Royce Small-Cap Special Equity Fund

The fund's adviser chiefly directs its investments toward the shares of companies with small market capitalizations. Under normal operating conditions, at least 80% of the fund's total value is committed to equity securities of such small-cap firms. Although the portfolio predominantly targets U.S. enterprises, it maintains the option to allocate up to 10% of its net assets (measured at the point of acquisition) to investments in companies headquartered internationally.