Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group.The Russell Global Small Cap Index is an unmanaged, capitalization-weighted index of global small-cap stocks. Index returns include net reinvested dividends and/or interest income.The Morgan Stanley Capital International (MSCI) World Small Core Index
is an unmanaged index of global small-cap stocks. Index returns include
net reinvested dividends and/or interest income.
Sector weightings are determined using the Global Industry Classification Standard ("GICS"). GICS was developed by, and is the exclusive property of, Standard & Poor's Financial Services LLC ("S&P") and MSCI Inc. ("MSCI"). GICS is the trademark of S&P and MSCI. "Global Industry Classification Standard (GICS)" and "GICS Direct" are service marks of S&P and MSCI.
Shares redeemed within 365 days of purchase may be subject to a 2% redemption fee payable to the Fund, which is not reflected in the performance shown above; if it were, performance would be lower.
The Fund invests primarily in micro-cap, small-cap and/or mid-cap stocks, which may involve considerably more risk than investing in larger-cap stocks (Please see "Primary Risks for Fund Investors" in the prospectus).
The Fund also invests primarily in a limited number of stocks, which may involve considerably more risk than a less concentrated portfolio because a decline in the value of these stocks would cause the Fund’s overall value to decline to a greater degree (Please see "Primary Risks for Fund Investors" in the prospectus). The Fund may invest a significant portion of its assets in foreign companies which may be subject to different risks than investments in securities of U.S. companies, including adverse political, social, economic or other developments that are unique to a particular country or region. (Please see "Investing in Foreign Securities" in the prospectus) Therefore, the prices of the securities of foreign companies in particular countries or regions may, at times, move in a different direction than those of the securities of U.S. companies. (Please see "Primary Risks for Fund Investors" in the prospectus)
Operating expenses reflect the Fund's total annual operating
expenses as of the most current prospectus and include the Fund's
management fee based on 12.5% of the Fund’s pre-fee, high watermark return (+27.2% in 2010).
The Fund's total annual Fund
operating expense ratio of 3.53% consisted of the management fee, dividends on securities sold
short, other expenses and acquired fund fees and expenses. Royce & Associates has
contractually agreed to absorb all other operating expenses of the Fund, other
than dividend expense relating to any short selling activity of the Fund and
acquired fund fees and expenses, when applicable.
Acquired fund fees and expenses reflect the estimated amount
of the fees and expenses incurred indirectly by the Fund through its
investments in mutual funds, hedge funds, private equity funds and other
investment companies.
This material is not authorized for distribution unless preceded or accompanied by a current prospectus. Please read the prospectus carefully before investing or sending money.
Distributor: Royce Fund Services, Inc.
NOT FDIC INSURED · MAY LOSE VALUE · NOT BANK GUARANTEED
Management Team
Portfolio Manager
Assistant Portfolio Manager
| Semperit AG Holding |
3.2% |
| Santen Pharmaceutical |
3.0% |
| Mayr-Melnhof Karton |
3.0% |
| Jupiter Fund Management |
2.9% |
| USS |
2.8% |
| Teradyne |
2.7% |
| FamilyMart |
2.6% |
| Helmerich & Payne |
2.6% |
| Ashmore Group |
2.4% |
| Lamprell |
2.4% |
| Top 10 as % of Total |
27.7% |

Royce Global Select Fund (RGS) seeks long-term growth of capital and is designed for “qualified investors.” The Fund invests in both long and short positions in equity securities. The long portion of the Fund’s portfolio is invested in a limited number (generally less than 100) of U.S. and foreign micro-cap, small-cap and mid-cap companies that Royce believes possess excellent business strengths and/or growth prospects, high internal rates of return, and low leverage. The Fund may also establish up to 35% of its net assets in short equity positions, and may employ leverage. We believe that investors in the Fund should have an investment horizon of at least three years.
