UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT
OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-03599
Name of Registrant: The Royce Fund
Address of Registrant: 1414 Avenue of the Americas
New York, NY 10019
Name and address of agent for service: | John E. Denneen, Esquire |
1414 Avenue of the Americas | |
New York, NY 10019 |
Registrant’s telephone number, including area code: (212) 486-1445
Date of fiscal year end: December 31
Date of reporting period: January 1, 2005 - June 30, 2005
Item 1: Reports to Shareholders
S E M I A N N U A L R E P O R T | |||||||
2005 | |||||||
Pennsylvania Mutual Fund Royce Micro-Cap Fund Royce Premier Fund Royce Low-Priced Stock Fund Royce Total Return Fund Royce TrustShares Fund Royce Opportunity Fund Royce Special Equity Fund Royce Select Fund Royce Value Fund Royce Value Plus Fund Royce Technology Value Fund Royce 100 Fund | |||||||
Royce Discovery Fund Royce Financial Services Fund | TheRoyceFund | ||||||
Royce Dividend Value Fund www.roycefunds.com | VALUE INVESTING IN SMALL COMPANIES FOR MORE THAN 30 YEARS |
INVESTMENT UNIVERSE | ||
For more than 30 years, Royce & Associates has utilized a disciplined value approach to invest in smaller companies. Our universe is comprised of three markets: micro-, small- and mid-cap companies.(Segments representing more than 20% of a Fund’s assets are indicated in the table below. Source: FactSet.) Micro-Cap—Market Caps less than $500 million The micro-cap segment is comprised of approximately 5,800 companies with more than $603 billion in total capitalization. It offers many choices, but faces significant trading difficulties, including limited trading volumes and higher volatility. Small-Cap—Market Caps between $500 million and $2.5 billion The small-cap segment encompasses approximately 1,700 companies with a total capitalization of more than $2.0 trillion. It is more efficient, offering greater trading volumes and narrower bid/ask spreads. Mid-Cap—Market Caps between $2.5 billion and $5 billion The mid-cap segment includes approximately 460 companies with more than $1.6 trillion in total capitalization. It includes companies that generally are more established businesses that attract greater institutional interest and therefore enjoy greater liquidity. | ||
PORTFOLIO APPROACH | ||
Funds are diversified according to our view of the attendant risks within each portfolio’s investment universe and approach. A Fund investing primarily in micro-caps, for example, will generally hold relatively smaller positions in a larger number of securities, while a small- or mid-cap oriented Fund will typically hold larger positions in a relatively limited number of securities. Diversified A Royce diversified portfolio is one that holds more than 100 securities and whose top positions generally do not exceed 2% of net assets. Limited A Royce limited portfolio is one that either (i) invests in no more than 100 companies, and whose top positions generally exceed 2% of net assets, or (ii) invests primarily in a single sector. | ||
VOLATILITY | ||
Each Fund’s volatility is measured using Morningstar’s Overall Risk Ratio, which measures variations in a Fund’s monthly returns with an emphasis on downside performance. The Overall Risk Ratio is a weighted combination of a Fund’s three-, five- and 10-year scores, if applicable. Each Fund’s results reflect its score compared against all small-cap objective funds tracked by Morningstar with at least three years of history (395 funds as of 6/30/05). We consider Funds whose results rank in the top third of the category to have relatively low volatility; those in the middle third to have moderate volatility, and those in the bottom third to have high volatility. |
CURRENT PORTFOLIO CHARACTERISTICS | ||||||||||||
Portfolio Composition (as of 6/30/05) * | Portfolio Approach | Volatility (as of 6/30/05) | ||||||||||
Fund Name | Micro | Small | Mid | Limited | Diversified | Low | Moderate | High | ||||
Pennsylvania Mutual | n | n | n | n | ||||||||
Royce Micro-Cap | n | n | n | |||||||||
Royce Premier | n | n | n | n | ||||||||
Royce Low-Priced Stock | n | n | n | n | ||||||||
Royce Total Return | n | n | n | n | ||||||||
Royce TrustShares | n | n | n | n | ||||||||
Royce Opportunity | n | n | n | n | ||||||||
Royce Special Equity | n | n | n | n | ||||||||
Royce Select | n | n | n | |||||||||
Royce Value | n | n | n | |||||||||
Royce Value Plus | n | n | n | n | ||||||||
Royce Technology Value | n | n | n | — | — | — | ||||||
Royce 100 | n | n | — | — | — | |||||||
Royce Discovery | n | n | — | — | — | |||||||
Royce Financial Services | n | n | n | n | — | — | — | |||||
Royce Dividend Value | n | n | n | — | — | — | ||||||
* A larger n indicates where a Fund’s Weighted Average Market Capitalization falls. |
TABLE OF CONTENTS | ||
Performance Table | 2 | |
Letter to Our Shareholders | 3 | |
Performance and Portfolio Reviews: | ||
Pennsylvania Mutual Fund, Royce Micro-Cap Fund, Royce Premier Fund, Royce Low-Priced Stock Fund, Royce Total Return Fund, Royce TrustShares Fund, Royce Opportunity Fund, Royce Special Equity Fund, Royce Select Fund, Royce Value Fund, Royce Value Plus Fund, Royce Technology Value Fund, Royce 100 Fund, Royce Discovery Fund, Royce Financial Services Fund and Royce Dividend Value Fund | 4 | |
Schedules of Investments: | ||
Pennsylvania Mutual Fund | 20 | |
Royce Micro-Cap Fund | 23 | |
Royce Premier Fund | 26 | |
Royce Low-Priced Stock Fund | 27 | |
Royce Total Return Fund | 30 | |
Royce TrustShares Fund | 36 | |
Royce Opportunity Fund | 38 | |
Royce Special Equity Fund | 42 | |
Royce Select Fund | 44 | |
Royce Value Fund | 45 | |
Royce Value Plus Fund | 47 | |
Royce Technology Value Fund | 49 | |
Royce 100 Fund | 50 | |
Royce Discovery Fund | 52 | |
Royce Financial Services Fund | 54 | |
Royce Dividend Value Fund | 55 | |
Statements of Assets and Liabilities | 58 | |
Statements of Changes in Net Assets | 62 | |
Statements of Operations | 68 | |
Financial Highlights | 70 | |
Notes to Financial Statements | 76 | |
Understanding Your Fund’s Expenses | 82 | |
Notes to Performance and Other Important Information | 84 | |
Board Approval of Investment Advisory Agreements | 85 | |
PERFORMANCE TABLE | ||||||||||||||||||||||
AVERAGE ANNUAL TOTAL RETURNS Through June 30, 2005 | ||||||||||||||||||||||
10-year/Since | ||||||||||||||||||||||
FUND | Jan-Jun1 | 1-Year | 3-Year | 5-Year | Inception (Date) | |||||||||||||||||
Pennsylvania Mutual Fund2 | 2.56 | % | 13.94 | % | 14.91 | % | 15.60 | % | 13.88 | % | ||||||||||||
Royce Micro-Cap Fund2 | -3.31 | 5.12 | 12.50 | 13.63 | 13.65 | |||||||||||||||||
Royce Premier Fund2 | -0.20 | 8.53 | 16.56 | 14.04 | 13.32 | |||||||||||||||||
Royce Low-Priced Stock Fund | -4.04 | 3.14 | 10.31 | 12.33 | 15.27 | |||||||||||||||||
Royce Total Return Fund2 | 1.47 | 12.10 | 13.09 | 15.15 | 14.38 | |||||||||||||||||
-5.00 | 2.39 | 11.61 | 9.88 | 17.47 | 12/27/95 | |||||||||||||||||
Royce Opportunity Fund2 | -3.31 | 6.11 | 16.33 | 14.13 | 17.61 | 11/19/96 | ||||||||||||||||
Royce Special Equity Fund2 | -2.29 | 2.25 | 11.10 | 18.74 | 10.88 | 5/1/98 | ||||||||||||||||
Royce Select Fund3 | -2.79 | 4.13 | 15.83 | 13.94 | 18.22 | 11/18/98 | ||||||||||||||||
Royce Value Fund | 2.03 | 17.64 | �� | 23.76 | n/a | 16.88 | 6/14/01 | |||||||||||||||
Royce Value Plus Fund | -5.39 | 6.71 | 23.89 | n/a | 22.31 | 6/14/01 | ||||||||||||||||
Royce Technology Value Fund | -8.47 | -12.86 | 15.87 | n/a | 9.32 | 12/31/01 | ||||||||||||||||
Royce 100 Fund | 0.29 | 12.37 | n/a | n/a | 18.81 | 6/30/03 | ||||||||||||||||
Royce Discovery Fund | -1.41 | 6.52 | n/a | n/a | 14.91 | 10/3/03 | ||||||||||||||||
Royce Financial Services Fund | -1.24 | 12.53 | n/a | n/a | 8.92 | 12/31/03 | ||||||||||||||||
Royce Dividend Value Fund | -1.24 | 10.94 | n/a | n/a | 9.94 | 5/3/04 | ||||||||||||||||
Russell 2000 | -1.25 | 9.45 | 12.81 | 5.71 | 9.91 | |||||||||||||||||
1 Not annualized. | ||||||||||||||||||||||
2 All performance, risk and expense information reflects Investment Class results. Shares of the Funds’ Consultant Class, and/or Financial Intermediary Class bear an annual distribution expense that is not borne by or is higher than the Funds’ Investment Class shares. | ||||||||||||||||||||||
3 The one-year results for Royce TrustShares and Select Funds are adjusted to reflect the 2% fee assessed on redemptions of shares held for less than three years. | ||||||||||||||||||||||
Pennsylvania Mutual Fund’s average annual total return for the 30-year period ended 6/30/05 was 15.95%. | ||||||||||||||||||||||
IMPORTANT PERFORMANCE AND RISK INFORMATION | ||||||||||||||||||||||
All performance information in this Report reflects past performance, is presented on a total return basis and reflects the reinvestment of distributions. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, so that shares may be worth more or less than their original cost when redeemed. Current performance may be higher or lower than performance quoted. Current month-end performance may be obtained at www.roycefunds.com. The Royce Funds invest primarily in securities of small-cap and/or micro-cap companies, which may involve considerably more risk than investments in securities of larger-cap companies (see “Primary Risks for Fund Investors” in the respective prospectus). Please read the prospectus carefully before investing or sending money. | ||||||||||||||||||||||
2 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | ||||||||||||||||||||||
LETTER TO OUR SHAREHOLDERS Dear Shareholder, In 2005’s first half, large- and small-cap stocks mirrored a performance pattern established in 2004 in which large-cap led during negative return periods, while small-cap drove returns in upswings. The large-cap S&P 500 outperformed the Russell 2000 from January through April, while the small-cap index was ahead in the rally that began after the late April market lows and was still pushing prices upward as of 6/30/05. However, strong performance in the rally could not move the Russell 2000 ahead of the S&P 500 for the year-to-date period ended 6/30/05: The Russell 2000 was down 1.3% versus a decline of 0.8% for the S&P 500, and a greater loss of 5.5% for the Nasdaq Composite. In 2003, micro-cap companies enjoyed a terrific year. The following year, high returns came primarily from larger small-cap stocks. No discernible pattern has yet emerged in 2005, as evidenced by The Royce Funds’ mixed year-to-date results. Energy stocks were the clear-cut winners in the small-cap universe through the end of June, though some Royce-managed portfolios with relatively low weightings in the industry, such as Royce Total Return and Financial Services Funds, turned in solid performances just the same. In each of The Royce Funds’ portfolios discussed within, holdings outside the energy industry generally produced modest gains or lost value, though there were a few notable exceptions. As a result, some portfolios struggled a bit in the short and intermediate terms, which can be seen in first-half and one-year returns. Seven of the 16 funds covered in this book beat the Funds’ small-cap benchmark, the Russell 2000, for the year-to-date period ended 6/30/05. Six funds - Pennsylvania Mutual, Royce Total Return, Royce Value, Royce 100, Royce Financial Services and Royce Dividend Value Funds - outperformed the small-cap index for the one-year period as well. Results for periods of three years or longer were solid (if not strong) on a relative basis and very strong on an absolute basis. Of the 12 funds with three or more years of history, all had double-digit average annual total returns for the three-year period ended 6/30/05, and eight were ahead of the benchmark for the three-year period ended 6/30/05: The previously mentioned Pennsylvania Mutual, Royce Total Return and Royce Value Funds were joined by Royce Premier, Opportunity, Select, Value Plus and Technology Value Funds (Royce 100, Discovery, Financial Services and Dividend Value Funds did not have three years of history at June 30). All of The Royce Funds with sufficient history beat the Russell 2000 for the five- and 10-year periods ended 6/30/05. The news was good from a market cycle standpoint as well: Each of The Royce Funds then in existence outperformed the small-cap index from its peak on 3/9/00 through 6/30/05. We appreciate your continued support. | For more than 30 years, we have used various value approaches to invest in smaller-cap securities. We focus primarily on the quality of a company’s balance sheet, its ability to generate free cash flow and other measures of profitability or sound financial condition. At times, we may also look at other factors, such as a company’s unrecognized asset values, its future growth prospects or its turnaround potential following an earnings disappointment or other business difficulties. We then use these factors to assess the company’s current worth, basing the assessment on either what we believe a knowledgeable buyer might pay to acquire the entire company, or what we think the value of the company should be in the stock market. |
Sincerely,
Charles M. Royce
President
July 31, 2005
THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 3 |
PENNSYLVANIA MUTUAL FUND† | |||||||||||||||||
AVERAGE ANNUAL TOTAL RETURNS Through 6/30/05 | Manager’s Discussion Our flagship fund successfully navigated the rough seas of 2005’s first half. Pennsylvania Mutual Fund (PMF) finished the year-to-date period ended 6/30/05 with a return of 2.6%, ahead of its small-cap benchmark, the Russell 2000, which lost 1.3% for the same period. The Fund managed this feat with a combination of relatively strong quarterly performances, especially on the downside. In the dismal first quarter, PMF was down 0.7% (versus a decline of 5.3% for the Russell 2000), while in the second-quarter uptick the Fund gained 3.3%, trailing the Russell 2000’s 4.3% result. Over long-term and market cycle periods, the news was equally good, with the performance pattern of terrific down market performance and competitive up market returns holding true. PMF significantly outpaced the Russell 2000 from the small-cap market peak on 3/9/00 through 6/30/05, 115.6% versus 13.0%. From the small-cap market trough on 10/9/02 through 6/30/05, PMF was up 99.8%, while its benchmark was up 102.3% The Fund outperformed the Russell 2000 for the one-, three-, five-, 10-, 15-, 20- and 25-year periods ended 6/30/05. PMF’s 30-year average annual total return for the period ended 6/30/05 was 16.0%, a long-term accomplishment that gives us great pride. As was the case in 2004, gains in the first half of 2005 were dominated by portfolio holdings in Health, which led all the Fund’s sectors on a dollar basis, and Natural Resources. Within Health, two industries suffered losses while three others shined. We took advantage of rising prices by taking gains in healthcare products maker CNS, multiple health-related services provider Horizon Health, and pharmaceutical and nutritional products manufacturer Hi-Tech Pharmacal. We also enjoyed sucess with three top performers in the Natural Resources sector, energy services companies Trican Well Service and Patterson-UTI Energy, and natural gas and oil company, St. Mary Land & Exploration Company. Although the Consumer Products and Technology sectors showed the most significant net losses in the first half, companies both in the red and the black could be found throughout the portfolio. Falling prices led us to increase our position in eFunds Corporation, as it struggled to integrate a new acquisition. Since first buying shares in 2002, we have admired the fundamentals and management of the company, which provides multiple financial services, including risk management, electronic transaction processing and ATM management. We also built our stake in kitchen cabinet and bathroom vanity manufacturer American Woodmark. Includes reinvestment of distributions. † All performance and risk information for PMF reflects Investment Class results. Shares of PMF’s Consultant Class bear an annual distribution expense that is not borne by the Investment Class. All performance information in this Report reflects past performance, is presented on a total return basis and reflects the reinvestment of distributions. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, so that shares may be worth more or less than their original cost when redeemed. Current performance may be higher or lower than performance quoted. Current month-end performance may be obtained at www.roycefunds.com. | ||||||||||||||||
January - June 2005* | 2.56 | % | |||||||||||||||
1-Year | 13.94 | ||||||||||||||||
3-Year | 14.91 | ||||||||||||||||
5-Year | 15.60 | ||||||||||||||||
10-Year | 13.88 | ||||||||||||||||
20-Year | 12.76 | ||||||||||||||||
25-Year | 14.86 | ||||||||||||||||
30-Year | 15.95 | ||||||||||||||||
* | Not annualized. | ||||||||||||||||
CALENDAR YEAR TOTAL RETURNS | |||||||||||||||||
Year | PMF | Year | PMF | ||||||||||||||
2004 | 20.2 | % | 1996 | 12.8 | % | ||||||||||||
2003 | 40.3 | 1995 | 18.7 | ||||||||||||||
2002 | -9.2 | 1994 | -0.7 | ||||||||||||||
2001 | 18.4 | 1993 | 11.3 | ||||||||||||||
2000 | 18.4 | 1992 | 16.2 | ||||||||||||||
1999 | 6.0 | 1991 | 31.8 | ||||||||||||||
1998 | 4.2 | 1990 | -11.5 | ||||||||||||||
1997 | 25.0 | 1989 | 16.7 | ||||||||||||||
TOP 10 POSITIONS (% of Net Assets) | |||||||||||||||||
Unit Corporation | 1.2 | % | |||||||||||||||
St. Mary Land & Exploration Company | 1.2 | ||||||||||||||||
Buckle (The) | 1.2 | ||||||||||||||||
Florida Rock Industries | 1.2 | ||||||||||||||||
Ensign Energy Services | 1.1 | ||||||||||||||||
Ethan Allen Interiors | 1.0 | ||||||||||||||||
Endurance Specialty Holdings | 1.0 | ||||||||||||||||
Endo Pharmaceuticals Holdings | 1.0 | ||||||||||||||||
Nu Skin Enterprises Cl. A | 1.0 | ||||||||||||||||
Trican Well Service | 1.0 | ||||||||||||||||
PORTFOLIO SECTOR BREAKDOWN % of Net Assets | |||||||||||||||||
Natural Resources | 14.0 | % | |||||||||||||||
Consumer Products | 13.4 | ||||||||||||||||
Technology | 11.5 | ||||||||||||||||
Health | 10.9 | ||||||||||||||||
Industrial Products | 10.9 | ||||||||||||||||
Consumer Services | 9.4 | ||||||||||||||||
Financial Intermediaries | 8.9 | ||||||||||||||||
Industrial Services | 3.6 | ||||||||||||||||
Financial Services | 2.7 | ||||||||||||||||
Miscellaneous | 1.4 | ||||||||||||||||
Cash and Cash Equivalents | 13.3 |
4 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 |
ROYCE MICRO-CAP FUND† | |||||||||||||||||
Manager’s Discussion The last 18 months have not been especially kind to micro-cap companies, an observation unfortunately borne out by the recent performance of Royce Micro-Cap Fund (RMC). The Fund endured an unspectacular first half, down 3.3% for the year-to-date period ended 6/30/05, trailing its small-cap benchmark, the Russell 2000, which lost 1.3% for the same period. The Fund fared relatively well in the bearish first quarter (though “relatively” would be the key word), losing 3.8%, while the Russell 2000 posted a loss of 5.3%. However, in the widespread rally that began on 4/28/05, RMC lost ground, resulting in a diminutive second-quarter return of 0.5%, versus a 4.3% gain for the benchmark. Looking at recent market cycle periods, the picture begins to brighten. The Fund beat its benchmark for the period from the small-cap market peak on 3/9/00 through 6/30/05, up 87.2% versus 13.0%. From the small-cap market trough on 10/9/02 through 6/30/05, RMC was up 102.4%, while its benchmark was up 102.3%. The Fund also held a performance edge over the Russell 2000 for the five-year, 10-year and since inception (12/31/91) periods ended 6/30/05. RMC’s average annual total return since inception was 15.0%. Losses could be found throughout the portfolio, although as a group the Fund’s Technology holdings suffered most in the first half, especially those in the components and systems industry; within the Health sector, biotech stocks posted the greatest losses on a dollar basis. Positions that lost money can generally be divided into two groups, those whose ongoing decline in value (along with other issues) led us to sell off or greatly reduce our stake and those whose negative results we regard as short-term. Among the latter group we would include biotech firm Lexicon Genetics. The company uses proprietary gene knockout technology to treat disease. We liked both its new business partnerships and its progress toward new treatments enough to hold a good-sized position at June 30. We also increased our stake in Zila as its price slipped. We liked its low debt as well as its nutritional and pharmaceutical products and biotech businesses. We were less sanguine about the long-term prospects for Able Laboratories, especially after the FDA forced a recall of its (mostly prescription) drug line, a move that led us to sell our position in June. Holdings with sizeable gains were clustered mostly in the retail, oil and gas, and energy services industry. We trimmed our position in The Buckle, a casual clothing retailer that focuses on younger people. A stock that we have liked since first buying shares in 1994, the company’s stock price benefited in the first half from strong same-store sales and a robust market for jeans. Includes reinvestment of distributions. †All performance and risk information for RMC reflects Investment Class results. Shares of RMC’s Consultant and Financial Intermediary Classes bear an annual distribution expense that is not borne by the Investment Class. All performance information in this Report reflects past performance, is presented on a total return basis and reflects the reinvestment of distributions. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, so that shares may be worth more or less than their original cost when redeemed. Current performance may be higher or lower than performance quoted. Current month-end performance may be obtained at www.roycefunds.com. | AVERAGE ANNUAL TOTAL RETURNS Through 6/30/05 | ||||||||||||||||
January - June 2005* | -3.31% | ||||||||||||||||
1-Year | 5.12 | ||||||||||||||||
3-Year | 12.50 | ||||||||||||||||
5-Year | 13.63 | ||||||||||||||||
10-Year | 13.65 | ||||||||||||||||
Since Inception (12/31/91) | 15.04 | ||||||||||||||||
* Not annualized. | |||||||||||||||||
CALENDAR YEAR TOTAL RETURNS | |||||||||||||||||
Year | RMC | Year | RMC | ||||||||||||||
2004 | 15.8% | 1997 | 24.7% | ||||||||||||||
2003 | 52.6 | 1996 | 15.5 | ||||||||||||||
2002 | -13.4 | 1995 | 19.1 | ||||||||||||||
2001 | 23.1 | 1994 | 3.6 | ||||||||||||||
2000 | 16.7 | 1993 | 23.7 | ||||||||||||||
1999 | 13.7 | 1992 | 29.4 | ||||||||||||||
1998 | -3.3 | ||||||||||||||||
TOP 10 POSITIONS (% of Net Assets) | |||||||||||||||||
Exponent | 1.3% | ||||||||||||||||
Dawson Geophysical | 1.3 | ||||||||||||||||
Pason Systems | 1.2 | ||||||||||||||||
Tesco Corporation | 1.2 | ||||||||||||||||
Drew Industries | 1.2 | ||||||||||||||||
Northern Orion Resources | 1.1 | ||||||||||||||||
Buckle (The) | 1.1 | ||||||||||||||||
Argonaut Group | 1.0 | ||||||||||||||||
Gulf Island Fabrication | 1.0 | ||||||||||||||||
Western Silver | 1.0 | ||||||||||||||||
| |||||||||||||||||
PORTFOLIO SECTOR BREAKDOWN % of Net Assets | |||||||||||||||||
Natural Resources | 19.2% | ||||||||||||||||
Technology | 15.2 | ||||||||||||||||
Health | 15.0 | ||||||||||||||||
Industrial Products | 10.9 | ||||||||||||||||
Industrial Services | 7.8 | ||||||||||||||||
Financial Intermediaries | 6.1 | ||||||||||||||||
Consumer Services | 5.7 | ||||||||||||||||
Consumer Products | 2.8 | ||||||||||||||||
Financial Services | 1.2 | ||||||||||||||||
Miscellaneous | 4.7 | ||||||||||||||||
Cash and Cash Equivalents | 11.4 | ||||||||||||||||
| |||||||||||||||||
THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 5 |
ROYCE PREMIER FUND† | ||||||||||||||||||
AVERAGE ANNUAL TOTAL RETURNS Through 6/30/05 | Managers’ Discussion Although the kind of high-quality small-cap securities that we seek for Royce Premier Fund’s (RPR) portfolio came back strong in 2004, their first half results in 2005 were as ho-hum as much of the rest of the market. RPR was down 0.2% for the year-to-date period ended 6/30/05, besting its small-cap benchmark, the Russell 2000, which declined 1.3% during the same period. The Fund slogged through the difficult first quarter with a loss of 2.6%, though this was less than half of what its benchmark gave back with a loss of 5.3%. Yet second-quarter results for the Russell 2000, with its 4.3% return, more fully reflected the recovery in equity prices that began in late April, while RPR turned in a relatively underwhelming 2.4%. The Fund’s returns over recent market cycle and other long-term periods were more notable. From the small-cap market peak on 3/9/00 through 6/30/05, RPR outperformed the Russell 2000, 97.5% versus 13.0%. The Fund was also very competitive from the small-cap market trough on 10/9/02 through 6/30/05. RPR gained 99.2% during this period, narrowly trailing its small-cap benchmark’s return of 102.3%. RPR outperformed the Russell 2000 for the three-, five-, 10-year and since inception (12/31/91) periods ended 6/30/05. The Fund’s average annual total return since inception was 13.6%. Depressed share prices provided several opportunities to build positions for which we had high regard. Dycom Industries provides contract engineering and construction services for the telecommunications and cable industries. In May, the firm forecasted reduced fiscal fourth-quarter revenues (to end on 7/31/05), which caused its stock to remain mostly underwater through the remainder of the first half. We added to our stake throughout the first half. Sixteen months of negative same-store sales left few investors lining up for home goods retailer Pier 1 Imports. We liked the firm’s plans to turn its business around and thus bought more shares between February and early June. Our confidence extended to air-freight, transportation and supply-chain management business EGL, and to scrap metal and recycling business Schnitzer Steel Industries, both of whose businesses met with what we anticipate will be short-term difficulties. On the plus side, we trimmed our position in top holding, fast-growing Trican Well Service, whose businesses include piping and drilling equipment and oil well completion and maintenance services. We also continued to hold a large stake in Endo Pharmaceuticals Holdings. Its price soared in early June when a federal appeals court upheld an earlier decision that allowed the firm to sell a generic version of the painkiller Oxycontin. Includes reinvestment of distributions. †All performance and risk information for RPR reflects Investment Class results. Shares of RPR’s Consultant and Financial Intermediary Classes bear an annual distribution expense that is not borne by the Investment Class. All performance information in this Report reflects past performance, is presented on a total return basis and reflects the reinvestment of distributions. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, so that shares may be worth more or less than their original cost when redeemed. Current performance may be higher or lower than performance quoted. Current month-end performance may be obtained at www.roycefunds.com. | |||||||||||||||||
January - June 2005* | -0.20 | % | ||||||||||||||||
1-Year | 8.53 | |||||||||||||||||
3-Year | 16.56 | |||||||||||||||||
5-Year | 14.04 | |||||||||||||||||
10-Year | 13.32 | |||||||||||||||||
Since Inception (12/31/91) | 13.64 | |||||||||||||||||
* | Not annualized. | |||||||||||||||||
CALENDAR YEAR TOTAL RETURNS | ||||||||||||||||||
Year | RPR | Year | RPR | |||||||||||||||
2004 | 22.8 | % | 1997 | 18.4 | % | |||||||||||||
2003 | 38.7 | 1996 | 18.1 | |||||||||||||||
2002 | -7.8 | 1995 | 17.8 | |||||||||||||||
2001 | 9.6 | 1994 | 3.3 | |||||||||||||||
2000 | 17.1 | 1993 | 19.0 | |||||||||||||||
1999 | 11.5 | 1992 | 15.8 | |||||||||||||||
1998 | 6.7 | |||||||||||||||||
TOP 10 POSITIONS (% of Net Assets) | ||||||||||||||||||
Trican Well Service | 3.4 | % | ||||||||||||||||
Endo Pharmaceuticals Holdings | 3.2 | |||||||||||||||||
Ensign Energy Services | 3.0 | |||||||||||||||||
Lincoln Electric Holdings | 2.7 | |||||||||||||||||
Nu Skin Enterprises Cl. A | 2.7 | |||||||||||||||||
Alleghany Corporation | 2.7 | |||||||||||||||||
IPSCO | 2.6 | |||||||||||||||||
Simpson Manufacturing | 2.5 | |||||||||||||||||
Timberland Company Cl. A | 2.4 | |||||||||||||||||
Glamis Gold | 2.4 | |||||||||||||||||
PORTFOLIO SECTOR BREAKDOWN % of Net Assets | ||||||||||||||||||
Industrial Products | 14.8 | % | ||||||||||||||||
Natural Resources | 14.8 | |||||||||||||||||
Technology | 12.0 | |||||||||||||||||
Consumer Products | 11.9 | |||||||||||||||||
Financial Intermediaries | 8.6 | |||||||||||||||||
Health | 8.4 | |||||||||||||||||
Consumer Services | 7.0 | |||||||||||||||||
Industrial Services | 6.1 | |||||||||||||||||
Financial Services | 2.5 | |||||||||||||||||
Miscellaneous | 0.5 | |||||||||||||||||
Cash and Cash Equivalents | 13.4 |
6 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 |
ROYCE LOW-PRICED STOCK FUND | |||||||||||||||||
Manager’s Discussion Robert Frost once mused, “Something there is that doesn’t love a wall.” Maybe it’s the same something that hasn’t loved low-priced stocks over the last three years, as many of them have collectively hit a wall that has held back performance. Royce Low-Priced Stock Fund (RLP) had a disappointing first half, its loss of 4.0% for the year-to-date period ended 6/30/05 putting it behind its small-cap benchmark, the Russell 2000, which was down 1.3% for the same period. RLP made it through the first quarter with modest losses, and its return of -4.6%, though certainly nothing to brag about, was slightly better than the Russell 2000’s decline of 5.3%. Where the Fund lost its way, as it were, was in the stock market rebound that began on 4/28/05. RLP’s inability to participate to a greater degree in the up-market months of May and June led to a second-quarter underperformance versus the benchmark, up 0.6% versus a gain of 4.3% for the Russell 2000. The one grace note in RLP’s recent results was its ongoing strength in longer-term and market cycle periods ended 6/30/05. The Fund impressively outperformed its benchmark from the small-cap market peak on 3/9/00, 93.8% versus 13.0%. RLP was also ahead of the Russell 2000 for the five-year, 10-year and since inception (12/15/93) periods ended 6/30/05. The Fund’s average annual total return for the since inception period ended 6/30/05 was 15.0%. After leading the small-cap market in 2004, energy stocks again were small-cap’s best performers in 2005’s first half. Oil and gas, and energy services stocks mostly posted terrific results in RLP’s portfolio as well. Unfortunately, their gains were offset by losses in precious metals and mining companies to the degree that the Natural Resources sector as a whole made only a marginal positive contribution to the Fund’s year-to-date returns. We held large stakes in several precious metals and mining businesses at June 30, confident in the long-term prospects for the industry. Among other companies that lost money in the first half, we also held a large position in eFunds Corporation, which provides multiple financial services, including risk management, electronic transaction processing and ATM management, based on our high opinion of its fundamentals and management. In two notable instances, share prices declined to levels that made additional purchases attractive when combined with our regard for each firm’s core business: We built our position in Dycom Industries, which provides contract engineering and construction services for telecommunications and cable companies, and in Insituform Technologies, which uses proprietary technologies to repair, replace, maintain and install underground pipes. Includes reinvestment of distributions. All performance information in this Report reflects past performance, is presented on a total return basis and reflects the reinvestment of distributions. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, so that shares may be worth more or less than their original cost when redeemed. Current performance may be higher or lower than performance quoted. Current month-end performance may be obtained at www.roycefunds.com. | AVERAGE ANNUAL TOTAL RETURNS Through 6/30/05 | ||||||||||||||||
January - June 2005* | -4.04% | ||||||||||||||||
1-Year | 3.14 | ||||||||||||||||
3-Year | 10.31 | ||||||||||||||||
5-Year | 12.33 | ||||||||||||||||
10-Year | 15.27 | ||||||||||||||||
Since Inception (12/15/93) | 15.00 | ||||||||||||||||
* Not annualized. | |||||||||||||||||
CALENDAR YEAR TOTAL RETURNS | |||||||||||||||||
Year | RLP | Year | RLP | ||||||||||||||
2004 | 13.6% | 1998 | 2.4% | ||||||||||||||
2003 | 44.0 | 1997 | 19.5 | ||||||||||||||
2002 | -16.3 | 1996 | 22.8 | ||||||||||||||
2001 | 25.1 | 1995 | 22.5 | ||||||||||||||
2000 | 24.0 | 1994 | 3.0 | ||||||||||||||
1999 | 29.8 | ||||||||||||||||
TOP 10 POSITIONS (% of Net Assets) | |||||||||||||||||
Endo Pharmaceuticals Holdings | 2.0% | ||||||||||||||||
Unit Corporation | 1.9 | ||||||||||||||||
Nu Skin Enterprises Cl. A | 1.9 | ||||||||||||||||
Ensign Energy Services | 1.9 | ||||||||||||||||
Meridian Gold | 1.9 | ||||||||||||||||
Glamis Gold | 1.9 | ||||||||||||||||
Perot Systems Cl. A | 1.7 | ||||||||||||||||
IPSCO | 1.6 | ||||||||||||||||
eFunds Corporation | 1.6 | ||||||||||||||||
Transaction Systems | 1.6 | ||||||||||||||||
| |||||||||||||||||
PORTFOLIO SECTOR BREAKDOWN % of Net Assets | |||||||||||||||||
Natural Resources | 19.5% | ||||||||||||||||
Technology | 17.0 | ||||||||||||||||
Health | 11.8 | ||||||||||||||||
Consumer Services | 10.5 | ||||||||||||||||
Consumer Products | 10.1 | ||||||||||||||||
Industrial Products | 7.8 | ||||||||||||||||
Industrial Services | 6.3 | ||||||||||||||||
Financial Intermediaries | 4.9 | ||||||||||||||||
Financial Services | 1.6 | ||||||||||||||||
Miscellaneous | 2.3 | ||||||||||||||||
Cash and Cash Equivalents | 8.2 | ||||||||||||||||
| |||||||||||||||||
THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 7 |
ROYCE TOTAL RETURN FUND† | ||||||||||||||||||
AVERAGE ANNUAL TOTAL RETURNS Through 6/30/05 | Manager’s Discussion Dividend-paying companies may never become the next big trend in investing, but in our admittedly biased opinion, they are classics that never go out of style. Royce Total Return Fund (RTR) gained 1.5% in the year-to-date period ended 6/30/05, outperforming its small-cap benchmark, the Russell 2000, which was down 1.3% for the same period. The Fund’s solid first half was the result of relatively strong performance in the down market of the first quarter (-1.1% versus -5.3% for the Russell 2000) and competitive results in the more bullish second quarter (+2.6 versus +4.3% for the benchmark). RTR’s recent market cycle returns expand on this model of strong down-period returns combined with solid up-market results. From the small-cap market peak on 3/9/00 through 6/30/05, the Fund significantly outpaced the Russell 2000, 115.4% versus 13.0%. RTR trailed the benchmark from the small-cap market trough on 10/9/02 through 6/30/05, though it gained a respectable 76.5% in that time span versus a 102.3% return for the small-cap index. The Fund also outperformed the Russell 2000 for the one-, three-, five-, 10-year and since inception (12/15/93) periods ended 6/30/05. RTR’s average annual total return since inception was 14.1%. Results for many of the Fund’s industrial-based holdings that helped to elevate performance in 2004 cooled off in the first half of 2005, though there were a few happy exceptions, including the portfolio’s number-one gainer on a dollar basis, Seaboard Corporation, which occupied the same position in 2004. After faltering somewhat during April, the price of this pork processing and shipping business recovered in May, when we took some gains. Energy stocks once again led small-cap performance in the market as a whole and in the Fund. Unfortunately, few other sectors were able to follow. Lufkin Industries, which manufactures oil field, power transmission and trailer products, is a company that we repurchased in RTR’s portfolio back in 1999. Its price rose slowly but steadily from early 2003 before gushing through the end of 2005’s second quarter. As with Seaboard Corporation, we trimmed our position in May. Holdings in the Technology and Consumer Products sectors showed the largest losses on a dollar basis. The share price of gift product and collectibles manufacturer Russ Berrie & Company continued to fall as sales slipped. Nonetheless, we added to our position in the first half because our confidence in the firm’s ability to right itself remained strong. Disappointing earnings over two consecutive quarters have driven investors away from Black Box, a firm that provides various network and wireless services, but we liked its core businesses enough to add to our position in the first half. Includes reinvestment of distributions. †All performance and risk information for RTR reflects Investment Class results. Shares of RTR’s Consultant and Financial Intermediary Classes bear an annual distribution expense that is not borne by the Investment Class. All performance information in this Report reflects past performance, is presented on a total return basis and reflects the reinvestment of distributions. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, so that shares may be worth more or less than their original cost when redeemed. Current performance may be higher or lower than performance quoted. Current month-end performance may be obtained at www.roycefunds.com. | |||||||||||||||||
January - June 2005* | 1.47 | % | ||||||||||||||||
1-Year | 12.10 | |||||||||||||||||
3-Year | 13.09 | |||||||||||||||||
5-Year | 15.15 | |||||||||||||||||
10-Year | 14.38 | |||||||||||||||||
Since Inception (12/15/93) | 14.14 | |||||||||||||||||
* | Not annualized. | |||||||||||||||||
CALENDAR YEAR TOTAL RETURNS | ||||||||||||||||||
Year | RTR | Year | RTR | |||||||||||||||
2004 | 17.5 | % | 1998 | 4.8 | % | |||||||||||||
2003 | 30.0 | 1997 | 23.7 | |||||||||||||||
2002 | -1.6 | 1996 | 25.5 | |||||||||||||||
2001 | 14.8 | 1995 | 26.9 | |||||||||||||||
2000 | 19.4 | 1994 | 5.1 | |||||||||||||||
1999 | 1.6 | |||||||||||||||||
TOP 10 POSITIONS (% of Net Assets) | ||||||||||||||||||
Canadian Government Bonds | 2.0 | % | ||||||||||||||||
Alliance Capital Management Holding L.P. | 1.2 | |||||||||||||||||
Vornado Realty Trust | 0.7 | |||||||||||||||||
Nuveen Investments Cl. A | 0.6 | |||||||||||||||||
TSX Group | 0.6 | |||||||||||||||||
Federated Investors Cl. B | 0.6 | |||||||||||||||||
CLARCOR | 0.6 | |||||||||||||||||
Commerce Group | 0.6 | |||||||||||||||||
Alleghany Corporation | 0.6 | |||||||||||||||||
Seaboard Corporation | 0.5 | |||||||||||||||||
PORTFOLIO SECTOR BREAKDOWN % of Net Assets | ||||||||||||||||||
Industrial Products | 17.9 | % | ||||||||||||||||
Financial Intermediaries | 14.7 | |||||||||||||||||
Industrial Services | 9.9 | |||||||||||||||||
Natural Resources | 9.1 | |||||||||||||||||
Financial Services | 7.7 | |||||||||||||||||
Consumer Products | 6.2 | |||||||||||||||||
Consumer Services | 6.1 | |||||||||||||||||
Technology | 5.4 | |||||||||||||||||
Health | 4.4 | |||||||||||||||||
Utilities | 1.7 | |||||||||||||||||
Miscellaneous | 2.8 | |||||||||||||||||
Bonds and Preferred Stocks | 3.5 | |||||||||||||||||
Treasuries, Cash | 10.6 |
8 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 |
ROYCE TRUSTSHARES FUND† | |||||||||||||||||
Manager’s Discussion Too many holdings in Royce TrustShares Fund’s (RTS) limited portfolio of small- and micro-cap stocks have not been in a giving mood over the last several months. The Fund was down 5.0% in 2005’s first half, behind its small-cap benchmark, the Russell 2000, which declined 1.3% for the same period. The Fund’s performance year-to-date through 6/30/05 was disappointing regardless of how it compared to its benchmark. Our dissatisfaction was exacerbated by RTS’s struggles in the first four months of 2005, a bearish period in which we would typically expect to do better. As it happened, the Fund was down 6.9% in the first quarter and gained a relatively paltry 2.0% in the second. (The Russell 2000’s returns for these same periods were -5.3% and +4.3%.) RTS’s recent market cycle performances have fortunately been somewhat stronger than its recent short-term record. The Fund beat its benchmark for the period from the small-cap market peak on 3/9/00 through 6/30/05, up 61.9% versus 13.0%. RTS also gained 88.9% from the small-cap market trough on 10/9/02 through 6/30/05, a period in which the Russell 2000 was up 102.3% The Fund outperformed its benchmark for the five-year and since inception (12/27/95) periods ended 6/30/05. RTS’s average annual total return since inception was 17.5%. Although holdings in the Technology sector were the leading cause of negative returns, there were losses in all of the Fund’s sectors. Poor performance owed more to a larger number of companies losing money in a down market than it did to exceptionally difficult or catastrophic conditions in a particular sector or industry. In some cases, we added to existing positions, while in others we held on because declining prices did not create compelling bargains. There were also situations that led us to sell positions. In late January, pharmaceutical and specialty chemical distributor Aceto Corporation announced that its earnings would fall below initial expectations, a development that left its stock price tumbling through much of the first half, even following the announcement in May of record quarterly sales. We increased our position between January and April. The share price of aerospace components maker Lowrance Electronics declined in the face of disappointing earnings. We liked the firm’s balance sheet and cash flow enough to hold on to a good-sized stake at June 30. We had a different reaction to the more serious problems of Willbros Group. A long-time holding, the energy services company conducted an internal investigation that led to it restating results for 2002, 2003 and the first three quarters of 2004. We sold our shares in May. Includes reinvestment of distributions. †All performance and risk information for RTS reflects Investment Class results. Shares of the RTS’s Consultant Class bear an annual distribution expense that is higher than that of the Investment Class. All performance information in this Report reflects past performance, is presented on a total return basis and reflects the reinvestment of distributions. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, so that shares may be worth more or less than their original cost when redeemed. Current performance may be higher or lower than performance quoted. Current month-end performance may be obtained at www.roycefunds.com. | AVERAGE ANNUAL TOTAL RETURNS Through 6/30/05 | ||||||||||||||||
January - June 2005* | -5.00% | ||||||||||||||||
1-Year | 4.48 | ||||||||||||||||
1-Year (net)1 | 2.39 | ||||||||||||||||
3-Year | 11.61 | ||||||||||||||||
5-Year | 9.88 | ||||||||||||||||
Since Inception (12/27/95) | 17.47 | ||||||||||||||||
* | Not annualized. | ||||||||||||||||
| |||||||||||||||||
CALENDAR YEAR TOTAL RETURNS | |||||||||||||||||
Year | RTS | ||||||||||||||||
2004 | 20.4% | ||||||||||||||||
2003 | 38.1 | ||||||||||||||||
2002 | -18.9 | ||||||||||||||||
2001 | 20.5 | ||||||||||||||||
2000 | 11.7 | ||||||||||||||||
1999 | 41.8 | ||||||||||||||||
1998 | 19.5 | ||||||||||||||||
1997 | 26.0 | ||||||||||||||||
1996 | 25.6 | ||||||||||||||||
TOP 10 POSITIONS (% of Net Assets) | |||||||||||||||||
Alliance Capital Management Holding L.P. | 3.5% | ||||||||||||||||
Ritchie Bros. Auctioneers | 2.3 | ||||||||||||||||
E*TRADE Financial | 2.0 | ||||||||||||||||
Nuveen Investments Cl. A | 1.8 | ||||||||||||||||
Lincoln Electric Holdings | 1.8 | ||||||||||||||||
Morningstar | 1.8 | ||||||||||||||||
Rofin-Sinar Technologies | 1.8 | ||||||||||||||||
Brown & Brown | 1.7 | ||||||||||||||||
Aceto Corporation | 1.6 | ||||||||||||||||
Excel Technology | 1.6 | ||||||||||||||||
| |||||||||||||||||
PORTFOLIO SECTOR BREAKDOWN % of Net Assets | |||||||||||||||||
Technology | 30.7% | ||||||||||||||||
Industrial Products | 18.0 | ||||||||||||||||
Financial Services | 13.6 | ||||||||||||||||
Health | 8.7 | ||||||||||||||||
Industrial Services | 6.8 | ||||||||||||||||
Natural Resources | 4.3 | ||||||||||||||||
Consumer Services | 3.6 | ||||||||||||||||
Consumer Products | 3.5 | ||||||||||||||||
Financial Intermediaries | 2.0 | ||||||||||||||||
Miscellaneous | 4.7 | ||||||||||||||||
Cash and Cash Equivalents | 4.1 | ||||||||||||||||
| |||||||||||||||||
THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 9 |
ROYCE OPPORTUNITY FUND† | |||||||||||||||||
AVERAGE ANNUAL TOTAL RETURNS Through 6/30/05 | Manager’s Discussion As of June 30, a few too many opportunities had not yet turned into profitable ones for Royce Opportunity Fund (ROF) during 2005’s first half. The Fund was down 3.3% for the year-to-date period ended 6/30/05, trailing its small-cap benchmark, the Russell 2000, which lost 1.3% during the same period. Along with most of the stock market, ROF suffered through a tough first quarter, down 4.4% versus a decline of 5.3% for its small-cap benchmark, the Russell 2000. The Fund then rebounded during the rally that began to kickstart share prices on 4/28/05, but its 1.1% return in the second quarter could not overcome its earlier difficulties. Still, the Fund’s recent market cycle and long-term performances were strong. For the periods ended 6/30/05, ROF remained in front of its benchmark from the small-cap market peak on 3/9/00 (+94.8% versus +13.0%) and from the small-cap market trough on 10/9/02 through 6/30/05 (+144.4% versus +102.3%), impressive outperformance in both down and up market periods. The Fund also outpaced the Russell 2000 for the three-year, five-year and since inception (11/19/96) periods ended 6/30/05. ROF’s average annual total return for the since inception period ended 6/30/05 was 17.6%. In a disappointing short-term performance period such as 2005’s first half, we think it’s important to point out that the Fund is a contrarian portfolio that anticipates each holding going through three stages: First is the investment period in which we build a position because a company’s stock price is depressed. (Stock price depreciation can happen for any number of reasons.) Improvement in the stock price marks the second stage, which most commonly occurs when the business’s earnings begin to improve. When a rising stock price hits our sell targets, the final stage has arrived, and we reduce or sell our position. Of course, stages two and three can take a long time to materialize. We can also think of plenty of examples in which the opposite occurs, and we take our losses and move on. In the first half of 2005, we used numerous opportunities to buy both in the anticipation of, and in response to, poor earnings. Many companies were hit even harder than we would have expected. We found what we thought was solid value in various industries throughout the market. The Fund was underweighted in energy stocks relative to the Russell 2000 in the first half, while also holding a relatively larger share of Technology issues, which was a factor on the Fund’s first-half results. Includes reinvestment of distributions. †All performance and risk information for ROF reflects Investment Class results. Shares of ROF’s Financial Intermediary Class bear an annual distribution expense that is not borne by the Investment Class. All performance information in this Report reflects past performance, is presented on a total return basis and reflects the reinvestment of distributions. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, so that shares may be worth more or less than their original cost when redeemed. Current performance may be higher or lower than performance quoted. Current month-end performance may be obtained at www.roycefunds.com. | ||||||||||||||||
January - June 2005* | -3.31 | % | |||||||||||||||
1-Year | 6.11 | ||||||||||||||||
3-Year | 16.33 | ||||||||||||||||
5-Year | 14.13 | ||||||||||||||||
Since Inception (11/19/96) | 17.61 | ||||||||||||||||
* | Not annualized. | ||||||||||||||||
CALENDAR YEAR TOTAL RETURNS | |||||||||||||||||
Year | ROF | ||||||||||||||||
2004 | 17.5 | % | |||||||||||||||
2003 | 72.9 | ||||||||||||||||
2002 | -17.0 | ||||||||||||||||
2001 | 17.3 | ||||||||||||||||
2000 | 19.9 | ||||||||||||||||
1999 | 32.3 | ||||||||||||||||
1998 | 4.9 | ||||||||||||||||
1997 | 20.8 | ||||||||||||||||
TOP 10 POSITIONS (% of Net Assets) | |||||||||||||||||
Titanium Metals | 0.9 | % | |||||||||||||||
Hexcel Corporation | 0.9 | ||||||||||||||||
McGrath RentCorp | 0.9 | ||||||||||||||||
Atlas Air Worldwide Holdings | 0.8 | ||||||||||||||||
Barnes Group | 0.8 | ||||||||||||||||
Trinity Industries | 0.7 | ||||||||||||||||
Park Electrochemical | 0.7 | ||||||||||||||||
Flowserve Corporation | 0.7 | ||||||||||||||||
CIRCOR International | 0.7 | ||||||||||||||||
UNOVA | 0.7 | ||||||||||||||||
PORTFOLIO SECTOR BREAKDOWN % of Net Assets | |||||||||||||||||
Technology | 35.5 | % | |||||||||||||||
