UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM N-CSR

CERTIFIED SHAREHOLDER REPORT
OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act File
 Number: 811-04875

Name of Registrant: Royce
 Value Trust, Inc.
Address of Registrant: 745
 Fifth Avenue
New York, NY 10151


Name and address
 of agent for service:
 
John E. Denneen, Esquire
745 Fifth Avenue
New York, NY 10151


Registrant’s telephone
 number, including area code: (212) 508-4500
Date of fiscal year end: December
 31
Date of reporting period: January 1, 2015 – December 31, 2015



Item 1. Reports to Shareholders.


 
 
 
 


 
 

 




 
 
DECEMBER 31, 2015


 
 
 


 
 
 


 
 
 


 
 
2015 Annual


 
 
Review and Report to Stockholders


 
 
 


 
 
 


 
 
 


 
 
 




 
 
 


 
 
 


 
 
 


 
 
Royce Global Value Trust


 
 
 


 
 
Royce Micro-Cap Trust
 


 
 
 


 
 
Royce Value Trust


 
 
 
 


 
 
 
 


 
 
 
 


 
 
 
 


 
 
 
 


 
 
 
 


 
 
 
 


 
 
 
 


 
 
 
 


 
 
 
 


 
 
 
 


 
 
 
 


 
 
 
 


 
 
 
 


 
 
 
 


 
 
roycefunds.com



 
 
 
 


 
 
 
 


 
 
 
 





A Few Words on Closed-End Funds
Royce & Associates, LLC manages
 three closed-end funds: Royce Value Trust, which invests primarily in small-cap
 securities; Royce Micro-Cap Trust, which invests primarily in micro-cap securities;
 and Royce Global Value Trust, which invests in both U.S. and non-U.S. small-cap
 stocks. A closed-end fund is an investment company whose shares are listed and
 traded on a stock exchange. Like all investment companies, including open-end mutual
 funds, the assets of a closed-end fund are professionally managed in accordance
 with the investment objectives and policies approved by the fund’s Board of
 Directors. A closed-end fund raises cash for investment by issuing a fixed number
 of shares through initial and other public offerings that may include shelf offerings
 and periodic rights offerings. Proceeds from the offerings are invested in an actively
 managed portfolio of securities. Investors wanting to buy or sell shares of a publicly
 traded closed-end fund after the offerings must do so on a stock exchange, as with
 any publicly traded stock. Shares of closed-end funds frequently trade at a discount
 to their net asset value. This is in contrast to open-end mutual funds, which sell
 and redeem their shares at net asset value on a continuous basis.




A Closed-End Fund Can Offer Several Distinct Advantages


 
 
 


•
 
A closed-end
 fund does not issue redeemable securities or offer its securities on a continuous
 basis, so it does not need to liquidate securities or hold uninvested assets to
 meet investor demands for cash redemptions.


 
 
 


•
 
In a closed-end
 fund, not having to meet investor redemption requests or invest at inopportune times
 can be effective for value managers who attempt to buy stocks when prices are depressed
 and sell securities when prices are high.


 
 
 


•
 
A closed-end
 fund may invest in less liquid portfolio securities because it is not subject to
 potential stockholder redemption demands. This is potentially beneficial for Royce-managed
 closed-end funds, which invest primarily in small- and micro-cap securities.


 
 
 


•
 
The fixed
 capital structure allows permanent leverage to be employed as a means to enhance
 capital appreciation potential.


 
 
 


•
 
Royce Value
 Trust and Royce Micro-Cap Trust distribute capital gains on a quarterly basis. Each
 of these Funds has adopted a quarterly distribution policy for its common stock.


 
 
 



We believe that the closed-end fund structure can be an appropriate investment for
 a long-term investor who understands the benefits of a more stable pool of capital.






Why Dividend
 Reinvestment Is Important

A very important component of an investor’s total
 return comes from the reinvestment of distributions. By reinvesting distributions,
 our investors can maintain an undiluted investment in a Fund. To get a fair idea
 of the impact of reinvested distributions, please see the charts on pages 12 and
 13. For additional information on the Funds’ Distribution Reinvestment and
 Cash Purchase Options and the benefits for stockholders, please see page 14 or visit
 our website at www.roycefunds.com.

Managed Distribution Policy

The
 Board of Directors of each of Royce Value Trust and Royce Micro-Cap Trust has authorized
 a managed distribution policy (“MDP”). Under the MDP, Royce Value Trust
 and Royce Micro-Cap Trust pay quarterly distributions at an annual rate of 7% of
 the average of the prior four quarter-end net asset values, with the fourth quarter
 being the greater of these annualized rates or the distribution required by IRS
 regulations. With each distribution, the Fund will issue a notice to its stockholders
 and an accompanying press release that provides detailed information regarding the
 amount and composition of the distribution (including whether any portion of the
 distribution represents a return of capital) and other information required by a
 Fund’s MDP. You should not draw any conclusions about a Fund’s investment
 performance from the amount of distributions or from the terms of a Fund’s
 MDP. A Fund’s Board of Directors may amend or terminate the MDP at any time
 without prior notice to stockholders; however, at this time there are no reasonably
 foreseeable circumstances that might cause the termination of any of the MDPs. 






This page is not part of the
 2015 Annual Report to Stockholders





 
 
 
 





Table of Contents
 
 
 


 
 
 
 


 
 
 
 


Annual Review
 
 
 


 
 
 
 


Letter to Our Stockholders
 
2
 


 
 
 
 


Performance
 
5
 


 
 
 
 


 
 
 
 


Annual Report to Stockholders
 
 
 


 
 
 
 


Managers’ Discussions of Fund Performance
 
 
 


 
 
 
 


Royce Global Value Trust
 
6
 


 
 
 
 


Royce Micro-Cap Trust
 
8
 


 
 
 
 


Royce Value Trust
 
10
 


 
 
 
 



History Since Inception
 
12
 


 
 
 
 


Distribution Reinvestment and Cash Purchase Options
 
14
 


 
 
 
 


Schedules of Investments and Other Financial Statements
 
 
 


 
 
 
 


Royce Global Value Trust
 
15
 


 
 
 
 


Royce Micro-Cap Trust
 
29
 


 
 
 
 


Royce Value Trust
 
44
 

 
 
 
 


Directors and Officers
 
61
 


 
 
 
 


Notes to Performance and Other Important Information
 
62
 


 
 
 
 


Results of Stockholders Meeting
 
64
 










This page is not part of the 2015 Annual Report to Stockholders







 
 
 
 


Letter to Our Stockholders

GOODBYE TO ALL THAT



It was the sort of year that, when you first look at the final
equity market returns, might seem unexceptional, almost
quiet. It is only when plugged into the context of the long,
mostly bullish market since March 2009 that 2015’s more muted
results begin to make more sense—one could even be forgiven
for wondering why the losses for the major domestic stock
indexes were not steeper than they were at the end of December,
considering the heights to which most indexes ascended
following the end of the Financial Crisis. Yet the mostly single-digit
losses that marked 2015 were the first negative calendar-year
returns for small-caps since 2011 (as measured by the Russell 2000
Index). For their part, large-caps, as measured by the Russell 1000
and S&P 500 Indexes, had low single-digit positive returns.
     
An equally important contextual piece is the larger macro
situation—and few stock market cycles have been shaped as deeply
as the current period has been by forces beyond the companies
themselves. So while factors such as interest rates, commodity prices,
technological innovation, consumer confidence, and the like always
influence the movement of share prices to some extent, the fragility of
the global economy in the years following the crisis has resulted in levels
of central bank and other government interventions not seen since The
Great Depression. These actions were almost assuredly necessary to
keep the economy afloat. At the same time, however, these policies—particularly zero interest rates and quantitative easing—had significant
unintended consequences. And only now, a full seven years after






the tumult, is the situation in the U.S. slouching toward something
resembling the Old Normal—that is, a business cycle in which access
to credit is more constrained, borrowing has a cost (however low) and
both financial health and profitable execution are likely to matter to
investors. To be sure, the road back has proved both longer and
more winding than any of us could have foreseen at almost any
point over the last seven years. At this writing in January of 2016
we know the path in front of us will have its own share of formidable challenges as we embark on the latest leg of the journey.
     As equity investors, we find ourselves in a curious, ambiguous place.
The number of risks affecting share prices (among other things) is long
and somewhat chilling: Weak commodity prices, flagging currency
in China, elevated credit concerns, and geopolitical instability. By
year-end, the spread between the U.S. 10-Year note and the Two-Year
note—which, when it inverts, often signals recession—had narrowed
to a point near the bottom of its six-year range at about 122 basis
points. Still far from inverted, it is worth keeping an eye on. We
also saw widening credit spreads, a growing number of defaults, and
additional signs of a potential credit crunch, especially in the energy
industry. Our concerns over credit only intensified in light of the
market’s mild reaction to the Fed’s hike on December 16. The situation
is of particular interest and concern to us as small-cap specialists. As has
been the case historically, a significant deterioration in access to capital
would likely have a larger negative impact on small-caps, especially
those carrying excess leverage. Of course, this development could also
produce an advantage for more conservatively capitalized small-cap
businesses—and we own plenty across our value, core, and growth









2  | This page is not part of the 2015 Annual Report to Stockholders








 
 
 
 






strategies. This is one facet of what we believe is a strong case for
disciplined, contrarian, bottom-up small-cap approaches that put
a premium on managing risk. More widespread success for these
kinds of approaches would be a welcome departure from 2015, to
which we are happy to say, “Goodbye and good riddance.”


