90

At a Glance

Why invest in Dividend Value?

  • Small/mid-cap value fund (generally market caps up to $15 billion) that invests primarily in dividend-paying companies with strong business fundamentals and attractive prospects
  • Focuses on quality businesses, both U.S. and foreign, with below-average debt and above-average profitability selling at prices that Royce believes do not fully reflect underlying quality
  • Has a long history of lower volatility and better risk-adjusted returns than its benchmark, the Russell 2000 Index

As of 06/30/17

  • Small/Mid-Cap
    Value Approach
    $4.26B
    Avg. Market Cap
  • Below Average
    Volatility
    97%
    Active Share
  • Lead Manager
    Tenure
    13+
    Years on Fund

Portfolio Management

"Capital preservation means as much to us as capital appreciation. Our absolute return orientation fosters realistic expectations for the stocks we buy. We have a long-term investment horizon for the companies that we own and the portfolio itself."
Chuck Royce

Performance

Average Annual Total Returns (%)

Outperformed Russell 2000 for the Quarter, Year To Date, 10-Year and since inception (05/03/04) periods as of 06/30/17.
QTR YTD 1YR 3YR 5YR 10YR SINCE INCEPT. DATE
Dividend Value 3.53 8.0520.664.1511.407.048.88 05/03/04
Russell 2000 2.46 4.9924.607.3613.706.928.67 N/A

Annual Operating Expenses: Gross 3.12 Net 0.89

JUN YTD 1YR 3YR 5YR 10YR SINCE INCEPT. DATE
Dividend Value 2.56 8.0520.664.1511.407.048.88 05/03/04
Russell 2000 3.46 4.9924.607.3613.706.928.67 N/A

Annual Operating Expenses: Gross 3.12 Net 0.89

JUL YTD 1YR 3YR 5YR 10YR SINCE INCEPT. DATE
Dividend Value 1.84 10.0418.995.3211.917.168.99 05/03/04
Russell 2000 1.49 6.5520.949.3114.237.048.75 N/A

Annual Operating Expenses: Gross 3.12 Net 0.89

Important Performance and Expense Information

All performance information reflects past performance, is presented on a total return basis, reflects the reinvestment of distributions, and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, so that shares may be worth more or less than their original cost when redeemed. Shares redeemed within 180 days of purchase may be subject to a 1% redemption fee, payable to the Fund, which is not reflected in the performance shown above; if it were, performance would be lower. Current month-end performance may be higher or lower than performance quoted and may be obtained at www.roycefunds.com. Gross operating expenses reflect the Fund's total gross operating expenses for the Institutional Class and include management fees and other expenses. Net operating expenses reflect contractual fee waivers and/or expense reimbursements. All expense information is reported as of the Fund’s most current prospectus. Royce & Associates has contractually agreed, without right of termination, to waive fees and/or reimburse expenses to the extent necessary to maintain the Institutional Class's net annual operating expenses (excluding brokerage commissions, taxes, interest, litigation expenses, acquired fund fees and expenses, and other expenses not borne in the ordinary course of business) at or below 0.89% through April 30, 2018. 

All performance and risk information presented in this material prior to the commencement date of Institutional Class shares on 8/31/12 reflects Service Class results. Service Class shares bear an annual distribution expense that is not borne by Institutional Class shares. 

Rolling Returns

On a monthly basis, the Fund outperformed the Russell 2000 in 87% of all 10-Year periods; 60% of all 5-Year periods; and 52% of all 1-Year periods.

For 100% of the periods, 10-year average annual total returns were greater than 5%.

Relative Returns: Monthly Rolling Average Annual Return Periods Since Inception Through 06/30/17

periods beating
the index(%)
fund
avg(%)
index
avg(%)
10-year
33/38
87 7.9 7.3
5-year
59/98
60 8.9 8.2
1-year
76/146
52 10.0 10.0

Absolute Returns: 10-Year Monthly Rolling Return PeriodsNumber of 10-Year Average Annual Return Periods Since the Fund’s Inception

Return Range Periods % in Range
> 10% 4 11
> 5% and ≤ 10% 34 89
> 0% and ≤ 5% 0 0
≤ 0% 0 0

The Fund averaged a 7.9% return over all 38 10-year monthly rolling return periods.