Industrial Products | 28.6 | ||||||||||||||||
Industrial Services | 7.3 | ||||||||||||||||
Consumer Services | 6.5 | ||||||||||||||||
Consumer Products | 3.8 | ||||||||||||||||
Health | 3.5 | ||||||||||||||||
Natural Resources | 3.1 | ||||||||||||||||
Financial Intermediaries | 2.8 | ||||||||||||||||
Financial Services | 1.2 | ||||||||||||||||
Miscellaneous | 1.3 | ||||||||||||||||
Cash and Cash Equivalents | 6.4 |
10 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 |
ROYCE SPECIAL EQUITY FUND† | |||||||||||||||||
Manager’s Discussion While we would not go so far as to argue that the recent (and so far short-term) market rally was a bad thing, it did contribute to short-term relative underperformance for Royce Special Equity Fund (RSE). RSE lost 2.3% in 2005’s first half, a result that left it behind its small-cap benchmark, the Russell 2000, which declined 1.3% for the same period. The Fund fared relatively well in the first-quarter downdraft (that actually lasted through late April), down 2.4% versus a loss of 5.3% for the small-cap index. RSE then underperformed in the more dynamic second quarter, up 0.1% versus 4.3% for the Russell 2000. The Fund’s strength historically has not been to thrive during short-term, up-market swings, but instead to lose less, or even gain, during down markets with the end result of strong absolute returns over market cycle and other long-term performance periods. Still, the Fund’s results were disappointing, even though we ultimately do not put much stock in any six-month period, good or bad. Looking over longer-term time spans, RSE’s results were much more encouraging. From the small-cap market peak on 3/9/00 through 6/30/05, the Fund held a significant performance edge over the Russell 2000, up 146.8% versus 13.0%. RSE outperformed its benchmark for the five-year and since inception (5/1/98) periods ended 6/30/05. The Fund’s average annual total return since inception was 10.9%. One advantage to having managed money for more than 25 years has been the ability to observe a variety of market cycles during which different portfolio managers and/or approaches were out of style. The market zigs while a given manager zags, and vice-versa. This is one reason why we do not trouble ourselves over the Fund’s recent short-term and 12-month performances. RSE’s historical performance patterns show that it has been out of sync with the market more often than not, something that is in large part a product of the Fund’s emphasis on 12-month trailing metrics such as balance sheet quality and returns on invested capital. The Fund’s one-year results were an “off” period, though its market-cycle, five-year and since inception returns remained strong on both an absolute and relative basis. As in 2004, energy stocks were not represented in RSE’s portfolio, and once again, they dominated small-cap performance. In addition, the Fund’s two largest sectors, Industrial Products and Consumer Products, posted net losses. In most cases, we added to existing positions as prices fell. We built our stake in kitchen cabinet and bathroom vanity maker American Woodmark, power equipment and engine manufacturer Briggs & Stratton and plastic resin and compound producer A. Schulman. On the plus side, the share price of retailer The Neiman Marcus Group rose in the first half, spurred on by strong same-store sales, and ultimately a takeover bid, in what was a solid market for retail stocks. Includes reinvestment of distributions. †All performance and risk information for RSE reflects Investment Class results. Shares of the RSE’s Consultant and Financial Intermediary Classes bear an annual distribution expense that is not borne by the Investment Class. All performance information in this Report reflects past performance, is presented on a total return basis and reflects the reinvestment of distributions. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, so that shares may be worth more or less than their original cost when redeemed. Current performance may be higher or lower than performance quoted. Current month-end performance may be obtained at www.roycefunds.com. | AVERAGE ANNUAL TOTAL RETURNS Through 6/30/05 | ||||||||||||||||
January - June 2005* | -2.29% | ||||||||||||||||
1-Year | 2.25 | ||||||||||||||||
3-Year | 11.10 | ||||||||||||||||
5-Year | 18.74 | ||||||||||||||||
Since Inception (5/1/98) | 10.88 | ||||||||||||||||
* | Not annualized. | ||||||||||||||||
CALENDAR YEAR TOTAL RETURNS | |||||||||||||||||
Year | RSE | ||||||||||||||||
2004 | 13.9% | ||||||||||||||||
2003 | 27.6 | ||||||||||||||||
2002 | 15.3 | ||||||||||||||||
2001 | 30.8 | ||||||||||||||||
2000 | 16.3 | ||||||||||||||||
1999 | -9.6 | ||||||||||||||||
TOP 10 POSITIONS (% of Net Assets) | |||||||||||||||||
Banta Corporation | 3.9% | ||||||||||||||||
Borders Group | 3.8 | ||||||||||||||||
Lubrizol Corporation | 3.4 | ||||||||||||||||
Bio-Rad Laboratories Cl. A | 3.1 | ||||||||||||||||
Lancaster Colony | 3.1 | ||||||||||||||||
Bandag Cl. A | 2.7 | ||||||||||||||||
Cascade Corporation | 2.7 | ||||||||||||||||
National Presto Industries | 2.5 | ||||||||||||||||
Schweitzer-Mauduit International | 2.5 | ||||||||||||||||
Sanderson Farms | 2.3 | ||||||||||||||||
| |||||||||||||||||
PORTFOLIO SECTOR BREAKDOWN % of Net Assets | |||||||||||||||||
Industrial Products | 28.8% | ||||||||||||||||
Consumer Products | 19.1 | ||||||||||||||||
Consumer Services | 17.4 | ||||||||||||||||
Industrial Services | 16.3 | ||||||||||||||||
Health | 5.9 | ||||||||||||||||
Financial Services | 1.6 | ||||||||||||||||
Technology | 1.4 | ||||||||||||||||
Miscellaneous | 1.0 | ||||||||||||||||
Cash and Cash Equivalents | 8.5 | ||||||||||||||||
| |||||||||||||||||
THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 11 |
ROYCE SELECT FUND | |||||||||||||||||
AVERAGE ANNUAL TOTAL RETURNS Through 6/30/05 | Manager’s Discussion We think that the holdings in Royce Select Fund’s (RSF) limited portfolio are some of the highest quality companies that the small-cap world has to offer, but in the first half of 2005, the market made a different assessment. RSF was down 2.8% for the year-to-date period ended 6/30/05, trailing its small-cap benchmark, the Russell 2000, which lost 1.3% in the same period. After losing less than its benchmark in the bearish first quarter (-3.9% versus -5.3%), the Fund rallied in the upswing that took off on 4/28/05. Unfortunately for the short-term performance picture (an image we never linger over for long), RSF failed to keep pace with the Russell 2000. The Fund gained 1.2% in the second quarter compared to 4.3% for the small-cap index. However, the Fund’s returns over recent market cycle and other long-term periods remained impressive on both an absolute and relative basis. For the periods ended 6/30/05, RSF beat its benchmark from both the small-cap market peak on 3/9/00 (+95.5% versus +13.0%) and from the small-cap market trough on 10/9/02 through 6/30/05 (+112.9% versus +102.3%). RSF also outperformed the Russell 2000 for the three-year, five-year and since inception (11/18/98) periods ended 6/30/05. The Fund’s average annual total return since inception was 18.2%. Holdings in the Technology sector posted the greatest losses on a dollar basis, as they generally did in the small-cap universe as a whole, continuing a trend that began in 2004. We parted ways with information technology (IT) consultant Gartner Group in February. Although the company showed a loss for 2005, our experience overall was positive. Late in June, we substantially reduced our position in business software company Verity after an earnings disappointment left us in doubt about the firm’s long-term prospects. On the other hand, we added to our stake in Technitrol, which manufactures electronic components and electrical contacts for various industries, primarily because of its low debt and positive cash flow. Outside of Technology, we sold our position out of RSF’s portfolio in energy services business Input/Output after it made a major downward adjustment to its earnings back in January. We also continued to hold a large position in eFunds Corporation, which provides multiple financial services, including risk management, electronic transaction processing and ATM management because of our high regard for its management and fundamentals. We reinitiated a position in contract oil and gas drilling services company Helmerich & Payne during January. We then took sizeable gains in February, May and June after its price nearly doubled, making it a rare short-term turnaround. Includes reinvestment of distributions. All performance information in this Report reflects past performance, is presented on a total return basis and reflects the reinvestment of distributions. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, so that shares may be worth more or less than their original cost when redeemed. Current performance may be higher or lower than performance quoted. Current month-end performance may be obtained at www.roycefunds.com. | ||||||||||||||||
January - June 2005* | –2.79 | % | |||||||||||||||
1-Year | 6.26 | ||||||||||||||||
1-Year (net)1 | 4.13 | ||||||||||||||||
3-Year | 15.83 | ||||||||||||||||
5-Year | 13.94 | ||||||||||||||||
Since Inception (11/18/98) | 18.22 | ||||||||||||||||
* | Not annualized. | ||||||||||||||||
1 | One-year net results are adjusted to reflect the 2% fee assessed on redemptions of shares held for less than three years. | ||||||||||||||||
CALENDAR YEAR TOTAL RETURNS | |||||||||||||||||
Year | RSF | ||||||||||||||||
2004 | 19.1 | % | |||||||||||||||
2003 | 48.7 | ||||||||||||||||
2002 | –15.8 | ||||||||||||||||
2001 | 24.5 | ||||||||||||||||
2000 | 15.0 | ||||||||||||||||
1999 | 35.4 | ||||||||||||||||
TOP 10 POSITIONS (% of Net Assets) | |||||||||||||||||
Alliance Capital Management Holding L.P. | 3.7 | % | |||||||||||||||
Ritchie Bros. Auctioneers | 3.3 | ||||||||||||||||
Polo Ralph Lauren Cl. A | 2.9 | ||||||||||||||||
Penn Virginia | 2.7 | ||||||||||||||||
SEI Investments | 2.7 | ||||||||||||||||
Nuveen Investments Cl. A | 2.6 | ||||||||||||||||
Cognex Corporation | 2.3 | ||||||||||||||||
Plexus Corporation | 2.2 | ||||||||||||||||
Exar Corporation | 2.2 | ||||||||||||||||
ADTRAN | 2.2 | ||||||||||||||||
PORTFOLIO SECTOR BREAKDOWN % of Net Assets | |||||||||||||||||
Technology | 23.9 | % | |||||||||||||||
Financial Services | 16.5 | ||||||||||||||||
Industrial Products | 10.3 | ||||||||||||||||
Industrial Services | 8.1 | ||||||||||||||||
Health | 7.1 | ||||||||||||||||
Consumer Services | 6.6 | ||||||||||||||||
Consumer Products | 3.7 | ||||||||||||||||
Natural Resources | 3.7 | ||||||||||||||||
Financial Intermediaries | 2.4 | ||||||||||||||||
Miscellaneous | 3.8 | ||||||||||||||||
Cash and Cash Equivalents | 13.9 |
12 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 |
ROYCE VALUE FUND | |||||||||||||||||
Managers’ Discussion One of our newer portfolios showed up many of its more seasoned siblings in the mostly difficult first six months of 2005. Royce Value Fund (RVV) finished the year-to-date period ended 6/30/05 with a return of 2.0%, ahead of its small-cap benchmark, the Russell 2000, which lost 1.3% for the same period. The Fund achieved its positive results with a combination of solid downside and upside performances. In the first quarter downdraft (which actually lasted through 4/28/05), the Fund was down 0.6% compared to the Russell 2000’s decline of 5.3%. When stock prices began to perk up in late April, RVV followed suit, with a second-quarter return of 2.6% that trailed the benchmark’s 4.3% result. The Fund also did well over long-term and market cycle periods. From the small-cap market trough on 10/9/02 through 6/30/05, RVV beat the small-cap index, gaining 166.9% versus 102.3% for the Russell 2000. The Fund also outperformed its benchmark for the one-, three-year and since inception (6/14/01) periods ended 6/30/05. RVV’s average annual total return since inception was 16.9%. In contrast to the small-cap market as a whole (as well as other Royce-managed portfolios), most of the Fund’s sectors posted net gains, with losses coming from Financial Services, Industrial Products and Industrial Services. More in line with the small-cap world were RVV’s gains in energy stocks. Holdings in the Natural Resources sector made the greatest positive impact on performance, with oil and gas company St. Mary Land & Exploration Company, and energy services firms Trican Well Service and Patterson-UTI Energy leading the way. Although the price of each rose in the first half, we added to our position in all three companies. Outside of Natural Resources, we built our stake in eFunds Corporation, a company whose businesses include multiple financial services, risk management, electronic transaction processing and ATM management, because of our high opinion of its management and fundamentals. Its share price tumbled, especially in the second quarter as it worked to integrate a new acquisition. Our preference for strong fundamentals also led us to buy more shares of two companies that we rate as strong niche businesses. Scrap metal business Schnitzer Steel Industries saw its stock price soar to record highs earlier in 2005. Investors wasted little time taking profits, especially in light of analysts’ anxiety about the future prospects for the steel industry, and its stock price tumbled in the process. Telecommunications equipment maker Foundry Networks is the kind of picks-and-shovels technology products and services firm that we have always liked, with low debt and improved cash flows. Includes reinvestment of distributions. All performance information in this Report reflects past performance, is presented on a total return basis and reflects the reinvestment of distributions. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, so that shares may be worth more or less than their original cost when redeemed. Current performance may be higher or lower than performance quoted. Current month-end performance may be obtained at www.roycefunds.com. | AVERAGE ANNUAL TOTAL RETURNS Through 6/30/05 | ||||||||||||||||
January - June 2005* | 2.03% | ||||||||||||||||
1-Year | 17.64 | ||||||||||||||||
3-Year | 23.76 | ||||||||||||||||
Since Inception (6/14/01) | 16.88 | ||||||||||||||||
* | Not annualized. | ||||||||||||||||
CALENDAR YEAR TOTAL RETURNS | |||||||||||||||||
Year | RVV | ||||||||||||||||
2004 | 30.9% | ||||||||||||||||
2003 | 54.3 | ||||||||||||||||
2002 | -23.5 | ||||||||||||||||
TOP 10 POSITIONS (% of Net Assets) | |||||||||||||||||
Aspen Insurance Holdings | 2.9% | ||||||||||||||||
Nu Skin Enterprises Cl. A | 2.8 | ||||||||||||||||
Trican Well Service | 2.7 | ||||||||||||||||
eFunds Corporation | 2.4 | ||||||||||||||||
Ensign Energy Services | 2.3 | ||||||||||||||||
St. Mary Land & Exploration Company | 2.2 | ||||||||||||||||
Endurance Specialty Holdings | 2.1 | ||||||||||||||||
Polo Ralph Lauren Cl. A | 2.1 | ||||||||||||||||
AmerUs Group | 2.0 | ||||||||||||||||
Tektronix | 2.0 | ||||||||||||||||
| |||||||||||||||||
PORTFOLIO SECTOR BREAKDOWN % of Net Assets | |||||||||||||||||
Natural Resources | 17.2% | ||||||||||||||||
Consumer Products | 13.7 | ||||||||||||||||
Technology | 12.1 | ||||||||||||||||
Financial Intermediaries | 11.3 | ||||||||||||||||
Consumer Services | 10.6 | ||||||||||||||||
Industrial Products | 9.1 | ||||||||||||||||
Health | 5.5 | ||||||||||||||||
Financial Services | 4.1 | ||||||||||||||||
Industrial Services | 1.7 | ||||||||||||||||
Miscellaneous | 2.4 | ||||||||||||||||
Cash and Cash Equivalents | 12.3 | ||||||||||||||||
| |||||||||||||||||
THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 13 |
ROYCE VALUE PLUS FUND | ||||||||||||||||||
AVERAGE ANNUAL TOTAL RETURNS Through 6/30/05 | Managers’ Discussion If 2003 and 2004 were big “plus” years from a performance perspective, then the first half of 2005 was very much a “minus” period for Royce Value Plus Fund’s (RVP) limited portfolio of small- and micro-cap stocks. RVP endured a dismal first half, with its decline of 5.4% for the year-to-date period ended 6/30/05 trailing its small-cap benchmark, the Russell 2000, which lost 1.3% for the same period. The Fund struggled in the downdraft that lasted through the first quarter until 4/28/05, losing 5.4% in the opening quarter and another 5.1% in April. This made the possibility of posting positive first-half results somewhat challenging, to say the least. So while the Fund rebounded with a 6.2% return from the interim small-cap trough on 4/28/05 through 6/30/05, it was not enough to undo the previous four months of bearish results. More encouraging was the Fund’s strength in the longer-term and market cycle periods ended 6/30/05. RVP soundly beat the Russell 2000 from the small-cap market trough on 10/9/02, gaining 170.2% versus 102.3% for the small-cap index. The Fund was also ahead of the Russell 2000 for the three-year and since inception (6/14/01) periods ended 6/30/05. The Fund’s average annual total returns for the three-year and since inception periods ended 6/30/05 were 23.9% and 22.3%. Eight of the Fund’s nine sectors posted net losses in the first half, with the most significant on a dollar basis coming from the Technology, Industrial Products and Health sectors. Profit-taking was part of the story of the market’s struggles in the first quarter, as these sectors were three of the Fund’s four top-performing areas in 2004. In most cases, we took advantage of lower prices by buying additional shares. We more than tripled our position in Schnitzer Steel Industries when its price began to slip after reaching record highs earlier in 2005. The difficulty of integrating a new acquisition was a factor in the falling share price of eFunds Corporation. Liking its fundamentals and management, we added to our stake in this multi-service financial company that deals in risk management, electronic transaction processing and ATM management. Low debt, improving cash flow characteristics and a plummeting share price led us to build our position in telecommunications equipment and services company Foundry Networks. Although its rising price led us to trim our position, the growing business of Trican Well Service, namely in oil well completion and maintenance services, encouraged us to hold a large stake at June 30. The rising share price of video game and computer entertainment software retailer GameStop Corporation hit our sell target, prompting us to sell our shares in the second quarter. Includes reinvestment of distributions. All performance information in this Report reflects past performance, is presented on a total return basis and reflects the reinvestment of distributions. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, so that shares may be worth more or less than their original cost when redeemed. Current performance may be higher or lower than performance quoted. Current month-end performance may be obtained at www.roycefunds.com. | |||||||||||||||||
January - June 2005* | -5.39 | % | ||||||||||||||||
1-Year | 6.71 | |||||||||||||||||
3-Year | 23.89 | |||||||||||||||||
Since Inception (6/14/01) | 22.31 | |||||||||||||||||
* | Not annualized. | |||||||||||||||||
CALENDAR YEAR TOTAL RETURNS | ||||||||||||||||||
Year | RVP | |||||||||||||||||
2004 | 28.2 | % | ||||||||||||||||
2003 | 79.9 | |||||||||||||||||
2002 | -14.7 | |||||||||||||||||
TOP 10 POSITIONS (% of Net Assets) | ||||||||||||||||||
eFunds Corporation | 2.3 | % | ||||||||||||||||
Nu Skin Enterprises Cl. A | 2.2 | |||||||||||||||||
Schnitzer Steel Industries Cl. A | 2.1 | |||||||||||||||||
Ensign Energy Services | 2.0 | |||||||||||||||||
Trican Well Service | 1.9 | |||||||||||||||||
Endo Pharmaceuticals Holdings | 1.8 | |||||||||||||||||
IPSCO | 1.7 | |||||||||||||||||
Perot Systems Cl. A | 1.7 | |||||||||||||||||
Photronics | 1.7 | |||||||||||||||||
Foundry Networks | 1.6 | |||||||||||||||||
PORTFOLIO SECTOR BREAKDOWN % of Net Assets | ||||||||||||||||||
Technology | 16.2 | % | ||||||||||||||||
Health | 15.5 | |||||||||||||||||
Industrial Products | 13.8 | |||||||||||||||||
Natural Resources | 13.5 | |||||||||||||||||
Industrial Services | 11.1 | |||||||||||||||||
Consumer Products | 8.1 | |||||||||||||||||
Financial Services | 6.0 | |||||||||||||||||
Financial Intermediaries | 2.8 | |||||||||||||||||
Consumer Services | 2.2 | |||||||||||||||||
Miscellaneous | 2.7 | |||||||||||||||||
Cash and Cash Equivalents | 8.1 |
14 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 |
ROYCE TECHNOLOGY VALUE FUND | |||||||||||||||||
Manager’s Discussion For small-cap technology companies, the first half of 2005 paralleled the previous calendar year, which is disappointing news for investors in Royce Technology Value Fund (RTV). As was the case in 2004, the first six months of 2005 saw a late rally that was not enough to overcome an earlier period of low returns. And once again, as in 2004, small-cap technology underperformed both larger tech issues and the stock market as a whole. RTV was down 8.5% for the year-to-date period ended 6/30/05, trailing both its small-cap benchmark, the Russell 2000, which declined 1.3%, and the technology sector of the Russell 2500 Index, which lost 8.1%, for the same period. The Fund suffered the dubious distinction of losing more on the downside and gaining less than its benchmark in the uptick. RTV was down 12.0% in the bearish first quarter, versus losses of 5.3% for the Russell 2000 and 10.3% for the micro-, small- and mid-cap companies that comprise the technology sector of the Russell 2500. The Fund was up 4.1% in the second-quarter rally compared to gains of 4.3% for the Russell 2000 and 2.5% for the Russell 2500 Technology sector. The Fund’s recent trough-to-peak market cycle performance and its longer-term average annual total returns were a bit better than its recent short-term results. RTV posted solid performance from the small-cap market trough on 10/9/02 through 6/30/05, gaining 100.9% versus returns of 102.3% for the Russell 2000 and 129.2% for the Russell 2500 Technology sector. The Fund outperformed its benchmark for the three-year period ended 6/30/05 and beat the Russell 2500 Technology sector for the three-year and since inception (12/31/01) periods ended 6/30/05. RTV’s average annual total return since inception was 9.3%. While we saw a number of fundamentally solid small-cap technology companies with modest-to-fair growth over the last 12-18 months, the market saw chances to sell in a climate that looks excessively driven by liquidity in our eyes. It seemed that if a company in the tech business was not named “Google,” then life was pretty grim, at least through the interim small-cap trough on 4/28/05. The environment for tech improved marginally as the market as a whole rebounded, but the recovery was inconsistent. Based on their business fundamentals, we still liked the long-term prospects for many of RTV’s holdings, not simply those that enjoyed the more robust market of May and June. Thus, we held a large position in knowledge-retrieval software business Verity at June 30, even though its price fell through much of the first half, based on what we thought was a highly attractive valuation. Although the price of medical software and Internet application business The Trizetto Group mostly rose through 2005’s first six months, we repurchased shares in May after reducing our position because of its improving fundamentals and our confidence in its ability to keep growing. Includes reinvestment of distributions. All performance information in this Report reflects past performance, is presented on a total return basis and reflects the reinvestment of distributions. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, so that shares may be worth more or less than their original cost when redeemed. Current performance may be higher or lower than performance quoted. Current month-end performance may be obtained at www.roycefunds.com. | AVERAGE ANNUAL TOTAL RETURNS Through 6/30/05 | ||||||||||||||||
January - June 2005* | -8.47% | ||||||||||||||||
1-Year | -12.86 | ||||||||||||||||
3-Year | 15.87 | ||||||||||||||||
Since Inception (12/31/01) | 9.32 | ||||||||||||||||
* | Not annualized. | ||||||||||||||||
CALENDAR YEAR TOTAL RETURNS | |||||||||||||||||
Year | RTV | ||||||||||||||||
2004 | -9.6% | ||||||||||||||||
2003 | 90.7 | ||||||||||||||||
2002 | -13.4 | ||||||||||||||||
TOP 10 POSITIONS (% of Net Assets) | |||||||||||||||||
SCO Group (The) | 5.0% | ||||||||||||||||
Jacada | 2.9 | ||||||||||||||||
Stellent | 2.5 | ||||||||||||||||
RightNow Technologies | 2.4 | ||||||||||||||||
WebMD Corporation | 2.4 | ||||||||||||||||
Intevac | 2.1 | ||||||||||||||||
Aspen Technology | 2.1 | ||||||||||||||||
Transaction Systems Architects Cl. A | 2.1 | ||||||||||||||||
Indus International | 2.1 | ||||||||||||||||
Verity | 2.1 | ||||||||||||||||
| |||||||||||||||||
INDUSTRY GROUP BREAKDOWN % of Net Assets | |||||||||||||||||
Software | 27.0% | ||||||||||||||||
Internet Software and Services | 23.1 | ||||||||||||||||
Telecommunications | 14.1 | ||||||||||||||||
Commercial Services | 5.8 | ||||||||||||||||
Semiconductors and Equipment | 3.3 | ||||||||||||||||
Components and Systems | 2.8 | ||||||||||||||||
Aerospace and Defense | 1.5 | ||||||||||||||||
IT Services | 1.5 | ||||||||||||||||
Other Financial Intermediaries | 1.5 | ||||||||||||||||
Health Services | 1.4 | ||||||||||||||||
Miscellaneous | 1.0 | ||||||||||||||||
Cash and Cash Equivalents | 17.0 | ||||||||||||||||
| |||||||||||||||||
THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 15 |
ROYCE 100 FUND | |||||||||||||||||
AVERAGE ANNUAL TOTAL RETURNS Through 6/30/05 | Managers’ Discussion Although it’s one of our newer offerings, Royce 100 Fund (ROH) is fast distinguishing itself as one of our steadier-performing portfolios. The Fund was also one of only three of our 16 open-end funds to post positive performance in the first half of 2005. ROH gained 0.3% in the year-to-date period ended 6/30/05, enough to outperform its small-cap benchmark, the Russell 2000, which was down 1.3% for the same period. The Fund was able to put together its respectable first half by turning in a relatively solid performance in the down market of the first quarter (-2.9% versus -5.3% for the Russell 2000) and showing decent results in the market rally of the second quarter (+3.3% versus +4.3% for the benchmark). ROH displayed a similar pattern in recent short-term market cycle periods: The Fund was up 0.3% from the interim small-cap market peak on 12/28/04 through 6/30/05 compared to a loss of 1.6% for its small-cap benchmark. From the interim small-cap market trough on 4/28/05 through 6/30/05, the Fund gained 9.7% versus 11.5% for the Russell 2000. In addition, ROH outperformed the Russell 2000 for the one-year period ended 6/30/05. Although ROH underperformed its benchmark for the since inception (6/30/03) period, we were very pleased with its performance on an absolute basis for that relatively short time span. The Fund’s average annual total return since inception was 18.8%. Both gains and losses could be found in all of the Fund’s sectors and industry groups. Other than the Fund’s two best performers on a dollar basis—Financial Services businesses Morningstar and Nasdaq Stock Market, both first purchased in 2005—gains and losses were also modest. Holdings in the Technology sector posted the largest dollar-based losses in the first half, accounting for five of ROH’s top-ten money-losing holdings. We also showed losses in three companies in which lower prices allowed us to build our position during the first half: multi-service financial firm eFunds Corporation, retailer Pier 1 Imports and motorsports collectibles business Action Performance Companies. After selling our shares last December, we re-initiated a position in petroleum products storage and transport company Holly Corporation. We liked its position as a regional energy company and its hefty dividend. We have owned shares of casual clothing retailer The Buckle in other Royce-managed portfolios for more than 10 years due to our high regard for its conservative, well-run operation. It was an early portfolio selection for ROH as well. Investors seem to have caught on, as increasing same-store sales appeared to boost its share price in the first half. We owned a large stake at June 30. Includes reinvestment of distributions. All performance information in this Report reflects past performance, is presented on a total return basis and reflects the reinvestment of distributions. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, so that shares may be worth more or less than their original cost when redeemed. Current performance may be higher or lower than performance quoted. Current month-end performance may be obtained at www.roycefunds.com. | ||||||||||||||||
January - June 2005* | 0.29 | % | |||||||||||||||
1-Year | 12.37 | ||||||||||||||||
Since Inception (6/30/03) | 18.81 | ||||||||||||||||
* | Not annualized. | ||||||||||||||||
CALENDAR YEAR TOTAL RETURNS | |||||||||||||||||
Year | ROH | ||||||||||||||||
2004 | 27.2 | % | |||||||||||||||
TOP 10 POSITIONS (% of Net Assets) | |||||||||||||||||
Lincoln Electric Holdings | 1.7 | % | |||||||||||||||
Nuveen Investments Cl. A | 1.6 | ||||||||||||||||
Morningstar | 1.5 | ||||||||||||||||
Universal Truckload Services | 1.4 | ||||||||||||||||
Drew Industries | 1.4 | ||||||||||||||||
SEI Investments | 1.4 | ||||||||||||||||
Endo Pharmaceuticals Holdings | 1.3 | ||||||||||||||||
Cimarex Energy | 1.3 | ||||||||||||||||
Investment Technology Group | 1.3 | ||||||||||||||||
Arrow International | 1.3 | ||||||||||||||||
PORTFOLIO SECTOR BREAKDOWN % of Net Assets | |||||||||||||||||
Industrial Products | 17.5 | % | |||||||||||||||
Technology | 16.9 | ||||||||||||||||
Financial Services | 10.6 | ||||||||||||||||
Industrial Services | 10.6 | ||||||||||||||||
Health | 9.4 | ||||||||||||||||
Consumer Services | 8.0 | ||||||||||||||||
Consumer Products | 6.1 | ||||||||||||||||
Natural Resources | 5.2 | ||||||||||||||||
Financial Intermediaries | 2.8 | ||||||||||||||||
Miscellaneous | 4.4 | ||||||||||||||||
Cash and Cash Equivalents | 8.5 |
16 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 |
ROYCE DISCOVERY FUND | |||||||||||||||||
Manager’s Discussion After dominating small-cap performance in 2003, micro-cap stocks cooled off a bit in 2004 and were mostly behind their larger small-cap peers during the first half of 2005. Royce Discovery Fund (RDF) was down 1.4% for the year-to-date period ended 6/30/05, slightly trailing its small-cap benchmark, the Russell 2000, which lost 1.3% in the same period. RDF did relatively well in the first-quarter downdraft, as one might expect from a micro-cap portfolio built using a quantitative model based on conservative value criteria. The Fund was down 4.4% versus a loss of 5.3% for the Russell 2000. It was in the more dynamic market following the interim small-cap trough on 4/28/05 that RDF failed to keep pace with the small-cap index. The Fund gained 3.1% in the second quarter versus a return of 4.3% for the Russell 2000. We do not believe that the Fund’s narrow underperformance versus its benchmark is of any consequence relative to its goal of outperforming the Russell 2000 over full market cycle and other long-term periods. RDF outpaced the Russell 2000 for the since inception (10/3/03) period ended 6/30/05. The Fund’s average annual total return since inception was 14.9%. The Fund’s first six months of 2005 resembled the entire year of 2004 to some extent. Returns through the first nine months of 2004 were negative before a furious fourth-quarter rally gave the Fund a positive return for the year, though it was not enough to overcome a higher return for the benchmark. Part of the Fund’s underperformance versus the Russell 2000 for the year-to-date period ended 6/30/05 can be attributed to its underweighting in energy stocks, which led small-cap returns through the first half as they did in 2004. The Fund’s holdings in oil and gas as well as energy services companies did well, but they were only a small part of the portfolio. In contrast to much of the small-cap market, RDF’s Technology issues posted strong positive performance as a group. Much of the gain came from two holdings in the software business. In June, we sold our shares of hospitality and retail software maker PAR Technology after its price climbed well beyond our sell target. That same month, we sold our position in business software company TALX Corporation as its price was on the rise. Elsewhere in the portfolio, the greatest losses on a dollar basis came from the Industrial Products sector, with Olympic Steel, LeCroy Corporation and Aceto Corporation posting the largest losses in the first half. Includes reinvestment of distributions. All performance information in this Report reflects past performance, is presented on a total return basis and reflects the reinvestment of distributions. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, so that shares may be worth more or less than their original cost when redeemed. Current performance may be higher or lower than performance quoted. Current month-end performance may be obtained at www.roycefunds.com. | AVERAGE ANNUAL TOTAL RETURNS Through 6/30/05 | ||||||||||||||||
January - June 2005* | -1.41% | ||||||||||||||||
1-Year | 6.52 | ||||||||||||||||
Since Inception (10/3/03) | 14.91 | ||||||||||||||||
* | Not annualized. | ||||||||||||||||
CALENDAR YEAR TOTAL RETURNS | |||||||||||||||||
Year | RDF | ||||||||||||||||
2004 | 13.4% | ||||||||||||||||
TOP 10 POSITIONS (% of Net Assets) | |||||||||||||||||
MTC Technologies | 0.9% | ||||||||||||||||
Capital Crossing Bank | 0.9 | ||||||||||||||||
SI International | 0.8 | ||||||||||||||||
Trans World Entertainment | 0.8 | ||||||||||||||||
EnPro Industries | 0.8 | ||||||||||||||||
Noble International | 0.8 | ||||||||||||||||
Amedisys | 0.8 | ||||||||||||||||
Hallwood Group | 0.8 | ||||||||||||||||
Synaptics | 0.8 | ||||||||||||||||
Hi-Tech Pharmacal | 0.8 | ||||||||||||||||
| |||||||||||||||||
PORTFOLIO SECTOR BREAKDOWN % of Net Assets | |||||||||||||||||
Technology | 18.8% | ||||||||||||||||
Health | 18.4 | ||||||||||||||||
Financial Intermediaries | 12.0 | ||||||||||||||||
Industrial Products | 8.3 | ||||||||||||||||
Consumer Services | 7.9 | ||||||||||||||||
Industrial Services | 7.4 | ||||||||||||||||
Consumer Products | 5.0 | ||||||||||||||||
Natural Resources | 2.1 | ||||||||||||||||
Financial Services | 2.0 | ||||||||||||||||
Miscellaneous | 4.7 | ||||||||||||||||
Cash and Cash Equivalents | 13.4 | ||||||||||||||||
| |||||||||||||||||
THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 17 |
ROYCE FINANCIAL SERVICES FUND | |||||||||||||||||
AVERAGE ANNUAL TOTAL RETURNS Through 6/30/05 | Manager’s Discussion The quarterly performances of Royce Financial Services Fund (RFS) displayed less volatility than comparable results for its small-cap benchmark, the Russell 2000, though each finished the first half in a similar place. RFS was down 1.2% for the year-to-date period ended 6/30/05, nearly even with the Russell 2000, which was down 1.3% for the same period, but slightly trailing the micro-, small- and mid-cap companies in the financial services sector of the Russell 2500 Index, which declined 0.9% in the first half. RFS was down 2.3% in the first quarter, versus a loss of 5.3% for its benchmark and 7.5% for the financial services sector of the Russell 2500 Index. In the second quarter, which was helped by the market rally that began in late April, the Fund gained 1.1%, losing ground to both the Russell 2000 (+4.3%) and the financial services companies in the Russell 2500 Index (+7.0%). Although the Fund is young, we have been pleased with its results thus far, even allowing for its somewhat disappointing first-half results. We were also encouraged by its relative lack of volatility during the first six months of 2005. RFS beat the Russell 2000 for the one-year period ended 6/30/05. The Fund’s average annual total return since inception (12/31/03) was 8.9%. The Federal Reserve raised interest rates one quarter point four times in the first half, continuing the generally measured pace of previous increases; the net effect was an increase of 1% from December 2004. In addition, long-term interest rates continued to decline. This meant good news for bond investors. After defying forecasts that it would weaken in 2004, the market for debt was surprisingly resilient through June 30, perhaps in part because of the perception that the U.S. economy is slowing down, although inflation remains more of a concern than recession, especially on the part of the Federal Reserve. In any case, these developments played a role in the rebound of many financial services stocks in 2005’s second quarter. There were a couple of problems for the Fund with this otherwise rosy picture for financial companies. The first was that even in the first quarter, prices did not decline across the board to levels that we found attractive from a buyer’s perspective, a situation that may have hindered returns in 2004 as well. The second was that the interest-rate developments helped certain financial businesses, but not all. The upshot was a quiet six months in terms of both portfolio buying and selling and in terms of performance. Includes reinvestment of distributions. All performance information in this Report reflects past performance, is presented on a total return basis and reflects the reinvestment of distributions. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, so that shares may be worth more or less than their original cost when redeemed. Current performance may be higher or lower than performance quoted. Current month-end performance may be obtained at www.roycefunds.com. | ||||||||||||||||
January - June 2005* | -1.24 | % | |||||||||||||||
1-Year | 12.53 | ||||||||||||||||
Since Inception (12/31/03) | 8.92 | ||||||||||||||||
* | Not annualized. | ||||||||||||||||
CALENDAR YEAR TOTAL RETURNS | |||||||||||||||||
Year | RFS | ||||||||||||||||
2004 | 15.1 | % | |||||||||||||||
TOP 10 POSITIONS (% of Net Assets) | |||||||||||||||||
Alliance Capital Management Holding L.P. | 5.0 | % | |||||||||||||||
Nuveen Investments Cl. A | 4.3 | ||||||||||||||||
Fair Isaac | 3.7 | ||||||||||||||||
Epoch Holding | 3.4 | ||||||||||||||||
Brown & Brown | 3.0 | ||||||||||||||||
Morningstar | 2.8 | ||||||||||||||||
Federated Investors Cl. B | 2.8 | ||||||||||||||||
Bank of NT Butterfield | 2.8 | ||||||||||||||||
Aspen Insurance Holdings | 2.6 | ||||||||||||||||
SEI Investments | 2.5 | ||||||||||||||||
PORTFOLIO SECTOR BREAKDOWN % of Net Assets | |||||||||||||||||
Financial Intermediaries | 48.0 | % | |||||||||||||||
Financial Services | 42.0 | ||||||||||||||||
Industrial Services | 2.2 | ||||||||||||||||
Consumer Services | 1.3 | ||||||||||||||||
Diversified Investment Companies | 0.6 | ||||||||||||||||
Cash and Cash Equivalents | 5.9 |
18 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 |
ROYCE DIVIDEND VALUE FUND | ||||||||||||||||||
Manager’s Discussion Although its performances in the first and second quarters of 2005 were far less volatile than those of its small-cap benchmark, the Russell 2000, Royce Dividend Value Fund (RDV) wound up in a similar spot during the first half. RDV was down 1.2% for the year-to-date period ended 6/30/05, nearly even with the Russell 2000, which declined 1.3% during the same period. The Fund acquitted itself well in the difficult first quarter, losing only 1.6% versus a loss of 5.3% for the small-cap index. However, in the market rebound that followed the interim small-cap trough on 4/28/05, RDV gave up some ground to its benchmark. Its second-quarter return was 0.4%, which lagged the Russell 2000’s more robust gain of 4.3%. Nonetheless, we have been pleased with the Fund’s performance over its still-short lifespan. Although its first-half return was somewhat underwhelming, we were satisfied that the Fund showed far less volatility than the Russell 2000. RDV outperformed the small-cap index for the one-year period ended 6/30/05. The Fund’s average annual total return since inception (5/3/04) was 9.9%. Six of the Fund’s 10 equity sectors posted net losses in the first half, with the most significant declines on a dollar basis coming from the Technology and Financial Intermediaries sectors. In both areas, a small number of holdings made a large impact on performance. In Technology, the price of Lowrance Electronics mostly fell in the first half, even after many stocks rebounded in May and June. The market seemed disenchanted with the company’s newer, higher-expense sonar and global positioning system products, but we held a good-sized stake at June 30. Dionex is engaged in the production of chromotography instruments and chemicals. An April earnings disappointment sent its already-slumping share price into a free fall, leading us to double our position in June. A significant earnings disappointment and insider trading problems surrounding a 2001 private investment on public equity deal depressed the share price of investment banking firm Friedman, Billings, Ramsey Group. Elsewhere in the portfolio, the stock price of specialty chemical company Quaker Chemical fell and was unable to recover once the firm issued a warning in May about slower sales in Europe affecting its most recent quarterly profits. Modest gains could be found in the Financial Services, Industrial Services and Natural Resources sectors. All performance information in this Report reflects past performance, is presented on a total return basis and reflects the reinvestment of distributions. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, so that shares may be worth more or less than their original cost when redeemed. Current performance may be higher or lower than performance quoted. Current month-end performance may be obtained at www.roycefunds.com. | AVERAGE ANNUAL TOTAL RETURNS Through 6/30/05 | |||||||||||||||||
January - June 2005* | -1.24% | |||||||||||||||||
1-Year | 10.94 | |||||||||||||||||
Since Inception (5/3/04) | 9.94 | |||||||||||||||||
* Not annualized. | ||||||||||||||||||
TOP 10 POSITIONS (% of Net Assets) | ||||||||||||||||||
Alliance Capital Management Holding L.P. | 5.7% | |||||||||||||||||
SEI Investments | 3.6 | |||||||||||||||||
Athena Neurosciences Finance Bond | 3.6 | |||||||||||||||||
Gallagher (Arthur J.) & Company | 3.4 | |||||||||||||||||
Captial Trust Cl. A | 2.9 | |||||||||||||||||
Federated Investors Cl. B | 2.9 | |||||||||||||||||
T. Rowe Price Group | 2.4 | |||||||||||||||||
Franklin Electric | 2.2 | |||||||||||||||||
Scientific-Atlanta | 2.2 | |||||||||||||||||
Nuveen Investments Cl. A | 2.2 | |||||||||||||||||
| ||||||||||||||||||
PORTFOLIO SECTOR BREAKDOWN % of Net Assets | ||||||||||||||||||
Financial Services | 24.7% | |||||||||||||||||
Technology | 14.4 | |||||||||||||||||
Industrial Products | 14.0 | |||||||||||||||||
Financial Intermediaries | 13.3 | |||||||||||||||||
Consumer Services | 6.2 | |||||||||||||||||
Industrial Services | 4.2 | |||||||||||||||||
Consumer Products | 3.7 | |||||||||||||||||
Utilities | 1.5 | |||||||||||||||||
Health | 1.1 | |||||||||||||||||
Natural Resources | 0.8 | |||||||||||||||||
Miscellaneous | 1.4 | |||||||||||||||||
Bonds and Preferred Stocks | 4.5 | |||||||||||||||||
Cash and Cash Equivalents | 10.2 | |||||||||||||||||
| ||||||||||||||||||
THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 19 |
SCHEDULES OF INVESTMENTS | |||||||||||||||
Pennsylvania Mutual Fund | |||||||||||||||
SHARES | VALUE | SHARES | VALUE | |||||||
COMMON STOCKS – 86.7% | Retail Stores - 5.6% | |||||||||
374,900 | $ | 9,102,572 | ||||||||
Consumer Products – 13.4% | Big Lots a | 950,700 | 12,587,268 | |||||||
Apparel and Shoes - 4.4% | Buckle (The) | 616,300 | 27,326,742 | |||||||
Cutter & Buck c | 634,100 | $ | 8,179,890 | Cato Corporation Cl. A | 706,350 | 14,586,127 | ||||
Kenneth Cole Productions Cl. A | 612,000 | 19,045,440 | 960,200 | 8,958,666 | ||||||
K-Swiss Cl. A | 536,100 | 17,337,474 | Claire’s Stores | 667,800 | 16,060,590 | |||||
Steven Madden a | 531,300 | 9,435,888 | Deb Shops | 95,300 | 2,760,841 | |||||
Polo Ralph Lauren Cl. A | 370,800 | 15,985,188 | 90,100 | 2,038,963 | ||||||
Stride Rite | 1,080,000 | 14,893,200 | Pier 1 Imports | 997,900 | 14,160,201 | |||||
Weyco Group c | 775,500 | 15,281,227 | Talbots | 468,000 | 15,195,960 | |||||
3,400 | 79,458 | |||||||||
100,158,307 | Weis Markets | 175,500 | 6,807,645 | |||||||
Collectibles - 0.2% | 129,665,033 | |||||||||
Department 56 a | 497,000 | 5,094,250 | ||||||||
Other Consumer Services - 0.1% | ||||||||||
Food/Beverage/Tobacco - 0.6% | 61,800 | 789,186 | ||||||||
524,600 | 11,772,024 | |||||||||
568,000 | 1,910,023 | Total (Cost $176,981,543) | 216,262,621 | |||||||
13,682,047 | Financial Intermediaries – 8.9% | |||||||||
Insurance - 7.8% | ||||||||||
Home Furnishing and Appliances - 2.8% | Alleghany Corporation a | 59,818 | 17,765,946 | |||||||
American Woodmark | 388,800 | 11,667,888 | AmerUs Group | 389,100 | 18,696,255 | |||||
Ethan Allen Interiors | 714,200 | 23,932,842 | 241,000 | 5,564,690 | ||||||
Hooker Furniture | 525,300 | 9,176,991 | Aspen Insurance Holdings | 690,700 | 19,035,692 | |||||
Natuzzi ADR b | 732,700 | 5,964,178 | Baldwin & Lyons Cl. B | 310,000 | 7,471,000 | |||||
Stanley Furniture Company | 579,424 | 14,230,653 | Erie Indemnity Company Cl. A | 158,500 | 8,598,625 | |||||
†Endurance Specialty Holdings | 630,700 | 23,853,074 | ||||||||
64,972,552 | PXRE Group | 482,300 | 12,163,606 | |||||||
ProAssurance Corporation a | 393,454 | 16,430,639 | ||||||||
Sports and Recreation - 2.4% | RLI | 130,462 | 5,818,605 | |||||||
Callaway Golf Company | 464,000 | 7,159,520 | Scottish Re Group | 531,600 | 12,885,984 | |||||
Monaco Coach | 598,500 | 10,288,215 | United Fire & Casualty Company | 268,200 | 11,913,444 | |||||
Oakley | 274,600 | 4,676,438 | Wesco Financial | 16,540 | 5,954,400 | |||||
Thor Industries | 501,900 | 15,774,717 | Zenith National Insurance | 185,200 | 12,567,672 | |||||
Winnebago Industries | 488,100 | 15,985,275 | ||||||||
178,719,632 | ||||||||||
53,884,165 | ||||||||||
Securities Brokers - 0.2% | ||||||||||
Other Consumer Products - 3.0% | E*TRADE Financial a | 343,000 | 4,798,570 | |||||||
Blyth | 224,700 | 6,302,835 | ||||||||
Burnham Holdings Cl. A | 103,052 | 2,576,300 | Other Financial Intermediaries - 0.9% | |||||||
388,700 | 8,823,490 | TSX Group | 696,200 | 20,746,214 | ||||||
Matthews International Cl. A | 233,900 | 9,112,744 | ||||||||
RC2 Corporation a | 578,600 | 21,738,002 | Total (Cost $131,282,211) | 204,264,416 | ||||||
Radica Games | 631,600 | 5,468,393 | ||||||||
121,898 | 2,022,288 | Financial Services – 2.7% | ||||||||
Yankee Candle Company | 426,400 | 13,687,440 | Information and Processing - 1.3% | |||||||
1,085,800 | 19,533,542 | |||||||||
69,731,492 | SEI Investments | 236,500 | 8,833,275 | |||||||
Total (Cost $232,396,978) | 307,522,813 | 28,366,817 | ||||||||
Consumer Services – 9.4% | Investment Management - 1.0% | |||||||||
Direct Marketing - 1.0% | Alliance Capital Management Holding L.P. | 270,700 | 12,652,518 | |||||||
Nu Skin Enterprises Cl. A | 962,600 | 22,428,580 | Cohen & Steers | 158,400 | 3,264,624 | |||||
Gabelli Asset Management Cl. A | 135,800 | 6,001,002 | ||||||||
Leisure and Entertainment - 0.8% | Westwood Holdings Group | 98,400 | 1,761,360 | |||||||
Dover Downs Gaming & Entertainment | 644,600 | 8,547,396 | ||||||||
1,018,800 | 11,216,988 | 23,679,504 | ||||||||
19,764,384 | Other Financial Services - 0.4% | |||||||||
Electro Rent a | 240,000 | 3,489,600 | ||||||||
Restaurants and Lodgings - 1.9% | 120,000 | 3,013,200 | ||||||||
CBRL Group | 292,000 | 11,347,120 | 186,500 | 2,107,450 | ||||||
60,600 | 2,550,654 | |||||||||
Ruby Tuesday | 666,300 | 17,257,170 | 8,610,250 | |||||||
889,400 | 12,460,494 | |||||||||
Total (Cost $51,604,802) | 60,656,571 | |||||||||
43,615,438 | ||||||||||
20 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. |
JUNE 30, 2005 (Unaudited) | |||||||||||||||
SHARES | VALUE | SHARES | VALUE | |||||||
Health – 10.9% | Industrial Components - 0.3% | |||||||||
Commercial Services - 0.7% | Powell Industries a | 317,000 | $ | 5,981,790 | ||||||
AMN Healthcare Services a | 307,863 | $ | 4,627,181 | |||||||
Hooper Holmes | 1,941,900 | 8,058,885 | Machinery - 3.3% | |||||||
39,900 | 2,486,967 | Graco | 89,650 | 3,054,376 | ||||||
Lincoln Electric Holdings | 586,780 | 19,451,757 | ||||||||
15,173,033 | Pason Systems | 867,000 | 15,072,722 | |||||||
472,300 | 15,491,440 | |||||||||
Drugs and Biotech - 2.7% | Thomas Industries | 232,400 | 9,286,704 | |||||||
Applera Corporation- | Woodward Governor Company | 173,372 | 14,568,449 | |||||||
257,100 | 2,820,387 | |||||||||
873,300 | 22,950,324 | 76,925,448 | ||||||||
386,000 | 12,297,960 | |||||||||
Lexicon Genetics a | 1,034,100 | 5,108,454 | Metal Fabrication and Distribution - 1.9% | |||||||
59,200 | 1,883,152 | Gibraltar Industries | 731,225 | 13,556,912 | ||||||
Perrigo Company | 891,900 | 12,433,086 | IPSCO | 505,500 | 22,090,350 | |||||
Theragenics Corporation a | 206,600 | 665,252 | Kaydon Corporation | 60,000 | 1,671,000 | |||||
