Royce International Premier Fund (RIP) seeks long-term growth of capital. The Fund invests in a limited number (generally less than 100) of the equity securities of small-cap companies, those with stock market capitalizations from $500 million to $2.5 billion, issued by non-U.S. (“international”) companies—i.e. companies domiciled outside of the United States. Royce looks for companies that it considers “premier”—those that 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. We believe that investors in the Fund should have a long-term investment horizon of at least three years. David Nadel manages the Fund assisted by George Wyper.