Market Cycle Performance

The Fund outperformed the Russell 2000 from the 6/23/15 index peak through current (6/30/17) and in one of the two previous full market cycle periods.
Peak-Peak - 07/13/07 - 04/29/11
Dividend Value21.6%
Russell 20006.6%

Peak-Peak - 04/29/11 - 06/23/15
Dividend Value40.8%
Russell 200058.5%

Peak-Current - 06/23/15 - 06/30/17
Dividend Value12.7%
Russell 200012.5%

Royce defines market cycles as those that have retreated at least 15% from a previous market peak and have rebounded to establish a new peak above the previous one. 

Royce defines market cycles as those that have retreated at least 15% from a previous market peak and have rebounded to establish a new peak above the previous one. 

Calendar Year Total Returns (%)

 

Growth of Investment

Value of $10,000 invested between 05/03/04 and 06/30/17

Dividend Value$30,640.82
Russell 2000$29,874.10

Portfolio Impactas of 06/30/17

SECTOR NAMEAVERAGE WEIGHT (%)TOTAL RETURN (%)CONTRIBUTION TO RETURN (%)
Financials
29.91
6.72
1.94
Industrials
28.69
3.69
1.08
Materials
12.75
4.69
0.60
Health Care
4.19
10.59
0.42
Utilities
1.56
5.20
0.09
Consumer Discretionary
8.95
0.83
0.08
Real Estate
0.21
17.49
0.03
Telecommunication Services
0.54
-3.00
-0.02
Consumer Staples
1.65
-1.75
-0.03
Energy
2.54
-5.71
-0.14
Information Technology
7.45
-5.34
-0.42
Cash
1.55
0.22
0.00

Top Contributors

INDUSTRYSECTORGAIN (%)
Capital MarketsFinancials1.49
MachineryIndustrials1.05
BanksFinancials0.44
Household DurablesConsumer Discretionary0.29
PharmaceuticalsHealth Care0.25

Top Detractors

INDUSTRYSECTORGAIN (%)
Specialty RetailConsumer Discretionary-0.30
Technology Hardware, Storage & PeripheralsInformation Technology-0.21
Energy Equipment & ServicesEnergy-0.19
Electronic Equipment, Instruments & ComponentsInformation Technology-0.15
Air Freight & LogisticsIndustrials-0.12

Top Contributors

COMPANYINDUSTRYSECTORGAIN (%)
IDEX CorporationMachineryIndustrials0.37
Carlyle Group L.P.Capital MarketsFinancials0.27
RecordatiPharmaceuticalsHealth Care0.27
Hunter DouglasHousehold DurablesConsumer Discretionary0.27
AptarGroupContainers & PackagingMaterials0.21

Top Detractors

COMPANYINDUSTRYSECTORGAIN (%)
Diebold NixdorfTechnology Hardware, Storage & PeripheralsInformation Technology-0.21
Reliance Steel & AluminumMetals & MiningMaterials-0.18
GenescoSpecialty RetailConsumer Discretionary-0.17
Helmerich & PayneEnergy Equipment & ServicesEnergy-0.15
C. H. Robinson WorldwideAir Freight & LogisticsIndustrials-0.14
SECTOR NAMEAVERAGE WEIGHT (%)TOTAL RETURN (%)CONTRIBUTION TO RETURN (%)
Financials
30.11
13.11
3.79
Industrials
27.41
11.74
3.14
Materials
12.51
6.56
0.84
Health Care
3.83
21.43
0.75
Utilities
1.55
12.66
0.20
Information Technology
7.81
1.29
0.16
Real Estate
0.18
37.66
0.06
Telecommunication Services
0.94
10.81
-0.08
Consumer Staples
1.98
-5.59
-0.11
Consumer Discretionary
9.40
-1.54
-0.17
Energy
2.58
-13.75
-0.38
Cash
1.67
0.37
0.01

