Royce International Smaller-Companies RYGSX Service Class Fund

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Another alternative investment strategy is investing in small /mid cap international stock fund. As we know, international stock funds don’t have a straight correlation to domestic stock funds. These international stock funds also have outperformed some of the domestic stock funds. These funds can also be useful for portfolio diversification. One of the best rated international stock funds is listed below. More of top fund review can be found in my MEPB Financial website.

Royce International Smaller-Companies Service Class (MUTF: RYGSX)

The Royce International Smaller-Companies fund’s objective is to seek long-term growth of capital. The fund invests >80% of assets in the equity securities of companies with market capitalizations up to $5 billion at the time of investment. The fund also typically invests majority of assets (>65%) in the equity securities of international companies domiciled in >3 different countries. The fund invests <35% of assets in the securities of companies domiciled in developing countries. Generally, developing countries include every country in the world other than the United States, Japan, Western European countries, Canada, Australia, New Zealand, Hong Kong, Singapore, South Korea, Taiwan, etc.

RYGSX Fund Details
Royce International Smaller Companies
  • Fund Inception Date: June 30, 2008
  • Ticker Symbol: RYGSX (Service Class)
  • CUSIP: 780905139
  • Beta (3yr): 0.96
  • Rank in category (YTD): 76
  • Category: Foreign Small/ Mid Value
  • Distribution: 0.75%
  • Net Assets: $ 22.01 million
  • Sales Load: 0%
  • Expense Ratio: 1.69%
  • Capital Gains: N/A
  • Number of Years Up: 2 years
  • Number of Years Down: 0 years
Updated on 10/1/2011

This top rated stock fund is managed by David M. Nandel since May 2009.  This fund was introduced to public in June 2008. The minimum initial investment for brokerage account is $2,000 with $50 minimum subsequent investment. If you are interested to invest in this top rated international stock fund, there is 0.25% 12b1 fee but no sales-load fee. This Royce fund currently has 0.75% dividend yield. The expense ratio of this fund is 1.69% per year. This expense ratio is bit higher than the average in the category which is 1.51%.

Even though this is considered as a new fund, but this fund has received 5-stars rating from Morningstar for its performance. The YTD return of this Royce Fund is 1.40%. Based on load adjusted return, this best international fund has returned 24.66% over the past year and 10.30% over the past three years. The performance of this fund since its inception is as below:
  • Year 2010: 26.45%
  • Year 2009: 50.13%
The three year beta of this fund is 0.96. This means it has less volatility than the fund's index benchmark.

You can buy this RYGSX mutual fund from 34 brokerages currently, such as Schwab Retail, JP Morgan, Vanguard NTF, Fidelity Retail Funds network, TIAA-Cref NTF, TD Ameritrade Institutional, etc. There is no other class of this fund besides this Service Class (RYGSX). The benchmarks of this fund are Russell Global ex-US Small Cap and MSCI World ex USA Small Core. If you are interested in the fund details, you can check the fund's website.

As of June 2011, the top 10 holdings of this fund out of total 155 holdings are Semperit AG Holding (1.7%), USS (1.6%), Pfeiffer Vacuum Technology (1.6%), Ashmore Group (1.5%), Santen Pharmaceutical (1.4%), Mayr-Melnhof Karton (1.4%), Value Partners Group (1.3%), SMA Solar Technology (1.3%), FamilyMart (1.3%) and Lamprell (1.3%). The top five portfolio sector breakdowns of this Royce fund are Consumer Discretionary, Healthcare, Financials, Materials and Industrials.

Disclosure: No Position

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