Although The Motley Fool (Fool.com) writes about its general preference for index mutual funds in its recent article, "How to Invest When You're Busy," it suggests that you take a moment to identify the "diamonds-in-the-rough of actively managed funds." The Fool.com chose The Royce Funds as a good place to start, given that it "likes to see that the mutual fund manager's interests are aligned with ours – that is, when a manager has a bulk of his own money invested in the fund." It calls Royce Heritage Fund (RGFAX) a "superb fund" given its managerial tenure, its relatively low expense ratio, and its long-term performance edge over its benchmark. Royce Heritage Fund's annual operating expenses were 1.47%, and its average annual total returns for the one-year, three-year, five-year, and 10-year periods ended September 30, 2007, were 13.40%, 17.09%, 20.74%, and 15.95%, respectively. By comparison, the Russell 2000 Index posted an average annual return of 7.22% for the 10-year period. 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 Service Class as of the Fund's most current prospectus and include management fees, 12b-1 distribution and service fees.
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).