Royce European Smaller-Companies Returns -20.3% in 2011

Royce European Smaller-Companies Fund (RES) seeks long-term growth of capital. Royce uses a disciplined value approach to invest primarily in the equity securities of companies located, or whose securities trade, in Europe with market capitalizations up to $5 billion. We believe that investors in the Fund should have a long-term investment horizon of at least three years. Chuck Royce and David Nadel co-manage the Fund.