1,633,500 | 4,671,810 | Schnitzer Steel Industries Cl. A | 300,000 | 7,110,000 | ||||||
62,830,425 | 44,428,262 | |||||||||
Health Services - 3.8% | Specialty Chemicals and Materials - 0.2% | |||||||||
474,600 | 19,078,920 | MacDermid | 163,700 | 5,100,892 | ||||||
Cross Country Healthcare a | 614,500 | 10,446,500 | ||||||||
Healthcare Services Group | 872,475 | 17,519,298 | Other Industrial Products - 0.7% | |||||||
546,800 | 12,789,652 | Brady Corporation Cl. A | 157,700 | 4,888,700 | ||||||
215,100 | 9,520,326 | HNI Corporation | 203,700 | 10,419,255 | ||||||
957,975 | 18,373,961 | |||||||||
15,307,955 | ||||||||||
87,728,657 | ||||||||||
Total (Cost $154,982,828) | 249,857,529 | |||||||||
Medical Products and Devices - 2.1% | ||||||||||
Arrow International | 491,700 | 15,685,230 | Industrial Services – 3.6% | |||||||
Thoratec Corporation a | 366,600 | 5,623,644 | Commercial Services - 2.0% | |||||||
Viasys Healthcare a | 509,600 | 11,511,864 | Carlisle Holdings | 94,500 | 590,625 | |||||
Vital Signs | 186,195 | 8,065,967 | 148,600 | 4,246,988 | ||||||
Young Innovations | 222,550 | 8,307,792 | 511,800 | 10,696,620 | ||||||
50,000 | 1,063,000 | |||||||||
49,194,497 | 350,100 | 3,297,942 | ||||||||
RCM Technologies a | 180,500 | 765,320 | ||||||||
Personal Care - 1.6% | RemedyTemp Cl. A a | 476,970 | 4,221,185 | |||||||
CNS | 476,277 | 10,882,929 | 1,017,900 | 9,130,563 | ||||||
Inter Parfums | 720,500 | 13,970,495 | West Corporation a | 285,400 | 10,959,360 | |||||
819,746 | 10,943,609 | |||||||||
44,971,603 | ||||||||||
35,797,033 | ||||||||||
Engineering and Construction - 0.1% | ||||||||||
Total (Cost $164,137,841) | 250,723,645 | 164,700 | 3,262,707 | |||||||
Industrial Products – 10.9% | Food and Tobacco Processors - 0.3% | |||||||||
Automotive - 0.8% | 1,009,600 | 6,158,560 | ||||||||
202,740 | 11,041,220 | |||||||||
Wescast Industries Cl. A | 276,300 | 6,280,299 | Industrial Distribution - 0.2% | |||||||
Ritchie Bros. Auctioneers | 101,400 | 3,908,970 | ||||||||
17,321,519 | ||||||||||
Printing - 0.4% | ||||||||||
Building Systems and Components - 2.2% | Courier Corporation | 124,650 | 4,787,806 | |||||||
32,050 | 570,170 | Ennis | 315,600 | 5,718,672 | ||||||
Drew Industries a | 416,500 | 18,909,100 | ||||||||
Modtech Holdings a | 234,785 | 1,526,103 | 10,506,478 | |||||||
Preformed Line Products Company | 189,786 | 7,743,269 | ||||||||
Simpson Manufacturing | 658,000 | 20,101,900 | Transportation and Logistics - 0.6% | |||||||
Teleflex | 25,000 | 1,484,250 | Nordic American Tanker Shipping | 227,600 | 9,661,620 | |||||
Patriot Transportation Holding a | 90,800 | 4,623,536 | ||||||||
50,334,792 | ||||||||||
14,285,156 | ||||||||||
Construction Materials - 1.5% | ||||||||||
Ash Grove Cement Company | 50,018 | 7,852,826 | Total (Cost $62,898,699) | 83,093,474 | ||||||
Florida Rock Industries | 362,700 | 26,604,045 | ||||||||
Natural Resources – 14.0% | ||||||||||
34,456,871 | Energy Services - 5.5% | |||||||||
Ensign Energy Services | 1,014,700 | 24,489,617 | ||||||||
716,700 | 4,500,876 | |||||||||
Oil States International a | 576,300 | 14,505,471 |
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 21 |
SCHEDULES OF INVESTMENTS | |||||||||||||||
Pennsylvania Mutual Fund (continued) | |||||||||||||||
SHARES | VALUE | SHARES | VALUE | ||||||||
Natural Resources (continued) | |||||||||||
Energy Services (continued) | Entegris a | 1,137,600 | $ | 11,262,240 | |||||||
Patterson-UTI Energy | 530,400 | $ | 14,761,032 | 417,500 | 6,216,575 | ||||||
428,400 | 16,913,232 | Fairchild Semiconductor | |||||||||
RPC | 794,850 | 13,448,862 | International Cl. A a | 833,500 | 12,294,125 | ||||||
461,850 | 14,709,923 | 1,015,200 | 13,796,568 | ||||||||
Trican Well Service a | 900,900 | 22,147,492 | Semitool a | 1,077,967 | 10,283,805 | ||||||
125,476,505 | 65,671,681 | ||||||||||
Oil and Gas - 4.4% | Software - 2.2% | ||||||||||
Cimarex Energy a | 499,114 | 19,420,526 | 758,500 | 10,907,230 | |||||||
675,500 | 10,551,310 | iPass a | 1,869,700 | 11,330,382 | |||||||
St. Mary Land & Exploration Company | 946,900 | 27,441,162 | 1,237,100 | 5,240,356 | |||||||
95,000 | 6,108,500 | 80,500 | 1,477,175 | ||||||||
Unit Corporation a | 644,600 | 28,368,846 | Transaction Systems Architects Cl. A a | 838,300 | 20,647,329 | ||||||
Whiting Petroleum a | 248,100 | 9,008,511 | |||||||||
49,602,472 | |||||||||||
100,898,855 | |||||||||||
Telecommunications - 1.3% | |||||||||||
Precious Metals and Mining - 4.1% | Brooktrout a | 543,600 | 6,066,576 | ||||||||
Agnico-Eagle Mines | 584,200 | 7,360,920 | 459,300 | 7,835,658 | |||||||
519,000 | 7,131,060 | 1,698,600 | 14,658,918 | ||||||||
Eldorado Gold a | 1,989,400 | 5,311,698 | KVH Industries a | 231,000 | 2,136,750 | ||||||
880,700 | 15,156,847 | ||||||||||
Goldcorp | 854,500 | 13,484,010 | 30,697,902 | ||||||||
Golden Star Resources a | 1,675,300 | 5,193,430 | |||||||||
2,666,800 | 12,160,608 | Total (Cost $214,320,770) | 262,943,530 | ||||||||
971,200 | 17,481,600 | ||||||||||
Minefinders Corporation a | 587,700 | 2,715,174 | Miscellaneous – 1.4% | ||||||||
764,000 | 8,931,160 | Total (Cost $30,789,680) | 31,283,260 | ||||||||
94,926,507 | TOTAL COMMON STOCKS | ||||||||||
(Cost $1,423,152,299) | 1,987,909,726 | ||||||||||
Total (Cost $203,756,947) | 321,301,867 | ||||||||||
REPURCHASE AGREEMENT – 13.5% | |||||||||||
Technology – 11.5% | State Street Bank & Trust Company, | ||||||||||
Aerospace and Defense - 0.7% | 2.55% dated 6/30/05, due 7/1/05, | ||||||||||
Curtiss-Wright | 252,000 | 13,595,400 | maturity value $309,473,920 | ||||||||
Integral Systems | 101,500 | 2,296,945 | (collateralized by obligations of various | ||||||||
U.S. Government Agencies, valued at | |||||||||||
15,892,345 | $319,026,822) | ||||||||||
(Cost $309,452,000) | 309,452,000 | ||||||||||
Components and Systems - 2.1% | |||||||||||
Dionex Corporation a | 150,676 | 6,570,980 | COLLATERAL RECEIVED FOR SECURITIES LOANED – 1.9% | ||||||||
Excel Technology a | 159,900 | 3,885,570 | U.S. Treasury Notes | ||||||||
847,523 | 8,678,636 | 4.75% due 11/15/08 | 4,372 | ||||||||
175,000 | 2,490,250 | U.S. Treasury Strip-Interest | |||||||||
Richardson Electronics | 372,862 | 2,721,893 | due 8/15/06-8/15/15 | 34,061 | |||||||
570,996 | 12,122,245 | U.S. Treasury Strip-Principal | |||||||||
909,200 | 6,919,012 | 7.25% due 5/15/16 | 5,275 | ||||||||
Technitrol | 306,500 | 4,330,845 | Money Market Funds | ||||||||
AIM Liquid Assets Institutional Fund | 27,024,894 | ||||||||||
47,719,431 | AIM Treasury Assets Institutional Fund | 14,863,761 | |||||||||
Janus Institutional Money Market Fund | 2,572,885 | ||||||||||
Distribution - 0.5% | |||||||||||
100,000 | 3,042,000 | (Cost $44,505,248) | 44,505,248 | ||||||||
1,344,234 | 8,603,098 | ||||||||||
TOTAL INVESTMENTS – 102.1% | |||||||||||
11,645,098 | (Cost $1,777,109,547) | 2,341,866,974 | |||||||||
| |||||||||||
IT Services - 1.8% | LIABILITIES LESS CASH AND OTHER ASSETS – (2.1%) | (48,865,163 | ) | ||||||||
Forrester Research a | 237,700 | 4,238,191 | |||||||||
MAXIMUS | 539,200 | 19,028,368 | NET ASSETS – 100.0% | $ | 2,293,001,811 | ||||||
1,158,900 | 16,479,558 | ||||||||||
Syntel | 122,800 | 1,968,484 | |||||||||
41,714,601 | |||||||||||
Semiconductors and Equipment - 2.9% | |||||||||||
225,000 | 6,522,750 | ||||||||||
Cognex Corporation | 202,200 | 5,295,618 |
22 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. |
JUNE 30, 2005 (Unaudited) | |||||||||||||||
Royce Micro-Cap Fund | |||||||||||||||
SHARES | VALUE | SHARES | VALUE | |||||||
COMMON STOCKS – 88.6% | Financial Services – 1.2% | |||||||||
Investment Management - 0.7% | ||||||||||
Consumer Products – 2.8% | ADDENDA Capital | 88,700 | $ | 2,110,353 | ||||||
Apparel and Shoes - 0.5% | U.S. Global Investors Cl. A a | 245,672 | 1,159,572 | |||||||
Steven Madden a | 179,500 | $ | 3,187,920 | Westwood Holdings Group | 40,300 | 721,370 | ||||
Collectibles - 0.1% | 3,991,295 | |||||||||
Enesco Group a | 191,600 | 572,884 | ||||||||
Other Financial Services - 0.5% | ||||||||||
Food/Beverage/Tobacco - 0.6% | Electro Rent a | 228,300 | 3,319,482 | |||||||
CoolBrands International a | 542,600 | 1,824,610 | ||||||||
Green Mountain Coffee Roasters a | 55,700 | 1,889,901 | Total (Cost $5,802,738) | 7,310,777 | ||||||
3,714,511 | Health – 15.0% | |||||||||
Commercial Services - 1.6% | ||||||||||
Sports and Recreation - 0.5% | AMICAS a | 250,000 | 1,132,500 | |||||||
Arctic Cat | 129,200 | 2,652,476 | Discovery Partners International a | 824,400 | 2,357,784 | |||||
First Consulting Group a | 648,729 | 3,327,331 | ||||||||
Other Consumer Products - 1.1% | Hooper Holmes | 633,000 | 2,626,950 | |||||||
Lazare Kaplan International a | 41,500 | 423,300 | ||||||||
RC2 Corporation a | 133,700 | 5,023,109 | 9,444,565 | |||||||
Radica Games | 122,000 | 1,056,276 | ||||||||
Drugs and Biotech - 6.3% | ||||||||||
6,502,685 | Cell Genesys a | 479,500 | 2,565,325 | |||||||
Cerus Corporation a | 405,000 | 1,794,150 | ||||||||
Total (Cost $15,060,771) | 16,630,476 | Compugen a | 326,000 | 997,560 | ||||||
631,200 | 3,212,808 | |||||||||
Consumer Services – 5.7% | DUSA Pharmaceuticals a | 245,600 | 2,284,080 | |||||||
Leisure and Entertainment - 1.7% | Gene Logic a | 1,342,375 | 4,443,261 | |||||||
Dover Downs Gaming & Entertainment | 148,000 | 1,962,480 | Lexicon Genetics a | 890,600 | 4,399,564 | |||||
367,700 | 4,048,377 | Myriad Genetics a | 148,600 | 2,325,590 | ||||||
New Frontier Media a | 652,100 | 4,336,465 | Nuvelo a | 173,600 | 1,341,928 | |||||
Orchid Cellmark a | 431,300 | 4,662,353 | ||||||||
10,347,322 | Pharmacyclics a | 164,000 | 1,231,640 | |||||||
VIVUS a | 1,219,400 | 4,493,489 | ||||||||
Restaurants and Lodgings - 0.3% | Zila a | 1,399,300 | 4,001,998 | |||||||
Benihana Cl. A a | 132,585 | 1,895,965 | ||||||||
37,753,746 | ||||||||||
Retail Stores - 3.7% | ||||||||||
Brookstone a | 210,405 | 3,972,446 | Health Services - 1.7% | |||||||
Buckle (The) | 146,000 | 6,473,640 | Albany Molecular Research a | 119,300 | 1,670,200 | |||||
Cache a | 277,250 | 4,607,895 | HMS Holdings a | 95,000 | 632,700 | |||||
Cato Corporation Cl. A | 249,300 | 5,148,045 | 172,600 | 4,037,114 | ||||||
Duckwall-ALCO Stores a | 83,950 | 1,803,246 | U.S. Physical Therapy a | 196,300 | 3,765,034 | |||||
22,005,272 | 10,105,048 | |||||||||
Total (Cost $23,098,540) | 34,248,559 | Medical Products and Devices - 4.3% | ||||||||
Adeza Biomedical a | 73,000 | 1,239,540 | ||||||||
Financial Intermediaries – 6.1% | 407,100 | 810,129 | ||||||||
Banking - 0.9% | Bruker BioSciences a | 1,242,000 | 4,955,580 | |||||||
Bancorp (The) a | 45,370 | 791,253 | Caliper Life Sciences a | 205,300 | 1,149,680 | |||||
Canadian Western Bank | 206,000 | 4,847,356 | Medical Action Industries a | 84,300 | 1,504,755 | |||||
Merit Medical Systems a | 221,100 | 3,407,151 | ||||||||
5,638,609 | NMT Medical a | 244,200 | 2,442,000 | |||||||
OrthoLogic Corporation a | 234,900 | 909,063 | ||||||||
Insurance - 4.9% | 324,700 | 3,289,211 | ||||||||
American Safety Insurance Holdings a | 257,500 | 3,919,150 | Quinton Cardiology Systems a | 42,000 | 337,680 | |||||
Argonaut Group a | 271,100 | 6,259,699 | Synovis Life Technologies a | 136,800 | 1,091,664 | |||||
Baldwin & Lyons Cl. B | 29,750 | 716,975 | Vital Signs | 28,300 | 1,225,956 | |||||
NYMAGIC | 171,900 | 4,013,865 | Young Innovations | 99,150 | 3,701,270 | |||||
Navigators Group a | 132,100 | 4,566,697 | ||||||||
PXRE Group | 209,100 | 5,273,502 | 26,063,679 | |||||||
United Fire & Casualty Company | 100,000 | 4,442,000 | ||||||||
Personal Care - 1.1% | ||||||||||
29,191,888 | Lifeline Systems a | 96,700 | 3,106,004 | |||||||
Nutraceutical International a | 240,100 | 3,205,335 | ||||||||
Securities Brokers - 0.3% | ||||||||||
Sanders Morris Harris Group | 109,600 | 1,885,120 | 6,311,339 | |||||||
Total (Cost $21,422,084) | 36,715,617 | Total (Cost $80,143,933) | 89,678,377 | |||||||
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 23 |
SCHEDULES OF INVESTMENTS | |||||||||||||||
Royce Micro-Cap Fund (continued) | |||||||||||||||
SHARES | VALUE | SHARES | VALUE | |||||||
Industrial Products – 10.9% | Transportation and Logistics - 2.3% | |||||||||
Automotive - 0.6% | Covenant Transport Cl. A a | 152,900 | $ | 2,018,280 | ||||||
Spartan Motors | 71,000 | $ | 765,380 | Marten Transport a | 161,100 | 3,381,489 | ||||
Wescast Industries Cl. A | 133,100 | 3,025,363 | Patriot Transportation Holding a | 74,800 | 3,808,816 | |||||
Vitran Corporation Cl. A a | 308,050 | 4,867,190 | ||||||||
3,790,743 | ||||||||||
14,075,775 | ||||||||||
Building Systems and Components - 2.4% | ||||||||||
Aaon a | 164,900 | 2,933,571 | Total (Cost $36,603,299) | 46,725,462 | ||||||
Drew Industries a | 155,200 | 7,046,080 | ||||||||
LSI Industries | 304,250 | 4,241,245 | Natural Resources – 19.2% | |||||||
Energy Services - 8.0% | ||||||||||
14,220,896 | Dawson Geophysical a | 362,400 | 7,704,624 | |||||||
Dril-Quip a | 110,900 | 3,217,209 | ||||||||
Construction Materials - 0.1% | Gulf Island Fabrication | 308,700 | 6,136,956 | |||||||
Synalloy Corporation a | 80,700 | 819,105 | GulfMark Offshore a | 141,100 | 3,853,441 | |||||
Input/Output a | 719,000 | 4,515,320 | ||||||||
Industrial Components - 1.8% | NATCO Group Cl. A a | 343,100 | 4,566,661 | |||||||
835,200 | 1,336,320 | RPC | 105,000 | 1,776,600 | ||||||
Intermagnetics General a | 166,700 | 5,127,692 | Tesco Corporation a | 657,100 | 7,188,674 | |||||
Powell Industries a | 227,700 | 4,296,699 | TETRA Technologies a | 146,300 | 4,659,655 | |||||
Total Energy Services Trust | 555,200 | 4,585,883 | ||||||||
10,760,711 | ||||||||||
48,205,023 | ||||||||||
Machinery - 2.1% | ||||||||||
Cascade Corporation | 55,700 | 2,409,025 | Oil and Gas - 1.7% | |||||||
256,483 | 2,744,368 | Edge Petroleum a | 165,700 | 2,588,234 | ||||||
Pason Systems | 421,200 | 7,322,527 | Pioneer Drilling Company a | 305,600 | 4,663,456 | |||||
Savanna Energy Services a | 179,500 | 2,834,905 | ||||||||
12,475,920 | ||||||||||
10,086,595 | ||||||||||
Metal Fabrication and Distribution - 3.1% | ||||||||||
Gibraltar Industries | 152,800 | 2,832,912 | Precious Metals and Mining - 9.1% | |||||||
†Harris Steel Group | 334,100 | 5,617,417 | African Platinum a | 1,800,000 | 717,576 | |||||
†Metal Management | 233,500 | 4,518,225 | 1,036,300 | 3,552,449 | ||||||
NN | 55,700 | 706,276 | Eldorado Gold a | 1,210,000 | 3,230,700 | |||||
126,600 | 3,494,160 | Etruscan Resources a | 2,609,400 | 3,812,297 | ||||||
RTI International Metals a | 40,000 | 1,256,400 | Gammon Lake Resources a | 866,600 | 5,832,218 | |||||
Golden Star Resources a | 847,600 | 2,627,560 | ||||||||
18,425,390 | Kingsgate Consolidated | 713,108 | 1,541,603 | |||||||
Metallica Resources a | 3,960,300 | 4,910,772 | ||||||||
Specialty Chemicals and Materials - 0.1% | Minefinders Corporation a | 701,400 | 3,240,468 | |||||||
American Pacific a | 46,950 | 375,600 | Miramar Mining a | 686,500 | 789,475 | |||||
Northern Orion Resources a | 2,645,800 | 6,482,210 | ||||||||
Other Industrial Products - 0.7% | 739,300 | 5,640,859 | ||||||||
Color Kinetics a | 168,000 | 1,787,520 | Silver Standard Resources a | 374,000 | 4,372,060 | |||||
156,400 | 2,267,800 | Spur Ventures a | 641,200 | 910,617 | ||||||
Quixote Corporation | 22,500 | 441,225 | Western Silver a | 691,100 | 6,012,570 | |||||
322,000 | 1,188,180 | |||||||||
4,496,545 | ||||||||||
54,861,614 | ||||||||||
Total (Cost $58,758,291) | 65,364,910 | |||||||||
Real Estate - 0.4% | ||||||||||
Industrial Services – 7.8% | Kennedy-Wilson a | 208,900 | 2,193,450 | |||||||
Commercial Services - 3.2% | ||||||||||
Bennett Environmental a | 225,000 | 715,500 | Total (Cost $83,994,614) | 115,346,682 | ||||||
Carlisle Holdings | 950,799 | 5,942,494 | ||||||||
CorVel Corporation a | 67,200 | 1,688,064 | Technology – 15.2% | |||||||
Exponent a | 280,817 | 8,025,750 | Aerospace and Defense - 1.4% | |||||||
New Horizons Worldwide a | 250,800 | 877,775 | Cubic Corporation | 63,700 | 1,130,038 | |||||
RCM Technologies a | 93,700 | 397,288 | Ducommun a | 204,600 | 3,459,786 | |||||
RemedyTemp Cl. A a | 139,400 | 1,233,690 | Integral Systems | 173,100 | 3,917,253 | |||||
18,880,561 | 8,507,077 | |||||||||
Engineering and Construction - 0.3% | Components and Systems - 4.0% | |||||||||
Keith Companies a | 70,000 | 1,517,600 | Excel Technology a | 168,200 | 4,087,260 | |||||
Lowrance Electronics | 174,500 | 3,667,990 | ||||||||
Food and Tobacco Processors - 1.0% | MOCON | 45,775 | 430,285 | |||||||
Omega Protein a | 329,800 | 2,084,336 | Metrologic Instruments a | 159,500 | 2,000,130 | |||||
Zapata Corporation a | 673,600 | 4,108,960 | ||||||||
6,193,296 | ||||||||||
Printing - 1.0% | ||||||||||
†Courier Corporation | 84,132 | 3,231,510 | ||||||||
Ennis | 156,000 | 2,826,720 | ||||||||
6,058,230 | ||||||||||
24 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. |
JUNE 30, 2005 (Unaudited) | |||||||||||||||
SHARES | VALUE | VALUE | |||||||||
Technology (continued) | Miscellaneous – 4.7% | ||||||||||
Components and Systems (continued) | Total (Cost $26,942,135) | $ | 28,035,256 | ||||||||
OSI Systems a | 155,100 | $ | 2,449,029 | ||||||||
Perceptron a | 93,400 | 634,186 | TOTAL COMMON STOCKS | ||||||||
Performance Technologies a | 341,200 | 1,886,836 | (Cost $438,163,771) | 531,076,451 | |||||||
Richardson Electronics | 442,500 | 3,230,250 | |||||||||
Rimage Corporation a | 97,500 | 2,069,925 | REPURCHASE AGREEMENT – 11.2% | ||||||||
TTM Technologies a | 427,500 | 3,253,275 | State Street Bank & Trust Company, | ||||||||
2.55% dated 6/30/05, due 7/1/05, | |||||||||||
23,709,166 | maturity value $66,677,723 | ||||||||||
(collateralized by obligations of various | |||||||||||
Distribution - 0.2% | U.S. Government Agencies, valued at | ||||||||||
382,250 | 1,131,460 | $68,342,732) | |||||||||
Nu Horizons Electronics a | 55,000 | 352,000 | (Cost $66,673,000) | 66,673,000 | |||||||
1,483,460 | COLLATERAL RECEIVED FOR SECURITIES LOANED – 1.8% | ||||||||||
U.S. Treasury Bonds | |||||||||||
Internet Software and Services - 0.2% | 5.25%-9.25% due 2/15/16-5/15/30 | 5,405,905 | |||||||||
Inforte Corporation | 357,800 | 1,187,896 | U.S. Treasury Notes | ||||||||
2.875%-4.75% due 11/30/06-7/15/09 | 4,159,077 | ||||||||||
IT Services - 1.0% | U.S. Treasury Strip-Interest | ||||||||||
answerthink a | 325,300 | 1,154,815 | due 8/15/06-8/15/15 | 1,142,972 | |||||||
Forrester Research a | 277,800 | 4,953,174 | U.S. Treasury Strip-Principal | ||||||||
7.25%-9.875% due 11/15/15-5/15/16 | 189,885 | ||||||||||
6,107,989 | |||||||||||
(Cost $10,897,839) | 10,897,839 | ||||||||||
Semiconductors and Equipment - 2.7% | |||||||||||
Cascade Microtech a | 174,500 | 2,547,700 | TOTAL INVESTMENTS – 101.6% | ||||||||
CEVA a | 418,900 | 2,454,754 | (Cost $515,734,610) | 608,647,290 | |||||||
ESS Technology a | 717,900 | 3,022,359 |
| ||||||||
PDF Solutions a | 171,900 | 2,255,328 | LIABILITES LESS CASH AND OTHER ASSETS – (1.6)% | (9,359,705 | ) | ||||||
Semitool a | 329,300 | 3,141,522 | |||||||||
White Electronic Designs a | 459,600 | 2,550,780 | NET ASSETS – 100.0% | $ | 599,287,585 | ||||||
15,972,443 | |||||||||||
Software - 3.5% | |||||||||||
InterVideo a | 125,000 | 1,797,500 | |||||||||
iPass a | 569,000 | 3,448,140 | |||||||||
172,700 | 1,580,205 | ||||||||||
PLATO Learning a | 734,925 | 5,423,746 | |||||||||
493,100 | 1,888,573 | ||||||||||
SPSS a | 72,100 | 1,385,041 | |||||||||
Tengtu International a | 2,772,800 | 471,376 | |||||||||
Transaction Systems Architects Cl. A a | 193,300 | 4,760,979 | |||||||||
20,755,560 | |||||||||||
Telecommunications - 2.2% | |||||||||||
Anaren a | 192,900 | 2,536,635 | |||||||||
Atlantic Tele-Network | 75,000 | 2,160,000 | |||||||||
Brooktrout a | 204,300 | 2,279,988 | |||||||||
Captaris a | 304,000 | 1,258,560 | |||||||||
Globecomm Systems a | 375,800 | 2,258,558 | |||||||||
KVH Industries a | 96,400 | 891,700 | |||||||||
PC-Tel a | 244,100 | 1,911,303 | |||||||||
13,296,744 | |||||||||||
Total (Cost $86,337,366) | 91,020,335 | ||||||||||
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 25 |
SCHEDULES OF INVESTMENTS | |||||||||||||||
Royce Premier Fund | |||||||||||||||
SHARES | VALUE | SHARES | VALUE | |||||||
COMMON STOCKS – 86.6% | Medical Products and Devices - 2.9% | |||||||||
Arrow International | 1,665,825 | $ | 53,139,818 | |||||||
Consumer Products – 11.9% | 1,981,900 | 44,771,121 | ||||||||
Apparel and Shoes - 4.6% | ||||||||||
Polo Ralph Lauren Cl. A | 1,689,100 | $ | 72,817,101 | 97,910,939 | ||||||
Timberland Company Cl. A a | 2,068,600 | 80,096,192 | ||||||||
Total (Cost $223,343,304) | 282,375,803 | |||||||||
152,913,293 | ||||||||||
Industrial Products – 14.8% | ||||||||||
Home Furnishing and Appliances - 0.8% | Automotive - 1.1% | |||||||||
Ethan Allen Interiors | 811,700 | 27,200,067 | Adesa | 1,785,000 | 38,859,450 | |||||
Sports and Recreation - 4.3% | Building Systems and Components - 2.5% | |||||||||
Thor Industries | 2,254,800 | 70,868,364 | Simpson Manufacturing c | 2,763,400 | 84,421,870 | |||||
Winnebago Industries c | 2,244,500 | 73,507,375 | ||||||||
Construction Materials - 2.3% | ||||||||||
144,375,739 | Florida Rock Industries | 1,042,850 | 76,493,048 | |||||||
Other Consumer Products - 2.2% | Machinery - 5.2% | |||||||||
Fossil a | 1,708,600 | 38,785,220 | Lincoln Electric Holdings c | 2,769,597 | 91,812,141 | |||||
Matthews International Cl. A | 876,500 | 34,148,440 | National Instruments | 1,304,087 | 27,646,644 | |||||
Woodward Governor Company c | 640,604 | 53,829,954 | ||||||||
72,933,660 | ||||||||||
173,288,739 | ||||||||||
Total (Cost $316,709,339) | 397,422,759 | |||||||||
Metal Fabrication and Distribution - 3.7% | ||||||||||
Consumer Services – 7.0% | IPSCO | 1,966,100 | 85,918,570 | |||||||
Direct Marketing - 2.7% | Schnitzer Steel Industries Cl. A c | 1,552,600 | 36,796,620 | |||||||
Nu Skin Enterprises Cl. A c | 3,856,500 | 89,856,450 | ||||||||
122,715,190 | ||||||||||
Retail Stores - 4.3% | ||||||||||
Big Lots a | 3,722,500 | 49,285,900 | Total (Cost $339,657,012) | 495,778,297 | ||||||
Charming Shoppes a | 2,471,100 | 23,055,363 | ||||||||
Claire’s Stores | 843,700 | 20,290,985 | Industrial Services – 6.1% | |||||||
Pier 1 Imports | 3,554,300 | 50,435,517 | Commercial Services - 1.1% | |||||||
West Corporation a | 922,400 | 35,420,160 | ||||||||
143,067,765 | ||||||||||
Engineering and Construction - 1.4% | ||||||||||
Total (Cost $205,173,532) | 232,924,215 | Dycom Industries a | 2,358,300 | 46,717,923 | ||||||
Financial Intermediaries – 8.6% | Industrial Distribution - 2.0% | |||||||||
Insurance - 6.5% | Ritchie Bros. Auctioneers c | 1,776,200 | 68,472,510 | |||||||
Alleghany Corporation a | 300,186 | 89,155,242 | ||||||||
Erie Indemnity Company Cl. A | 1,249,200 | 67,769,100 | Transportation and Logistics - 1.6% | |||||||
ProAssurance Corporation a | 827,500 | 34,556,400 | 2,693,600 | 54,733,952 | ||||||
Wesco Financial | 73,400 | 26,424,000 | ||||||||
Total (Cost $139,595,450) | 205,344,545 | |||||||||
217,904,742 | ||||||||||
Natural Resources – 14.8% | ||||||||||
Other Financial Intermediaries - 2.1% | Energy Services - 6.4% | |||||||||
TSX Group | 2,284,000 | 68,061,410 | Ensign Energy Services c | 4,119,900 | 99,433,107 | |||||
4,635,400 | 113,955,475 | |||||||||
Total (Cost $188,092,898) | 285,966,152 | |||||||||
213,388,582 | ||||||||||
Financial Services – 2.5% | ||||||||||
Information and Processing - 1.7% | Oil and Gas - 3.6% | |||||||||
FactSet Research Systems | 56,350 | 2,019,584 | Cimarex Energy a | 1,197,200 | 46,583,052 | |||||
Fair Isaac | 813,000 | 29,674,500 | Unit Corporation a | 1,691,700 | 74,451,717 | |||||
Interactive Data | 1,259,100 | 26,164,098 | ||||||||
121,034,769 | ||||||||||
57,858,182 | ||||||||||
Precious Metals and Mining - 4.8% | ||||||||||
Investment Management - 0.8% | Glamis Gold a | 4,601,100 | 79,184,931 | |||||||
†Federated Investors Cl. B | 834,700 | 25,049,347 | Goldcorp | 1,442,100 | 22,756,338 | |||||
Meridian Gold a | 3,246,900 | 58,444,200 | ||||||||
Total (Cost $71,677,535) | 82,907,529 | |||||||||
160,385,469 | ||||||||||
Health – 8.4% | ||||||||||
Commercial Services - 0.9% | Total (Cost $326,744,593) | 494,808,820 | ||||||||
IDEXX Laboratories a | 500,200 | 31,177,466 | ||||||||
Technology – 12.0% | ||||||||||
Drugs and Biotech - 4.6% | Aerospace and Defense - 0.7% | |||||||||
Endo Pharmaceuticals Holdings a | 4,064,150 | 106,805,862 | Curtiss-Wright | 451,900 | 24,380,005 | |||||
Perrigo Company | 3,334,400 | 46,481,536 | ||||||||
153,287,398 | ||||||||||
26 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. |
JUNE 30, 2005 (Unaudited) | ||
Royce Low-Priced Stock Fund | ||
SHARES | VALUE | SHARES | VALUE | ||||||||
Technology (continued) | COMMON STOCKS – 91.8% | ||||||||||
Components and Systems - 2.9% | |||||||||||
Dionex Corporation a | 967,500 | $ | 42,192,675 | Consumer Products – 10.1% | |||||||
†Tektronix | 1,469,400 | 34,192,938 | Apparel and Shoes - 1.7% | ||||||||
Zebra Technologies Cl. A a | 491,400 | 21,518,406 | K-Swiss Cl. A | 827,000 | $ | 26,745,180 | |||||
Steven Madden a | 616,000 | 10,940,160 | |||||||||
97,904,019 | Polo Ralph Lauren Cl. A | 250,000 | 10,777,500 | ||||||||
Stride Rite | 1,373,200 | 18,936,428 | |||||||||
Distribution - 0.6% | |||||||||||
Arrow Electronics a | 709,100 | 19,259,156 | 67,399,268 | ||||||||
IT Services - 3.9% | Collectibles - 0.7% | ||||||||||
Gartner Cl. A a | 2,898,600 | 30,783,132 | Topps Company (The) c | 2,604,616 | 26,124,298 | ||||||
Keane a | 1,462,200 | 20,032,140 | |||||||||
MAXIMUS | 732,600 | 25,853,454 | Food/Beverage/Tobacco - 0.4% | ||||||||
Perot Systems Cl. A a | 3,770,900 | 53,622,198 | Boston Beer Company Cl. A a | 242,800 | 5,448,432 | ||||||
3,331,600 | 11,203,226 | ||||||||||
130,290,924 | |||||||||||
16,651,658 | |||||||||||
Semiconductors and Equipment - 2.8% | |||||||||||
1,731,300 | 50,190,387 | Home Furnishing and Appliances - 1.8% | |||||||||
Cognex Corporation | 1,651,000 | 43,239,690 | La-Z-Boy | 800,900 | 11,669,113 | ||||||
Natuzzi ADR b | 2,718,800 | 22,131,032 | |||||||||
93,430,077 | 1,843,400 | 39,504,062 | |||||||||
Telecommunications - 1.1% | 73,304,207 | ||||||||||
4,349,500 | 37,536,185 | ||||||||||
Publishing - 0.5% | |||||||||||
Total (Cost $339,111,635) | 402,800,366 | Journal Communications Cl. A | 1,117,200 | 18,768,960 | |||||||
Miscellaneous – 0.5% | Sports and Recreation - 3.6% | ||||||||||
Total (Cost $14,688,798) | 16,659,247 | Arctic Cat c | 1,398,360 | 28,708,331 | |||||||
Callaway Golf Company | 3,444,400 | 53,147,092 | |||||||||
TOTAL COMMON STOCKS | Monaco Coach | 865,650 | 14,880,524 | ||||||||
(Cost $2,164,794,096) | 2,896,987,733 | Oakley | 2,123,300 | 36,159,799 | |||||||
Sturm, Ruger & Company | 991,800 | 8,301,366 | |||||||||
REPURCHASE AGREEMENT – 13.5% | |||||||||||
State Street Bank & Trust Company, | 141,197,112 | ||||||||||
2.55% dated 6/30/05, due 7/1/05, | |||||||||||
maturity value $452,591,056 | Other Consumer Products - 1.4% | ||||||||||
(collateralized by obligations of various | Fossil a | 1,594,000 | 36,183,800 | ||||||||
U.S. Government Agencies, valued at | 1,738,000 | 19,639,400 | |||||||||
$463,876,220) | |||||||||||
(Cost $452,559,000) | 452,559,000 | 55,823,200 | |||||||||
COLLATERAL RECEIVED FOR SECURITIES LOANED – 0.1% | Total (Cost $381,181,774) | 399,268,703 | |||||||||
U.S. Treasury Bonds | |||||||||||
5.25%-6.375% due 8/15/27-2/15/29 | 194,592 | Consumer Services – 10.5% | |||||||||
Direct Marketing - 1.9% | |||||||||||
(Cost $194,592) | 194,592 | Nu Skin Enterprises Cl. A | 3,298,500 | 76,855,050 | |||||||
TOTAL INVESTMENTS – 100.2% | Leisure and Entertainment - 0.9% | ||||||||||
(Cost $2,617,547,688) | 3,349,741,325 | 4Kids Entertainment a | 589,100 | 11,711,308 | |||||||
| 1,452,438 | 15,991,342 | |||||||||
LIABILITES LESS CASH AND OTHER ASSETS – (0.2)% | (7,692,798 | ) | 1,159,500 | 7,710,675 | |||||||
NET ASSETS – 100.0% | $ | 3,342,048,527 | 35,413,325 | ||||||||
Restaurants and Lodgings - 1.5% | |||||||||||
Applebee’s International | 551,000 | 14,595,990 | |||||||||
Ruby Tuesday | 843,500 | 21,846,650 | |||||||||
Ryan’s Restaurant Group a | 1,438,900 | 20,158,989 | |||||||||
Steak n Shake Company (The) a | 193,000 | 3,593,660 | |||||||||
60,195,289 | |||||||||||
Retail Stores - 5.5% | |||||||||||
AnnTaylor Stores a | 805,000 | 19,545,400 | |||||||||
Big Lots a | 2,459,700 | 32,566,428 | |||||||||
Buckle (The) | 612,500 | 27,158,250 | |||||||||
1,067,800 | 17,746,836 | ||||||||||
Cato Corporation Cl. A | 888,750 | 18,352,687 | |||||||||
Charming Shoppes a | 2,822,300 | 26,332,059 | |||||||||
Circuit City Stores | 716,300 | 12,384,827 | |||||||||
Claire’s Stores | 1,317,200 | 31,678,660 |
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 27 |
SCHEDULES OF INVESTMENTS | |||||||||||||||
Royce Low-Priced Stock Fund (continued) | |||||||||||||||
SHARES | VALUE | SHARES | VALUE | |||||||
Consumer Services (continued) | Perrigo Company | 4,257,800 | $ | 59,353,732 | ||||||
Retail Stores (continued) | 2,179,600 | 22,711,432 | ||||||||
Hibbett Sporting Goods a | 73,425 | $ | 2,778,402 | 3,638,300 | 13,407,136 | |||||
Pier 1 Imports | 2,201,600 | 31,240,704 | ||||||||
296,316,116 | ||||||||||
219,784,253 | ||||||||||
Health Services - 0.6% | ||||||||||
Other Consumer Services - 0.7% | Cross Country Healthcare a | 765,500 | 13,013,500 | |||||||
Corinthian Colleges a | 1,410,000 | 18,005,700 | MedQuist a | 750,200 | 9,752,600 | |||||
MoneyGram International | 405,000 | 7,743,600 | ||||||||
22,766,100 | ||||||||||
25,749,300 | ||||||||||
Medical Products and Devices - 2.9% | ||||||||||
Total (Cost $338,815,738) | 417,997,217 | 1,834,100 | 8,015,017 | |||||||
6,009,800 | 23,979,102 | |||||||||
Financial Intermediaries – 4.9% | Caliper Life Sciences a | 1,173,200 | 6,569,920 | |||||||
Banking - 0.1% | CONMED Corporation a | 205,500 | 6,323,235 | |||||||
Bancorp (The) a | 245,870 | 4,287,973 | Medical Action Industries a | 489,500 | 8,737,575 | |||||
984,000 | 9,967,920 | |||||||||
Insurance - 3.7% | Thoratec Corporation a | 2,354,200 | 36,113,428 | |||||||
Argonaut Group a | 1,330,000 | 30,709,700 | Viasys Healthcare a | 777,200 | 17,556,948 | |||||
Aspen Insurance Holdings | 903,000 | 24,886,680 | ||||||||
CNA Surety a | 870,100 | 12,920,985 | 117,263,145 | |||||||
NYMAGIC | 386,500 | 9,024,775 | ||||||||
Navigators Group a | 503,500 | 17,405,995 | Personal Care - 0.2% | |||||||
Ohio Casualty | 610,100 | 14,752,218 | Helen of Troy a | 288,100 | 7,335,026 | |||||
Phoenix Companies (The) | 922,900 | 10,982,510 | ||||||||
PXRE Group | 635,800 | 16,034,876 | Total (Cost $450,818,238) | 466,598,061 | ||||||
Scottish Re Group | 350,000 | 8,484,000 | ||||||||
Industrial Products – 7.8% | ||||||||||
145,201,739 | Automotive - 1.2% | |||||||||
Adesa | 1,984,000 | 43,191,680 | ||||||||
Securities Brokers - 0.3% | LKQ Corporation a | 149,100 | 4,048,065 | |||||||
Knight Capital Group Cl. A a | 1,452,300 | 11,066,526 | ||||||||
47,239,745 | ||||||||||
Other Financial Intermediaries - 0.8% | ||||||||||
TSX Group | 1,203,200 | 35,854,417 | Building Systems and Components - 0.2% | |||||||
Aaon a | 347,500 | 6,182,025 | ||||||||
Total (Cost $138,175,656) | 196,410,655 | |||||||||
Industrial Components - 0.2% | ||||||||||
Financial Services – 1.6% | Powell Industries a | 503,000 | 9,491,610 | |||||||
Information and Processing - 1.5% | ||||||||||
3,524,700 | 63,409,353 | Machinery - 1.3% | ||||||||
Lincoln Electric Holdings | 487,800 | 16,170,570 | ||||||||
Investment Management - 0.1% | Pason Systems c | 1,996,400 | 34,707,248 | |||||||
Cohen & Steers | 85,200 | 1,755,972 | ||||||||
50,877,818 | ||||||||||
Total (Cost $48,864,962) | 65,165,325 | |||||||||
Metal Fabrication and Distribution - 3.6% | ||||||||||
Health – 11.8% | Harris Steel Group c | 1,584,000 | 26,632,713 | |||||||
Commercial Services - 0.6% | IPSCO | 1,496,600 | 65,401,420 | |||||||
AMN Healthcare Services a | 292,227 | 4,392,172 | Metal Management c | 1,883,700 | 36,449,595 | |||||
1,885,200 | 5,391,672 | Schnitzer Steel Industries Cl. A | 632,200 | 14,983,140 | ||||||
Hooper Holmes | 2,290,900 | 9,507,235 | ||||||||
PAREXEL International a | 182,700 | 3,626,595 | 143,466,868 | |||||||
22,917,674 | Specialty Chemicals and Materials - 0.6% | |||||||||
Schulman (A.) | 1,356,600 | 24,269,574 | ||||||||
Drugs and Biotech - 7.5% | ||||||||||
Abgenix a | 785,800 | 6,742,164 | Other Industrial Products - 0.7% | |||||||
Applera Corporation- Celera | Color Kinetics a | 863,900 | 9,191,896 | |||||||
Genomics Group a | 453,400 | 4,973,798 | Steelcase Cl. A | 1,291,500 | 17,887,275 | |||||
3,016,600 | 16,138,810 | |||||||||
Connetics Corporation a | 293,200 | 5,172,048 | 27,079,171 | |||||||
916,000 | 4,790,680 | |||||||||
Elan Corporation ADR a,b,d | 5,196,800 | 35,442,176 | Total (Cost $248,077,396) | 308,606,811 | ||||||
Endo Pharmaceuticals Holdings a | 2,971,900 | 78,101,532 | ||||||||
Exelixis a | 607,600 | 4,514,468 | Industrial Services – 6.3% | |||||||
Human Genome Sciences a | 290,700 | 3,366,306 | Commercial Services - 2.2% | |||||||
4,033,800 | 19,926,972 | Century Business Services a | 1,000,000 | 4,050,000 | ||||||
Maxygen a | 790,200 | 5,420,772 | Copart a | 460,143 | 10,951,403 | |||||
Myriad Genetics a | 1,038,600 | 16,254,090 | Digital Theater Systems a | 328,000 | 5,848,240 | |||||
Exponent a | 200,200 | 5,721,716 | ||||||||
FTI Consulting a | 883,700 | 18,469,330 | ||||||||
LECG Corporation a | 396,800 | 8,435,968 | ||||||||
844,000 | 10,406,520 |
28 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. |
JUNE 30, 2005 (Unaudited) | |||||||||||||||
SHARES | VALUE | SHARES | VALUE | |||||||
Industrial Services (continued) | Technology – 17.0% | |||||||||
Commercial Services (continued) | Aerospace and Defense - 0.4% | |||||||||
Spherion Corporation a | 619,000 | $ | 4,085,400 | Integral Systems c | 599,500 | $ | 13,566,685 | |||
West Corporation a | 496,800 | 19,077,120 | ||||||||
Components and Systems - 2.5% | ||||||||||
87,045,697 | Adaptec a | 1,576,300 | 6,116,044 | |||||||
490,300 | 10,972,914 | |||||||||
Engineering and Construction - 2.7% | KEMET Corporation a | 1,378,800 | 8,686,440 | |||||||
Dycom Industries a | 1,888,400 | 37,409,204 | Methode Electronics | 955,700 | 11,344,159 | |||||
2,644,900 | 42,397,747 | TTM Technologies a | 1,834,100 | 13,957,501 | ||||||
1,463,300 | 27,553,939 | Technitrol | 1,987,100 | 28,077,723 | ||||||
Tektronix | 907,300 | 21,112,871 | ||||||||
107,360,890 | ||||||||||
100,267,652 | ||||||||||
Food and Tobacco Processors - 0.3% | ||||||||||
1,672,500 | 10,570,200 | Internet Software and Services - 0.4% | ||||||||
RealNetworks a | 3,430,900 | 17,051,573 | ||||||||
Printing - 0.2% | ||||||||||
Ennis | 472,500 | 8,561,700 | IT Services - 3.2% | |||||||
CIBER a | 323,700 | 2,583,126 | ||||||||
Transportation and Logistics - 0.9% | 1,238,600 | 22,084,238 | ||||||||
Heartland Express | 800,000 | 15,544,000 | MAXIMUS | 237,900 | 8,395,491 | |||||
Knight Transportation | 50,000 | 1,216,500 | Perot Systems Cl. A a | 4,878,800 | 69,376,536 | |||||
Werner Enterprises | 975,000 | 19,149,000 | Syntel | 1,552,400 | 24,884,972 | |||||
35,909,500 | 127,324,363 | |||||||||
Total (Cost $213,976,269) | 249,447,987 | Semiconductors and Equipment - 4.2% | ||||||||
Catalyst Semiconductor a | 496,200 | 2,178,318 | ||||||||
Natural Resources – 19.5% | 1,306,800 | 7,657,848 | ||||||||
Energy Services - 6.4% | Cognex Corporation | 70,000 | 1,833,300 | |||||||
Core Laboratories a | 257,500 | 6,906,150 | Credence Systems a | 2,425,000 | 21,946,250 | |||||
Dril-Quip a | 287,400 | 8,337,474 | DSP Group a | 120,000 | 2,864,400 | |||||
Ensign Energy Services | 3,177,300 | 76,683,612 | 2,258,900 | 9,509,969 | ||||||
Global Industries a | 1,302,350 | 11,069,975 | Entegris a | 1,915,300 | 18,961,470 | |||||
6,652,900 | 41,780,212 | 3,106,850 | 46,260,996 | |||||||
Maverick Tube a | 532,900 | 15,880,420 | Fairchild Semiconductor | |||||||
Oil States International a | 836,200 | 21,047,154 | International Cl. A a | 1,092,500 | 16,114,375 | |||||
Patterson-UTI Energy | 177,000 | 4,925,910 | Helix Technology | 446,400 | 5,928,192 | |||||
2,227,700 | 24,371,038 | LTX Corporation a | 1,247,600 | 6,188,096 | ||||||
TETRA Technologies a | 339,800 | 10,822,630 | MKS Instruments a | 100,000 | 1,689,000 | |||||
Total Energy Services Trust c | 2,155,700 | 17,805,815 | OmniVision Technologies a | 463,400 | 6,297,606 | |||||
Veritas DGC a | 556,300 | 15,431,762 | 1,771,233 | 16,897,563 | ||||||
255,062,152 | 164,327,383 | |||||||||
Oil and Gas - 2.5% | Software - 4.0% | |||||||||
Remington Oil & Gas a | 50,000 | 1,785,000 | 3,190,600 | 19,335,036 | ||||||
St. Mary Land & Exploration Company | 628,000 | 18,199,440 | 724,700 | 6,631,005 | ||||||
Unit Corporation a | 1,748,900 | 76,969,089 | ManTech International Cl. A a | 1,233,700 | 38,294,048 | |||||
PLATO Learning a | 976,400 | 7,205,832 | ||||||||
96,953,529 | SPSS a | 183,972 | 3,534,102 | |||||||
THQ a | 684,000 | 20,020,680 | ||||||||
Precious Metals and Mining - 10.6% | 2,561,000 | 63,077,430 | ||||||||
African Platinum a | 14,107,468 | 5,623,989 | ||||||||
Agnico-Eagle Mines | 3,535,000 | 44,541,000 | 158,098,133 | |||||||
1,897,000 | 26,064,780 | |||||||||
Eldorado Gold a | 5,270,100 | 14,071,167 | Telecommunications - 2.3% | |||||||
Gammon Lake Resources a | 3,005,800 | 20,229,034 | CommScope a | 1,050,700 | 18,292,687 | |||||
Glamis Gold a | 4,384,000 | 75,448,640 | Foundry Networks a | 4,217,800 | 36,399,614 | |||||
Goldcorp | 675,000 | 10,651,500 | 1,202,200 | 11,120,350 | ||||||
4,685,000 | 14,523,500 | 1,358,600 | 10,637,838 | |||||||
11,741,500 | 53,541,240 | Premiere Global Services a | 500,000 | 5,645,000 | ||||||
Meridian Gold a | 4,236,600 | 76,258,800 | ViaSat a | 513,300 | 10,435,389 | |||||
2,174,300 | 10,045,266 | |||||||||
8,832,600 | 21,639,870 | 92,530,878 | ||||||||
3,351,700 | 39,181,373 | |||||||||
Stillwater Mining Company a | 935,556 | 6,941,826 | Total (Cost $641,150,879) | 673,166,667 | ||||||
418,761,985 | ||||||||||
Total (Cost $600,709,800) | 770,777,666 | |||||||||
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 29 |
SCHEDULES OF INVESTMENTS | |||||||||||||||
Royce Low-Priced Stock Fund (continued) | Royce Total Return Fund | ||||||||||||||
VALUE | SHARES | VALUE | |||||||||
Miscellaneous – 2.3% | COMMON STOCKS – 85.9% | ||||||||||
Total (Cost $86,381,967) | $ | 91,320,912 |
| ||||||||
Consumer Products – 6.2% | |||||||||||
TOTAL COMMON STOCKS | Apparel and Shoes - 2.1% | ||||||||||
(Cost $3,148,152,679) | 3,638,760,004 | Kenneth Cole Productions Cl. A | 134,700 | $ | 4,191,864 | ||||||
Cutter & Buck | 533,141 | 6,877,519 | |||||||||
REPURCHASE AGREEMENT – 8.5% | Delta Apparelc | 763,460 | 9,871,538 | ||||||||
State Street Bank & Trust Company, 2.55% dated 6/30/05, due 7/1/05, maturity value $336,254,816 (collateralized by obligations of various U.S. Government Agencies, valued at $344,641,646) (Cost $336,231,000) | 336,231,000 | Haggar | 38,212 | 777,614 | |||||||
Jones Apparel Group | 492,000 | 15,271,680 | |||||||||
K-Swiss Cl. A | 173,600 | 5,614,224 | |||||||||
Oshkosh B’Gosh Cl. A | 333,400 | 8,665,066 | |||||||||
COLLATERAL RECEIVED FOR SECURITIES LOANED – 1.6% | Polo Ralph Lauren Cl. A | 511,300 | 22,042,143 | ||||||||
U.S. Treasury Bills | Reebok International | 121,400 | 5,078,162 | ||||||||
due 9/15/05 | 66,894 | Saucony Cl. B | 144,837 | 3,302,284 | |||||||
U.S. Treasury Bonds | Stride Rite | 290,600 | 4,007,374 | ||||||||
5.25%-11.25% due 2/15/15-5/15/30 | 41,098,061 | Timberland Company Cl. Aa | 386,000 | 14,945,920 | |||||||
U.S. Treasury Notes | Wolverine World Wide | 315,000 | 7,563,150 | ||||||||
1.625%-4.75% due 9/30/05-8/15/14 | 20,532,448 | ||||||||||
U.S. Treasury Strip-Interest | 108,208,538 | ||||||||||
due 8/15/06-8/15/15 | 2,007,010 | ||||||||||
U.S. Treasury Strip-Principal | Collectibles - 0.3% | ||||||||||
7.25%-9.875% due 11/15/15-5/15/16 | 584,670 | Action Performance Companiesa | 639,100 | 5,636,862 | |||||||
Russ Berrie & Company | 669,000 | 8,569,890 | |||||||||
(Cost $64,289,083) | 64,289,083 | ||||||||||
14,206,752 | |||||||||||
TOTAL INVESTMENTS – 101.9% | |||||||||||
(Cost $3,548,672,762) | 4,039,280,087 | Food/Beverage/Tobacco - 0.5% | |||||||||
| Hershey Creamery Company | 173 | 389,250 | ||||||||
LIABILITES LESS CASH AND OTHER ASSETS – (1.9)% | (74,646,723 | ) | Lancaster Colony | 231,300 | 9,927,396 | ||||||
J.M. Smucker Company (The) | 255,200 | 11,979,088 | |||||||||
NET ASSETS – 100.0% | $ | 3,964,633,364 | Tootsie Roll Industries | 218,205 | 6,382,496 | ||||||
28,678,230 | |||||||||||
Home Furnishing and Appliances - 1.6% | |||||||||||
American Woodmark | 108,680 | 3,261,487 | |||||||||
Ethan Allen Interiors | 598,000 | 20,038,980 | |||||||||
Fedders Corporation | 1,536,400 | 3,380,080 | |||||||||
Flexsteel Industries | 225,676 | 3,175,261 | |||||||||
Furniture Brands International | 346,300 | 7,483,543 | |||||||||
Hooker Furniture | 85,735 | 1,497,790 | |||||||||
La-Z-Boy | 1,457,300 | 21,232,861 | |||||||||
Lifetime Brands | 264,995 | 5,175,352 | |||||||||
Natuzzi ADRb | 1,211,200 | 9,859,168 | |||||||||
Stanley Furniture Company | 209,020 | 5,133,531 | |||||||||
80,238,053 | |||||||||||
Publishing - 0.4% | |||||||||||
Journal Communications Cl. A | 692,450 | 11,633,160 | |||||||||
Reader’s Digest Association | 436,100 | 7,195,650 | |||||||||
18,828,810 | |||||||||||
Sports and Recreation - 0.8% | |||||||||||
Callaway Golf Company | 1,168,300 | 18,026,869 | |||||||||
Monaco Coach | 185,800 | 3,193,902 | |||||||||
Sturm, Ruger & Company | 556,400 | 4,657,068 | |||||||||
Thor Industries | 95,200 | 2,992,136 | |||||||||
Winnebago Industries | 309,600 | 10,139,400 | |||||||||
39,009,375 | |||||||||||
Other Consumer Products - 0.5% | |||||||||||
Blyth | 254,100 | 7,127,505 | |||||||||
Burnham Holdings Cl. A | 93,412 | 2,335,300 | |||||||||
Matthews International Cl. A | 255,600 | 9,958,176 | |||||||||
Radica Games | 72,400 | 626,839 | |||||||||
Starrett (L.S.) Company Cl. A | 318,000 | 5,800,320 | |||||||||
25,848,140 | |||||||||||
Total (Cost $305,304,230) | 315,017,898 | ||||||||||
30 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. |
JUNE 30, 2005 (Unaudited) | |||||||||||||||
SHARES | VALUE | SHARES | VALUE | |||||||||
Consumer Services – 6.1% | Central Pacific Financial | 20,000 | $ | 712,000 | ||||||||
Direct Marketing - 0.2% | Chittenden Corporation | 240,625 | 6,545,000 | |||||||||
Nu Skin Enterprises Cl. A | 535,000 | $ | 12,465,500 | Fauquier Bankshares c | 213,300 | 5,545,800 | ||||||
First National Bank Alaska | 980 | 2,165,800 | ||||||||||
Leisure and Entertainment - 0.2% | HopFed Bancorp | 56,000 | 879,760 | |||||||||
Dover Downs Gaming & Entertainment | 217,100 | 2,878,746 | IndyMac Bancorp | 34,000 | 1,384,820 | |||||||
International Speedway Cl. A | 110,000 | 6,188,600 | International Bancshares | 131,556 | 3,721,726 | |||||||
Regal Entertainment Group Cl. A | 250,100 | 4,721,888 | Mercantile Bankshares | 237,500 | 12,238,375 | |||||||
240,000 | 1,622,400 | |||||||||||
13,789,234 | Oriental Financial Group | 130,248 | 1,987,584 | |||||||||
Park National | 62,370 | 6,891,885 | ||||||||||
Media and Broadcasting - 0.1% | Partners Trust Financial Group | 728,100 | 7,776,108 | |||||||||
Nelson (Thomas) | 42,900 | 933,504 | Peapack-Gladstone Financial | 236,691 | 6,556,341 | |||||||
R &G Financial Cl. B | 38,400 | 679,296 | ||||||||||
Restaurants and Lodgings - 1.8% | Sterling Bancorp | 262,250 | 5,599,038 | |||||||||
Bob Evans Farms | 783,000 | 18,259,560 | Susquehanna Bancshares | 343,500 | 8,446,665 | |||||||
CBRL Group | 281,700 | 10,946,862 | Timberland Bancorp | 134,600 | 3,021,770 | |||||||
CEC Entertainment a | 327,800 | 13,797,102 | Wilmington Trust | 510,300 | 18,375,903 | |||||||
IHOP Corporation | 367,000 | 15,924,130 | ||||||||||
Landry’s Restaurants | 40,600 | 1,221,654 | 173,327,873 | |||||||||
Lone Star Steakhouse & Saloon | 424,800 | 12,918,168 | ||||||||||
Ruby Tuesday | 580,000 | 15,022,000 | Insurance - 8.3% | |||||||||
Ryan’s Restaurant Group a | 161,600 | 2,264,016 | Alleghany Corporation a | 94,044 | 27,931,068 | |||||||
American Financial Group | 324,100 | 10,863,832 | ||||||||||
90,353,492 | American National Insurance | 155,493 | 17,833,492 | |||||||||
AmerUs Group | 66,500 | 3,195,325 | ||||||||||
Retail Stores - 3.5% | Argonaut Group a | 318,000 | 7,342,620 | |||||||||
AnnTaylor Stores a | 63,700 | 1,546,636 | Aspen Insurance Holdings | 487,100 | 13,424,476 | |||||||
Big Lots a | 549,500 | 7,275,380 | Assured Guaranty | 177,700 | 4,151,072 | |||||||
Borders Group | 541,600 | 13,707,896 | Baldwin & Lyons Cl. B | 494,911 | 11,927,355 | |||||||
Buckle (The) | 112,600 | 4,992,684 | CNA Surety a | 447,000 | 6,637,950 | |||||||
Cato Corporation Cl. A | 453,750 | 9,369,937 | Capital Title Group | 486,374 | 3,307,343 | |||||||
Claire’s Stores | 670,800 | 16,132,740 | Commerce Group | 464,300 | 28,837,673 | |||||||
Deb Shops | 466,388 | 13,511,260 | Endurance Specialty Holdings | 94,400 | 3,570,208 | |||||||
Dress Barn (The)a | 1,032,676 | 23,369,458 | Erie Indemnity Company Cl. A | 457,200 | 24,803,100 | |||||||
Finish Line (The) Cl. A | 30,300 | 573,276 | Fidelity National Financial | 93,643 | 3,342,119 | |||||||
42,800 | 43,228 | First American | 99,000 | 3,973,860 | ||||||||
Movie Gallery | 93,400 | 2,468,562 | Horace Mann Educators | 437,200 | 8,228,104 | |||||||
Neiman Marcus Group (The) Cl. A | 188,100 | 18,230,652 | Hub International | 381,000 | 7,425,690 | |||||||
Payless ShoeSource a | 829,300 | 15,922,560 | IPC Holdings | 279,300 | 11,065,866 | |||||||
Pep Boys- Manny, Moe & Jack | 415,000 | 5,619,100 | Independence Holding | 379,924 | 6,705,659 | |||||||
Pier 1 Imports | 1,213,400 | 17,218,146 | Infinity Property & Casualty | 211,800 | 7,387,584 | |||||||
Talbots | 271,800 | 8,825,346 | LandAmerica Financial Group | 78,700 | 4,672,419 | |||||||
Tiffany & Co. | 476,200 | 15,600,312 | Leucadia National | 463,200 | 17,893,416 | |||||||
Weis Markets | 57,800 | 2,242,062 | Markel Corporation a | 53,800 | 18,238,200 | |||||||
Montpelier Re Holdings | 190,100 | 6,573,658 | ||||||||||
176,649,235 | NYMAGIC | 167,000 | 3,899,450 | |||||||||
Ohio Casualty | 377,700 | 9,132,786 | ||||||||||
Other Consumer Services - 0.3% | PartnerRe | 2,600 | 167,492 | |||||||||
Ambassadors Group | 38,349 | 1,426,199 | Phoenix Companies (The) | 269,600 | 3,208,240 | |||||||
Jackson Hewitt Tax Service | 113,200 | 2,676,048 | PXRE Group | 262,124 | 6,610,767 | |||||||
MoneyGram International | 545,500 | 10,429,960 | Protective Life | 232,000 | 9,795,040 | |||||||
RLI | 438,400 | 19,552,640 | ||||||||||
14,532,207 | Reinsurance Group of America | 163,600 | 7,609,036 | |||||||||
Safety Insurance Group | 81,555 | 2,753,297 | ||||||||||
Total (Cost $264,287,117) | 308,723,172 | Scottish Re Group | 447,900 | 10,857,096 | ||||||||
Selective Insurance Group | 96,438 | 4,778,503 | ||||||||||
Financial Intermediaries – 14.7% | Stewart Information Services | 19,600 | 823,200 | |||||||||
Banking - 3.4% | Transatlantic Holdings | 272,850 | 15,230,487 | |||||||||
Abigail Adams National Bancorp c | 244,400 | 3,971,500 | 21st Century Insurance Group | 370,100 | 5,492,284 | |||||||
Anchor BanCorp Wisconsin | 266,200 | 8,055,212 | UICI | 49,100 | 1,461,707 | |||||||
Arrow Financial | 265,038 | 7,378,658 | ||||||||||
BOK Financial | 452,675 | 20,877,371 | ||||||||||
Bancorp Rhode Island | 203,200 | 7,437,120 | ||||||||||
Bank of Hawaii | 191,700 | 9,728,775 | ||||||||||
Bank of NT Butterfield | 121,900 | 5,058,850 | ||||||||||
Boston Private Financial Holdings | 258,500 | 6,514,200 | ||||||||||
Canadian Western Bank | �� | 431,600 | 10,155,916 |
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 31 |
SCHEDULES OF INVESTMENTS | |||||||||||||||
Royce Total Return Fund (continued) | |||||||||||||||
SHARES | VALUE | SHARES | VALUE | |||||||||
Financial Intermediaries (continued) | Other Financial Services - 0.4% | |||||||||||
Insurance (continued) | American Capital Strategies | 55,200 | $ | 1,993,272 | ||||||||
United Fire & Casualty Company | 542,046 | $ | 24,077,683 | Fremont General | 34,100 | 829,653 | ||||||
Wesco Financial | 29,930 | 10,774,800 | GATX Corporation | 383,500 | 13,230,750 | |||||||
Willis Group Holdings | 197,000 | 6,445,840 | London Stock Exchange | 652,629 | 5,747,187 | |||||||
Zenith National Insurance | 262,500 | 17,813,250 | ||||||||||
21,800,862 | ||||||||||||
419,815,687 | ||||||||||||
Total (Cost $313,998,408) | 387,709,156 | |||||||||||
Real Estate Investment Trusts - 1.5% | ||||||||||||
Captial Trust Cl. A | 74,600 | 2,492,386 | Health – 4.4% | |||||||||
Cousins Properties | 223,500 | 6,611,130 | Commercial Services - 0.8% | |||||||||
Essex Property Trust | 83,000 | 6,893,980 | Hooper Holmes | 2,566,608 | 10,651,423 | |||||||
Gladstone Commercial | 4,700 | 74,072 | IDEXX Laboratories a | 156,500 | 9,754,645 | |||||||
PS Business Parks | 168,500 | 7,489,825 | Owens & Minor | 671,300 | 21,716,555 | |||||||
Public Storage | 195,000 | 12,333,750 | ||||||||||
Rayonier | 471,357 | 24,996,062 | 42,122,623 | |||||||||
Vornado Realty Trust | 183,100 | 14,721,240 | ||||||||||
Drugs and Biotech - 0.2% | ||||||||||||
75,612,445 | Perrigo Company | 607,500 | 8,468,550 | |||||||||
Securities Brokers - 0.6% | Health Services - 0.5% | |||||||||||
