greater liquidity than many small-caps while also frequently boasting greater financial resources and business stability.

The underfollowed, often misunderstood micro-cap asset class, although more volatile, also offers unique opportunities, especially for patient managers with a focus on managing volatility.

Important Disclosure Information

The thoughts concerning recent market movements and future prospects for small-company stocks are solely those of Royce & Associates and, of course, there can be no assurance with regard to future market movements. No assurance can be given that the past performance trends as outlined above will continue in the future.

Standard deviation is a statistical measure within which a fund’s total returns have varied over time. The greater the standard deviation, the greater a fund’s volatility. Please read the prospectus for a more complete discussion on risk. All indexes referenced are unmanaged and capitalization-weighted. Each index’s return includes net reinvested dividends and/or interest income. Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group. The Russell 2000 Index is an index of domestic small-cap stocks that measures the performance of the 2,000 smallest publicly traded U.S. companies in the Russell 3000 Index. The Russell 1000 index is an index of domestic large-cap stocks. It measures the performance of the 1,000 largest publicly traded U.S. companies in the Russell 3000 index. The Russell 2000 Value and Growth indexes consist of the respective value and growth stocks within the Russell 2000 as determined by Russell Investments. The Russell 2500 Index is an index of the 2,500 smallest publicly traded U.S. companies in the Russell 3000 Index. The Russell Microcap Index includes 1,000 of the smallest securities in the small-cap Russell 2000 Index, along with the next smallest eligible securities as determined by Russell. The Russell Midcap Index measures the performance of the mid-cap segment of the U.S. equity universe. The Russell Top 200 Index measures the performance of the largest cap segment of the U.S. equity universe and includes approximately 200 of the largest securities based on a combination of market cap and current index membership. The performance of an index does not represent exactly any particular investment, as you cannot invest directly in an index.

1 Source: FactSet. The average of monthly Russell 2500 position weightings in the Russell 3000 from 12/31/85 through 12/31/13

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