Royce Discovery Fund change is not an attempt to alter fund's nature

By Aleesia Forni

Columbus, Ohio, Dec. 6 - Royce Discovery Fund has upped the percentage of its net assets that it may invest in foreign securities to 25% from the original 10%, which is a result of a change to Royce Fund's categorization of companies that are considered foreign.

"Previously, we were looking at it from an exchange basis, and we cut over to where the company was domiciled," the fund's portfolio manager, George Necakov, told Prospect News.

"That's how we wound up with the 10% to begin with," Necakov said.

Necakov added that the new percentage level was not an attempt to "change the nature of the fund."

"We did up the percentage, but we're not looking to go out there and invest 25% of the fund [in foreign securities]," Necakov said.

"We were allowed to have 10% foreign, and what was happening was we were coming up against that hurdle so often, and we didn't want to bus trades just because we were at that cusp."

Many of the firm's other funds allow 25% of their net assets in foreign securities, so the change allows the Royce Discovery Fund to fall "in line with the rest of our firm."

This change in the fund is effective Dec. 6.

The Royce Funds are based in Kansas City, Mo.

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