First Albany | 206,100 | 1,228,356 | Healthcare Services Group | 179,292 | 3,600,183 | |||||||
Friedman, Billings, Ramsey Group Cl. A | 520,200 | 7,438,860 | Health Management Associates Cl. A | 50,000 | 1,309,000 | |||||||
Piper Jaffray Companies a | 311,000 | 9,463,730 | NDCHealth Corporation a | 20,900 | 375,573 | |||||||
Raymond James Financial | 334,350 | 9,445,387 | Omnicare | 38,800 | 1,646,284 | |||||||
Option Care | 102,010 | 1,438,341 | ||||||||||
27,576,333 | PolyMedica Corporation | 422,900 | 15,080,614 | |||||||||
Universal Health Services Cl. B | 78,500 | 4,881,130 | ||||||||||
Other Financial Intermediaries - 0.9% | ||||||||||||
Student Loan | 71,900 | 15,803,620 | 28,331,125 | |||||||||
TSX Group | 1,052,400 | 31,360,695 | ||||||||||
Medical Products and Devices - 2.4% | ||||||||||||
47,164,315 | Applera Corporation- Applied Biosystems Group | 548,400 | 10,787,028 | |||||||||
Arrow International | 542,100 | 17,292,990 | ||||||||||
Total (Cost $565,190,377) | 743,496,653 | Datascope | 482,734 | 16,099,179 | ||||||||
Diagnostic Products | 261,300 | 12,367,329 | ||||||||||
Financial Services – 7.7% | Invacare Corporation | 505,500 | 22,423,980 | |||||||||
Information and Processing - 1.2% | Mentor Corporation | 439,400 | 18,226,312 | |||||||||
Fair Isaac | 282,000 | 10,293,000 | STERIS Corporation | 382,400 | 9,854,448 | |||||||
Interactive Data | 612,900 | 12,736,062 | Vital Signs | 314,965 | 13,644,284 | |||||||
Investors Financial Services | 253,000 | 9,568,460 | Young Innovations | 5,250 | 195,983 | |||||||
SEI Investments | 686,100 | 25,625,835 | ||||||||||
SS&C Technologies | 22,800 | 722,304 | 120,891,533 | |||||||||
58,945,661 | Personal Care - 0.5% | |||||||||||
Alberto-Culver Company | 219,600 | 9,515,268 | ||||||||||
Insurance Brokers - 1.1% | CNS | 155,756 | 3,559,025 | |||||||||
Brown & Brown | 444,300 | 19,966,842 | Inter Parfums | 181,300 | 3,515,407 | |||||||
Gallagher (Arthur J.) & Company | 828,200 | 22,469,066 | Regis | 179,500 | 7,014,860 | |||||||
Hilb Rogal & Hobbs Company | 357,300 | 12,291,120 | ||||||||||
23,604,560 | ||||||||||||
54,727,028 | ||||||||||||
Total (Cost $175,743,702) | 223,418,391 | |||||||||||
Investment Management - 5.0% | ||||||||||||
A.F.P. Provida ADR b | 332,000 | 8,446,080 | Industrial Products – 17.9% | |||||||||
Alliance Capital Management Holding L.P. | 1,322,100 | 61,794,954 | Automotive - 1.4% | |||||||||
BlackRock Cl. A | 106,000 | 8,527,700 | Adesa | 563,500 | 12,267,395 | |||||||
C.I. Fund Management | 964,300 | 13,891,524 | Bandag | 166,300 | 7,658,115 | |||||||
Cohen & Steers | 746,100 | 15,377,121 | Bandag Cl. A | 202,400 | 8,197,200 | |||||||
Federated Investors Cl. B | 1,021,100 | 30,643,211 | CLARCOR | 1,032,800 | 30,209,400 | |||||||
Gabelli Asset Management Cl. A | 326,600 | 14,432,454 | Strattec Security a | 48,100 | 2,619,526 | |||||||
IGM Financial | 545,600 | 16,766,112 | Superior Industries International | 293,900 | 6,965,430 | |||||||
Janus Capital Group | 695,000 | 10,452,800 | Wescast Industries Cl. A | 97,400 | 2,213,902 | |||||||
National Financial Partners | 150,000 | 5,871,000 | ||||||||||
Nuveen Investments Cl. A | 856,800 | 32,232,816 | 70,130,968 | |||||||||
T. Rowe Price Group | 411,400 | 25,753,640 | ||||||||||
W.P. Stewart & Co. | 332,900 | 8,046,193 | Building Systems and Components - 0.9% | |||||||||
International Aluminum | 12,800 | 408,960 | ||||||||||
252,235,605 | LSI Industries | 739,737 | 10,311,934 | |||||||||
32 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. |
JUNE 30, 2005 (Unaudited) | |||||||||||||||
SHARES | VALUE | SHARES | VALUE | |||||||||
Industrial Products (continued) | Schnitzer Steel Industries Cl. A | 273,500 | $ | 6,481,950 | ||||||||
Building Systems and Components (continued) | Steel Dynamics | 20,600 | 540,750 | |||||||||
Preformed Line Products Company c | 345,894 | $ | 14,112,475 | Steel Technologies | 57,800 | 976,820 | ||||||
Simpson Manufacturing | 130,800 | 3,995,940 | ||||||||||
Teleflex | 259,700 | 15,418,389 | 64,060,795 | |||||||||
44,247,698 | Paper and Packaging - 1.0% | |||||||||||
AptarGroup | 385,400 | 19,578,320 | ||||||||||
Construction Materials - 1.4% | Bemis Company | 543,500 | 14,424,490 | |||||||||
Ameron International | 232,500 | 8,695,500 | Louisiana-Pacific Corporation | 20,100 | 494,058 | |||||||
Ash Grove Cement Company | 39,610 | 6,218,770 | Schweitzer-Mauduit International | 227,000 | 7,066,510 | |||||||
Building Materials Holding | 32,800 | 2,272,712 | Sonoco Products Company | 349,500 | 9,261,750 | |||||||
Florida Rock Industries | 358,000 | 26,259,300 | ||||||||||
Martin Marietta Materials | 123,300 | 8,522,496 | 50,825,128 | |||||||||
NCI Building Systems a | 50,000 | 1,640,000 | ||||||||||
Vulcan Materials Company | 286,600 | 18,626,134 | Pumps, Valves and Bearings - 1.1% | |||||||||
Baldor Electric | 247,500 | 6,019,200 | ||||||||||
72,234,912 | Franklin Electric | 502,500 | 19,421,625 | |||||||||
Gorman-Rupp Company | 295,237 | 6,321,024 | ||||||||||
Industrial Components - 2.1% | Roper Industries | 163,000 | 11,633,310 | |||||||||
AMETEK | 520,900 | 21,799,665 | Sun Hydraulics | 326,450 | 11,879,516 | |||||||
Bel Fuse Cl. B | 284,437 | 8,692,395 | ||||||||||
Chase Corporation c | 273,800 | 3,833,200 | 55,274,675 | |||||||||
Crane Company | 259,800 | 6,832,740 | ||||||||||
Deswell Industries c | 740,043 | 11,529,796 | Specialty Chemicals and Materials - 2.1% | |||||||||
Donaldson Company | 638,000 | 19,350,540 | Albemarle Corporation | 220,500 | 8,041,635 | |||||||
PerkinElmer | 335,500 | 6,340,950 | Arch Chemicals | 249,700 | 6,232,512 | |||||||
Precision Castparts | 196,200 | 15,283,980 | Balchem Corporation | 326,400 | 9,808,320 | |||||||
Watts Water Technologies Cl. A | 228,300 | 7,645,767 | Cabot Corporation | 318,000 | 10,494,000 | |||||||
Woodhead Industries | 339,700 | 4,283,617 | Great Lakes Chemical | 214,000 | 6,734,580 | |||||||
Lubrizol Corporation | 400,900 | 16,841,809 | ||||||||||
105,592,650 | MacDermid | 588,300 | 18,331,428 | |||||||||
Methanex Corporation | 1,016,969 | 16,749,479 | ||||||||||
Machinery - 4.2% | Quaker Chemical | 405,000 | 7,067,250 | |||||||||
Alamo Group | 170,000 | 3,173,900 | RPM International | 262,000 | 4,784,120 | |||||||
Ampco-Pittsburgh | 144,800 | 1,737,600 | Schulman (A.) | 208,600 | 3,731,854 | |||||||
Badger Meter | 72,700 | 3,002,510 | ||||||||||
Briggs & Stratton | 358,300 | 12,404,346 | 108,816,987 | |||||||||
Cascade Corporation | 174,500 | 7,547,125 | ||||||||||
Graco | 563,200 | 19,188,224 | Textiles - 0.1% | |||||||||
Hardinge c | 482,700 | 6,781,935 | UniFirst Corporation | 12,100 | 490,534 | |||||||
IDEX Corporation | 375,900 | 14,513,499 | ||||||||||
Lincoln Electric Holdings | 609,000 | 20,188,350 | Other Industrial Products - 2.4% | |||||||||
Lindsay Manufacturing | 367,000 | 8,653,860 | Albany International Cl. A | 234,300 | 7,523,373 | |||||||
MTS Systems | 161,400 | 5,419,812 | Brady Corporation Cl. A | 852,900 | 26,439,900 | |||||||
Mueller (Paul) Company c | 112,700 | 3,268,300 | Diebold | 341,000 | 15,382,510 | |||||||
Nordson Corporation | 468,200 | 16,049,896 | HNI Corporation | 491,200 | 25,124,880 | |||||||
Oshkosh Truck | 8,600 | 673,208 | Kimball International Cl. B | 674,600 | 8,904,720 | |||||||
Stewart & Stevenson Services | 966,000 | 21,889,560 | McGrath RentCorp | 200,000 | 4,740,000 | |||||||
Tecumseh Products Company Cl. A | 199,800 | 5,482,512 | Herman Miller | 227,700 | 7,022,268 | |||||||
Tennant | 263,800 | 9,341,158 | Quixote Corporation c | 442,900 | 8,685,269 | |||||||
Thomas Industries | 427,300 | 17,074,908 | Raven Industries | 186,313 | 4,363,450 | |||||||
Toro Company (The) | 452,900 | 17,486,469 | Smith (A.O.) Corporation | 212,900 | 5,686,559 | |||||||
Woodward Governor Company | 258,800 | 21,746,964 | Trinity Industries | 256,400 | 8,212,492 | |||||||
215,624,136 | 122,085,421 | |||||||||||
Metal Fabrication and Distribution - 1.2% | Total (Cost $666,770,229) | 909,383,904 | ||||||||||
Commercial Metals Company | 25,600 | 609,792 | ||||||||||
Gibraltar Industries | 749,869 | 13,902,571 | Industrial Services – 9.9% | |||||||||
IPSCO | 76,400 | 3,338,680 | Commercial Services - 3.1% | |||||||||
Kaydon Corporation | 684,000 | 19,049,400 | ABM Industries | 834,900 | 16,280,550 | |||||||
Mueller Industries | 128,000 | 3,468,800 | ALLETE | 194,900 | 9,725,510 | |||||||
Quanex Corporation | 249,700 | 13,236,597 | Brink’s Company (The) | 421,510 | 15,174,360 | |||||||
Reliance Steel & Aluminum | 13,700 | 507,859 | Chemed Corporation a | 370,400 | 15,141,952 | |||||||
Roanoke Electric Steel | 117,892 | 1,947,576 | Hillenbrand Industries | 269,200 | 13,608,060 | |||||||
Kelly Services Cl. A | 552,800 | 15,832,192 | ||||||||||
MPS Group a | 604,000 | 5,689,680 | ||||||||||
Manpower | 345,200 | 13,732,056 |
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 33 |
SCHEDULES OF INVESTMENTS | |||||||||||||||
Royce Total Return Fund (continued) | |||||||||||||||
SHARES | VALUE | SHARES | VALUE | |||||||||
Industrial Services (continued) | Natural Resources – 9.1% | |||||||||||
Commercial Services (continued) | Energy Services - 2.8% | |||||||||||
Reynolds & Reynolds Company Cl. A | 715,700 | $ | 19,345,371 | Carbo Ceramics | 169,300 | $ | 13,367,928 | |||||
Rollins | 370,500 | 7,424,820 | Ensign Energy Services | 312,500 | 7,542,136 | |||||||
ServiceMaster Company (The) | 677,000 | 9,071,800 | Enterprise Products Partners L.P. | 263,400 | 7,056,486 | |||||||
Watson Wyatt & Company Holdings | 638,600 | 16,367,318 | Gulf Island Fabrication | 134,215 | 2,668,194 | |||||||
Helmerich & Payne | 545,800 | 25,608,936 | ||||||||||
157,393,669 | Lufkin Industries | 331,369 | 11,922,657 | |||||||||
Nicor | 371,700 | 15,302,889 | ||||||||||
Engineering and Construction - 0.9% | Piedmont Natural Gas Company | 585,800 | 14,070,916 | |||||||||
Chicago Bridge & Iron Company | 244,200 | 5,582,412 | Precision Drilling a | 330,900 | 13,063,932 | |||||||
EMCOR Group a | 262,700 | 12,846,030 | Tidewater | 420,700 | 16,037,084 | |||||||
Granite Construction | 222,700 | 6,257,870 | Universal Compression Holdings a | 354,400 | 12,843,456 | |||||||
M.D.C. Holdings | 73,187 | 6,019,631 | Western Gas Resources | 51,900 | 1,811,310 | |||||||
M/I Homes | 6,400 | 346,240 | ||||||||||
Ryland Group (The) | 76,800 | 5,826,816 | 141,295,924 | |||||||||
Skyline Corporation | 157,100 | 6,273,003 | ||||||||||
Standard Pacific | 31,700 | 2,788,015 | Oil and Gas - 4.7% | |||||||||
Alliance Resource Partners L.P. | 100,000 | 7,400,000 | ||||||||||
45,940,017 | Berry Petroleum Company Cl. A | 207,500 | 10,972,600 | |||||||||
Chesapeake Energy | 913,800 | 20,834,640 | ||||||||||
Food and Tobacco Processors - 1.1% | Cimarex Energy a | 478,800 | 18,630,108 | |||||||||
Corn Products International | 194,000 | 4,609,440 | Diamond Offshore Drilling | 211,600 | 11,305,788 | |||||||
Farmer Bros. | 366,000 | 8,147,160 | EOG Resources | 214,000 | 12,155,200 | |||||||
Fresh Del Monte Produce | 133,300 | 3,588,436 | Energen Corporation | 13,800 | 483,690 | |||||||
Pilgrim’s Pride | 85,900 | 2,931,767 | Energy Transfer Partners L.P. | 227,200 | 7,861,120 | |||||||
Sanderson Farms | 70,450 | 3,201,248 | EnergySouth c | 465,628 | 12,902,552 | |||||||
Seaboard Corporation | 16,002 | 26,627,328 | Husky Energy | 266,555 | 10,601,718 | |||||||
Universal | 121,000 | 5,297,380 | Magellan Midstream Partners L.P. | 200,000 | 6,556,000 | |||||||
Pacific Energy Partners L.P. | 238,000 | 7,554,120 | ||||||||||
54,402,759 | Penn Virginia | 336,200 | 15,018,054 | |||||||||
PetroKazakhstan Cl. A | 134,812 | 4,931,423 | ||||||||||
Industrial Distribution - 1.4% | Plains All American Pipeline L.P. | 186,000 | 8,157,960 | |||||||||
Central Steel & Wire | 7,765 | 4,495,935 | Pogo Producing Company | 454,900 | 23,618,408 | |||||||
Grainger (W.W.) | 292,000 | 15,998,680 | St. Mary Land & Exploration Company | 496,200 | 14,379,876 | |||||||
Handleman | 13,200 | 217,932 | SEACOR Holdings a | 362,000 | 23,276,600 | |||||||
Lawson Products | 309,369 | 12,009,705 | Stone Energy a | 276,500 | 13,520,850 | |||||||
Mine Safety Appliances Company | 196,000 | 9,055,200 | Sunoco Logistics Partners L.P. | 239,600 | 9,076,048 | |||||||
Ritchie Bros. Auctioneers | 676,740 | 26,088,327 | ||||||||||
Watsco | 106,600 | 4,541,160 | 239,236,755 | |||||||||
72,406,939 | Precious Metals and Mining - 0.7% | |||||||||||
AngloGold Ashanti ADR b | 31,000 | 1,107,630 | ||||||||||
Printing - 0.7% | Gold Fields ADR b | 605,000 | 6,866,750 | |||||||||
Banta Corporation | 444,700 | 20,171,592 | Goldcorp | 1,212,000 | 19,125,360 | |||||||
CSS Industries | 49,757 | 1,683,777 | 344,000 | 6,384,640 | ||||||||
Courier Corporation | 301,996 | 11,599,666 | ||||||||||
Ennis | 9,300 | 168,516 | 33,484,380 | |||||||||
John H. Harland Company | 107,700 | 4,092,600 | ||||||||||
Real Estate - 0.7% | ||||||||||||
37,716,151 | St. Joe Company | 305,000 | 24,869,700 | |||||||||
W.P. Carey & Co. | 418,500 | 12,253,680 | ||||||||||
Transportation and Logistics - 2.2% | ||||||||||||
Alexander & Baldwin | 472,700 | 21,909,645 | 37,123,380 | |||||||||
Arkansas Best | 417,632 | 13,284,874 | ||||||||||
C. H. Robinson Worldwide | 128,000 | 7,449,600 | Other Natural Resources - 0.2% | |||||||||
EGL a | 600,600 | 12,204,192 | Deltic Timber | 38,000 | 1,445,140 | |||||||
Expeditors International of Washington | 333,200 | 16,596,692 | Natural Resource Partners L.P. | 75,000 | 4,349,250 | |||||||
Nordic American Tanker Shipping | 55,600 | 2,360,220 | Plum Creek Timber Company | 177,000 | 6,425,100 | |||||||
Overseas Shipholding Group | 40,900 | 2,439,685 | ||||||||||
Sea Containers Cl. A | 387,800 | 6,193,166 | 12,219,490 | |||||||||
SkyWest | 164,800 | 2,996,064 | ||||||||||
Teekay Shipping | 281,200 | 12,344,680 | Total (Cost $320,025,256) | 463,359,929 | ||||||||
UTI Worldwide | 164,200 | 11,431,604 | ||||||||||
Technology – 5.4% | ||||||||||||
109,210,422 | Aerospace and Defense - 0.6% | |||||||||||
Cubic Corporation | 38,300 | 679,442 | ||||||||||
Other Industrial Services - 0.5% | Curtiss-Wright | 161,800 | 8,729,110 | |||||||||
Landauer c | 475,400 | 24,678,014 | EDO Corporation | 3,200 | 95,712 | |||||||
Total (Cost $368,799,082) | 501,747,971 | |||||||||||
34 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. |
JUNE 30, 2005 (Unaudited) | ||
SHARES | VALUE | SHARES | VALUE | ||||||||||
Technology (continued) | Miscellaneous – 2.8% | ||||||||||||
Aerospace and Defense (continued) | Total (Cost $137,149,829) | $ | 140,575,705 | ||||||||||
Engineered Support Systems | 18,450 | $ | 661,064 | ||||||||||
HEICO Corporation | 241,400 | 5,651,174 | TOTAL COMMON STOCKS | ||||||||||
HEICO Corporation Cl. A | 339,659 | 6,120,655 | (Cost $3,430,026,103) | 4,352,366,945 | |||||||||
Kaman Corporation Cl. A | 368,200 | 6,642,328 | |||||||||||
PREFERRED STOCKS – 0.9% | |||||||||||||
28,579,485 | Allied Waste Industries Ser. C 6.25% Conv. | 41,000 | 1,888,870 | ||||||||||
†Allied Waste Industries Ser. D 6.25% Conv. | 28,300 | 6,990,100 | |||||||||||
Central Parking Finance Trust 5.25% Conv. | 4,000 | 80,000 | |||||||||||
Components and Systems - 2.4% | Fedders Corporation 8.60% | 79,975 | 1,651,484 | ||||||||||
AVX Corporation | 980,600 | 11,884,872 | First Union Real Estate Equity & Mortgage | ||||||||||
Adaptec a | 1,681,100 | 6,522,668 | Investments Ser. A 8.40% Conv. | 24,000 | 595,200 | ||||||||
American Power Conversion | 624,600 | 14,734,314 | Fleetwood Capital Trust 6.00% Conv. a | 70,000 | 3,342,500 | ||||||||
Analogic Corporation | 222,869 | 11,214,768 | †Merrill Lynch & Co. 6.75% Conv. | 115,000 | 4,175,075 | ||||||||
Imation Corporation | 10,600 | 411,174 | †PNM Resources 6.75% Conv. | 35,000 | 1,873,900 | ||||||||
Lowrance Electronics | 3,600 | 75,672 | Reinsurance Group of America 5.75% Conv. | 94,000 | 5,597,700 | ||||||||
Methode Electronics | 1,721,690 | 20,436,460 | Vornado Realty Trust Ser. A 6.50% Conv. | 60,300 | 6,633,000 | ||||||||
Nam Tai Electronics | 423,540 | 9,631,300 | Vornado Realty Trust Ser. F 6.75% | 200,000 | 5,050,000 | ||||||||
Newport Corporation a | 489,300 | 6,781,698 | Vornado Realty Trust Ser. G 6.625% | 400,000 | 9,940,000 | ||||||||
Richardson Electronics | 317,700 | 2,319,210 | |||||||||||
Symbol Technologies | 703,300 | 6,941,571 | TOTAL PREFERRED STOCKS | ||||||||||
Technitrol | 910,900 | 12,871,017 | (Cost $42,970,059) | 47,817,829 | |||||||||
Tektronix | 881,000 | 20,500,870 | |||||||||||
PRINCIPAL | |||||||||||||
124,325,594 | AMOUNT | ||||||||||||
CORPORATE BONDS – 0.6% | |||||||||||||
Distribution - 0.5% | Amkor Technology 9.25% | ||||||||||||
Agilysys | 132,711 | 2,083,563 | Senior Note due 2/15/08 | $ | 1,000,000 | 962,500 | |||||||
Arrow Electronics a | 571,600 | 15,524,656 | †Athena Neurosciences Finance 7.25% | ||||||||||
Tech Data a | 218,800 | 8,010,268 | Senior Note due 2/21/08 | 8,900,000 | 8,277,000 | ||||||||
E*TRADE Financial 6.00% | |||||||||||||
25,618,487 | Conv. Sub. Note due 2/1/07 | 2,500,000 | 2,512,500 | ||||||||||
Human Genome Sciences 5.00% | |||||||||||||
IT Services - 0.6% | Conv. Sub. Note due 2/1/07 | 2,000,000 | 1,930,000 | ||||||||||
Black Box | 467,000 | 16,531,800 | Leucadia National 3.75% | ||||||||||
MAXIMUS | 309,900 | 10,936,371 | Conv. Senior Note due 4/15/14 | 3,000,000 | 3,037,500 | ||||||||
Syntel | 99,908 | 1,601,525 | Level 3 Communications 9.125% d | ||||||||||
Senior Note due 5/1/08 | 9,250,000 | 7,804,687 | |||||||||||
29,069,696 | Level 3 Communications 10.50% d | ||||||||||||
Senior Note due 12/1/08 | 3,000,000 | 2,520,000 | |||||||||||
Semiconductors and Equipment - 0.4% | Level 3 Communications 6.00% | ||||||||||||
Cognex Corporation | 418,300 | 10,955,277 | Conv. Sub. Deb. due 9/15/09 | 5,000,000 | 2,737,500 | ||||||||
Exar Corporation a | 565,800 | 8,424,762 | Levi Strauss & Co. 12.25% | ||||||||||
Senior Note due 12/15/12 | 1,000,000 | 1,092,500 | |||||||||||
19,380,039 | Mueller Industries 6.00% | ||||||||||||
Sub. Deb. due 11/1/14 | 1,088,000 | 1,077,120 | |||||||||||
Telecommunications - 0.9% | |||||||||||||
ADTRAN | 140,000 | 3,470,600 | TOTAL CORPORATE BONDS | ||||||||||
CT Communications | 59,717 | 779,307 | (Cost $27,769,881) | 31,951,307 | |||||||||
Golden Telecom | 170,695 | 5,236,923 | |||||||||||
Inter-Tel | 104,600 | 1,946,606 | |||||||||||
North Pittsburgh Systems | 708,272 | 13,853,800 | |||||||||||
Scientific-Atlanta | 534,850 | 17,794,460 | |||||||||||
SureWest Communications | 198,400 | 5,088,960 | |||||||||||
48,170,656 | |||||||||||||
Total (Cost $250,634,684) | 275,143,957 | ||||||||||||
Utilities – 1.7% | |||||||||||||
Aqua America | 446,075 | 13,266,270 | |||||||||||
CH Energy Group | 224,300 | 10,907,709 | |||||||||||
El Paso Electric Company a | 316,400 | 6,470,380 | |||||||||||
Hawaiian Electric Industries | 641,500 | 17,198,615 | |||||||||||
MDU Resources Group | 33,300 | 938,061 | |||||||||||
PNM Resources | 638,900 | 18,406,709 | |||||||||||
SJW | 196,500 | 9,237,465 | |||||||||||
Southern Union a | 300,000 | 7,365,000 | |||||||||||
Total (Cost $62,123,189) | 83,790,209 | ||||||||||||
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 35 |
SCHEDULES OF INVESTMENTS | ||
Royce Total Return Fund (continued) | Royce TrustShares Fund | |
PRINCIPAL | SHARES | VALUE | |||||||||||
AMOUNT | VALUE | COMMON STOCKS – 95.9% | |||||||||||
GOVERNMENT BONDS – 2.0% | Consumer Products – 3.5% | ||||||||||||
(Principal Amount shown in Canadian dollars.) | Apparel and Shoes - 2.8% | ||||||||||||
Canada 3.25%, due 12/1/06 | $ | 24,000,000 | $ | 19,716,161 | Delta Apparel | 33,400 | $ | 431,862 | |||||
Canada 4.50%, due 9/1/07 | 24,000,000 | 20,231,146 | 13,000 | 342,550 | |||||||||
Canada 4.25%, due 9/1/08 | 24,000,000 | 20,288,149 | Polo Ralph Lauren Cl. A | 16,500 | 711,315 | ||||||||
Canada 5.50%, due 6/1/09 | 24,000,000 | 21,252,497 | |||||||||||
Canada 5.50%, due 6/1/10 | 24,000,000 | 21,486,582 | 1,485,727 | ||||||||||
TOTAL GOVERNMENT BONDS | Collectibles - 0.7% | ||||||||||||
(Cost $95,853,819) | 102,974,535 | 40,100 | 353,682 | ||||||||||
U.S. TREASURY OBLIGATIONS – 4.0% | Total (Cost $1,447,357) | 1,839,409 | |||||||||||
U.S. Treasury Notes | |||||||||||||
5.625%, due 2/15/06 | 100,000,000 | 101,378,900 | Consumer Services – 3.6% | ||||||||||
3.25%, due 8/15/08 | 100,000,000 | 98,753,900 | Retail Stores - 1.7% | ||||||||||
Charming Shoppes a | 50,000 | 466,500 | |||||||||||
TOTAL U.S. TREASURY OBLIGATIONS | 18,000 | 448,920 | |||||||||||
(Cost $201,502,521) | 200,132,800 | ||||||||||||
915,420 | |||||||||||||
REPURCHASE AGREEMENT – 6.2% | |||||||||||||
State Street Bank & Trust Company, | Other Consumer Services - 1.9% | ||||||||||||
2.55% dated 6/30/05, due 7/1/05, | 17,200 | 390,268 | |||||||||||
maturity value $314,843,300 | MoneyGram International | 31,100 | 594,632 | ||||||||||
(collateralized by obligations of various | |||||||||||||
U.S. Government Agencies, valued at | 984,900 | ||||||||||||
$322,694,897) | |||||||||||||
(Cost $314,821,000) | 314,821,000 | Total (Cost $1,716,932) | 1,900,320 | ||||||||||
COLLATERAL RECEIVED FOR SECURITIES LOANED – 0.3% | Financial Intermediaries – 2.0% | ||||||||||||
U.S. Treasury Bonds | Securities Brokers - 2.0% | ||||||||||||
5.25%-9.00% due 5/15/16-5/15/30 | 12,140,852 | E*TRADE Financial a | 77,200 | 1,080,028 | |||||||||
U.S. Treasury Notes | |||||||||||||
2.875% due 11/30/06 | 6,406 | Total (Cost $669,953) | 1,080,028 | ||||||||||
U.S. Treasury Strip-Interest | |||||||||||||
due 8/15/06-8/15/15 | 2,288,259 | Financial Services – 13.6% | |||||||||||
U.S. Treasury Strip-Principal | Information and Processing - 2.4% | ||||||||||||
7.25%-9.875% due 11/15/15-5/15/16 | 354,551 | eFunds Corporation a | 29,900 | 537,901 | |||||||||
SEI Investments | 20,000 | 747,000 | |||||||||||
(Cost $14,790,068) | 14,790,068 | ||||||||||||
1,284,901 | |||||||||||||
TOTAL INVESTMENTS – 99.9% | |||||||||||||
(Cost $4,127,733,451) | 5,064,854,484 | Insurance Brokers - 2.6% | |||||||||||
CASH AND OTHER ASSETS | Brown & Brown | 20,000 | 898,800 | ||||||||||
LESS LIABILITIES – 0.1% | 4,624,526 | Gallagher (Arthur J.) & Company | 18,000 | 488,340 | |||||||||
NET ASSETS – 100.0% | $ | 5,069,479,010 | 1,387,140 | ||||||||||
Investment Management - 6.8% | |||||||||||||
Alliance Capital Management Holding L.P. | 40,000 | 1,869,600 | |||||||||||
Federated Investors Cl. B | 25,000 | 750,250 | |||||||||||
Nuveen Investments Cl. A | 25,800 | 970,596 | |||||||||||
3,590,446 | |||||||||||||
Other Financial Services - 1.8% | |||||||||||||
33,900 | 954,285 | ||||||||||||
Total (Cost $5,711,341) | 7,216,772 | ||||||||||||
Health – 8.7% | |||||||||||||
Commercial Services - 2.3% | |||||||||||||
46,000 | 634,800 | ||||||||||||
First Consulting Group a | 117,700 | 603,683 | |||||||||||
1,238,483 | |||||||||||||
Drugs and Biotech - 3.7% | |||||||||||||
Hi-Tech Pharmacal a | 6,000 | 191,160 | |||||||||||
57,000 | 681,720 | ||||||||||||
Par Pharmaceutical Companies a | 21,000 | 668,010 | |||||||||||
Perrigo Company | 27,900 | 388,926 | |||||||||||
1,929,816 | |||||||||||||
36 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. |
JUNE 30, 2005 (Unaudited) | |||||||||||||||
SHARES | VALUE | SHARES | VALUE | |||||||||
Health (continued) | Natural Resources – 4.3% | |||||||||||
Health Services - 1.2% | Energy Services - 3.8% | |||||||||||
125,500 | $ | 624,990 | Input/Output a | 110,000 | $ | 690,800 | ||||||
18,000 | 536,400 | |||||||||||
Medical Products and Devices - 0.8% | Universal Compression Holdings a | 22,000 | 797,280 | |||||||||
Arrow International | 13,500 | 430,650 | ||||||||||
2,024,480 | ||||||||||||
Personal Care - 0.7% | ||||||||||||
15,000 | 381,900 | Precious Metals and Mining - 0.5% | ||||||||||
Hecla Mining Company a | 50,000 | 228,000 | ||||||||||
Total (Cost $4,673,106) | 4,605,839 | |||||||||||
Total (Cost $2,013,071) | 2,252,480 | |||||||||||
Industrial Products – 18.0% | ||||||||||||
Automotive - 0.6% | Technology – 30.7% | |||||||||||
Adesa | 15,000 | 326,550 | Components and Systems - 10.6% | |||||||||
Checkpoint Systems a | 37,400 | 661,980 | ||||||||||
Building Systems and Components - 0.8% | 24,000 | 429,120 | ||||||||||
†Craftmade International | 27,100 | 439,020 | Excel Technology a | 34,000 | 826,200 | |||||||
KEMET Corporation a | 73,000 | 459,900 | ||||||||||
Machinery - 5.2% | Lowrance Electronics | 26,000 | 546,520 | |||||||||
†Alamo Group | 18,300 | 341,661 | Richardson Electronics | 56,100 | 409,530 | |||||||
31,500 | 502,740 | 19,000 | 450,870 | |||||||||
Lincoln Electric Holdings | 28,900 | 958,035 | 160,500 | 614,715 | ||||||||
28,300 | 928,240 | Technitrol | 42,800 | 604,764 | ||||||||
Vishay Intertechnology a | 51,100 | 606,557 | ||||||||||
2,730,676 | ||||||||||||
5,610,156 | ||||||||||||
Metal Fabrication and Distribution - 5.3% | ||||||||||||
†Insteel Industries | 40,100 | 505,260 | Distribution - 1.1% | |||||||||
†NN | 51,500 | 653,020 | Benchmark Electronics a | 19,000 | 577,980 | |||||||
Oregon Steel Mills a | 28,000 | 481,880 | ||||||||||
†Roanoke Electric Steel | 22,400 | 370,048 | Internet Software and Services - 0.6% | |||||||||
Schnitzer Steel Industries Cl. A | 15,000 | 355,500 | 25,000 | 334,750 | ||||||||
34,500 | 419,210 | |||||||||||
IT Services - 5.0% | ||||||||||||
2,784,918 | BearingPoint a | 25,000 | 183,250 | |||||||||
Forrester Research a | 30,000 | 534,900 | ||||||||||
Specialty Chemicals and Materials - 4.0% | Keane a | 33,000 | 452,100 | |||||||||
Aceto Corporation | 112,200 | 839,256 | MAXIMUS | 8,600 | 303,494 | |||||||
†MacDermid | 23,400 | 729,144 | Perot Systems Cl. A a | 50,000 | 711,000 | |||||||
22,000 | 543,180 | 54,800 | 434,564 | |||||||||
2,111,580 | 2,619,308 | |||||||||||
Other Industrial Products - 2.1% | Semiconductors and Equipment - 7.3% | |||||||||||
†Brady Corporation Cl. A | 10,000 | 310,000 | Cabot Microelectronics a | 8,000 | 231,920 | |||||||
16,000 | 448,000 | 88,000 | 499,840 | |||||||||
†Raven Industries | 15,000 | 351,300 | Cognex Corporation | 28,500 | 746,415 | |||||||
Credence Systems a | 60,000 | 543,000 | ||||||||||
1,109,300 | 29,900 | 388,700 | ||||||||||
Exar Corporation a | 41,600 | 619,424 | ||||||||||
Total (Cost $9,204,843) | 9,502,044 | 100,000 | 547,000 | |||||||||
Silicon Storage Technology a | 76,000 | 306,280 | ||||||||||
Industrial Services – 6.8% | ||||||||||||
Commercial Services - 1.1% | 3,882,579 | |||||||||||
Harsco Corporation | 5,000 | 272,750 | ||||||||||
MPS Group a | 33,000 | 310,860 | Software - 1.9% | |||||||||
RCM Technologies a | 2,500 | 10,600 | ||||||||||
Pegasystems a | 105,800 | 624,220 | ||||||||||
594,210 | Verity a | 43,500 | 381,495 | |||||||||
Industrial Distribution - 2.3% | 1,005,715 | |||||||||||
Ritchie Bros. Auctioneers | 31,000 | 1,195,050 | ||||||||||
Telecommunications - 4.2% | ||||||||||||
Transportation and Logistics - 3.4% | †Inter-Tel | 31,000 | 576,910 | |||||||||
Atlas Air Worldwide Holdingsa,e | 15,000 | 487,500 | Radyne ComStream a | 58,000 | 503,150 | |||||||
EGL a | 13,000 | 264,160 | Scientific-Atlanta | 16,000 | 532,320 | |||||||
UTI Worldwide | 6,000 | 417,720 | 120,400 | 583,940 | ||||||||
37,400 | 631,686 | |||||||||||
2,196,320 | ||||||||||||
1,801,066 | ||||||||||||
Total (Cost $15,931,621) | 16,226,808 | |||||||||||
Total (Cost $2,237,714) | 3,590,326 | |||||||||||
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 37 |
SCHEDULES OF INVESTMENTS |
Royce TrustShares Fund (continued) | Royce Opportunity Fund | |||||||||
VALUE | SHARES | VALUE | ||||||||
Miscellaneous – 4.7% | COMMON STOCKS – 93.6% | |||||||||
Total (Cost $2,386,722) | $ | 2,508,291 | Consumer Products – 3.8% | |||||||
Apparel and Shoes - 1.1% | ||||||||||
TOTAL COMMON STOCKS | 262,100 | $ | 2,639,347 | |||||||
(Cost $45,992,660) | 50,722,317 | Kellwood Company | 352,400 | 9,479,560 | ||||||
Warnaco Group (The) a | 365,500 | 8,497,875 | ||||||||
REPURCHASE AGREEMENT – 2.6% | ||||||||||
State Street Bank & Trust Company, | 20,616,782 | |||||||||
2.55% dated 6/30/05, due 7/1/05, | ||||||||||
maturity value $1,410,100 | Collectibles - 0.2% | |||||||||
(collateralized by obligations of various | Topps Company (The) | 412,100 | 4,133,363 | |||||||
U.S. Government Agencies, valued at | ||||||||||
$1,447,468) | Home Furnishing and Appliances - 1.4% | |||||||||
(Cost $1,410,000) | 1,410,000 | 155,600 | 894,700 | |||||||
Bassett Furniture Industries | 221,700 | 4,181,262 | ||||||||
TOTAL INVESTMENTS – 98.5% | Furniture Brands International | 512,400 | 11,072,964 | |||||||
(Cost $47,402,660) | 52,132,317 | La-Z-Boy | 696,900 | 10,153,833 | ||||||
| ||||||||||
CASH AND OTHER ASSETS LESS LIABILITIES – 1.5% | 773,132 | 26,302,759 | ||||||||
NET ASSETS – 100.0% | $ | 52,905,449 | Publishing - 0.7% | |||||||
Journal Communications Cl. A | 126,200 | 2,120,160 | ||||||||
279,000 | 10,755,450 | |||||||||
12,875,610 | ||||||||||
Other Consumer Products - 0.4% | ||||||||||
Cross (A.T.) Company Cl. A a | 357,400 | 1,522,524 | ||||||||
Universal Electronics a | 294,200 | 4,880,778 | ||||||||
6,403,302 | ||||||||||
Total (Cost $62,171,845) | 70,331,816 | |||||||||
Consumer Services – 6.5% | ||||||||||
Direct Marketing - 0.3% | ||||||||||
1,015,600 | 5,220,184 | |||||||||
146,300 | 1,018,248 | |||||||||
6,238,432 | ||||||||||
Leisure and Entertainment - 1.0% | ||||||||||
Orient-Express Hotels Cl. A | 249,700 | 7,907,999 | ||||||||
Steinway Musical Instruments a | 295,400 | 8,672,944 | ||||||||
34,700 | 975,070 | |||||||||
17,556,013 | ||||||||||
Media and Broadcasting - 0.7% | ||||||||||
624,700 | 9,839,025 | |||||||||
Emmis Communications Cl. A a | 47,774 | 844,167 | ||||||||
375,600 | 2,204,772 | |||||||||
12,887,964 | ||||||||||
Restaurants and Lodgings - 0.6% | ||||||||||
Landry’s Restaurants | 215,600 | 6,487,404 | ||||||||
477,400 | 4,988,830 | |||||||||
11,476,234 | ||||||||||
Retail Stores - 3.5% | ||||||||||
308,800 | 3,381,360 | |||||||||
Casual Male Retail Group a | 594,300 | 4,344,333 | ||||||||
339,500 | 4,230,170 | |||||||||
Dillard’s Cl. A | 378,300 | 8,859,786 | ||||||||
401,800 | 4,580,520 | |||||||||
377,200 | 8,924,552 | |||||||||
Longs Drug Stores | 30,800 | 1,325,940 | ||||||||
382,000 | 4,584,000 | |||||||||
REX Stores a | 532,300 | 7,691,735 | ||||||||
800,300 | 2,000,750 | |||||||||
879,300 | 10,067,985 | |||||||||
701,600 | 4,658,624 | |||||||||
64,649,755 | ||||||||||
38 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. |
JUNE 30, 2005 (Unaudited) | |||||||||||||||
SHARES | VALUE | SHARES | VALUE | |||||||||
Consumer Services (continued) | Building Systems and Components - 0.6% | |||||||||||
Other Consumer Services - 0.4% | Lennox International | 431,500 | $ | 9,134,855 | ||||||||
821,900 | $ | 8,087,496 | Modtech Holdings a | 434,701 | 2,825,557 | |||||||
Total (Cost $99,982,356) | 120,895,894 | 11,960,412 | ||||||||||
Financial Intermediaries – 2.8% | Construction Materials - 0.4% | |||||||||||
Banking - 1.2% | Apogee Enterprises | 531,000 | 8,161,470 | |||||||||
Banc Corporation (The)a | 132,000 | 1,396,560 | ||||||||||
Community Capital Bancshares | 71,600 | 791,896 | Industrial Components - 5.2% | |||||||||
NetBank | 921,200 | 8,585,584 | American Technical Ceramics a | 308,100 | 3,154,944 | |||||||
101,700 | 1,433,970 | Barnes Group | 443,800 | 14,689,780 | ||||||||
309,300 | 6,105,582 | CTS Corporation | 515,800 | 6,339,182 | ||||||||
UMB Financial | 74,100 | 4,225,923 | Crane Company | 341,600 | 8,984,080 | |||||||
Deswell Industries | 470,549 | 7,331,106 | ||||||||||
22,539,515 | Fansteel a | 52,600 | 63,120 | |||||||||
1,323,400 | 9,210,864 | |||||||||||
Insurance - 1.6% | 1,371,700 | 5,898,310 | ||||||||||
American Physicians Capital a | 246,900 | 9,172,335 | 487,400 | 5,702,580 | ||||||||
FBL Financial Group Cl. A | 373,100 | 10,301,291 | Ladish Company a | 458,700 | 4,582,413 | |||||||
Horace Mann Educators | 522,400 | 9,831,568 | 717,500 | 8,480,850 | ||||||||
MagneTek a | 417,700 | 1,073,489 | ||||||||||
29,305,194 | 626,600 | 4,605,510 | ||||||||||
Timken Company (The) | 389,900 | 9,006,690 | ||||||||||
Total (Cost $43,181,275) | 51,844,709 | Zygo Corporation a | 767,900 | 7,525,420 | ||||||||
Financial Services – 1.2% | 96,648,338 | |||||||||||
Other Financial Services - 1.2% | ||||||||||||
Advanta Corporation Cl. B | 366,000 | 10,306,560 | Machinery - 6.8% | |||||||||
864,300 | 12,497,778 | 360,800 | 6,898,496 | |||||||||
773,000 | 2,396,300 | |||||||||||
Total (Cost $10,465,051) | 22,804,338 | 587,325 | 2,965,991 | |||||||||
440,900 | 10,056,929 | |||||||||||
Health – 3.5% | 1,048,700 | 6,701,193 | ||||||||||
Drugs and Biotech - 1.3% | GSI Group a | 1,134,800 | 10,689,816 | |||||||||
Cambrex Corporation | 569,600 | 10,850,880 | 580,400 | 4,614,180 | ||||||||
381,000 | 12,119,610 | 361,000 | 5,761,560 | |||||||||
Transgenomic a | 807,600 | 549,168 | JLG Industries | 311,200 | 8,551,776 | |||||||
Keithley Instruments | 474,800 | 7,316,668 | ||||||||||
23,519,658 | 540,000 | 7,425,000 | ||||||||||
Regal-Beloit | 400,700 | 11,684,412 | ||||||||||
Health Services - 1.2% | Robbins & Myers | 472,700 | 10,167,777 | |||||||||
571,300 | 7,998,200 | 272,800 | 1,527,680 | |||||||||
Cross Country Healthcare a | 214,400 | 3,644,800 | Terex Corporation a | 286,400 | 11,284,160 | |||||||
732,700 | 3,626,865 | Thermadyne Holdings a | 409,400 | 5,731,600 | ||||||||
837,800 | 1,457,772 | 479,200 | 12,761,096 | |||||||||
Quovadx a | 1,412,204 | 3,897,683 | ||||||||||
Tripos a | 431,700 | 1,601,607 | 126,534,634 | |||||||||
22,226,927 | Metal Fabrication and Distribution - 2.0% | |||||||||||
368,505 | 8,309,788 | |||||||||||
Medical Products and Devices - 0.8% | Foster (L.B.) Company Cl. A a | 494,200 | 4,596,060 | |||||||||
Del Global Technologies a | 267,885 | 683,107 | Haynes International a | 194,600 | 3,298,470 | |||||||
690,100 | 3,830,055 | NN | 198,708 | 2,519,617 | ||||||||
New Brunswick Scientific a | 353,374 | 1,883,483 | 500,100 | 8,606,721 | ||||||||
759,257 | 1,723,513 | 285,300 | 8,961,273 | |||||||||
394,500 | 3,171,780 | |||||||||||
151,700 | 3,860,765 | 36,291,929 | ||||||||||
15,152,703 | Paper and Packaging - 0.7% | |||||||||||
Chesapeake Corporation | 395,700 | 8,285,958 | ||||||||||
Personal Care - 0.2% | 1,278,200 | 4,665,430 | ||||||||||
1,392,540 | 4,275,098 | |||||||||||
12,951,388 | ||||||||||||
Total (Cost $71,661,599) | 65,174,386 | |||||||||||
Pumps, Valves and Bearings - 1.9% | ||||||||||||
Industrial Products – 28.6% | Baldor Electric | 412,600 | 10,034,432 | |||||||||
Automotive - 0.4% | CIRCOR International | 517,900 | 12,776,593 | |||||||||
102,500 | 1,579,525 | 426,800 | 12,914,968 | |||||||||
Spartan Motors | 564,100 | 6,080,998 | ||||||||||
35,725,993 | ||||||||||||
7,660,523 | ||||||||||||
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 39 |
SCHEDULES OF INVESTMENTS | |||||||||||||||
Royce Opportunity Fund (continued) | |||||||||||||||
SHARES | VALUE | SHARES | VALUE | |||||||
Industrial Products (continued) | Industrial Distribution - 0.2% | |||||||||
Specialty Chemicals and Materials - 7.5% | 224,800 | $ | 3,014,568 | |||||||
Aceto Corporation | 882,750 | $ | 6,602,970 | |||||||
Calgon Carbon | 758,200 | 6,710,070 | Printing - 0.3% | |||||||
Crompton Corporation | 571,300 | 8,083,895 | Bowne & Co. | 434,000 | 6,275,640 | |||||
H.B. Fuller Company | 209,500 | 7,135,570 | ||||||||
404,800 | 5,098,456 | Transportation and Logistics - 2.3% | ||||||||
Lydalla | 604,100 | 5,207,342 | 190,000 | 5,652,500 | ||||||
MacDermid | 332,500 | 10,360,700 | 486,100 | 15,798,250 | ||||||
Material Sciencesa | 620,400 | 9,033,024 | 845,700 | 5,674,647 | ||||||
558,700 | 8,693,372 | Pacific CMAa | 541,100 | 449,113 | ||||||
470,400 | 11,614,176 | Sea Containers Cl. A | 534,000 | 8,527,980 | ||||||
Park Electrochemical | 529,300 | 13,338,360 | 282,800 | 6,586,412 | ||||||
Penford Corporation | 320,100 | 5,121,600 | ||||||||
1,021,000 | 6,759,020 | 42,688,902 | ||||||||
Quaker Chemical | 318,500 | 5,557,825 | ||||||||
Spartech Corporation | 478,700 | 8,520,860 | Other Industrial Services - 0.1% | |||||||
757,800 | 5,160,618 | National Technical Systemsa | 345,700 | 1,642,075 | ||||||
305,145 | 17,329,185 | |||||||||
Total (Cost $114,113,961) | 136,112,617 | |||||||||
140,327,043 | ||||||||||
Natural Resources – 3.1% | ||||||||||
Textiles - 0.1% | Energy Services - 1.5% | |||||||||
Dixie Groupa | 136,100 | 2,396,721 | 565,500 | 4,806,750 | ||||||
296,800 | 8,105,608 | |||||||||
Other Industrial Products - 3.0% | 1,081,800 | 8,113,500 | ||||||||
96,400 | 360,536 | 191,700 | 6,947,208 | |||||||
1,288,000 | 10,368,400 | |||||||||
Maxwell Technologiesa | 544,000 | 6,631,360 | 27,973,066 | |||||||
McGrath RentCorp | 716,100 | 16,971,570 | ||||||||
Tredegar Corporation | 489,800 | 7,640,880 | Oil and Gas - 1.2% | |||||||
Trinity Industries | 427,800 | 13,702,434 | ATP Oil & Gasa | 203,900 | 4,771,260 | |||||
Pioneer Drilling Companya | 468,300 | 7,146,258 | ||||||||
55,675,180 | 389,000 | 9,985,630 | ||||||||
Total (Cost $421,887,085) | 534,333,631 | 21,903,148 | ||||||||
Industrial Services – 7.3% | Precious Metals and Mining - 0.4% | |||||||||
Advertising and Publishing - 0.9% | 403,000 | 8,221,200 | ||||||||
Harris Interactivea | 850,100 | 4,139,987 | ||||||||
456,100 | 7,986,311 | Total (Cost $36,671,972) | 58,097,414 | |||||||
409,000 | 5,042,970 | |||||||||
Technology – 35.5% | ||||||||||
17,169,268 | Aerospace and Defense - 4.8% | |||||||||
728,900 | 6,727,747 | |||||||||
Commercial Services - 2.1% | 403,100 | 6,300,453 | ||||||||
Anacomp Cl. Aa | 120,800 | 1,479,800 | CPI Aerostructuresa | 193,700 | 1,743,300 | |||||
Carreker Corporationa | 772,000 | 4,230,560 | Ducommuna | 397,000 | 6,713,270 | |||||
475,575 | 4,023,365 | 235,300 | 9,430,824 | |||||||
Management Network Groupa | 905,500 | 1,992,100 | Fairchild Corporation (The) Cl. Aa | 562,800 | 1,609,608 | |||||
305,800 | 2,752,200 | GenCorpa | 255,500 | 4,920,930 | ||||||
Sparton Corporationa | 321,518 | 3,179,813 | HEICO Corporation | 340,600 | 7,973,446 | |||||
817,400 | 9,596,276 | Herley Industriesa | 354,700 | 6,469,728 | ||||||
Volt Information Sciencesa | 415,800 | 9,866,934 | 1,019,200 | 17,244,864 | ||||||
Xanser Corporationa | 1,365,500 | 3,167,960 | Kaman Corporation Cl. A | 641,600 | 11,574,464 | |||||
LaBargea | 215,100 | 3,904,065 | ||||||||
40,289,008 | 164,300 | 5,352,894 | ||||||||
Engineering and Construction - 1.3% | 89,965,593 | |||||||||
806,100 | 8,012,634 | |||||||||
848,000 | 5,579,840 | Components and Systems - 7.3% | ||||||||
612,800 | 6,219,920 | Ampex Corporation Cl. Aa | 69,400 | 2,727,420 | ||||||
812,100 | 3,719,418 | Analogic Corporation | 243,400 | 12,247,888 | ||||||
321,100 | 866,970 | |||||||||
23,531,812 | Belden CDTd | 532,550 | 11,290,060 | |||||||
525,800 | 7,045,720 | |||||||||
Food and Tobacco Processors - 0.1% | 1,523,100 | 1,888,644 | ||||||||
Galaxy Nutritional Foodsa | 721,800 | 1,501,344 | 391,500 | 2,051,460 | ||||||
782,700 | 5,064,069 | |||||||||
1,229,700 | 5,090,958 |
40 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. |
JUNE 30, 2005 (Unaudited) | |||||||||||||||
SHARES | VALUE | SHARES | VALUE | |||||||
Technology (continued) | 592,500 | $ | 9,343,725 | |||||||
Components and Systems (continued) | 661,500 | 6,780,375 | ||||||||
577,000 | $ | 1,979,110 | 633,400 | 6,435,344 | ||||||
635,000 | 3,594,100 | 814,500 | 6,630,030 | |||||||
393,800 | 2,461,250 | 337,200 | 1,844,484 | |||||||
Iomega Corporationa | 1,457,100 | 3,861,315 | 559,300 | 2,253,979 | ||||||
880,200 | 5,545,260 | 486,800 | 11,381,384 | |||||||
Lantronixa | 1,180,700 | 1,546,717 | 1,128,600 | 3,758,238 | ||||||
733,600 | 3,814,720 | 275,700 | 2,053,965 | |||||||
735,700 | 4,303,845 | Varian Semiconductor Equipment | ||||||||
Nam Tai Electronics | 497,000 | 11,301,780 | 219,400 | 8,117,800 | ||||||
471,100 | 7,438,669 | 676,400 | 11,011,792 | |||||||
747,500 | 4,111,250 | 715,300 | 1,494,977 | |||||||
Printronix | 315,400 | 5,273,488 | White Electronic Designsa | 794,800 | 4,411,140 | |||||
SBS Technologiesa | 462,350 | 4,290,608 | ||||||||
934,620 | 2,579,551 | 156,042,612 | ||||||||
210,400 | 2,236,552 | |||||||||
614,100 | 4,139,034 | Software - 4.0% | ||||||||
669,800 | 5,097,178 | 327,700 | 4,555,030 | |||||||
965,100 | 11,455,737 | 928,400 | 4,827,680 | |||||||
251,900 | 3,380,498 | 114,500 | 6,100,560 | |||||||
1,283,800 | 8,806,868 | |||||||||
136,683,851 | 721,000 | 9,517,200 | ||||||||
566,800 | 1,626,716 | |||||||||
Distribution - 1.0% | 1,004,300 | 2,470,578 | ||||||||
442,900 | 1,014,241 | 624,400 | 8,554,280 | |||||||
798,400 | 7,504,960 | 192,800 | 1,260,912 | |||||||
328,400 | 9,989,928 | 1,799,500 | 3,203,110 | |||||||
746,400 | 8,471,640 | |||||||||
18,509,129 | 411,600 | 2,798,880 | ||||||||
959,000 | 7,461,020 | |||||||||
Internet Software and Services - 1.1% | 82,730 | 610,547 | ||||||||
588,051 | 6,709,662 | QAD | 674,100 | 5,190,570 | ||||||
309,900 | 2,333,547 | Versant Corporationa | 381,500 | 122,080 | ||||||
685,810 | 4,649,792 | |||||||||
1-800-Flowers.coma | 745,200 | 5,246,208 | 75,577,671 | |||||||
458,500 | 1,192,100 | |||||||||
Telecommunications - 7.4% | ||||||||||
20,131,309 | 1,076,500 | 3,541,685 | ||||||||
722,400 | 9,217,824 | |||||||||
IT Services - 1.5% | 918,700 | 8,001,877 | ||||||||
893,623 | 7,131,112 | 955,400 | 6,544,490 | |||||||
1,617,500 | 5,062,775 | 673,866 | 3,248,034 | |||||||
1,216,100 | 4,390,121 | Centillium Communicationsa | 1,770,700 | 3,842,419 | ||||||
Keanea | 745,700 | 10,216,090 | 385,700 | 1,369,235 | ||||||
Technology Solutionsa | 1,205,900 | 651,186 | 671,400 | 11,689,074 | ||||||
1,444,200 | 2,021,880 | |||||||||
27,451,284 | EMS Technologiesa | 492,346 | 7,360,573 | |||||||
676,300 | 2,793,119 | |||||||||
Semiconductors and Equipment - 8.4% | 578,700 | 5,711,769 | ||||||||
312,300 | 8,760,015 | 1,212,400 | 4,570,748 | |||||||
338,500 | 2,660,610 | 379,900 | 2,283,199 | |||||||
672,713 | 2,408,313 | 345,500 | 1,668,765 | |||||||
Alliance Semiconductora | 974,100 | 2,483,955 | Inter-Tel | 442,700 | 8,238,647 | |||||
1,183,900 | 2,296,766 | 537,600 | 1,048,320 | |||||||
540,700 | 8,029,395 | MetaSolva | 1,173,300 | 2,757,255 | ||||||
California Micro Devicesa | 1,067,100 | 6,061,128 | Network Equipment Technologiesa | 1,210,300 | 6,245,148 | |||||
190,100 | 2,775,460 | 1,175,700 | 12,015,654 | |||||||
1,149,800 | 10,405,690 | Radyne ComStreama | 602,600 | 5,227,555 | ||||||
894,800 | 11,265,532 | 517,100 | 3,299,098 | |||||||
962,000 | 3,001,440 | 965,600 | 10,013,272 | |||||||
925,000 | 3,441,000 | 707,900 | 5,309,250 | |||||||
†Fairchild Semiconductor | ||||||||||
481,300 | 7,099,175 | |||||||||
770,000 | 5,705,700 | |||||||||
394,575 | 4,131,200 |
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 41 |
SCHEDULES OF INVESTMENTS | ||
Royce Opportunity Fund (continued) | Royce Special Equity Fund | |
SHARES | VALUE | SHARES | VALUE | ||||||||
Technology (continued) | COMMON STOCKS – 91.5% | ||||||||||
Telecommunications (continued) | |||||||||||
358,800 | $ | 2,687,412 | Consumer Products – 19.1% | ||||||||
Westell Technologies Cl. Aa | 1,135,600 | 6,790,888 | Apparel and Shoes - 4.5% | ||||||||
480,000 | $ | 9,412,800 | |||||||||
137,497,190 | K-Swiss Cl. A | 550,000 | 17,787,000 | ||||||||
Kellwood Company | 412,500 | 11,096,250 | |||||||||
Total (Cost $618,541,260) | 661,858,639 | Lakeland Industriesa | 217,500 | 2,977,575 | |||||||
Miscellaneous – 1.3% | 41,273,625 | ||||||||||
Total (Cost $24,021,824) | 24,112,661 | ||||||||||
Food/Beverage/Tobacco - 4.1% | |||||||||||
TOTAL COMMON STOCKS | Lancaster Colony | 650,000 | 27,898,000 | ||||||||
(Cost $1,502,698,228) | 1,745,566,105 | National Beveragea | 1,185,000 | 9,456,300 | |||||||
REPURCHASE AGREEMENT – 6.8% | 37,354,300 | ||||||||||
State Street Bank & Trust Company, | |||||||||||
2.55% dated 6/30/05, due 7/1/05, | Home Furnishing and Appliances - 8.3% | ||||||||||
maturity value $127,213,010 | American Woodmark | 565,000 | 16,955,650 | ||||||||
(collateralized by obligations of various | 332,500 | 4,538,625 | |||||||||
U.S. Government Agencies, valued at | Ethan Allen Interiors | 345,000 | 11,560,950 | ||||||||
$130,388,892) | Flexsteel Industriesc | 369,200 | 5,194,644 | ||||||||
(Cost $127,204,000) | 127,204,000 | Hooker Furniture | 662,500 | 11,573,875 | |||||||
MITY Enterprisesa | 187,500 | 2,906,250 | |||||||||
COLLATERAL RECEIVED FOR SECURITIES LOANED – 10.0% | National Presto Industriesc | 522,500 | 23,026,575 | ||||||||
Money Market Funds | |||||||||||
State Street Navigator Securities Lending | 75,756,569 | ||||||||||
Prime Portfolio | 186,025,434 | ||||||||||
Sports and Recreation - 0.7% | |||||||||||
(Cost $186,025,434) | 186,025,434 | Escalade | 435,000 | 6,016,050 | |||||||
TOTAL INVESTMENTS – 110.4% | Other Consumer Products - 1.5% | ||||||||||
(Cost $1,815,927,662) | 2,058,795,539 | Koss Corporation | 167,500 | 2,847,500 | |||||||
| Movado Group | 327,500 | 6,183,200 | ||||||||
LIABILITIES LESS CASH AND OTHER ASSETS – (10.4)% | (193,707,205 | ) | Yankee Candle Company | 145,000 | 4,654,500 | ||||||
NET ASSETS – 100.0% | $ | 1,865,088,334 | 13,685,200 | ||||||||
Total (Cost $147,987,525) | 174,085,744 | ||||||||||
Consumer Services - 17.4% | |||||||||||
Leisure and Entertainment - 0.3% | |||||||||||
Bowl America Cl. A | 165,000 | 2,305,050 | |||||||||
Restaurants and Lodgings - 3.9% | |||||||||||
CEC Entertainmenta | 390,300 | 16,427,727 | |||||||||
Frisch’s Restaurantsc | 312,600 | 7,815,000 | |||||||||
Jack in the Boxa | 303,700 | 11,516,304 | |||||||||
35,759,031 | |||||||||||
Retail Stores - 13.2% | |||||||||||
Arden Group Cl. A | 114,960 | 9,114,029 | |||||||||
BJ’s Wholesale Cluba | 596,900 | 19,393,281 | |||||||||
Borders Group | 1,360,000 | 34,421,600 | |||||||||
Cato Corporation Cl. A | 241,650 | 4,990,073 | |||||||||
†Claire’s Stores | 654,000 | 15,728,700 | |||||||||
Deb Shops | 475,000 | 13,760,750 | |||||||||
Jo-Ann Storesa | 360,600 | 9,516,234 | |||||||||
Neiman Marcus Group (The) Cl. A | 132,200 | 12,812,824 | |||||||||
119,737,491 | |||||||||||
Total (Cost $114,033,660) | 157,801,572 | ||||||||||
Financial Services – 1.6% | |||||||||||
Insurance Brokers - 1.6% | |||||||||||
Hilb Rogal & Hobbs Company | 414,200 | 14,248,480 | |||||||||
Total (Cost $12,556,338) | 14,248,480 | ||||||||||
42 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. |
JUNE 30, 2005 (Unaudited) | |||||||||||||||
SHARES | VALUE | SHARES | VALUE | ||||||||
Health – 5.9% | Printing - 5.9% | ||||||||||
Commercial Services - 0.8% | Banta Corporation | 776,200 | $ | 35,208,432 | |||||||
Owens & Minor | 213,300 | $ | 6,900,255 | CSS Industriesc | 552,300 | 18,689,832 | |||||
Health Services - 0.7% | 53,898,264 | ||||||||||
345,000 | 6,234,150 | ||||||||||
Transportation and Logistics - 1.5% | |||||||||||
Medical Products and Devices - 3.1% | Arkansas Best | 415,000 | 13,201,150 | ||||||||
Bio-Rad Laboratories Cl. Aa | 472,500 | 27,976,725 | |||||||||
Total (Cost $117,657,756) | 148,105,464 | ||||||||||
Personal Care - 1.3% | |||||||||||
Regis | 310,000 | 12,114,800 | Technology – 1.4% | ||||||||
Components and Systems - 1.4% | |||||||||||
Total (Cost $45,769,596) | 53,225,930 | Rimage Corporationa | 227,700 | 4,834,071 | |||||||
†Tektronix | 353,700 | 8,230,599 | |||||||||
Industrial Products – 28.8% | 13,064,670 | ||||||||||
Automotive - 5.5% | |||||||||||
Bandag Cl. A | 616,000 | 24,948,000 | Total (Cost $11,380,267) | 13,064,670 | |||||||
R&Ba | 732,600 | 10,285,704 | |||||||||
Strattec Securitya | 145,000 | 7,896,700 | Miscellaneous – 1.0% | ||||||||
Superior Industries Internationald | 285,000 | 6,754,500 | Total (Cost $8,942,260) | 9,581,748 | |||||||
49,884,904 | TOTAL COMMON STOCKS | ||||||||||
(Cost $672,774,737) | 831,647,220 | ||||||||||
Construction Materials - 0.5% | |||||||||||
140,000 | 4,592,000 | REPURCHASE AGREEMENT – 8.5% | |||||||||
State Street Bank & Trust Company, | |||||||||||
Industrial Components - 3.5% | 2.55% dated 6/30/05, due 7/1/05, | ||||||||||
Genlyte Group (The)a | 395,000 | 19,252,300 | maturity value $77,518,491 | ||||||||
Standex International | 434,300 | 12,338,463 | (collateralized by obligations of various | ||||||||
U.S. Government Agencies, valued at | |||||||||||
31,590,763 | $79,455,676) | ||||||||||
(Cost $77,513,000) | 77,513,000 | ||||||||||
Machinery - 6.9% | |||||||||||
Briggs & Stratton | 585,000 | 20,252,700 | COLLATERAL RECEIVED FOR SECURITIES LOANED – 0.5% | ||||||||
Cascade Corporation | 571,200 | 24,704,400 | Money Market Funds | ||||||||
Rofin-Sinar Technologiesa | 542,500 | 17,794,000 | AIM Liquid Assets Institutional Fund | 558,081 | |||||||
AIM Treasury Assets Institutional Fund | 3,775,843 | ||||||||||
62,751,100 | |||||||||||
(Cost $4,333,924) | 4,333,924 | ||||||||||
Metal Fabrication and Distribution - 0.5% | |||||||||||
Quanex Corporation | 83,200 | 4,410,432 | TOTAL INVESTMENTS – 100.5% | ||||||||
(Cost $754,621,661) | 913,494,144 | ||||||||||
Paper and Packaging - 2.5% |
| ||||||||||
Schweitzer-Mauduit International | 730,000 | 22,724,900 | LIABILITIES LESS CASH AND OTHER ASSETS – (0.5%) | (4,432,662 | ) | ||||||
Specialty Chemicals and Materials - 7.4% | NET ASSETS – 100.0% | $ | 909,061,482 | ||||||||
Hawkinsc | 545,000 | 6,621,750 | |||||||||
Lubrizol Corporation | 727,100 | 30,545,471 | |||||||||
†MacDermid | 270,000 | 8,413,200 | |||||||||
Quaker Chemical | 37,000 | 645,650 | |||||||||
Schulman (A.) | 1,160,000 | 20,752,400 | |||||||||
66,978,471 | |||||||||||
Other Industrial Products - 2.0% | |||||||||||
