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Matthias Knab, Opalesque:

Royce Funds writes on Harvest Exchange:

Francis Gannon: Chuck, we saw major reversals in the market in 2016, really the rotation from growth to value. That changed in the first quarter of this year, where growth outperformed value. Do you think the major reversal that we saw, the value outperformed period of last year, is that it for value?

Chuck Royce: Absolutely not. I think value will persist for many years, on and off with pauses. This was a pause. It's a pause that I think will run its course primarily because the return to growth implies rates being much lower than they are, and I don't think that's going to happen at all. So, I think considering that we are returning to normal rates, value has a much, much longer way to go.

FG: What are your thoughts about the more normalized environment we're coming into?

CR: For me, the normalization of rates is the key to why active managers are doing better, why value is doing better. The normalization process started quite a while ago. I do believe the normalization is very real, very important, and we can now start worrying about many other much more important things, earnings process, fiscal policy, et cetera.

FG: Well, let's talk a little bit more about that, because I think one of the clear things we have heard since the el......................

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