Kiplinger's Highlights Royce European Smaller Companies Fund

Important Disclosure Information

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 Fund invests primarily in companies that are domiciled, or whose securities trade, in Europe. Securities of foreign companies may be subject to different risks than investments in securities of U.S. companies, including adverse political, social, economic or other developments that are unique to a particular country or region (Please see "Investing in Foreign Securities" in the prospectus). Therefore, the prices of the securities of international companies in particular countries or regions may, at times, move in a different direction than those of the securities of U.S. companies (Please see "Primary Risks for Fund Investors" in the prospectus). The Fund invests primarily in microcap, small-cap and/or mid-cap stocks, which may involve considerably more risk than investing in larger-cap stocks (Please see "Primary Risks for Fund Investors" in the prospectus). In addition, as of 3/31/11 the Fund held a limited number of stocks, which may involve considerably more risk than a less concentrated portfolio because a decline in the value of any one of these stocks would cause the Fund's overall value to decline to a greater degree. The Morgan Stanley Capital International Europe Small Core Index is an unmanaged index of European small-cap stocks. Index returns include net reinvested dividends and/or interest income. The Russell Europe Small Cap Index is an unmanaged, capitalization-weighted index of European small-cap stocks. Index returns include net reinvested dividends and/or interest income.

Distributor: Royce Fund Services, Inc.