Met-Pro Corporationc | 632,600 | 9,596,542 | |||||||||
Superior Uniform Groupc | 652,500 | 9,004,500 | |||||||||
18,601,042 | |||||||||||
Total (Cost $214,447,335) | 261,533,612 | ||||||||||
Industrial Services – 16.3% | |||||||||||
Commercial Services - 2.5% | |||||||||||
Global Imaging Systemsa | 270,000 | 8,602,200 | |||||||||
Watson Wyatt & Company Holdings | 535,000 | 13,712,050 | |||||||||
22,314,250 | |||||||||||
Food and Tobacco Processors - 4.3% | |||||||||||
Sanderson Farms | 470,000 | 21,356,800 | |||||||||
Universal | 405,000 | 17,730,900 | |||||||||
39,087,700 | |||||||||||
Industrial Distribution - 2.1% | |||||||||||
Lawson Productsc | 505,000 | 19,604,100 | |||||||||
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 43 |
SCHEDULES OF INVESTMENTS | |||||||||||||||
Royce Select Fund | |||||||||||||||
SHARES | VALUE | SHARES | VALUE | |||||||
COMMON STOCKS – 86.1% | Medical Products and Devices - 2.0% | |||||||||
Consumer Products – 3.7% | Arrow International | 15,000 | $ | 478,500 | ||||||
Apparel and Shoes - 2.9% | ||||||||||
Polo Ralph Lauren Cl. A | 15,800 | $ | 681,138 | Total (Cost $1,212,620) | 1,656,868 | |||||
Collectibles - 0.8% | Industrial Products – 10.3% | |||||||||
20,000 | 176,400 | Automotive - 3.5% | ||||||||
†Adesa | 15,000 | 326,550 | ||||||||
Total (Cost $811,399) | 857,538 | 18,300 | 496,845 | |||||||
Consumer Services – 6.6% | 823,395 | |||||||||
Direct Marketing - 0.9% | ||||||||||
10,600 | 198,750 | Building Systems and Components - 1.2% | ||||||||
Juno Lightinga | 6,700 | 288,569 | ||||||||
Retail Stores - 3.6% | ||||||||||
Charming Shoppesa | 31,700 | 295,761 | Construction Materials - 1.1% | |||||||
Hot Topica | 22,000 | 420,640 | Florida Rock Industries | 3,325 | 243,889 | |||||
9,000 | 114,390 | |||||||||
Machinery - 1.4% | ||||||||||
830,791 | Lincoln Electric Holdings | 9,500 | 314,925 | |||||||
Other Consumer Services - 2.1% | Metal Fabrication and Distribution - 1.1% | |||||||||
17,900 | 228,583 | †Metal Management | 13,100 | 253,485 | ||||||
MoneyGram International | 13,800 | 263,856 | ||||||||
Specialty Chemicals and Materials - 2.0% | ||||||||||
492,439 | MacDermid | 15,000 | 467,400 | |||||||
Total (Cost $1,451,885) | 1,521,980 | Total (Cost $1,617,672) | 2,391,663 | |||||||
Financial Intermediaries – 2.4% | Industrial Services – 8.1% | |||||||||
Insurance - 1.2% | Commercial Services - 1.2% | |||||||||
Erie Indemnity Company Cl. A | 5,000 | 271,250 | MPS Groupa | 30,000 | 282,600 | |||||
Securities Brokers - 1.2% | Industrial Distribution - 3.3% | |||||||||
E*TRADE Financiala | 20,100 | 281,199 | Ritchie Bros. Auctioneers | 20,000 | 771,000 | |||||
Total (Cost $305,001) | 552,449 | Transportation and Logistics - 3.6% | ||||||||
EGLa | 21,000 | 426,720 | ||||||||
24,300 | 410,427 | |||||||||
Financial Services – 16.5% | ||||||||||
Information and Processing - 4.6% | 837,147 | |||||||||
eFunds Corporationa | 25,000 | 449,750 | ||||||||
SEI Investments | 16,700 | 623,745 | Total (Cost $1,242,278) | 1,890,747 | ||||||
1,073,495 | Natural Resources – 3.7% | |||||||||
Energy Services - 1.0% | ||||||||||
Insurance Brokers - 2.7% | Helmerich & Payne | 4,700 | 220,524 | |||||||
Brown & Brown | 5,000 | 224,700 | ||||||||
Gallagher (Arthur J.) & Company | 15,000 | 406,950 | Oil and Gas - 2.7% | |||||||
Penn Virginia | 14,000 | 625,380 | ||||||||
631,650 | ||||||||||
Total (Cost $514,560) | 845,904 | |||||||||
Investment Management - 6.3% | ||||||||||
Alliance Capital Management Holding L.P. | 18,500 | 864,690 | Technology – 23.9% | |||||||
Nuveen Investments Cl. A | 15,800 | 594,396 | Aerospace and Defense - 1.2% | |||||||
†HEICO Corporation Cl. A | 14,800 | 266,696 | ||||||||
1,459,086 | ||||||||||
Components and Systems - 7.6% | ||||||||||
Other Financial Services - 2.9% | 9,200 | 193,568 | ||||||||
22,000 | 248,600 | Lowrance Electronics | 14,780 | 310,675 | ||||||
15,100 | 425,065 | †Nam Tai Electronics | 12,500 | 284,250 | ||||||
Plexus Corporationa | 36,700 | 522,241 | ||||||||
673,665 | Technitrol | 32,600 | 460,638 | |||||||
Total (Cost $2,977,388) | 3,837,896 | 1,771,372 | ||||||||
Health – 7.1% | Distribution - 0.9% | |||||||||
Commercial Services - 2.7% | Benchmark Electronicsa | 7,100 | 215,982 | |||||||
Covancea | 4,500 | 201,915 | ||||||||
IDEXX Laboratoriesa | 6,700 | 417,611 | Internet Software and Services - 1.1% | |||||||
19,000 | 254,410 | |||||||||
619,526 | ||||||||||
IT Services - 4.0% | ||||||||||
Drugs and Biotech - 2.4% | MAXIMUS | 6,400 | 225,856 | |||||||
Lexicon Geneticsa | 37,500 | 185,250 | Perot Systems Cl. Aa | 17,300 | 246,006 | |||||
Perrigo Company | 26,800 | 373,592 | Sapient Corporationa | 32,900 | 260,897 | |||||
558,842 | ||||||||||
44 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. |
JUNE 30, 2005 (Unaudited) | |||||||||||||||
Royce Value Fund | |||||||||||||||
SHARES | VALUE | SHARES | VALUE | |||||||||
Technology (continued) | COMMON STOCKS – 87.7% | |||||||||||
IT Services (continued) | Consumer Products – 13.7% | |||||||||||
Syntel | 12,600 | $ | 201,978 | Apparel and Shoes - 5.6% | ||||||||
†Kenneth Cole Productions Cl. A | 29,300 | $ | 911,816 | |||||||||
934,737 | K-Swiss Cl. A | 19,000 | 614,460 | |||||||||
Polo Ralph Lauren Cl. A | 29,500 | 1,271,745 | ||||||||||
Semiconductors and Equipment - 4.6% | Timberland Company Cl. Aa | 17,200 | 665,984 | |||||||||
Cognex Corporation | 20,600 | 539,514 | ||||||||||
Exar Corporationa | 34,700 | 516,683 | 3,464,005 | |||||||||
1,056,197 | Home Furnishing and Appliances - 1.9% | |||||||||||
Ethan Allen Interiors | 34,300 | 1,149,393 | ||||||||||
Software - 2.3% | ||||||||||||
JDA Software Groupa | 15,000 | 170,700 | Sports and Recreation - 2.8% | |||||||||
Pegasystems a | 32,800 | 193,520 | Thor Industries | 26,300 | 826,609 | |||||||
Verity a | 20,600 | 180,662 | Winnebago Industries | 27,500 | 900,625 | |||||||
544,882 | 1,727,234 | |||||||||||
Telecommunications - 2.2% | Other Consumer Products - 3.4% | |||||||||||
ADTRAN | 20,500 | 508,195 | Blyth | 21,200 | 594,660 | |||||||
Fossil a | 28,600 | 649,220 | ||||||||||
Total (Cost $5,210,392) | 5,552,471 | RC2 Corporationa | 21,900 | 822,783 | ||||||||
Miscellaneous – 3.8% | 2,066,663 | |||||||||||
Total (Cost $881,284) | 885,598 | |||||||||||
Total (Cost $7,876,806) | 8,407,295 | |||||||||||
TOTAL COMMON STOCKS | ||||||||||||
(Cost $16,224,479) | 19,993,114 | Consumer Services – 10.6% | ||||||||||
Direct Marketing - 2.8% | ||||||||||||
REPURCHASE AGREEMENT – 12.4% | Nu Skin Enterprises Cl. A | 74,000 | 1,724,200 | |||||||||
State Street Bank & Trust Company, | ||||||||||||
2.55% dated 6/30/05, due 7/1/05, | Restaurants and Lodgings - 3.6% | |||||||||||
maturity value $2,886,204 | CEC Entertainmenta | 15,400 | 648,186 | |||||||||
(collateralized by obligations of various | †Ruby Tuesday | 35,700 | 924,630 | |||||||||
U.S. Government Agencies, valued at | Ryan’s Restaurant Groupa | 46,900 | 657,069 | |||||||||
$2,962,141) | ||||||||||||
(Cost $2,886,000) | 2,229,885 | |||||||||||
2,886,000 | ||||||||||||
Retail Stores - 4.2% | ||||||||||||
TOTAL INVESTMENTS – 98.5% | AnnTaylor Storesa | 17,400 | 422,472 | |||||||||
(Cost $19,110,479) | 22,879,114 | Buckle (The) | 18,100 | 802,554 | ||||||||
| Pier 1 Imports | 44,200 | 627,198 | |||||||||
CASH AND OTHER ASSETS LESS LIABILITIES – 1.5% | 357,057 | Talbots | 22,700 | 737,069 | ||||||||
NET ASSETS – 100.0% | $ | 23,236,171 | 2,589,293 | |||||||||
Total (Cost $5,960,782) | 6,543,378 | |||||||||||
Financial Intermediaries – 11.3% | ||||||||||||
Insurance - 9.4% | ||||||||||||
Alleghany Corporationa | 3,468 | 1,029,996 | ||||||||||
AmerUs Group | 25,900 | 1,244,495 | ||||||||||
Aspen Insurance Holdings | 64,600 | 1,780,376 | ||||||||||
†Endurance Specialty Holdings | 33,800 | 1,278,316 | ||||||||||
Wesco Financial | 1,150 | 414,000 | ||||||||||
5,747,183 | ||||||||||||
Other Financial Intermediaries - 1.9% | ||||||||||||
TSX Group | 40,000 | 1,191,968 | ||||||||||
Total (Cost $6,373,532) | 6,939,151 | |||||||||||
Financial Services – 4.1% | ||||||||||||
Information and Processing - 2.4% | ||||||||||||
eFunds Corporationa | 82,400 | 1,482,376 | ||||||||||
Investment Management - 1.7% | ||||||||||||
Federated Investors Cl. B | 24,000 | 720,240 | ||||||||||
Gabelli Asset Management Cl. A | 6,800 | 300,492 | ||||||||||
1,020,732 | ||||||||||||
Total (Cost $2,568,428) | 2,503,108 | |||||||||||
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 45 |
SCHEDULES OF INVESTMENTS | |||||||||||||||
Royce Value Fund (continued) | |||||||||||||||
SHARES | VALUE | SHARES | VALUE | ||||||||
Health – 5.5% | Semiconductors and Equipment - 3.8% | ||||||||||
Drugs and Biotech - 3.9% | Cabot Microelectronics a | 21,100 | $ | 611,689 | |||||||
116,000 | $ | 791,120 | Fairchild Semiconductor International Cl. A a | 62,500 | 921,875 | ||||||
Endo Pharmaceuticals Holdings a | 35,500 | 932,940 | 57,100 | 775,989 | |||||||
Perrigo Company | 47,800 | 666,332 | |||||||||
2,309,553 | |||||||||||
2,390,392 | |||||||||||
Software - 3.1% | |||||||||||
Health Services - 1.1% | ManTech International Cl. A a | 24,400 | 757,376 | ||||||||
AMERIGROUP Corporation a | 16,300 | 655,260 | Sybase a | 11,100 | 203,685 | ||||||
Transaction Systems Architects Cl. A a | 38,400 | 945,792 | |||||||||
Medical Products and Devices - 0.5% | |||||||||||
Arrow International | 10,300 | 328,570 | 1,906,853 | ||||||||
Total (Cost $2,723,613) | 3,374,222 | Telecommunications - 1.7% | |||||||||
Foundry Networks a | 120,300 | 1,038,189 | |||||||||
Industrial Products – 9.1% | |||||||||||
Building Systems and Components - 1.3% | Total (Cost $6,977,139) | 7,440,735 | |||||||||
Simpson Manufacturing | 26,300 | 803,465 | |||||||||
Miscellaneous – 2.4% | |||||||||||
Construction Materials - 0.9% | Total (Cost $1,642,470) | 1,510,777 | |||||||||
Florida Rock Industries | 7,500 | 550,125 | |||||||||
TOTAL COMMON STOCKS | |||||||||||
Machinery - 3.2% | (Cost $49,166,453) | 53,949,148 | |||||||||
Lincoln Electric Holdings | 35,700 | 1,183,455 | |||||||||
23,600 | 774,080 | REPURCHASE AGREEMENT – 14.1% | |||||||||
State Street Bank & Trust Company, | |||||||||||
1,957,535 | 2.55% dated 6/30/05, due 7/1/05, | ||||||||||
maturity value $8,715,617 | |||||||||||
Metal Fabrication and Distribution - 3.7% | (collateralized by obligations of various | ||||||||||
IPSCO | 27,000 | 1,179,900 | U.S. Government Agencies, valued at | ||||||||
Schnitzer Steel Industries Cl. A | 46,300 | 1,097,310 | $8,933,494) | ||||||||
(Cost $8,715,000) | 8,715,000 | ||||||||||
2,277,210 | |||||||||||
TOTAL INVESTMENTS – 101.8% | |||||||||||
Total (Cost $5,498,013) | 5,588,335 | (Cost $57,881,453) | 62,664,148 | ||||||||
Industrial Services – 1.7% | LIABILITIES LESS CASH | ||||||||||
Engineering and Construction - 1.7% | AND OTHER ASSETS – (1.8)% | (1,133,595 | ) | ||||||||
Dycom Industries a | 53,200 | 1,053,892 | |||||||||
NET ASSETS – 100.0% | $ | 61,530,553 | |||||||||
Total (Cost $1,147,245) | 1,053,892 | ||||||||||
Natural Resources – 17.2% | |||||||||||
Energy Services - 6.6% | |||||||||||
Ensign Energy Services | 58,500 | 1,411,888 | |||||||||
Patterson-UTI Energy | 34,900 | 971,267 | |||||||||
Trican Well Service a | 68,400 | 1,681,528 | |||||||||
4,064,683 | |||||||||||
Oil and Gas - 5.5% | |||||||||||
Cimarex Energy a | 26,500 | 1,031,115 | |||||||||
St. Mary Land & Exploration Company | 47,300 | 1,370,754 | |||||||||
Unit Corporation a | 22,100 | 972,621 | |||||||||
3,374,490 | |||||||||||
Precious Metals and Mining - 5.1% | |||||||||||
Agnico-Eagle Mines | 50,000 | 630,000 | |||||||||
Glamis Gold a | 55,700 | 958,597 | |||||||||
Meridian Gold a | 50,000 | 900,000 | |||||||||
Silver Standard Resources a | 56,500 | 660,485 | |||||||||
3,149,082 | |||||||||||
Total (Cost $8,398,425) | 10,588,255 | ||||||||||
Technology – 12.1% | |||||||||||
Components and Systems - 2.0% | |||||||||||
Tektronix | 53,000 | 1,233,310 | |||||||||
IT Services - 1.5% | |||||||||||
MAXIMUS | 27,000 | 952,830 | |||||||||
46 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. |
JUNE 30, 2005 (Unaudited) | |||||||||||||||
Royce Value Plus Fund | |||||||||||||||
SHARES | VALUE | SHARES | VALUE | |||||||
COMMON STOCKS – 91.9% | Health Services - 0.8% | |||||||||
Consumer Products – 8.1% | 70,000 | $ | 1,637,300 | |||||||
Apparel and Shoes - 2.5% | ||||||||||
†Kenneth Cole Productions Cl. A | 69,000 | $ | 2,147,280 | Medical Products and Devices - 2.8% | ||||||
Polo Ralph Lauren Cl. A | 73,000 | 3,147,030 | Arrow International | 35,000 | 1,116,500 | |||||
Caliper Life Sciences a | 435,300 | 2,437,680 | ||||||||
5,294,310 | Possis Medical a | 118,600 | 1,201,418 | |||||||
Thoratec Corporation a | 66,800 | 1,024,712 | ||||||||
Collectibles - 0.2% | ||||||||||
56,900 | 501,858 | 5,780,310 | ||||||||
Home Furnishing and Appliances - 1.2% | Total (Cost $31,272,349) | 32,580,396 | ||||||||
Select Comfort a | 117,700 | 2,522,311 | ||||||||
Industrial Products – 13.8% | ||||||||||
Sports and Recreation - 2.9% | Automotive - 1.6% | |||||||||
Oakley | 200,000 | 3,406,000 | Adesa | 149,000 | 3,243,730 | |||||
Winnebago Industries | 84,000 | 2,751,000 | ||||||||
Building Systems and Components - 2.0% | ||||||||||
6,157,000 | AZZ a | 50,200 | 868,460 | |||||||
Drew Industries a | 73,100 | 3,318,740 | ||||||||
Other Consumer Products - 1.3% | ||||||||||
Fossil a | 116,000 | 2,633,200 | 4,187,200 | |||||||
Total (Cost $16,083,047) | 17,108,679 | Machinery - 3.1% | ||||||||
Lincoln Electric Holdings | 103,000 | 3,414,450 | ||||||||
Consumer Services – 2.2% | Pason Systems | 183,400 | 3,188,394 | |||||||
Direct Marketing - 2.2% | ||||||||||
Nu Skin Enterprises Cl. A | 201,600 | 4,697,280 | 6,602,844 | |||||||
Total (Cost $3,987,739) | 4,697,280 | Metal Fabrication and Distribution - 6.5% | ||||||||
†Harris Steel Group | 170,000 | 2,858,309 | ||||||||
Financial Intermediaries – 2.8% | IPSCO | 83,000 | 3,627,100 | |||||||
Insurance - 1.3% | †Metal Management | 139,100 | 2,691,585 | |||||||
AmerUs Group | 58,000 | 2,786,900 | Schnitzer Steel Industries Cl. A | 186,000 | 4,408,200 | |||||
Securities Brokers - 1.5% | 13,585,194 | |||||||||
150,100 | 3,155,102 | |||||||||
Other Industrial Products - 0.6% | ||||||||||
Total (Cost $5,525,374) | 5,942,002 | Color Kinetics a | 118,300 | 1,258,712 | ||||||
Financial Services – 6.0% | Total (Cost $27,372,974) | 28,877,680 | ||||||||
Information and Processing - 2.3% | ||||||||||
eFunds Corporation a | 274,000 | 4,929,260 | Industrial Services – 11.1% | |||||||
Commercial Services - 4.7% | ||||||||||
Investment Management - 1.5% | 107,000 | 2,084,360 | ||||||||
†Nuveen Investments Cl. A | 81,000 | 3,047,220 | Digital Theater Systems a | 121,000 | 2,157,430 | |||||
Exponent a | 92,900 | 2,655,082 | ||||||||
Other Financial Services - 2.2% | LECG Corporation a | 135,900 | 2,889,234 | |||||||
218,900 | 2,473,570 | |||||||||
76,000 | 2,139,400 | 9,786,106 | ||||||||
4,612,970 | Engineering and Construction - 2.2% | |||||||||
Dycom Industries a | 149,500 | 2,961,595 | ||||||||
Total (Cost $12,058,288) | 12,589,450 | Insituform Technologies Cl. A a | 102,000 | 1,635,060 | ||||||
Health – 15.5% | 4,596,655 | |||||||||
Commercial Services - 2.3% | ||||||||||
Dendrite International a | 145,000 | 2,001,000 | Food and Tobacco Processors - 0.7% | |||||||
84,500 | 2,932,150 | Omega Protein a | 244,100 | 1,542,712 | ||||||
4,933,150 | Industrial Distribution - 0.7% | |||||||||
Ritchie Bros. Auctioneers | 37,500 | 1,445,625 | ||||||||
Drugs and Biotech - 9.6% | ||||||||||
425,000 | 2,112,250 | Printing - 1.3% | ||||||||
385,000 | 2,625,700 | †Banta Corporation | 59,000 | 2,676,240 | ||||||
Endo Pharmaceuticals Holdings a | 147,300 | 3,871,044 | ||||||||
Lexicon Genetics a | 192,500 | 950,950 | Transportation and Logistics - 1.5% | |||||||
Myriad Genetics a | 116,000 | 1,815,400 | 190,900 | 3,224,301 | ||||||
Orchid Cellmark a | 314,000 | 3,394,340 | ||||||||
Perrigo Company | 143,400 | 1,998,996 | Total (Cost $23,034,602) | 23,271,639 | ||||||
QLT a | 192,000 | 2,000,640 | ||||||||
Zila a | 510,600 | 1,460,316 | Natural Resources – 13.5% | |||||||
Energy Services - 6.0% | ||||||||||
20,229,636 | Ensign Energy Services | 170,000 | 4,102,922 | |||||||
Input/Output a | 389,100 | 2,443,548 | ||||||||
Tesco Corporation a | 193,200 | 2,113,608 | ||||||||
Trican Well Service a | 158,900 | 3,906,356 | ||||||||
12,566,434 | ||||||||||
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 47 |
SCHEDULES OF INVESTMENTS | |||||||||||||||
Royce Value Plus Fund (continued) | |||||||||||||||
SHARES | VALUE | VALUE | ||||||||
Natural Resources (continued) | Miscellaneous – 2.7% | |||||||||
Precious Metals and Mining - 7.5% | Total (Cost $5,842,969) | $ | 5,591,082 | |||||||
Glamis Gold a | 186,000 | $ | 3,201,060 | |||||||
Hecla Mining Company a | 595,000 | 2,713,200 | TOTAL COMMON STOCKS | |||||||
Meridian Gold a | 144,900 | 2,608,200 | (Cost $184,369,722) | 193,083,227 | ||||||
Northern Orion Resources a | 330,000 | 808,500 | ||||||||
NovaGold Resources a | 387,700 | 2,958,151 | REPURCHASE AGREEMENT – 7.6% | |||||||
Silver Standard Resources a | 185,000 | 2,162,650 | State Street Bank & Trust Company, | |||||||
Western Silver a | 155,900 | 1,356,330 | 2.55% dated 6/30/05, due 7/1/05, | |||||||
maturity value $15,957,130 | ||||||||||
15,808,091 | (collateralized by obligations of various | |||||||||
U.S. Government Agencies, valued at | ||||||||||
Total (Cost $23,953,459) | 28,374,525 | $16,356,898) | ||||||||
(Cost $15,956,000) | 15,956,000 | |||||||||
Technology – 16.2% | ||||||||||
Components and Systems - 1.8% | TOTAL INVESTMENTS – 99.5% | |||||||||
Lowrance Electronics | 92,000 | 1,933,840 | (Cost $200,325,722) | 209,039,227 | ||||||
TTM Technologies a | 240,000 | 1,826,400 |
| |||||||
CASH AND OTHER ASSETS LESS LIABILITIES – 0.5% | 1,107,833 | |||||||||
3,760,240 | ||||||||||
NET ASSETS – 100.0% | $ | 210,147,060 | ||||||||
Internet Software and Services - 1.4% | ||||||||||
RealNetworks a | 600,000 | 2,982,000 | ||||||||
IT Services - 2.6% | ||||||||||
Perot Systems Cl. A a | 250,000 | 3,555,000 | ||||||||
RADVision a | 150,000 | 1,993,500 | ||||||||
5,548,500 | ||||||||||
Semiconductors and Equipment - 3.8% | ||||||||||
Cabot Microelectronics a | 66,000 | 1,913,340 | ||||||||
DSP Group a | 68,000 | 1,623,160 | ||||||||
Exar Corporation a | 65,000 | 967,850 | ||||||||
150,000 | 3,501,000 | |||||||||
8,005,350 | ||||||||||
Software - 3.9% | ||||||||||
InterVideo a | 119,200 | 1,714,096 | ||||||||
iPass a | 318,800 | 1,931,928 | ||||||||
ManTech International Cl. A a | 52,000 | 1,614,080 | ||||||||
150,000 | 2,881,500 | |||||||||
8,141,604 | ||||||||||
Telecommunications - 2.7% | ||||||||||
Foundry Networks a | 400,000 | 3,452,000 | ||||||||
KVH Industries a | 233,600 | 2,160,800 | ||||||||
5,612,800 | ||||||||||
Total (Cost $35,238,921) | 34,050,494 | |||||||||
48 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. |
JUNE 30, 2005 (Unaudited) | |||||||||||||||
Royce Technology Value Fund | |||||||||||||||
SHARES | VALUE | SHARES | VALUE | |||||||||
COMMON STOCKS – 83.0% | Software - 27.0% | |||||||||||
Aerospace and Defense - 1.5% | Aspen Technology a | 120,000 | $ | 624,000 | ||||||||
American Science & Engineering a | 10,000 | $ | 443,600 | 80,000 | 212,800 | |||||||
BindView Development a | 150,000 | 414,000 | ||||||||||
Total (Cost $407,875) | 443,600 | E.piphany a | 170,000 | 591,600 | ||||||||
Indus International a | 250,000 | 615,000 | ||||||||||
Commercial Services - 5.8% | Informatica Corporation a | 40,000 | 335,600 | |||||||||
20,000 | 389,600 | 100,000 | 566,000 | |||||||||
10,000 | 233,100 | Mobius Management Systems a | 70,000 | 462,000 | ||||||||
Hollywood Media a | 120,000 | 520,800 | 40,000 | 397,200 | ||||||||
TriZetto Group (The)a | 40,000 | 560,400 | Open Text a | 40,000 | 566,400 | |||||||
SCO Group (The)a | 382,500 | 1,464,975 | ||||||||||
Total (Cost $1,425,201) | 1,703,900 | Transaction Systems Architects Cl. A a | 25,000 | 615,750 | ||||||||
Ultimate Software Group a | 30,000 | 492,000 | ||||||||||
Components and Systems - 2.8% | Verity a | 70,000 | 613,900 | |||||||||
Cray a | 50,000 | 62,000 | ||||||||||
Digi International a | 40,000 | 474,400 | Total (Cost $10,790,012) | 7,971,225 | ||||||||
On Track Innovations a | 20,000 | 276,400 | ||||||||||
Telecommunications - 14.1% | ||||||||||||
Total (Cost $909,947) | 812,800 | Arris Group a | 30,000 | 261,300 | ||||||||
Broadwing Corporation a | 50,000 | 231,000 | ||||||||||
Health Services - 1.4% | 45,000 | 502,200 | ||||||||||
Eclipsys Corporation a | 30,000 | 422,100 | 30,000 | 193,500 | ||||||||
Harmonic a | 110,000 | 531,300 | ||||||||||
Total (Cost $332,454) | 422,100 | iBasis a | 200,000 | 544,000 | ||||||||
Lightbridge a | 30,000 | 187,500 | ||||||||||
Internet Software and Services - 23.1% | PC-Tel a | 50,000 | 391,500 | |||||||||
10,000 | 196,100 | Scientific-Atlanta | 10,000 | 332,700 | ||||||||
CyberSource Corporation a | 50,000 | 365,500 | Terayon Communication Systems a | 50,000 | 154,500 | |||||||
15,000 | 358,800 | UCN a | 141,500 | 275,925 | ||||||||
Dynabazaar a | 150,000 | 48,000 | Westell Technologies Cl. A a | 90,000 | 538,200 | |||||||
Jacada a | 330,100 | 848,357 | ||||||||||
45,000 | 508,950 | Total (Cost $4,510,289) | 4,143,625 | |||||||||
Openwave Systems a | 30,000 | 492,000 | ||||||||||
118,100 | 245,648 | Miscellaneous - 1.0% | ||||||||||
10,000 | 215,900 | Total (Cost $353,972) | 308,328 | |||||||||
Register.com a | 6,525 | 48,938 | ||||||||||
60,000 | 721,200 | TOTAL COMMON STOCKS | ||||||||||
S1 Corporation a | 85,000 | 400,350 | (Cost $26,264,964) | 24,480,721 | ||||||||
Stellent a | 100,000 | 750,000 | ||||||||||
SupportSoft a | 100,000 | 519,000 | REPURCHASE AGREEMENT – 13.7% | |||||||||
25,000 | 366,500 | State Street Bank & Trust Company, | ||||||||||
WebMD Corporation a | 70,000 | 718,900 | 2.55% dated 6/30/05, due 7/1/05, | |||||||||
maturity value $4,041,286 | ||||||||||||
Total (Cost $5,988,366) | 6,804,143 | (collateralized by obligations of various | ||||||||||
U.S. Government Agencies, valued at | ||||||||||||
IT Services - 1.5% | $4,145,836) | |||||||||||
PacificNet a | 20,000 | 151,800 | (Cost $4,041,000) | 4,041,000 | ||||||||
Tyler Technologies a | 40,000 | 302,400 | ||||||||||
TOTAL INVESTMENTS – 96.7% | ||||||||||||
Total (Cost $601,769) | 454,200 | (Cost $30,305,964) | 28,521,721 | |||||||||
| ||||||||||||
Other Financial Intermediaries - 1.5% | CASH AND OTHER ASSETS LESS LIABILITIES – 3.3% | 967,563 | ||||||||||
Electronic Clearing House a | 50,000 | 435,000 | ||||||||||
NET ASSETS – 100.0% | $ | 29,489,284 | ||||||||||
Total (Cost $392,501) | 435,000 | |||||||||||
Semiconductors and Equipment - 3.3% | ||||||||||||
Intevac a | 60,000 | 628,200 | ||||||||||
20,000 | 353,600 | |||||||||||
Total (Cost $552,578) | 981,800 | |||||||||||
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 49 |
SCHEDULES OF INVESTMENTS | |||||||||||||||
Royce 100 Fund | |||||||||||||||
SHARES | VALUE | SHARES | VALUE | |||||||||
COMMON STOCKS – 91.5% | Investment Management - 3.6% | |||||||||||
Consumer Products – 6.1% | Federated Investors Cl. B | 4,300 | $ | 129,043 | ||||||||
Apparel and Shoes - 1.9% | Gabelli Asset Management Cl. A | 1,900 | 83,961 | |||||||||
†Kenneth Cole Productions Cl. A | 4,000 | $ | 124,480 | Nuveen Investments Cl. A | 4,900 | 184,338 | ||||||
K-Swiss Cl. A | 2,700 | 87,318 | ||||||||||
397,342 | ||||||||||||
211,798 | ||||||||||||
Other Financial Services - 2.7% | ||||||||||||
Collectibles - 0.6% | 6,000 | 168,900 | ||||||||||
Action Performance Companies a | 8,000 | 70,560 | 7,000 | 132,020 | ||||||||
Home Furnishing and Appliances - 1.0% | 300,920 | |||||||||||
Ethan Allen Interiors | 3,200 | 107,232 | ||||||||||
Total (Cost $975,725) | 1,186,312 | |||||||||||
Sports and Recreation - 1.8% | ||||||||||||
Thor Industries | 2,300 | 72,289 | Health – 9.4% | |||||||||
Winnebago Industries | 3,900 | 127,725 | Commercial Services - 1.2% | |||||||||
3,900 | 135,330 | |||||||||||
200,014 | ||||||||||||
Drugs and Biotech - 3.4% | ||||||||||||
Other Consumer Products - 0.8% | Endo Pharmaceuticals Holdings a | 5,700 | 149,796 | |||||||||
Fossil a | 4,000 | 90,800 | Orchid Cellmark a | 9,600 | 103,776 | |||||||
Perrigo Company | 4,700 | 65,518 | ||||||||||
Total (Cost $701,787) | 680,404 | Priority Healthcare Cl. B a | 2,500 | 63,400 | ||||||||
Consumer Services – 8.0% | 382,490 | |||||||||||
Direct Marketing - 1.1% | ||||||||||||
Nu Skin Enterprises Cl. A | 5,500 | 128,150 | Health Services - 1.0% | |||||||||
On Assignment a | 23,100 | 115,038 | ||||||||||
Restaurants and Lodgings - 0.5% | ||||||||||||
CBRL Group | 1,500 | 58,290 | Medical Products and Devices - 3.8% | |||||||||
Arrow International | 4,400 | 140,360 | ||||||||||
Retail Stores - 5.5% | Invacare Corporation | 1,700 | 75,412 | |||||||||
Big Lots a | 6,000 | 79,440 | Possis Medical a | 7,000 | 70,910 | |||||||
Borders Group | 3,300 | 83,523 | STERIS Corporation | 2,500 | 64,425 | |||||||
Buckle (The) | 3,100 | 137,454 | Viasys Healthcare a | 3,000 | 67,770 | |||||||
Claire’s Stores | 3,900 | 93,795 | ||||||||||
Dress Barn (The) a | 3,800 | 85,994 | 418,877 | |||||||||
Pier 1 Imports | 9,300 | 131,967 | ||||||||||
Total (Cost $962,309) | 1,051,735 | |||||||||||
612,173 | ||||||||||||
Industrial Products – 17.5% | ||||||||||||
Other Consumer Services - 0.9% | Automotive - 3.0% | |||||||||||
MoneyGram International | 5,100 | 97,512 | Adesa | 6,000 | 130,620 | |||||||
Bandag Cl. A | 2,600 | 105,300 | ||||||||||
Total (Cost $777,220) | 896,125 | Gentex Corporation | 5,600 | 101,920 | ||||||||
Financial Intermediaries – 2.8% | 337,840 | |||||||||||
Insurance - 1.0% | ||||||||||||
AmerUs Group | 2,300 | 110,515 | Building Systems and Components - 2.2% | |||||||||
Drew Industries a | 3,400 | 154,360 | ||||||||||
Securities Brokers - 1.8% | Teleflex | 1,500 | 89,055 | |||||||||
E*TRADE Financial a | 4,600 | 64,354 | ||||||||||
6,800 | 142,936 | 243,415 | ||||||||||
207,290 | Machinery - 5.8% | |||||||||||
Briggs & Stratton | 3,200 | 110,784 | ||||||||||
Total (Cost $289,071) | 317,805 | †Lincoln Electric Holdings | 5,800 | 192,270 | ||||||||
Pason Systems | 7,200 | 125,171 | ||||||||||
Financial Services – 10.6% | 3,300 | 108,240 | ||||||||||
Information and Processing - 3.7% | Woodward Governor Company | 1,400 | 117,642 | |||||||||
eFunds Corporation a | 7,500 | 134,925 | ||||||||||
Fair Isaac | 3,500 | 127,750 | 654,107 | |||||||||
SEI Investments | 4,100 | 153,135 | ||||||||||
Metal Fabrication and Distribution - 0.8% | ||||||||||||
415,810 | Kaydon Corporation | 3,200 | 89,120 | |||||||||
Insurance Brokers - 0.6% | Pumps, Valves and Bearings - 0.8% | |||||||||||
Hilb Rogal & Hobbs Company | 2,100 | 72,240 | †Franklin Electric | 2,400 | 92,760 | |||||||
50 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. |
JUNE 30, 2005 (Unaudited) | |||||||||||||||
SHARES | VALUE | SHARES | VALUE | |||||||||
Industrial Products (continued) | IT Services - 2.2% | |||||||||||
Specialty Chemicals and Materials - 1.6% | Keane a | 3,300 | $ | 45,210 | ||||||||
Balchem Corporation | 2,250 | $ | 67,613 | Perot Systems Cl. A a | 7,700 | 109,494 | ||||||
MacDermid | 3,400 | 105,944 | 11,100 | 88,023 | ||||||||
173,557 | 242,727 | |||||||||||
Other Industrial Products - 3.3% | Semiconductors and Equipment - 3.4% | |||||||||||
Brady Corporation Cl. A | 4,500 | 139,500 | 3,700 | 107,263 | ||||||||
HNI Corporation | 1,200 | 61,380 | Cognex Corporation | 5,300 | 138,807 | |||||||
Raven Industries | 4,100 | 96,022 | Exar Corporation a | 9,000 | 134,010 | |||||||
Smith (A.O.) Corporation | 2,900 | 77,459 | ||||||||||
380,080 | ||||||||||||
374,361 | ||||||||||||
Software - 3.0% | ||||||||||||
Total (Cost $1,735,011) | 1,965,160 | ManTech International Cl. A a | 1,400 | 43,456 | ||||||||
Pegasystems a | 11,200 | 66,080 | ||||||||||
Industrial Services – 10.6% | 6,700 | 128,707 | ||||||||||
Commercial Services - 6.5% | 11,600 | 101,732 | ||||||||||
5,600 | 109,088 | |||||||||||
Copart a | 5,400 | 128,520 | 339,975 | |||||||||
Digital Theater Systems a | 4,800 | 85,584 | ||||||||||
Kelly Services Cl. A | 3,100 | 88,784 | Telecommunications - 2.2% | |||||||||
LECG Corporation a | 5,700 | 121,182 | 15,000 | 129,450 | ||||||||
MPS Group a | 10,400 | 97,968 | Scientific-Atlanta | 3,600 | 119,772 | |||||||
Viad Corporation | 3,500 | 99,190 | ||||||||||
249,222 | ||||||||||||
730,316 | ||||||||||||
Total (Cost $1,889,019) | 1,898,116 | |||||||||||
Industrial Distribution - 1.2% | ||||||||||||
Ritchie Bros. Auctioneers | 3,400 | 131,070 | Miscellaneous – 4.4% | |||||||||
Total (Cost $518,276) | 489,377 | |||||||||||
Printing - 1.0% | ||||||||||||
Courier Corporation | 3,075 | 118,111 | TOTAL COMMON STOCKS | |||||||||
(Cost $9,334,399) | 10,260,611 | |||||||||||
Transportation and Logistics - 1.9% | ||||||||||||
Alexander & Baldwin | 1,100 | 50,985 | REPURCHASE AGREEMENT – 7.5% | |||||||||
9,500 | 160,455 | State Street Bank & Trust Company, 2.55% dated 6/30/05, due 7/1/05, maturity value $839,059(collateralized by obligations of various U.S. Government Agencies, valued at $862,723) | ||||||||||
211,440 | ||||||||||||
(Cost $839,000) | 839,000 | |||||||||||
Total (Cost $1,059,235) | 1,190,937 | |||||||||||
TOTAL INVESTMENTS – 99.0% | ||||||||||||
(Cost $10,173,399) | 11,099,611 | |||||||||||
Natural Resources – 5.2% | ||||||||||||
Energy Services - 2.7% |
| |||||||||||
Ensign Energy Services | 5,400 | 130,328 | CASH AND OTHER ASSETS LESS LIABILITIES – 1.0% | 108,253 | ||||||||
Input/Output a | 9,200 | 57,776 | ||||||||||
Trican Well Service a | 4,800 | 118,002 | NET ASSETS – 100.0% | $ | 11,207,864 | |||||||
306,106 | ||||||||||||
Oil and Gas - 2.5% | ||||||||||||
Cimarex Energy a | 3,800 | 147,858 | ||||||||||
Holly Corporation | 2,800 | 130,676 | ||||||||||
278,534 | ||||||||||||
Total (Cost $426,746) | 584,640 | |||||||||||
Technology – 16.9% | ||||||||||||
Components and Systems - 4.2% | ||||||||||||
American Power Conversion | 3,200 | 75,488 | ||||||||||
Dionex Corporation a | 1,400 | 61,054 | ||||||||||
†Nam Tai Electronics | 5,200 | 118,248 | ||||||||||
Technitrol | 7,600 | 107,388 | ||||||||||
†Tektronix | 4,700 | 109,369 | ||||||||||
471,547 | ||||||||||||
Distribution - 0.9% | ||||||||||||
3,400 | 103,428 | |||||||||||
Internet Software and Services - 1.0% | ||||||||||||
8,300 | 111,137 | |||||||||||
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 51 |
SCHEDULES OF INVESTMENTS | |||||||||||||||
Royce Discovery Fund | |||||||||||||||
SHARES | VALUE | SHARES | VALUE | |||||||||
COMMON STOCKS – 86.6% | 700 | $ | 24,199 | |||||||||
Consumer Products – 5.0% | Safety Insurance Group | 700 | 23,632 | |||||||||
Apparel and Shoes - 2.9% | ||||||||||||
2,400 | $ | 21,624 | 207,309 | |||||||||
Cutter & Buck | 1,900 | 24,510 | ||||||||||
†Haggar | 1,100 | 22,385 | Securities Brokers - 1.4% | |||||||||
Saucony Cl. B | 1,100 | 25,080 | †SWS Group | 1,300 | 22,334 | |||||||
Stifel Financial a | 966 | 23,339 | ||||||||||
93,599 | ||||||||||||
45,673 | ||||||||||||
Home Furnishing and Appliances - 0.7% | ||||||||||||
National Presto Industries | 500 | 22,035 | Total (Cost $341,336) | 383,294 | ||||||||
Sports and Recreation - 0.7% | ||||||||||||
†Aldila | 1,100 | 21,516 | Financial Services – 2.0% | |||||||||
Other Financial Services - 2.0% | ||||||||||||
Other Consumer Products - 0.7% | Encore Capital Group a | 1,300 | 22,100 | |||||||||
1,200 | 23,052 | †Medallion Financial | 2,400 | 22,680 | ||||||||
Nicholas Financial | 1,650 | 18,414 | ||||||||||
Total (Cost $155,278) | 160,202 | |||||||||||
Total (Cost $63,648) | 63,194 | |||||||||||
Consumer Services – 7.9% | ||||||||||||
Direct Marketing - 0.7% | ||||||||||||
Sportsman’s Guide (The) a | 1,200 | 22,500 | Health – 18.4% | |||||||||
Drugs and Biotech - 3.5% | ||||||||||||
Leisure and Entertainment - 0.7% | Draxis Health a | 4,500 | 22,365 | |||||||||
1,100 | 21,868 | 800 | 25,488 | |||||||||
Lifecore Biomedical a | 1,900 | 20,710 | ||||||||||
Media and Broadcasting - 0.7% | 2,000 | 22,000 | ||||||||||
†Nelson (Thomas) | 1,000 | 21,760 | 2,600 | 22,594 | ||||||||
Restaurants and Lodgings - 2.1% | 113,157 | |||||||||||
1,500 | 21,450 | |||||||||||
Checkers Drive-In Restaurants a | 1,600 | 21,792 | Health Services - 3.5% | |||||||||
Sunterra Corporation a | 1,500 | 24,315 | 700 | 25,746 | ||||||||
Metropolitan Health Networks a | 8,000 | 20,480 | ||||||||||
67,557 | 3,700 | 22,459 | ||||||||||
PainCare Holdings a | 5,200 | 22,516 | ||||||||||
Retail Stores - 2.3% | RehabCare Group a | 800 | 21,384 | |||||||||
1,000 | 24,470 | |||||||||||
†Deb Shops | 800 | 23,176 | 112,585 | |||||||||
Trans World Entertainment a | 2,200 | 26,026 | ||||||||||
Medical Products and Devices - 10.7% | ||||||||||||
73,672 | Anika Therapeutics a | 1,800 | 20,682 | |||||||||
Atrion Corporation | 300 | 22,365 | ||||||||||
Other Consumer Services - 1.4% | Candela Corporation a | 2,400 | 25,080 | |||||||||
ACE Cash Express a | 800 | 20,448 | 1,400 | 22,904 | ||||||||
EZCORP Cl. A a | 2,200 | 23,584 | 2,200 | 24,794 | ||||||||
1,300 | 22,555 | |||||||||||
44,032 | Kensey Nash a | 800 | 24,192 | |||||||||
Medical Action Industries a | 1,400 | 24,990 | ||||||||||
Total (Cost $227,475) | 251,389 | Meridian Bioscience | 1,200 | 22,740 | ||||||||
Microtek Medical Holdings a | 6,300 | 23,121 | ||||||||||
Financial Intermediaries – 12.0% | Quinton Cardiology Systems a | 2,200 | 17,688 | |||||||||
Banking - 4.1% | Schick Technologies a | 1,100 | 24,750 | |||||||||
Capital Crossing Bank a | 800 | 27,280 | †Utah Medical Products | 1,000 | 21,620 | |||||||
MFC Bancorp a | 1,300 | 24,219 | Vital Signs | 500 | 21,660 | |||||||
New Hampshire Thrift Bancshares | 904 | 13,677 | †Young Innovations | 600 | 22,398 | |||||||
Provident Financial Holdings | 711 | 19,986 | ||||||||||
1,600 | 21,600 | 341,539 | ||||||||||
†Taylor Capital Group | 600 | 23,550 | ||||||||||
Personal Care - 0.7% | ||||||||||||
130,312 | CNS | 1,000 | 22,850 | |||||||||
Insurance - 6.5% | Total (Cost $550,052) | 590,131 | ||||||||||
†American Equity Investment Life Holding Company | 2,000 | 23,760 | ||||||||||
American Safety Insurance Holdings a | 1,500 | 22,830 | Industrial Products – 8.3% | |||||||||
Capital Title Group | 3,250 | 22,100 | Automotive - 0.8% | |||||||||
Ceres Group a | 3,600 | 21,888 | †Noble International | 1,100 | 25,905 | |||||||
†Donegal Group Cl. A | 1,200 | 23,952 | ||||||||||
FPIC Insurance Group a | 800 | 23,464 | Industrial Components - 1.1% | |||||||||
Meadowbrook Insurance Group a | 4,100 | 21,484 | †Deswell Industries | 1,500 | 23,370 | |||||||
Gerber Scientific a | 1,400 | 9,744 | ||||||||||
33,114 | ||||||||||||
52 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. |
JUNE 30, 2005 (Unaudited) | |||||||||||||||
SHARES | VALUE | SHARES | VALUE | ||||||||||
Industrial Products (continued) | Components and Systems - 5.2% | ||||||||||||
Machinery - 1.2% | 2,100 | $ | 24,906 | ||||||||||
LeCroy Corporation a | 1,200 | $ | 16,500 | Methode Electronics | 1,900 | 22,553 | |||||||
700 | 22,960 | Neoware Systems a | 2,300 | 23,552 | |||||||||
1,500 | 24,225 | ||||||||||||
39,460 | Rimage Corporation a | 1,100 | 23,353 | ||||||||||
5,700 | 21,831 | ||||||||||||
Metal Fabrication and Distribution - 2.5% | 1,200 | 25,632 | |||||||||||
Metal Management | 1,000 | 19,350 | |||||||||||
Metals USA a | 1,300 | 24,726 | 166,052 | ||||||||||
Novamerican Steel a | 700 | 19,320 | |||||||||||
Roanoke Electric Steel | 1,020 | 16,850 | Distribution - 0.7% | ||||||||||
Agilysys | 1,400 | 21,980 | |||||||||||
80,246 | |||||||||||||
Internet Software and Services - 0.7% | |||||||||||||
Textiles - 0.8% | Imergent a | 2,050 | 21,730 | ||||||||||
Hallwood Group a | 300 | 25,650 | |||||||||||
IT Services - 2.2% | |||||||||||||
Other Industrial Products - 1.9% | 1,900 | 24,415 | |||||||||||
†Eastern Company (The) | 900 | 21,195 | SI International a | 900 | 26,964 | ||||||||
EnPro Industries a | 900 | 25,983 | TechTeam Global a | 1,600 | 20,864 | ||||||||
Oil-Dri Corporation of America | 700 | 12,621 | |||||||||||
72,243 | |||||||||||||
59,799 | |||||||||||||
Semiconductors and Equipment - 1.3% | |||||||||||||
Total (Cost $257,580) | 264,174 | 3,000 | 21,420 | ||||||||||
Catalyst Semiconductor a | 4,600 | 20,194 | |||||||||||
Industrial Services – 7.4% | |||||||||||||
Commercial Services - 2.3% | 41,614 | ||||||||||||
Barrett Business Services a | 1,366 | 20,545 | |||||||||||
Exponent a | 700 | 20,006 | Software - 2.1% | ||||||||||
†Gevity HR | 1,200 | 24,036 | InterVideo a | 1,700 | 24,446 | ||||||||
Innodata Isogen a | 3,400 | 9,996 | 1,600 | 23,376 | |||||||||
2,000 | 21,020 | ||||||||||||
74,583 | |||||||||||||
68,842 | |||||||||||||
Engineering and Construction - 1.5% | |||||||||||||
Baker (Michael) a | 1,400 | 25,004 | Telecommunications - 4.3% | ||||||||||
1,000 | 21,680 | 1,800 | 23,670 | ||||||||||
Communications Systems | 2,100 | 21,567 | |||||||||||
46,684 | 2,600 | 22,438 | |||||||||||
1,600 | 23,936 | ||||||||||||
Food and Tobacco Processors - 0.7% | SpectraLink Corporation | 2,100 | 22,092 | ||||||||||
M&F Worldwide a | 1,700 | 22,712 | 2,300 | 23,023 | |||||||||
Printing - 0.7% | 136,726 | ||||||||||||
CSS Industries | 681 | 23,045 | |||||||||||
Total (Cost $586,124) | 602,505 | ||||||||||||
Transportation and Logistics - 2.2% | |||||||||||||
Cronos Group (The) | 2,000 | 22,980 | Miscellaneous – 4.7% | ||||||||||
MAIR Holdings a | 2,800 | 24,752 | Total (Cost $161,472) | 151,478 | |||||||||
Vitran Corporation Cl. A a | 1,400 | 22,120 | |||||||||||
TOTAL COMMON STOCKS | |||||||||||||
69,852 | (Cost $2,633,095) | 2,771,239 | |||||||||||
Total (Cost $214,033) | 236,876 | REPURCHASE AGREEMENT ��� 13.7% | |||||||||||
State Street Bank & Trust Company, | |||||||||||||
Natural Resources – 2.1% | 2.55% dated 6/30/05, due 7/1/05, | ||||||||||||
Oil and Gas - 1.4% | maturity value $439,031 | ||||||||||||
1,500 | 22,170 | (collateralized by obligations of various | |||||||||||
VAALCO Energy a | 6,200 | 21,452 | U.S. Government Agencies, valued at $452,335) | ||||||||||
(Cost $439,000) | 439,000 | ||||||||||||
43,622 | |||||||||||||
Real Estate - 0.7% | TOTAL INVESTMENTS – 100.3% | ||||||||||||
Bluegreen Corporation a | 1,400 | 24,374 | (Cost $3,072,095) | 3,210,239 | |||||||||
Total (Cost $76,097) | 67,996 | LIABILITIES LESS CASH | |||||||||||
AND OTHER ASSETS – (0.3)% | (11,107 | ) | |||||||||||
Technology – 18.8% | |||||||||||||
Aerospace and Defense - 2.3% | NET ASSETS – 100.0% | $ | 3,199,132 | ||||||||||
Herley Industries a | 1,300 | 23,712 | |||||||||||
Innovative Solutions and Support a | 600 | 20,142 | |||||||||||
MTC Technologies a | 800 | 29,464 | |||||||||||
73,318 | |||||||||||||
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 53 |
SCHEDULES OF INVESTMENTS | |||||||||||||||
Royce Financial Services Fund | |||||||||||||||
SHARES | VALUE | SHARES | VALUE | |||||||
COMMON STOCKS – 94.1% | Securities Brokers - 5.6% | |||||||||
Consumer Services – 1.3% | E*TRADE Financiala | 1,600 | $ | 22,384 | ||||||
Other Consumer Services - 1.3% | First Albany | 2,000 | 11,920 | |||||||
MoneyGram International | 1,000 | $ | 19,120 | Friedman, Billings, Ramsey Group Cl. A | 1,300 | 18,590 | ||||
Knight Capital Group Cl. Aa | 800 | 6,096 | ||||||||
Total (Cost $19,367) | 19,120 | Piper Jaffray Companiesa | 100 | 3,043 | ||||||
Sanders Morris Harris Group | 500 | 8,600 | ||||||||
Diversified Investment Companies – 0.6% | 500 | 12,080 | ||||||||
Closed-End Mutual Funds - 0.6% | ||||||||||
Central Fund of Canada Cl. A | 1,700 | 9,010 | 82,713 | |||||||
Total (cost $10,707) | 9,010 | Total (cost $702,009) | 712,473 | |||||||
Financial Intermediaries – 48.0% | Financial Services – 42.0% | |||||||||
Banking - 23.4% | Information and Processing - 7.6% | |||||||||
Abigail Adams National Bancorp | 1,100 | 17,875 | Advent Softwarea | 500 | 10,130 | |||||
Bancorp Rhode Island | 500 | 18,300 | Fair Isaac | 1,500 | 54,750 | |||||
Bank of Hawaii | 200 | 10,150 | Interactive Data | 500 | 10,390 | |||||
Bank of NT Butterfield | 1,000 | 41,500 | SEI Investments | 1,000 | 37,350 | |||||
Center Bancorp | 1,260 | 14,301 | ||||||||
Central Pacific Financial | 1,000 | 35,600 | 112,620 | |||||||
†Commercial National Financial | 1,100 | 22,011 | ||||||||
HopFed Bancorp | 600 | 9,426 | Insurance Brokers - 4.7% | |||||||
International Bancshares | 625 | 17,681 | Brown & Brown | 1,000 | 44,940 | |||||
MAF Bancorp | 700 | 29,841 | Gallagher (Arthur J.) & Company | 300 | 8,139 | |||||
Mercantile Bankshares | 200 | 10,306 | Hilb Rogal & Hobbs Company | 500 | 17,200 | |||||
Partners Trust Financial Group | 1,000 | 10,680 | ||||||||
Peapack-Gladstone Financial | 1,210 | 33,517 | 70,279 | |||||||
Provident Financial Services | 600 | 10,542 | ||||||||
Severn Bancorp | 800 | 14,576 | Investment Management - 23.3% | |||||||
Susquehanna Bancshares | 400 | 9,836 | Alliance Capital Management Holding L.P. | 1,600 | 74,784 | |||||
Timberland Bancorp | 500 | 11,225 | Apollo Investment | 1,545 | 28,475 | |||||
Umpqua Holdings | 400 | 9,416 | Epoch Holdinga | 11,700 | 50,310 | |||||
Whitney Holding | 300 | 9,789 | Federated Investors Cl. B | 1,400 | 42,014 | |||||
Wilmington Trust | 300 | 10,803 | IGM Financial | 200 | 6,146 | |||||
International Assets Holdinga | 1,000 | 6,150 | ||||||||
347,375 | MCG Capital | 1,000 | 17,080 | |||||||
MVC Capital | 2,000 | 20,000 | ||||||||
Insurance - 17.0% | Nuveen Investments Cl. A | 1,700 | 63,954 | |||||||
Alleghany Corporationa | 102 | 30,294 | T. Rowe Price Group | 200 | 12,520 | |||||
American National Insurance | 200 | 22,938 | U.S. Global Investors Cl. Aa | 5,000 | 23,600 | |||||
Argonaut Groupa | 800 | 18,472 | ||||||||
Aspen Insurance Holdings | 1,400 | 38,584 | 345,033 | |||||||
Baldwin & Lyons Cl. B | 1,500 | 36,150 | ||||||||
CNA Suretya | 500 | 7,425 | Other Financial Services - 6.4% | |||||||
Erie Indemnity Company Cl. A | 200 | 10,850 | CharterMac | 500 | 10,980 | |||||
Infinity Property & Casualty | 700 | 24,416 | Credit Acceptancea | 1,100 | 16,379 | |||||
Montpelier Re Holdings | 300 | 10,374 | 1,500 | 42,225 | ||||||
†Ohio Casualty | 500 | 12,090 | Municipal Mortgage & Equity | 400 | 10,396 | |||||
RLI | 300 | 13,380 | World Acceptancea | 500 | 15,025 | |||||
Transatlantic Holdings | 500 | 27,910 | ||||||||
95,005 | ||||||||||
252,883 | ||||||||||
Total (cost $523,783) | 622,937 | |||||||||
Real Estate Investment Trusts - 2.0% | ||||||||||
†Captial Trust Cl. A | 600 | 20,046 | Industrial Services – 2.2% | |||||||
Gladstone Commercial | 600 | 9,456 | Commercial Services - 2.2% | |||||||
Viad Corporation | 250 | 7,085 | ||||||||
29,502 | Watson Wyatt & Company Holdings | 1,000 | 25,630 | |||||||
Total (cost $29,565) | 32,715 | |||||||||
TOTAL COMMON STOCKS | ||||||||||
(cost $1,285,431) | 1,396,255 | |||||||||
54 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. |
JUNE 30, 2005 (Unaudited) | ||
Royce Dividend Value Fund | ||
VALUE | SHARES | VALUE | ||||||||
REPURCHASE AGREEMENT – 6.0% | COMMON STOCKS – 85.3% | |||||||||
State Street Bank & Trust Company, | Consumer Products – 3.7% | |||||||||
2.55% dated 6/30/05, due 7/1/05, | Apparel and Shoes - 1.4% | |||||||||
maturity value $88,006 | K-Swiss Cl. A | 700 | $ | 22,638 | ||||||
(collateralized by obligations of various | Polo Ralph Lauren Cl. A | 500 | 21,555 | |||||||
U.S. Government Agencies, valued at $93,159) | ||||||||||
(cost $88,000) | $ | 88,000 | 44,193 | |||||||
TOTAL INVESTMENTS – 100.1% | Collectibles - 0.4% | |||||||||
(cost $1,373,431) | 1,484,255 | 1,500 | 13,230 | |||||||
| ||||||||||
LIABILITIES LESS CASH AND OTHER ASSETS – (0.1)% | (954 | ) | Home Furnishing and Appliances - 1.9% | |||||||
Ethan Allen Interiors | 700 | 23,457 | ||||||||
NET ASSETS – 100.0% | $ | 1,483,301 | Furniture Brands International | 800 | 17,288 | |||||
Natuzzi ADRb | 2,000 | 16,280 | ||||||||
Total (cost $109,789) | 114,448 | |||||||||
Consumer Services – 6.2% | ||||||||||
Leisure and Entertainment - 0.5% | ||||||||||
Regal Entertainment Group Cl. A | 800 | 15,104 | ||||||||
Restaurants and Lodgings - 0.4% | ||||||||||
CBRL Group | 300 | 11,658 | ||||||||
Retail Stores - 4.1% | ||||||||||
†Borders Group | 1,400 | 35,434 | ||||||||
Claire’s Stores | 1,600 | 38,480 | ||||||||
Dress Barn (The)a | 600 | 13,578 | ||||||||
Pier 1 Imports | 1,800 | 25,542 | ||||||||
Talbots | 400 | 12,988 | ||||||||
126,022 | ||||||||||
Other Consumer Services - 1.2% | ||||||||||
MoneyGram International | 2,000 | 38,240 | ||||||||
Total (cost $182,433) | 191,024 | |||||||||
Financial Intermediaries – 13.3% | ||||||||||
Banking - 6.8% | ||||||||||
Arrow Financial | 500 | 13,920 | ||||||||
BOK Financial | 600 | 27,672 | ||||||||
†Bank of NT Butterfield | 500 | 20,750 | ||||||||
Boston Private Financial Holdings | 1,300 | 32,760 | ||||||||
†Canadian Western Bank | 1,200 | 28,237 | ||||||||
Fauquier Bankshares | 900 | 23,400 | ||||||||
Peapack-Gladstone Financial | 1,000 | 27,700 | ||||||||
†Whitney Holding | 1,000 | 32,630 | ||||||||
207,069 | ||||||||||
Insurance - 2.6% | ||||||||||
Alleghany Corporationa | 102 | 30,294 | ||||||||
Erie Indemnity Company Cl. A | 400 | 21,700 | ||||||||
Transatlantic Holdings | 500 | 27,910 | ||||||||
79,904 | ||||||||||
Real Estate Investment Trusts - 3.1% | ||||||||||
†Captial Trust Cl. A | 2,300 | 76,843 | ||||||||
Gladstone Commercial | 1,200 | 18,912 | ||||||||
95,755 | ||||||||||
Securities Brokers - 0.8% | ||||||||||
Friedman, Billings, Ramsey Group Cl. A | 1,700 | 24,310 | ||||||||
Total (cost $408,006) | 407,038 | |||||||||
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 55 |
SCHEDULES OF INVESTMENTS | |||||||||||||||
Royce Dividend Value Fund (continued) | |||||||||||||||
SHARES | VALUE | SHARES | VALUE | |||||||
Financial Services – 24.7% | Industrial Services – 4.2% | |||||||||
Information and Processing - 4.2% | Commercial Services - 1.9% | |||||||||
Fair Isaac | 1,000 | $ | 36,500 | ALLETE | 600 | $ | 29,940 | |||
SEI Investments | 2,500 | 93,375 | Central Parking | 600 | 8,250 | |||||
Kelly Services Cl. A | 500 | 14,320 | ||||||||
129,875 | Viad Corporation | 250 | 7,085 | |||||||
Insurance Brokers - 6.9% | 59,595 | |||||||||
Aon Corporation | 1,000 | 25,040 | ||||||||
Brown & Brown | 1,200 | 53,928 | Transportation and Logistics - 0.9% | |||||||
Gallagher (Arthur J.) & Company | 3,300 | 89,529 | Alexander & Baldwin | 600 | 27,810 | |||||
Hilb Rogal & Hobbs Company | 1,200 | 41,280 | ||||||||
Other Industrial Services - 1.4% | ||||||||||
209,777 | Landauer | 800 | 41,528 | |||||||
Investment Management - 13.6% | Total (Cost $111,507) | 128,933 | ||||||||
Alliance Capital Management Holding L.P. | 3,200 | 149,568 | ||||||||
Apollo Investment | 1,030 | 18,984 | Natural Resources – 0.8% | |||||||
Federated Investors Cl. B | 2,500 | 75,025 | Energy Services - 0.8% | |||||||
Gabelli Asset Management Cl. A | 500 | 22,095 | Helmerich & Payne | 500 | 23,460 | |||||
MCG Capital | 1,000 | 17,080 | ||||||||
MVC Capital | 1,500 | 15,000 | Total (Cost $15,470) | 23,460 | ||||||
Nuveen Investments Cl. A | 1,500 | 56,430 | ||||||||
†T. Rowe Price Group | 1,000 | 62,600 | Technology – 14.4% | |||||||
Aerospace and Defense - 0.9% | ||||||||||
416,782 | †HEICO Corporation Cl. A | 1,500 | 27,030 | |||||||
Total (Cost $698,908) | 756,434 | Components and Systems - 9.0% | ||||||||
AVX Corporation | 2,000 | 24,240 | ||||||||
Health – 1.1% | American Power Conversion | 1,000 | 23,590 | |||||||
Medical Products and Devices - 1.1% | †Analogic Corporation | 700 | 35,224 | |||||||
Applera Corporation- Applied | Dionex Corporationa | 1,000 | 43,610 | |||||||
Biosystems Group | 800 | 15,736 | Lowrance Electronics | 1,500 | 31,530 | |||||
Arrow International | 600 | 19,140 | †Nam Tai Electronics | 1,700 | 38,658 | |||||
Technitrol | 3,300 | 46,629 | ||||||||
Total (Cost $32,864) | 34,876 | †Tektronix | 1,400 | 32,578 | ||||||
Industrial Products – 14.0% | 276,059 | |||||||||
Automotive - 2.6% | ||||||||||
Adesa | 2,300 | 50,071 | IT Services - 0.7% | |||||||
CLARCOR | 1,000 | 29,250 | Syntel | 1,200 | 19,236 | |||||
79,321 | Semiconductors and Equipment - 1.0% | |||||||||
Cognex Corporation | 1,200 | 31,428 | ||||||||
Machinery - 4.7% | ||||||||||
Briggs & Stratton | 800 | 27,696 | Telecommunications - 2.8% | |||||||
Lincoln Electric Holdings | 1,600 | 53,040 | †North Pittsburgh Systems | 1,500 | 29,340 | |||||
Nordson Corporation | 800 | 27,424 | Scientific-Atlanta | 1,700 | 56,559 | |||||
Stewart & Stevenson Services | 1,500 | 33,990 | ||||||||
85,899 | ||||||||||
142,150 | ||||||||||
Total (Cost $431,364) | 439,652 | |||||||||
Pumps, Valves and Bearings - 1.9% | ||||||||||
Franklin Electric | 1,500 | 57,975 | Utilities – 1.5% | |||||||
Aqua America | 1,500 | 44,610 | ||||||||
Specialty Chemicals and Materials - 2.6% | ||||||||||
Balchem Corporation | 750 | 22,537 | Total (Cost $33,195) | 44,610 | ||||||
MacDermid | 1,300 | 40,508 | ||||||||
Quaker Chemical | 1,000 | 17,450 | Miscellaneous – 1.4% | |||||||
Total (Cost $46,368) | 42,757 | |||||||||
80,495 | ||||||||||
TOTAL COMMON STOCKS | ||||||||||
Other Industrial Products - 2.2% | (Cost $2,477,276) | 2,609,809 | ||||||||
†Brady Corporation Cl. A | 1,000 | 31,000 | ||||||||
Quixote Corporation | 1,000 | 19,610 | ||||||||
Smith (A.O.) Corporation | 600 | 16,026 | ||||||||
66,636 | ||||||||||
Total (Cost $407,372) | 426,577 | |||||||||
56 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. |
