Royce Opportunity Fund IMPACT AND ATTRIBUTION REPORT INVESTMENT CLASS

FINANCIAL PROFESSIONALS ONLY Royce Opportunity Fund IMPACT AND ATTRIBUTION REPORT INVESTMENT CLASS December 31, 2017

Royce Opportunity Fund IMPACT AND ATTRIBUTION REPORT 2 Performance Performance and Expenses (%) Average Annual Total Return Through 12/31/17 ROF RUSSELL 2000 Fourth Quarter 2017 ¹ 3.51 3.34 One-Year 21.88 14.65 Three-Year 11.01 9.96 Five-Year 14.33 14.12 10-Year 9.39 8.71 15-Year 12.79 11.17 20-Year 12.12 7.89 Since Inception (11/19/96) 12.71 8.73 Monthly Rolling Average Annual Return Periods 20 Years Through 12/31/17 On a monthly rolling basis, the Fund outperformed the Russell 2000 in 79% of all 10-year periods; 73% of all 5-year periods; and 68% of all 1-year periods. 10-year 5-year 1-year PERIODS BEATING THE INDEX FUND AVG (%)* INDEX AVG (%)* 96/121 79% 9.2 6.7 133/181 73% 11.5 8.2 155/229 68% 15.4 9.9 *Average of monthly rolling average annual total returns over the specified periods. ANNUAL EXPENSE RATIO (%) Operating Expenses 1.19 ¹ Not Annualized Important Performance and Expense Information All performance information reflects past performance, is presented on a total return basis, reflects the reinvestment of distributions, and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, so that shares may be worth more or less than their original cost when redeemed. Shares redeemed within 30 days of purchase may be subject to a 1% redemption fee, payable to the Fund, which is not reflected in the performance shown above; if it were, performance would be lower. Current month-end performance may be higher or lower than performance quoted and may be obtained at www.roycefunds.com. All performance information reflects Investment Class results. Shares of ROF s Service, Consultant, R, and K Classes bear an annual distribution expense that is higher than that borne by the Investment Class. Operating expenses reflect the Fund s total annual operating expenses for the Investment Class as of the Fund s most current prospectus and include management fees and other expenses. The Fund invests primarily in small-cap stocks, which may involve considerably more risk than investing in larger-cap stocks. (Please see Primary Risks for Fund Investors in the prospectus.) The Fund s broadly diversified portfolio does not ensure a profit or guarantee against loss. The thoughts concerning recent market movements and future prospects for smaller-company stocks are solely those of Royce & Associates and, of course, there can be no assurance with regard to future market movements. This material is not authorized for distribution unless preceded or accompanied by a current prospectus. Please read the prospectus carefully before investing or sending money. Distributor: Royce Fund Services, LLC

Royce Opportunity Fund IMPACT AND ATTRIBUTION REPORT 3 Fund Information as of 12/31/17 Calendar Year Total Returns (%) YEAR ROF RUSSELL 2000 2017 21.9 14.6 2016 29.9 21.3 2015-13.6-4.4 2014-0.5 4.9 2013 43.5 38.8 2012 22.6 16.3 2011-13.0-4.2 2010 33.8 26.9 2009 62.1 27.2 2008-45.7-33.8 2007-2.0-1.6 2006 18.8 18.4 2005 4.8 4.6 2004 17.5 18.3 2003 72.9 47.3 High Volatility 1 5-Year Relative Standard Deviation vs. all Small-Cap Funds tracked by Morningstar LOW HIGH Portfolio Diagnostics ROF RUSSELL 2000 Average Market Cap 2 $944M $1,860M Active Share 3 90% Weighted Average 1.7x 2.3x P/B Ratio 4 Weighted Average 0.9x 1.7x P/S Ratio 5 Non-U.S. Investments (% of Net Assets) Russell 2000 ROF 5.1% Top 10 Positions % of Net Assets (Subject to Change) Comtech Telecommunications 1.0 Carpenter Technology 1.0 Dana 1.0 Allegheny Technologies 1.0 Tower International 1.0 Mueller Industries 0.9 Microsemi Corporation 0.8 Meritor 0.8 Enova International 0.8 Cree 0.8 Portfolio Sector Breakdown % of Net Assets (Subject to Change) RUSSELL ROF 2000 Industrials 25.4 15.4 Information Technology 21.8 16.6 Consumer Discretionary 16.4 12.5 Materials 8.6 4.6 Energy 7.0 4.0 Financials 6.1 17.8 Health Care 6.1 15.3 Consumer Staples 1.6 2.8 Telecommunication Services 0.8 0.8 Real Estate 0.3 6.7 Utilities 0.2 3.5 Cash and Cash Equivalents 5.7 1 High Volatility. The Fund was in the highest volatility quintile compared with all funds in Morningstar s Small Growth, Small Blend, and Small Value Categories with at least five years of history, a total of 520 funds as of 12/31/17. The universe consists of each fund s oldest share class only. Volatility quintiles are based on the average five-year standard deviation for each of the last four calendar quarters. Higher volatility is usually associated with higher risk. 2 Geometric Average. This weighted calculation uses each portfolio holding s market cap in a way designed to not skew the effect of very large or small holdings; instead, it aims to better identify the portfolio s center, which Royce believes offers a more accurate measure of average market cap than a simple mean or median. 3 Active Share is the sum of the absolute values of the different weightings of each holding in the Fund versus each holding in the benchmark, divided by two. 4 Harmonic Average. This weighted calculation evaluates a portfolio as if it were a single stock and measures it overall. It compares the total market value of the portfolio to the portfolio s share in the earnings or book value, as the case may be, of its underlying stocks. 5 Price to Sales is calculated by dividing the company s market cap by the revenue in the most recent year.

