The Royce Funds



		OCTOBER 2008

What’s New

> Third Quarter Distribution Notices for Royce Closed-End Funds

> Quarterly Distributions for Royce Total Return Fund and Royce Dividend Value Fund

Commentaries

> 10/01/08: Chuck Royce on Third Quarter 2008
Chuck discusses the dramatic and historic events of the third quarter and year-to-date period. He also looks at why the long-term prospects for smaller companies continue to look attractive.

> 09/15/08: Ably Assisted: A Roundtable with Royce Pennsylvania Mutual Fund’s Assistant Portfolio Managers
In managing our flagship, Royce Pennsylvania Mutual Fund, Chuck Royce has the able assistance of four talented investment professionals.

The Gannon Report
> "The time is out of joint" - The Quarter That Was…

The long-term effect of the transforming last 10 days of the third quarter will be felt by investors and the economy for years to come. Why is this environment a good one for value investors with a long-term, three-to-five-year outlook?

Making Headlines

> Royce Funds Named in Forbes 2008 Mutual Fund Survey

> Kiplinger's Likes Royce Micro-Cap Fund (RYOTX)

> Royce Tops Morningstar's Ownership Chart

> Royce Special Equity Fund (RYSEX) is in The Wall Street Journal

> Columnist Leckey Applauds Royce for its "Skin in the Game"

> SmartMoney Talks Fund Names with Jack Fockler

> The Arizona Republic on Royce Opportunity Fund (RYPNX)

	> September Fund Performance



		> Advisor’s Corner Third Quarter Advisor Flash Did you receive the Third Quarter Advisor Flash e-mail? If not, it is now available on our Advisor Site. To receive these e-mails in the future, please log into our Financial Advisor site and choose Advisor Toolbox, Manage Preferences. Semiannual Advisor Conference Call If you missed the call, a digital replay is available in the Advisors area of our website until Monday, October 13, 2008.




	> 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.



	The Royce Funds Shareholder Communications Honored With Seven 2008 MFEA Star Awards Each year the Mutual Fund Education Alliance (MFEA) recognizes mutual fund companies that provide outstanding shareholder communications. The Royce Funds was selected as the winner in 7 categories, including the prestigious "Best Overall Communications."



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	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. 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.