JUNE 30, 2005 (Unaudited) | |||||||||||||||
SHARES | VALUE | |||||||||
PREFERRED STOCKS – 1.5% | ||||||||||
Central Parking Finance Trust 5.25% Conv. | 1,000 | $ | 20,000 | |||||||
First Union Real Estate Equity & Mortgage | ||||||||||
Investments Ser. A 8.40% Conv. | 1,000 | 24,800 | ||||||||
TOTAL PREFERRED STOCKS | ||||||||||
(cost $44,082) | 44,800 | |||||||||
CORPORATE BONDS – 3.0% | ||||||||||
†Athena Neurosciences Finance 7.25% | ||||||||||
Senior Note due 2/21/08 | 100,000 | 93,000 | ||||||||
TOTAL CORPORATE BONDS | ||||||||||
(cost $83,093) | 93,000 | |||||||||
REPURCHASE AGREEMENT – 22.6% | ||||||||||
State Street Bank & Trust Company, | ||||||||||
2.55% dated 6/30/05, due 7/1/05, | ||||||||||
maturity value $691,049 | ||||||||||
(collateralized by obligations of various | ||||||||||
U.S. Government Agencies | ||||||||||
valued at $711,615) | ||||||||||
(cost $691,000) | 691,000 | |||||||||
TOTAL INVESTMENTS – 112.4% | ||||||||||
(cost $3,295,451) | 3,438,609 | |||||||||
| ||||||||||
LIABILITIES LESS CASH AND OTHER ASSETS – (12.4)% | (379,866 | ) | ||||||||
NET ASSETS - 100.0% | $ | 3,058,743 | ||||||||
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 57 |
STATEMENTS OF ASSETS AND LIABILITIES | ||||||||||||||||
Pennsylvania Mutual Fund | Royce Micro-Cap Fund | Royce Premier Fund | Royce Low-Priced Stock Fund | ||||||||||||||
ASSETS: | |||||||||||||||||
Investments at value | |||||||||||||||||
(including collateral on loaned securities)* | |||||||||||||||||
Non-Affiliates | $ | 1,907,754,379 | $ | 534,494,342 | $ | 2,035,401,363 | $ | 2,778,593,606 | |||||||||
Affiliated Companies | 124,660,595 | 7,479,948 | 861,780,962 | 924,455,481 | |||||||||||||
Repurchase agreements (at cost and value) | 309,452,000 | 66,673,000 | 452,559,000 | 336,231,000 | |||||||||||||
Cash | 765 | 508,928 | 18,372 | 885,375 | |||||||||||||
Receivable for investments sold | 2,194,701 | 1,771,400 | 3,864,771 | 10,721,840 | |||||||||||||
Receivable for capital shares sold | 6,194,958 | 658,478 | 6,719,472 | 6,696,082 | |||||||||||||
Receivable for dividends and interest | 842,965 | 183,657 | 2,492,109 | 1,827,284 | |||||||||||||
Prepaid expenses and other assets | 23,883 | 7,533 | 36,907 | 52,192 | |||||||||||||
Total Assets | 2,351,124,246 | 611,777,286 | 3,362,872,956 | 4,059,462,860 | |||||||||||||
LIABILITIES: | |||||||||||||||||
Payable for collateral on loaned securities | 44,505,248 | 10,897,839 | 194,592 | 64,289,083 | |||||||||||||
Payable for investments purchased | 10,075,850 | 36,100 | 12,639,977 | 6,674,669 | |||||||||||||
Payable for capital shares redeemed | 1,520,279 | 702,987 | 4,330,697 | 18,248,270 | |||||||||||||
Payable for investment advisory fees | 1,399,583 | 638,326 | 2,665,613 | 4,111,131 | |||||||||||||
Accrued expenses | 621,475 | 214,449 | 993,550 | 1,506,343 | |||||||||||||
Total Liabilities | 58,122,435 | 12,489,701 | 20,824,429 | 94,829,496 | |||||||||||||
Net Assets | $ | 2,293,001,811 | $ | 599,287,585 | $ | 3,342,048,527 | $ | 3,964,633,364 | |||||||||
ANALYSIS OF NET ASSETS: | |||||||||||||||||
Paid-in capital | $ | 1,652,946,270 | $ | 459,649,176 | $ | 2,482,341,185 | $ | 3,278,704,057 | |||||||||
Undistributed net investment income (loss) | (6,166,060 | ) | (6,085,768 | ) | (1,610,313 | ) | (29,957,918 | ) | |||||||||
Accumulated net realized gain (loss) on investments | 81,464,174 | 52,811,497 | 129,124,018 | 225,279,900 | |||||||||||||
Net unrealized appreciation (depreciation) on investments | 564,757,427 | 92,912,680 | 732,193,637 | 490,607,325 | |||||||||||||
Net Assets | $ | 2,293,001,811 | $ | 599,287,585 | $ | 3,342,048,527 | $ | 3,964,633,364 | |||||||||
Investment Class | $ | 1,487,086,904 | $ | 436,851,397 | $ | 2,789,777,611 | $ | 3,964,633,364 | |||||||||
Consultant Class | $ | 805,914,907 | $ | 155,671,593 | $ | 35,645,326 | |||||||||||
Institutional Class | $ | 5,742,311 | $ | 175,676,019 | |||||||||||||
Financial Intermediary Class | $ | 1,022,284 | $ | 95,671,723 | |||||||||||||
W Class | $ | 245,277,848 | |||||||||||||||
SHARES OUTSTANDING: | |||||||||||||||||
(unlimited number of $.001 par value shares authorized for each Fund) | |||||||||||||||||
Investment Class | 142,982,710 | 28,754,541 | 184,839,129 | 269,555,317 | |||||||||||||
Consultant Class | 80,849,211 | 10,845,199 | 2,425,225 | ||||||||||||||
Institutional Class | 376,964 | 11,616,063 | |||||||||||||||
Financial Intermediary Class | 67,456 | 6,364,769 | |||||||||||||||
W Class | 16,252,567 | ||||||||||||||||
NET ASSET VALUES: | |||||||||||||||||
(Net Assets ÷ Shares Outstanding) | |||||||||||||||||
Investment Class (1) | $10.40 | $15.19 | $15.09 | $14.71 | |||||||||||||
Consultant Class (1) | $9.97 | $14.35 | $14.70 | ||||||||||||||
Institutional Class (2) | $15.23 | $15.12 | |||||||||||||||
Financial Intermediary Class (2) | $15.15 | $15.03 | |||||||||||||||
W Class (2) | $15.09 | ||||||||||||||||
* Investments at identified cost | $ | 1,467,657,547 | $ | 449,061,610 | $ | 2,164,988,688 | $ | 3,212,441,762 | |||||||||
Market value of loaned securities | $ | 43,179,922 | $ | 7,203,552 | $ | 187,362 | $ | 60,614,838 | |||||||||
(1) | Offering and redemption price per share; shares redeemed within six months of purchase are subject to a 1% redemption fee, payable to the Fund. | |
(2) | Offering and redemption price per share. |
58 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. |
JUNE 30, 2005 (Unaudited) | |||||||||||||||
Royce | Royce | Royce | Royce | |||||||||||
Total Return | TrustShares | Opportunity | Special Equity | |||||||||||
Fund | Fund | Fund | Fund | |||||||||||
ASSETS: | ||||||||||||||
Investments at value | ||||||||||||||
(including collateral on loaned securities)* | ||||||||||||||
Non-Affiliates | $ | 4,644,853,105 | $ | 50,722,317 | $ | 1,853,658,538 | $ | 716,242,626 | ||||||
Affiliated Companies | 105,180,379 | – | 77,933,001 | 119,738,518 | ||||||||||
Repurchase agreements (at cost and value) | 314,821,000 | 1,410,000 | 127,204,000 | 77,513,000 | ||||||||||
Cash | 29,273 | 3,375 | 125,520 | 29,335 | ||||||||||
Receivable for investments sold | 39,938,708 | 1,720,212 | 6,721,910 | 1,324,380 | ||||||||||
Receivable for capital shares sold | 12,855,701 | 39,000 | 2,946,550 | 847,661 | ||||||||||
Receivable for dividends and interest | 10,588,980 | 27,468 | 626,037 | 566,641 | ||||||||||
Prepaid expenses and other assets | 54,565 | 620 | 23,542 | 11,834 | ||||||||||
Total Assets | 5,128,321,711 | 53,922,992 | 2,069,239,098 | 916,273,995 | ||||||||||
LIABILITIES: | ||||||||||||||
Payable for collateral on loaned securities | 14,790,068 | – | 186,025,434 | 4,333,924 | ||||||||||
Payable for investments purchased | 34,794,107 | 937,987 | 14,098,962 | 916,849 | ||||||||||
Payable for capital shares redeemed | 3,744,258 | – | 1,989,980 | 966,249 | ||||||||||
Payable for investment advisory fees | 3,935,412 | 43,668 | 1,529,892 | 751,755 | ||||||||||
Accrued expenses | 1,578,856 | 35,888 | 506,496 | 243,736 | ||||||||||
Total Liabilities | 58,842,701 | 1,017,543 | 204,150,764 | 7,212,513 | ||||||||||
Net Assets | $ | 5,069,479,010 | $ | 52,905,449 | $ | 1,865,088,334 | $ | 909,061,482 | ||||||
ANALYSIS OF NET ASSETS: | ||||||||||||||
Paid-in capital | $ | 3,996,478,193 | $ | 41,524,096 | $ | 1,437,836,135 | $ | 731,141,749 | ||||||
Undistributed net investment income (loss) | 2,549,308 | (151,739 | ) | (4,339,384 | ) | 2,411,947 | ||||||||
Accumulated net realized gain (loss) on investments | 133,330,476 | 6,803,435 | 188,723,706 | 16,635,303 | ||||||||||
Net unrealized appreciation (depreciation) on investments | 937,121,033 | 4,729,657 | 242,867,877 | 158,872,483 | ||||||||||
Net Assets | $ | 5,069,479,010 | $ | 52,905,449 | $ | 1,865,088,334 | $ | 909,061,482 | ||||||
Investment Class | $ | 3,967,099,693 | $ | 50,904,807 | $ | 1,501,513,548 | $ | 713,443,574 | ||||||
Consultant Class | $ | 556,459,702 | $ | 2,000,642 | $ | 19,156,105 | ||||||||
Institutional Class | $ | 146,498,153 | $ | 171,392,756 | $ | 163,221,521 | ||||||||
Financial Intermediary Class | $ | 297,207,453 | $ | 192,182,030 | $ | 13,240,282 | ||||||||
W Class | $ | 102,214,009 | ||||||||||||
SHARES OUTSTANDING: | ||||||||||||||
(unlimited number of $.001 par value | ||||||||||||||
shares authorized for each Fund) | ||||||||||||||
Investment Class | 320,080,765 | 4,121,459 | 116,673,921 | 37,235,844 | ||||||||||
Consultant Class | 45,002,802 | 175,890 | 1,012,803 | |||||||||||
Institutional Class | 11,785,410 | 13,276,152 | 8,528,557 | |||||||||||
Financial Intermediary Class | 24,245,486 | 15,099,914 | 693,523 | |||||||||||
W Class | 8,237,282 | |||||||||||||
NET ASSET VALUES: | ||||||||||||||
(Net Assets ÷ Shares Outstanding) | ||||||||||||||
Investment Class (1) | $12.39 | $12.35 | $12.87 | $19.16 | ||||||||||
Consultant Class (1) | $12.37 | $11.37 | $18.91 | |||||||||||
Institutional Class (2) | $12.43 | $12.91 | $19.14 | |||||||||||
Financial Intermediary Class (2) | $12.26 | $12.73 | $19.09 | |||||||||||
W Class (2) | $12.41 | |||||||||||||
* Investments at identified cost | $ | 3,812,912,451 | $ | 45,992,660 | $ | 1,688,723,662 | $ | 677,108,661 | ||||||
Market value of loaned securities | $ | 9,982,428 | $ | – | $ | 178,286,860 | $ | 4,324,800 | ||||||
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 59 |
STATEMENTS OF ASSETS AND LIABILITIES | |||||||||||||||
Royce Select Fund | Royce Value Fund | Royce Value Plus Fund | Royce Technology Value Fund | ||||||||||||
ASSETS: | |||||||||||||||
Investments at value* | |||||||||||||||
Non-Affiliates | $ | 19,993,114 | $ | 53,949,148 | $ | 193,083,227 | $ | 24,480,721 | |||||||
Repurchase agreements (at cost and value) | 2,886,000 | 8,715,000 | 15,956,000 | 4,041,000 | |||||||||||
Cash | 53 | 857 | 529 | 1,021 | |||||||||||
Receivable for investments sold | 520,937 | 2,674 | 5,302,606 | 1,773,271 | |||||||||||
Receivable for capital shares sold | – | 216,044 | 865,845 | 9,295 | |||||||||||
Receivable for dividends and interest | 13,572 | 19,900 | 77,857 | 286 | |||||||||||
Prepaid expenses and other assets | – | 500 | 2,483 | 432 | |||||||||||
Total Assets | 23,413,676 | 62,904,123 | 215,288,547 | 30,306,026 | |||||||||||
LIABILITIES: | |||||||||||||||
Payable for investments purchased | 177,505 | 1,112,978 | 3,303,553 | 663,395 | |||||||||||
Payable for capital shares redeemed | – | 177,226 | 1,594,467 | 95,517 | |||||||||||
Payable for investment advisory fees | – | 49,407 | 174,211 | 37,431 | |||||||||||
Accrued expenses | – | 33,959 | 69,256 | 20,399 | |||||||||||
Total Liabilities | 177,505 | 1,373,570 | 5,141,487 | 816,742 | |||||||||||
Net Assets | $ | 23,236,171 | $ | 61,530,553 | $ | 210,147,060 | $ | 29,489,284 | |||||||
ANALYSIS OF NET ASSETS: | |||||||||||||||
Paid-in capital | $ | 16,059,005 | $ | 55,652,664 | $ | 197,564,636 | $ | 31,866,871 | |||||||
Undistributed net investment income (loss) | 174,782 | (130,022 | ) | (858,856 | ) | (260,598 | ) | ||||||||
Accumulated net realized gain (loss) on investments | 3,233,749 | 1,225,216 | 4,727,775 | (332,746 | ) | ||||||||||
Net unrealized appreciation (depreciation) on investments | 3,768,635 | 4,782,695 | 8,713,505 | (1,784,243 | ) | ||||||||||
Net Assets | $ | 23,236,171 | $ | 61,530,553 | $ | 210,147,060 | $ | 29,489,284 | |||||||
Investment Class | $ | 23,236,171 | $ | 61,530,553 | $ | 210,147,060 | $ | 29,489,284 | |||||||
SHARES OUTSTANDING: | |||||||||||||||
(unlimited number of $.001 par value | |||||||||||||||
shares authorized for each Fund) | |||||||||||||||
Investment Class | 114,552 | 7,188,689 | 20,294,939 | 4,790,213 | |||||||||||
NET ASSET VALUES: | |||||||||||||||
(Net Assets ÷ Shares Outstanding) | |||||||||||||||
Investment Class (1) | $202.84 | $8.56 | $10.35 | $6.16 | |||||||||||
* Investments at identified cost | $ | 16,224,479 | $ | 49,166,453 | $ | 184,369,722 | $ | 26,264,964 | |||||||
60 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. |
JUNE 30, 2005 (Unaudited) | |||||||||||||||
Royce 100 Fund | Royce Discovery Fund | Royce Financial Services Fund | Royce Dividend Value Fund | ||||||||||||
ASSETS: | |||||||||||||||
Investments at value* | |||||||||||||||
Non-Affiliates | $ | 10,260,611 | $ | 2,771,239 | $ | 1,396,255 | $ | 2,747,609 | |||||||
Repurchase agreements (at cost and value) | 839,000 | 439,000 | 88,000 | 691,000 | |||||||||||
Cash | 499 | 2,725 | 1,730 | – | |||||||||||
Receivable for investments sold | 118,464 | – | – | – | |||||||||||
Receivable for capital shares sold | 29,020 | 254 | – | 4,979 | |||||||||||
Receivable for dividends and interest | 6,839 | 866 | 2,764 | 7,989 | |||||||||||
Prepaid expenses and other assets | 109 | 37 | 17 | 20 | |||||||||||
Total Assets | 11,254,542 | 3,214,121 | 1,488,766 | 3,451,597 | |||||||||||
LIABILITIES: | |||||||||||||||
Payable for investments purchased | – | – | – | 386,311 | |||||||||||
Payable for capital shares redeemed | 25,178 | – | – | – | |||||||||||
Payable for investment advisory fees | 6,076 | – | – | – | |||||||||||
Payable to custodian for cash overdrawn | – | – | – | 924 | |||||||||||
Accrued expenses | 15,424 | 14,989 | 5,465 | 5,619 | |||||||||||
Total Liabilities | 46,678 | 14,989 | 5,465 | 392,854 | |||||||||||
Net Assets | $ | 11,207,864 | $ | 3,199,132 | $ | 1,483,301 | $ | 3,058,743 | |||||||
ANALYSIS OF NET ASSETS: | |||||||||||||||
Paid-in capital | $ | 9,766,127 | $ | 2,834,995 | $ | 1,352,069 | $ | 2,908,866 | |||||||
Undistributed net investment income (loss) | (25,073 | ) | (12,667 | ) | 6,776 | 2,057 | |||||||||
Accumulated net realized gain (loss) on investments | 540,598 | 238,660 | 13,632 | 4,662 | |||||||||||
Net unrealized appreciation (depreciation) on investments | 926,212 | 138,144 | 110,824 | 143,158 | |||||||||||
Net Assets | $ | 11,207,864 | $ | 3,199,132 | $ | 1,483,301 | $ | 3,058,743 | |||||||
Investment Class | $ | 11,207,864 | $ | 3,199,132 | $ | 1,483,301 | $ | 3,058,743 | |||||||
SHARES OUTSTANDING: | |||||||||||||||
(unlimited number of $.001 par value shares authorized for each Fund) | |||||||||||||||
Investment Class | 1,632,418 | 507,944 | 265,344 | 549,809 | |||||||||||
NET ASSET VALUES: | |||||||||||||||
(Net Assets ÷ Shares Outstanding) | |||||||||||||||
Investment Class (1) | $ | 6.87 | $ | 6.30 | $ | 5.59 | $ | 5.56 | |||||||
* Investments at identified cost | $ | 9,334,399 | $ | 2,633,095 | $ | 1,285,431 | $ | 2,604,451 | |||||||
(1) Offering and redemption price per share; shares redeemed within six months of purchase are subject to a 1% redemption fee, payable to the Fund. |
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 61 |
STATEMENTS OF CHANGES IN NET ASSETS | |||||||||||||||
Pennsylvania Mutual Fund | Royce Micro-Cap Fund | Royce Premier Fund | ||||||||||||||||||||||
Six months ended 6/30/05 (unaudited) | Year ended 12/31/04 | Six months ended 6/30/05 (unaudited) | Year ended 12/31/04 | Six months ended 6/30/05 (unaudited) | Year ended 12/31/04 | |||||||||||||||||||
INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income (loss) | $ | (2,482,756 | ) | $ | (9,162,190 | ) | $ | (2,914,040 | ) | $ | (7,119,421 | ) | $ | (1,610,313 | ) | $ | (10,423,588 | ) | ||||||
Net realized gain (loss) on investments | 64,898,947 | 113,934,931 | 40,357,129 | 67,207,876 | 132,082,952 | 118,466,810 | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | (6,473,810 | ) | 198,326,330 | (60,774,934 | ) | 27,022,698 | (134,266,124 | ) | 398,822,087 | |||||||||||||||
Net increase (decrease) in net assets from investment operations | 55,942,381 | 303,099,071 | (23,331,845 | ) | 87,111,153 | (3,793,485 | ) | 506,865,309 | ||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||
Investment Class | – | – | – | – | – | – | ||||||||||||||||||
Consultant Class | – | – | – | – | – | – | ||||||||||||||||||
Institutional Class | – | – | – | – | ||||||||||||||||||||
Financial Intermediary Class | – | – | – | – | ||||||||||||||||||||
W Class | – | |||||||||||||||||||||||
Net realized gain on investments | ||||||||||||||||||||||||
Investment Class | – | (60,341,929 | ) | – | (42,716,301 | ) | – | (131,048,297 | ) | |||||||||||||||
Consultant Class | – | (37,887,815 | ) | – | (15,620,233 | ) | – | (1,153,428 | ) | |||||||||||||||
Institutional Class | – | (528,342 | ) | – | (3,776,526 | ) | ||||||||||||||||||
Financial Intermediary Class | – | (102,415 | ) | – | (3,176,505 | ) | ||||||||||||||||||
W Class | – | |||||||||||||||||||||||
Total distributions | – | (98,229,744 | ) | – | (58,967,291 | ) | – | (139,154,756 | ) | |||||||||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||||||||||
Value of shares sold | ||||||||||||||||||||||||
Investment Class | 320,293,864 | 399,764,759 | 53,740,955 | 80,412,061 | 444,393,056 | 1,161,984,791 | ||||||||||||||||||
Consultant Class | 100,990,684 | 220,269,642 | 12,839,625 | 28,203,606 | 11,532,748 | 20,355,465 | ||||||||||||||||||
Institutional Class | 14,215 | – | 89,769,791 | 78,625,319 | ||||||||||||||||||||
Financial Intermediary Class | 111,031 | 1,018,173 | 39,905,865 | 49,666,056 | ||||||||||||||||||||
W Class | 235,943,453 | |||||||||||||||||||||||
Distributions reinvested | ||||||||||||||||||||||||
Investment Class | – | 47,785,285 | – | 40,183,518 | – | 123,888,623 | ||||||||||||||||||
Consultant Class | – | 37,209,584 | – | 15,393,303 | – | 1,127,437 | ||||||||||||||||||
Institutional Class | – | 528,340 | – | 3,009,484 | ||||||||||||||||||||
Financial Intermediary Class | – | 102,412 | – | 3,176,504 | ||||||||||||||||||||
W Class | – | |||||||||||||||||||||||
Value of shares redeemed | ||||||||||||||||||||||||
Investment Class | (115,964,175 | ) | (176,169,523 | ) | (73,742,515 | ) | (101,639,890 | ) | (612,635,482 | ) | (375,088,516 | ) | ||||||||||||
Consultant Class | (64,888,376 | ) | (61,434,358 | ) | (20,305,037 | ) | (23,650,795 | ) | (2,701,857 | ) | (2,013,525 | ) | ||||||||||||
Institutional Class | (13,178 | ) | (5,000,000 | ) | (20,541,379 | ) | (8,740,165 | ) | ||||||||||||||||
Financial Intermediary Class | (205,034 | ) | (173,375 | ) | (14,620,352 | ) | (22,484,759 | ) | ||||||||||||||||
W Class | (1,887,609 | ) | ||||||||||||||||||||||
Shareholder redemption fees | ||||||||||||||||||||||||
Investment Class | 143,375 | 91,236 | 23,201 | 38,721 | 270,095 | 374,927 | ||||||||||||||||||
Consultant Class | 36,613 | 18,776 | 7,035 | 4,063 | 4,678 | 1,791 | ||||||||||||||||||
Net increase (decrease) in net assets from capital share transactions | 240,611,985 | 467,535,401 | (27,529,702 | ) | 35,420,137 | 169,433,007 | 1,033,883,432 | |||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS | 296,554,366 | 672,404,728 | (50,861,547 | ) | 63,563,999 | 165,639,522 | 1,401,593,985 | |||||||||||||||||
NET ASSETS: | ||||||||||||||||||||||||
Beginning of period | 1,996,447,445 | 1,324,042,717 | 650,149,132 | 586,585,133 | 3,176,409,005 | 1,774,815,020 | ||||||||||||||||||
End of period | $ | 2,293,001,811 | $ | 1,996,447,445 | $ | 599,287,585 | $ | 650,149,132 | $ | 3,342,048,527 | $ | 3,176,409,005 | ||||||||||||
UNDISTRIBUTED NET INVESTMENT | ||||||||||||||||||||||||
INCOME (LOSS) AT END OF PERIOD | $ | (6,166,060 | ) | $ | (3,683,304 | ) | $ | (6,085,768 | ) | $ | (3,171,728 | ) | $ | (1,610,313 | ) | $ | – | |||||||
62 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. |
Royce Low-Priced Stock Fund | Royce Total Return Fund | Royce TrustShares Fund | ||||||||||||||||||||||
Six months ended 6/30/05 (unaudited) | Year ended 12/31/04 | Six months ended 6/30/05 (unaudited) | Year ended 12/31/04 | Six months ended 6/30/05 (unaudited) | Year ended 12/31/04 | |||||||||||||||||||
INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income (loss) | $ | (13,528,083 | ) | $ | (39,235,326 | ) | $ | 20,201,139 | $ | 34,596,972 | $ | (151,739 | ) | $ | (530,216 | ) | ||||||||
Net realized gain (loss) on investments | 195,383,289 | 223,686,531 | 93,127,137 | 90,736,052 | 4,105,305 | 8,922,430 | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | (385,967,088 | ) | 328,519,772 | (36,110,823 | ) | 501,980,794 | (6,691,209 | ) | 492,000 | |||||||||||||||
Net increase (decrease) in net assets from investment operations | (204,111,882 | ) | 512,970,977 | 77,217,453 | 627,313,818 | (2,737,643 | ) | 8,884,214 | ||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||
Investment Class | – | – | (15,888,055 | ) | (32,072,227 | ) | – | – | ||||||||||||||||
Consultant Class | – | (482,963 | ) | – | – | |||||||||||||||||||
Institutional Class | (700,143 | ) | (1,088,201 | ) | ||||||||||||||||||||
Financial Intermediary Class | (934,824 | ) | (1,891,793 | ) | ||||||||||||||||||||
Consultant B Class | – | |||||||||||||||||||||||
W Class | (156,008 | ) | ||||||||||||||||||||||
Net realized gain on investments | ||||||||||||||||||||||||
Investment Class | – | (166,436,268 | ) | – | (50,201,250 | ) | – | (4,848,120 | ) | |||||||||||||||
Consultant Class | – | (6,748,606 | ) | – | (189,655 | ) | ||||||||||||||||||
Institutional Class | – | (1,613,788 | ) | |||||||||||||||||||||
Financial Intermediary Class | – | (3,553,954 | ) | |||||||||||||||||||||
Consultant B Class | (1,050,854 | ) | ||||||||||||||||||||||
W Class | – | |||||||||||||||||||||||
Total distributions | – | (166,436,268 | ) | (17,679,030 | ) | (97,652,782 | ) | – | (6,088,629 | ) | ||||||||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||||||||||
Value of shares sold | ||||||||||||||||||||||||
Investment Class | 344,382,585 | 2,166,338,469 | 712,220,060 | 1,463,527,509 | 1,059,950 | 9,773,344 | ||||||||||||||||||
Consultant Class | 79,909,310 | 164,755,546 | 273,981 | 902,341 | ||||||||||||||||||||
Institutional Class | 36,259,330 | 49,918,077 | ||||||||||||||||||||||
Financial Intermediary Class | 61,739,358 | 135,644,866 | ||||||||||||||||||||||
Consultant B Class | – | |||||||||||||||||||||||
W Class | 99,309,156 | |||||||||||||||||||||||
Distributions reinvested | ||||||||||||||||||||||||
Investment Class | – | 157,688,991 | 14,215,434 | 74,978,512 | – | 4,847,313 | ||||||||||||||||||
Consultant Class | – | 7,090,653 | – | 189,652 | ||||||||||||||||||||
Institutional Class | 592,081 | 2,398,034 | ||||||||||||||||||||||
Financial Intermediary Class | 860,387 | 5,222,998 | ||||||||||||||||||||||
Consultant B Class | 1,045,335 | |||||||||||||||||||||||
W Class | 155,965 | |||||||||||||||||||||||
Value of shares redeemed | ||||||||||||||||||||||||
Investment Class | (945,165,652 | ) | (947,839,560 | ) | (542,594,140 | ) | (517,963,364 | ) | (415,197 | ) | (313,936 | ) | ||||||||||||
Consultant Class | (31,655,204 | ) | (37,176,274 | ) | (51,924 | ) | (6,325 | ) | ||||||||||||||||
Institutional Class | (16,302,215 | ) | (9,717,484 | ) | ||||||||||||||||||||
Financial Intermediary Class | (30,353,190 | ) | (40,612,557 | ) | ||||||||||||||||||||
Consultant B Class | (6,874,460 | ) | ||||||||||||||||||||||
W Class | (654,557 | ) | ||||||||||||||||||||||
Shareholder redemption fees | ||||||||||||||||||||||||
Investment Class | 110,980 | 594,267 | 239,102 | 368,761 | 410 | – | ||||||||||||||||||
Consultant Class | 15,195 | 14,820 | – | – | ||||||||||||||||||||
Net increase (decrease) in net assets from capital share transactions | (600,672,087 | ) | 1,376,782,167 | 383,956,072 | 1,298,450,097 | 867,220 | 9,563,264 | |||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS | (804,783,969 | ) | 1,723,316,876 | 443,494,495 | 1,828,111,133 | (1,870,423 | ) | 12,358,849 | ||||||||||||||||
NET ASSETS: | ||||||||||||||||||||||||
Beginning of period | 4,769,417,333 | 3,046,100,457 | 4,625,984,515 | 2,797,873,382 | 54,775,872 | 42,417,023 | ||||||||||||||||||
End of period | $ | 3,964,633,364 | $ | 4,769,417,333 | $ | 5,069,479,010 | $ | 4,625,984,515 | $ | 52,905,449 | $ | 54,775,872 | ||||||||||||
UNDISTRIBUTED NET INVESTMENT | ||||||||||||||||||||||||
INCOME (LOSS) AT END OF PERIOD | $ | (29,957,918 | ) | $ | (16,429,835 | ) | $ | 2,549,308 | $ | 27,199 | $ | (151,739 | ) | $ | – | |||||||||
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 63 |
STATEMENTS OF CHANGES IN NET ASSETS | ||||||||||||||||||||||||
Royce Opportunity Fund | Royce Special Equity Fund | Royce Select Fund | ||||||||||||||||||||||
Six months ended 6/30/05 (unaudited) | Year ended 12/31/04 | Six months ended 6/30/05 (unaudited) | Year ended 12/31/04 | Six months ended 6/30/05 (unaudited) | Year ended 12/31/04 | |||||||||||||||||||
INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income (loss) | $ | (4,339,384 | ) | $ | (9,943,620 | ) | $ | 2,332,867 | $ | 9,241,916 | $ | 174,782 | $ | (352,103 | ) | |||||||||
Net realized gain (loss) on investments | 151,361,340 | 178,518,721 | 12,712,836 | 32,693,728 | 2,342,218 | 4,485,342 | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | (221,316,169 | ) | 121,887,282 | (41,224,470 | ) | 76,504,323 | (3,275,807 | ) | (102,053 | ) | ||||||||||||||
Net increase (decrease) in net assets from investment operations | (74,294,213 | ) | 290,462,383 | (26,178,767 | ) | 118,439,967 | (758,807 | ) | 4,031,186 | |||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||
Investment Class | – | – | – | (7,804,108 | ) | – | – | |||||||||||||||||
Consultant Class | – | (9,894 | ) | |||||||||||||||||||||
Institutional Class | – | – | – | (1,245,981 | ) | |||||||||||||||||||
Financial Intermediary Class | – | – | – | (102,853 | ) | |||||||||||||||||||
Net realized gain on investments | ||||||||||||||||||||||||
Investment Class | – | (110,004,477 | ) | – | (28,374,174 | ) | – | (2,900,802 | ) | |||||||||||||||
Consultant Class | – | (671,126 | ) | |||||||||||||||||||||
Institutional Class | – | (12,522,158 | ) | – | (4,149,128 | ) | ||||||||||||||||||
Financial Intermediary Class | – | (14,918,769 | ) | – | (416,903 | ) | ||||||||||||||||||
Total distributions | – | (137,445,404 | ) | – | (42,774,167 | ) | – | (2,900,802 | ) | |||||||||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||||||||||
Value of shares sold | ||||||||||||||||||||||||
Investment Class | 147,408,985 | 527,003,633 | 40,205,409 | 254,497,176 | 556,676 | 3,156,947 | ||||||||||||||||||
Consultant Class | 1,102,616 | 9,564,013 | ||||||||||||||||||||||
Institutional Class | 28,350,298 | 104,750,852 | 22,756,096 | 147,561,017 | ||||||||||||||||||||
Financial Intermediary Class | 33,897,452 | 139,480,482 | 1,723,525 | 11,091,090 | ||||||||||||||||||||
Distributions reinvested | ||||||||||||||||||||||||
Investment Class | – | 99,601,474 | – | 32,599,944 | – | 2,705,223 | ||||||||||||||||||
Consultant Class | – | 660,502 | ||||||||||||||||||||||
Institutional Class | – | 10,085,826 | – | 5,086,493 | ||||||||||||||||||||
Financial Intermediary Class | – | 14,915,105 | – | 519,755 | ||||||||||||||||||||
Value of shares redeemed | ||||||||||||||||||||||||
Investment Class | (264,663,954 | ) | (387,748,729 | ) | (161,715,059 | ) | (221,070,970 | ) | (1,482,636 | ) | (3,729,945 | ) | ||||||||||||
Consultant Class | (1,627,656 | ) | (1,215,274 | ) | ||||||||||||||||||||
Institutional Class | (43,024,766 | ) | (19,531,141 | ) | (18,673,380 | ) | (8,167,573 | ) | ||||||||||||||||
Financial Intermediary Class | (63,056,588 | ) | (29,616,118 | ) | (924,329 | ) | (4,780,528 | ) | ||||||||||||||||
Shareholder redemption fees | ||||||||||||||||||||||||
Investment Class | 51,680 | 588,945 | 17,513 | 259,712 | 3,974 | 14,660 | ||||||||||||||||||
Consultant Class | 182 | 661 | ||||||||||||||||||||||
Net increase (decrease) in net assets from capital share transactions | (161,036,893 | ) | 459,530,329 | (117,135,083 | ) | 226,606,018 | (921,986 | ) | 2,146,885 | |||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS | (235,331,106 | ) | 612,547,308 | (143,313,850 | ) | 302,271,818 | (1,680,793 | ) | 3,277,269 | |||||||||||||||
NET ASSETS: | ||||||||||||||||||||||||
Beginning of period | 2,100,419,440 | 1,487,872,132 | 1,052,375,332 | 750,103,514 | 24,916,964 | 21,639,695 | ||||||||||||||||||
End of period | $ | 1,865,088,334 | $ | 2,100,419,440 | $ | 909,061,482 | $ | 1,052,375,332 | $ | 23,236,171 | $ | 24,916,964 | ||||||||||||
UNDISTRIBUTED NET INVESTMENT | ||||||||||||||||||||||||
INCOME (LOSS) AT END OF PERIOD | $ | (4,339,384 | ) | $ | – | $ | 2,411,947 | $ | 79,080 | $ | 174,782 | $ | – | |||||||||||
64 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. |
Royce Value Fund | Royce Value Plus Fund | Royce Technology Value Fund | ||||||||||||||||||||||
Six months ended 6/30/05 (unaudited) | Year ended 12/31/04 | Six months ended 6/30/05 (unaudited) | Year ended 12/31/04 | Six months ended 6/30/05 (unaudited) | Year ended 12/31/04 | |||||||||||||||||||
INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income (loss) | $ | (130,022 | ) | $ | (91,248 | ) | $ | (612,466 | ) | $ | (652,371 | ) | $ | (260,598 | ) | $ | (1,164,571 | ) | ||||||
Net realized gain (loss) on investments | 1,058,846 | 903,640 | 4,501,180 | 1,502,509 | (703,309 | ) | 5,710,431 | |||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | 582,460 | 3,511,843 | (17,758,799 | ) | 23,013,806 | (2,334,111 | ) | (14,480,226 | ) | |||||||||||||||
Net increase (decrease) in net assets from investment operations | 1,511,284 | 4,324,235 | (13,870,085 | ) | 23,863,944 | (3,298,018 | ) | (9,934,366 | ) | |||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||
Investment Class | – | – | – | – | – | – | ||||||||||||||||||
Net realized gain on investments | ||||||||||||||||||||||||
Investment Class | – | (715,106 | ) | – | (717,699 | ) | – | (4,067,154 | ) | |||||||||||||||
Total distributions | – | (715,106 | ) | – | (717,699 | ) | – | (4,067,154 | ) | |||||||||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||||||||||
Value of shares sold | ||||||||||||||||||||||||
Investment Class | 29,459,882 | 33,607,211 | 106,460,258 | 197,807,106 | 4,695,748 | 23,441,296 | ||||||||||||||||||
Distributions reinvested | ||||||||||||||||||||||||
Investment Class | – | 676,672 | – | 663,438 | – | 3,906,053 | ||||||||||||||||||
Value of shares redeemed | ||||||||||||||||||||||||
Investment Class | (8,185,207 | ) | (3,228,194 | ) | (94,678,010 | ) | (30,188,581 | ) | (9,527,742 | ) | (78,478,320 | ) | ||||||||||||
Shareholder redemption fees | ||||||||||||||||||||||||
Investment Class | 31,724 | 13,739 | 254,297 | 146,998 | 17,677 | 326,226 | ||||||||||||||||||
Net increase (decrease) in net assets from capital share transactions | 21,306,399 | 31,069,428 | 12,036,545 | 168,428,961 | (4,814,317 | ) | (50,804,745 | ) | ||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS | 22,817,683 | 34,678,557 | (1,833,540 | ) | 191,575,206 | (8,112,335 | ) | (64,806,265 | ) | |||||||||||||||
NET ASSETS: | ||||||||||||||||||||||||
Beginning of period | 38,712,870 | 4,034,313 | 211,980,600 | 20,405,394 | 37,601,619 | 102,407,884 | ||||||||||||||||||
End of period | $ | 61,530,553 | $ | 38,712,870 | $ | 210,147,060 | $ | 211,980,600 | $ | 29,489,284 | $ | 37,601,619 | ||||||||||||
UNDISTRIBUTED NET INVESTMENT | ||||||||||||||||||||||||
INCOME (LOSS) AT END OF PERIOD | $ | (130,022 | ) | $ | – | $ | (858,856 | ) | $ | (246,390 | ) | $ | (260,598 | ) | $ | – | ||||||||
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 65 |
STATEMENTS OF CHANGES IN NET ASSETS | ||||||||||||||||||||||||
Royce 100 Fund | Royce Discovery Fund | Royce Financial | ||||||||||||||||||||||
Six months ended 6/30/05 (unaudited) | Year ended 12/31/04 | Six months ended 6/30/05 (unaudited) | Year ended 12/31/04 | Six months ended 6/30/05 (unaudited) | Year ended 12/31/04 | |||||||||||||||||||
INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income (loss) | $ | (25,073 | ) | $ | (16,269 | ) | $ | (8,397 | ) | $ | (21,965 | ) | $ | 6,776 | $ | (1,649 | ) | |||||||
Net realized gain (loss) on investments | 400,559 | 360,271 | 229,655 | 58,266 | 13,504 | 22,079 | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | (277,808 | ) | 1,024,000 | (276,299 | ) | 262,572 | (39,296 | ) | 150,120 | |||||||||||||||
Net increase (decrease) in net assets from investment operations | 97,678 | 1,368,002 | (55,041 | ) | 298,873 | (19,016 | ) | 170,550 | ||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||
Investment Class | – | – | – | – | – | – | ||||||||||||||||||
Net realized gain on investments | ||||||||||||||||||||||||
Investment Class | – | (210,006 | ) | – | (31,588 | ) | – | (20,302 | ) | |||||||||||||||
Total distributions | – | (210,006 | ) | – | (31,588 | ) | – | (20,302 | ) | |||||||||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||||||||||
Value of shares sold | ||||||||||||||||||||||||
Investment Class | 3,066,442 | 5,182,730 | 637,169 | 2,177,444 | 130,898 | 1,249,398 | ||||||||||||||||||
Distributions reinvested | ||||||||||||||||||||||||
Investment Class | – | 193,823 | – | 31,342 | – | 20,222 | ||||||||||||||||||
Value of shares redeemed | ||||||||||||||||||||||||
Investment Class | (705,601 | ) | (288,958 | ) | (602,086 | ) | (618,592 | ) | (46,795 | ) | (2,032 | ) | ||||||||||||
Shareholder redemption fees | ||||||||||||||||||||||||
Investment Class | 1,020 | 1,089 | 1,967 | 335 | 378 | – | ||||||||||||||||||
Net increase (decrease) in net assets from capital share transactions | 2,361,861 | 5,088,684 | 37,050 | 1,590,529 | 84,481 | 1,267,588 | ||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS | 2,459,539 | 6,246,680 | (17,991 | ) | 1,857,814 | 65,465 | 1,417,836 | |||||||||||||||||
NET ASSETS: | ||||||||||||||||||||||||
Beginning of period | 8,748,325 | 2,501,645 | 3,217,123 | 1,359,309 | 1,417,836 | – | ||||||||||||||||||
End of period | $ | 11,207,864 | $ | 8,748,325 | $ | 3,199,132 | $ | 3,217,123 | $ | 1,483,301 | $ | 1,417,836 | ||||||||||||
UNDISTRIBUTED NET INVESTMENT | ||||||||||||||||||||||||
INCOME (LOSS) AT END OF PERIOD | $ | (25,073 | ) | $ | – | $ | (12,667 | ) | $ | (4,270 | ) | $ | 6,776 | $ | – | |||||||||
66 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. |
Royce Dividend Value Fund | |||||||||
Six months ended 6/30/05 (unaudited) | Period ended 12/31/04* | ||||||||
INVESTMENT OPERATIONS: | |||||||||
Net investment income (loss) | $ | 13,024 | $ | (1,340 | ) | ||||
Net realized gain (loss) on investments | 4,061 | 1,941 | |||||||
Net change in unrealized appreciation (depreciation) on investments | (21,579 | ) | 164,737 | ||||||
Net increase (decrease) in net assets from investment operations | (4,494 | ) | 165,338 | ||||||
DISTRIBUTIONS: | |||||||||
Net investment income | |||||||||
Investment Class | (10,967 | ) | – | ||||||
Net realized gain on investments | |||||||||
Investment Class | – | – | |||||||
Total distributions | (10,967 | ) | – | ||||||
CAPITAL SHARE TRANSACTIONS: | |||||||||
Value of shares sold | |||||||||
Investment Class | 1,504,793 | 1,506,622 | |||||||
Distributions reinvested | |||||||||
Investment Class | 10,918 | – | |||||||
Value of shares redeemed | |||||||||
Investment Class | (91,928 | ) | (21,541 | ) | |||||
Shareholder redemption fees | |||||||||
Investment Class | 2 | – | |||||||
Net increase (decrease) in net assets from capital share transactions | 1,423,785 | 1,485,081 | |||||||
NET INCREASE (DECREASE) IN NET ASSETS | 1,408,324 | 1,650,419 | |||||||
NET ASSETS: | |||||||||
Beginning of period | 1,650,419 | – | |||||||
End of period | $ | 3,058,743 | $ | 1,650,419 | |||||
UNDISTRIBUTED NET INVESTMENT | |||||||||
INCOME (LOSS) AT END OF PERIOD | $ | 2,057 | $ | – | |||||
* From May 3, 2004 (commencement of operations) to December 31, 2004. |
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 67 |
STATEMENTS OF OPERATIONS | SIX MONTHS ENDED JUNE 30, 2005 (Unaudited) | |||||||||||||||||||||||||||||||||||||||
Pennsylvania | Royce | Royce | Royce | Royce | Royce | Royce | Royce | |||||||||||||||||||||||||||||||||
Mutual | Micro-Cap | Premier | Low-Priced | Total Return | TrustShares | Opportunity | Special Equity | |||||||||||||||||||||||||||||||||
Fund | Fund | Fund | Stock Fund | Fund | Fund | Fund | Fund | |||||||||||||||||||||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||||||||||||||||||||||||||
Income: | ||||||||||||||||||||||||||||||||||||||||
Dividends | ||||||||||||||||||||||||||||||||||||||||
Non-Affiliates | $ | 7,375,015 | $ | 1,394,697 | $ | 7,335,908 | $ | 9,600,575 | $ | 37,425,822 | $ | 178,456 | $ | 4,797,186 | $ | 4,932,456 | ||||||||||||||||||||||||
Affiliated Companies | 196,138 | – | 3,380,166 | 3,009,187 | 1,486,119 | – | – | 1,659,205 | ||||||||||||||||||||||||||||||||
Interest | 2,902,426 | 865,852 | 5,889,579 | 4,508,875 | 10,697,398 | 56,599 | 1,709,215 | 1,255,677 | ||||||||||||||||||||||||||||||||
Securities lending | 151,055 | 98,697 | 64,584 | 852,430 | 74,603 | – | 290,116 | 30,453 | ||||||||||||||||||||||||||||||||
Total income | 10,624,634 | 2,359,246 | 16,670,237 | 17,971,067 | 49,683,942 | 235,055 | 6,796,517 | 7,877,791 | ||||||||||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||||||||||
Investment advisory fees | 7,908,538 | 3,972,368 | 15,623,591 | 23,702,044 | 22,780,007 | 258,743 | 9,607,449 | 4,788,629 | ||||||||||||||||||||||||||||||||
Distribution fees – Investment Class | – | – | – | 5,290,061 | – | 62,263 | – | – | ||||||||||||||||||||||||||||||||
Distribution fees – Consultant Class | 3,796,369 | 794,194 | 155,107 | 2,586,467 | 9,690 | 96,666 | ||||||||||||||||||||||||||||||||||
Distribution fees – Financial Intermediary Class | 1,321 | 101,981 | 341,060 | 269,050 | 16,069 | |||||||||||||||||||||||||||||||||||
Shareholder servicing | 584,366 | 228,213 | 1,272,771 | 2,239,585 | 2,152,606 | 29,174 | 679,777 | 282,160 | ||||||||||||||||||||||||||||||||
Shareholder reports | 472,374 | 128,466 | 615,276 | 850,112 | 850,000 | 23,768 | 273,073 | 143,924 | ||||||||||||||||||||||||||||||||
Custody | 157,933 | 69,258 | 203,210 | 265,100 | 391,192 | 28,873 | 226,715 | 89,869 | ||||||||||||||||||||||||||||||||
Administrative and office facilities | 87,646 | 28,360 | 136,240 | 197,375 | 201,071 | 2,331 | 88,502 | 44,662 | ||||||||||||||||||||||||||||||||
Registration | 48,742 | 21,922 | 67,565 | 48,782 | 76,592 | 14,107 | 40,882 | 28,786 | ||||||||||||||||||||||||||||||||
Trustees’ fees | 30,971 | 9,365 | 47,881 | 65,644 | 70,819 | 784 | 23,549 | 14,757 | ||||||||||||||||||||||||||||||||
Audit | 17,500 | 10,000 | 20,000 | 21,500 | 24,000 | 5,000 | 17,500 | 15,000 | ||||||||||||||||||||||||||||||||
Legal | 13,384 | 4,313 | 20,806 | 30,008 | 30,704 | 355 | 13,458 | 6,787 | ||||||||||||||||||||||||||||||||
Other expenses | 39,735 | 18,481 | 56,411 | 87,285 | 83,499 | 5,267 | 44,289 | 25,160 | ||||||||||||||||||||||||||||||||
Total expenses | 13,157,558 | 5,286,261 | 18,320,839 | 32,797,496 | 29,588,017 | 440,355 | 11,284,244 | 5,552,469 | ||||||||||||||||||||||||||||||||
Fees waived by investment adviser and distributor | (50,168 | ) | – | – | (1,298,346 | ) | – | (37,358 | ) | – | – | |||||||||||||||||||||||||||||
Expenses reimbursed by investment advisor – | ||||||||||||||||||||||||||||||||||||||||
Consultant Class | – | – | – | – | (16,203 | ) | – | |||||||||||||||||||||||||||||||||
Institutional Class | (5,598 | ) | (238 | ) | – | (11,614 | ) | – | ||||||||||||||||||||||||||||||||
Financial Intermediary Class | (7,377 | ) | (40,051 | ) | (105,214 | ) | (136,729 | ) | (7,545 | ) | ||||||||||||||||||||||||||||||
W Class | – | – | ||||||||||||||||||||||||||||||||||||||
Net expenses | 13,107,390 | 5,273,286 | 18,280,550 | 31,499,150 | 29,482,803 | 386,794 | 11,135,901 | 5,544,924 | ||||||||||||||||||||||||||||||||
Net investment income (loss) | (2,482,756 | ) | (2,914,040 | ) | (1,610,313 | ) | (13,528,083 | ) | 20,201,139 | (151,739 | ) | (4,339,384 | ) | 2,332,867 | ||||||||||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | ||||||||||||||||||||||||||||||||||||||||
Net realized gain (loss) on investments | ||||||||||||||||||||||||||||||||||||||||
Non-Affiliates | 57,615,196 | 40,537,367 | 130,586,468 | 174,502,081 | 84,264,397 | 4,105,305 | 155,724,418 | 12,712,836 | ||||||||||||||||||||||||||||||||
Affiliated Companies | 7,283,751 | (180,238 | ) | 1,496,484 | 20,881,208 | 8,862,740 | – | (4,363,078 | ) | – | ||||||||||||||||||||||||||||||
Net change in unrealized appreciation | ||||||||||||||||||||||||||||||||||||||||
(depreciation) on investments | (6,473,810 | ) | (60,774,934 | ) | (134,266,124 | ) | (385,967,088 | ) | (36,110,823 | ) | (6,691,209 | ) | (221,316,169 | ) | (41,224,470 | ) | ||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 58,425,137 | (20,417,805 | ) | (2,183,172 | ) | (190,583,799 | ) | 57,016,314 | (2,585,904 | ) | (69,954,829 | ) | (28,511,634 | ) | ||||||||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS FROM INVESTMENT OPERATIONS | $ | 55,942,381 | $ | (23,331,845 | ) | $ | (3,793,485 | ) | $ | (204,111,882 | ) | $ | 77,217,453 | $ | (2,737,643 | ) | $ | (74,294,213 | ) | $ | (26,178,767 | ) | ||||||||||||||||||
68 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. |
STATEMENTS OF OPERATIONS | SIX MONTHS ENDED JUNE 30, 2005 (Unaudited) | |||||||||||||||||||||||||||||||||||||||
Royce Select Fund | Royce Value Fund | Royce Value Plus Fund | Royce Technology Value Fund | Royce 100 Fund | Royce Discovery Fund | Royce Financial Services Fund | Royce Dividend Value Fund | |||||||||||||||||||||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||||||||||||||||||||||||||
Income: | ||||||||||||||||||||||||||||||||||||||||
Dividends | ||||||||||||||||||||||||||||||||||||||||
Non-Affiliates | $ | 152,798 | $ | 132,079 | $ | 432,055 | $ | 13,500 | $ | 37,528 | $ | 11,433 | $ | 15,815 | $ | 20,267 | ||||||||||||||||||||||||
Interest | 21,984 | 76,368 | 264,573 | 23,439 | 12,740 | 3,528 | 1,624 | 7,890 | ||||||||||||||||||||||||||||||||
Total income | 174,782 | 208,447 | 696,628 | 36,939 | 50,268 | 14,961 | 17,439 | 28,157 | ||||||||||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||||||||||
Investment advisory fees | – | 250,696 | 1,113,644 | 224,274 | 50,565 | 15,676 | 7,156 | 10,156 | ||||||||||||||||||||||||||||||||
Distribution fees – Investment Class | – | 62,674 | 278,411 | 37,379 | 12,641 | 3,919 | 1,789 | 2,539 | ||||||||||||||||||||||||||||||||
Shareholder servicing | – | 30,019 | 75,407 | 20,827 | 21,355 | 20,552 | 5,104 | 5,154 | ||||||||||||||||||||||||||||||||
Shareholder reports | – | 10,535 | 41,034 | 4,014 | 3,497 | 1,731 | 974 | 1,724 | ||||||||||||||||||||||||||||||||
Custody | – | 21,390 | 34,852 | 13,459 | 9,821 | 7,041 | 3,742 | 4,433 | ||||||||||||||||||||||||||||||||
Administrative and office facilities | – | 1,739 | 8,839 | 1,709 | 391 | 136 | 61 | 71 | ||||||||||||||||||||||||||||||||
Registration | – | 15,248 | 21,362 | 9,270 | 6,758 | 5,887 | 3,982 | 3,574 | ||||||||||||||||||||||||||||||||
Trustees’ fees | – | 712 | 3,382 | 466 | 148 | 48 | 7 | 7 | ||||||||||||||||||||||||||||||||
Audit | – | 3,750 | 4,000 | 3,750 | 3,750 | 3,750 | 3,750 | 3,750 | ||||||||||||||||||||||||||||||||
Legal | – | 268 | 1,361 | 256 | 60 | 21 | 9 | 11 | ||||||||||||||||||||||||||||||||
Other expenses | – | 4,112 | 5,213 | 5,493 | 936 | 962 | 1,234 | 812 | ||||||||||||||||||||||||||||||||
Total expenses | – | 401,143 | 1,587,505 | 320,897 | 109,922 | 59,723 | 27,808 | 32,231 | ||||||||||||||||||||||||||||||||
Fees waived by investment advisor and distributor | (62,674 | ) | (278,411 | ) | (23,360 | ) | (34,581 | ) | (19,595 | ) | (8,945 | ) | (12,695 | ) | ||||||||||||||||||||||||||
Expenses reimbursed by investment advisor – | ||||||||||||||||||||||||||||||||||||||||
Investment Class | – | – | – | – | – | (16,770 | ) | (8,200 | ) | (4,403 | ) | |||||||||||||||||||||||||||||
Net expenses | – | 338,469 | 1,309,094 | 297,537 | 75,341 | 23,358 | 10,663 | 15,133 | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 174,782 | (130,022 | ) | (612,466 | ) | (260,598 | ) | (25,073 | ) | (8,397 | ) | 6,776 | 13,024 | |||||||||||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | ||||||||||||||||||||||||||||||||||||||||
Net realized gain (loss) on investments | ||||||||||||||||||||||||||||||||||||||||
Non-Affiliates | 2,342,218 | 1,058,846 | 4,501,180 | (703,309 | ) | 400,559 | 229,655 | 13,504 | 4,061 | |||||||||||||||||||||||||||||||
Net change in unrealized appreciation | ||||||||||||||||||||||||||||||||||||||||
(depreciation) on investments | (3,275,807 | ) | 582,460 | (17,758,799 | ) | (2,334,111 | ) | (277,808 | ) | (276,299 | ) | (39,296 | ) | (21,579 | ) | |||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (933,589 | ) | 1,641,306 | (13,257,619 | ) | (3,037,420 | ) | 122,751 | (46,644 | ) | (25,792 | ) | (17,518 | ) | ||||||||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS FROM INVESTMENT OPERATIONS | $ | (758,807 | ) | $ | 1,511,284 | $ | (13,870,085 | ) | $ | (3,298,018 | ) | $ | 97,678 | $ | (55,041 | ) | $ | (19,016 | ) | $ | (4,494 | ) | ||||||||||||||||||
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 69 |
FINANCIAL HIGHLIGHTS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net | Net | Net Realized | Distributions | Distributions | Ratio of Expenses to Average Net Assets | Ratio of Net Investment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Value, Beginning of Period | Investment Income (Loss) | and Unrealized Gain (Loss) on Investments | Total from Investment Operations | from Net Investment Income | from Net Realized Gain on Investments | Total Distributions | Shareholder Redemption Fees | Net Asset Value, End of Period | Total Return | Net Assets, End of Period (in thousands) | Net of Fee Waivers | Prior to Fee Waivers | Income (Loss) to Average Net Assets | Portfolio Turnover Rate | ||||||||||||||||||||||||||||||||||||||||||||||
PENNSYLVANIA MUTUAL FUND – INVESTMENT CLASS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 10.14 | $ | 0.01 | $ | 0.25 | $ | 0.26 | $ | – | $ | – | $ | – | $ | – | $ | 10.40 | 2.6 | %** | $ | 1,487,087 | 0.90 | %* | 0.90 | %* | 0.12 | %* | 12 | % | |||||||||||||||||||||||||||||||
2004 (c) | 8.88 | (0.02 | ) | 1.81 | 1.79 | – | (0.53 | ) | (0.53 | ) | – | 10.14 | 20.2 | % | 1,243,059 | 0.89 | % | 0.89 | % | (0.20 | )% | 32 | % | |||||||||||||||||||||||||||||||||||||
2003 (c) | 6.59 | (0.01 | ) | 2.66 | 2.65 | – | (0.36 | ) | (0.36 | ) | – | 8.88 | 40.3 | % | 839,604 | 0.93 | % | 0.93 | % | (0.17 | )% | 30 | % | |||||||||||||||||||||||||||||||||||||
2002 (c) | 7.39 | (0.01 | ) | (0.67 | ) | (0.68 | ) | – | (0.12 | ) | (0.12 | ) | – | 6.59 | (9.2 | )% | 462,152 | 0.94 | % | 0.94 | % | (0.13 | )% | 33 | % | |||||||||||||||||||||||||||||||||||
2001 | 6.88 | 0.02 | 1.22 | 1.24 | (0.03 | ) | (0.70 | ) | (0.73 | ) | – | 7.39 | 18.4 | % | 445,171 | 0.99 | % | 0.99 | % | 0.24 | % | 39 | % | |||||||||||||||||||||||||||||||||||||
2000 | 7.28 | 0.05 | 1.19 | 1.24 | (0.01 | ) | (1.63 | ) | (1.64 | ) | – | 6.88 | 18.4 | % | 369,346 | 1.03 | % | 1.03 | % | 0.63 | % | 45 | % | |||||||||||||||||||||||||||||||||||||
PENNSYLVANIA MUTUAL FUND – CONSULTANT CLASS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 9.77 | $ | (0.04 | ) | $ | 0.24 | $ | 0.20 | $ | – | $ | – | $ | – | $ | – | $ | 9.97 | 2.1 | %** | $ | 805,915 | 1.88 | %* | 1.89 | %* | (0.86 | )%* | 12 | % | ||||||||||||||||||||||||||||||
2004 (c) | 8.65 | (0.11 | ) | 1.76 | 1.65 | – | (0.53 | ) | (0.53 | ) | – | 9.77 | 19.1 | % | 753,388 | 1.89 | % | 1.89 | % | (1.20 | )% | 32 | % | |||||||||||||||||||||||||||||||||||||
2003 (c) | 6.50 | (0.09 | ) | 2.60 | 2.51 | – | (0.36 | ) | (0.36 | ) | – | 8.65 | 38.7 | % | 484,439 | 1.94 | % | 1.94 | % | (1.19 | )% | 30 | % | |||||||||||||||||||||||||||||||||||||
2002 (c) | 7.36 | (0.08 | ) | (0.66 | ) | (0.74 | ) | – | (0.12 | ) | (0.12 | ) | – | 6.50 | (10.1 | )% | 266,061 | 1.97 | % | 1.97 | % | (1.16 | )% | 33 | % | |||||||||||||||||||||||||||||||||||
2001 | 6.87 | (0.04 | ) | 1.22 | 1.18 | – | (0.69 | ) | (0.69 | ) | – | 7.36 | 17.5 | % | 137,787 | 1.73 | % | 1.97 | % | (0.50 | )% | 39 | % | |||||||||||||||||||||||||||||||||||||
2000 | 7.28 | (0.01 | ) | 1.19 | 1.18 | – | (1.59 | ) | (1.59 | ) | – | 6.87 | 17.5 | % | 128,247 | 1.73 | % | 2.00 | % | (0.07 | )% | 45 | % | |||||||||||||||||||||||||||||||||||||
ROYCE MICRO-CAP FUND – INVESTMENT CLASS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 15.71 | $ | (0.05 | ) | $ | (0.47 | ) | $ | (0.52 | ) | $ | – | $ | – | $ | – | $ | – | $ | 15.19 | (3.3 | )%** | $ | 436,851 | 1.47 | %* | 1.47 | %* | (0.69 | )%* | 16 | % | ||||||||||||||||||||||||||||
2004 (c) | 14.93 | (0.15 | ) | 2.47 | 2.32 | – | (1.54 | ) | (1.54 | ) | – | 15.71 | 15.8 | % | 473,248 | 1.47 | % | 1.56 | % | (0.94 | )% | 44 | % | |||||||||||||||||||||||||||||||||||||
2003 (c) | 10.16 | (0.13 | ) | 5.47 | 5.34 | – | (0.57 | ) | (0.57 | ) | – | 14.93 | 52.6 | % | 431,808 | 1.48 | % | 1.67 | % | (1.09 | )% | 44 | % | |||||||||||||||||||||||||||||||||||||
2002 (c) | 11.85 | (0.12 | ) | (1.48 | ) | (1.60 | ) | – | (0.10 | ) | (0.10 | ) | 0.01 | 10.16 | (13.4 | )% | 262,981 | 1.49 | % | 1.73 | % | (1.05 | )% | 31 | % | |||||||||||||||||||||||||||||||||||
2001 | 9.78 | (0.07 | ) | 2.32 | 2.25 | – | (0.19 | ) | (0.19 | ) | 0.01 | 11.85 | 23.1 | % | 203,233 | 1.49 | % | 1.75 | % | (0.69 | )% | 30 | % | |||||||||||||||||||||||||||||||||||||
2000 | 9.50 | (0.02 | ) | 1.58 | 1.56 | – | (1.28 | ) | (1.28 | ) | – | 9.78 | 16.7 | % | 140,148 | 1.49 | % | 1.82 | % | (0.22 | )% | 71 | % | |||||||||||||||||||||||||||||||||||||
ROYCE MICRO-CAP FUND – CONSULTANT CLASS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 14.92 | $ | (0.12 | ) | $ | (0.45 | ) | $ | (0.57 | ) | $ | – | $ | – | $ | – | $ | – | $ | 14.35 | (3.8 | )%** | $ | 155,672 | 2.47 | %* | 2.47 | %* | (1.70 | )%* | 16 | % | ||||||||||||||||||||||||||||
