Fund Guide

• Royce Pennsylvania Mutual Fund
• Royce Heritage Fund

Core Funds generally invest across a wide spectrum of smaller companies using a diversified approach. We select stocks in these Funds based on balance sheet quality, cash flow characteristics and high returns on invested capital. We developed our core approach during the 1970s and '80s in our flagship Royce Pennsylvania Mutual Fund. These Funds also incorporate ideas used in other portfolios, such as low-priced stocks, dividend-paying stocks and international securities.

• Royce Micro-Cap Fund*
• Royce Micro-Cap Discovery Fund

Micro-Cap Funds generally invest in micro-caps, those companies with market capitalizations up to $750 million, using our core investment approach. Due to the sector's size and limited research coverage, there is more opportunity to find pricing inefficiencies. Therefore, we believe that the potential for higher returns, commensurate with a higher level of risk, is greater than for any other capitalization sector of the domestic equity marketplace.

• Royce Total Return Fund
• Royce Dividend Value Fund

Core + Dividends Funds generally invest in dividend-paying smaller companies using a diversified approach. We believe that an investment strategy that seeks both long-term growth and current income has the potential to generate above-average absolute returns over full market cycles with less volatility. These Funds may also invest a portion of the portfolio in fixed income securities, such as convertible bonds.

• Royce SMid-Cap Value Fund
• Royce Mid-Cap Fund

Mid-Cap Funds generally invest in mid-caps, those companies with market capitalizations from $2.5 billion to $15 billion, or smid-caps, those companies with market capitalizations from $750 million to $10 billion. While not restricted by number of holdings, we typically employ a more concentrated approach when investing in these companies, holding proportionately larger positions in a relatively limited number of stocks.

• Royce Premier Fund*
• Royce Special Equity Fund*
• Royce Value Fund
• Royce 100 Fund
• Royce Focus Value Fund
• Royce Partners Fund
• Royce Special Equity Multi-Cap Fund

Focused Funds generally employ a more limited portfolio approach—typically holding no more than 100 positions—and whose holdings possess what we believe are attractive valuations and higher quality characteristics. These include strong balance sheets, above-average returns on invested capital and the ability to generate free cash flow.

• Royce Global Value Fund
• Royce European Smaller-Companies Fund
• Royce International Smaller-Companies Fund
• Royce Global Dividend Value Fund
• Royce International Premier Fund
• Royce International Micro-Cap Fund

Global/International Funds invest in non-U.S. based companies with what we think are attractive valuations. We use the same core investment approach, which focuses on balance sheet quality and returns on invested capital, when investing in international businesses. We have found that quality is an international concept that recognizes no borders. This universe is enormous, dwarfing the domestic smaller companies market.

• Royce Low-Priced Stock Fund*
• Royce Opportunity Fund
• Royce Value Plus Fund
• Royce Financial Services Fund

Opportunistic Theme Funds generally invest in companies considered more opportunistic, with each emphasizing different themes, such as turnarounds, special situations, low-priced stocks and/or companies with high growth prospects. These portfolios are highly diversified and have the potential for higher returns, commensurate with each Fund's higher level of risk.

• Royce Select Fund I
• Royce Select Fund II
• Royce Global Select Long/Short Fund
• Royce Enterprise Select Fund
• Royce Opportunity Select Fund

Qualified Investor Funds use a performance fee structure and are available only to qualified investors who desire a specific portfolio management style. Each Select Fund is managed by a different Royce portfolio manager and incorporates an approach consistent with one of our other categories.