Royce Low-Priced Stock Fund (RLP) seeks long-term growth of capital. The Fund uses a disciplined value approach to invest primarily in the equity securities of small-cap and micro-cap companies (those with market capitalizations up to $2.5 billion) whose average cost per share in the Fund’s portfolio is less than $25. We believe that investors in the Fund should have a long-term investment horizon of at least three years. Whitney George manages the Fund, assisted by James (Chip) Skinner, III.