2004 (c) | 14.39 | (0.29 | ) | 2.36 | 2.07 | – | (1.54 | ) | (1.54 | ) | – | 14.92 | 14.6 | % | 169,813 | 2.47 | % | 2.56 | % | (1.94 | )% | 44 | % | |||||||||||||||||||||||||||||||||||||
2003 (c) | 9.91 | (0.25 | ) | 5.30 | 5.05 | – | (0.57 | ) | (0.57 | ) | – | 14.39 | 51.0 | % | 144,451 | 2.49 | % | 2.74 | % | (2.10 | )% | 44 | % | |||||||||||||||||||||||||||||||||||||
2002 (c) | 11.68 | (0.22 | ) | (1.45 | ) | (1.67 | ) | – | (0.10 | ) | (0.10 | ) | – | 9.91 | (14.3 | )% | 68,963 | 2.49 | % | 2.78 | % | (2.06 | )% | 31 | % | |||||||||||||||||||||||||||||||||||
2001 (c) | 9.71 | (0.18 | ) | 2.34 | 2.16 | – | (0.19 | ) | (0.19 | ) | – | 11.68 | 22.3 | % | 6,598 | 2.49 | % | 3.50 | % | (1.71 | )% | 30 | % | |||||||||||||||||||||||||||||||||||||
2000 | 9.45 | (0.11 | ) | 1.55 | 1.44 | – | (1.18 | ) | (1.18 | ) | – | 9.71 | 15.5 | % | 1,610 | 2.49 | % | 3.80 | % | (1.27 | )% | 71 | % | |||||||||||||||||||||||||||||||||||||
ROYCE MICRO-CAP FUND – INSTITUTIONAL CLASS(a) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 15.75 | $ | (0.04 | ) | $ | (0.48 | ) | $ | (0.52 | ) | $ | – | $ | – | $ | – | $ | – | $ | 15.23 | (3.3 | )%** | $ | 5,742 | 1.35 | %* | 1.55 | %* | (0.58 | )%* | 16 | % | ||||||||||||||||||||||||||||
2004 (c) | 14.94 | (0.13 | ) | 2.48 | 2.35 | – | (1.54 | ) | (1.54 | ) | – | 15.75 | 16.0 | % | 5,936 | 1.35 | % | 1.60 | % | (0.82 | )% | 44 | % | |||||||||||||||||||||||||||||||||||||
2003 (c) | 14.56 | (0.03 | ) | 0.98 | 0.95 | – | (0.57 | ) | (0.57 | ) | – | 14.94 | 6.6 | %** | 10,125 | 1.29 | %* | 1.77 | %* | (0.93 | )%* | 44 | % | |||||||||||||||||||||||||||||||||||||
ROYCE MICRO-CAP FUND – FINANCIAL INTERMEDIARY CLASS(b) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 15.68 | $ | (0.05 | ) | $ | (0.48 | ) | $ | (0.53 | ) | $ | – | $ | – | $ | – | $ | – | $ | 15.15 | (3.4 | )%** | $ | 1,022 | 1.49 | %* | 2.89 | %* | (0.72) | %* | 16 | % | ||||||||||||||||||||||||||||
2004 (c) | 14.91 | (0.16 | ) | 2.47 | 2.31 | – | (1.54 | ) | (1.54 | ) | – | 15.68 | 15.7 | % | 1,152 | 1.49 | % | 3.07 | % | (1.06 | )% | 44 | % | |||||||||||||||||||||||||||||||||||||
2003 (c) | 10.16 | (0.15 | ) | 5.47 | 5.32 | – | (0.57 | ) | (0.57 | ) | – | 14.91 | 52.4 | % | 202 | 1.49 | % | 17.16 | % | (1.11 | )% | 44 | % | |||||||||||||||||||||||||||||||||||||
2002 (c) | 10.27 | (0.04 | ) | 0.03 | (0.01 | ) | – | (0.10 | ) | (0.10 | ) | – | 10.16 | (0.1) | %** | 7 | 1.49 | %* | 17.46 | %* | (1.20 | )%* | 31 | % | ||||||||||||||||||||||||||||||||||||
70 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 |
FINANCIAL HIGHLIGHTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratio of Expenses | Ratio of Net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net | Net | Net Realized | Distributions | Distributions | to Average Net Assets | Investment | |||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Value, | Investment | and Unrealized | Total from | from Net | from Net | Shareholder | Net Asset | Net Assets, | Net of | Prior | Income (Loss) | Portfolio | |||||||||||||||||||||||||||||||||||||||||||||
Beginning | Income | Gain (Loss) on | Investment | Investment | Realized Gain | Total | Redemption | Value, End | Total | End of Period | Fee | to Fee | to Average | Turnover | |||||||||||||||||||||||||||||||||||||||||||
of Period | (Loss) | Investments | Operations | Income | on Investments | Distributions | Fees | of Period | Return | (in thousands) | Waivers | Waivers | Net Assets | Rate | |||||||||||||||||||||||||||||||||||||||||||
ROYCE PREMIER FUND – INVESTMENT CLASS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
†2005(e) | $ | 15.12 | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.03 | ) | $ | – | $ | – | $ | – | $ | – | $ | 15.09 | (0.2 | )%** | $ | 2,789,778 | 1.14 | %* | 1.14 | %* | (0.10 | )%* | 12 | % | ||||||||||||||||||||||||
2004(e) | 12.90 | (0.06 | ) | 2.99 | 2.93 | – | (0.71 | ) | (0.71 | ) | – | 15.12 | 22.8 | % | 2,975,348 | 1.14 | % | 1.14 | % | (0.43 | )% | 24 | % | ||||||||||||||||||||||||||||||||||
2003(e) | 9.39 | (0.03 | ) | 3.67 | 3.64 | – | (0.13 | ) | (0.13 | ) | – | 12.90 | 38.7 | % | 1,713,001 | 1.16 | % | 1.16 | % | (0.29 | )% | 26 | % | ||||||||||||||||||||||||||||||||||
2002(e) | 10.54 | (0.04 | ) | (0.77 | ) | (0.81 | ) | – | (0.34 | ) | (0.34 | ) | – | 9.39 | (7.8 | )% | 848,341 | 1.17 | % | 1.17 | % | (0.40 | )% | 33 | % | ||||||||||||||||||||||||||||||||
2001 | 9.83 | – | 0.94 | 0.94 | – | (0.23 | ) | (0.23 | ) | – | 10.54 | 9.6 | % | 797,248 | 1.19 | % | 1.19 | % | (0.04 | )% | 41 | % | |||||||||||||||||||||||||||||||||||
2000 | 9.56 | 0.03 | 1.54 | 1.57 | (0.03 | ) | (1.27 | ) | (1.30 | ) | – | 9.83 | 17.1 | % | 675,653 | 1.20 | % | 1.20 | % | 0.34 | % | 40 | % | ||||||||||||||||||||||||||||||||||
ROYCE PREMIER FUND – CONSULTANT CLASS(a) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
†2005(e) | $ | 14.80 | $ | (0.08 | ) | $ | (0.02 | ) | $ | (0.10 | ) | $ | – | $ | – | $ | – | $ | – | $ | 14.70 | (0.7 | )%** | $ | 35,645 | 2.20 | %* | 2.20 | %* | (1.14 | )%* | 12 | % | ||||||||||||||||||||||||
2004(e) | 12.80 | (0.22 | ) | 2.93 | 2.71 | – | (0.71 | ) | (0.71 | ) | – | 14.80 | 21.3 | % | 26,805 | 2.35 | % | 2.35 | % | (1.59 | )% | 24 | % | ||||||||||||||||||||||||||||||||||
2003(e) | 10.52 | (0.08 | ) | 2.49 | 2.41 | – | (0.13 | ) | (0.13 | ) | – | 12.80 | 22.9 | %** | 5,401 | 2.49 | %* | 4.25 | %* | (1.22 | )%* | 26 | % | ||||||||||||||||||||||||||||||||||
ROYCE PREMIER FUND – INSTITUTIONAL CLASS(b) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
†2005(e) | $ | 15.15 | $ | 0.00 | $ | (0.03 | ) | $ | (0.03 | ) | $ | – | $ | – | $ | – | $ | – | $ | 15.12 | (0.2 | )%** | $ | 175,676 | 1.03 | %* | 1.03 | %* | 0.04 | %* | 12 | % | |||||||||||||||||||||||||
2004(e) | 12.91 | (0.04 | ) | 2.99 | 2.95 | – | (0.71 | ) | (0.71 | ) | – | 15.15 | 23.0 | % | 104,497 | 1.04 | % | 1.06 | % | (0.30 | )% | 24 | % | ||||||||||||||||||||||||||||||||||
2003(e) | 9.39 | (0.00 | ) | 3.65 | 3.65 | – | (0.13 | ) | (0.13 | ) | – | 12.91 | 38.8 | % | 24,106 | 1.04 | % | 1.14 | % | (0.03 | )% | 26 | % | ||||||||||||||||||||||||||||||||||
2002(e) | 9.64 | (0.01 | ) | 0.10 | 0.09 | – | (0.34 | ) | (0.34 | ) | – | 9.39 | 0.9 | %** | 4,490 | 1.04 | %* | 1.58 | %* | (0.28 | )%* | 33 | % | ||||||||||||||||||||||||||||||||||
ROYCE PREMIER FUND – FINANCIAL INTERMEDIARY CLASS(c) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
†2005(e) | $ | 15.07 | $ | (0.02 | ) | $ | (0.02 | ) | $ | (0.04 | ) | $ | – | $ | – | $ | – | $ | – | $ | 15.03 | (0.3 | )%** | $ | 95,672 | 1.29 | %* | 1.39 | %* | (0.23 | )%* | 12 | % | ||||||||||||||||||||||||
2004(e) | 12.89 | (0.08 | ) | 2.97 | 2.89 | – | (0.71 | ) | (0.71 | ) | – | 15.07 | 22.5 | % | 69,759 | 1.29 | % | 1.39 | % | (0.57 | )% | 24 | % | ||||||||||||||||||||||||||||||||||
2003(e) | 9.39 | (0.04 | ) | 3.67 | 3.63 | – | (0.13 | ) | (0.13 | ) | – | 12.89 | 38.6 | % | 32,307 | 1.29 | % | 1.42 | % | (0.33 | )% | 26 | % | ||||||||||||||||||||||||||||||||||
2002(e) | 9.48 | (0.02 | ) | 0.27 | 0.25 | – | (0.34 | ) | (0.34 | ) | – | 9.39 | 2.6 | %** | 7,826 | 1.29 | %* | 4.69 | %* | (0.62 | )%* | 33 | % | ||||||||||||||||||||||||||||||||||
ROYCE PREMIER FUND – W CLASS (d) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
†2005(e) | $ | 14.37 | $ | 0.01 | $ | 0.71 | $ | 0.72 | $ | – | $ | – | $ | – | $ | – | $ | 15.09 | 5.0 | %** | $ | 245,278 | 0.99 | %* | 0.99 | %* | 0.38 | %* | 12 | % | |||||||||||||||||||||||||||
ROYCE LOW-PRICED STOCK FUND | �� | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
†2005(e) | $ | 15.33 | $ | (0.04 | ) | $ | (0.58 | ) | $ | (0.62 | ) | $ | – | $ | – | $ | – | $ | – | $ | 14.71 | (4.0 | )%** | $ | 3,964,633 | 1.49 | %* | 1.55 | %* | (0.64 | )%* | 11 | % | ||||||||||||||||||||||||
2004(e) | 13.98 | (0.14 | ) | 2.04 | 1.90 | – | (0.55 | ) | (0.55 | ) | – | 15.33 | 13.6 | % | 4,769,417 | 1.49 | % | 1.71 | % | (1.00 | )% | 26 | % | ||||||||||||||||||||||||||||||||||
2003(e) | 9.75 | (0.07 | ) | 4.36 | 4.29 | – | (0.06 | ) | (0.06 | ) | – | 13.98 | 44.0 | % | 3,046,100 | 1.49 | % | 1.94 | % | (0.70 | )% | 42 | % | ||||||||||||||||||||||||||||||||||
2002(e) | 11.67 | (0.08 | ) | (1.83 | ) | (1.91 | ) | – | (0.02 | ) | (0.02 | ) | 0.01 | 9.75 | (16.3 | )% | 1,787,172 | 1.49 | % | 1.97 | % | (0.74 | )% | 29 | % | ||||||||||||||||||||||||||||||||
2001(e) | 9.35 | (0.06 | ) | 2.39 | 2.33 | – | (0.02 | ) | (0.02 | ) | 0.01 | 11.67 | 25.1 | % | 1,024,693 | 1.49 | % | 2.02 | % | (0.54 | )% | 31 | % | ||||||||||||||||||||||||||||||||||
2000 | 8.16 | – | 1.93 | 1.93 | – | (0.74 | ) | (0.74 | ) | – | 9.35 | 24.0 | % | 130,855 | 1.49 | % | 2.08 | % | 0.04 | % | 56 | % | |||||||||||||||||||||||||||||||||||
(a) | The Class commenced operations on June 2, 2003. | |
(b) | The Class commenced operations on September 17, 2002. | |
(c) | The Class commenced operations on September 3, 2002. | |
(d) | The Class commenced operations on May 19, 2005. | |
(e) | Per share amounts have been determined on the basis of the weighted average number of shares outstanding during the period. | |
* | Annualized. | |
** | Not annualized. | |
† | Six months ended June 30, 2005 (unaudited). |
THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 71 |
FINANCIAL HIGHLIGHTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratio of Expenses | Ratio of Net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net | Net | Net Realized | Distributions | Distributions | to Average Net Assets | Investment | |||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Value, | Investment | and Unrealized | Total from | from Net | from Net | Shareholder | Net Asset | Net Assets, | Net of | Prior | Income (Loss) | Portfolio | |||||||||||||||||||||||||||||||||||||||||||||
Beginning | Income | Gain (Loss) on | Investment | Investment | Realized Gain | Total | Redemption | Value, End | Total | End of Period | Fee | to Fee | to Average | Turnover | |||||||||||||||||||||||||||||||||||||||||||
of Period | (Loss) | Investments | Operations | Income | on Investments | Distributions | Fees | of Period | Return | (in thousands) | Waivers | Waivers | Net Assets | Rate | |||||||||||||||||||||||||||||||||||||||||||
ROYCE TOTAL RETURN FUND – INVESTMENT CLASS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
†2005(e) | $ | 12.26 | $ | 0.06 | $ | 0.12 | $ | 0.18 | $ | (0.05 | ) | $ | – | $ | (0.05 | ) | $ | – | $ | 12.39 | 1.5 | %** | $ | 3,967,100 | 1.14 | %* | 1.14 | %* | 0.96 | %* | 11 | % | |||||||||||||||||||||||||
2004(e) | 10.69 | 0.11 | 1.75 | 1.86 | (0.12 | ) | (0.17 | ) | (0.29 | ) | – | 12.26 | 17.5 | % | 3,738,851 | 1.15 | % | 1.15 | % | 1.08 | % | 22 | % | ||||||||||||||||||||||||||||||||||
2003(e) | 8.37 | 0.11 | 2.39 | 2.50 | (0.10 | ) | (0.08 | ) | (0.18 | ) | – | 10.69 | 30.0 | % | 2,289,013 | 1.18 | % | 1.18 | % | 1.27 | % | 20 | % | ||||||||||||||||||||||||||||||||||
2002(e) | 8.59 | 0.08 | (0.21 | ) | (0.13 | ) | (0.08 | ) | (0.01 | ) | (0.09 | ) | – | 8.37 | (1.6 | )% | 986,455 | 1.20 | % | 1.20 | % | 1.01 | % | 22 | % | ||||||||||||||||||||||||||||||||
2001 | 7.77 | 0.09 | 1.05 | 1.14 | (0.11 | ) | (0.21 | ) | (0.32 | ) | – | 8.59 | 14.8 | % | 509,250 | 1.24 | % | 1.24 | % | 1.14 | % | 24 | % | ||||||||||||||||||||||||||||||||||
2000 | 7.15 | 0.16 | 1.18 | 1.34 | (0.15 | ) | (0.57 | ) | (0.72 | ) | – | 7.77 | 19.4 | % | 281,562 | 1.25 | % | 1.28 | % | 2.08 | % | 24 | % | ||||||||||||||||||||||||||||||||||
ROYCE TOTAL RETURN FUND – CONSULTANT CLASS(a) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
†2005(e) | $ | 12.24 | $ | (0.00 | ) | $ | 0.13 | $ | 0.13 | $ | – | $ | – | $ | – | $ | – | $ | 12.37 | 1.1 | %** | $ | 556,460 | 2.11 | %* | 2.11 | %* | (0.01 | )%* | 11 | % | ||||||||||||||||||||||||||
2004(e) | 10.68 | 0.01 | 1.73 | 1.74 | (0.01 | ) | (0.17 | ) | (0.18 | ) | – | 12.24 | 16.4 | % | 501,635 | 2.13 | % | 2.13 | % | 0.10 | % | 22 | % | ||||||||||||||||||||||||||||||||||
2003(e) | 8.37 | 0.02 | 2.37 | 2.39 | – | (0.08 | ) | (0.08 | ) | – | 10.68 | 28.6 | % | 309,136 | 2.19 | % | 2.19 | % | 0.26 | % | 20 | % | |||||||||||||||||||||||||||||||||||
2002(e) | 8.64 | – | (0.24 | ) | (0.24 | ) | (0.02 | ) | (0.01 | ) | (0.03 | ) | – | 8.37 | (2.7 | )% | 120,737 | 2.20 | % | 2.25 | % | 0.15 | % | 22 | % | ||||||||||||||||||||||||||||||||
2001 | 8.05 | – | 0.80 | 0.80 | – | (0.21 | ) | (0.21 | ) | – | 8.64 | 10.0 | %** | 3,429 | 2.20 | %* | 3.38 | %* | (0.60 | )%* | 24 | % | |||||||||||||||||||||||||||||||||||
ROYCE TOTAL RETURN FUND – INSTITUTIONAL CLASS(b) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
†2005(e) | $ | 12.30 | $ | 0.07 | $ | 0.12 | $ | 0.19 | $ | (0.06 | ) | $ | – | $ | (0.06 | ) | $ | – | $ | 12.43 | 1.6 | %** | $ | 146,498 | 1.01 | %* | 1.01 | %* | 1.10 | %* | 11 | % | |||||||||||||||||||||||||
2004(e) | 10.71 | 0.13 | 1.76 | 1.89 | (0.13 | ) | (0.17 | ) | (0.30 | ) | – | 12.30 | 17.8 | % | 124,286 | 1.04 | % | 1.04 | % | 1.20 | % | 22 | % | ||||||||||||||||||||||||||||||||||
2003(e) | 7.88 | 0.10 | 2.90 | 3.00 | (0.09 | ) | (0.08 | ) | (0.17 | ) | – | 10.71 | 38.2 | %** | 67,912 | 1.04 | %* | 1.07 | %* | 1.54 | %* | 20 | % | ||||||||||||||||||||||||||||||||||
ROYCE TOTAL RETURN FUND – FINANCIAL INTERMEDIARY CLASS(c) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
†2005(e) | $ | 12.12 | $ | 0.05 | $ | 0.13 | $ | 0.18 | $ | (0.04 | ) | $ | – | $ | (0.04 | ) | $ | – | $ | 12.26 | 1.5 | %** | $ | 297,207 | 1.29 | %* | 1.37 | %* | 0.81 | %* | 11 | % | |||||||||||||||||||||||||
2004(e) | 10.57 | 0.10 | 1.72 | 1.82 | (0.10 | ) | (0.17 | ) | (0.27 | ) | – | 12.12 | 17.4 | % | 261,212 | 1.29 | % | 1.38 | % | 0.95 | % | 22 | % | ||||||||||||||||||||||||||||||||||
2003(e) | 8.28 | 0.11 | 2.34 | 2.45 | (0.08 | ) | (0.08 | ) | (0.16 | ) | – | 10.57 | 29.7 | % | 131,813 | 1.28 | % | 1.45 | % | 1.28 | % | 20 | % | ||||||||||||||||||||||||||||||||||
2002(e) | 8.59 | 0.07 | (0.29 | ) | (0.22 | ) | (0.08 | ) | (0.01 | ) | (0.09 | ) | – | 8.28 | (2.7 | )%** | 12,302 | 1.28 | %* | 1.54 | %* | 0.97 | %* | 22 | % | ||||||||||||||||||||||||||||||||
ROYCE TOTAL RETURN FUND – W CLASS(d) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
†2005(e) | $ | 11.97 | $ | 0.02 | $ | 0.44 | $ | 0.46 | $ | (0.02 | ) | $ | – | $ | (0.02 | ) | $ | – | $ | 12.41 | 3.9 | %** | $ | 102,214 | 1.01 | %* | 1.01 | %* | 1.30 | %* | 11 | % | |||||||||||||||||||||||||
ROYCE TRUSTSHARES FUND – INVESTMENT CLASS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
†2005(e) | $ | 13.00 | $ | (0.03 | ) | $ | (0.62 | ) | $ | (0.65 | ) | $ | – | $ | – | $ | – | $ | – | $ | 12.35 | (5.0 | )%** | $ | 50,905 | 1.46 | %* | 1.61 | %* | (0.55 | )%* | 57 | % | ||||||||||||||||||||||||
2004(e) | 12.19 | (0.12 | ) | 2.57 | 2.45 | – | (1.64 | ) | (1.64 | ) | – | 13.00 | 20.4 | % | 52,891 | 1.49 | % | 1.55 | % | (0.95 | )% | 86 | % | ||||||||||||||||||||||||||||||||||
2003(e) | 9.03 | (0.08 | ) | 3.51 | 3.43 | – | (0.27 | ) | (0.27 | ) | – | 12.19 | 38.1 | % | 34,143 | 1.49 | % | 1.63 | % | (0.81 | )% | 25 | % | ||||||||||||||||||||||||||||||||||
2002(e) | 11.47 | (0.09 | ) | (2.07 | ) | (2.16 | ) | – | (0.28 | ) | (0.28 | ) | – | 9.03 | (18.9 | )% | 23,312 | 1.49 | % | 1.63 | % | (0.85 | )% | 66 | % | ||||||||||||||||||||||||||||||||
2001 | 9.99 | (0.08 | ) | 2.12 | 2.04 | – | (0.56 | ) | (0.56 | ) | – | 11.47 | 20.5 | % | 26,145 | 1.49 | % | 1.64 | % | (0.81 | )% | 53 | % | ||||||||||||||||||||||||||||||||||
2000 | 10.10 | (0.05 | ) | 1.19 | 1.14 | – | (1.25 | ) | (1.25 | ) | – | 9.99 | 11.7 | % | 19,452 | 1.49 | % | 1.78 | % | (0.59 | )% | 90 | % | ||||||||||||||||||||||||||||||||||
(a) | The Class commenced operations on October 16, 2001. | |
(b) | The Class commenced operations on March 4, 2003. | |
(c) | The Class commenced operations on January 3, 2002. | |
(d) | The Class commenced operations on May 19, 2005. | |
(e) | Per share amounts have been determined on the basis of the weighted average number of shares outstanding during the period. | |
* | Annualized. | |
** | Not annualized. | |
† | Six months ended June 30, 2005 (unaudited). |
72 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 |
This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net | Net | Net Realized | Distributions | Distributions | Ratio of Expenses to Average Net Assets | Ratio of Net Investment | |||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Value, Beginning of Period | Investment Income (Loss) | and Unrealized Gain (Loss) on Investments | Total from Investment Operations | from Net Investment Income | from Net Realized Gain on Investments | Total Distributions | Shareholder Redemption Fees | Net Asset Value, End of Period | Total Return | Net Assets, End of Period (in thousands) | Net of Fee Waivers | Prior to Fee Waivers | Income (Loss) to Average Net Assets | Portfolio Turnover Rate | |||||||||||||||||||||||||||||||||||||||||||
ROYCE TRUSTSHARES FUND – CONSULTANT CLASS (a) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
† 2005 (d) | $ | 12.03 | $ | (0.09 | ) | $ | (0.57 | ) | $ | (0.66 | ) | $ | – | $ | – | $ | – | $ | – | $ | 11.37 | (5.5 | )% ** | $ | 2,001 | 2.49 | % * | 4.16 | % * | (1.58 | )% * | 57 | % | ||||||||||||||||||||||||
2004 (d) | 11.50 | (0.23 | ) | 2.40 | 2.17 | – | (1.64 | ) | (1.64 | ) | – | 12.03 | 19.1 | % | 1,885 | 2.49 | % | 5.21 | % | (1.94 | )% | 86 | % | ||||||||||||||||||||||||||||||||||
2003 (d) | 8.62 | (0.18 | ) | 3.33 | 3.15 | – | (0.27 | ) | (0.27 | ) | – | 11.50 | 36.7 | % | 762 | 2.49 | % | 8.20 | % | (1.81 | )% | 25 | % | ||||||||||||||||||||||||||||||||||
2002 (d) | 11.08 | (0.13 | ) | (2.05 | ) | (2.18 | ) | – | (0.28 | ) | (0.28 | ) | – | 8.62 | (19.8 | )% | 342 | 2.49 | % | 10.36 | % | (1.97 | )% | 66 | % | ||||||||||||||||||||||||||||||||
2001 | 10.83 | – | 0.25 | 0.25 | – | – | – | – | 11.08 | 2.3 | % ** | 163 | 2.49 | % * | 50.08 | % * | (1.92 | )% * | 53 | % | |||||||||||||||||||||||||||||||||||||
ROYCE OPPORTUNITY FUND – INVESTMENT CLASS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
† 2005 (d) | $ | 13.31 | $ | (0.03 | ) | $ | (0.41 | ) | $ | (0.44 | ) | $ | – | $ | – | $ | – | $ | – | $ | 12.87 | (3.3 | )% ** | $ | 1,501,514 | 1.15 | % * | 1.15 | % * | (0.45 | )% * | 22 | % | ||||||||||||||||||||||||
2004 (d) | 12.14 | (0.07 | ) | 2.17 | 2.10 | – | (0.93 | ) | (0.93 | ) | – | 13.31 | 17.5 | % | 1,677,215 | 1.14 | % | 1.14 | % | (0.55 | )% | 47 | % | ||||||||||||||||||||||||||||||||||
2003 (d) | 7.37 | (0.06 | ) | 5.41 | 5.35 | – | (0.58 | ) | (0.58 | ) | – | 12.14 | 72.9 | % | 1,311,815 | 1.15 | % | 1.15 | % | (0.65 | )% | 55 | % | ||||||||||||||||||||||||||||||||||
2002 (d) | 9.01 | (0.04 | ) | (1.50 | ) | (1.54 | ) | – | (0.11 | ) | (0.11 | ) | 0.01 | 7.37 | (17.0 | )% | 635,296 | 1.17 | % | 1.17 | % | (0.49 | )% | 46 | % | ||||||||||||||||||||||||||||||||
2001 | 7.78 | (0.01 | ) | 1.35 | 1.34 | – | (0.11 | ) | (0.11 | ) | – | 9.01 | 17.3 | % | 577,103 | 1.19 | % | 1.19 | % | (0.19 | )% | 44 | % | ||||||||||||||||||||||||||||||||||
2000 | 7.19 | – | 1.40 | 1.40 | – | (0.81 | ) | (0.81 | ) | – | 7.78 | 19.9 | % | 298,561 | 1.24 | % | 1.24 | % | 0.00 | % | 56 | % | |||||||||||||||||||||||||||||||||||
ROYCE OPPORTUNITY FUND – INSTITUTIONAL CLASS (b) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
† 2005 (d) | $ | 13.34 | $ | (0.02 | ) | $ | (0.41 | ) | $ | (0.43 | ) | $ | – | $ | – | $ | – | $ | – | $ | 12.91 | (3.2 | )% ** | $ | 171,393 | 1.04 | % * | 1.05 | % * | (0.33 | )% * | 22 | % | ||||||||||||||||||||||||
2004 (d) | 12.16 | (0.06 | ) | 2.17 | 2.11 | – | (0.93 | ) | (0.93 | ) | – | 13.34 | 17.6 | % | 193,136 | 1.04 | % | 1.06 | % | (0.44 | )% | 47 | % | ||||||||||||||||||||||||||||||||||
2003 (d) | 7.38 | (0.05 | ) | 5.41 | 5.36 | – | (0.58 | ) | (0.58 | ) | – | 12.16 | 72.9 | % | 85,813 | 1.04 | % | 1.08 | % | (0.54 | )% | 55 | % | ||||||||||||||||||||||||||||||||||
2002 (d) | 9.01 | (0.03 | ) | (1.49 | ) | (1.52 | ) | – | (0.11 | ) | (0.11 | ) | – | 7.38 | (16.9 | )% | 31,897 | 1.04 | % | 1.14 | % | (0.32 | )% | 46 | % | ||||||||||||||||||||||||||||||||
2001 | 8.71 | – | 0.30 | 0.30 | – | – | – | – | 9.01 | 3.4 | % ** | 5,173 | 1.04 | % * | 1.92 | % * | (0.11 | )% * | 44 | % | |||||||||||||||||||||||||||||||||||||
ROYCE OPPORTUNITY FUND – FINANCIAL INTERMEDIARY CLASS (c) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
† 2005 (d) | $ | 13.17 | $ | (0.04 | ) | $ | (0.40 | ) | $ | (0.44 | ) | $ | – | $ | – | $ | – | $ | – | $ | 12.73 | (3.3) | % ** | $ | 192,182 | 1.29 | % * | 1.41 | % * | (0.58 | )% * | 22 | % | ||||||||||||||||||||||||
2004 (d) | 12.05 | (0.09 | ) | 2.14 | 2.05 | – | (0.93 | ) | (0.93 | ) | – | 13.17 | 17.2 | % | 230,068 | 1.29 | % | 1.43 | % | (0.70 | )% | 47 | % | ||||||||||||||||||||||||||||||||||
2003 (d) | 7.33 | (0.08 | ) | 5.38 | 5.30 | – | (0.58 | ) | (0.58 | ) | – | 12.05 | 72.6 | % | 90,243 | 1.29 | % | 1.45 | % | (0.79 | )% | 55 | % | ||||||||||||||||||||||||||||||||||
2002 (d) | 8.98 | (0.06 | ) | (1.48 | ) | (1.54 | ) | – | (0.11 | ) | (0.11 | ) | – | 7.33 | (17.2 | )% | 19,979 | 1.29 | % | 1.50 | % | (0.60 | )% | 46 | % | ||||||||||||||||||||||||||||||||
2001 | 7.78 | (0.04 | ) | 1.35 | 1.31 | – | (0.11 | ) | (0.11 | ) | – | 8.98 | 16.9 | % | 13,399 | 1.42 | % | 1.57 | % | (0.52 | )% | 44 | % | ||||||||||||||||||||||||||||||||||
2000 | 8.12 | (0.01 | ) | 0.47 | 0.46 | – | (0.80 | ) | (0.80 | ) | – | 7.78 | 6.0 | % ** | 1,100 | 1.49 | % * | 2.24 | % * | (0.30 | )% * | 56 | % | ||||||||||||||||||||||||||||||||||
THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 73 |
This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net | Net | Net Realized | Distributions | Distributions | Ratio of Expenses to Average Net Assets | Ratio of Net Investment | |||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Value, Beginning of Period | Investment Income (Loss) | and Unrealized Gain (Loss) on Investments | Total from Investment Operations | from Net Investment Income | from Net Realized Gain on Investments | Total Distributions | Shareholder Redemption Fees | Net Asset Value, End of Period | Total Return | Net Assets, End of Period (in thousands) | Net of Fee Waivers | Prior to Fee Waivers | Income (Loss) to Average Net Assets | Portfolio Turnover Rate | |||||||||||||||||||||||||||||||||||||||||||
ROYCE SPECIAL EQUITY FUND – INVESTMENT CLASS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
† 2005 (e) | $ | 19.61 | $ | 0.05 | $ | (0.50 | ) | $ | (0.45 | ) | $ | – | $ | – | $ | – | $ | – | $ | 19.16 | (2.3 | )% ** | $ | 713,444 | 1.15 | % * | 1.15 | % * | 0.50 | % * | 14 | % | |||||||||||||||||||||||||
2004 (e) | 17.97 | 0.20 | 2.28 | 2.48 | (0.18 | ) | (0.67 | ) | (0.85 | ) | 0.01 | 19.61 | 13.9 | % | 856,537 | 1.15 | % | 1.15 | % | 1.02 | % | 17 | % | ||||||||||||||||||||||||||||||||||
2003 (e) | 14.24 | 0.05 | 3.86 | 3.91 | (0.05 | ) | (0.15 | ) | (0.20 | ) | 0.02 | 17.97 | 27.6 | % | 721,334 | 1.19 | % | 1.19 | % | 0.35 | % | 22 | % | ||||||||||||||||||||||||||||||||||
2002 (e) | 12.37 | 0.02 | 1.73 | 1.75 | (0.03 | ) | – | (0.03 | ) | 0.15 | 14.24 | 15.3 | % | 397,755 | 1.20 | % | 1.20 | % | 0.27 | % | 41 | % | |||||||||||||||||||||||||||||||||||
2001 | 9.55 | 0.11 | 2.71 | 2.82 | (0.11 | ) | – | (0.11 | ) | 0.11 | 12.37 | 30.8 | % | 6,072 | 1.49 | % | 1.76 | % | 0.87 | % | 124 | % | |||||||||||||||||||||||||||||||||||
2000 | 8.31 | 0.12 | 1.23 | 1.35 | (0.11 | ) | – | (0.11 | ) | – | 9.55 | 16.3 | % | 3,211 | 1.49 | % | 2.26 | % | 1.38 | % | 61 | % | |||||||||||||||||||||||||||||||||||
ROYCE SPECIAL EQUITY FUND – CONSULTANT CLASS (a) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
† 2005 (e) | $ | 19.47 | $ | (0.06 | ) | $ | (0.50 | ) | $ | (0.56 | ) | $ | – | $ | – | $ | – | $ | – | $ | 18.91 | (2.9 | )% ** | $ | 19,156 | 2.25 | % * | 2.25 | % * | (0.61 | )% * | 14 | % | ||||||||||||||||||||||||
2004 (e) | 17.89 | (0.02 | ) | 2.28 | 2.26 | (0.01 | ) | (0.67 | ) | (0.68 | ) | – | 19.47 | 12.7 | % | 20,277 | 2.28 | % | 2.28 | % | (0.09 | )% | 17 | % | |||||||||||||||||||||||||||||||||
2003 (e) | 15.06 | (0.08 | ) | 3.07 | 2.99 | (0.01 | ) | (0.15 | ) | (0.16 | ) | – | 17.89 | 19.9 | % ** | 9,944 | 2.20 | % * | 3.21 | % * | (0.81 | )% * | 22 | % | |||||||||||||||||||||||||||||||||
ROYCE SPECIAL EQUITY FUND – INSTITUTIONAL CLASS (b) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
† 2005 (e) | $ | 19.58 | $ | 0.06 | $ | (0.50 | ) | $ | (0.44 | ) | $ | – | $ | – | $ | – | $ | – | $ | 19.14 | (2.3 | )% ** | $ | 163,222 | 1.06 | % * | 1.06 | % * | 0.59 | % * | 14 | % | |||||||||||||||||||||||||
2004 (e) | 17.95 | 0.10 | 2.40 | 2.50 | (0.20 | ) | (0.67 | ) | (0.87 | ) | – | 19.58 | 14.0 | % | 162,819 | 1.07 | % | 1.07 | % | 1.07 | % | 17 | % | ||||||||||||||||||||||||||||||||||
2003 (e) | 15.78 | 0.01 | 2.37 | 2.38 | (0.06 | ) | (0.15 | ) | (0.21 | ) | – | 17.95 | 15.1 | % ** | 13,439 | 1.10 | % * | 1.36 | % * | 0.24 | % * | 22 | % | ||||||||||||||||||||||||||||||||||
ROYCE SPECIAL EQUITY FUND – FINANCIAL INTERMEDIARY CLASS (c) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
† 2005 (e) | $ | 19.56 | $ | 0.03 | $ | (0.50 | ) | $ | (0.47 | ) | $ | – | $ | – | $ | – | $ | – | $ | 19.09 | (2.4 | )% ** | $ | 13,240 | 1.35 | % * | 1.47 | % * | 0.29 | % * | 14 | % | |||||||||||||||||||||||||
2004 (e) | 17.95 | 0.09 | 2.35 | 2.44 | (0.16 | ) | (0.67 | ) | (0.83 | ) | – | 19.56 | 13.7 | % | 12,743 | 1.35 | % | 1.55 | % | 0.74 | % | 17 | % | ||||||||||||||||||||||||||||||||||
2003 (e) | 16.38 | (0.02 | ) | 1.80 | 1.78 | (0.06 | ) | (0.15 | ) | (0.21 | ) | – | 17.95 | 10.9 | % ** | 5,387 | 1.35 | % * | 1.79 | % * | (0.04 | )% * | 22 | % | |||||||||||||||||||||||||||||||||
ROYCE SELECT FUND | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
† 2005 (e) | $ | 208.67 | $ | 1.48 | $ | (7.34 | ) | $ | (5.86 | ) | $ | – | $ | – | $ | – | $ | 0.03 | $ | 202.84 | (2.8 | )% ** | $ | 23,236 | 0.00 | % ** | 0.00 | % ** | 0.74 | % ** | 45 | % | |||||||||||||||||||||||||
2004 (e) | 198.08 | (3.23 | ) | 40.81 | 37.58 | – | (27.12 | ) | (27.12 | ) | 0.13 | 208.67 | 19.1 | % | 24,917 | 2.45 | % | 2.45 | % | (1.54 | )% | 53 | % | ||||||||||||||||||||||||||||||||||
2003 (e) | 146.01 | (3.06 | ) | 73.86 | 70.80 | – | (18.79 | ) | (18.79 | ) | 0.06 | 198.08 | 48.7 | % | 21,640 | 2.69 | % | 2.69 | % | (1.74 | )% | 30 | % | ||||||||||||||||||||||||||||||||||
2002 (e) | 176.97 | (0.97 | ) | (27.11 | ) | (28.08 | ) | – | (3.06 | ) | (3.06 | ) | 0.18 | 146.01 | (15.8 | )% | 16,183 | 1.01 | % | 1.01 | % | (0.60 | )% | 90 | % | ||||||||||||||||||||||||||||||||
2001 | 147.35 | (3.13 | ) | 38.97 | 35.84 | – | (6.26 | ) | (6.26 | ) | 0.04 | 176.97 | 24.5 | % | 18,507 | 2.72 | % | 2.72 | % | (2.13 | )% | 54 | % | ||||||||||||||||||||||||||||||||||
2000 | 141.04 | (2.24 | ) | 22.38 | 20.14 | – | (13.83 | ) | (13.83 | ) | – | 147.35 | 15.0 | % | 13,068 | 2.48 | % | 2.48 | % | (1.71 | )% | 114 | % | ||||||||||||||||||||||||||||||||||
ROYCE VALUE FUND (d) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
† 2005 (e) | $ | 8.39 | $ | (0.02 | ) | $ | 0.18 | $ | 0.16 | $ | – | $ | – | $ | – | $ | 0.01 | $ | 8.56 | 2.0 | % ** | $ | 61,531 | 1.35 | % * | 1.60 | % * | (0.52 | )% * | 19 | % | ||||||||||||||||||||||||||
2004 (e) | 6.56 | (0.06 | ) | 2.07 | 2.01 | – | (0.19 | ) | (0.19 | ) | 0.01 | 8.39 | 30.9 | % | 38,713 | 1.49 | % | 2.15 | % | (0.77 | )% | 83 | % | ||||||||||||||||||||||||||||||||||
2003 (e) | 4.35 | (0.04 | ) | 2.40 | 2.36 | – | (0.15 | ) | (0.15 | ) | – | 6.56 | 54.3 | % | 4,034 | 1.49 | % | 3.46 | % | (0.73 | )% | 181 | % | ||||||||||||||||||||||||||||||||||
2002 (e) | 5.89 | (0.06 | ) | (1.32 | ) | (1.38 | ) | – | (0.16 | ) | (0.16 | ) | – | 4.35 | (23.5 | )% | 1,319 | 1.49 | % | 3.08 | % | (1.26 | )% | 89 | % | ||||||||||||||||||||||||||||||||
2001 | 5.00 | (0.03 | ) | 0.99 | 0.96 | – | (0.07 | ) | (0.07 | ) | – | 5.89 | 19.2 | % ** | 1,491 | 1.49 | % * | 4.18 | % * | (1.39 | )% * | 74 | % | ||||||||||||||||||||||||||||||||||
74 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 |
This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net | Net | Net Realized | Distributions | Distributions | Ratio of Expenses to Average Net Assets | Ratio of Net Investment | |||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Value, Beginning of Period | Investment Income (Loss) | and Unrealized Gain (Loss) on Investments | Total from Investment Operations | from Net Investment Income | from Net Realized Gain on Investments | Total Distributions | Shareholder Redemption Fees | Net Asset Value, End of Period | Total Return | Net Assets, End of Period (in thousands) | Net of Fee Waivers | Prior to Fee Waivers | Income (Loss) to Average Net Assets | Portfolio Turnover Rate | |||||||||||||||||||||||||||||||||||||||||||
ROYCE VALUE PLUS FUND (a) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
† 2005 (g) | $ | 10.94 | $ | (0.01 | ) | $ | (0.59 | ) | $ | (0.60 | ) | $ | – | $ | – | $ | – | $ | 0.01 | $ | 10.35 | (5.4 | )% ** | $ | 210,147 | 1.18 | % * | 1.43 | % * | (0.55 | )% * | 39 | % | ||||||||||||||||||||||||
2004 (g) | 8.57 | (0.08 | ) | 2.47 | 2.39 | – | (0.04 | ) | (0.04 | ) | 0.02 | 10.94 | 28.2 | % | 211,981 | 1.30 | % | 1.55 | % | (0.84 | )% | 56 | % | ||||||||||||||||||||||||||||||||||
2003 (g) | 4.97 | (0.05 | ) | 4.01 | 3.96 | – | (0.36 | ) | (0.36 | ) | – | 8.57 | 79.9 | % | 20,405 | 1.49 | % | 2.01 | % | (0.91 | )% | 161 | % | ||||||||||||||||||||||||||||||||||
2002 (g) | 5.97 | (0.07 | ) | (0.81 | ) | (0.88 | ) | – | (0.12 | ) | (0.12 | ) | – | 4.97 | (14.7 | )% | 3,934 | 1.49 | % | 2.10 | % | (1.29 | )% | 110 | % | ||||||||||||||||||||||||||||||||
2001 | 5.00 | (0.03 | ) | 1.10 | 1.07 | – | (0.10 | ) | (0.10 | ) | – | 5.97 | 21.5 | % ** | 2,217 | 1.49 | % * | 3.71 | % * | (1.46 | )% * | 62 | % | ||||||||||||||||||||||||||||||||||
ROYCE TECHNOLOGY VALUE FUND (b) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
† 2005 (g) | $ | 6.73 | $ | (0.05 | ) | $ | (0.52 | ) | $ | (0.57 | ) | $ | – | $ | – | $ | – | $ | – | $ | 6.16 | (8.5 | )% ** | $ | 29,489 | 1.99 | % * | 2.15 | % * | (1.74 | )% * | 42 | % | ||||||||||||||||||||||||
2004 (g) | 8.25 | (0.15 | ) | (0.69 | ) | (0.84 | ) | – | (0.72 | ) | (0.72 | ) | 0.04 | 6.73 | (9.6 | )% | 37,602 | 1.99 | % | 2.13 | % | (1.94 | )% | 107 | % | ||||||||||||||||||||||||||||||||
2003 (g) | 4.33 | (0.11 | ) | 4.01 | 3.90 | – | (0.01 | ) | (0.01 | ) | 0.03 | 8.25 | 90.7 | % | 102,408 | 1.99 | % | 2.11 | % | (1.51 | )% | 64 | % | ||||||||||||||||||||||||||||||||||
2002 (g) | 5.00 | (0.17 | ) | (0.50 | ) | (0.67 | ) | – | – | – | – | 4.33 | (13.4 | )% | 4,786 | 1.99 | % | 2.73 | % | (1.74 | )% | 45 | % | ||||||||||||||||||||||||||||||||||
ROYCE 100 FUND (c) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
† 2005 (g) | $ | 6.85 | $ | (0.02 | ) | $ | 0.04 | $ | 0.02 | $ | – | $ | – | $ | – | $ | – | $ | 6.87 | 0.3 | % ** | $ | 11,208 | 1.49 | % * | 2.17 | % * | (0.50 | )% * | 31 | % | ||||||||||||||||||||||||||
2004 (g) | 5.53 | (0.02 | ) | 1.52 | 1.50 | – | (0.18 | ) | (0.18 | ) | – | 6.85 | 27.2 | % | 8,748 | 1.49 | % | 2.84 | % | (0.34 | )% | 97 | % | ||||||||||||||||||||||||||||||||||
2003 (g) | 5.00 | (0.01 | ) | 0.54 | 0.53 | – | (0.00 | ) | (0.00 | ) | – | 5.53 | 10.7 | % ** | 2,502 | 1.49 | % * | 3.68 | % * | (0.39 | )% * | 8 | % | ||||||||||||||||||||||||||||||||||
ROYCE DISCOVERY FUND (d) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
† 2005 (g) | $ | 6.39 | $ | (0.01 | ) | $ | (0.08 | ) | $ | (0.09 | ) | $ | – | $ | – | $ | – | $ | – | $ | 6.30 | (1.4 | )% ** | $ | 3,199 | 1.49 | % * | 3.81 | % * | (0.54 | )% * | 57 | % | ||||||||||||||||||||||||
2004 (g) | 5.70 | (0.05 | ) | 0.81 | 0.76 | – | (0.07 | ) | (0.07 | ) | – | 6.39 | 13.4 | % | 3,217 | 1.49 | % | 4.12 | % | (0.91 | )% | 111 | % | ||||||||||||||||||||||||||||||||||
2003 (g) | 5.00 | (0.01 | ) | 0.71 | 0.70 | – | – | – | – | 5.70 | 14.0 | % ** | 1,359 | 1.49 | % * | 8.69 | % * | (1.05 | )% * | 1 | % | ||||||||||||||||||||||||||||||||||||
ROYCE FINANCIAL SERVICES FUND (e) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
† 2005 (g) | $ | 5.66 | $ | 0.03 | $ | (0.10 | ) | $ | (0.07 | ) | $ | – | $ | – | $ | – | $ | – | $ | 5.59 | (1.2 | )% ** | $ | 1,483 | 1.49 | % * | 3.89 | % * | 0.95 | % * | 2 | % | |||||||||||||||||||||||||
2004 (g) | 5.00 | (0.01 | ) | 0.76 | 0.75 | – | (0.09 | ) | (0.09 | ) | – | 5.66 | 15.1 | % | 1,418 | 1.49 | % | 4.70 | % | (0.16 | )% | 22 | % | ||||||||||||||||||||||||||||||||||
ROYCE DIVIDEND VALUE FUND (f) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
† 2005 (g) | $ | 5.65 | $ | 0.03 | $ | (0.10 | ) | $ | (0.07 | ) | $ | (0.02 | ) | $ | – | $ | (0.02 | ) | $ | – | $ | 5.56 | (1.2 | )% ** | $ | 3,059 | 1.49 | % * | 3.17 | % * | 1.28 | % * | 2 | % | |||||||||||||||||||||||
2004 (g) | 5.00 | (0.01 | ) | 0.66 | 0.65 | – | – | – | – | 5.65 | 13.0 | % ** | 1,650 | 1.49 | % * | 5.60 | % * | (0.17 | )% * | 8 | % | ||||||||||||||||||||||||||||||||||||
THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 75 |
NOTES TO FINANCIAL STATEMENTS (Unaudited) |
Summary of Significant Accounting Policies: Pennsylvania Mutual Fund, Royce Micro-Cap Fund, Royce Premier Fund, Royce Low-Priced Stock Fund, Royce Total Return Fund, Royce TrustShares Fund, Royce Opportunity Fund, Royce Special Equity Fund, Royce Select Fund, Royce Value Fund, Royce Value Plus Fund, Royce Technology Value Fund, Royce 100 Fund, Royce Discovery Fund, Royce Financial Services Fund and Royce Dividend Value Fund (the “Fund” or “Funds”), are the sixteen series of The Royce Fund (the “Trust”), a diversified open-end management investment company organized as a Delaware business trust. Classes of shares have equal rights as to earnings and assets, except that each class may bear different fees and expenses for distribution, shareholder servicing, registration and shareholder reports, and different expense reimbursements. Investment income, realized and unrealized capital gains or losses on investments, and expenses other than those attributable to a specific class are allocated to each class of shares based on its relative net assets. The W Classes of Royce Premier Fund and Royce Total Return Fund commenced operations on May 19, 2005, with an initial transfer from each Fund’s Investment Class. This transfer is included on the Statement of Changes in Net Assets as “value of shares sold” for the W Class and “value of shares redeemed” for the Investment Class [$220,153,624 (15,320,364 shares) for Royce Premier Fund and $86,905,027 (7,260,236 shares) for Royce Total Return Fund]. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. Valuation of Investments: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4:00 p.m. Eastern time) on the valuation date. Securities that trade on an exchange or Nasdaq are valued at their last reported sales price taken from the primary market in which each security trades or, if no sale is reported for such day, at their bid price. Other over-the-counter securities for which market quotations are readily available are valued at their bid price. Securities for which market quotations are not readily available are valued at their fair value under procedures established by the Board of Trustees. Bonds and other fixed income securities may be valued by reference to other securities with comparable ratings, interest rates and maturities, using established independent pricing services. Investment Transactions and Related Investment Income: Investment transactions are accounted for on the trade date. Dividend income is recorded on the ex-dividend date and any non-cash dividend income is recorded at the fair market value of the securities received. Interest income is recorded on an accrual basis. Realized | gains and losses from investment transactions are determined on the basis of identified cost for book and tax purposes. Expenses: The Funds incur direct and indirect expenses. Expenses directly attributable to a Fund are charged to the Fund’s operations, while expenses applicable to more than one series of the Trust are allocated equitably. Allocated personnel and occupancy costs related to The Royce Funds are included in administrative and office facilities expenses. The Fund has adopted a deferred fee agreement that allows the Trustees to defer the receipt of all or a portion of Trustees Fees otherwise payable. The deferred fees are invested in certain Royce Funds until distribution in accordance with the agreement. Distributions and Taxes: As qualified regulated investment companies under Subchapter M of the Internal Revenue Code, the Funds are not subject to income taxes to the extent that each Fund distributes substantially all of its taxable income for its fiscal year. Royce Total Return Fund and Royce Dividend Value Fund pay any dividends from net investment income quarterly and make any distributions from net realized gains annually in December. The other Funds pay any dividends and capital gain distributions annually in December. Because federal income tax regulations differ from generally accepted accounting principles, income and capital gain distributions determined in accordance with tax regulations may differ from net investment income and realized gains recognized for financial reporting purposes. Accordingly, the character of distributions and composition of net assets for tax purposes differs from those reflected in the accompanying financial statements. Repurchase Agreements: The Funds entered into repurchase agreements with respect to portfolio securities solely with State Street Bank and Trust Company (“SSB&T”), the custodian of the Funds’ assets. Each Fund restricts repurchase agreements to maturities of no more than seven days. Securities pledged as collateral for repurchase agreements, which are held by SSB&T until maturity of the repurchase agreements, are marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest). Repurchase agreements could involve certain risks in the event of default or insolvency of SSB&T, including possible delays or restrictions upon the ability of each Fund to dispose of its underlying securities. Securities Lending: The Funds loan securities to qualified institutional investors for the purpose of realizing additional income. Collateral on all securities loaned for the Funds is accepted in cash and cash equivalents and invested temporarily by the custodian. The collateral is equal to at least 100% of the current market value of the loaned securities. |
76 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 |
Capital Share Transactions (In Shares): | ||||||||||||||||||||||||||||||||
Shares sold | Shares issued for reinvestment of distributions | Shares redeemed | Net increase (decrease) in shares outstanding | |||||||||||||||||||||||||||||
Period ended 6/30/05 (unaudited) | Period ended 12/31/04 | Period ended 6/30/05 (unaudited) | Period ended 12/31/04 | Period ended 6/30/05 (unaudited) | Period ended 12/31/04 | Period ended 6/30/05 (unaudited) | Period ended 12/31/04 | |||||||||||||||||||||||||
Pennsylvania Mutual Fund | ||||||||||||||||||||||||||||||||
Investment Class | 32,063,911 | 41,945,832 | – | 4,788,099 | (11,655,014 | ) | (18,729,869 | ) | 20,408,897 | 28,004,062 | ||||||||||||||||||||||
Consultant Class | 10,515,464 | 23,976,793 | – | 3,868,233 | (6,797,112 | ) | (6,695,939 | ) | 3,718,352 | 21,149,087 | ||||||||||||||||||||||
Royce Micro-Cap Fund | ||||||||||||||||||||||||||||||||
Investment Class | 3,550,668 | 5,123,700 | – | 2,614,412 | (4,915,288 | ) | (6,536,395 | ) | (1,364,620 | ) | 1,201,717 | |||||||||||||||||||||
Consultant Class | 897,336 | 1,875,139 | – | 1,053,615 | (1,433,916 | ) | (1,584,830 | ) | (536,580 | ) | 1,343,924 | |||||||||||||||||||||
Institutional Class | 922 | – | – | 34,285 | (922 | ) | (334,896 | ) | – | (300,611 | ) | |||||||||||||||||||||
Financial Intermediary Class | 7,373 | 64,739 | – | 6,676 | (13,434 | ) | (11,464 | ) | (6,061 | ) | 59,951 | |||||||||||||||||||||
Royce Premier Fund | ||||||||||||||||||||||||||||||||
Investment Class | 30,232,445 | 82,256,221 | – | 8,337,329 | (42,141,921 | ) | (26,593,593 | ) | (11,909,476 | ) | 63,999,957 | |||||||||||||||||||||
Consultant Class | 804,680 | 1,456,219 | – | 77,434 | (190,257 | ) | (144,807 | ) | 614,423 | 1,388,846 | ||||||||||||||||||||||
Institutional Class | 6,128,178 | 5,441,712 | – | 202,115 | (1,411,173 | ) | (611,392 | ) | 4,717,005 | 5,032,435 | ||||||||||||||||||||||
Financial Intermediary Class | 2,736,116 | 3,483,886 | – | 214,339 | (999,096 | ) | (1,577,299 | ) | 1,737,020 | 2,120,926 | ||||||||||||||||||||||
W Class | 16,379,608 | – | (127,041 | ) | 16,252,567 | |||||||||||||||||||||||||||
Royce Low-Priced Stock Fund | ||||||||||||||||||||||||||||||||
Investment Class | 23,555,310 | 148,028,874 | – | 10,401,741 | (65,132,074 | ) | (65,129,367 | ) | (41,576,764 | ) | 93,301,248 | |||||||||||||||||||||
Royce Total Return Fund | ||||||||||||||||||||||||||||||||
Investment Class | 59,022,696 | 130,787,570 | 1,161,203 | 6,352,446 | (45,124,774 | ) | (46,307,783 | ) | 15,059,125 | 90,832,233 | ||||||||||||||||||||||
Consultant Class | 6,643,700 | 14,762,571 | – | 590,584 | (2,630,139 | ) | (3,319,331 | ) | 4,013,561 | 12,033,824 | ||||||||||||||||||||||
Institutional Class | 2,978,254 | 4,423,915 | 48,254 | 202,668 | (1,348,659 | ) | (857,294 | ) | 1,677,849 | 3,769,289 | ||||||||||||||||||||||
Financial Intermediary Class | 5,190,343 | 12,313,693 | 71,057 | 446,658 | (2,561,371 | ) | (3,679,636 | ) | 2,700,029 | 9,080,715 | ||||||||||||||||||||||
W Class | 8,277,748 | 12,763 | (53,229 | ) | 8,237,282 | |||||||||||||||||||||||||||
Royce TrustShares Fund | ||||||||||||||||||||||||||||||||
Investment Class | 86,087 | 913,039 | – | 380,480 | (34,182 | ) | (24,531 | ) | 51,905 | 1,268,988 | ||||||||||||||||||||||
Consultant Class | 23,895 | 74,895 | – | 16,058 | (4,647 | ) | (527 | ) | 19,248 | 90,426 | ||||||||||||||||||||||
Consultant B Class | – | 88,139 | (739,446 | ) | (651,307 | ) | ||||||||||||||||||||||||||
Royce Opportunity Fund | ||||||||||||||||||||||||||||||||
Investment Class | 11,700,779 | 41,398,474 | – | 7,685,313 | (21,085,046 | ) | (31,087,553 | ) | (9,384,267 | ) | 17,996,234 | |||||||||||||||||||||
Institutional Class | 2,277,198 | 8,205,414 | – | 776,430 | (3,479,678 | ) | (1,559,650 | ) | (1,202,480 | ) | 7,422,194 | |||||||||||||||||||||
Financial Intermediary Class | 2,722,742 | 11,209,418 | – | 1,162,518 | (5,094,113 | ) | (2,391,266 | ) | (2,371,371 | ) | 9,980,670 | |||||||||||||||||||||
Royce Special Equity Fund | ||||||||||||||||||||||||||||||||
Investment Class | 2,108,789 | 13,620,772 | – | 1,679,596 | (8,547,693 | ) | (11,770,898 | ) | (6,438,904 | ) | 3,529,470 | |||||||||||||||||||||
Consultant Class | 58,646 | 516,241 | – | 34,241 | (87,459 | ) | (64,676 | ) | (28,813 | ) | 485,806 | |||||||||||||||||||||
Institutional Class | 1,195,188 | 7,756,436 | – | 262,461 | (982,150 | ) | (451,861 | ) | 213,038 | 7,567,036 | ||||||||||||||||||||||
Financial Intermediary Class | 91,181 | 578,707 | – | 26,847 | (49,092 | ) | (254,204 | ) | 42,089 | 351,350 | ||||||||||||||||||||||
Royce Select Fund | ||||||||||||||||||||||||||||||||
Investment Class | 2,730 | 16,370 | – | 13,007 | (7,587 | ) | (19,214 | ) | (4,857 | ) | 10,163 | |||||||||||||||||||||
Royce Value Fund | ||||||||||||||||||||||||||||||||
Investment Class | 3,569,080 | 4,348,867 | – | 82,926 | (994,871 | ) | (432,114 | ) | 2,574,209 | 3,999,679 | ||||||||||||||||||||||
Royce Value Plus Fund | ||||||||||||||||||||||||||||||||
Investment Class | 10,187,258 | 20,092,191 | – | 62,295 | (9,260,940 | ) | (3,165,770 | ) | 926,318 | 16,988,716 | ||||||||||||||||||||||
Royce Technology Value Fund | ||||||||||||||||||||||||||||||||
Investment Class | 778,766 | 2,927,413 | – | 584,738 | (1,572,218 | ) | (10,348,141 | ) | (793,452 | ) | (6,835,990 | ) | ||||||||||||||||||||
Royce 100 Fund | ||||||||||||||||||||||||||||||||
Investment Class | 461,723 | 842,511 | – | 29,278 | (106,643 | ) | (47,153 | ) | 355,080 | 824,636 | ||||||||||||||||||||||
Royce Discovery Fund | ||||||||||||||||||||||||||||||||
Investment Class | 101,940 | 365,196 | – | 5,088 | (97,196 | ) | (105,707 | ) | 4,744 | 264,577 | ||||||||||||||||||||||
Royce Financial Services Fund | ||||||||||||||||||||||||||||||||
Investment Class | 23,649 | 247,030 | – | 3,710 | (8,643 | ) | (402 | ) | 15,006 | 250,338 | ||||||||||||||||||||||
Royce Dividend Value Fund | ||||||||||||||||||||||||||||||||
Investment Class | 272,427 | 296,036 | 1,978 | – | (16,497 | ) | (4,135 | ) | 257,908 | 291,901 |
THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 77 |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED) |
Investment Advisor and Distributor: Investment Adviser: Under the Trust’s investment advisory agreements with Royce & Associates, LLC (“Royce”), Royce is entitled to receive management and performance fees that are computed daily and payable monthly. Royce has contractually committed to waive its fees and reimburse expenses to the extent necessary to maintain certain Funds’ net annual operating expense ratios at specified levels through December 31, 2005. |
Committed net annual | ||||||||||||||||||||||||
operating expense ratio | Six months | |||||||||||||||||||||||
Annual contractual | ended June 30, 2005 | |||||||||||||||||||||||
advisory fee as a | Financial | |||||||||||||||||||||||
percentage of | Investment | Consultant | Institutional | Intermediary | W | Net advisory | Advisory | |||||||||||||||||
average net assets b | Class | Class | Class | Class | Class | fees | fees waived | |||||||||||||||||
Pennsylvania Mutual Fund | 0.76 | % a | N/A | N/A | N/A | N/A | N/A | $ | 7,908,538 | $ | – | |||||||||||||
Royce Micro-Cap Fund | 1.30 | % | N/A | 2.99 | % | 1.35 | % | 1.49 | % | N/A | 3,972,368 | – | ||||||||||||
Royce Premier Fund | 0.98 | % | N/A | 2.99 | % | 1.04 | % | 1.29 | % | 1.08 | % | 15,623,591 | – | |||||||||||
Royce Low-Priced Stock Fund | 1.12 | % | 1.49 | % | N/A | N/A | N/A | N/A | 23,535,188 | 166,856 | ||||||||||||||
Royce Total Return Fund | 0.96 | % | N/A | N/A | N/A | 1.29 | % | 1.08 | % | 22,780,007 | – | |||||||||||||
Royce TrustShares Fund | 1.00 | % | 1.49 | % | 2.49 | % | N/A | N/A | N/A | 258,743 | – | |||||||||||||
Royce Opportunity Fund | 1.00 | % | N/A | N/A | 1.04 | % | 1.29 | % | N/A | 9,607,449 | – | |||||||||||||
Royce Special Equity Fund | 1.00 | % | N/A | 2.99 | % | N/A | 1.35 | % | N/A | 4,788,629 | – | |||||||||||||
Royce Value Fund | 1.00 | % | 1.49 | % | N/A | N/A | N/A | N/A | 250,696 | – | ||||||||||||||
Royce Value Plus Fund | 1.00 | % | 1.49 | % | N/A | N/A | N/A | N/A | 1,113,644 | – | ||||||||||||||
Royce Technology Value Fund | 1.50 | % | 1.99 | % | N/A | N/A | N/A | N/A | 217,361 | 6,913 | ||||||||||||||
Royce 100 Fund | 1.00 | % | 1.49 | % | N/A | N/A | N/A | N/A | 28,625 | 21,940 | ||||||||||||||
Royce Discovery Fund | 1.00 | % | 1.49 | % | N/A | N/A | N/A | N/A | – | 15,676 | ||||||||||||||
Royce Financial Services Fund | 1.00 | % | 1.49 | % | N/A | N/A | N/A | N/A | – | 7,156 | ||||||||||||||
Royce Dividend Value Fund | 1.00 | % | 1.49 | % | N/A | N/A | N/A | N/A | – | 10,156 | ||||||||||||||
• | More than $2 billion to $4 billion | .05% per annum | |
• | More than $4 billion to $6 billion | .10% per annum | |
• | Over $6 billion | .15% per annum |
Royce is entitled to receive from Royce Select Fund a performance fee of 12.5% of the Fund’s pre-fee total return, subject to high watermark accounting. Fund shares will not bear a fee for any day on which the Fund’s pre-fee cumulative total return does not exceed its pre-fee cumulative total return as of the day on which a fee was last accrued. However, Royce will not reimburse previously accrued fees because of any negative total returns occurring after their accrual. The agreement provides that all expenses of the Fund, except brokerage commissions, taxes, interest and extraordinary expenses, will be paid by Royce. For the six months ended June 30, 2005, the Fund accrued no performance fees. Distributor: Royce Fund Services, Inc., the distributor of the Trust’s shares, is a wholly owned subsidiary of Royce. |
Six months ended June 30, 2005 | ||||||||||
Annual contractual | ||||||||||
distribution fee as a percentage | Net | Distribution | ||||||||
of average net assets | distribution fees | fees waived | ||||||||
Pennsylvania Mutual Fund – Consultant Class | 1.00% | $ | 3,746,201 | $ | 50,168 | |||||
Royce Micro-Cap Fund – Consultant Class | 1.00% | 794,194 | – | |||||||
Royce Micro-Cap Fund – Financial Intermediary Class | 0.25% | 1,321 | – | |||||||
Royce Premier Fund – Consultant Class | 1.00% | 155,107 | – | |||||||
Royce Premier Fund – Financial Intermediary Class | 0.25% | 101,981 | – | |||||||
Royce Low-Priced Stock Fund – Investment Class | 0.25% | 4,158,571 | 1,131,490 | |||||||
Royce Total Return Fund – Consultant Class | 1.00% | 2,586,467 | – | |||||||
Royce Total Return Fund – Financial Intermediary Class | 0.25% | 341,060 | – | |||||||
Royce TrustShares Fund – Investment Class | 0.25% | 24,905 | 37,358 | |||||||
Royce TrustShares Fund – Consultant Class | 1.00% | 9,690 | – | |||||||
Royce Opportunity Fund – Financial Intermediary Class | 0.25% | 269,050 | – | |||||||
Royce Special Equity Fund – Consultant Class | 1.00% | 96,666 | – | |||||||
Royce Special Equity Fund – Financial Intermediary Class | 0.25% | 16,069 | – | |||||||
Royce Value Fund – Investment Class | 0.25% | – | 62,674 | |||||||
