Royce Special Equity Fund (RYSEX)

The Russell 2000 Index is an unmanaged, capitalization-weighted index of domestic small-cap stocks. It measures the performance of the 2,000 smallest publicly traded U.S. companies in the Russell 3000 Index.

All performance information reflects past performance, is presented on a total return basis, reflects the reinvestment of distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, so that shares may be worth more or less than their original cost when redeemed.

Current performance may be higher or lower than performance quoted. Current month-end performance information may be obtained at www.roycefunds.com.

All performance information reflects past performance, is presented on a total return basis, reflects the reinvestment of distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, so that shares may be worth more or less than their original cost when redeemed.

Current performance may be higher or lower than performance quoted. Current month-end performance information may be obtained at www.roycefunds.com.

All performance information reflects past performance, is presented on a total return basis, reflects the reinvestment of distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, so that shares may be worth more or less than their original cost when redeemed.

Current performance may be higher or lower than performance quoted. Current month-end performance information may be obtained at www.roycefunds.com.

All performance and risk information presented in this material prior to the commencement date of Consultant Class shares on 6/2/03 reflects Investment Class results. Consultant Class shares bear annual expenses that are higher than those borne by Investment Class shares. If Consultant Class’s annual expenses had been reflected, total returns prior to 6/2/03 would have been lower.

All performance information reflects past performance, is presented on a total return basis, reflects the reinvestment of distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, so that shares may be worth more or less than their original cost when redeemed.

Current performance may be higher or lower than performance quoted. Current month-end performance information may be obtained at www.roycefunds.com.

All performance and risk information presented in this material prior to the commencement date of Institutional Class shares on 7/25/03 reflects Investment Class results. Each class would have substantially similar returns because all classes invest in the same portfolio of securities, differing only to the extent that the classes have different expenses.

Shares redeemed within 180 days of purchase may be subject to a 1% 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 small-cap and micro-cap stocks, which may involve considerably more risk than investing in larger-cap stocks (Please see "Primary Risks for Fund Investors" in the prospectus).

As of 12/31/11, the Fund held 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.

Shares redeemed within 180 days of purchase may be subject to a 1% 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 small-cap and micro-cap stocks, which may involve considerably more risk than investing in larger-cap stocks (Please see "Primary Risks for Fund Investors" in the prospectus).

As of 12/31/11, the Fund held a limited number of small-cap and micro-cap 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.

Consultant Class shares redeemed within 365 days of purchase may be subject to a 1% contingent deferred sales charge payable to the Fund’s distributor, Royce Fund Services, Inc., which is not reflected in the performance shown above; if it were, performance would be lower.

The Fund invests primarily in small-cap and micro-cap stocks, which may involve considerably more risk than investing in larger-cap stocks (Please see "Primary Risks for Fund Investors" in the prospectus).

As of 12/31/11, the Fund held 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.

The Fund may invest up to 25% of its net assets in foreign securities, which may involve political, economic, currency and other risks not encountered in U.S. investments. (Please see "Investing in Foreign Securities" in the prospectus.)

The Fund invests primarily in small-cap and micro-cap stocks, which may involve considerably more risk than investing in larger-cap stocks (Please see "Primary Risks for Fund Investors" in the prospectus).

As of 12/31/11, the Fund held 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.

Operating expenses reflect the Fund's total annual operating expenses for the Investment Class as of the Fund’s most current prospectus and include management fees and other expenses.

Gross operating expenses reflect the Fund's gross total annual operating expenses for the Service Class, and include management fees, 12b-1 distribution and service fees, and other expenses. Net operating expenses reflect contractual fee waivers and/or expense reimbursements. All expense information is reported as of the Fund’s most current prospectus.

Royce & Associates has contractually agreed to waive fees and/or reimburse operating expenses to the extent necessary to maintain the Service Class’s net annual operating expense ratio at or below 1.39% through April 30, 2012.

Operating expenses reflect the Fund’s total annual operating expenses for the Institutional Class as of the Fund’s most current prospectus, and include management fees and other expenses.

Operating expenses reflect the Fund’s total annual operating expenses for the Institutional Class as of the Fund’s most current prospectus, and include management fees and other expenses.

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

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

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

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