| |
1-Month* |
YTD* |
1YR |
3YR |
5YR |
Since Inception |
Inception Date |
| RSFTX |
9.56% |
9.56% |
-7.92% |
24.35% |
7.15% |
11.44% |
6/30/2005 |
| Russell Global Small Cap |
8.29% |
8.29% |
-6.34% |
23.16% |
0.00% |
5.15% |
N/A |
| MSCI World Small Core |
7.55% |
7.55% |
-3.07% |
24.40% |
0.45% |
5.40% |
N/A |
| Annual Operating Expenses: 3.53% |
| |
4Q* |
YTD* |
1YR |
3YR |
5YR |
Since Inception |
Inception Date |
| RSFTX |
0.53% |
-17.77% |
-17.77% |
19.58% |
5.80% |
10.04% |
6/30/2005 |
| Russell Global Small Cap |
5.25% |
-14.03% |
-14.03% |
16.72% |
-1.28% |
4.19% |
N/A |
| MSCI World Small Core |
8.22% |
-9.06% |
-9.06% |
18.24% |
-0.64% |
4.05% |
N/A |
| Annual Operating Expenses: 3.53% |
-
Fund Statistics
as of Quarter-End 12/31/2011
| Fund Net Assets (All Classes) |
$23 million |
| Ticker Symbol |
RSFTX |
| Number of Holdings |
81 |
| Average Market Capitalization* |
$1.40 billion |
| Weighted Average P/E Ratio** |
11.0x |
| Weighted Average P/B Ratio |
1.9x |
| Portfolio Turnover as of 6/30/2011 |
14% |
| Minimum Investment |
$50,000 |
| Cusip Number |
780905410 |
| Fund Number |
353 |
| Fund Inception Date |
6/30/2005 |
| Benchmark Index |
Russell Global Small Cap |
| |
MSCI World Small Core |
-
Value of $10,000 Invested on 6/30/05
As of Quarter-End 12/31/2011
-
Value of $10,000 Invested on 6/30/05
As of Quarter-End 12/31/2011
Calendar Year Total Returns
as of Quarter-End 12/31/2011
Performance Breakdown by Sector
for Quarter Ended 12/31/2011
| |
Sector Name |
Gain/Loss* (in millions) |
| 1 |
Energy |
$0.30 |
| 2 |
Information Technology |
$0.17 |
| 3 |
Industrials |
$0.14 |
| 4 |
Consumer Staples |
$0.08 |
| 5 |
Government Bonds |
-$0.00 |
| 6 |
Diversified Investment Companies |
-$0.02 |
| 7 |
Financials |
-$0.05 |
| 8 |
Consumer Discretionary |
-$0.07 |
| 9 |
Health Care |
-$0.08 |
| 10 |
Materials |
-$0.50 |
Top 5 Winners*
for Quarter Ended 12/31/2011
| Company |
Gain* (in millions) |
| Helmerich & Payne |
$0.18 |
| Value Partners Group |
$0.14 |
| Teradyne |
$0.13 |
| Burckhardt Compression Holding |
$0.11 |
| Tegma Gestao Logistica |
$0.09 |
Top 5 Losers*
for Quarter Ended 12/31/2011
| Company |
Loss* (in millions) |
| Medusa Mining |
-$0.16 |
| Citadel Capital |
-$0.09 |
| E-House China Holdings ADR |
-$0.09 |
| Pan American Silver |
-$0.07 |
| Recordati |
-$0.06 |

| |
1-Month* |
YTD* |
1YR |
3YR |
5YR |
Since Inception |
Inception Date |
| RSFTX |
9.56% |
9.56% |
-7.92% |
24.35% |
7.15% |
11.44% |
6/30/2005 |
| Russell Global Small Cap |
8.29% |
8.29% |
-6.34% |
23.16% |
0.00% |
5.15% |
N/A |
| MSCI World Small Core |
7.55% |
7.55% |
-3.07% |
24.40% |
0.45% |
5.40% |
N/A |
| Annual Operating Expenses: 3.53% |
| |
4Q* |
YTD* |
1YR |
3YR |
5YR |
Since Inception |
Inception Date |
| RSFTX |
0.53% |
-17.77% |
-17.77% |
19.58% |
5.80% |
10.04% |
6/30/2005 |
| Russell Global Small Cap |
5.25% |
-14.03% |
-14.03% |
16.72% |
-1.28% |
4.19% |
N/A |
| MSCI World Small Core |
8.22% |
-9.06% |
-9.06% |
18.24% |
-0.64% |
4.05% |
N/A |
| Annual Operating Expenses: 3.53% |
Absolute Return Focus: Five Year Monthly Rolling Return Periods
as of Quarter-End 12/31/11
Number of Five-Year Average Annual Return Periods since RGS's Inception
Relative Return Focus: Five Year Monthly Rolling Return Periods
as of Quarter-End 12/31/11
RGS Spread vs. Russell Global Small Cap since RGS's Inception
Distribution History
| 5-Year Distribution History |
| Record Date |
Payable Date |
Ordinary Income |
S/T Gains |
L/T Gains |
Total |
Reinvest Price |
| 12/14/11 |
12/15/11 |
$0.2495 |
$0.0797 |
$0.6223 |
$0.95 |
$14.99 |
| 12/15/10 |
12/16/10 |
$0.0502 |
$— |
$— |
$0.05 |
$19.43 |
| 12/15/09 |
12/16/09 |
$0.2628 |
$— |
$— |
$0.26 |
$14.76 |
| 12/15/08 |
12/16/08 |
$0.0000 |
$0.0581 |
$0.0283 |
$0.09 |
$9.54 |
| 12/27/07 |
12/28/07 |
$0.3554 |
$0.3455 |
$0.1631 |
$0.86 |
$15.09 |

NAV History
| Previous 12 Months Ending 1/31/2012 |
| High |
$21.15 |
4/27/11 |
| Low |
$14.84 |
12/19/11 |
| Previous Month Ending 1/31/2012 |
| High |
$17.00 |
1/27/12 |
| Low |
$15.38 |
1/1/12 |
-
Year-End NAVs
| Year |
NAV |
| 2011 |
$15.38 |
| 2010 |
$19.89 |
| 2009 |
$14.97 |
| 2008 |
$9.76 |
| 2007 |
$15.01 |
| 2006 |
$13.43 |
| 2005 |
$11.77 |
Portfolio Manager
- Portfolio Manager and Director of International Research
David A. Nadel is a Portfolio Manager and Director of International Research for Royce & Associates, LLC, investment adviser to The Royce Funds.