Royce Value Plus Fund – Investment Class | 0.25% | – | 278,411 | |||||||
Royce Technology Value Fund – Investment Class | 0.25% | 20,932 | 16,447 | |||||||
Royce 100 Fund – Investment Class | 0.25% | – | 12,641 | |||||||
Royce Discovery Fund – Investment Class | 0.25% | – | 3,919 | |||||||
Royce Financial Services Fund – Investment Class | 0.25% | – | 1,789 | |||||||
Royce Dividend Value Fund – Investment Class | 0.25% | – | 2,539 | |||||||
78 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 |
Purchases and Sales of Investment Securities: |
For the six months ended June 30, 2005, the cost of purchases and the proceeds from sales of investment securities, other than short-term securities and collateral received for securities loaned, were as follows: |
Purchases | Sales | Purchases | Sales | |||||||||||||||
Pennsylvania Mutual Fund | $ | 356,910,198 | $ | 217,062,249 | Royce Select Fund | $ | 9,849,536 | $ | 12,260,906 | |||||||||
Royce Micro-Cap Fund | 86,687,253 | 130,396,051 | Royce Value Fund | 28,936,488 | 8,179,623 | |||||||||||||
Royce Premier Fund | 519,979,356 | 325,869,748 | Royce Value Plus Fund | 103,657,592 | 77,337,420 | |||||||||||||
Royce Low-Priced Stock Fund | 417,256,328 | 791,966,383 | Royce Technology Value Fund | 11,978,710 | 20,157,802 | |||||||||||||
Royce Total Return Fund | 963,069,643 | 474,158,408 | Royce 100 Fund | 5,504,964 | 2,800,304 | |||||||||||||
Royce TrustShares Fund | 34,909,233 | 27,157,973 | Royce Discovery Fund | 1,643,894 | 1,806,713 | |||||||||||||
Royce Opportunity Fund | 404,380,962 | 554,285,822 | Royce Financial Services Fund | 196,520 | 31,000 | |||||||||||||
Royce Special Equity Fund | 123,036,312 | 165,415,285 | Royce Dividend Value Fund | 1,405,893 | 26,979 | |||||||||||||
Tax Information: |
At June 30, 2005, net unrealized appreciation (depreciation) based on identified cost for tax purposes was as follows: |
Net Unrealized | Gross Unrealized | |||||||||||||||
Appreciation | ||||||||||||||||
Tax Basis Cost | (Depreciation) | Appreciation | Depreciation | |||||||||||||
Pennsylvania Mutual Fund | $ | 1,777,409,019 | $ | 564,457,955 | $ | 602,405,444 | $ | 37,947,489 | ||||||||
Royce Micro-Cap Fund | 515,959,168 | 92,688,122 | 130,293,605 | 37,605,483 | ||||||||||||
Royce Premier Fund | 2,617,807,806 | 731,933,519 | 769,050,766 | 37,117,247 | ||||||||||||
Royce Low-Priced Stock Fund | 3,551,551,566 | 487,728,521 | 759,279,794 | 271,551,273 | ||||||||||||
Royce Total Return Fund | 4,129,605,555 | 935,248,929 | 1,024,850,761 | 89,601,832 | ||||||||||||
Royce TrustShares Fund | 47,602,014 | 4,530,303 | 6,833,855 | 2,303,552 | ||||||||||||
Royce Opportunity Fund | 1,818,590,885 | 240,204,654 | 372,009,284 | 131,804,630 | ||||||||||||
Royce Special Equity Fund | 754,635,863 | 158,858,281 | 172,871,316 | 14,013,035 | ||||||||||||
Royce Select Fund | 19,115,906 | 3,763,208 | 4,184,666 | 421,458 | ||||||||||||
Royce Value Fund | 57,890,412 | 4,773,736 | 6,762,640 | 1,988,904 | ||||||||||||
Royce Value Plus Fund | 200,400,100 | 8,639,127 | 21,697,995 | 13,058,868 | ||||||||||||
Royce Technology Value Fund | 30,447,328 | (1,925,607 | ) | 3,026,621 | 4,952,228 | |||||||||||
Royce 100 Fund | 10,185,972 | 913,639 | 1,249,393 | 335,754 | ||||||||||||
Royce Discovery Fund | 3,072,095 | 138,144 | 217,380 | 79,236 | ||||||||||||
Royce Financial Services Fund | 1,373,431 | 110,824 | 153,587 | 42,763 | ||||||||||||
Royce Dividend Value Fund | 3,295,498 | 143,111 | 198,289 | 55,178 | ||||||||||||
The primary difference between book and tax basis cost is the timing of the recognition of losses on securities sold for book and tax purposes. |
Transactions in Affiliated Companies: An “Affiliated Company,” as defined in the Investment Company Act of 1940, is a company in which a fund owns 5% or more of the company’s outstanding voting securities. The following transactions were effected in shares of such companies for the six months ended June 30, 2005. |
Affiliated Company | Shares 12/31/04 | Market Value 12/31/04 | Cost of Purchases | Cost of Sales | Realized Gain (Loss) | Dividend Income | Shares 6/30/05 | Market Value 6/30/05 | |||||||||||||||||||||||
Pennsylvania Mutual Fund | |||||||||||||||||||||||||||||||
CNS * | 839,877 | $ | 10,540,456 | $ | 14,426 | $ | 3,805,379 | $ | 4,162,244 | $ | 92,446 | ||||||||||||||||||||
Cutter & Buck | 436,000 | 6,352,520 | 2,829,676 | – | – | 37,898 | 634,100 | $ | 8,179,890 | ||||||||||||||||||||||
Hi-Tech Pharmacal * | 435,100 | 8,023,244 | 543,831 | 1,457,835 | 631,924 | – | |||||||||||||||||||||||||
InterVideo | 996,800 | 13,187,664 | – | 2,560,994 | 1,268,334 | – | 758,500 | 10,907,230 | |||||||||||||||||||||||
Neoware Systems | 1,259,823 | 11,727,692 | 49,260 | 3,645,009 | 1,228,671 | – | 847,523 | 8,678,636 | |||||||||||||||||||||||
Nu Horizons Electronics | 1,218,134 | 9,720,709 | 887,721 | – | – | – | 1,344,234 | 8,603,098 | |||||||||||||||||||||||
Nutraceutical International | 819,746 | 12,632,286 | – | – | – | – | 819,746 | 10,943,609 | |||||||||||||||||||||||
Pervasive Software | 1,237,100 | 5,999,935 | – | – | – | – | 1,237,100 | 5,240,356 | |||||||||||||||||||||||
RemedyTemp Cl. A * | 481,500 | 4,935,375 | – | 57,333 | (7,422 | ) | – | ||||||||||||||||||||||||
Rimage Corporation | 570,996 | 9,170,196 | – | – | – | – | 570,996 | 12,122,245 | |||||||||||||||||||||||
SM&A | 855,400 | 7,297,417 | 1,335,888 | – | – | – | 1,017,900 | 9,130,563 | |||||||||||||||||||||||
Strattec Security | 202,740 | 12,695,579 | – | – | – | – | 202,740 | 11,041,220 | |||||||||||||||||||||||
U.S. Physical Therapy | 910,600 | 14,041,452 | 731,392 | – | – | – | 957,975 | 18,373,961 | |||||||||||||||||||||||
Weyco Group | 263,175 | 11,656,021 | 4,983,000 | – | – | 65,794 | 775,500 | 15,281,227 | |||||||||||||||||||||||
Zapata Corporation | 126,200 | 7,559,380 | – | – | – | – | 1,009,600 | 6,158,560 | |||||||||||||||||||||||
145,539,926 | 7,283,751 | 196,138 | 124,660,595 |
THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 79 |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED) |
Transactions in Affiliated Companies (Continued): |
Affiliated Company | Shares 12/31/04 | Market Value 12/31/04 | Cost of Purchases | Cost of Sales | Realized Gain (Loss) | Dividend Income | Shares 6/30/05 | Market Value 6/30/05 | |||||||||||||||||||||||
Royce Micro-Cap Fund | |||||||||||||||||||||||||||||||
AirNet Systems * | 517,700 | $ | 1,806,773 | $ | – | $ | 2,188,389 | $ | 17,362 | $ | – | ||||||||||||||||||||
Dawson Geophysical * | 325,700 | 7,116,545 | 899,150 | – | – | – | |||||||||||||||||||||||||
InPlay Technologies | 835,200 | 1,979,424 | – | – | – | – | 835,200 | $ | 1,336,320 | ||||||||||||||||||||||
Jaco Electronics | 382,250 | 1,529,000 | – | – | – | – | 382,250 | 1,131,460 | |||||||||||||||||||||||
Key Technology | 379,983 | 3,666,836 | 62,845 | 1,465,100 | (197,600 | ) | – | 256,483 | 2,744,368 | ||||||||||||||||||||||
Peerless Manufacturing | 156,400 | 2,267,800 | – | – | – | – | 156,400 | 2,267,800 | |||||||||||||||||||||||
18,366,378 | (180,238 | ) | - | 7,479,948 | |||||||||||||||||||||||||||
Royce Premier Fund | |||||||||||||||||||||||||||||||
Cabot Microelectronics | 1,263,800 | 50,615,190 | 14,035,869 | – | – | – | 1,731,300 | 50,190,387 | |||||||||||||||||||||||
EGL | 1,724,200 | 51,536,338 | 19,581,608 | – | – | – | 2,693,600 | 54,733,952 | |||||||||||||||||||||||
Ensign Energy Services | 4,119,900 | 85,918,287 | – | – | – | 459,642 | 4,119,900 | 99,433,107 | |||||||||||||||||||||||
Lincoln Electric Holdings | 2,054,497 | 70,962,326 | 22,534,741 | – | – | 990,395 | 2,769,597 | 91,812,141 | |||||||||||||||||||||||
Nu Skin Enterprises Cl. A | 3,411,500 | 86,583,870 | 10,882,788 | 954,516 | 4,104 | 678,420 | 3,856,500 | 89,856,450 | |||||||||||||||||||||||
Ritchie Bros. Auctioneers | 1,776,200 | 58,721,172 | – | – | – | 332,149 | 1,776,200 | 68,472,510 | |||||||||||||||||||||||
Schnitzer Steel Industries Cl. A | 1,388,600 | 47,115,198 | 5,309,673 | – | – | 51,938 | 1,552,600 | 36,796,620 | |||||||||||||||||||||||
Simpson Manufacturing | 2,408,400 | 84,053,160 | 10,346,020 | – | – | 243,590 | 2,763,400 | 84,421,870 | |||||||||||||||||||||||
Trican Well Service | 1,338,000 | 73,956,446 | 17,225,557 | 6,213,251 | 1,492,380 | – | 4,635,400 | 113,955,475 | |||||||||||||||||||||||
Viasys Healthcare | 1,981,900 | 37,656,100 | – | – | – | – | 1,981,900 | 44,771,121 | |||||||||||||||||||||||
Winnebago Industries | 1,914,500 | 74,780,370 | 11,056,130 | – | – | 303,730 | 2,244,500 | 73,507,375 | |||||||||||||||||||||||
Woodward Governor Company | 640,604 | 45,873,652 | – | – | – | 320,302 | 640,604 | 53,829,954 | |||||||||||||||||||||||
767,772,109 | 1,496,484 | 3,380,166 | 861,780,962 | ||||||||||||||||||||||||||||
Royce Low-Priced Stock Fund | |||||||||||||||||||||||||||||||
Arctic Cat | 1,525,860 | 40,465,807 | – | 2,509,888 | 1,044,240 | 204,695 | 1,398,360 | 28,708,331 | |||||||||||||||||||||||
Bioveris Corporation | 1,270,200 | 9,285,162 | 2,589,009 | – | – | – | 1,834,100 | 8,015,017 | |||||||||||||||||||||||
Bruker BioSciences | 5,562,700 | 22,417,681 | 1,636,725 | – | – | – | 6,009,800 | 23,979,102 | |||||||||||||||||||||||
Cache | 997,300 | 17,971,346 | 837,663 | – | – | – | 1,067,800 | 17,746,836 | |||||||||||||||||||||||
Callaway Golf * | 4,144,200 | 55,946,700 | – | 12,685,252 | (3,581,163 | ) | 517,202 | ||||||||||||||||||||||||
CEVA | 1,306,800 | 11,901,028 | – | – | – | – | 1,306,800 | 7,657,848 | |||||||||||||||||||||||
Cell Genesys | 2,736,600 | 22,166,460 | 1,488,736 | – | – | – | 3,016,600 | 16,138,810 | |||||||||||||||||||||||
CoolBrands International | 3,681,600 | 27,908,064 | – | 5,857,845 | (4,619,212 | ) | – | 3,331,600 | 11,203,226 | ||||||||||||||||||||||
CryptoLogic * | 846,000 | 21,107,700 | – | 9,178,420 | 16,838,777 | 24,867 | |||||||||||||||||||||||||
Discovery Partners International | 1,885,200 | 8,954,700 | – | – | – | – | 1,885,200 | 5,391,672 | |||||||||||||||||||||||
ESS Technology | 2,158,900 | 15,349,779 | 528,687 | – | – | – | 2,258,900 | 9,509,969 | |||||||||||||||||||||||
eFunds Corporation | 3,718,800 | 89,288,388 | 449,650 | 3,922,950 | 902,013 | – | 3,524,700 | 63,409,353 | |||||||||||||||||||||||
Exar Corporation | 2,956,850 | 41,957,702 | 1,998,694 | – | – | – | 3,106,850 | 46,260,996 | |||||||||||||||||||||||
Forrester Research | 1,161,100 | 20,830,134 | 1,093,221 | – | – | – | 1,238,600 | 22,084,238 | |||||||||||||||||||||||
Gammon Lake Resources * | 2,665,200 | 14,232,168 | 1,757,310 | – | – | – | |||||||||||||||||||||||||
Harris Steel Group | 77,000 | 1,289,627 | 25,697,601 | – | – | 178,440 | 1,584,000 | 26,632,713 | |||||||||||||||||||||||
Hecla Mining Company | 11,741,500 | 68,452,945 | – | – | – | – | 11,741,500 | 53,541,240 | |||||||||||||||||||||||
Input/Output | 6,652,900 | 58,811,636 | – | – | – | – | 6,652,900 | 41,780,212 | |||||||||||||||||||||||
Insituform Technologies Cl. A | 2,544,900 | 57,692,883 | 1,465,699 | – | – | – | 2,644,900 | 42,397,747 | |||||||||||||||||||||||
Integral Systems | 595,300 | 11,578,585 | 83,552 | – | – | 47,952 | 599,500 | 13,566,685 | |||||||||||||||||||||||
iPass | 2,234,000 | 16,531,600 | 5,805,376 | – | – | – | 3,190,600 | 19,335,036 | |||||||||||||||||||||||
KVH Industries | 1,254,100 | 12,290,180 | – | 729,164 | (155,780 | ) | – | 1,202,200 | 11,120,350 | ||||||||||||||||||||||
Keith Companies * | 656,200 | 11,411,318 | – | 7,207,416 | 6,441,859 | – | |||||||||||||||||||||||||
Lexicon Genetics | 4,033,800 | 31,282,119 | – | – | – | – | 4,033,800 | 19,926,972 | |||||||||||||||||||||||
Metal Management | 1,160,500 | 31,182,635 | 16,658,907 | – | – | 245,055 | 1,883,700 | 36,449,595 | |||||||||||||||||||||||
Minefinders Corporation | 2,174,300 | 14,915,698 | – | – | – | – | 2,174,300 | 10,045,266 | |||||||||||||||||||||||
Multimedia Games | 1,757,438 | 27,697,223 | – | 4,984,566 | (2,116,953 | ) | – | 1,452,438 | 15,991,342 | ||||||||||||||||||||||
New Frontier Media | 1,159,500 | 9,182,081 | – | – | – | – | 1,159,500 | 7,710,675 | |||||||||||||||||||||||
Northern Orion Resources | 8,582,600 | 24,975,366 | 688,025 | – | – | – | 8,832,600 | 21,639,870 | |||||||||||||||||||||||
Nu Skin Enterprises Cl. A * | 3,523,900 | 89,436,582 | – | 4,116,197 | 1,113,437 | 625,302 | |||||||||||||||||||||||||
Omega Protein | 1,525,600 | 13,120,160 | 1,033,131 | – | – | – | 1,672,500 | 10,570,200 | |||||||||||||||||||||||
PC-Tel | 1,358,600 | 10,773,698 | – | – | – | – | 1,358,600 | 10,637,838 | |||||||||||||||||||||||
PDI | – | – | 15,885,605 | – | – | – | 844,000 | 10,406,520 | |||||||||||||||||||||||
Palm Harbor Homes | 1,363,300 | 23,012,504 | 2,379,177 | 1,037,185 | (129,774 | ) | – | 1,463,300 | 27,553,939 | ||||||||||||||||||||||
Pason Systems | 1,055,900 | 32,473,028 | – | 1,444,823 | 608,221 | 214,375 | 1,996,400 | 34,707,248 | |||||||||||||||||||||||
Perrigo Company * | 4,126,800 | 71,269,836 | 2,097,977 | 360,546 | (20,810 | ) | 328,624 | ||||||||||||||||||||||||
Possis Medical | 466,200 | 6,284,376 | 6,678,378 | 681,263 | (154,635 | ) | – | 984,000 | 9,967,920 | ||||||||||||||||||||||
REMEC * | 3,255,927 | 23,475,234 | – | 18,012,893 | 462,738 | – | |||||||||||||||||||||||||
Select Comfort | 2,563,400 | 45,987,396 | – | 13,488,482 | 2,988,972 | – | 1,843,400 | 39,504,062 | |||||||||||||||||||||||
Semitool | 1,771,233 | 16,437,042 | – | – | – | – | 1,771,233 | 16,897,563 |
80 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 |
|
Affiliated Company | Shares 12/31/04 | Market Value 12/31/04 | Cost of Purchases | Cost of Sales | Realized Gain (Loss) | Dividend Income | Shares 6/30/05 | Market Value 6/30/05 | |||||||||||||||||||||||
Royce Low-Priced Stock Fund (continued) | |||||||||||||||||||||||||||||||
Silver Standard Resources | 3,251,700 | $ | 39,306,550 | $ | 1,185,935 | $ | – | $ | – | $ | – | 3,351,700 | $ | 39,181,373 | |||||||||||||||||
Stride Rite * | 2,363,100 | 26,395,827 | – | 10,268,677 | 2,568,919 | 201,455 | |||||||||||||||||||||||||
Tesco Corporation | 2,225,600 | 24,259,040 | 24,990 | – | – | – | 2,227,700 | 24,371,038 | |||||||||||||||||||||||
Thoratec Corporation * | 3,811,200 | 39,712,704 | – | 20,219,640 | (280,673 | ) | – | ||||||||||||||||||||||||
Topps Company (The) | 3,147,800 | 30,691,050 | – | 6,239,314 | (1,028,968 | ) | 244,221 | 2,604,616 | 26,124,298 | ||||||||||||||||||||||
Total Energy Services Trust | 2,155,700 | 12,237,911 | – | – | – | 176,999 | 2,155,700 | 17,805,815 | |||||||||||||||||||||||
Transaction Systems | |||||||||||||||||||||||||||||||
Architects Cl. A | 2,561,000 | 50,835,850 | – | – | – | – | 2,561,000 | 63,077,430 | |||||||||||||||||||||||
VIVUS | 2,845,000 | 12,660,250 | 2,788,711 | – | – | – | 3,638,300 | 13,407,136 | |||||||||||||||||||||||
1,365,445,753 | 20,881,208 | 3,009,187 | 924,455,481 | ||||||||||||||||||||||||||||
Royce Total Return Fund | |||||||||||||||||||||||||||||||
Abigail Adams National Bancorp | 199,100 | 3,844,621 | 727,568 | – | – | 49,775 | 244,400 | 3,971,500 | |||||||||||||||||||||||
Chase Corporation | 164,800 | 2,620,320 | 1,528,789 | – | – | – | 273,800 | 3,833,200 | |||||||||||||||||||||||
Delta Apparel | 204,400 | 4,956,700 | 4,764,185 | – | – | 43,402 | 763,460 | 9,871,538 | |||||||||||||||||||||||
Deswell Industries | 476,700 | 11,783,547 | 668,996 | 291,340 | 3,391 | 247,620 | 740,043 | 11,529,796 | |||||||||||||||||||||||
EnergySouth | 251,367 | 7,048,331 | 6,125,932 | 209,622 | 327 | 165,719 | 465,628 | 12,902,552 | |||||||||||||||||||||||
Fauquier Bankshares | 172,900 | 4,365,725 | 1,017,649 | – | – | 62,793 | 213,300 | 5,545,800 | |||||||||||||||||||||||
Hardinge | 482,700 | 6,516,450 | – | – | – | 28,962 | 482,700 | 6,781,935 | |||||||||||||||||||||||
Landauer | 411,800 | 18,819,260 | 3,921,287 | 972,632 | 11,852 | 391,425 | 475,400 | 24,678,014 | |||||||||||||||||||||||
Lufkin Industries * | 329,377 | 13,144,777 | 3,424,362 | 7,446,140 | 7,165,366 | 106,521 | |||||||||||||||||||||||||
Mueller (Paul) Company | 112,700 | 3,393,059 | – | – | – | 135,240 | 112,700 | 3,268,300 | |||||||||||||||||||||||
Preformed Line Products Company | 307,900 | 8,922,942 | 1,584,299 | 301,242 | 16,324 | 130,759 | 345,894 | 14,112,475 | |||||||||||||||||||||||
Quixote Corporation | 442,900 | 9,004,157 | – | – | – | 79,722 | 442,900 | 8,685,269 | |||||||||||||||||||||||
Sun Hydraulics * | 347,650 | 5,551,971 | 1,064,841 | 890,363 | 1,665,480 | 44,181 | |||||||||||||||||||||||||
99,971,860 | 8,862,740 | 1,486,119 | 105,180,379 | ||||||||||||||||||||||||||||
Royce Opportunity Fund | |||||||||||||||||||||||||||||||
Ault | 321,100 | 960,089 | – | – | – | – | 321,100 | 866,970 | |||||||||||||||||||||||
Bakers Footwear Group | 253,200 | 2,544,660 | 579,460 | – | – | – | 308,800 | 3,381,360 | |||||||||||||||||||||||
Baldwin Technology Company Cl. A | 745,300 | 2,235,900 | 77,380 | – | – | – | 773,000 | 2,396,300 | |||||||||||||||||||||||
Bell Industries | 434,100 | 1,415,166 | 19,484 | – | – | – | 442,900 | 1,014,241 | |||||||||||||||||||||||
Computer Horizons | 1,696,200 | 6,462,522 | 274,186 | 834,686 | (313,935 | ) | – | 1,617,500 | 5,062,775 | ||||||||||||||||||||||
Computer Task Group | 1,046,400 | 5,859,840 | 611,854 | – | – | – | 1,216,100 | 4,390,121 | |||||||||||||||||||||||
Evans & Sutherland Computer | 540,125 | 3,764,671 | 252,445 | – | – | – | 587,325 | 2,965,991 | |||||||||||||||||||||||
Flow International * | 831,000 | 2,484,690 | 1,295,414 | – | – | – | |||||||||||||||||||||||||
Gerber Scientific | 1,265,800 | 9,632,738 | 447,668 | 41,455 | 1,851 | – | 1,323,400 | 9,210,864 | |||||||||||||||||||||||
Hawk Corporation Cl. A | 631,800 | 5,458,752 | – | 887,507 | 728,553 | – | 487,400 | 5,702,580 | |||||||||||||||||||||||
Hurco Companies | 345,300 | 5,697,450 | 975,074 | 825,093 | 177,202 | – | 361,000 | 5,761,560 | |||||||||||||||||||||||
Interphase Corporation | 370,800 | 3,122,136 | 150,781 | – | – | – | 393,800 | 2,461,250 | |||||||||||||||||||||||
Lamson & Sessions Company | 621,500 | 5,655,650 | 932,566 | – | – | – | 717,500 | 8,480,850 | |||||||||||||||||||||||
MagneTek * | 1,398,700 | 9,651,030 | 1,099,448 | 7,640,332 | (4,881,781 | ) | – | ||||||||||||||||||||||||
Rubio’s Restaurants | 385,300 | 4,673,689 | 922,101 | 41,820 | 28,590 | – | 477,400 | 4,988,830 | |||||||||||||||||||||||
SCM Microsystems | 680,920 | 3,322,890 | 988,556 | – | – | – | 934,620 | 2,579,551 | |||||||||||||||||||||||
Sigmatron International | 124,500 | 1,686,975 | 1,039,595 | – | – | – | 210,400 | 2,236,552 | |||||||||||||||||||||||
TB Wood’s | 272,800 | 1,707,728 | – | – | – | – | 272,800 | 1,527,680 | |||||||||||||||||||||||
TRC Companies | 646,500 | 10,990,500 | 2,426,979 | – | – | – | 817,400 | 9,596,276 | |||||||||||||||||||||||
Tollgrade Communications | 543,000 | 6,646,320 | 1,858,254 | 314,705 | (103,558 | ) | – | 707,900 | 5,309,250 | ||||||||||||||||||||||
93,973,396 | (4,363,078 | ) | – | 77,933,001 | |||||||||||||||||||||||||||
Royce Special Equity Fund | |||||||||||||||||||||||||||||||
CSS Industries | 525,600 | 16,693,056 | 833,925 | – | – | 118,600 | 552,300 | 18,689,832 | |||||||||||||||||||||||
Chromcraft Revington | 320,700 | 3,944,610 | 145,108 | – | – | – | 332,500 | 4,538,625 | |||||||||||||||||||||||
Flexsteel Industries | 369,200 | 6,516,011 | – | – | – | 95,992 | 369,200 | 5,194,644 | |||||||||||||||||||||||
Frisch’s Restaurants | 297,500 | 7,089,425 | 396,920 | – | – | 68,211 | 312,600 | 7,815,000 | |||||||||||||||||||||||
Hampshire Group | 222,500 | 7,009,195 | 675,172 | – | – | – | 480,000 | 9,412,800 | |||||||||||||||||||||||
Hawkins | 515,000 | 6,097,600 | 360,508 | – | – | 95,400 | 545,000 | 6,621,750 | |||||||||||||||||||||||
Lawson Products | 431,100 | 21,740,373 | 3,297,566 | – | – | 194,364 | 505,000 | 19,604,100 | |||||||||||||||||||||||
Met-Pro Corporation | 598,400 | 7,958,720 | 466,276 | – | – | 95,875 | 632,600 | 9,596,542 | |||||||||||||||||||||||
National Dentex | 216,000 | 6,577,416 | 397,758 | – | – | – | 345,000 | 6,234,150 | |||||||||||||||||||||||
National Presto Industries | 458,000 | 20,839,000 | 2,729,614 | – | – | 818,300 | 522,500 | 23,026,575 | |||||||||||||||||||||||
Superior Uniform Group | 625,000 | 9,343,750 | 319,935 | – | – | 172,463 | 652,500 | 9,004,500 | |||||||||||||||||||||||
113,809,156 | – | 1,659,205 | 119,738,518 |
*Not an Affiliated Company at June 30, 2005. |
THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 81 |
UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited) | ||
As a shareholder of a mutual fund, you pay ongoing expenses, including management fees and other Fund expenses including, for some funds, distribution and/or service (12b-1) fees. Using the information below, you can estimate how these ongoing expenses (in dollars) affect your investment and compare them with the ongoing expenses of other funds. You may also incur one-time transaction expenses, including redemption fees, which are not shown in this section and would result in higher total costs. The example is based on an investment of $1,000 invested at January 1, 2005 and held for the entire six-month period ended June 30, 2005. Consultant and Financial Intermediary Class shares are generally available only through certain brokers or retirement plan administrators who receive distribution and/or service fees from the Fund for services that they perform. Institutional and W Class shares are generally available only to institutions or intermediaries with a minimum account size of $1 million. Actual Expenses The first part of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value at June 30, 2005 by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. | Hypothetical Example for Comparison Purposes The second part of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, this section is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. |
HYPOTHETICAL | |||||||||||||||||||||||||||||
ACTUAL | (5% per year return before expenses) | ||||||||||||||||||||||||||||
Beginning | Ending | Expenses Paid | Beginning | Ending | Expenses Paid | Annualized | |||||||||||||||||||||||
Account Value | Account Value | During the | Account Value | Account Value | During the | Expense | |||||||||||||||||||||||
1/1/05 | 6/30/05 | Period(1) | 1/1/05 | 6/30/05 | Period(1) | Ratio(2) | |||||||||||||||||||||||
Investment Class | |||||||||||||||||||||||||||||
Pennsylvania Mutual Fund | $ | 1,000.00 | $ | 1,025.60 | $ | 4.52 | $ | 1,000.00 | $ | 1,020.33 | $ | 4.51 | 0.90 | % | |||||||||||||||
Royce Micro-Cap Fund | 1,000.00 | 966.90 | 7.17 | 1,000.00 | 1,017.50 | 7.35 | 1.47 | % | |||||||||||||||||||||
Royce Premier Fund | 1,000.00 | 998.00 | 5.65 | 1,000.00 | 1,019.14 | 5.71 | 1.14 | % | |||||||||||||||||||||
Royce Low-Priced Stock Fund | 1,000.00 | 959.60 | 7.24 | 1,000.00 | 1,017.41 | 7.45 | 1.49 | % | |||||||||||||||||||||
Royce Total Return Fund | 1,000.00 | 1,014.70 | 5.69 | 1,000.00 | 1,019.14 | 5.71 | 1.14 | % | |||||||||||||||||||||
Royce TrustShares Fund(3) | 1,000.00 | 950.00 | 7.06 | 1,000.00 | 1,017.55 | 7.30 | 1.46 | % | |||||||||||||||||||||
Royce Opportunity Fund | 1,000.00 | 966.90 | 5.61 | 1,000.00 | 1,019.09 | 5.76 | 1.15 | % | |||||||||||||||||||||
Royce Special Equity Fund | 1,000.00 | 977.10 | 5.64 | 1,000.00 | 1,019.09 | 5.76 | 1.15 | % | |||||||||||||||||||||
Royce Select Fund | 1,000.00 | 972.10 | – | 1,000.00 | 1,024.79 | – | 0.00 | % | |||||||||||||||||||||
Royce Value Fund | 1,000.00 | 1,020.30 | 6.76 | 1,000.00 | 1,018.10 | 6.76 | 1.35 | % | |||||||||||||||||||||
Royce Value Plus Fund | 1,000.00 | 946.10 | 5.69 | 1,000.00 | 1,018.94 | 5.91 | 1.18 | % | |||||||||||||||||||||
Royce Technology Value Fund | 1,000.00 | 915.30 | 9.45 | 1,000.00 | 1,014.93 | 9.94 | 1.99 | % | |||||||||||||||||||||
Royce 100 Fund | 1,000.00 | 1,002.90 | 7.40 | 1,000.00 | 1,017.41 | 7.45 | 1.49 | % | |||||||||||||||||||||
Royce Discovery Fund | 1,000.00 | 985.90 | 7.34 | 1,000.00 | 1,017.41 | 7.45 | 1.49 | % | |||||||||||||||||||||
Royce Financial Services Fund | 1,000.00 | 987.60 | 7.34 | 1,000.00 | 1,017.41 | 7.45 | 1.49 | % | |||||||||||||||||||||
Royce Dividend Value Fund | 1,000.00 | 987.60 | 7.34 | 1,000.00 | 1,017.41 | 7.45 | 1.49 | % | |||||||||||||||||||||
Consultant Class | |||||||||||||||||||||||||||||
Pennsylvania Mutual Fund | 1,000.00 | 1,020.50 | 9.42 | 1,000.00 | 1,015.47 | 9.39 | 1.88 | % | |||||||||||||||||||||
Royce Micro-Cap Fund | 1,000.00 | 961.80 | 12.01 | 1,000.00 | 1,012.55 | 12.33 | 2.47 | % | |||||||||||||||||||||
Royce Premier Fund | 1,000.00 | 993.20 | 10.87 | 1,000.00 | 1,013.88 | 10.99 | 2.20 | % | |||||||||||||||||||||
Royce Total Return Fund | 1,000.00 | 1,010.60 | 10.52 | 1,000.00 | 1,014.33 | 10.54 | 2.11 | % | |||||||||||||||||||||
Royce TrustShares Fund(3) | 1,000.00 | 945.10 | 12.01 | 1,000.00 | 1,012.45 | 12.42 | 2.49 | % | |||||||||||||||||||||
Royce Special Equity Fund | 1,000.00 | 971.20 | 11.00 | 1,000.00 | 1,013.64 | 11.23 | 2.25 | % |
82 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 |
UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited) (CONTINUED) |
HYPOTHETICAL | |||||||||||||||||||||||||||||
ACTUAL | (5% per year return before expenses) | ||||||||||||||||||||||||||||
Beginning | Ending | Expenses Paid | Beginning | Ending | Expenses Paid | Annualized | |||||||||||||||||||||||
Account Value | Account Value | During the | Account Value | Account Value | During the | Expense | |||||||||||||||||||||||
1/1/05 | 6/30/05 | Period(1) | 1/1/05 | 6/30/05 | Period(1) | Ratio(2) | |||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||
Royce Micro-Cap Fund | $ | 1,000.00 | $ | 967.00 | $ | 6.58 | $ | 1,000.00 | $ | 1,018.10 | $ | 6.76 | 1.35 | % | |||||||||||||||
Royce Premier Fund | 1,000.00 | 998.00 | 5.10 | 1,000.00 | 1,019.69 | 5.16 | 1.03 | % | |||||||||||||||||||||
Royce Total Return Fund | 1,000.00 | 1,015.50 | 5.05 | 1,000.00 | 1,019.79 | 5.06 | 1.01 | % | |||||||||||||||||||||
Royce Opportunity Fund | 1,000.00 | 967.80 | 5.07 | 1,000.00 | 1,019.64 | 5.21 | 1.04 | % | |||||||||||||||||||||
Royce Special Equity Fund | 1,000.00 | 977.50 | 5.20 | 1,000.00 | 1,019.54 | 5.31 | 1.06 | % | |||||||||||||||||||||
Financial Intermediary Class | |||||||||||||||||||||||||||||
Royce Micro-Cap Fund | 1,000.00 | 966.20 | 7.26 | 1,000.00 | 1,017.41 | 7.45 | 1.49 | % | |||||||||||||||||||||
Royce Premier Fund | 1,000.00 | 997.30 | 6.39 | 1,000.00 | 1,018.40 | 6.46 | 1.29 | % | |||||||||||||||||||||
Royce Total Return Fund | 1,000.00 | 1,014.90 | 6.44 | 1,000.00 | 1,018.40 | 6.46 | 1.29 | % | |||||||||||||||||||||
Royce Opportunity Fund | 1,000.00 | 966.60 | 6.29 | 1,000.00 | 1,018.40 | 6.46 | 1.29 | % | |||||||||||||||||||||
Royce Special Equity Fund | 1,000.00 | 976.00 | 6.61 | 1,000.00 | 1,018.10 | 6.76 | 1.35 | % | |||||||||||||||||||||
W Class | |||||||||||||||||||||||||||||
Royce Premier Fund | 1,000.00 | 1,050.10 | 5.03 | 1,000.00 | 1,019.89 | 4.96 | 0.99 | % | |||||||||||||||||||||
Royce Total Return Fund | 1,000.00 | 1,038.50 | 5.10 | 1,000.00 | 1,019.79 | 5.06 | 1.01 | % | |||||||||||||||||||||
(1) | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value for the period, multiplied by 181 days in the most recent fiscal half year divided by 365 days (to reflect the half year period). | |
(2) | Annualized expense ratio used to derive figures in the table based on the most recent fiscal half year. | |
(3) | GiftShare accounts pay an annual $50 trustee fee to State Street Bank, NA, as trustee. If these fees were included above, your costs would be higher. |
THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 83
NOTES TO PERFOMANCE AND OTHER IMPORTANT INFORMATION |
The thoughts expressed in this report concerning recent market movements and future prospects for small company stocks are solely the opinion of Royce at June 30, 2005, and, of course, historical market trends are not necessarily indicative of future market movements. Statements regarding the future prospects for particular securities held in the Funds’ portfolios and Royce’s investment intentions with respect to those securities reflect Royce’s opinions as of June 30, 2005 and are subject to change at any time without notice. There can be no assurance that securities mentioned in this report will be included in any Royce-managed portfolio in the future.
The Russell 2000, Russell 2000 Value, Russell 2000 Growth, Russell 2500, Nasdaq Composite and S&P 500 are unmanaged indices of domestic common stocks. Returns for the market indices used in this report were based on information supplied to Royce by Frank Russell. Royce has not independently verified the above described information. The Royce Funds is a service mark of The Royce Funds. Distributor: Royce Fund Services, Inc.
The Funds invest primarily in securities of mid-, small- and/or micro-cap companies, that may involve considerably more risk than investments in securities of larger-cap companies (see “Primary Risks for Fund Investors” in the prospectus). Please read the prospectus carefully before investing or sending money. A copy of the Funds’ current prospectus and Statement of Additional Information may be obtained by calling 1-800-221-4268, or by visiting www.roycefunds.com. All publicly released material information is always disclosed by the Funds on their website at www.roycefunds.com.
Forward-Looking Statements
This material contains forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that involve risks and uncertainties, including, among others, statements as to:
• | the Funds’ future operating results |
• | the prospects of the Funds’ portfolio companies |
• | the impact of investments that the Funds have made or may make |
• | the dependence of the Funds’ future success on the general economy and its impact on the companies and industries in which the Funds |
invest, and | |
• | the ability of the Funds’ portfolio companies to achieve their objectives. |
This report uses words such as “anticipates,” “believes,” “expects, ” “future,” “intends,” and similar expressions to identify forward-looking statements. Actual results may differ materially from those projected in the forward looking statements for any reason.
The Royce Funds have based the forward-looking statements included in this report on information available to us on the date of the report, and we assume no obligation to update any such forward-looking statements. Although The Royce Funds undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make through future shareholder communications or reports.
Proxy Voting | ||
A copy of the policies and procedures that The Royce Funds use to determine how to vote proxies relating to portfolio securities and information regarding how each of The Royce Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available, without charge on The Royce Funds’ website at www.roycefunds.com, by calling 1-800-221-4268 (toll-free) and on the website of the Securities and Exchange Commission (“SEC”), at www.sec.gov. | ||
Form N-Q Filing | ||
The Funds file their complete schedules of investments with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on The Royce Funds’ website at www.roycefunds.com and on the SEC’s website at www.sec.gov. The Funds’ Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. To find out more about this public service, call the SEC at 1-202-942-8090. The Funds’ complete schedules of investments are updated quarterly, and are available at www.roycefunds.com. |
84 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005 |
BOARD APPROVAL OF INVESTMENT ADVISORY AGREEMENTS |
At meetings held on June 20-21, 2005, The Royce Fund’s Board of Trustees, including all of the non-interested trustees, approved the continuance of the Investment Advisory Agreements between Royce & Associates, LLC (“R&A”) and each of Pennsylvania Mutual Fund, Royce Micro-Cap Fund, Royce Premier Fund, Royce Low-Priced Stock Fund, Royce Total Return Fund, Royce TrustShares Fund, Royce Opportunity Fund, Royce Special Equity Fund, Royce Select Fund, Royce Value Fund, Royce Value Plus Fund, Royce Technology Value Fund, Royce 100 Fund, Royce Discovery Fund, Royce Financial Services Fund and Royce Dividend Value Fund (the “Funds”) and the Investment Sub-Advisory Agreement with JHC Capital Management, LLC (“JHC Capital”) relating to Royce Technology Value Fund (“RTV”). In reaching these decisions, the Board reviewed the materials provided by R&A, which included, among other things, information prepared internally by R&A and independently by Morningstar Associates, LLC (“Morningstar”) containing detailed expense ratio and investment performance comparisons for each of the Funds with other mutual funds in their “peer group”, information regarding the past performance of Funds managed by R&A and a memorandum outlining the legal duties of the Board prepared by independent counsel to the non-interested trustees. R&A also provided the trustees with an analysis of its profitability with respect to providing investment advisory services to each of the Funds. The Board also reviewed information provided by JHC Capital regarding RTV. In addition, the Board took into account information furnished throughout the year at regular Board meetings, including reports on investment performance, shareholder services, distribution fees and expenses, regulatory compliance, brokerage commissions and research, brokerage and execution products and services provided to the Funds. The Board also considered other matters it deemed important to the approval process such as payments made to R&A or its affiliates relating to distribution of Fund shares, allocation of Fund brokerage fees, and other direct and indirect benefits to R&A and its affiliates, from their relationship with the Funds. The trustees also met throughout the year with investment advisory personnel from R&A and JHC Capital. The Board, in its deliberations, recognized that, for many of the Funds’ shareholders, the decision to purchase Fund shares included a decision to select R&A as the investment adviser and that there was a strong association in the minds of Fund shareholders between R&A and each Fund. In considering factors relating to the approval of the continuance of the Investment Advisory Agreements and the Investment Sub-Advisory Agreement, the non-interested trustees received assistance and advice from, and met separately with, their independent counsel. While the Investment Advisory Agreements for the Funds and Investment Sub-Advisory Agreement for RTV were considered at the same Board meetings, the trustees dealt with each agreement separately. Among other factors, the trustees considered the following:
The nature, extent and quality of services provided by R&A: The trustees considered the following factors to be of fundamental importance to their consideration of whether to approve the continuance of the Funds’ Investment Advisory Agreements: (i) R&A’s more than 30 years of small-cap value investing experience and track record; (ii) the history of long-tenured R&A portfolio managers managing many of the Funds; (iii) R&A’s sole focus on mid-cap, small-cap and micro-cap value investing; (iv) the consistency of R&A’s approach to managing the Funds’ over more than 30 years; (v) the integrity and high ethical standards adhered to at R&A; (vi) R&A’s specialized experience in the area of trading small- and micro-cap securities; (vii) R&A’s historical ability to attract and retain portfolio management talent and (viii) R&A’s focus on shareholder interests as exemplified by capping expenses on smaller funds, closing funds to new investors when R&A believed such closings were in the best interests of shareholders, establishing breakpoints for a number of funds and providing expansive shareholder reporting and communications. The trustees reviewed the services that R&A provides to the Funds, including, but not limited to, managing each Fund’s investments in accordance with the stated policies of each Fund. The trustees determined that the services to be provided to each Fund by R&A would be the same as those it previously provided to the Funds. They also took into consideration the histories, reputations and backgrounds of R&A’s portfolio managers for the Funds, finding that these would likely have an impact on the continued success of the Funds. Lastly, the trustees noted R&A’s ability to attract quality and experienced personnel. The trustees concluded that the services provided by R&A to each Fund compared favorably to services provided by R&A to other R&A client accounts, including other funds, in both nature and quality, and that the scope of services provided by R &A would continue to be suitable for each Fund. The trustees considered similar factors concerning JHC Capital and concluded that the scope of services provided by JHC Capital would be suitable for RTV.
Investment performance of the Funds and R&A: In light of R&A’s risk-averse approach to investing, the trustees believe that risk-adjusted performance continues to be an appropriate measure of each Fund’s investment performance. One measure of risk-adjusted performance the trustees have historically used in their review of the Funds’ performance is the Sharpe Ratio. The Sharpe Ratio is a risk-adjusted measure of
THE ROYCE FUNDS SEMIANNUAL REPORT 2005 | 85
BOARD APPROVAL OF INVESTMENT ADVISORY AGREEMENTS (CONT.) |
performance developed by Nobel Laureate William Sharpe. It is calculated by dividing a fund’s annualized excess return by its annualized standard deviation to determine reward per unit of risk. The higher the Sharpe Ratio, the better a fund’s historical risk-adjusted performance. The Board attaches primary importance to risk-adjusted performance over relatively long periods of time, typically three to five years. Except as described below, all of the Funds fell in the 1st or 2nd quartiles within their small-cap universe categories for the three and five-year periods ended December 31, 2004. Royce Opportunity Fund (“ROF”) placed in the 4th quartile for the three and five-year periods within Morningstar’s small value category. However, if Morningstar had used the small blend category for its peer comparison (ROF is currently in Morningstar’s small blend investment style box), ROF would place in the 2nd quartile for each period (its three and five-year Sharpe Ratios are almost identical to those of Royce Micro-Cap Fund). Royce Low-Priced Stock Fund (“RLP”) placed in the 4th quartile for the three-year period within its small blend category and approximately at the median within the small-cap fund universe, as its volatility (standard deviation) for the three-year period was higher than R&A would have expected. Its five-year results are in the 2nd quartile of both its category and the small-cap universe. Royce TrustShares Fund fell in the 3rd quartile for the three and five-year periods within its small blend category and approximately at the median within the small-cap universe. In addition to the Funds’ risk-adjusted performance the trustees also reviewed and considered each Funds’ absolute total returns, down-market performance and, for the Funds in existence for such periods, long-term performance records over periods of ten years or longer.
The trustees noted that R&A manages a number of funds that invest in small-cap and micro-cap issuers, many of which were outperforming the Russell 2000 Index and their competitors. Although the trustees recognized that past performance is not necessarily an indicator of future results, they found that R&A had the necessary qualifications, experience and track record in managing small-cap and micro-cap securities to manage the Funds. The trustees determined that R&A continued to be an appropriate investment adviser for the Funds and concluded that each Fund’s performance supported the renewal of its Investment Advisory Agreement. The trustees reached similar conclusions for JHC Capital regarding the Investment Sub-Advisory Agreement for RTV.
Cost of the services provided and profits realized by R &A from its relationship with each Fund: The trustees considered the cost of the services provided by R&A and profits realized by R&A from its relationship with each Fund. As part of the analysis, the Board discussed with R&A its methodology in allocating its costs to each Fund and concluded that its allocations were reasonable. The trustees noted that at times R&A had closed certain of the Funds to new investors because of the rate of growth in Fund assets. The trustees concluded that R&A’s profits were reasonable in relation to the nature and quality of services provided. The trustees also received information on the costs of the services provided and profits realized by JHC Capital with respect to RTV and concluded that JHC Capital’s profits were reasonable in relation to the nature and quality of services provided.
The extent to which economies of scale would be realized as the Funds grow and whether fee levels would reflect such economies of sale: The trustees considered whether there have been economies of scale in respect of the management of the Funds, whether the Funds have appropriately benefited from any economies of scale and whether there is potential for realization of any further economies of scale. The trustees noted the time and effort involved in managing portfolios of small- and micro-cap stocks and that they did not involve the same efficiencies as do portfolios of large cap stocks. The trustees noted that in 2004 breakpoints had been added to the investment advisory fees for all Funds except Pennsylvania Mutual Fund (“PMF”) and Royce Select Funds (“RSF”) (PMF’s fee schedule already had breakpoints and RSF charges an all-inclusive performance fee) and that the contractual investment advisory fee rate for Royce Micro-Cap Fund and Royce Low-Priced Stock Fund had been reduced. The trustees concluded that the current fee structure for each Fund was reasonable, and that no changes were currently necessary.
Comparison of services to be rendered and fees to be paid to those under other investment advisory contracts, such as contracts of the same and other investment advisers or other clients: The trustees reviewed the investment advisory fee paid by each Fund and compared both the services to be rendered and the fees to be paid under the Investment Advisory Agreements to other contracts of R&A and to contracts of other investment advisers to registered investment companies investing in small- and micro-cap stocks, as provided by Morningstar. The trustees noted the importance of the net expense ratio in measuring a fund’s efficiency, particularly in light of the variations in the mutual fund industry as to who is responsible for which expenses. Except as described below, the net expense ratios for the Funds ranked within the 1st and 2nd quartile among their peers, as selected by Morningstar. It was noted that RLP’s net expense ratio was in the 4th quartile of the Morningstar peer group, but excluding distribution fees for RLP and other funds in the peer group, and giving effect to the breakpoints in
86 | THE ROYCE FUNDS SEMIANNUAL REPORT 2005
BOARD APPROVAL OF INVESTMENT ADVISORY AGREEMENTS (CONT.) |
the investment advisory fee that went into effect in 2004 (Morningstar did not reflect this), RLP’s expense ratio is virtually equal to its Morningstar peer group average. Royce Select Fund (“RSF”) also had a net expense ratio in the 4th quartile of the Morningstar peer group, but the trustees noted that due to the unique nature of RSF’s expense structure, direct comparisons to other funds were not helpful. RSF pays an all-inclusive management fee equal to 12.5% of its pre-fee total return, measured using a high watermark test. It was noted that this methodology led to an expense ratio in the 1st quartile in 2002, and that RSF’s high watermark return in 2004 led to a high expense ratio that is not appropriate for peer analysis. It was noted that Royce TrustShares’ net expense ratio was in the 3rd quartile of its Morningstar peers due in large part to its small asset base, and that it should benefit to the extent assets grow. RTV’s expense ratio placed it in the 4th quartile of its Morningstar peers, but it was noted that RTV’s investment approach is significantly different from most of the funds in the Morningstar technology category, which invest in stocks having much larger market capitalizations. The trustees noted that the level of research necessary for a small-cap oriented bottom-up approach, as used by JHC Capital for RTV, is greater than necessary for larger-cap stocks. Royce Value Fund’s net expense ratio placed it in the 3rd quartile of the Morningstar peers due to its relatively low level of average net assets, and it was noted that R&A has capped the expenses of this Fund since its inception.
The trustees noted that R&A has waived advisory fees in order to maintain expense ratios at competitive levels and acknowledged R&A’s intention to continue this expense limitation practice. The trustees also considered fees charged by R&A to institutional and other clients and noted that the Funds’ advisory fees compared favorably to these other accounts.
After the non-interested trustees deliberated in executive session, the entire Board, including all the non-interested trustees, approved the renewal of the existing Investment Advisory Agreements and the Investment Sub-Advisory Agreement, concluding that a contract renewal on the existing terms was in the best interest of the shareholders of each Fund and that each investment advisory fee rate was reasonable in relation to the services provided.
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TheRoyceFunds Wealth Of Experience With approximately $20.6 billion in open- and closed-end fund assets under management, Royce & Associates is committed to the same small-company investing principles that have served us well for more than 30 years. Charles M. Royce, our Chief Investment Officer, enjoys one of the longest tenures of any active mutual fund manager. Royce’s investment staff includes six other Portfolio Managers, as well as eight assistant portfolio managers and analysts, and six traders. Multiple Funds, Common Focus Our goal is to offer both individual and institutional investors the best available small-cap value portfolios. Unlike a lot of mutual fund groups with broad product offerings, we have chosen to concentrate on small-company value investing by providing investors with a range of funds that take full advantage of this large and diverse sector. Consistent Discipline Our approach emphasizes paying close attention to risk and maintaining the same discipline, regardless of market movements and trends. The price we pay for a security must be significantly below our appraisal of its current worth. This requires a thorough analysis of the financial and business dynamics of an enterprise, as though we were purchasing the entire company. Co-Ownership Of Funds It is important that our employees and shareholders share a common financial goal; our officers, employees and their families currently have approximately $87 million invested in The Royce Funds.
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General Information Additional Report Copies and Prospectus Inquiries (800) 221-4268 Shareholder Services (800) 841-1180 Automated Telephone Services (800) 78-ROYCE (787-6923) | Advisor Services For Fund Materials, Performance Updates, Transactions or Account Inquiries (800) 33-ROYCE (337-6923) Broker/Dealer Services For Fund Materials and Performance Updates (800) 59-ROYCE (597-6923) | |||||
www.roycefunds.com | ||||||
This report must be accompanied or preceded by a current prospectus for the Funds. Please read the prospectus carefully before investing or sending money. | ||||||
OE-RPT-0605 |
Item 2: Code(s) of Ethics – Not applicable to this semi-annual report.
Item 3: Audit Committee Financial Expert – Not applicable to this semi-annual report.
Item 4: Principal Accountant Fees and Services – Not applicable to this semi-annual report.
Item 5: Not Applicable.
Item 6: Schedule of Investments – See Item 1.
Item 7: Not applicable.
Item 8: Not Applicable.
Item 9: Submission of Matters to a Vote of Security Holders – None.
Item 10: Controls and Procedures.
(a) Disclosure Controls and Procedures. The Principal Executive and Financial Officers concluded that, based on their evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report, the Registrant’s Disclosure Controls and Procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the Registrant’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.
(b) Internal Control over Financial Reporting. There were no significant changes in Registrant’s internal control over financial reporting or in other factors that could significantly affect this control subsequent to the date of the evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
Item 11: Exhibits attached hereto.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
THE ROYCE FUND
BY: | /s/ Charles M. Royce |
Charles M. Royce | |
President |
Date: August 23, 2005 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
THE ROYCE FUND | THE ROYCE FUND |
BY: | /s/ Charles M. Royce | BY: | John D. Diederich | |
Charles M. Royce | John D. Diederich | |||
President | Chief Financial Officer | |||
Date: August 23, 2005 | Date: August 23, 2005 |