Mutual Fund Summary Prospectus (497k)
March 17 2014 - 5:15PM
Edgar (US Regulatory)
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SUMMARY PROSPECTUS
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Royce European Smaller-Companies Fund
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JANUARY 15, 2014
Investment Class Symbol: RESNX
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Before you invest, please review the Funds Statutory Prospectus and Statement of Additional Information dated January 15, 2014 and March 18, 2014, respectively. Each is incorporated by
reference (is legally considered part of this Summary Prospectus). Each contains more information about the Fund and its risks. The Funds Statutory Prospectus,
Statement of Additional Information, and other information about the Fund are available online at www.roycefunds.com/prospectus. You can also get this
information at no cost by calling Investor Services at (800) 221-4268, sending an e-mail request at www.roycefunds.com/contact, or by contacting your financial
intermediary.
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www.roycefunds.com
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SUMMARY PROSPECTUS
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Royce European Smaller-Companies Fund
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JANUARY 15, 2014
Investment Class Symbol: RESNX
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Investment Goal
Royce European Smaller-Companies Funds investment goal is long-term growth of capital.
Fees and Expenses of the Fund
The following table presents the fees and expenses that you may pay if you buy and hold shares of the Fund.
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SHAREHOLDER FEES
(fees paid directly from your investment)
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Investment Class
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Maximum sales charge (load) imposed on purchases
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0.00%
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Maximum deferred sales charge
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0.00%
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Maximum sales charge (load) imposed on reinvested dividends
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0.00%
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Redemption fee (as a percentage of amount redeemed on shares held for less than 180 days)
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2.00%
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ANNUAL FUND OPERATING EXPENSES
(expenses that you pay each year as a percentage of the value of your investment)
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Management fees
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1.25%
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Distribution (12b-1) fees
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0.00%
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Other expenses
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0.63%
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Acquired fund fees and expenses
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0.03%
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Total annual Fund operating expenses
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1.91%
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Fee waivers and/or expense reimbursements
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(0.44)%
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Total annual Fund operating expenses after fee waivers and/or expense reimbursements
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1.47%
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Royce has contractually agreed, without right of termination, to waive fees and/or reimburse expenses to the extent necessary to maintain the Investment Class 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 1.44% through April 30, 2015.
Total annual Fund operating expenses may differ from the expense ratio in the Funds Financial Highlights because the highlights include only the Funds direct
operating expenses and do not include acquired fund fees and expenses, which reflect the estimated amount of the fees and expenses incurred indirectly by the Fund
through its investments in mutual funds, hedge funds, private equity funds, and other investment companies.
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EXAMPLE
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This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.
The example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods.
The example also assumes that your investment has a 5% return each year and that the Funds total operating expenses (net of fee waivers and/or expense
reimbursements for the period noted above) remain the same. Although your actual costs may be higher or lower, based on the assumptions your costs would be:
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Investment Class
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1 Year
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$150
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3 Years
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$542
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5 Years
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$976
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10 Years
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$2,184
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Portfolio Turnover
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The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These
costs, which are not reflected in annual fund operating expenses or in the example, affect the Funds performance. During the most recent
fiscal year, the Funds portfolio turnover rate was 22% of the average value of its portfolio.
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Royce European Smaller-Companies Fund
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Principal Investment Strategies
Royce & Associates, LLC (Royce), the Funds investment
adviser, invests the Funds assets primarily in the equity securities
of companies located in Europe, i.e., companies that are
headquartered, organized, and/or whose stock principally trades
in Europe, with market capitalizations up to $5 billion. Royce
invests the Funds assets in companies that it believes have excellent
business strengths and/or prospects for growth, high internal rates
of return and low leverage, and that are trading significantly below
its estimate of their current worth.
Normally, the Fund invests at least 80% of its net assets in the
equity securities of companies that are located in Europe with
market capitalizations up to $5 billion at the time of investment.
From time to time, a substantial portion of the Funds assets may
be invested in European companies located in a single country. No
more than 35% of the Funds net assets may be invested in the
securities of companies headquartered in developing countries.
