News

Effective February 15, 2008, four of The Royce Funds are changing their names to reflect respective changes in each Fund’s investment policy.

Royce International Value Fund is changing its name to Royce Global Value Fund.

The Fund will invest at least 65% of its net assets in the equity securities of at least three countries, including the United States. As the Fund previously was permitted to invest up to 35% of its net assets in U.S. securities, Royce does not expect the change in policy to have a significant impact on how the Fund is being managed. The Fund’s value approach will not change.

Royce International Smaller-Companies Fund is changing its name to Royce European Smaller-Companies Fund.

The Fund will now be required to invest at least 80% of its assets in equity securities of European companies with market caps up to $5 billion. Co-managers Charles M. Royce and David Nadel have already been investing primarily in European smaller-company stocks during the Fund’s first year of operation. They believe that significant opportunities exist in the European equity markets and therefore are choosing to keep the Fund focused in Europe. Previously, the Fund’s investment policies were broader, requiring that it invest at least 65% of its assets in the equity securities of international companies domiciled in at least three different countries.

Royce Mid-Cap Value Fund is changing its name to Royce SMid-Cap Value Fund.

The Fund will invest at least 80% of its assets in equity securities of companies with market caps between $500 million and $10 billion. While Royce expects the Fund’s average market capitalization to exceed $2.5 billion, co-managers Charles M. Royce and Steven McBoyle are choosing to broaden the Fund’s security selection universe to include small-cap companies with market capitalizations between $500 million and $2.5 billion. The Fund’s value approach will not change.

Royce Mid-Cap Select Fund is changing its name to Royce SMid-Cap Select Fund.

The Fund will invest at least 80% of its assets in equity securities of companies with market caps between $500 million and $10 billion. While Royce expects the Fund’s average market capitalization to exceed $2.5 billion, co-managers Charles M. Royce and Steven McBoyle are choosing to broaden the Fund’s security selection universe to include small-cap companies with market capitalizations between $500 million and $2.5 billion. The Fund’s value approach will not change.

An investor should carefully consider each Fund’s investment objective, risks, charges and expenses before investing or sending money. This and other important information about The Royce Funds can be found in the Funds’ prospectus. Click here to obtain a prospectus, or please call (800) 221-4268. Please read the prospectus carefully before investing. The Funds invest primarily in the securities of small- and micro-cap companies that may involve considerably more risk than investments in securities of larger-cap companies (see “Primary Risks for Fund Investors” in the prospectus).