Royce Financial Services Returns -11.3% in 2011

Royce Financial Services Fund (RFS) seeks long-term growth of capital. Royce uses a disciplined value approach to invest primarily in a diversified portfolio
of the equity securities of micro-cap, small-cap and/or mid-cap companies principally engaged in the financial services industry, such as commercial and industrial banks, savings and loan associations, companies engaged in consumer and industrial finance, insurance, securities brokerage and investment management. We believe that investors in the Fund should have a long-term investment horizon of at least three years. Chuck Royce manages the Fund, assisted by Chris Flynn.

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