Generally, developing countries, sometimes also referred to as
emerging market countries, include every country in the world other
than the United States, Canada, Japan, Australia, New Zealand,
Hong Kong, Singapore, South Korea, Taiwan, Bermuda, and
Western European countries (as defined in the Funds Statement of
Additional Information). The Fund does not expect to purchase or
sell foreign currencies to hedge against declines in the U.S. dollar or
to lock in the value of any foreign securities that it purchases.
In selecting securities for the Fund, Royce uses a bottom-up,
value approach. Royce primarily focuses on company-specific
criteria rather than on political, economic, or other country-specific
factors. The Fund may invest in other investment companies that
invest in equity securities. The Fund may sell securities to, among
other things, secure gains, limit losses, redeploy assets into what
Royce deems to be more promising opportunities and/or manage
cash levels in the Funds portfolio.
Primary Risks for Fund Investors
As with any mutual fund that invests in common stocks, Royce
European Smaller-Companies Fund is subject to market riskthe
possibility that common stock prices will decline over short or
extended periods of time. As a result, the value of your investment
in the Fund will fluctuate, sometimes sharply and unpredictably,
and you could lose money over short or long periods of time.
In addition to general market risk, foreign securities may be
subject to different risks than investments in U.S. securities,
including adverse political, social, economic, or other developments
that are unique to a particular country or region. Prices of foreign securities in particular countries or regions may, at times, move in
a different direction and/or be more volatile than those of U.S.
securities. The Funds investments are usually denominated in or
tied to the currencies of the countries in which they are primarily
traded. Because the Fund does not intend to hedge its foreign
currency exposure, the U.S. dollar value of the Funds investments
may be harmed by declines in the value of foreign currencies in
relation to the U.S. dollar. This may occur even if the value of
the investment in the currencys home country has not declined.
These risk factors may affect the prices of foreign securities issued
by companies headquartered in developing countries more than
those headquartered in developed countries. For example, many
developing countries have in the past experienced high rates of
inflation or sharply devalued their currencies against the U.S. dollar,
thereby causing the value of investments in companies located
in those countries to decline. Transaction costs are often higher
in developing countries, and there may be delays in settlement
procedures. To the extent that the Funds investment in the securities
of foreign companies consists of non-U.S. headquartered companies
that trade on a U.S. exchange, some or all of the above-stated risks
of investing in foreign companies may not apply. Likewise, to
the extent the Fund invests in the securities of companies whose
economic fortunes are linked to developing countries but do not
meet the Funds definition of a developing country security, the
percentage of the Funds portfolio that is exposed to developing
country risks may be greater than the percentage of the Funds assets
that the Fund defines as representing developing country securities.
The prices of smaller-capitalization securities are generally
more volatile and their markets are less liquid relative to larger-capitalization
securities. Therefore, the Fund may involve more
risk of loss and its returns may differ significantly from funds
investing in larger-capitalization companies or other asset classes.
In addition, as of September 30, 2013 the Fund held less than 85
portfolio securities. The Funds investment in a limited number
of issuers and its potential industry and sector overweights may
involve more risk to investors than a more broadly diversified
portfolio of micro-cap, small-cap, and mid-cap securities because
it may be more susceptible to any single corporate, economic,
political, regulatory, or market event.
Royces estimate of a companys current worth may prove to
be inaccurate, or this estimate may not be recognized by other
investors, which could lead to portfolio losses.
Investments in the Fund are not bank deposits and are not
insured or guaranteed by the Federal Deposit Insurance Corporation
or any other government agency.
2 | The Royce Fund
Summary Prospectus 2014
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Royce European Smaller-Companies Fund
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Performance
The following performance information provides an indication
of the risks of investing in the Fund. Past performance does not
indicate how the Fund will perform in the future. The Calendar
Year Total Returns chart shows performance year by year since the
Funds inception (because the inception date for the Investment
Class is after December 31, 2012, the Service Class is used for
illustrative purposesreturns differ by class). The Annualized
Total Returns table shows how the Funds average annual total
returns for various periods compare with those of the Russell
Europe Small Cap Index, the Funds benchmark index. Because
the inception date for the Investment Class is after December
31, 2013, performance information is for the Service Class.
The returns will differ only to the extent that the Classes have
different expenses because each Class invests in the same portfolio
of securities.