Top Contributors

INDUSTRYSECTORGAIN (%)
Capital MarketsFinancials3.11
MachineryIndustrials2.17
Professional ServicesIndustrials0.58
PharmaceuticalsHealth Care0.53
Containers & PackagingMaterials0.41

Top Detractors

INDUSTRYSECTORGAIN (%)
Specialty RetailConsumer Discretionary-0.71
Energy Equipment & ServicesEnergy-0.36
IT ServicesInformation Technology-0.17
Food & Staples RetailingConsumer Staples-0.15
Wireless Telecommunication ServicesTelecommunication Services-0.14

Top Contributors

COMPANYINDUSTRYSECTORGAIN (%)
RecordatiPharmaceuticalsHealth Care0.50
ManpowerGroupProfessional ServicesIndustrials0.50
KKR & Co. L.P.Capital MarketsFinancials0.48
IDEX CorporationMachineryIndustrials0.44
Hunter DouglasHousehold DurablesConsumer Discretionary0.42

Top Detractors

COMPANYINDUSTRYSECTORGAIN (%)
Helmerich & PayneEnergy Equipment & ServicesEnergy-0.28
GenescoSpecialty RetailConsumer Discretionary-0.22
Compass Minerals InternationalMetals & MiningMaterials-0.22
Western UnionIT ServicesInformation Technology-0.19
Cato Corporation (The) Cl. ASpecialty RetailConsumer Discretionary-0.18
SECTOR NAMEAVERAGE WEIGHT (%)TOTAL RETURN (%)CONTRIBUTION TO RETURN (%)
Financials
29.65
32.12
8.95
Industrials
26.42
30.85
7.98
Materials
11.96
16.30
2.15
Information Technology
8.86
15.99
1.57
Consumer Discretionary
9.91
5.91
0.78
Health Care
3.72
13.26
0.45
Energy
2.35
13.03
0.29
Consumer Staples
2.33
-1.78
0.04
Real Estate
0.17
11.82
0.02
Utilities
1.48
-3.85
-0.07
Telecommunication Services
1.25
5.73
-0.18
Cash
1.92
0.55
0.01

Top Contributors

INDUSTRYSECTORGAIN (%)
Capital MarketsFinancials5.65
MachineryIndustrials4.13
BanksFinancials2.24
Professional ServicesIndustrials1.68
Electronic Equipment, Instruments & ComponentsInformation Technology0.98

Top Detractors

INDUSTRYSECTORGAIN (%)
Specialty RetailConsumer Discretionary-0.86
Wireless Telecommunication ServicesTelecommunication Services-0.17
Health Care Providers & ServicesHealth Care-0.12
Water UtilitiesUtilities-0.09
Multiline RetailConsumer Discretionary-0.09

Top Contributors

COMPANYINDUSTRYSECTORGAIN (%)
ManpowerGroupProfessional ServicesIndustrials1.13
KKR & Co. L.P.Capital MarketsFinancials0.93
Quaker ChemicalChemicalsMaterials0.77
Lazard Cl. ACapital MarketsFinancials0.73
First Republic BankBanksFinancials0.67

Top Detractors

COMPANYINDUSTRYSECTORGAIN (%)
Cato Corporation (The) Cl. ASpecialty RetailConsumer Discretionary-0.32
Stein MartSpecialty RetailConsumer Discretionary-0.19
GenescoSpecialty RetailConsumer Discretionary-0.17
Telephone and Data SystemsWireless Telecommunication ServicesTelecommunication Services-0.17
Buckle (The)Specialty RetailConsumer Discretionary-0.15
SECTOR NAMEAVERAGE WEIGHT (%)TOTAL RETURN (%)CONTRIBUTION TO RETURN (%)
Industrials
24.15
31.15
8.35
Financials
26.46
28.50
8.21
Health Care
4.01
60.72
2.20
Information Technology
11.36
16.00
1.74
Materials
11.90
8.02
0.61
Consumer Staples
2.57
13.36
0.61
Utilities
1.07
37.41
0.47
Real Estate
0.45
83.02
0.18
Telecommunication Services
1.20
15.61
-0.11
Consumer Discretionary
10.78
-4.30
-0.55
Energy
3.46
-48.90
-4.42
Cash
2.56
0.73
0.02
Unclassified
0.03
-34.91
0.02

