At the same time, the fund would not invest in securities listed on the Australian Securities Exchange (ASX).
“Small cap stocks have historically outperformed large caps over the long term and have often done particularly well when economies are expanding,” Royce Investment Partners founder, Chuck Royce, said.
“In the last year or so, the short but deep recession was followed by massive fiscal spending and extraordinary monetary accommodation. Based on our experience as small-cap specialists, we think it made sense that these developments led to the sort of strong move in small caps we’ve seen since the US market trough in March 2020.