“A WILD RIDE TO NOWHERE”


Our own Charlie Dreifus described 2015 as “a wild ride to nowhere.”
We can think of no more fitting way to characterize the year, which
was distinguished by high volatility and broadly divergent sector and
industry results. The market’s indecision and frustration displayed
itself with 19 crossings back and forth over the flat line for the S&P
500. There were single-digit gains in 2015 for a few global and domestic
indexes—and single-digit losses for several more. The important
exceptions to the downward trend were the Nasdaq Composite, U.S.
large-caps, and European issues—small-caps in particular. The Nasdaq
Composite was the clear domestic leader in 2015, while the large-cap
Russell 1000 and S&P 500 just barely escaped a volatile and bearish
December to finish with modestly positive results.
     Within our chosen specialty of small-cap stocks, there were
strong returns within the Russell 2000 for Health Care and discrete,
more growth-oriented pockets of Information Technology that were
accompanied by losses for each of the index’s eight remaining equity
sectors, including Energy, Materials, Industrials, and Consumer
Discretionary. Along with Information Technology, those four
sectors have been among our largest portfolios weightings and/or






substantial overweights versus all three of our closed-end Funds’
respective benchmarks over the last few years. One can get a sense
of how confounding 2015 was by noting the confluence of losses
for Energy and Consumer Discretionary in the Russell 2000, which
defied the historical trend of low energy prices creating widespread
demand for discretionary purchases. Indeed, traditional retail stocks
were a particular source of red ink for the sector, in spite of consumer
confidence remaining high and select, mostly large online companies
scoring significant successes. In fact, the 4.4% decline for the Russell
2000 masks just how challenging it was to find strong small-cap
performers, especially outside the bio-pharma complex. The difficulty
becomes clearer in the context of the small-cap index’s decline of 10.1%
on an equal-weighted basis in 2015. (Similarly, the S&P 500 was also
down on an equal-weighted basis, falling 2.2% for the calendar year.)




     Looking within small-cap from a style perspective reveals another
year in which the Russell 2000 Growth Index, which was down
1.4%, outpaced the Russell 2000 Value Index, which lost 7.5%. Yet
small-cap value actually fared better than its growth sibling during the
third-quarter correction, losing 10.7% versus 13.1%. Perhaps more
interestingly—to us, at least—small-cap value led from the July 17,
2015 high for small-cap non-earners through year-end, falling 8.0%
compared to an 11.3% decline for small-cap growth. Down and flat
markets have historically favored value, as well as other valuation-focused
approaches, so it was reassuring to see that pattern recur,
however briefly, in 2015. The last decade, after all, has belonged to
small-cap growth. The Russell 2000 Growth beat the Russell 2000







Equity Indexes As of December 31, 2015 (%)


 
 
 


•
 
The Calendar Year Was a Wild Ride To Nowhere—2015 saw single-digit losses for a number of global and domestic indexes. The important
exceptions to these mostly modest equity declines came from U.S. large-caps, the Nasdaq Composite, international small-caps, and European
issues (especially small-caps).


 
 
 


•
 
Longer-Term Perspective—Returns Moving Lower Toward More Historically Typical Levels—Three- and five-year returns remained higher than
their long-term rolling averages but were down noticeably from where they were for the same periods through 6/30/15. Large-cap led for the
three- and five-year periods ended 12/31/15, followed for both periods by the Russell Midcap, Russell Microcap, and Russell 2000. The Russell
2000 Growth outpaced the Russell 2000 Value for the three- and five-year periods ended 12/31/15.





 


 
 
1-YR
 
3-YR
 
5-YR
 
10-YR


 


Russell 2000
 
-4.41
 
11.65
 
9.19
 
6.80



 


Russell 2000 Value
 
-7.47
 
9.06
 
7.67
 
5.57



 


Russell 2000 Growth
 
-1.38
 
14.28
 
10.67
 
7.95



 


S&P 500
 
1.38
 
15.13
 
12.57
 
7.31



 


Russell 1000
 
0.92
 
15.01
 
12.44
 
7.40



 


Nasdaq Composite
 
5.73
 
18.37
 
13.55
 
8.55


 


Russell Midcap
 
-2.44
 
14.18
 
11.44
 
8.00


 


Russell Microcap
 
-5.16
 
12.70
 
9.23
 
5.13


 


Russell Global ex-U.S. Small Cap
 
0.50
 
4.32
 
1.87
 
4.40


 


Russell Global ex-U.S. Large Cap
 
-5.02
 
2.07
 
1.40
 
3.25


 


Russell Europe Small Cap
 
9.37
 
10.97
 
6.69
 
5.76



 




 


For details on The Royce Funds’ performance in the period, please turn to the Managers’ Discussions that begin on page 8.





This page is not part of the 2015 Annual Report to Stockholders | 3







 
 
 
 


LETTER TO OUR STOCKHOLDERS



Value for the third consecutive year as of the end of 2015, and
finished ahead in seven of the last 10 calendar years, resulting in a
historically wide margin of outperformance on a trailing 10-year basis
through the end of 2015. As long-time believers in mean reversion,
we suspect that leadership from value will be the more likely
relative performance pattern going forward. (Certainly that has
been the case through January—the Russell 2000 Value Index has
thus far held up better than its growth counterpart.)


WHERE ARE WE NOW?


The question is: Where are we now? We first want to stress that while
the equity and other capital markets are under pressure, not all the
news is grim. Several notable bright spots are present that militate
against the rising wave of recessionary anxieties: job growth in the
U.S. remains steady, while real incomes, as well as expectations, have
risen. Perhaps more important is the fact that household formations
picked up in 2015 and many expect them to rise again in 2016.
The economy also received a probable boost late in December
when the government passed a budget deal that increased
spending and put business tax credits in place. These moves,
which could add as much as 0.7% to U.S. GDP in 2016, could
also help areas as diverse as technology, defense, consumer, and
nonresidential construction. With so much of the global spotlight
on China, it’s also worth mentioning that the U.S. economy remains by far the world’s largest—and has little dependence on that of China.

     That being said, many investors are understandably anxious over
the “4 Cs” of commodities, currency, credit, and China—worries
that were intense even before the massive sell-off that opened 2016.
As mentioned, we peg the troubled state of the credit markets as the
greatest concern for small-cap investors, especially in the near term.
Yet we also believe that these uncertain conditions offer fertile
ground for disciplined stock pickers (though January’s ground
probably felt more like quicksand for many). The driving force
behind each of our distinct investment strategies—value, growth,






and core—is a bottom-up approach, the result of our firm conviction
that deep knowledge of companies and their industry dynamics
ultimately matters more than the larger macro picture. While the
last five years have not been kind to these approaches, we think the
seismic shifts in the markets of late are another sign that the next five
years will be different.
     In addition to the tightening credit climate, we think that the
world is moving out of an intensely macro-focused phase into a
more historically typical period that will feature lower equity returns.
Long-term returns for the Russell 2000 have shifted from spectacular
highs to levels more in line with their historical averages. We think
returns for the next three-to-five years will be positive, but lower
than, or close to, their long-term average. In this environment,
we expect leadership to come from companies with low leverage,
high returns on invested capital, and other financial and/or
operational strengths, which should bode well for many of our
holdings in more cyclical areas. So while there may be additional
pain for many small-caps in the initial phase of a significant credit
or other market-rocking event, we think financially self-supporting
companies should emerge in far better condition than their more
highly leveraged and/or less profitable peers. Earnings will matter.
Their increasing importance should cause a shift in small-cap
leadership away from unprofitable or money-losing businesses
toward profitable ones. We see earnings growth, as opposed to P/E expansion, driving market returns as stocks seek to regain their
balance later in 2016.
     To be sure, we saw evidence of positive change during January
2016. As equity prices were falling at an alarming rate, our three
closed-end portfolios held up very well. In fact, each outpaced
their respective benchmarks in January. In addition, Royce Value
Trust outperformed the Russell 2000 on an NAV basis for the one-year
period ended January 31, 2016. While not wanting to make
too much of a short-term period, these developments bolster our
optimism for better times ahead.