Top Contributors

INDUSTRYSECTORGAIN (%)
MachineryIndustrials4.83
BanksFinancials3.00
Capital MarketsFinancials2.83
InsuranceFinancials1.91
Professional ServicesIndustrials1.19

Top Detractors

INDUSTRYSECTORGAIN (%)
Energy Equipment & ServicesEnergy-4.21
Specialty RetailConsumer Discretionary-1.96
Metals & MiningMaterials-0.66
Multiline RetailConsumer Discretionary-0.48
Technology Hardware, Storage & PeripheralsInformation Technology-0.37

Top Contributors

COMPANYINDUSTRYSECTORGAIN (%)
Worthington IndustriesMetals & MiningMaterials0.98
Quaker ChemicalChemicalsMaterials0.95
First Republic BankBanksFinancials0.94
RecordatiPharmaceuticalsHealth Care0.87
John Bean TechnologiesMachineryIndustrials0.79

Top Detractors

COMPANYINDUSTRYSECTORGAIN (%)
Allegheny TechnologiesMetals & MiningMaterials-1.24
TransoceanEnergy Equipment & ServicesEnergy-1.19
TidewaterEnergy Equipment & ServicesEnergy-0.71
Artisan Partners Asset Management Cl. ACapital MarketsFinancials-0.57
Helmerich & PayneEnergy Equipment & ServicesEnergy-0.57
SECTOR NAMEAVERAGE WEIGHT (%)TOTAL RETURN (%)CONTRIBUTION TO RETURN (%)
Financials
26.42
119.27
29.21
Industrials
23.15
107.63
23.89
Information Technology
10.55
99.13
9.08
Consumer Discretionary
10.90
39.44
5.79
Materials
12.01
35.99
4.53
Health Care
4.09
125.01
4.25
Consumer Staples
2.62
82.61
2.99
Real Estate
0.84
184.68
1.13
Utilities
0.68
50.31
0.53
Telecommunication Services
0.96
155.96
0.20
Energy
4.13
-10.59
-0.10
Cash
3.44
0.85
0.02
Unclassified
0.20
20.51
0.69

Top Contributors

INDUSTRYSECTORGAIN (%)
Capital MarketsFinancials17.56
MachineryIndustrials11.17
InsuranceFinancials5.71
Electronic Equipment, Instruments & ComponentsInformation Technology5.00
BanksFinancials4.06

Top Detractors

INDUSTRYSECTORGAIN (%)
Diversified Consumer ServicesConsumer Discretionary-0.94
Multiline RetailConsumer Discretionary-0.49
Energy Equipment & ServicesEnergy-0.28
Industrial ConglomeratesIndustrials-0.07
SoftwareInformation Technology-0.07

Top Contributors

COMPANYINDUSTRYSECTORGAIN (%)
PandoraTextiles, Apparel & Luxury GoodsConsumer Discretionary2.55
KKR & Co. L.P.Capital MarketsFinancials1.76
Worthington IndustriesMetals & MiningMaterials1.76
ManpowerGroupProfessional ServicesIndustrials1.75
Quaker ChemicalChemicalsMaterials1.58

Top Detractors

COMPANYINDUSTRYSECTORGAIN (%)
TransoceanEnergy Equipment & ServicesEnergy-1.14
Gold Fields ADRMetals & MiningMaterials-0.82
Allegheny TechnologiesMetals & MiningMaterials-0.80
Strayer EducationDiversified Consumer ServicesConsumer Discretionary-0.55
Atwood OceanicsEnergy Equipment & ServicesEnergy-0.50

Risk

Below Average Volatility vs. Peer Group as of 06/30/17

The Fund has a below average volatility within its peer group of 948 Small/Mid-Cap Funds based on 5-year rolling standard deviation.

Down Market Performance Comparisonas of 06/30/17

The Fund outperformed the Russell 2000 during all three downturns of 15% or more from the index’s prior historical high since the Fund’s inception.

