Abstract: An axial fan is disclosed that includes a hub supported for rotation around the longitudinal axis of the fan, a plurality of impeller blades attached to the hub and extending radially from the axis of rotation, a shroud assembly including a band encircling the blades and spaced from the tips of the blades a sufficient distance to provide ample clearance to avoid contact between the blades and the band during shipment and operation of the fan, the shroud further including an orifice positioned upstream of the blades for preventing air from flowing between the orifice and the band, the orifice having a downstream end located adjacent to but spaced from the impeller blades and having a diameter such that the impeller blades extend outwardly from the hub beyond the orifice so that the flow of air over the tips of the impeller blades is substantially reduced, which increases the efficiency of the fan.