The Royce Funds is once again closing its Royce Micro-Cap Fund to new investors. The closing takes effect with the market close tomorrow (March 31).

Officials for the New York-based company said the decision to close was based on "the diminishing supply of attractive purchase candidates in the micro-cap universe," which for Royce, means companies with market capitalizations under $500 million. After a previous period of closure, the fund re-opened in September 2004 "to take advantage of what the portfolio managers perceive as attractive current purchase opportunities in the micro-cap segment."

As of the end of 2005, the Royce Micro-Cap Fund -- managed by W. Whitney George, with the assistance of Jenifer Taylor -- held 200 positions and had total net assets of $674 million.

Among Royce funds, the Royce Low-Priced Stock Fund, Royce Special Equity Fund, and Royce Premier Fund are currently closed to new investors. Like these funds, the Micro-Cap will remain open to additional purchases from existing investors, financial advisors with existing clients in the Fund, certain pre-approved asset allocation based investment programs and, for a limited time, initial investments by certain institutional investors approved by the Fund's investment adviser.

Existing shareholders in other Royce Funds will not be permitted to open new accounts in the Royce Micro-Cap Fund, or to acquire shares through exchange, after the closure date. 

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