Market Downturns (%)

DownMarketImg
Outperformed in 13 out of 16 down quarters.

Russell 2000 Down Quarters

QUARTER ENDRUSSELL 2000 (%)DIVIDEND VALUE (%)SPREAD (%)
03/31/16-1.5+5.0+6.5
09/30/15-11.9-10.3+1.6
09/30/14-7.4-7.3+0.1
06/30/12-3.5-6.3-2.8
09/30/11-21.9-19.4+2.5
06/30/11-1.6-1.4+0.2
06/30/10-9.9-6.8+3.1
03/31/09-15.0-9.0+6.0
12/31/08-26.1-25.5+0.6
09/30/08-1.1-3.6-2.5
03/31/08-9.9-3.6+6.3
12/31/07-4.6-4.7-0.1
09/30/07-3.1-1.8+1.3
06/30/06-5.0-3.5+1.5
03/31/05-5.3-1.6+3.7
09/30/04-2.9+1.4+4.3

Capture Ratios Fund's First Full Quarter (06/30/04) to 06/30/17

Upside Capture Ratio measures a manager's performance in up markets relative to the Fund's benchmark. It is calculated by measuring the Fund's performance in quarters when the benchmark goes up and dividing it by the benchmark's return in those quarters.

Downside Capture Ratio measures a manager's performance in down markets relative to the Fund's benchmark. It is calculated by measuring the Fund's performance in quarters when the benchmark goes down and dividing it by the benchmark's return in those quarters.

Long Term Risk Measurementas of 06/30/17

Over the past 10 years, the Fund outperformed the Russell 2000 Index with lower volatility.
Over the past 5 years, the Fund produced lower volatility than the Russell 2000 Index.
Over the past 3 years, the Fund produced lower volatility than the Russell 2000 Index.
From the Fund's inception, the Fund outperformed the Russell 2000 Index with lower volatility.

Go to Relative Risk Spectrum Tool

Morningstar Statistical Measures as of 06/30/17

The Fund produced lower volatility than the Russell 2000 and 50% of small/mid-cap objective funds, as shown by its standard deviation.
The Fund beat the Russell 2000 on a risk-adjusted basis, as shown by its Sharpe ratio. In addition, the Fund produced lower volatility than the Russell 2000 and 50% of small/mid-cap objective funds, as shown by its standard deviation.
The Fund beat the Russell 2000 and performed within the top 50% of small/mid-cap objective funds on a risk-adjusted basis, as shown by its Sharpe ratio. In addition, the Fund produced lower volatility than the Russell 2000 and 75% of small/mid-cap objective funds, as shown by its standard deviation.
Sharpe RatioStandard Deviation
Dividend Value0.4517.34
Russell 20000.4120.13
Category Median0.4219.02
Best Quartile Breakpoint0.4717.84

Category Median and Best Quartile Breakpoint based on 779 small/mid-cap objective funds (oldest class only) with at least ten years of history.
Sharpe Ratio Standard Deviation
Dividend Value
Russell 2000
Category Median
Best Quartile Breakpoint

Composition

Morningstar Style Map™as of 03/31/17

mstar-RDIIX

The Morningstar Style Map is the Morningstar Style Box™ with the center 75% of fund holdings plotted as the Morningstar Ownership Zone™. The Morningstar Style Box is designed to reveal a fund's investment strategy. The Morningstar Ownership Zone provides detail about a portfolio's investment style by showing the range of stock sizes and styles. The Ownership Zone is derived by plotting each stock in the portfolio within the proprietary Morningstar Style Box. The shaded area represents the center 75% of the Fund's assets while the plot point in the middle represents the weighted average of its holdings. Over time, the shape and location of a fund's ownership zone may vary.