Royce Opportunity Fund IMPACT AND ATTRIBUTION REPORT 4 Manager Commentary Company, Industry, and Sector Impact Royce Opportunity Fund gained 3.5% in 4Q17, once again beating the Russell 2000, which was up 3.3%, and helping the Fund extend its relative advantages for the one-, three-, five-, 10-, 15-, 20-year, and since inception (11/19/96) periods ended 12/31/17. We were particularly pleased that our deep value strategy did well in a year that presented active management with a few headwinds, which included a preference for more speculative stocks. Ten of the portfolio s 11 equity sectors finished 4Q17 in the black while Real Estate was essentially flat. Industrials contributed most by a significant margin, followed by solid net gains for Consumer Discretionary, Materials, and Energy. Utilities, Information Technology, and Health Care made the smallest positive impacts. At the industry level, machinery (Industrials) led, followed by electrical equipment (Industrials) and specialty retail (Consumer Discretionary). The second of these groups was home to General Cable, which makes fiber optic wire and cable products for the communications, electrical, and energy markets. Its shares climbed after the company accepted a buyout offer during December from a larger competitor based in Milan. The impact of detractors at the industry level in 4Q17 was more modest. Aerospace & Defense (Industrials), health care providers & services (Health Care), and electronic equipment, instruments & components (Information Technology) had the largest negative impact. We sold our shares of the Fund s biggest detractor at the position level for the quarter, Veeco Instruments, after the unexpected negative result of a patent infringement case. For 4Q17, results relative to the Russell 2000 received the biggest boost from our overweight in Industrials, the Fund s largest sector at the end of 2017. Stock selection was also a plus in this large and diverse small-cap sector, especially in electrical equipment, commercial services & supplies, and machinery. Savvy stock selection in Materials and lower exposure to Real Estate also helped relative results. Along with our overweight, ineffective stock picks in Information Technology, most impactfully in electronic equipment, instruments & components, hurt relative results most. This industry was, however, one of the Fund s strongest through the first three quarters of 2017 and remained a net contributor for the calendar year. Stock selection also hurt relative results in Consumer Discretionary in 4Q17, where holdings in hotels, restaurants & leisure did poorly. The Fund s cash position also detracted.