View Full Bio
Education
- BA, Williams College
- MA, Harvard University
- MBA, Harvard Business School
Experience
- 20 Years of Experience
- 5 Years at Royce
Assistant Portfolio Manager
- Co-Chief Investment Officer, Portfolio Manager and Managing Director
W. Whitney George is a Co-Chief Investment Officer, Portfolio Manager and a Managing Director of Royce & Associates, LLC, investment adviser to The Royce Funds.
View Full Bio
Education
Experience
- 31 Years of Experience
- 20 Years at Royce
-
Portfolio Statistics
as of Quarter-End 12/31/2011
| Fund Net Assets (All Classes) |
$23 million |
| Number of Holdings |
81 |
| Average Market Capitalization* |
$1.40 billion |
| Weighted Average P/E Ratio** |
11.0x |
| Weighted Average P/B Ratio |
1.9x |
| Portfolio Turnover as of 6/30/2011 |
14% |
Market Cap Exposure (In Millions)
as of Quarter-End 12/31/2011
-
| Semperit AG Holding |
3.2% |
| Santen Pharmaceutical |
3.0% |
| Mayr-Melnhof Karton |
3.0% |
| Jupiter Fund Management |
2.9% |
| USS |
2.8% |
| Teradyne |
2.7% |
| FamilyMart |
2.6% |
| Helmerich & Payne |
2.6% |
| Ashmore Group |
2.4% |
| Lamprell |
2.4% |
| Top 10 as % of Total |
27.7% |
Short Positions
as of Quarter-End 12/31/2011
% of Net Assets (Subject to Change)
| ProShares Ultra Health Care | -1.1% |
| Simon Property Group, Inc. | -0.9% |
| ProShares Ultra MSCI Emerging Market Index Fund | -0.9% |
| Panera Bread Company Cl. A | 0.8% |
| United Rentals, Inc. | -0.7% |
| iShares MSCI Canada Index | -0.7% |
| iShares Barclays 20+ Year Treasury Bond Fund | -0.7% |
| Las Vegas Sands Corporation | -0.6% |
| Stericycle, Inc. | -0.6% |
| Deluxe Corporation | -0.5% |
Long Positions
as of Quarter-End 12/31/2011
% of Net Assets (Subject to Change)
| Semperit AG Holding | 3.2% |
| Santen Pharmaceutical | 3.0% |
| Mayr-Melnhof Karton | 3.0% |
| Jupiter Fund Management | 2.9% |
| USS | 2.8% |
| Teradyne | 2.7% |
| FamilyMart | 2.6% |
| Helmerich & Payne | 2.6% |
| Ashmore Group | 2.4% |
| Lamprell | 2.4% |
Portfolio Holdings
as of Quarter-End 12/31/2011
View the complete list of holdings for Royce Global Select Fund as of 12/31/2011. Not posted sooner than 15 days after the end of the period. Unaudited schedule of portfolio holdings is presented for informational purposes only.