Portfolio Diagnosticsas of 06/30/17

  RDIIX Russell 2000
Average Market Cap
4.26B
1.63B
97%
-
2016 Portfolio Turnover
21%
-
Weighted Average P/E,
20.2x
21.7x
Weighted Average P/B
2.8x
2.2x
U.S. Investments (% of Net Assets)
72.9%
-
Non-U.S. Investments (% of Net Assets)
26.9%
-

Portfolio Allocation

  • Total
    Holdings
    106


SECTORS
RDIIX (%) RUSSELL
2000 (%)
Financials
29.8
18.2
Industrials
29.2
14.6
Materials
13.3
4.4
Consumer Discretionary
9.2
12.5
Information Technology
7.5
17.0
Health Care
4.7
15.0
Energy
2.7
3.6
Utilities
1.4
3.7
Consumer Staples
1.2
2.7
Telecommunication Services
0.5
0.9
Real Estate
0.2
7.5
Cash and Cash Equivalents
0.2
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Dentsply Sirona
2.6
KKR & Co. L.P.
2.3
ManpowerGroup
2.3
First Republic Bank
2.1
IDEX Corporation
2.1
Quaker Chemical
2.0
Donaldson Company
1.9
Reliance Steel & Aluminum
1.9
Expeditors International of Washington
1.9
FLIR Systems
1.8
Diebold Nixdorf
1.8
AptarGroup
1.8
TD Ameritrade Holding Corporation
1.6
Applied Industrial Technologies
1.6
Worthington Industries
1.6
Amerco
1.6
Ashmore Group
1.4
SEI Investments
1.4
HEICO Corporation Cl. A
1.4
Aqua America
1.4
Top 20 as % of Net Assets
36.5

SECTORS
RDIIX (%) RUSSELL
2000 (%)
Financials
29.8
18.2
Industrials
29.2
14.6
Materials
13.3
4.4
Consumer Discretionary
9.2
12.5
Information Technology
7.5
17.0
Health Care
4.7
15.0
Energy
2.7
3.6
Utilities
1.4
3.7
Consumer Staples
1.2
2.7
Telecommunication Services
0.5
0.9
Real Estate
0.2
7.5
Cash and Cash Equivalents
0.2
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Dentsply Sirona
2.6
KKR & Co. L.P.
2.3
ManpowerGroup
2.3
First Republic Bank
2.1
IDEX Corporation
2.1
Quaker Chemical
2.0
Donaldson Company
1.9
Reliance Steel & Aluminum
1.9
Expeditors International of Washington
1.9
FLIR Systems
1.8
Diebold Nixdorf
1.8
AptarGroup
1.8
TD Ameritrade Holding Corporation
1.6
Applied Industrial Technologies
1.6
Worthington Industries
1.6
Amerco
1.6
Ashmore Group
1.4
SEI Investments
1.4
HEICO Corporation Cl. A
1.4
Aqua America
1.4
Top 20 as % of Net Assets
36.5

Portfolio Holdings

View the complete list of holdings for this fund as of 06/30/17. Unaudited schedule of portfolio holdings is presented for informational purposes only.

Least Portfolio Overlap - U.S. Equity Funds

Greatest Portfolio Overlap - U.S. Equity Funds

Geographical Breakdown

Distributions

NAV & Distributions


Start DateEnd Date
to

Learn more about distributions

Distributions

RECORD
DATE
EX-DATE PAYABLE
DATE
INCOME ($) SHORT
TERM
GAINS ($)
LONG
TERM
GAINS ($)
RETURN OF
CAPITAL ($)
TOTAL ($) REINVEST
PRICE ($)
06/07/17 06/08/17 06/08/17 0.0300 - - - 0.0300 7.52
03/01/17 03/02/17 03/02/17 0.0200 - - - 0.0200 7.37
12/14/16 12/15/16 12/15/16 0.0323 - 0.6933 - 0.7256 7.17
09/07/16 09/08/16 09/08/16 0.0300 - - - 0.0300 7.40
06/01/16 06/02/16 06/02/16 0.0400 - - - 0.0400 7.11
03/02/16 03/03/16 03/03/16 0.0250 - - - 0.0250 6.77
12/16/15 12/17/15 12/17/15 0.0613 0.0406 0.6568 - 0.7587 6.75
09/02/15 09/03/15 09/03/15 0.0250 - - - 0.0250 7.61
06/03/15 06/04/15 06/04/15 0.0350 - - - 0.0350 8.38
03/04/15 03/05/15 03/05/15 0.0400 - - - 0.0400 8.12
12/16/14 12/17/14 12/17/14 0.0547 0.1160 0.3807 - 0.5514 7.89
09/03/14 09/04/14 09/04/14 0.0200 - - - 0.0200 8.96
06/04/14 06/05/14 06/05/14 0.0250 - - - 0.0250 8.93
03/05/14 03/06/14 03/06/14 0.0250 - - - 0.0250 8.88
12/04/13 12/05/13 12/05/13 0.0404 0.1345 0.3995 - 0.5744 8.55
09/04/13 09/05/13 09/05/13 0.0250 - - - 0.0250 8.39
06/05/13 06/06/13 06/06/13 0.0300 - - - 0.0300 8.16
03/06/13 03/07/13 03/07/13 0.0250 - - - 0.0250 7.87
12/05/12 12/06/12 12/06/12 0.0637 - 0.0175 - 0.0812 7.11
09/05/12 09/06/12 09/06/12 0.0150 - - - 0.0150 6.97

