Mutual Fund Summary Prospectus (497k)
18 March 2014 - 8:20AM
Edgar (US Regulatory)
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SUMMARY PROSPECTUS
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Royce Heritage Fund
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MAY 1, 2013
Investment Class Symbol: RHFHX | Service Class Symbol: RGFAX
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Before you invest, please review the Funds Statutory Prospectus and Statement of Additional Information dated May 1, 2013 and March 18, 2014, respectively. Each is incorporated by reference
(is legally considered part of this Summary Prospectus). Each contains more information about the Fund and its risks. The Funds Statutory Prospectus, Statement
of Additional Information, and other information about the Fund are available online at www.roycefunds.com/prospectus. You can also get this information at
no cost by calling Investor Services at (800) 221-4268, sending an e-mail request at www.roycefunds.com/contact, or by contacting your financial intermediary.
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www.roycefunds.com
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SUMMARY PROSPECTUS
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Royce Heritage Fund
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MAY 1, 2013
Investment Class Symbol: RHFHX | Service Class Symbol: RGFAX
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Investment Goal
Royce Heritage Funds investment goal is long-term growth of capital.
Fees and Expenses of the Fund
The following table presents the fees and expenses that you may pay if you buy and hold shares of the Fund.
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SHAREHOLDER FEES
(fees paid directly from your investment)
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Investment Class
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Service Class
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Institutional Class
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Maximum sales charge (load) imposed on purchases
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0.00%
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0.00%
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0.00%
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Maximum deferred sales charge
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0.00%
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0.00%
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0.00%
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Maximum sales charge (load) imposed on reinvested dividends
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0.00%
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0.00%
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0.00%
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Annual Trustees Feeapplies only to GiftShare Accounts
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$50
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$50
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N/A
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Redemption fee (as a percentage of amount redeemed
on shares held for less than 180 days)
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1.00%
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1.00%
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0.00%
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ANNUAL FUND OPERATING EXPENSES
(expenses that you pay each year as a percentage of the value of your investment)
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Management fees
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1.00%
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1.00%
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1.00%
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Distribution (12b-1) fees
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0.00%
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0.25%
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0.00%
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Other expenses
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0.20%
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0.21%
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0.20%
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Acquired fund fees and expenses
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0.05%
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0.05%
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0.05%
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Total annual Fund operating expenses
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1.25%
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1.51%
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1.25%
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Fee waivers and/or expense reimbursements
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0.00%
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0.00%
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(0.16)%
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Total annual Fund operating expenses after fee
waivers and/or expense reimbursements
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1.25%
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1.51%
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1.09%
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Royce has contractually agreed, without right of termination, to waive fees and/or reimburse expenses to the extent necessary to maintain the Institutional Classs
net annual operating expenses, other than acquired fund fees and expenses, at or below 1.04% through April 30, 2014.
Total annual Fund operating expenses may differ from the expense ratio in the Funds Financial Highlights because the highlights include only the Funds direct
operating expenses and do not include acquired fund fees and expenses, which reflect the estimated amount of the fees and expenses incurred indirectly by the
Fund through its investments in mutual funds, hedge funds, private equity funds, and other investment companies.
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EXAMPLE
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This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.
The example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods.
The example also assumes that your investment has a 5% return each year and that the Funds total operating expenses (net of fee waivers and/or
expense reimbursements for the Institutional Class in year one) remain the same. Although your actual costs may be higher or lower, based on the
assumptions your costs would be:
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Investment Class
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Service Class
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Institutional Class
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1 Year
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$127
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$154
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$111
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3 Years
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$397
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$477
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$381
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5 Years
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$686
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$824
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$671
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10 Years
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$1,511
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$1,802
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$1,497
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(Exclusive of $50 annual trustees fee per GiftShare Account.)
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Portfolio Turnover
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The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These
costs, which are not reflected in annual fund operating expenses or in the example, affect the Funds performance. During the most recent
fiscal year, the Funds portfolio turnover rate was 39% of the average value of its portfolio.
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Principal Investment Strategy
Royce & Associates, LLC (Royce), the Funds investment adviser,
invests the Funds assets primarily in the equity securities of
companies that it believes are trading significantly below its estimate
of their current worth. This assessment is based chiefly on balance
sheet quality and cash flow levels. Although the Fund may invest in
equity securities of any market capitalization, Royce expects that a
significant portion of the Funds assets may be invested in the equity
securities of micro-cap, small-cap, and/or mid-cap companies with
market capitalizations up to $5 billion.