Sincerely,






 

 



Charles M.
 Royce
 
Christopher
 D. Clark
 
Francis D.
 Gannon


Chief Executive Officer,
 
President and Co-Chief Investment Officer,
 
Co-Chief Investment Officer,


Royce & Associates, LLC
 
Royce & Associates, LLC
 
Royce & Associates, LLC


 
 
 
 
 


January 31, 2016

 
 
 
 




4 | This page is not part of the 2015 Annual Report to Stockholders








 


Performance


 


 


NAV Average Annual Total Returns


As of December 31, 2015 (%)




 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SINCE
 
INCEPTION


 
 
 
1-YR

 
3-YR

 
5-YR
 
10-YR
 
15-YR
 
20-YR

 
25-YR

 
INCEPTION

 
DATE





 



Royce Global Value Trust

 
-3.44
 
N/A
 
N/A
 
N/A
 
N/A
 
N/A
 
N/A
 
-3.21
 
10/17/13


 


Royce Micro-Cap Trust
 
-11.72
 
9.73
 
7.43
 
6.12
 
9.30
 
10.01
 
N/A
 
10.33
 
12/14/93


 


Royce Value Trust
 
-8.09
 
7.51
 
5.22
 
5.19
 
7.57
 
9.30
 
11.12
 
10.03
 
11/26/86


 


INDEX
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


 


Russell 2000 Index
 
-4.41
 
11.65
 
9.19
 
6.80
 
7.28
 
8.03
 
10.50
 
N/A
 
N/A


 


Russell Microcap Index
 
-5.16
 
12.70
 
9.23
 
5.13
 
7.99
 
N/A
 
N/A
 
N/A
 
N/A


 


Russell Global Small Cap Index
 
-1.78
 
6.91
 
4.35
 
5.10
 
7.65
 
N/A
 
N/A
 
N/A
 
N/A


 



Important Performance and Risk Information
All performance information in this Review and Report reflects past performance, is presented on a total return basis, net of the Fund’s investment advisory fee, and reflects the reinvestment of distributions.
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 sold. Current
performance may be higher or lower than performance quoted. Current month-end performance may be obtained at www.roycefunds.com. The Funds are closed-end registered investment companies whose
respective shares of common stock may trade at a discount to the net asset value. Shares of each Fund’s common stock are also subject to the market risk of investing in the underlying portfolio securities held by
each Fund. Certain immaterial adjustments were made to the net assets of Royce Micro-Cap Trust at 12/31/12, as well as 12/31/14, for financial reporting purposes, and as a result the net asset value originally
calculated on that date and the total return based on that net asset value differs from the adjusted net asset value and total return reported in the Financial Highlights. All indexes referenced are unmanaged and
capitalization-weighted. Each index’s returns include net reinvested dividends and/or interest income. Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related
to the Russell Indexes. Russell® is a trademark of Russell Investment Group. The Russell 2000 Index is an index of domestic small-cap stocks that measures the performance of the 2,000 smallest publicly traded
U.S. companies in the Russell 3000 Index. The Russell Microcap Index includes 1,000 of the smallest securities in the small-cap Russell 2000 Index, along with the next smallest eligible securities as determined
by Russell. The Russell Global Small Cap Index is an unmanaged, capitalization-weighted index of global small-cap stocks. The performance of an index does not represent exactly any particular investment, as
you cannot invest directly in an index. Index returns include net reinvested dividends and/or interest income. Royce Value, Micro-Cap and Global Value Trust shares of common stock trade on the NYSE. Royce Fund
Services, Inc (“RFS”) is a member of FINRA and has filed this Review and Report with FINRA on behalf of each Fund. RFS is not an underwriter or distributor of any of the Funds.

This page is not part of the 2015 Annual Report to Stockholders | 5





 







MANAGER’S DISCUSSION


Royce Global Value Trust (RGT)









Chuck Royce


 


FUND PERFORMANCE
Royce Global Value Trust (NYSE:
RGT) fell 3.4% on an NAV (net
asset value) basis and lost 6.1% on a market price basis in 2015,
lagging its unleveraged benchmark,
the Russell Global Small Cap Index, which declined 1.8% for the
same period. The Fund struggled on a relative basis through much
of the year. For the year-to-date period ended June 30, 2015, RGT
gained 5.6% on an NAV basis and 3.4% on a market price basis versus
a gain of 6.4% for the Russell Global Small Cap for the same period.
Stocks then suffered a sweeping correction in the third quarter, with
many global and domestic indexes enduring double-digit losses. The
Fund underperformed in the third quarter, down 12.4% on an NAV
basis and 15.6% on a market price basis versus a decline of 11.6% for
the Russell Global Small Cap Index. During the fourth quarter, RGT
participated fully when stocks first rebounded in October, slipped
behind its benchmark in November, and held its value better when
markets turned down again in December. For the fourth quarter as a
whole, the Fund increased 4.3% based on NAV and advanced 7.7% based on market price while the Russell Global Small Cap rose 4.4%.






WHAT WORKED...
 AND WHAT DIDN’T


In many cases, the most important factor for our holdings was what
did not happen—economies across the globe failed to accelerate
with the kind of speed that would drive investors toward the more
cyclical areas where we have been most actively investing. This effect
was particularly noticeable for holdings in Materials, Information
Technology, and Energy—three economically sensitive sectors that
also posted the most significant net losses in 2015. A certain pace of
growth must be present to key more robust performance for many
cyclical businesses, and we simply did not see enough of it in 2015.
Against this backdrop, we continued to focus on companies that in
our analyses showed a combination of attractive valuation, balance
sheet strength, and/or promising growth prospects.
     Net losses for the Information Technology sector were spread across
a number of positions and industry groups. The largest net losses for
the latter came from software, electronic equipment, instruments
& components, and semiconductors & semiconductor equipment
companies. However, the portfolio’s most significant detractor at the
industry level was the metals & mining group. On the positive side,
Health Care made a notable positive contribution, driven by strong
net gains in the health care equipment & supplies group.
     At the position level, New World Department Store China
posted the largest net losses, its sales slowed by the decelerating
economy on the mainland. We held a small position at year-end.
Dundee Corporation is a holding company based in Toronto
that is involved in investment advisory, corporate finance, energy, resources, agriculture, real estate, and infrastructure. The company
also holds investment portfolios in these areas. Its stock was hurt by
significant exposure to the weakened commodity markets in 2015.
Liking its long-term prospects, we built our stake in 2015. We acted
similarly, though on a larger scale, with top-10 holding Genworth
MI Canada. Shares of this residential mortgage insurer often move
with energy prices, and ongoing concerns about mortgage losses in
the energy-dominated western Canada continued to push its price
down. True to our contrarian nature, we suspect the bulk of those
losses have already been priced in.
     
RGT’s top contributor was Japan’s Relo Holdings, which provides
corporate fringe benefit outsourcing services, including maintenance
and management services for expatriates’ homes. We like its niche
business, history of raising dividends, and steady company growth
throughout 2015. We took gains at various times through the year.
Italy’s De’Longhi owns a collection of consumer brands in the
domestic appliance market, such as coffee makers, food processors,
electric ovens, kettles, toasters, and more. Growing revenues and
expanding margins, driven in part by the increasing popularity of its
home espresso machines, helped draw investors to its shares. We held a good-sized position at year-end.
     On a relative basis, the Fund was hurt most by Information
Technology, mostly by ineffective stock selection in the software and
semiconductors & semiconductor equipment industries. Conversely,
stock selection was a strength both in Industrials and Health Care versus the Russell Global Small Cap.
 





 
Top Contributors
 to Performance
For 2015(%)1
 
 
 


 


 
Relo Holdings
 
0.70
 


 
 
 


 
De’Longhi
 
0.58
 


 
 
 


 
Santen Pharmaceutical
 
0.45
 


 
 
 


 
Value Partners Group
 
0.41
 


 
 
 


 
VZ Holding
 
0.38
 


 
 
 


 
1
Includes dividends
 
 
 






 
Top Detractors
 from Performance
For 2015(%)2
 
 
 


 


 
New World Department Store China
 
-0.68
 


 
 
 


 
Dundee Corporation Cl. A
 
-0.55
 


 
 
 


 
Genworth MI Canada
 
-0.47
 


 
 
 


 
Stallergenes
 
-0.40
 


 
 
 


 
Coronation Fund Managers
 
-0.34
 


 
 
 


 
2
Net of dividends
 
 
 






CURRENT POSITIONING AND OUTLOOK


We expect reversals in a number of trends that should help benefit
many portfolio holdings over the next few years. Our own research
and regular meetings with confident management teams have made
us comfortable with a contrarian, pro-cyclical bias for the portfolio.
Moreover, we suspect that the protracted leadership of growth over
value stocks is likely to reverse in 2016 and that companies with better
balance sheets will do well in an environment of elevated corporate
bond spreads. We also expect the combined effects of these reversals to
put the market’s focus squarely on the attributes we emphasize, which
we think are overdue for recovery.






