• Royce Micro-Cap Discovery Fund (RYDFX)

    Service Class
    Category: MICRO-CAP

    1. Open to New Investors

      NAV as of 5/16/2012  $5.01
      Daily NAV change  -$0.05 (-0.99%)

      1. Management Team

        Portfolio Managers

        George Necakov
        James J. Harvey

        Assistant Portfolio Manager

        Charles M. Royce

        Top 10 Positions
        as of Quarter-End 3/31/2012
        as of Month-End 4/30/2012
        % of Net Assets (Subject to Change)

        Integrated Silicon Solution 1.9%
        Metropolitan Health Networks 1.7%
        Matrix Service 1.5%
        Universal Stainless & Alloy Products 1.5%
        VAALCO Energy 1.4%
        Hi-Tech Pharmacal 1.4%
        DDi Corporation 1.3%
        Shoe Carnival 1.3%
        Kulicke & Soffa Industries 1.3%
        Super Micro Computer 1.3%
        Top 10 as % of Total 14.8%

        Relative Risk Spectrum

        Risk Assessment

        go View the complete spectrum

        Literature & Research

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      2. Royce Micro-Cap Discovery Fund (RDF) seeks long-term growth of capital. Royce invests the Fund's assets primarily in a broadly diversified portfolio of micro-cap companies, those with market capitalizations up to $750 million. Royce selects securities identified by a proprietary quantitative investment model that implements a value approach. These candidates are then evaluated by the Fund's portfolio managers using both quantitative and qualitative analysis that is focused on balance sheet quality, cash flow levels and various measures of a company’s profitability. We believe that investors in the Fund should have a long-term investment horizon of at least three years.

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        Average Annual Total Returns
        as of Quarter-End 3/31/12 as of Month-End 4/30/12

          1Q* YTD* 1YR 3YR 5YR Since Inception  Inception Date
        RYDFX 10.94% 10.94% 2.03% 23.60% -0.08% 5.65% 10/3/2003 
        Annual Operating Expenses: Gross 3.04% Net 1.49%

        * Not Annualized

        1. Fund Statistics
          as of Quarter-End 3/31/2012

          Fund Net Assets (All Classes) $4 million
          Ticker Symbol RYDFX
          Number of Holdings 105
          Average Market Capitalization* $366 million
          Weighted Average P/E Ratio** 12.0x
          Weighted Average P/B Ratio 1.4x
          U.S. Investments
          (% of Net Assets)          		 83.5%
          Non-U.S. Investments
          (% of Net Assets)          		 11.4%
          Portfolio Turnover 2011 72%
          Minimum Investment $2,000
          Cusip Number 780905477
          Fund Number 220
          Fund Inception Date 10/3/2003
          Benchmark Index Russell Microcap

          * Geometrically calculated
          ** The Fund's P/E ratio calculation excludes companies with zero or negative earnings (2% of portfolio holdings as of 3/31/2012).

        2. Value of $10,000 Invested on 10/3/03
          As of Quarter-End 3/31/2012

          RYDFX vs Russell 2000

      1. Value of $10,000 Invested on 10/3/03
        As of Quarter-End 3/31/2012

        RYDFX vs Russell 2000

        Calendar Year Total Returns
        as of Quarter-End 3/31/2012

        Calendar Year Total Returns

        Performance Breakdown by Sector
        for Quarter Ended 3/31/2012

          Sector Name Gain/Loss*
        (in millions)
        1 Information Technology $0.14
        2 Energy $0.08
        3 Consumer Discretionary $0.08
        4 Health Care $0.05
        5 Industrials $0.03
        6 Materials $0.02
        7 Consumer Staples $0.00
        8 Financials -$0.00

        *Represents net realized and unrealized gains and losses during the three-month period ended 3/31/2012. Performance results are estimates based upon unaudited portfolio results.

        Top 5 Winners*
        for Quarter Ended 3/31/2012

        Company Gain*
        (in millions)
        VAALCO Energy $0.02
        Matrix Service $0.02
        Arctic Cat $0.02
        Geodrill $0.01
        Metropolitan Health Networks $0.01

        *Represents net realized and unrealized gains and losses during the three-month period ended 3/31/2012. Performance results are estimates based upon unaudited portfolio results.

        Top 5 Losers*
        for Quarter Ended 3/31/2012

        Company Loss*
        (in millions)
        Richmont Mines -$0.02
        Dynamics Research -$0.01
        Standard Motor Products -$0.01
        Revett Minerals -$0.01
        Hi-Tech Pharmacal -$0.00

        *Represents net realized and unrealized gains and losses during the three-month period ended 3/31/2012. Performance results are estimates based upon unaudited portfolio results.

