Important Changes for Royce Select Funds

NEW YORK--(BUSINESS WIRE)--Important Changes for Royce Select Fund I, Royce Select Fund II, Royce Global Select Long/Short Fund, Royce Enterprise Select Fund, and Royce Opportunity Select Fund

As a result of the proposals approved at Meetings of Shareholders held on September 27, 2012, changes become effective on September 28, 2012 to the Select Funds’ so that each portfolio will have a traditional management fee structure consistent with other series of The Royce Fund. Previously, for its services and for paying certain other ordinary operating expenses, Royce received from each Select Fund a performance fee of 12.5% of such Fund’s pre-fee total return, subject to a high watermark test. The new fee rates are as follows:

Fund	Average Fee Rate on Average Net Assets
Royce Select Fund I	1.00% of the first $2 billion
Royce Enterprise Select Fund	0.95% of the next $2 billion
Royce Opportunity Select Fund	0.90% of the next $2 billion
	0.85% of any additional average net assets
Royce Select Fund II	1.25% of the first $2 billion
Royce Global Select Long/Short Fund	1.20% of the next $2 billion
	1.15% of the next $2 billion
	1.10% of any additional average net assets

Since each of the Select Funds is currently below its former respective high watermark (see below), Royce will waive its compensation for services provided by it under the new agreements until a respective Select Fund’s pre-fee cumulative total return exceeds its pre-fee total return as of the day on which a fee was last accrued under its former Investment Advisory Agreement, and agrees to reimburse certain ordinary operating expenses as well.

	NAV 9/26/12	NAV required to reach high watermark	% off high watermark
Royce Select Fund I	$18.07	$19.40	-7.36%
Royce Select Fund II	10.86	12.40	-14.18
Royce Global Select Long/Short Fund	16.82	19.89	-18.25
Royce Enterprise Select Fund	10.94	11.32	-3.47
Royce Opportunity Select Fund	12.64	13.53	-7.04

Thereafter, Royce has agreed to waive its compensation for services provided by it under the new agreements and/or agrees to reimburse expenses to the applicable Select Fund with respect to each subsequent annual period through the annual period ending April 30, 2015 to the extent necessary so that the applicable Select Fund’s annual operating expenses are not more than 1.24% of the average net assets for Royce Select Fund I, Royce Enterprise Select Fund, and Royce Opportunity Select Fund, and 1.49% of the average net assets for Royce Select Fund II and Royce Global Select Long/Short Fund.

Under the new fee structure, the Select Funds are available to all U.S. investors. (Under the Funds’ previous fee structure, the Select Funds were only available to “qualified investors.”)

Finally, Royce Select Fund I may now invest up to 15% of its net assets in foreign securities, which Royce believes will give it more flexibility to achieve the Fund’s investment goals. Of course, there is no guarantee these changes will enable the Fund to achieve these goals.

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 Funds can be found in the prospectus. To obtain a prospectus, please call Investor Services at 1-800-221-4268 or visit www.roycefunds.com. Please read the prospectus carefully before investing.

The Funds invest primarily in the equity securities of small-cap and/or micro-cap companies, which may involve considerably more risk than investments in securities of larger-cap companies. (Please see “Primary Risks for Fund Investors” in the prospectus). Each Fund may also invest varying amounts of their respective net assets in foreign securities, which may involve political, economic, currency and other risks not encountered in U.S. investments (Please see “Investing in Foreign Securities” in the prospectus). Distributor: Royce Fund Services, Inc., a member of FINRA and SIPC.