6  | 2015 Annual Report to Stockholders







 






PERFORMANCE AND PORTFOLIO REVIEW
 
SYMBOLS  MARKET PRICE RGT NAV XRGTX






 




Performance


Average Annual Total Return (%) Through 12/31/15


 
 
JUL-DEC 20151
 
1-YR
 
SINCE INCEPTION (10/17/13)


 


RGT (NAV)
 
-8.58
 
-3.44
 
-3.21


 


1Not Annualized
 
 
 
 
 
 




Market Price Performance History Since Inception (10/17/13)
Cumulative Performance of Investment1


 
 
 
1-YR
 
 
5-YR
 
10-YR
 
15-YR
 
20-YR
 
SINCE INCEPTION (10/17/13)


 


RGT
 
-6.1%
 
 
N/A
 
N/A
 
N/A
 
N/A
 
-14.3%


 





1
Reflects the cumulative performance experience of a continuous common stockholder who purchased one share at inception ($8.975 IPO) and
reinvested all distributions.


2
Reflects the actual month-end market price movement of one share as it has traded on NYSE.










The Morningstar Style Map is the Morningstar Style BoxTM
with the center 75% of fund holdings plotted as the Morningstar
Ownership ZoneTM The Morningstar Style Box is designed to reveal a
fund’s investment strategy. The Morningstar Ownership Zone provides
detail about a portfolio’s investment style by showing the range of
stock sizes and styles. The Ownership Zone is derived by plotting each
stock in the portfolio within the proprietary Morningstar Style Box.
Over time, the shape and location of a fund's ownership zone may vary.
See page 58 for additional information.








Top 10 Positions
 
 


% of Net Assets
 
 


 
 
 


Santen Pharmaceutical
 
1.8


 



Consort Medical
 
1.7


 



Virbac
 
1.7


 



Mayr-Melnhof Karton
 
1.7


 



Clarkson
 
1.7


 



Genworth MI Canada
 
1.6


 



VZ Holding
 
1.6


 



Spirax-Sarco Engineering
 
1.5


 



Shimano
 
1.5


 



Relo Holdings
 
1.4


 









Portfolio Sector Breakdown
 
 


% of Net Assets
 
 


 
 
 


Industrials
 
24.3


 



Financials
 
23.4


 



Information Technology
 
16.7


 



Consumer Discretionary
 
14.8


 



Health Care
 
12.4


 



Materials
 
10.4


 



Energy
 
2.7


 



Consumer Staples
 
2.3


 



Outstanding Line of Credit, Net of Cash and Cash Equivalents
 
-7.0


 









Calendar
 Year Total Returns (%)
 
 


 
 
 


YEAR
 
RGT


 



2015
 
-3.4


 



2014
 
-6.2


 









Portfolio Country Breakdown1,2
 
 


% of Net Assets
 
 


 
 
 


 



United Kingdom
 
15.2


 



Japan
 
15.0


 



United States
 
12.7


 



Canada
 
8.5


 



France
 
8.1


 



Switzerland
 
7.1


 



Hong Kong
 
5.7


 



Germany
 
5.7


 




1
Represents countries that are 3% or more of net assets.


2
Securities are categorized by the country of their headquarters.









Portfolio Diagnostics
 
 


 
 
 


Fund Net Assets
 
$91 million


 



Number of Holdings
 
272


 



Turnover Rate
 
65%


 



Net Asset Value
 
$8.81


 



Market Price
 
$7.45


 



Net Leverage1
 
7%


 



Average Market Capitalization2
 
$1,367 million


 



Weighted Average P/E Ratio3,4
 
18.7x


 



Weighted Average P/B Ratio3
 
2.3x


 



Active Share5
 
97%


 




1 
Net leverage is the percentage, in excess of 100%, of the total value of equity type investments, divided by net assets.


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 
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.


4 
The Fund’s P/E ratio calculation excludes companies with zero or negative earnings (7% of portfolio holdings as of 12/31/15).


5 
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.







Important Performance and Risk Information


All performance information reflects past performance, is presented on a total return basis, net of the Fund’s investment advisory fee, and reflects the reinvestment of distributions. Past performance is no
guarantee of future results. Current performance may be higher or lower than performance quoted. Returns as of the most recent month-end may be obtained at www.roycefunds.com. The market price of the
Fund’s shares will fluctuate, so that shares may be worth more or less than their original cost when sold. The Fund invests primarily in securities of small- and micro-cap companies, which may involve considerably
more risk than investments in securities of larger-cap companies. The Fund’s broadly diversified portfolio does not ensure a profit or guarantee against loss. From time to time, the Fund may invest a significant
portion of its net assets in foreign securities, which may involve political, economic, currency and other risks not encountered in U.S. investments. Regarding the “Top Contributors” and “Top Detractors” tables shown
on page 10, the sum of all contributors to, and all detractors from, performance for all securities in the portfolio would approximate the Fund’s year-to-date performance for 2015.







2015 Annual Report to Stockholders  |  7







 






MANAGER’S DISCUSSION


Royce Micro-Cap Trust (RMT)








Chuck Royce


 


FUND PERFORMANCE

Royce Micro-Cap Trust (NYSE:
RMT) was down 11.7% on an
NAV (net asset value) basis and
fell 16.1% on a market price
basis in 2015. These results trailed
those for each of its unleveraged benchmarks, the small-cap Russell
2000 Index, which lost 4.4%, and the Russell Microcap Index, which
declined 5.2% for the same period. The Fund struggled versus its
benchmarks throughout the year. For the year-to-date period ended
June 30, 2015, RMT was down 0.5% on an NAV basis and fell
4.2% based on its market price while the Russell 2000 Index gained
4.8% and the Russell Microcap Index increased 6.0% for the same
period. During the widespread correction in the third quarter, the
Fund lost 13.8% on an NAV basis and lost 14.0% on a market price
basis, compared to declines of 11.9% for the Russell 2000 and 13.8%
for the Russell Microcap. Stock prices then revived somewhat in the
fourth quarter, when RMT increased 2.9% on an NAV basis and
1.8% on a market price basis versus respective gains of 3.6% and
3.7% for the Russell 2000 and Microcap Indexes.
For a sense of how challenging the year was for small and micro-cap
stocks (and the active managers who pick them), consider that
the Russell 2000 lost 10.1% on an equal-weighted basis in 2015.
This shows just how hard it was to find stocks that grew appreciably
by year-end, especially in the more economically sensitive, cyclical
areas of the market that have been our primary focus over the last few
years. In this climate, we continued to focus on companies that in our
analyses showed a combination of attractive valuation, balance sheet
strength, and/or promising growth prospects. The Fund outperformed
the Russell 2000 on an NAV basis for the 15-, 20-year, and since
inception (12/14/93) periods ended December 31, 2015 while
also beating the Russell Microcap on an NAV basis for the 10- and
15-year periods ended December 31, 2015. (Returns for the Russell
Microcap only go back to 2000.) RMT’s average annual NAV total
return since inception was 10.3%.
WHAT WORKED... AND WHAT DIDN’T

Seven of the portfolio’s 10 sectors were in the red at year-end (versus
eight of 10 in negative territory for the Russell 2000). Financials
detracted most by a wide margin, hampered mostly by net losses in
the capital markets industry. This group includes asset managers, a
business we believe we know well and in which we have many years
of investment experience. So while we were disappointed in overall
results for the group in 2015, we nonetheless think highly of both the
recovery potential and long-term prospects for our holdings in the
industry. Two of RMT’s five biggest detractors came from that group.
Dundee Corporation is a holding company based in Toronto that is
involved in investment advisory, corporate finance, energy, resources, agriculture, real estate, and infrastructure. The company also holds
investment portfolios in these areas. Its stock was hurt by significant
exposure to the weakened commodity markets in 2015. Based in
Greenwich, CT., Fifth Street Asset Management is a credit-focused
asset manager that also specializes in providing credit solutions to
small- and mid-sized businesses. The volatile market of the second
half challenged its business and slowed revenues. We built positions in
both companies through much of the year.