NAV History for

Fees & Expenses

Shareholder Fees (%)

(fees paid directly from your investment)

Maximum sales charge (load) imposed on purchases 0.00
Maximum deferred sales charge 0.00
Maximum sales charge (load) imposed on reinvested dividends 0.00
Redemption fee (as a percentage of amount redeemed on shares held for less than 180 days) 0.00

Annual Fund Operating Expenses (%)

(expenses that you pay each year as a percentage of the value of your investment)

Management fees 0.85
Distribution (12b-1) fees 0.00
Other expenses 2.27
Total annual Fund operating expenses 3.12
Fee waivers and/or expense reimbursements (2.23)
Total annual Fund operating expenses after fee waivers and/or expense reimbursements0.89
The information above reflects the Fund’s amended contractual management fee rate as of May 1, 2016. Royce & Associates has contractually agreed, without right of termination, to waive fees and/or reimburse expenses to the extent necessary to maintain the Institutional Class's net annual operating expenses (excluding brokerage commissions, taxes, interest, litigation expenses, acquired fund fees and expenses, and other expenses not borne in the ordinary course of business) at or below 0.89% through April 30, 2018.

Important Disclosure Information

This material is not authorized for distribution unless preceded or accompanied by a current prospectus. Please read the prospectus carefuly before investing or sending money. The Fund invests primarily in small-cap and 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.) The Fund’s broadly diversified portfolio does not ensure a profit or guarantee against loss. The Fund may invest up to 25% of its net assets (measured at the time of investment) in securities of companies headquartered in foreign countries, which may involve political, economic, currency, and other risks not encountered in U.S. investments. (Please see "Investing in Foreign Securities" in the prospectus.)

Sector weightings are determined using the Global Industry Classification Standard ("GICS"). GICS was developed by, and is the exclusive property of, Standard & Poor's Financial Services LLC ("S&P") and MSCI Inc. ("MSCI"). GICS is the trademark of S&P and MSCI. "Global Industry Classification Standard (GICS)" and "GICS Direct" are service marks of S&P and MSCI.

The Price-Earnings, or P/E, Ratio is calculated by dividing a company's share price by its trailing 12-month earnings-per-share (EPS). The Fund's P/E ratio calculation excludes companies with zero or negative earnings. The Price-to-Book, or P/B, Ratio is calculated by dividing a company's share price by its book value per share. Standard deviation is a statistical measure within which a fund's total returns have varied over time. The greater the standard deviation, the greater a fund's volatility. Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group. Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell© is a trademark of Russell Investment Group. The Russell 2000 is an unmanaged, capitalization-weighted index of domestic small-cap stocks. It measures the performance of the 2,000 smallest publicly traded U.S. companies in the Russell 3000 index. The performance of an index does not represent exactly any particular investment, as you cannot invest directly in an index. The performance of an index does not represent exactly any particular investment, as you cannot invest directly in an index.

Chuck Royce lead manager since 2007 (manager 2004-2007), Jay Kaplan since 2007

8/31/2012 12:00:00 AM

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