Normally, the Fund invests at least 65% of its net assets in equity
securities. At least 75% of these securities will be issued by micro-cap,
small-cap, and/or mid-cap companies. Although the Fund
normally focuses on the securities of U.S. companies, it may invest
up to 35% of its net assets in foreign securities. While the Fund
anticipates that its investment in foreign securities will generally
be in securities of companies that are headquartered in developed
countries, the Fund may also invest up to 10% of its net assets in
the securities of companies that are headquartered in developing
countries. Developing countries, sometimes also referred to as
emerging markets countries, include every country in the world
other than the United States, Canada, Japan, Australia, New
Zealand, Hong Kong, Singapore, South Korea, Taiwan, Bermuda,
and Western European countries (as defined in the Funds Statement
of Additional Information).
In selecting securities for the Fund, Royce uses a bottom-up,
value approach. Royce primarily focuses on company-specific
criteria rather than on political, economic, or other country-specific
factors. The Fund may invest in other investment companies that
invest in equity securities. The Fund may sell securities to, among
other things, secure gains, limit losses, redeploy assets into what
Royce deems to be more promising opportunities and/or manage
cash levels in the Funds portfolio.
Primary Risks for Fund Investors
As with any mutual fund that invests in common stocks, Royce
Heritage Fund is subject to market riskthe possibility that
common stock prices will decline over short or extended periods
of time. As a result, the value of an investment in the Fund will
fluctuate, sometimes sharply and unpredictably, and an account
could lose money over short or long periods of time.
The prices of micro-cap, small-cap, and mid-cap securities are
generally more volatile and their markets are less liquid relative to
larger-cap securities. Therefore, the Fund may involve considerably
more risk of loss and its returns may differ significantly from funds
investing in larger-cap companies or other asset classes.
Investment in foreign securities involves risks that may not be
encountered in U.S. investments, including adverse political, social,
economic, or other developments that are unique to a particular
region or country. These risks may be heightened for developing
markets securities. Prices of foreign securities in particular countries
or regions may, at times, move in a different direction and/or be
more volatile than those of U.S. securities. Because the Fund does
not intend to hedge its foreign currency exposure, the U.S. dollar
value of the Funds investments may be harmed by declines in the
value of foreign currencies in relation to the U.S. dollar.
Royces estimate of a companys current worth may prove to
be inaccurate, or this estimate may not be recognized by other
investors, which could lead to portfolio losses. To the extent the
Fund overweights a single market sector or industry relative to its
benchmark index, its performance may be tied more directly to the
success or failure of a relatively smaller or less well-diversified group
of portfolio holdings.
Investments in the Fund are not bank deposits and are not insured
or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The following performance information provides an indication
of the risks of investing in the Fund. Past performance does not
indicate how the Fund will perform in the future. The Calendar
Year Total Returns chart shows performance year by year over the
last ten years (Service Class used for illustrative purposesreturns
differ by Class). The Annualized Total Returns table shows how
the Funds average annual total returns for various periods compare
with those of the Russell 2000 Index, the Funds benchmark index.
The Investment Class commenced operations on March 15, 2007.
Performance information prior to this date is for the Service Class.
The Institutional Class has not yet commenced operations. The
returns differ only to the extent that the Classes have different
expenses because all Classes invest in the same portfolio of securities.
CALENDAR YEAR TOTAL RETURNS
in Percentages (%)
Service Class
During the period shown in the bar chart, the highest return for a calendar quarter
was 29.02% (quarter ended 6/30/09) and the lowest return for a calendar quarter
was -24.91% (quarter ended 12/31/08).
2 | The Royce Fund
Summary Prospectus 2013
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ANNUALIZED TOTAL RETURNS
(12/31/12)
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1 Year
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5 Year
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10 Year
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Service Class
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Return Before Taxes
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14.30
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5.05
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11.12
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Return After Taxes on Distributions
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13.82
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4.63
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9.88
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Return After Taxes on Distributions and Sale of Fund Shares
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9.91
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4.27
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9.41
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Investment Class
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Return
Before Taxes
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14.61
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5.28
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11.24
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Russell 2000 Index (Reflects no deductions for fees, expenses, or taxes)
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16.35
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3.56
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9.72
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The table also presents the impact of taxes on the Funds returns
(Service Class again used for illustrative purposes). In calculating
these figures, we assumed that the shareholder was in the highest
federal income tax bracket in effect at the time of each distribution
of income or capital gains. We did not consider the impact of
state or local income taxes. Your after-tax returns depend on your
tax situation, so they may differ from the returns shown. This
information does not apply if your investment is in an individual
retirement account (IRA), a 401(k) plan, or is otherwise tax
deferred because such accounts are subject to income taxes only
upon distribution. Current month-end performance information
may be obtained at www.roycefunds.com or by calling Investor
Services at (800) 221-4268.
