute 8.7% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Royce Small-Cap Opportunity Invmt is part of the Equity global asset class and is within the U.S. Equity fund group. Royce Small-Cap Opportunity Invmt has 6.6% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 88.7%. There is 6.6% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Royce Small-Cap Opportunity Invmt has 4.7% of the portfolio in cash.

Assets Under Management

The fund has $950 million in total assets, which is above the $418 million average for the Small Value category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

RYPNX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Royce Small-Cap Opportunity Invmt expense ratio is high compared to funds in the Small Value category. Royce Small-Cap Opportunity Invmt has an expense ratio of 1.24%, which is 6% higher than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Royce Small-Cap Opportunity Invmt has a portfolio turnover rate of 51%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 127% for the Small Value category.

Recently, in the month of June 2026, Royce Small-Cap Opportunity Invmt returned 5.6%, which earned it a grade of C, as the Small Value category had an average return of 5.7%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Royce Small-Cap Opportunity Invmt has a trailing yield of 0.00%, which is below the 0.77% category average. The fund normally distributes its income annually and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Royce Small-Cap Opportunity Invmt Grades

Year to date, the fund has returned 33.9%, 13.2 percentage points better than the category, which translates into a grade of A. The fund has returned 53.9% over the past year (grade of A), 20.4% over the past three years (grade of A) and 10.4% per year over the past five years (grade of A) and 15.6% per year over the past 10 years (grade of A).

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