Royce & Associates, LLC is pleased to announce that Charlie Dreifus, portfolio manager for Royce Special Equity Fund and principal of Royce & Associates, LLC, has been selected as one of five nominees for Morningstar Manager of the Decade award in the Domestic Equity category. The category contained 1,367 funds for the decade-to-date period ended September 30, 2009.
Charlie''s nomination was based on several factors, including the Fund''s returns throughout the decade, "the risks assumed to achieve those results…the strength of the manager, strategy, and [the] firm''s stewardship." Charlie was also the recipient of Morningstar''s Domestic-Stock Fund Manager of the Year award in 2008.
Morningstar noted that the last decade "was a brutal time for equity investors. Not one, but two severe bear markets lasting roughly two years each decimated investment accounts. As we near the decade''s end, broad equity market indexes show flat to negative returns for the entire 10-year stretch. Stringing together a good record in that environment was a challenge as markets flip-flopped between rewarding and punishing excessive risk-taking. Of all domestic-equity funds, for example, barely a third have positive 10-year returns."
In contrast, the five nominees distinguished themselves. Each "excelled in this difficult environment by relying on their own blend of original research, making capital preservation a priority and sticking with their approaches in good times and bad." Morningstar went on to describe Charlie''s approach as "inspired by the Ben Graham school of value investing" and praised his ability to avoid "big losses with his laserlike focus on balance sheets and valuations."
Shortly after joining Royce & Associates, Charlie began to manage the portfolio that combined classic value analysis with accounting cynicism, Royce Special Equity Fund, which made its debut on 5/1/98.
Morningstar will announce the winners in January. A new award, the Fund Manager of the Decade honor recognizes fund managers who have achieved superior results over the past 10 years and is based on Morningstar''s proprietary research and in-depth evaluation by its fund analysts.
Please join us in congratulating Charlie on his nomination.
Important Disclosure Information
Investors should carefully consider the investment goals, risks, fees and expenses of Royce Special Equity Fund before investing. A free prospectus containing this and other important information may be obtained by calling Investor Services at 1-800-221-4268 or by visiting www.roycefunds.com. Investors should read the prospectus carefully before investing.
Charles R. Dreifus, CFA, is Portfolio Manager of Royce Special Equity Fund, and is a Principal of Royce & Associates, LLC, investment adviser for The Royce Funds.
Morningstar nominated managers based on their Fund''s long-term performance, fund assets and investment strategy consistency. Morningstar also looked for managers who "are great stewards of shareholders'' interests and who stay with their proven strategies rather than follow investing trends."
The Fund invests primarily in a limited number of stocks that may involve considerably more risk than a less concentrated portfolio because a decline in the value of any one of these stocks would cause the Fund''s overall value to decline to a greater degree. The Fund invests primarily in small- and micro-cap stocks, which may involve considerably more risk than investing in larger-cap stocks (Please see "Primary Risks for Fund Investors" in the prospectus). Past performance is no guarantee of future results. Distributor: Royce Fund Services, Inc. is a member of FINRA and the SIPC.
Contacts:
Royce & Associates, LLC
Joanne Newgard, 800-562-0880
