Strategy. Royce Investment Partners (Royce), the Funds investment adviser, invests the Funds assets primarily in equity securities of small-cap companies that it believes are trading below its estimate of their current worth. Small-cap companies are those that have a market capitalization not greater than that of the largest company in the Russell 2000 Index at the time of its most recent reconstitution. The Fund uses multiple investment disciplines in an effort to provide exposure to approaches that have historically performed well in different market environments. These disciplines include High Quality, which looks for companies that have high returns on invested capital and that Royce believes have significant competitive advantages; Emerging Quality, which seeks companies that are newer in their lifecycle but … Show more… Royce Investment Partners (Royce), the Funds investment adviser, invests the Funds assets primarily in equity securities of small-cap companies that it believes are trading below its estimate of their current worth. Small-cap companies are those that have a market capitalization not greater than that of the largest company in the Russell 2000 Index at the time of its most recent reconstitution. The Fund uses multiple investment disciplines in an effort to provide exposure to approaches that have historically performed well in different market environments. These disciplines include High Quality, which looks for companies that have high returns on invested capital and that Royce believes have significant competitive advantages; Emerging Quality, which seeks companies that are newer in their lifecycle but that Royce believes can become High Quality in the future; Traditional Value, which looks for companies trading at prices below Royces estimate of their current worth; and Quality Value, which seeks companies with attractive profit margins, strong free cash flows, and lower leverage that also trade at what Royce believes are attractive valuations. The Funds portfolio managers generally focus on one of these approaches in managing segments of the Funds assets. A Royce Co-Chief Investment Officer will monitor and, from time to time, adjust the Funds allocations across these segments of the portfolio. The Fund invests at least 80% of its net assets in equity securities of small-cap companies, under normal circumstances. Although the Fund generally focuses on securities of U.S. companies, it may invest up to 25% of its net assets (measured at the time of investment) in securities of companies headquartered in foreign countries. The Fund may invest in other investment companies that invest primarily 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. Show less