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Making Headlines

Morningstar adds Pennsylvania Mutual Fund (PENNX) to its FundInvestor 500

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"This month, we're adding Pennsylvania Mutual Fund (PENNX), a venerable fund in the small-blend category," writes Morningstar analyst Karen Wallace. She cites the Fund's relatively low expense ratio of 0.87%, and writes that Morningstar like to see funds "pass economies of scale along to shareholders in the form of lower expenses." She goes on to discuss the Fund's performance: "The Fund is able to distinguish itself through deft stock picking." Pennsylvania Mutual Fund's average annual total returns for the one-year, three-year, five-year, and 10-year periods ended September 30, 2007, were 16.05%, 14.93%, 19.82%, and 12.35%, respectively. Click here for returns as of the most recent month end.

Important Performance and Expense Information
All performance information reflects past performance, is presented on a total return basis and reflects the reinvestment of distributions. 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 may be obtained by clicking here. Annual 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.

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. The Funds invest primarily in small- and micro-cap stocks that may involve considerably more risk than investing in larger-cap stocks. The Fund may invest up to 25% of its assets in foreign securities that may involve political, economic, currency and other risks not encountered in U.S. investments (see "Primary Risk for Fund Investors" in the prospectus).

© Royce & Associates, LLC, 1414 Avenue of the Americas, New York, NY 10019, (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. View our Policies & Procedures, including, among others, our Sarbanes-Oxley Code of Ethics, Privacy Policy and Proxy Voting Guidelines and Procedures.