The Royce Funds



		SEPTEMBER 2008

What’s New

> 3Q Distributions declared for Royce Closed-End Funds

Commentaries

> 09/01/08: Risks and Rewards: Jenifer Taylor on Royce Micro-Cap Fund
How has Royce Micro-Cap Fund earned its relative advantage in such a difficult market?

> 08/15/08: The Times They Are A-Changin'
Part 2 of the Letter to Shareholders from our recent Semiannual Review and Report to Shareholders continues our examination of the difficulties faced by the equity markets during the first half of 2008.

The Gannon Report
> A New Course On An Old Subject: Planting and Harvesting 101

The often violently volatile behavior of financial and natural resources stocks is making the third quarter a time full of interesting opportunities for many of our portfolio managers. See how these activities may be helping us to create successful long-term opportunities.

Making Headlines

> George and Zaino Named among Barron's/Value Line Featured 100 Managers

> Annual Fund Rankings of Kiplinger's Personal Finance include The Royce Funds

> Kiplinger's Likes Royce 100 Fund (RYOHX)

> Money Makes Lemonade with Royce Value Plus Fund (RYVPX)

> Gannet News Highlights Royce Low-Priced Stock Fund (RYLPX)

> Morningstar Likes the Diversification of Royce Pennsylvania Mutual Fund (PENNX)

> Morningstar Advisor on Colorado Scholars Choice

> Columnist Berko Suggests Royce Value Trust (RVT)

	> August Fund Performance



		> Advisor’s Corner Semiannual Advisor Conference Call Our next Advisor Conference Call is scheduled for Monday, September 29 at 3:00pm ET. Small-Cap Investing In A Large-Cap World Please join Chuck Royce and Jack Fockler as they discuss third quarter, year-to-date and market cycle performance, small-cap leadership, the long-term equity outlook and opportunities abroad. For more information please visit our website or telephone (800) 33-ROYCE or (800) 337-6923.




	> Simplify Your Life — Go Paperless eDelivery means less paper will hit your mailbox. If you are a direct Royce shareholder visit roycefunds.com/edelivery and follow two easy steps to sign up now.



	> Our Employees and Shareholders Share a Common Financial Goal Did you know that officers, employees and their families currently have approximately $123 million invested in The Royce Funds? Learn more about Who We Are.




	Comments and Suggestions about this Newsletter If you have comments or suggestions about this newsletter, [eNewsletterEMail]please e-mail us, or telephone Investor Services at (800) 221-4268. Please do not send feedback, comments, or questions using the "reply to" function. Please Read the Prospectus Please read the Fund's prospectus carefully and consider a Fund’s investment goals, risks, fees and expenses before investing or sending money. You may obtain a current prospectus for any series of The Royce Funds that contains this and other information. © 2008 Royce & Associates, LLC, 1414 Avenue of the Americas, New York, NY 10019. All rights reserved. Distributor of The Royce Fund and Royce Capital Fund: Royce Fund Services, Inc. View our Policies & Procedures, including, among others, our Sarbanes-Oxley Code of Ethics, Privacy Policy and Proxy Voting Guidelines and Procedures.