"Two Royce funds are joining our universe says Walter Frank, editor of the long-running MoneyLetter. Here's a look at Royce Global Value (RIVFX) and Royce Micro-Cap (RYMCX).

"Royce Global Value, formerly Royce International Value, is managed in keeping with the fund family's overriding value philosophy. Royce takes a bottom-up investment approach and bases its assessment on balance sheet quality and cash flow analysis.

"The fund seeks to buy when shares are trading significantly below the firm's estimate of their current worth. It can invest in any capitalization range, but will most often invest in smaller companies.

"Recently, about 41% of assets were invested in US firms, with 22% in Canada and about 6.5% each in France and Germany. The fund performed well in 2007, with a 14.3% total return. Thus far this year, a 13.5% return places it in the top 1% of its peers.

"The fund's stake in mining companies has been a polus, given the growing global demand for hard assets, concerns about inflation and industry consolidation. The managers remain confident in the prospects for the industry.

"Royce Micro-Cap underwent a couple of changes recently. It opened to new investors in January, citing increased investment opportunities (plus it suffered a slight net redemption in the second half of last year).

"Also, in May of last year, sharesholders voted to allow the fund to invest up to 25% of net assets in foreign securities (the previous limit was 10%).

"Royce Micro-Cap is one of the orginals in the micro-cap space. Now, at more than $850 million in assets, it is also one of the largest. Moreover, it has posted generally impressive results of the years; its 10-year annualized return of 11.2% outpaces more than 80% of its peers.

"The managers pack this portfolio with more than 200 names, none of which consistutes more than 1.3% of assets, and there is good diversification among industry sectors. Natural resources and industrial firms have placed a positive role, as they have in Global Value.

"Overall, however, the managers note that recently there has been a performance disparity with the micro-cap sector. In general, the higher returns came form larger, more established micro-cap firms in light of the credit crunch.

"This bias was good for the fund, which notes that it favors 'conservatively capitalized, quality micro-cap businesses'."