The sectors making the largest positive contributions were Industrials, Information Technology, and Financials while the largest negative impacts came from Materials, Consumer Discretionary, and Energy.
Royce SMid-Cap Total Return Fund was up 4.0% in 2025 versus a gain of 11.9% for its benchmark, Russell 2500 Index, for the same period. Relative results over longer periods were better
The Royce Funds is a small-cap specialist with unparalleled knowledge and experience, offering distinct investment approaches to meet a variety of investors' goals.
FTAI benefited from robust engine maintenance demand, cost advantages, expansion of its SCI program, and new initiatives converting CFM-56 engines for industrial use.
AER enjoys strong demand for aircraft and engines, expects favorable conditions to continue, and plans $1.3 billion in share repurchases through 2026, supporting undervaluation and capital allocation.
I anticipate a regime shift favoring quality value SMid-caps as economic growth accelerates, with earnings growth expected to outpace large-caps and market leadership broadening.
