article 01-14-2012

Our Funds Are Open, But Some Are More Open Than Others

Our Funds remain open to all investors, with the exception of Royce Premier Fund and Royce Special Equity Fund, which are currently available only to existing investors, financial advisors with clients in the Fund, certain pre-approved asset allocation based investment programs and certain pre-approved "Retirement Plans,".

Each Fund made this change in an effort to moderate cash flows. Stable cash flows are critical to managing each Fund’s portfolio. Thus, we thought it was in the best interests of the Funds’ existing shareholders and relationships to moderate net cash flows into these Funds at this time.

In general, Royce's policy is to allow Registered Investment Advisors (RIA) to put new clients in the Fund as long as the RIA had existing clients invested in the fund on or prior to the date the Fund was open only to existing shareholders and existing relationships.

Royce is limiting availability of Royce Premier Fund and Royce Special Equity Fund to existing relationships including:

  • Existing investors—in their own name or as beneficial owner of shares held in someone else’s name—for example, a nominee, custodian, or omnibus account holding shares for the benefit of an investor would not be eligible to open a new account for its own benefit or for the benefit of another investor, but the investor would be eligible to open a new account in that Fund;
  • Registered Investment Advisors with existing clients in the Fund. Registered Investment Advisors who currently have clients in the Fund may open new accounts as well as add to existing accounts in whichever Fund had been held;
  • Certain pre-approved asset allocation based investment programs and, for a limited time, initial investments by certain institutional investors approved by the Funds’ investment adviser;
  • Certain pre-approved “Retirement Plans” offered through certain broker-dealers with accounts held on the books of the Fund through omnibus account arrangements (either at the plan level or at the level of the financial intermediary). “Retirement Plans” include 401(k) plans, 457 plans, employer sponsored 403(b) plans, defined benefit pension plans, profit sharing plans, nonqualified deferred compensation plans, other similar employer-sponsored retirement plans, and rollover accounts from such plans to individual retirement vehicles such as Traditional and Roth IRAs.

Frequently Asked Questions

If a wrap program already has clients in funds that are only open to existing relationships, will they continue to be available to new investors in that product? 

Yes.

Will these funds be available to retirement plans?

Yes, but only to existing plans, not to new plans.

Will these funds be open to new retail clients?

No.

Are all other Royce Funds open for investment to new investors?

Yes.

Important Disclosure Information

Please read the prospectus carefully before investing or sending money. Click here for a prospectus and other information about each of The Royce Funds.

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