Royce Opportunity Fund IMPACT AND ATTRIBUTION REPORT 5 Manager Commentary (continued) For 2017 as a whole, Information Technology and Industrials made by far the most significant positive impact on performance, part of a group of seven equity sectors that ended the year in the black. Those sectors that detracted Telecommunication Services, Consumer Staples, Energy, and Real Estate made only a slight negative impact. Three industry groups led a long list of contributors in 2017 semiconductors & semiconductor equipment (Information Technology), machinery (Industrials), and electronic equipment, instruments & components (Information Technology). As was the case at the sector level, detractors were comparably modest, led by energy equipment & services (Energy), IT services (Information Technology), and multiline retail (Consumer Discretionary). Relative to the Russell 2000, 2017 s results were helped most by superior stock selection in Information Technology, with particular strength coming from semiconductors & semiconductor equipment. Stock selection also provided a significant advantage in Industrials, where machinery made the biggest positive impact versus the benchmark. Stock selection in Materials was also a source of relative strength. A significant underweight in Health Care was the biggest relative detractor in 2017. (The sector was the top performer in the Russell 2000 by a wide margin.) Lack of exposure to market-leading biotechnology companies was the primary driver of relative underperformance in the sector, which makes the Fund s overall outperformance for the year that much more impressive. The Fund s cash position also hurt relative results, as did a modest stock-picking disadvantage in Consumer Staples. Portfolio Outlook With the global economy accelerating and U.S. GDP rising, it s possible that positive developments can keep lifting the market in the months ahead. However, there are also risks of inflation and rapidly rising deficits. In addition, valuations for many stocks are high, rates are rising, and the Fed is tapering. This last item could have the largest impact on stocks, as contracting liquidity crimps the funds available for investment. We are therefore measured in our optimism. While reducing our exposure to technology stocks, we put proceeds to work via investments in industrial and commodity-based businesses in the expectation that global growth will continue to stoke demand. With the recovery of energy prices, nearly all industrial end markets were doing well by year-end. In addition, we hold many companies in cyclical areas where turnarounds were just getting underway or did not occur in 2017, which enhances our cautious optimism for select small-cap stocks. As of 12/31/17, the percentage of Fund assets was as follows: General Cable 0.5% and Veeco Instruments 0.0%. The thoughts concerning recent market movements and future prospects for small-company stocks are solely those of Royce & Associates, LP, and, of course, there can be no assurances with respect to future small-cap market performance.

Royce Opportunity Fund IMPACT AND ATTRIBUTION REPORT 6 Fourth Quarter Impact Report ¹ Top Five Contributors by Security For Quarter Ended 12/31/17 SECURITY NAME General Cable 0.53 Skechers U.S.A. Cl. A 0.30 Sucampo Pharmaceuticals Cl. A 0.24 Cree 0.24 Commercial Vehicle Group 0.22 Top Five Detractors by Security For Quarter Ended 12/31/17 SECURITY NAME Veeco Instruments -0.24 VOXX International Cl. A -0.19 Community Health Systems -0.18 Owens & Minor -0.17 Fabrinet -0.17 Top Five Contributors by Industry For Quarter Ended 12/31/17 INDUSTRY NAME Machinery 0.68 Electrical Equipment 0.49 Specialty Retail 0.40 Oil, Gas & Consumable Fuels Trading Companies & Distributors 0.37 0.36 Top Five Detractors by Industry For Quarter Ended 12/31/17 INDUSTRY NAME Aerospace & Defense -0.44 Health Care Providers & Services Electronic Equipment, Instruments & Components Diversified Consumer Services Hotels, Restaurants & Leisure -0.24-0.23-0.17-0.14 Sector Net Gains and Losses (%) For Quarter Ended 12/31/17 TOTAL SECTOR NAME WEIGHT RETURN Industrials 25.87 6.56 1.63 Consumer Discretionary 16.20 4.69 0.78 Materials 8.29 6.53 0.52 Energy 5.94 6.25 0.41 Financials 5.85 3.63 0.21 Consumer Staples 1.62 8.06 0.15 Telecommunication Services 0.77 12.43 0.09 Health Care 5.64 0.05 0.06 Information Technology 22.26-0.20 0.03 Utilities 0.19 11.33 0.02 Real Estate 0.31 1.08 0.00 Cash 7.07 0.30 0.02 Total 3.92 Net Cumulative Return 3.51 Expense Impact 0.31 Gross Cumulative Return 3.82 Residual² -0.10 ¹ Represents estimated net realized and unrealized gains and losses, including dividends, during the three-month period ended 12/31/17. The sum of all contributions to and detractions from performance for all securities would equal the Fund s gross cumulative total return for the fourth quarter of 2017. ² The Residual is the total return variance caused by intraday transactions.