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      2. Average Annual Total Returns
        as of Quarter-End 3/31/12 as of Month-End 4/30/12

          1Q* YTD* 1YR 3YR 5YR Since Inception  Inception Date
        RYDFX 10.94% 10.94% 2.03% 23.60% -0.08% 5.65% 10/3/2003
        Annual Operating Expenses: Gross 3.04% Net 1.49%

        * Not Annualized


        Micro-Cap Maket Cycle Performance as of Quarter-End 3/31/12

        RYDFX

        View how RDF performed during down markets.

        Absolute Return Focus: Five Year Monthly Rolling Return Periods 
        as of Quarter-End 3/31/12
        Number of Five-Year Average Annual Return Periods since RDF's Inception

        RYDFX

        Relative Return Focus: Five Year Monthly Rolling Return Periods 
        as of Quarter-End 3/31/12
        RDF Spread vs. since RDF's Inception

        RYDFX

        Distribution History

        5-Year Distribution History
        Record Date Payable Date Ordinary Income S/T Gains L/T Gains Total Reinvest Price
        12/7/11 12/8/11 $0.0028 $— $— $0.00 $4.99
        12/8/08 12/9/08 $0.0000 $0.1146 $0.1835 $0.30 $3.26
        12/6/07 12/7/07 $0.0000 $0.0500 $0.4616 $0.51 $5.88
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        1. NAV History

          Previous 12 Months Ending 4/30/2012
          High $5.83 3/26/12
          Low $4.30 10/3/11
          Previous Month Ending 4/30/2012
          High $5.75 4/2/12
          Low $5.33 4/23/12

          NAV Search


        2. Year-End NAVs

          Year NAV
          2011 $5.12
          2010 $5.24
          2009 $4.38
          2008 $3.48
          2007 $5.85
          2006 $6.87
          2005 $6.33
          2004 $6.39
          2003 $5.70

    4. Portfolio Managers

      George Necakov

      George Necakov

      • Portfolio Manager and Director of Quantitative Strategies
      • CFA

      George Necakov, CFA, is a Portfolio Manager and the Director of Quantitative Strategies for Royce & Associates, LLC, investment adviser to The Royce Funds.

      View Full Bio

      Education

      • BA, New York University

      Experience

      • 18 Years of Experience
      • 18 Years at Royce
      James J. Harvey

      James J. Harvey

      • Portfolio Manager
      • CFA

      James J. Harvey, CFA, is a Portfolio Manager for Royce & Associates, LLC, investment adviser to The Royce Funds.

      View Full Bio

      Education

      • BS, State University of New York, Albany
      • MBA, New York University

      Experience

      • 19 Years of Experience
      • 13 Years at Royce

      Assistant Portfolio Manager

      Charles M. Royce

      Charles M. Royce

      • President and Co-Chief Investment Officer

      Charles M. Royce is President and Co-Chief Investment Officer of Royce & Associates, LLC and President of The Royce Funds, a position he has held since 1972.

      View Full Bio

      Education

      • BA, Brown University,
      • MBA, Columbia University,

      Experience

      • 49 Years of Experience
      • 39 Years at Royce

      1. Portfolio Statistics
        as of Quarter-End 3/31/2012

        Fund Net Assets (All Classes) $4 million
        Number of Holdings 105
        Average Market Capitalization* $366 million
        Weighted Average P/E Ratio** 12.0x
        Weighted Average P/B Ratio 1.4x
        Portfolio Turnover 2011 72%

        *Geometrically calculated
        **The Fund's P/E ratio calculation excludes companies with zero or negative earnings (2% of portfolio holdings as of 3/31/2012).

        Market Cap Exposure (In Millions)
        as of Quarter-End 3/31/2012

        Royce Micro-Cap Discovery Fund

        Companies by Market Capitalization
        as of Quarter-End 3/31/2012

        Companies by Market Capitalization
        Source: Compustat; U.S. Companies

      2. Top 10 Positions
        as of Quarter-End 3/31/2012
        % of Net Assets (Subject to Change)

        Integrated Silicon Solution 1.9%
        Metropolitan Health Networks 1.7%
        Matrix Service 1.5%
        Universal Stainless & Alloy Products 1.5%
        VAALCO Energy 1.4%
        Hi-Tech Pharmacal 1.4%
        DDi Corporation 1.3%
        Shoe Carnival 1.3%
        Kulicke & Soffa Industries 1.3%
        Super Micro Computer 1.3%
        Top 10 as % of Total 14.8%

        Portfolio Holdings
        as of Quarter-End 3/31/2012

        View the complete list of holdings for Royce Micro-Cap Discovery Fund as of 3/31/2012. Not posted sooner than 15 days after the end of the period. Unaudited schedule of portfolio holdings is presented for informational purposes only.

