Fund Evaluator:

Royce Small-Cap Fund Invmt Overview

Royce Small-Cap Fund Invmt (PENNX) is an actively managed U.S. Equity Small Blend fund. Royce Investment Partners launched the fund in 1972.

The investment seeks long-term growth of capital. The fund invests at least 80% of its net assets in equity securities of such small-cap companies, under normal circumstances. Although the fund generally focuses on securities of U.S. companies, it may invest up to 25% of its net assets (measured at the time of investment) in securities of companies headquartered in foreign countries. The fund may invest in other investment companies that invest in equity securities.

About Royce Small-Cap Fund Invmt (PENNX)

There are 6 members of the management team with an average tenure of 10.98 years: Steven McBoyle (2019), Lauren Romeo (2006), Miles Lewis (2021), Andrew Palen (2018), Jay Kaplan (2003), Francis Gannon (2024). 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 TR USD index with a weighting of 100%. Royce Small-Cap Fund Invmt has 261 securities in its portfolio. The top 10 holdings constitute 12.7% 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 Fund Invmt is part of the Equity global asset class and is within the U.S. Equity fund group. Royce Small-Cap Fund Invmt has 11.1% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 84.6%. There is 11.1% 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 Fund Invmt has 4.3% of the portfolio in cash.

Assets Under Management

The fund has $1 billion in total assets, which is above the $694 million average for the Small Blend 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.

PENNX 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 Fund Invmt expense ratio is high compared to funds in the Small Blend category. Royce Small-Cap Fund Invmt has an expense ratio of 0.95%, which is 9% lower than its category average, making the fund expense ratio grade a C. 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 Fund Invmt has a portfolio turnover rate of 43%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 65% for the Small Blend category.

Recently, in the month of June 2026, Royce Small-Cap Fund Invmt returned 6.5%, which earned it a grade of B, as the Small Blend category had an average return of 5.9%. 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 Fund Invmt has a trailing yield of 0.40%, which is below the 0.41% 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 Fund Invmt Grades

Year to date, the fund has returned 23.8%, 2.1 percentage points better than the category, which translates into a grade of B. The fund has returned 35.9% over the past year (grade of C), 16.6% over the past three years (grade of C) and 9.7% per year over the past five years (grade of B) and 12.7% per year over the past 10 years (grade of A).

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