Royce Opportunity Fund IMPACT AND ATTRIBUTION REPORT 7 Fourth Quarter Performance Attribution Analysis For the Three Months Ended December 31, 2017 (%) ROF Russell 2000 Variance Attribution Analysis GICS SECTORS ALLOCATION EFFECT¹ SELECTION EFFECT² TOTAL EFFECT Consumer Discretionary 16.20 4.69 0.78 12.14 7.74 0.94 4.06-3.05-0.16 0.20-0.50-0.30 Consumer Staples 1.62 8.06 0.15 2.70 7.22 0.19-1.08 0.83-0.05-0.04 0.03-0.01 Energy 5.94 6.25 0.41 3.71 6.82 0.24 2.23-0.57 0.16 0.14-0.03 0.10 Financials 5.85 3.63 0.21 18.21 1.61 0.30-12.37 2.03-0.09 0.20 0.12 0.32 Health Care 5.64 0.05 0.06 14.99 2.56 0.39-9.36-2.51-0.32 0.09-0.11-0.02 Industrials 25.87 6.56 1.63 15.19 6.33 0.93 10.68 0.23 0.70 0.31 0.05 0.35 Information Technology 22.26-0.20 0.03 17.03 0.91 0.19 5.23-1.11-0.16-0.11-0.22-0.33 Materials 8.29 6.53 0.52 4.50 3.84 0.16 3.79 2.69 0.36 0.03 0.22 0.24 Real Estate 0.31 1.08 0.00 7.04-0.48-0.03-6.72 1.56 0.03 0.25 0.00 0.25 Telecommunication Services 0.77 12.43 0.09 0.82-3.68-0.03-0.04 16.10 0.12 0.00 0.12 0.12 Utilities 0.19 11.33 0.02 3.67 1.10 0.05-3.48 10.23-0.03 0.07 0.02 0.09 Cash 7.07 0.30 0.02 0.00 0.00 0.00 7.07 0.30 0.02-0.24 0.00-0.24 Unclassified 0.00 0.00 0.00 0.01 0.00 0.00-0.01 0.00 0.00 0.00 0.00 0.00 Total 100.00 3.92 3.92 100.00 3.34 3.34 0.00 0.58 0.58 0.89-0.31 0.58 Net Cumulative Return 3.51 3.34 Expense Impact 0.31 0.00 Gross Cumulative Return 3.82 3.34 Residual -0.10 0.00 ¹ The Allocation Effect is the excess return attributable to the Fund s choice of sector weighting that differed from those of the Russell 2000 Index. ² Selection Effect represents the sum of the portfolio s excess return attributable to security selection within each sector and the portion of its excess return attributable to combining the weighting decision with its relative performance. ³ The Residual is the total return variance caused by intraday transactions. Important Information Past performance is no guarantee of future results. The Fund is actively managed and does not seek to replicate its benchmark in portfolio construction. Holdings and sector weightings are subject to change. Source: Royce & Associates, LP, based in part on data provided by FactSet. The attribution figures above are based on the Fund s holdings as of the close of business of each day during the period ended 12/31/17 and reflect estimated fees and expenses of the Fund. These figures are for analytical purposes only. This information should not be construed as investment advice or recommendations with respect to the sectors listed. Sector weightings may not be representative of the portfolio managers current or future investments and are subject to change at any time. The sum of all contributions to and detractions from performance for all securities would equal the Fund s gross cumulative total return for the fourth quarter of 2017.

Royce Opportunity Fund IMPACT AND ATTRIBUTION REPORT 8 One-Year Impact Report ¹ Top Five Contributors by Security One-Year Ended 12/31/17 SECURITY NAME KEMET Corporation 1.34 IXYS Corporation 0.76 Brooks Automation 0.74 Ultra Clean Holdings 0.71 TRC Companies 0.67 Top Five Detractors by Security One-Year Ended 12/31/17 SECURITY NAME Unisys Corporation -0.54 Wesco Aircraft Holdings -0.49 Windstream Holdings -0.48 J.C. Penney Company -0.33 Team -0.33 Top Five Contributors by Industry One-Year Ended 12/31/17 INDUSTRY NAME Semiconductors & Semiconductor Equipment 4.66 Machinery 3.38 Electronic Equipment, Instruments & Components 2.41 Chemicals 1.41 Specialty Retail 1.20 Top Five Detractors by Industry One-Year Ended 12/31/17 INDUSTRY NAME Energy Equipment & Services -0.42 IT Services -0.39 Multiline Retail -0.37 Insurance -0.36 Diversified Telecommunication Services -0.35 Sector Net Gains and Losses (%) One-Year Ended 12/31/17 (%) TOTAL SECTOR NAME WEIGHT RETURN Information Technology 25.41 33.51 9.40 Industrials 25.06 32.62 7.97 Consumer Discretionary 14.92 18.65 2.93 Materials 8.65 34.06 2.88 Health Care 5.37 13.52 0.88 Financials 5.97 6.59 0.34 Utilities 0.20 51.82 0.10 Real Estate 0.34-17.95-0.09 Energy 4.55-9.56-0.18 Consumer Staples 1.53-11.65-0.21 Telecommunication Services 0.79-29.96-0.33 Cash 7.22 0.94 0.08 Unclassified 0.00-64.93 0.00 Total 23.77 Net Cumulative Return 21.88 Expense Impact 1.46 Gross Cumulative Return 23.34 Residual² -0.43 ¹ Represents estimated net realized and unrealized gains and losses, including dividends, during the one-year period ended 12/31/17. The sum of all contributions to and detractions from performance for all securities would equal the Fund s gross cumulative total return for the one-year period ended 12/31/17. ² The Residual is the total return variance caused by intraday transactions.