Industrials was also a sore spot in 2015, with net losses coming
from several industry groups. It is a large and highly diverse sector—home to RMT’s two biggest contributors—Frontier Services Group
and Integrated Electrical Services, and its second-largest detractor,
Universal Truckload Services. Frontier Services Group is a Hong
Kong-based company with a base of operations in Nairobi that
provides logistical services in Africa and benefited in part from the
investor perception that asset growth can help fund FSG’s plan to
expand its logistics network.
The largest detractor to relative performance versus the Russell 2000
on a sector basis in 2015 was Financials. Several developments
negatively impacted results, including an underweight in banks, an
overweight and poor stock selection in capital markets, and ineffective
stock picking in the consumer finance and diversified financial
services industries. Information Technology, where we were hurt by
stock selection misses in the Internet software & services industry, also
detracted from calendar-year results relative to the small-cap index.
We received a relative advantage from our underweight in Energy as
well as modest stock selection success in Health Care and Industrials.






 
 
 


Top Contributors to Performance
For 2015 (%)1
 
 


 
 
 


Frontier Services Group
 
0.59


 


Integrated Electrical Services
 
0.54


 


Diamond Hill Investment Group
 
0.34


 


Envivio
 
0.32


 


Hackett Group (The)
 
0.28


 


1 Includes dividends
 
 





 
 
 


Top Detractors from Performance
For 2015 (%)2
 
 


 
 
 


Dundee Corporation Cl. A
 
-0.43


 


Universal Truckload Services
 
-0.41


 


Fifth Street Asset Management Cl. A
 
-0.39


 


Qumu Corporation
 
-0.38


 


LeapFrog Enterprises Cl. A
 
-0.35


 


2 Net of dividends
 
 





CURRENT POSITIONING AND OUTLOOK
We expect reversals in a number of trends that should help benefit
many portfolio holdings over the next few years. Our own research
and regular meetings with confident management teams have made
us comfortable with a contrarian, pro-cyclical bias for the portfolio.
Moreover, we suspect that the protracted leadership of growth over
value stocks is likely to reverse in 2016 and believe that companies
with better balance sheets will do well in an environment of elevated
corporate bond spreads. We also expect the combined effects of
these reversals to put the market’s focus squarely on the attributes we
emphasize, which we think are overdue for recovery.






8 | 2015 Annual Report to Stockholders







 






PERFORMANCE AND PORTFOLIO REVIEW
 
SYMBOLS
   MARKET PRICE RMT NAV XOTCX






 



Performance


Average Annual Total Return (%) Through 12/31/15


 


 
 
JUL-DEC 20151
 
1-YR
 
3-YR
 
5-YR
 
10-YR
 
15-YR
 
20-YR
 

SINCE INCEPTION (12/14/93)


 


RMT (NAV)
 
-11.26
 
-11.72
 
9.73
 
7.43
 
6.12
 
9.30
 
10.01
 
10.33


 


1 Not Annualized






 



Market Price Performance History Since Inception (12/14/93)


Cumulative Performance of Investment1


 
 
1-YR
 
5-YR
 
10-YR
 
15-YR
 
20-YR
 
SINCE INCEPTION (12/14/93)


 


RMT
 
-16.1%
 
39.9%
 
41.1%
 
277.1%
 
533.4%
 
616.8%


 







1
Reflects the cumulative performance experience of a continuous common stockholder who purchased one share at inception ($7.50 IPO),
reinvested all distributions
and fully participated in the primary subscription of the Fund’s 1994 rights offering.


2
Reflects the actual month-end market price movement of one share as it has traded on NYSE and, prior to 12/1/03, on the Nasdaq.








The Morningstar Style Map is the Morningstar Style BoxTM
with the center 75% of fund holdings plotted as the Morningstar
Ownership ZoneTM. The Morningstar Style Box is designed to reveal a
fund’s investment strategy. The Morningstar Ownership Zone provides
detail about a portfolio’s investment style by showing the range of
stock sizes and styles. The Ownership Zone is derived by plotting each
stock in the portfolio within the proprietary Morningstar Style Box.
Over time, the shape and location of a fund’s ownership zone may vary.
See page 58 for additional information.






Top 10 Positions
 
 


% of Net Assets
 
 


 
 
 


Integrated Electrical Services
 
2.0


 


SurModics
 
1.8


 


Seneca Foods
 
1.3


 


Atrion Corporation
 
1.2


 


Zealand Pharma
 
1.1


 


Newport Corporation
 
1.0


 


Orbotech
 
0.9


 


Care.com
 
0.9


 


Cross Country Healthcare
 
0.9


 


FRP Holdings
 
0.9


 







Portfolio Sector Breakdown
 
 


% of Net Assets
 
 


 
 
 


Information Technology
 
26.2


 


Financials
 
18.6


 


Industrials
 
16.1


 


Health Care
 
16.1


 


Consumer Discretionary
 
15.1


 


Materials
 
5.6


 


Consumer Staples
 
3.0


 


Energy
 
2.7


 


Utilities
 
0.3


 


Telecommunication Services
 
0.1


 


Miscellaneous
 
4.9


 


Preferred Stock
 
0.4


 


Outstanding Line of Credit, Net of Cash
and Cash Equivalents
 
-9.1


 







Calendar Year Total Returns (%)
 
 


 
 
 


YEAR
 
RMT


 


2015
 
-11.7


 


2014
 
3.5


 


2013
 
44.5


 


2012
 
17.3


 


2011
 
-7.7


 


2010
 
28.5


 


2009
 
46.5


 


2008
 
-45.5


 


2007
 
0.6


 


2006
 
22.5


 


2005
 
6.8


 


2004
 
18.7


 


2003
 
55.5


 


2002
 
-13.8


 


2001
 
23.4


 







Portfolio Diagnostics
 
 


 
 
 


Fund Net Assets
 
$312 million


 


Number of Holdings
 
358


 


Turnover Rate
 
39%


 


Net Asset Value
 
$8.59


 


Market Price
 
$7.26


 


Net Leverage1
 
9%


 


Average Market Capitalization2
 
$306 million


 


Weighted Average P/E Ratio3,4
 
17.3x


 


Weighted Average P/B Ratio3
 
1.6x




 


Active Share5
 
95%


 


U.S. Investments (% of Net Assets)
 
92.6%


 


Non-U.S. Investments (% of Net Assets)
 
16.5%


 




1
Net leverage is the percentage, in excess of 100%, of the total value of
equity type investments, divided by net assets.


 


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
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.


 


4
The Fund’s P/E ratio calculation excludes companies with zero or
negative earnings (28% of portfolio holdings as of 12/31/15).


 


5
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.






Important Performance and Risk Information


 


All performance information reflects past performance, is presented on a total return basis, net of the Fund’s investment advisory fee, and reflects the reinvestment of distributions. Past performance is no
guarantee of future results. Current performance may be higher or lower than performance quoted. Returns as of the most recent month-end may be obtained at www.roycefunds.com. Certain immaterial
adjustments were made to the net assets of Royce Micro-Cap Trust at 12/31/12 and 12/31/14 for financial reporting purposes, and as a result the net asset value originally calculated on that date and the total
return based on that net asset value differs from the adjusted net asset value and total return reported in the Financial Highlights. The market price of the Fund’s shares will fluctuate, so that shares may be worth
more or less than their original cost when sold. The Fund normally invests in micro-cap companies, which may involve considerably more risk than investments in securities of larger-cap companies. The Fund’s
broadly diversified portfolio does not ensure a profit or guarantee against loss. From time to time, the Fund may invest a significant portion of its net assets in foreign securities, which may involve political,
economic, currency and other risks not encountered in U.S. investments. Regarding the “Top Contributors” and “Top Detractors” tables shown on page 8, the sum of all contributors to, and all detractors from,
performance for all securities in the portfolio would approximate the Fund’s year-to-date performance for 2015.