-
Portfolio Sector Breakdown
as of Quarter-End 12/31/2011
% of Net Assets (Subject to Change)
| Materials |
24.5% |
| Industrials |
13.3% |
| Information Technology |
12.1% |
| Financials |
11.2% |
| Energy |
10.5% |
| Health Care |
9.7% |
| Consumer Discretionary |
8.0% |
| Consumer Staples |
6.9% |
| Government Bonds |
-0.6% |
| Diversified Investment Companies |
-1.6% |
| Treasuries, Cash & Cash Equivalents |
5.9% |
Portfolio Country Breakdown
as of Quarter-End 12/31/2011
% of Net Assets* (Subject to Change)
| Japan |
12.9% |
| United Kingdom |
10.2% |
| Germany |
8.9% |
| Australia |
6.6% |
| Austria |
6.2% |
| South Africa |
5.9% |
| United States |
5.2% |
| Canada |
5.0% |
| Brazil |
3.8% |
| Switzerland |
3.8% |
| Hong Kong |
3.1% |
| Norway |
2.9% |
| United Arab Emirates (U.A.E.) |
2.4% |
| Belgium |
2.4% |
| France |
2.4% |
| India |
2.3% |
| China |
2.1% |
| Jersey |
2.0% |
| South Korea |
1.6% |
| Italy |
1.4% |
| Turkey |
1.1% |
| Mexico |
1.1% |
| Finland |
0.9% |
-
Five-Year Morningstar Statistical Measures as of 12/31/2011*
| |
RGS |
Category Median |
Best Breakpoint |
| Sharpe Ratio |
0.31 |
0.05 |
0.18 |
| Standard Deviation |
22.38 |
23.87 |
22.32 |
Royce Global Select Fund's value approach produced below average volatility relative to world stock small-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 12/31/2011
| |
Average Annual Total Return |
Standard Deviation |
Return Efficiency* |
| RGS |
5.80 |
22.38 |
0.26 |
| Russell Global Small Cap |
-1.28 |
24.23 |
-0.05 |
|
|
Over the last five years, Royce Global Select Fund outperformed the Russell Global Small Cap on both an absolute and risk adjusted basis.
Russell Global Small Cap Down Quarters
Performance Comparison Since RGS's Inception Through 12/31/11
| Quarter |
Russell Global Small Cap |
RGS |
Spread |
| 9/30/11 |
-20.3% |
-19.9% |
+0.4% |
| 6/30/11 |
-0.7 |
-1.9 |
-1.2 |
| 6/30/10 |
-9.0 |
-5.3 |
+3.7 |
| 3/31/09 |
-9.8 |
-3.8 |
+6.0 |
| 12/31/08 |
-25.4 |
-21.1 |
+4.3 |
| 9/30/08 |
-17.8 |
-23.0 |
-5.2 |
| 6/30/08 |
-2.8 |
+11.0 |
+13.8 |
| 3/31/08 |
-9.5 |
-2.6 |
+6.9 |
| 12/31/07 |
-3.5 |
-2.8 |
+0.7 |
| 6/30/06 |
-4.4 |
-1.9 |
+2.5 |
Royce Global Select Fund outperformed the Russell Global Small Cap in eight out of 10 down quarters.
Down Market Performance Comparison (In Percentages):
as of Quarter-End 12/31/2011
| |
1-Month* |
YTD* |
1YR |
3YR |
5YR |
Since Inception |
Inception Date |
| RSFTX |
9.56% |
9.56% |
-7.92% |
24.35% |
7.15% |
11.44% |
6/30/2005 |
| Russell Global Small Cap |
8.29% |
8.29% |
-6.34% |
23.16% |
0.00% |
5.15% |
N/A |
| MSCI World Small Core |
7.55% |
7.55% |
-3.07% |
24.40% |
0.45% |
5.40% |
N/A |
| Annual Operating Expenses: 3.53% |
| |
4Q* |
YTD* |
1YR |
3YR |
5YR |
Since Inception |
Inception Date |
| RSFTX |
0.53% |
-17.77% |
-17.77% |
19.58% |
5.80% |
10.04% |
6/30/2005 |
| Russell Global Small Cap |
5.25% |
-14.03% |
-14.03% |
16.72% |
-1.28% |
4.19% |
N/A |
| MSCI World Small Core |
8.22% |
-9.06% |
-9.06% |
18.24% |
-0.64% |
4.05% |
N/A |
| Annual Operating Expenses: 3.53% |

-
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 365 days) |
2.00% |
-
Annual Fund Operating Expenses
| (expenses that you pay each year as a percentage of the value of your investment) |
| Management fees (12.5% of pre-fee high watermarked return) |
3.40% |
| Distribution (12b-1) fees |
0.00% |
| Other expenses |
0.03% |
| Dividends on securities sold short |
0.05% |
| Acquired fund fees and expenses |
0.05% |
| Total annual Fund operating expenses |
3.53% |
Total annual Fund operating expenses may differ from the expense ratio in the Fund's Financial Highlights because they include only the Fund's direct operating expenses and do not include acquired fund fees and expenses, which reflect the estimated amount of the fees and expenses incurred indirectly by the Fund through its investments in mutual funds, hedge funds, private equity funds and other investment companies.
-
Account Minimums
| To Open an Account |
| Minimum investment |
$50,000 |
| Minimum subsequent investment |
$100 |
|
This Fund is designed for qualified investors, as defined in the prospectus.
|
Download literature for Royce Global Select Fund
-

©
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.