      3. Portfolio Sector Breakdown
        as of Quarter-End 3/31/2012
        as of Month-End 4/30/2012
        % of Net Assets (Subject to Change)

        Information Technology 28.0%
        Consumer Discretionary 19.1%
        Industrials 12.8%
        Materials 10.2%
        Health Care 9.5%
        Energy 8.0%
        Financials 5.9%
        Consumer Staples 1.3%
        Cash & Cash Equivalents 5.2%

        Asset Allocation
        as of 3/31/2012
        % of Net Assets (Subject to Change)

        Royce Micro-Cap Discovery Fund Asset Allocation

      1. Relative Risk Spectrum

        Risk Assessment

        go View the complete spectrum

        Five-Year Morningstar Statistical Measures as of 3/31/2012*

          RDF Category Median Best Breakpoint
        Sharpe Ratio 0.07 0.10 0.24
        Standard Deviation 23.46 24.67 23.99

        *Five years ended 3/31/2012. Category Median and Best Quartile Breakpoint based on 20 micro-cap objective funds (oldest class only) with at least five years of history.

        Royce Micro-Cap Discovery Fund's value approach produced below average volatility relative to micro-cap objective funds.

        Risk Disclosure

        The Sharpe Ratio is calculated for a specified period by dividing a fund's annualized excess returns by its annualized standard deviation. The higher the Sharpe Ratio, the better the fund's historical risk-adjusted performance. Standard deviation is a statistical measure within which a fund's total returns have varied over time. The greater the standard deviation, the greater a fund's volatility.

        Risk/Return Comparison
        Five-Year Period Ended 3/31/2012

          Average Annual Total Return Standard Deviation Return Efficiency*
        RDF -0.08 23.46 -0.00
        Russell Microcap -1.16 25.64 -0.05

        *Return Efficiency is the average annual total return divided by the annualized standard deviation over a designated time period. Please read the prospectus for a more complete discussion of risk.

        Down Quarters
        Performance Comparison Since RDF's Inception Through 3/31/12

        Quarter RDF Spread
        9/30/11 -22.7% -15.8% +6.9% 
        6/30/11 -3.5 -3.4 +0.1 
        6/30/10 -8.9 -7.2 +1.7 
        12/31/09 -0.5 +0.2 +0.7 
        3/31/09 -15.2 -13.5 +1.7 
        12/31/08 -28.1 -22.5 +5.6 
        9/30/08 -0.8 -3.2 -2.4 
        6/30/08 -3.5 -4.5 -1.0 
        3/31/08 -12.4 -9.4 +3.0 
        12/31/07 -7.5 -4.5 +3.0 
        9/30/07 -4.6 -4.0 +0.6 
        9/30/06 -0.7 +1.1 +1.8 
        6/30/06 -6.8 -6.9 -0.1 
        3/31/05 -7.4 -4.4 +3.0 
        9/30/04 -5.6 -5.5 +0.1 
        6/30/04 -1.8 -2.8 -1.0 

        Royce Micro-Cap Discovery Fund outperformed the in 12 out of 16 down quarters.

      2. Down Market Performance Comparison (In Percentages):
        as of Quarter-End 3/31/2012

        RDF vs Russell 2000

        Average Annual Total Returns
        as of Quarter-End 3/31/12 as of Month-End 4/30/12

          1Q* YTD* 1YR 3YR 5YR Since Inception  Inception Date
        RYDFX 10.94% 10.94% 2.03% 23.60% -0.08% 5.65% 10/3/2003 
        Annual Operating Expenses: Gross 3.04% Net 1.49%

        * Not Annualized

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      1. Shareholder Fees

        (fees paid directly from your investment)
        Maximum sales charge (load) imposed on purchases 0.00%
        Maximum deferred sales charge 0.00%
        Maximum sales charge (load) imposed on reinvested dividends 0.00%
        Redemption fee (as a percentage of amount redeemed on shares held for less than 180 days) 1.00%

      2. Annual Fund Operating Expenses

        (expenses that you pay each year as a percentage of the value of your investment)
        Management fees 1.00%
        Distribution (12b-1) fees 0.25%
        Other expenses 1.74%
        Total annual Fund operating expenses 2.99%
        Fee waivers and/or expense reimbursements (1.5)%
        Total annual Fund operating expenses after fee waivers and/or expense reimbursements 1.49%

        Royce has contractually agreed to waive fees and/or reimburse expenses to the extent necessary to maintain the Fund's net annual operating expenses at or below 1.49% through April 30, 2012 and at or below 1.99% through April 30, 2021.

      3. Account Minimums

        To Open an Account
        Regular $2,000
        Traditional/Roth IRA/Coverdell ESA $1,000
        Automatic Investment and Direct Deposit Plans $1,000
        401(k)s none
        Subsequent Investments
        All Account Types $50


    9. © Royce & Associates, LLC, 745 Fifth Avenue, New York, NY 10151, (800) 221-4268. All rights reserved. Distributor of The Royce Fund and Royce Capital Fund: Royce Fund Services, Inc., a wholly owned subsidiary of Royce & Associates. The Royce Funds are offered and sold only to persons residing in the United States and are offered by prospectus only. The prospectuses include investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing. View our Policies & Procedures, including, among others, our Sarbanes-Oxley Code of Ethics, Privacy Policy and Proxy Voting Guidelines and Procedures.