2015 Annual Report to Stockholders | 9







 






 
 
MANAGER’S DISCUSSION


Royce Value Trust (RVT)
 
 









Chuck Royce






FUND PERFORMANCE


Royce Value Trust (NYSE:
RVT) fell 8.1% on an NAV (net
asset value) basis and 9.6% on
a market price basis in 2015,
behind both of its unleveraged
small-cap benchmarks. For the same period, the Russell 2000 was
down 4.4% while the S&P SmallCap 600 slid 2.0%. For the year-to-date
period ended June 30, 2015, RVT gained 1.7% on an NAV basis
and 0.3% based on its market price versus respective gains of 4.8%
and 4.2% for the Russell 2000 and S&P SmallCap 600. The third
quarter saw a significant correction for equities. In this challenging
environment, the Fund was down 12.4% on an NAV basis and
14.6% on a market price basis. For the same period, the Russell 2000
fell 11.9% and the S&P SmallCap 600 was down 9.3%. Stocks then
rallied in the fourth quarter through most of October and November.
For the quarter as a whole, RVT advanced 3.2% based on NAV and
5.6% based on market price while the Russell 2000 increased 3.6%
and the S&P SmallCap 600 rose 3.7%.
  For a sense of how challenging the year was for small-cap stocks (and
the active managers who pick them), consider that the Russell 2000
lost 10.1% on an equal-weighted basis in 2015. This shows just how
hard it was to find stocks that grew appreciably by year-end, especially
in the more economically sensitive, cyclical areas of the market that
have been our primary focus over the last few years. In this climate,
we continued to focus on companies that in our analyses showed a
combination of attractive valuation, balance sheet strength, and/or
promising growth prospects. On an NAV and market price basis, the
Fund outperformed the Russell 2000 for the 15-, 20-, 25-year, and
since inception (11/26/86) periods ended December 31, 2015 while
trailing the S&P SmallCap 600. RVT’s average annual NAV total
return for the since inception period was 10.0%.


 


 


WHAT WORKED... AND WHAT DIDN’T


Six of the Fund’s 10 equity sectors finished the year in negative
territory, which compares favorably to the eight of 10 detracting
sectors in the Russell 2000. Industrials, where we were substantially
overweight at the end of 2015, detracted most on an absolute basis.
It also hurt relative performance, but our disadvantage resulted from
greater exposure to the sector—stock selection was a net positive versus
the benchmark. On an industry level, the sector’s largest net losses in
Industrials came from machinery stocks, which was also a significant
overweight. Long-time holding Kennametal makes tools and tooling
systems, focusing on the metalworking, mining, oil, and energy
industries, all of which faced sluggish industry conditions in 2015.


The Financials, Energy, Information Technology, Consumer
Discretionary, and Materials sectors also posted notable net losses. At
the industry level, significant detractors other than machinery included electronic equipment, instruments & components, energy
equipment & services, and capital markets. Slumping commodity
prices and slowing industrial activity on a near-global scale were major
factors behind poor performance for these areas. Modest net gains
came from Health Care and Consumer Staples.


  At the position level, RVT’s biggest detractor was Dundee
Corporation, a holding company based in Toronto that is involved in
investment advisory, corporate finance, energy, resources, agriculture,
real estate, and infrastructure. The Company also holds investment
portfolios in these areas. Its stock was hurt by its large exposure to the
commodity markets. Confident in its long-term potential, we added
shares in 2015. We did the same with our position in Tejon Ranch.
Based in Lebec, CA., Tejon is a diversified real estate development and
agribusiness company that is also one of the largest private landowners
in the Golden State. Reduced revenues in its commodity-based
farming and mineral resources businesses, as well as increased expenses
across several business units, drove investors away from its shares.
  The largest detractor to relative performance on a sector basis in
2015 was Information Technology, where poor stock selection in the
electronic equipment, instruments & components and semiconductors
& semiconductor equipment industries hurt most. The combination
of an underweight in banks, an overweight in capital markets, and
poor stock selection in insurance all hampered relative results in
Financials. Health Care’s modest net gain in the portfolio was
mitigated by our significant underweight in the sector (particularly in
biotech)—it detracted from results relative to the Russell 2000. We
were pleased, however, with our stock-picking strength in Materials
and Consumer Discretionary—two highly challenged sectors in which
we sought to high-grade positions in 2015.






Top Contributors to Performance

For 2015 (%)1
 
 
 


 
 
 
 


Hackett Group (The)
 
0.59
 


 


American Woodmark
 
0.35
 


 


On Assignment
 
0.30
 


 


MarketAxess Holdings
 
0.30
 


 


John Bean Technologies
 
0.24
 


 


1 Includes dividends
 
 
 






Top Detractors from Performance

For 2015 (%)2
 
 
 


 
 
 
 


Dundee Corporation Cl. A
 
-0.37
 


 


Tejon Ranch
 
-0.28
 


 


Kennametal
 
-0.25
 


 


Greenlight Capital Re Cl. A
 
-0.25
 


 


UTi Worldwide
 
-0.25
 


 


2 Net of dividends
 
 
 





CURRENT POSITIONING AND OUTLOOK
 
We expect reversals in a number of trends that should help benefit
many portfolio holdings over the next few years. Our own research
and regular meetings with confident management teams have made
us comfortable with a contrarian, pro-cyclical bias for the portfolio.
Moreover, we suspect that the protracted leadership of growth over
value stocks is likely to reverse in 2016 and believe that companies
with better balance sheets will do well in an environment of elevated
corporate bond spreads. We also expect the combined effects of
these reversals to put the market’s focus squarely on the attributes we
emphasize, which we think are overdue for recovery.






10 | 2015 Annual Report to Stockholders







 






PERFORMANCE AND PORTFOLIO REVIEW
 
SYMBOLS  MARKET PRICE RVT NAV XRVTX







Performance
 
 
 
 
 
 
 
 
 
 
 
 


Average Annual Total Return (%) Through 12/31/15
 
 
 
 
 
 
 
 


 
 
JUL-DEC 20151
 
1-YR
 
3-YR
 
5-YR
 
10-YR
 
15-YR

 
20-YR
 
25-YR
 
SINCE INCEPTION (11/26/86)


 


RVT (NAV)
 
-9.62
 
-8.09
 
7.51
 
5.22
 
5.19
 
7.57
 
9.30
 
11.12
 
10.03


 


1 Not Annualized
 
 
 
 
 
 
 
 
 








Market Price Performance History Since Inception (11/26/86)


Cumulative Performance of Investment through 12/31/151


 
 
1-YR
 
5-YR
 
10-YR
 
15-YR
 
20-YR
 
SINCE INCEPTION (11/26/86)


 


RVT
 
-9.6%
 
28.8%
 
35.3%
 
198.7%
 
489.3%
 
1221.7%


 


 









1
Reflects the cumulative performance of an investment made by a stockholder who purchased one share at inception ($10.00 IPO), reinvested
all distributions and fully participated in primary subscriptions of the Fund’s rights offerings.


2
Reflects the actual month-end market price movement of one share as it has traded on the NYSE.










The Morningstar Style Map is the Morningstar Style BoxTM with the center 75% of fund holdings plotted as the Morningstar Ownership ZoneTM. The Morningstar Style Box is designed to reveal a fund’s investment strategy. The Morningstar Ownership Zone provides
detail about a portfolio’s investment style by showing the range of
stock sizes and styles. The Ownership Zone is derived by plotting each
stock in the portfolio within the proprietary Morningstar Style Box.
Over time, the shape and location of a fund’s ownership zone may vary.
See page 58 for additional information.







Top 10 Positions
 
 


% of Net Assets
 
 


 
 
 


HEICO Corporation
 
1.1


 


Nautilus
 
1.0


 


Hackett Group (The)
 
1.0


 


Ash Grove Cement Cl. B
 
1.0


 


SEI Investments
 
1.0


 


On Assignment
 
1.0


 


Woodward
 
1.0


 


Coherent
 
1.0


 


MarketAxess Holdings
 
0.9


 


Reliance Steel & Aluminum
 
0.9


 







Portfolio Sector Breakdown
 
 


% of Net Assets
 
 


 
 
 


Industrials
 
28.1


 


Information Technology
 
20.7


 


Financials
 
19.3


 


Consumer Discretionary
 
12.6


 


Materials
 
7.6


 


Health Care
 
5.2


 


Energy
 
3.7


 


Consumer Staples
 
2.4


 


Telecommunication Services
 
0.5


 


Utilities
 
0.1


 


Miscellaneous
 
5.0


 


Outstanding Line of Credit, Net of Cash
and Cash Equivalents
 
-5.2


 







Calendar Year Total Returns (%)
 
 


 
 
 


YEAR
 
RVT


 


2015
 
-8.1


 


2014
 
0.8


 


2013
 
34.1


 


2012
 
15.4


 


2011
 
-10.1


 


2010
 
30.3


 


2009
 
44.6


 


2008
 
-45.6


 


2007
 
5.0


 


2006
 
19.5


 


2005
 
8.4


 


2004
 
21.4


 


2003
 
40.8


 


2002
 
-15.6


 


2001
 
15.2


 







Portfolio Diagnostics
 
 


 
 
 


Fund Net Assets
 
$1,072 million


 


Number of Holdings
 
493


 


Turnover Rate
 
35%


 


Net Asset Value
 
$13.56


 


Market Price
 
$11.77


 


Net Leverage1
 
5%


 


Average Market Capitalization2
 
$1,166 million


 


Weighted Average P/E Ratio3,4
 
18.1x


 


Weighted Average P/B Ratio3
 
1.8x



 


Active Share5
 
90%


 


U.S. Investments (% of Net Assets)
 
86.7%


 


Non-U.S. Investments (% of Net Assets)
 
18.5%


 






1
Net leverage is the percentage, in excess of 100%, of the total value of
equity type investments, divided by net assets.