The table also presents the impact of taxes on the Funds returns
(Service Class, again used for illustrative purposes). In calculating
these figures, we assumed that the shareholder was in the highest
federal income tax bracket in effect at the time of each distribution
of income or capital gains. We did not consider the impact of
state or local income taxes. Your after-tax returns depend on your
tax situation, so they may differ from the returns shown. This
information does not apply if your investment is in an individual
retirement account (IRA), a 401(k) plan, or is otherwise tax
deferred because such accounts are subject to income taxes only
upon distribution. Current month-end performance information
may be obtained at www.roycefunds.com or by calling Investor
Services at (800) 221-4268.
CALENDAR YEAR TOTAL RETURNS
in Percentages (%)
Service Class
During the period shown in the bar chart, the highest return for a calendar quarter
was 34.11% (quarter ended 6/30/09) and the lowest return for a calendar quarter
was -28.83% (quarter ended 12/31/08).
ANNUALIZED TOTAL RETURNS
(12/31/12)
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1 Year
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5 Year
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Since Inception
(12/29/06)
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Service Class
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Return Before Taxes
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23.83
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2.44
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2.27
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Return After Taxes on Distributions
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23.56
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2.14
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2.02
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Return After Taxes on Distributions and Sale of Fund Shares
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15.84
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2.00
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1.87
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Russell Europe Small Cap Index (Reflects no deductions for fees, expenses, or taxes)
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28.93
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-3.44
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-2.17
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Investment Adviser and Portfolio Management
Royce serves as investment adviser to the Fund. David A. Nadel,
Portfolio Manager and Director of International Research of Royce,
and Mark Rayner co-manage the Fund. Mr. Nadel began to manage
the Fund in 2011 and previously served as assistant portfolio
manager (2009-2011). Mr. Rayner served as the assistant portfolio
manager from May 1, 2013 through October 21, 2013.
How to Purchase and Sell Fund Shares
Minimum initial investments for shares of the Funds Investment
Class purchased directly from The Royce Fund:
Account Type
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Minimum
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Regular Account
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$100,000
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IRA
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$100,000
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Automatic Investment or Direct Deposit Plan Accounts
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$100,000
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401(k) Accounts
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None
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The minimum for subsequent investments is $50, regardless of account type.
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You may sell shares in your account at any time and make requests
online, by telephone, and by mail. You may also purchase or sell
Fund shares through a third party, such as a discount or full-service
broker-dealer, bank, or other financial intermediary.
Tax Information
The Fund intends to make distributions that may be taxable as
ordinary income or capital gains.
Financial Intermediary Compensation
If you purchase the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund and its related companies may
pay the intermediary for the sale of Fund shares and related services.
These payments may create a conflict of interest by influencing
the broker-dealer or other intermediary and your salesperson to
recommend the Fund over another investment. Ask your salesperson
or visit your financial intermediarys website for more information.
The Royce Fund
Summary Prospectus 2014
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More information on The Royce Fund is available free upon
request, including the following:
Annual/Semiannual Reports
Additional information about a Funds investments, together with a discussion
of market conditions and investment strategies that significantly affected the
Funds performance, is available in the Funds annual and semiannual reports
to shareholders. These reports are also available online at
www.roycefunds.com.
Statement of Additional Information (SAI)
Provides more details about The Royce Fund and its policies. A current SAI is
available at
www.roycefunds.com/literature
and by phone. It is also on file
with the Securities and Exchange Commission (SEC) and is incorporated by
reference (is legally considered part of this prospectus).
To obtain more information:
By mail:
The Royce Funds,
745 Fifth Avenue, New York, NY 10151
By telephone:
(800) 221-4268
Through the Internet:
Prospectuses, applications, IRA forms, and additional
information are available through our website at
www.roycefunds.com/literature.
Text only versions of the Funds prospectus, SAI, and other documents filed
with the SEC can be viewed online or downloaded from
www.sec.gov.
You can also obtain copies of documents filed with the SEC by visiting the SECs
Public Reference Room in Washington, DC (telephone (202) 551-8090) or by
sending your request and a duplicating fee to the SECs Public Reference
Section, Washington, DC 20549-1520. You may also make your request by
e-mail at publicinfo@sec.gov after paying a duplicating fee.
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745 Fifth
Avenue | New York, NY 10151 | P (800) 221-4268 | www.roycefunds.com
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RES-I-0314
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