Royce Opportunity Fund IMPACT AND ATTRIBUTION REPORT 9 One-Year Performance Attribution Analysis For the One-Year Ended December 31, 2017 (%) ROF Russell 2000 Variance Attribution Analysis GICS SECTORS ALLOCATION EFFECT¹ SELECTION EFFECT² TOTAL EFFECT Consumer Discretionary 14.92 18.65 2.93 12.09 15.57 1.81 2.82 3.07 1.12 0.15 0.54 0.69 Consumer Staples 1.53-11.65-0.21 2.83 5.01 0.12-1.30-16.66-0.32 0.16-0.26-0.10 Energy 4.55-9.56-0.18 3.48-18.65-0.70 1.07 9.10 0.53-0.10 0.53 0.44 Financials 5.97 6.59 0.34 18.66 6.32 1.01-12.70 0.27-0.66 1.18 0.05 1.23 Health Care 5.37 13.52 0.88 14.08 35.52 4.61-8.71-22.00-3.74-1.56-1.00-2.56 Industrials 25.06 32.62 7.97 14.69 19.82 2.83 10.37 12.81 5.14 0.54 3.00 3.53 Information Technology 25.41 33.51 9.40 17.37 17.06 3.12 8.04 16.44 6.28 0.59 4.54 5.13 Materials 8.65 34.06 2.88 4.70 16.74 0.76 3.95 17.31 2.11 0.13 1.41 1.54 Real Estate 0.34-17.95-0.09 7.59 5.23 0.48-7.26-23.17-0.56 0.65-0.10 0.55 Telecommunication Services 0.79-29.96-0.33 0.80 5.11 0.05-0.01-35.07-0.38 0.08-0.41-0.34 Utilities 0.20 51.82 0.10 3.70 14.48 0.57-3.50 37.34-0.47 0.00 0.08 0.07 Cash 7.22 0.94 0.08 0.00 0.00 0.00 7.22 0.94 0.08-1.09 0.00-1.09 Unclassified 0.00-64.93 0.00 0.00 15.83 0.00 0.00-80.77 0.00 0.01 0.01 0.02 Total 100.00 23.77 23.77 100.00 14.65 14.65 0.00 9.13 9.13 0.74 8.38 9.13 Net Cumulative Return 21.88 14.65 Expense Impact 1.46 0.00 Gross Cumulative Return 23.34 14.65 Residual -0.43 0.00 ¹ The Allocation Effect is the excess return attributable to the Fund s choice of sector weighting that differed from those of the Russell 2000 Index. ² Selection Effect represents the sum of the portfolio s excess return attributable to security selection within each sector and the portion of its excess return attributable to combining the weighting decision with its relative performance. ³ The Residual is the total return variance caused by intraday transactions. Important Information Past performance is no guarantee of future results. The Fund is actively managed and does not seek to replicate its benchmark in portfolio construction. Holdings and sector weightings are subject to change. Source: Royce & Associates, LP, based in part on data provided by FactSet. The attribution figures above are based on the Fund s holdings as of the close of business of each day during the period ended 12/31/17 and reflect estimated fees and expenses of the Fund. These figures are for analytical purposes only. This information should not be construed as investment advice or recommendations with respect to the sectors listed. Sector weightings may not be representative of the portfolio managers current or future investments and are subject to change at any time. The sum of all contributions to and detractions from performance for all securities would equal the Fund s gross cumulative total return for the one-year period ended 12/31/17.

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