 


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
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.


 


4
The Fund’s P/E ratio calculation excludes companies with zero or
negative earnings (12% of portfolio holdings as of 12/31/15).


 


5
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.






Important Performance and Risk Information


 


All performance information reflects past performance, is presented on a total return basis, net of the Fund’s investment advisory fee, and reflects the reinvestment of distributions. Past performance is no
guarantee of future results. Current performance may be higher or lower than performance quoted. Returns as of the most recent month-end may be obtained at www.roycefunds.com. The market price of the
Fund’s shares will fluctuate, so that shares may be worth more or less than their original cost when sold. The Fund invests primarily in securities of small- and micro-cap companies, which may involve considerably
more risk than investing in larger-cap companies. The Fund’s broadly diversified portfolio does not ensure a profit or guarantee against loss. Regarding the “Top Contributors” and “Top Detractors” tables shown on
page 6, the sum of all contributors to, and all detractors from, performance for all securities in the portfolio would approximate the Fund’s year-to date performance for 2015.






2015 Annual Report to Stockholders | 11





History Since Inception
The following table details the share accumulations by an initial investor in the Funds who reinvested all distributions and participated
fully in primary subscriptions for each of the rights offerings. Full participation in distribution reinvestments and rights offerings can
maximize the returns available to a long-term investor. This table should be read in conjunction with the Performance and Portfolio
Reviews of the Funds.


HISTORY
 
 
 
AMOUNT INVESTED
 
PURCHASE PRICE1
 

SHARES
 
NAV VALUE2
 
MARKET VALUE2
 


 


Royce Global Value Trust


10/17/13
 
Initial Purchase
 
$
8,975
 
$
8.975
 
 
1,000
 
$
9,780
 
$
8,975
 


 


12/11/14
 
Distribution $0.15
 
 
 
 
 
7.970
 
 
19
 
 
9,426
 
 
8,193
 


 


12/10/15
 
Distribution $0.10
 
 
 
 
 
7.230
 
 
14
 
 
 
 
 
 
 


 


12/31/15
 

 
$
8,975
 
 
 
 
 
1,033
 
$
9,101
 
$
7,696
 


 



Royce Micro-Cap Trust


12/14/93
 
Initial Purchase
 
$
7,500
 
$
7.500
 
 
1,000
 
$
7,250
 
$
7,500
 


 


10/28/94
 
Rights Offering
 
 
1,400
 
 
7.000
 
 
200
 
 
 
 
 
 
 


 


12/19/94
 
Distribution $0.05
 
 
 
 
 
6.750
 
 
9
 
 
9,163
 
 
8,462
 


 


12/7/95
 
Distribution $0.36
 
 
 
 
 
7.500
 
 
58
 
 
11,264
 
 
10,136
 


 


12/6/96
 
Distribution $0.80
 
 
 
 
 
7.625
 
 
133
 
 
13,132
 
 
11,550
 


 


12/5/97
 
Distribution $1.00
 
 
 
 
 
10.000
 
 
140
 
 
16,694
 
 
15,593
 


 


12/7/98
 
Distribution $0.29
 
 
 
 
 
8.625
 
 
52
 
 
16,016
 
 
14,129
 


 


12/6/99
 
Distribution $0.27
 
 
 
 
 
8.781
 
 
49
 
 
18,051
 
 
14,769
 


 


12/6/00
 
Distribution $1.72
 
 
 
 
 
8.469
 
 
333
 
 
20,016
 
 
17,026
 


 


12/6/01
 
Distribution $0.57
 
 
 
 
 
9.880
 
 
114
 
 
24,701
 
 
21,924
 


 


2002
 
Annual distribution total $0.80
 
 
 
 
 
9.518
 
 
180
 
 
21,297
 
 
19,142
 


 


2003
 
Annual distribution total $0.92
 
 
 
 
 
10.004
 
 
217
 
 
33,125
 
 
31,311
 


 


2004
 
Annual distribution total $1.33
 
 
 
 
 
13.350
 
 
257
 
 
39,320
 
 
41,788
 


 


2005
 
Annual distribution total $1.85
 
 
 
 
 
13.848
 
 
383
 
 
41,969
 
 
45,500
 


 


2006
 
Annual distribution total $1.55
 
 
 
 
 
14.246
 
 
354
 
 
51,385
 
 
57,647
 


 


2007
 
Annual distribution total $1.35
 
 
 
 
 
13.584
 
 
357
 
 
51,709
 
 
45,802
 


 


2008
 
Annual distribution total $1.193
 
 
 
 
 
8.237
 
 
578
 
 
28,205
 
 
24,807
 


 


3/11/09
 
Distribution $0.223
 
 
 
 
 
4.260
 
 
228
 
 
41,314
 
 
34,212
 


 


12/2/10
 
Distribution $0.08
 
 
 
 
 
9.400
 
 
40
 
 
53,094
 
 
45,884
 


 


2011
 
Annual distribution total $0.533
 
 
 
 
 
8.773
 
 
289
 
 
49,014
 
 
43,596
 


 


2012
 
Annual distribution total $0.51
 
 
 
 
 
9.084
 
 
285
 
 
57,501
 
 
49,669
 


 


2013
 
Annual distribution total $1.38
 
 
 
 
 
11.864
 
 
630
 
 
83,110
 
 
74,222
 


 


2014
 
Annual distribution total $2.90
 
 
 
 
 
10.513
 
 
1,704
 
 
86,071
 
 
76,507
 


 


2015
 
Annual distribution total $1.26
 
 
 
 
 
7.974
 
 
1,256
 
 
 
 
 
 
 


 


12/31/15
 

 
$
8,900
 
 
 
 
 
8,846
 
$
75,987
 
$
64,222
 


 






1
The purchase price used for annual distribution totals is a weighted average of the distribution reinvestment prices for the year.


2
Values are stated as of December 31 of the year indicated, after reinvestment of distributions, other than for initial purchase.


3
Includes a return of capital.






12  | 2015 Annual Report to Stockholders







HISTORY
 
 
 
AMOUNT INVESTED
 
PURCHASE PRICE1
 
SHARES
 
NAV VALUE2
 
MARKET VALUE2
 


 



Royce Value Trust


11/26/86
 
Initial Purchase
 
$
10,000
 
$
10.000
 
 
1,000
 
$
9,280
 
$
10,000
 


 


10/15/87
 
Distribution $0.30
 
 
 
 
 
7.000
 
 
42
 
 
 
 
 
 
 


 


12/31/87
 
Distribution $0.22
 
 
 
 
 
7.125
 
 
32
 
 
8,578
 
 
7,250
 


 


12/27/88
 
Distribution $0.51
 
 
 
 
 
8.625
 
 
63
 
 
10,529
 
 
9,238
 


 


9/22/89
 
Rights Offering
 
 
405
 
 
9.000
 
 
45
 
 
 
 
 
 
 


 


12/29/89
 
Distribution $0.52
 
 
 
 
 
9.125
 
 
67
 
 
12,942
 
 
11,866
 


 


9/24/90
 
Rights Offering
 
 
457
 
 
7.375
 
 
62
 
 
 
 
 
 
 


 


12/31/90
 
Distribution $0.32
 
 
 
 
 
8.000
 
 
52
 
 
11,713
 
 
11,074
 


 


9/23/91
 
Rights Offering
 
 
638
 
 
9.375
 
 
68
 
 
 
 
 
 
 


 


12/31/91
 
Distribution $0.61
 
 
 
 
 
10.625
 
 
82
 
 
17,919
 
 
15,697
 


 


9/25/92
 
Rights Offering
 
 
825
 
 
11.000
 
 
75
 
 
 
 
 
 
 


 


12/31/92
 
Distribution $0.90
 
 
 
 
 
12.500
 
 
114
 
 
21,999
 
 
20,874
 


 


9/27/93
 
Rights Offering
 
 
1,469
 
 
13.000
 
 
113
 
 
 
 
 
 
 


 


12/31/93
 
Distribution $1.15
 
 
 
 
 
13.000
 
 
160
 
 
26,603
 
 
25,428
 


 


