Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Yes, the fund family that cannot remain still is on the move again. On June 15, two international funds will be renamed, and another fund will transition to a global mandate requiring a name change: Royce Financial Services Fund will be renamed Royce Global Financial Services Fund. May invest up to 50% of assets in foreign securities. Royce European Smaller-Companies Fund will be renamed Royce European Small-Cap Fund. Royce International Smaller-Companies Fund will be renamed Royce International Small-Cap Fund. New non-fundamental investment policy for each requiring at least 80% of iassets in stocks with mkt caps up to $3B.
“As was the case with a prior round of name changes in May, we believe these new names will help to distinguish each Fund’s approach within our lineup,” says Chris Clark, Royce Prez. [my emphasis] Oh, o.k.
Royce is another company, like Waddell & Reed, with an awful record since start of current bull market. Of its 18 existing funds that have been around since March 2009, 15 have trailed its peers on an absolute return basis ... some by massive amounts. Here's list:
Nearly half of its funds are on the Three Alarm list, month ending May 2015.
I love this line: we believe these new names will help to distinguish each Fund’s approach within our lineup
Shame they didn't do that from the start, huh ? Wonder why there's confusion about their line-up anyway...because they just churn out copy-cat, flavor of the month, widget funds all the time.
LM is really leading Chuck's old firm down the garden path. What a shambles. Looks like Whitney George got out just in time. Maybe when they push Charlie Dreifus or Buzz Zaino to mange 3 more funds, they'll up and leave as well. More than likely those funds will have been run by their celeb managers in name only long before that, however...
What a three-card-Monte / AUM-greedsters they've become. Nice legacy, Chuck. What's the culture really like at Royce? LM banging on the door all the time asking for their money. "Where's my money, man ?!? I want my money !!".
Ya see, 'cause Royce European Smaller Companies (RISCX) could easily be mistaken for a fund that invests in kumquats, Chinese real estate, or three person Greek start-ups with $20 billion market caps (hey! it could happen) or huge companies that simply aren't mega-massive huge. Calling it Royce European Small Cap relieves all of those concerns.
With nine of Royce's 22 funds firmly in the "financially unsustainable" range ($75 million or less after 3-10 years in operation), something needs to change. I'm not sure it's always the name. RISCX been around nine years and has drawn $22 million. Odd that no comparable clarification is forthcoming for the $900 million Smaller-Companies Growth Fund (RYVPX).
All those funds bring in the big bucks. The NY times reported in 2010 that Royce had purchased many properties in my birthplace, Westerly, RI. Locals could not understand why. Mr Royce apparently summered in nearby Watch Hill, where summer "cottages" are now featured in Friday's WSJ outlandish real estate ads at prices that compete with the Hamptons. Nice work if you can get it. Sold out of my Royce funds when things started to go sour.
Comments
Nearly half of its funds are on the Three Alarm list, month ending May 2015.
Shame they didn't do that from the start, huh ? Wonder why there's confusion about their line-up anyway...because they just churn out copy-cat, flavor of the month, widget funds all the time.
LM is really leading Chuck's old firm down the garden path. What a shambles. Looks like Whitney George got out just in time. Maybe when they push Charlie Dreifus or Buzz Zaino to mange 3 more funds, they'll up and leave as well. More than likely those funds will have been run by their celeb managers in name only long before that, however...
What a three-card-Monte / AUM-greedsters they've become. Nice legacy, Chuck. What's the culture really like at Royce? LM banging on the door all the time asking for their money. "Where's my money, man ?!? I want my money !!".
With nine of Royce's 22 funds firmly in the "financially unsustainable" range ($75 million or less after 3-10 years in operation), something needs to change. I'm not sure it's always the name. RISCX been around nine years and has drawn $22 million. Odd that no comparable clarification is forthcoming for the $900 million Smaller-Companies Growth Fund (RYVPX).
David