Updated Prospectuses Now Available: Lower Minimum Initial Investments for Certain Investment Class Shares, Lower Management Fees for Two Funds, and Revised Manager Appointments

NEW YORK, May 2, 2016 /PRNewswire/ -- We wanted to let you know about some important and exciting changes we are making to certain of The Royce Funds effective with the Prospectuses dated May 1, 2016.

First, we are lowering the minimum initial investment for certain Funds' Investment Class shares. Royce's President, Chris Clark, said, "These lower minimums mark an important change, one that makes it easier to invest in a larger number of Royce portfolios."

All Royce Funds with Investment Classes now have the same minimum initial investment of $2,000. This affects several portfolios, including Royce Dividend Value, Heritage, Low-Priced Stock, Small-Cap Value, Smaller-Companies Growth, and Small-Cap Leaders Funds.

We have also reduced the management fees for Royce Dividend Value and Heritage Funds:

• Royce Dividend Value Fund's management fee is being lowered from 1.00% to 0.85%
• Royce Heritage Fund's management fee is also being lowered from 1.00% to 0.85%

In addition, new portfolio management assignments, including a number of promotions, take effect for the following Funds:

Heritage—Steven McBoyle becomes sole manager of the Fund. He has been its portfolio manager since 2012, working with Chuck Royce.

International Premier—David Nadel is the lead portfolio manager, with Portfolio Manager Mark Rayner managing it with him. David has been portfolio manager since the Fund's inception on 12/31/10 while Mark previously was assistant portfolio manager (2014-2015).

Micro-Cap and Royce Capital Fund–Micro-Cap Portfolio—Jim Stoeffel is the Fund's lead portfolio manager, and Portfolio Manager Brendan Hartman manages the Fund with him. Jim was previously co-manager (2015) while Brendan was previously assistant portfolio manager (2013-2015).

Micro-Cap Opportunity—Bill Hench is the Fund's lead portfolio manager, and Portfolio Manager Buzz Zaino manages the Fund with him. Bill has been portfolio manager since the Fund's inception on 8/31/10 while Buzz was previously assistant portfolio manager (2010-2015).

Pennsylvania Mutual—Chuck Royce is the Fund's lead portfolio manager, and Portfolio Managers Jay Kaplan and Lauren Romeo have moved up to manage it with him. Chuck has been portfolio manager since 1972 while Jay and Lauren were previously assistant portfolio managers from 2003 and 2006, respectively, through 2015.

Premier—Chuck Royce is the Fund's lead portfolio manager, and Portfolio Managers Lauren Romeo and Steven McBoyle have moved up to manage it with him. Chuck has been portfolio manager since the Fund's inception on 12/31/91 while Lauren (2006-2015) and Steve (2014-2015) were previously assistant portfolio managers.

Small-Cap Leaders—Lauren Romeo becomes the Fund's sole portfolio manager. She has been its portfolio manager since 2010, working with Chuck Royce.

Smaller-Companies Growth—Chip Skinner is the Fund's lead portfolio manager, and Portfolio Manager Carl Brown manages the Fund with him. Chip has been portfolio manager since 2007 and was previously co-manager (2003-2007) while Carl was previously assistant portfolio manager (2013-2015).

Mr. Clark added, "We think all of these changes reflect our commitment to ensuring that Royce remains preeminent in the small-cap space—for large and small shareholders alike. In addition, these moves enable our portfolio managers to work exclusively on a distinct investment discipline within our value, core, and/or growth approaches. They align each portfolio manager with the strategy that fits best with their experience, a focus that frees them up to do what they do best."

If you have any questions regarding this release, please call Investor Services at 1-800-221-4268.  For further information on The Royce Funds, please visit our website at www.roycefunds.com.