Certain immaterial adjustments were made to the net assets of the Fund at
12/30/11 for financial reporting purposes, and as a result the net asset values for
shareholder transactions on that date and the total returns based on those net
asset values differ from the adjusted net asset values and total returns reported in
the Financial Highlights.
Investment Adviser and Portfolio Management
Royce serves as investment adviser to the Fund. Charles M. Royce,
President and Co-Chief Investment Officer of Royce, serves as
the Funds lead portfolio manager. James J. Harvey and Steven
G. McBoyle manage the Fund with him. They are assisted by
Christopher D. Clark. Mr. Royce has managed the Fund since
its inception. Mr. Harvey became portfolio manager in 2010 and
previously served as assistant portfolio manager (2004-2010). Mr.
McBoyle became portfolio manager in 2012 and in 2011 served as
assistant portfolio manager. Mr. Clark became assistant portfolio
manager in 2011.
How to Purchase and Sell Fund Shares
Minimum initial investments for shares of the Funds Investment
and Service Classes purchased directly from The Royce Fund:
Account Type
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Minimum
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Regular Account-Investment Class
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$100,000
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Regular Account-Service Class
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$2,000
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IRA-Investment Class
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$100,000
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IRA-Service Class
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$1,000
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Automatic Investment or Direct Deposit Plan Accounts
Investment Class
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$100,000
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Automatic Investment or Direct Deposit Plan Accounts
Service Class
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$1,000
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401(k) Accounts
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None
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The minimum for subsequent investments is $50, regardless of account type.
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The minimum initial investment for Institutional Class shares
is $1,000,000. However, for employer-sponsored Retirement Plans
with plan level or omnibus accounts held on the books of the Fund,
there is no minimum initial investment requirement.
Retirement Plans include 401(k) plans, 457 plans, employer
sponsored 403(b) plans, defined benefit pension plans, profit sharing
plans, nonqualified deferred compensation plans, and other similar
employer-sponsored retirement plans and rollover accounts from
such plans to individual retirement vehicles, such as Traditional and
Roth IRAs. Retirement Plans do not include individual retirement
vehicles, such as Traditional and Roth IRAs, Coverdell Education
Savings Accounts, individual 403(b)(7) custodian accounts, Keogh
plans, or Section 529 college savings accounts. The exception to the
minimum initial investment does not apply to retail non-retirement
accounts, SEPs, SARSEPs, or SIMPLE IRAs.
You may sell shares in your account at any time and make requests
online, by telephone, and by mail. You may also purchase or sell
Fund shares through a third party, such as a discount or full-service
broker-dealer, bank, or other financial intermediary.
Tax Information
The Fund intends to make distributions that may be taxable as
ordinary income or capital gains.
Financial Intermediary Compensation
If you purchase the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund and its related companies may
pay the intermediary for the sale of Fund shares and related services.
These payments may create a conflict of interest by influencing
the broker-dealer or other intermediary and your salesperson to
recommend the Fund over another investment. Ask your salesperson
or visit your financial intermediarys website for more information.
The Royce Fund
Summary Prospectus 2013
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More information on The Royce Fund is available free upon
request, including the following:
Annual/Semiannual Reports
Additional information about a Funds investments, together with a discussion
of market conditions and investment strategies that significantly affected the
Funds performance, is available in the Funds annual and semiannual reports
to shareholders. These reports are also available online at
www.roycefunds.com.
Statement of Additional Information (SAI)
Provides more details about The Royce Fund and its policies. A current SAI is
available at
www.roycefunds.com/literature
and by phone. It is also on file
with the Securities and Exchange Commission (SEC) and is incorporated by
reference (is legally considered part of this prospectus).
To obtain more information:
By mail:
The Royce Funds,
745 Fifth Avenue, New York, NY 10151
By telephone:
(800) 221-4268
Through the Internet:
Prospectuses, applications, IRA forms, and additional
information are available through our website at
www.roycefunds.com/literature.
Text only versions of the Funds prospectus, SAI, and other documents filed
with the SEC can be viewed online or downloaded from
www.sec.gov.
You can also obtain copies of documents filed with the SEC by visiting the SECs
Public Reference Room in Washington, DC (telephone (202) 551-8090) or by
sending your request and a duplicating fee to the SECs Public Reference
Section, Washington, DC 20549-1520. You may also make your request by
e-mail at publicinfo@sec.gov after paying a duplicating fee.
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745 Fifth
Avenue | New York, NY 10151 | P (800) 221-4268 | www.roycefunds.com
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