Legg Mason IF Royce US Smaller Companies X

  • 263.80p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • -
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.75%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 0.98%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 0.40%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 27 July 2021, fund data last updated 23 December 2014

The fund targets capital growth by investing in securities of smaller US companies. Legg Mason outsource the management of this fund to a subsidiary company, Royce & Associates, based in New York, who have managed funds of small and microcap stocks since the 1970s. The style targets "quality" companies defined as those with sustainable growth records, a high return on capital, generate free cash flow, with low levels of leverage and run by experienced executives. Such companies are bought when they are out of favour, trading below the investment team’s assessment of their current worth and with a market cap of between US$500m to US$5bn.

Fund summary

Sector North American Smaller Cos
Structure OEIC
Launched
Size £258m
Yield 0.40%
Charging basis Income
Dividends paid Acc units only

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.98%

Allocation

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Investment process

This fund is benchmarked for reference purposes only against the Russell 2000 index, however, the style bias of this fund implies that performance characteristics will vary considerably on occasions. The fund focuses on US companies with a market cap less than US$5bn, though stocks may continue to be held once they grow above this. Approximately 15% of the portfolio is likely to be in micro-cap companies of below US$1bn; it will also hold some equities that have crossed over to the mid cap sector as a result of good performance. Stock selection initially targets quality business models that exhibit a high return on capital, generate free cash flow and have low levels of leverage. Royce buys these companies whilst they are depressed either due to a quarterly earnings estimate being missed or the industry itself being out of favour and when they trade at 30-50% discount to Royce's estimate of their worth. In the past, stock turnover has been in the region of 25%.

Manager research

Average monthly relative returns

  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 0.00%
  • 20/21 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Track record

Periods of worst performance

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Relative 0.00% ()

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Sector breakdown

Industrials 33.00%
Information Technology 22.00%
Financials 10.00%
Consumer Discretionary 10.00%
Health Care 7.00%
Consumer Staples 4.00%
Materials 4.00%
Real Estate 3.00%
Energy 3.00%
Others 3.00%

Portfolio

As at 30/11/14: 76 stocks, 7% cash, weighted average market cap £3bn. Large caps (>$5bn) 15%; Mid caps ($2.5bn-$5bn) 30%; small caps ($1bn-$2.5bn) 40%; micro caps (<$1bn) 15%. Average 1-year forward PE = 15x.

Key Investor Information

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