Royce Small-Cap Total Return Fund FY 2025: What Worked... And What Didn't

The Royce Funds120 FollowersFollow5ShareSavePlay(13min)CommentsSummaryThree of the portfolio’s 10 equity sectors made positive contributions to calendar-year period performance: Health Care and Financials led by wide margins, followed by Information Technology.PACS Group reported stronger-than-expected fiscal 2024 and year-to-date fiscal 2025 results in November of 2025, signaling that its acquisition and operating models remained on track.FTAI shares significantly outperformed in 2025 due to robust demand for passenger flights and from strengthening its moat by acquiring a new repair facility in Rome.Healthcare Services Group reported the company’s best quarterly revenue and cash flow performance in five years, and, most importantly, saw significant growth within the housekeeping segment.Vestis Corporation was the top detractor after reporting significantly lower 2Q25 results, pulling its guidance for the full year 2025, and providing weak guidance for the third quarter. Tippapatt/iStock via Getty Images The following segment was excerpted from the Royce Small-Cap Total Return Fund FY 2025 Commentary. What Worked… and What Didn’t Three of the portfolio’s 10 equity sectors made positive contributions to calendar-year period performance: Health CareThis article was written byThe Royce Funds120 FollowersFollowThe Royce Funds is a small-cap specialist with unparalleled knowledge and experience, offering distinct investment approaches to meet a variety of investors’ goals.