About Royce & Associates, LP: Royce & Associates, LP, investment adviser to The Royce Funds, is a small-cap specialist  offering distinct investment strategies with different risk/return profiles designed to meet a variety of investors' needs. Each of our strategies focuses on the kind of fundamental, intensive company research that we have done for more than 40 years. Chuck Royce, the firm's founder and a pioneer of small-cap investing, enjoys one of the longest tenures of any mutual fund manager. Royce & Associates, LP is an affiliate of Legg Mason Inc. (NYSE: LM). Royce Fund Services, Inc., the Fund's distributor, is a member of FINRA and the SIPC.

Important Disclosure Information

An investor should carefully consider each Fund's investment objective, risks, charges, and expenses before investing or sending money. This and other important information about The Royce Funds can be found in the Funds' prospectus. To obtain a prospectus, and information about The Royce Funds, please call (800) 221-4268 or visit www.roycefunds.com. Please read the prospectus carefully before investing.

Royce Dividend Value Fund: Investment Class, RDVIX, 780905188; Service Class, RYDVX, 780905436; Institutional Class, RDIIX, 80811717; Consultant Class, RDVCX, 780811634

Royce Heritage Fund: Investment Class, RHFHX, 780905238; Service Class, RGFAX, 780905857; Consultant Class, RYGCX, 780905618; R Class, RHFRX, 780811105; K Class, RHFKX, 780811709

Royce International Premier Fund: Investment Class, RIPNX, 780811667; Service Class, RYIPX, 780811790; Consultant Class, RINPX, 780811618; R Class, RINRX, 780811584; K Class, RIPKX, 780811592

Royce International Small-Cap Fund: Investment Class, RISNX, 780811691; Service Class, RYGSX, 780905139; Institutional Class, RISIX, 780811683

Royce Low-Priced Stock Fund: Investment Class, RLPHX, 780905246; Service Class, RYLPX, 780905808; Institutional Class, RLPIX, 780905394; R Class, RLPRX 780905279; RLPKX, 780811501

Royce Micro-Cap Fund: Investment Class, RYOTX, 780905709; Service Class, RMCFX, 780905659; Consultant Class, RYMCX, 780905774

Royce Micro-Cap Opportunity Fund: Investment Class, ROSFX, 780811832; Service Class, ROSSX, 780811642

Royce Pennsylvania Mutual Fund: Investment Class, PENNX, 780905840; Service Class, RYPFX, 780905386; Institutional Class, RPMIX, 78081A303; Consultant Class, RYPCX, 780905816; R Class, RPMRX, 780905295; K Class, RPMKX, 780811303

Royce Premier Fund: Investment Class, RYPRX, 780905600: Service Class, RPFFX, 780905634; Institutional Class, RPFIX, 780905683; Consultant Class, RPRCX, 780905550; R Class, RPRRX, 780905287; K Class, RPRKX, 780811402; W Class, RPRWX, 780905451

Royce Small-Cap Leaders Fund: Investment Class, ROHHX, 780905196; Service Class, RYOHX, 780905519; R Class, ROHRX, 780811204; K Class, ROHKX, 780811865

Royce Small-Cap Value Fund: Investment Class, RVVHX, 780905220; Service Class, RYVFX, 780905733; Institutional Class RVFIX, 780905352; Consultant Class, RVFCX, 780905360; R Class, RVVRX, 780905170; K Class, RVFKX, 780811881

Royce Smaller-Companies Growth Fund: Investment Class, RVPHX, 780905212; Service Class, RYVPX, 780905741; Institutional Class RVPIX, 780905337; Consultant Class, RVPCX 780905345; R Class, RVPRX 780905162; K Class, RVPKX, 780811873

Royce Special Equity Multi-Cap Fund: Investment Class, RSMCX, 780811733; Service Class, RSEMX, 780811774; Institutional Class, RMUIX, 780811725; Consultant Class, RSMLX, 780811659

Royce Capital Fund–Micro-Cap Portfolio: Investment Class, RCMCX, 78080T303; Service Class, RCMSX, 78080T402

SOURCE The Royce Funds