10/28/94
 
Rights Offering
 
 
1,103
 
 
11.250
 
 
98
 
 
 
 
 
 
 


 


12/19/94
 
Distribution $1.05
 
 
 
 
 
11.375
 
 
191
 
 
27,939
 
 
24,905
 


 


11/3/95
 
Rights Offering
 
 
1,425
 
 
12.500
 
 
114
 
 
 
 
 
 
 


 


12/7/95
 
Distribution $1.29
 
 
 
 
 
12.125
 
 
253
 
 
35,676
 
 
31,243
 


 


12/6/96
 
Distribution $1.15
 
 
 
 
 
12.250
 
 
247
 
 
41,213
 
 
36,335
 


 


1997
 
Annual distribution total $1.21
 
 
 
 
 
15.374
 
 
230
 
 
52,556
 
 
46,814
 


 


1998
 
Annual distribution total $1.54
 
 
 
 
 
14.311
 
 
347
 
 
54,313
 
 
47,506
 


 


1999
 
Annual distribution total $1.37
 
 
 
 
 
12.616
 
 
391
 
 
60,653
 
 
50,239
 


 


2000
 
Annual distribution total $1.48
 
 
 
 
 
13.972
 
 
424
 
 
70,711
 
 
61,648
 


 


2001
 
Annual distribution total $1.49
 
 
 
 
 
15.072
 
 
437
 
 
81,478
 
 
73,994
 


 


2002
 
Annual distribution total $1.51
 
 
 
 
 
14.903
 
 
494
 
 
68,770
 
 
68,927
 


 


1/28/03
 
Rights Offering
 
 
5,600
 
 
10.770
 
 
520
 
 
 
 
 
 
 


 


2003
 
Annual distribution total $1.30
 
 
 
 
 

14.582
 
 
516
 
 
106,216
 
 
107,339
 


 


2004
 
Annual distribution total $1.55
 
 
 
 
 
17.604
 
 
568
 
 
128,955
 
 
139,094
 


 


2005
 
Annual distribution total $1.61
 
 
 
 
 
18.739
 
 
604
 
 
139,808
 
 
148,773
 


 

2006
 
Annual distribution total $1.78
 
 
 
 
 
19.696
 
 
693
 
 
167,063
 
 
179,945
 


 

2007
 
Annual distribution total $1.85
 
 
 
 
 
19.687
 
 
787
 
 
175,469
 
 
165,158
 


 


2008
 
Annual distribution total $1.723
 
 
 
 
 
12.307
 
 
1,294
 
 
95,415
 
 
85,435
 


 


3/11/09
 
Distribution $0.323
 
 
 
 
 
6.071
 
 
537
 
 
137,966
 
 
115,669
 


 

12/2/10
 
Distribution $0.03
 
 
 
 
 
13.850
 
 
23
 
 
179,730
 
 
156,203
 


 

2011
 
Annual distribution total $0.783
 
 
 
 
 
13.043
 
 
656
 
 
161,638
 
 
139,866
 


 

2012
 
Annual distribution total $0.80
 
 
 
 
 
13.063
 
 
714
 
 
186,540
 
 
162,556
 


 

2013
 
Annual distribution total $2.194
 
 
 
 
 
16.647
 
 
1,658
 
 
250,219
 
 
220,474
 


 

2014
 
Annual distribution total $1.82
 
 
 
 
 
14.840
 
 
1,757
 
 
252,175
 
 
222,516
 


 


2015
 
Annual distribution total $1.24
 
 
 
 
 
12.725
 
 
1,565
 
 
 
 
 
 
 


 


12/31/15
 
 
 
$
21,922
 
 
 
 
 
17,093
 
$
231,781
 
$
201,185
 


 








1
The purchase price used for annual distribution totals is a weighted average of the distribution reinvestment prices for the year.


2
Values are stated as of December 31 of the year indicated, after reinvestment of distributions, other than for initial purchase.


3
Includes a return of capital.



4
Includes Royce Global Value Trust spin-off of $1.40 per share.






2015 Annual Report to Stockholders |  13





Distribution Reinvestment and Cash Purchase Options


Why should I reinvest my distributions?

 By reinvesting distributions, a stockholder can maintain an undiluted
investment in the Fund. The regular reinvestment of distributions
has a significant impact on stockholder returns. In contrast, the
stockholder who takes distributions in cash is penalized when shares
are issued below net asset value to other stockholders.


 


How does the reinvestment of distributions from the Royce
closed-end funds work?
The Funds automatically issue shares in payment of distributions
unless you indicate otherwise. The shares are generally issued at the
lower of the market price or net asset value on the valuation date.


 


How does this apply to registered stockholders?
If your shares are registered directly with a Fund, your distributions
are automatically reinvested unless you have otherwise instructed
the Funds’ transfer agent, Computershare, in writing, in which case
you will receive your distribution in cash. A registered stockholder
also may have the option to receive the distribution in the form of a
stock certificate.


 


What if my shares are held by a brokerage firm or
a bank?
If your shares are held by a brokerage firm, bank, or other
intermediary as the stockholder of record, you should contact
your brokerage firm or bank to be certain that it is automatically
reinvesting distributions on your behalf. If they are unable to
reinvest distributions on behalf, you should have your shares
registered in your name in order to participate.


 


What other features are available for registered
stockholders?
The Distribution Reinvestment and Cash Purchase Plans also allow
registered stockholders to make optional cash purchases of shares
of a Fund’s common stock directly through Computershare on a
monthly basis, and to deposit certificates representing your RVT and
RMT shares with Computershare for safekeeping. (RGT does not
issue shares in certificated form). Plan participants are subject to a
$0.75 service fee for each voluntary cash purchase under the Plans.
The Funds’ investment adviser absorbed all commissions on optional
cash purchases under the Plans through December 31, 2015.



 


How do the Plans work for registered stockholders?
Computershare maintains the accounts for registered stockholders
in the Plans and sends written confirmation of all transactions in
the account. Shares in the account of each participant will be held
by Computershare in non-certificated form in the name of the
participant, and each participant will be able to vote those shares
at a stockholder meeting or by proxy. A participant may also send
stock certificates for RVT and RMT held by them to Computershare
to be held in non-certificated form. RGT does not issue shares in
certificated form. There is no service fee charged to participants for
reinvesting distributions. If a participant elects to sell shares from a
Plan account, Computershare will deduct a $2.50 service fee from
the sale transaction. The Funds’ investment adviser absorbed all
commissions on optional sales under the Plans through December
31, 2015. If a nominee is the registered owner of your shares, the
nominee will maintain the accounts on your behalf.

 


How can I get more information on the Plans?
You can call an Investor Services Representative at (800) 221-4268 or
you can request a copy of the Plan for your Fund from Computershare.
All correspondence (including notifications) should be directed to:
[Name of Fund] Distribution Reinvestment and Cash Purchase Plan,
c/o Computershare, PO Box 43078, Providence, RI 02940-3078,
telephone (800) 426-5523 (from 9:00 A.M. to 5:00 P.M.).





14 | 2015 Annual Report to Stockholders







Royce Global
 Value Trust
 
December
 31, 2015






 


Schedule
 of Investments


Common Stocks
 – 107.0%




 
 
SHARES

 
 
 
VALUE



 


 
 
 
 
 
 
 


AUSTRALIA
– 1.3%
 
 
 
 
 
 


ALS
 
10,785
 
 
$
29,422


†Austal
 
78,100
 
 
 
88,894


†Genworth Mortgage Insurance Australia
 
215,900
 
 
 
430,388


Imdex
1
 
473,700
 
 
 
68,611


Medusa
 Mining 1
 
82,600
 
 
 
21,727


 †Platinum Asset Management
 
37,000
 
 
 
216,069


TFS
 Corporation
 
143,945
 
 
 
165,231


Webjet
 
35,600
 
 
 
142,154


 


Total (Cost
 $1,328,337)
 
 
 
 
 
1,162,496



 


 
 
 
 
 
 
 


AUSTRIA
– 2.2%
 
 
 
 
 
 



Mayr-Melnhof Karton
 
12,309
 
 
 
1,531,756


Semperit
 AG Holding
 
11,000
 
 
 
369,268


 †UBM Development
 
2,200
 
 
 
86,945


 


Total (Cost
 $1,992,208)
 
 
 
 
 
1,987,969



 


 
 
 
 
 
 
 


BELGIUM
– 0.6%
 
 
 
 
 
 


BHF
 Kleinwort Benson Group 1
 
55,000
 
 
 
341,510


Van
 de Velde
 
3,436
 
 
 
234,236


 


Total (Cost
 $439,862)
 
 
 
 
 
575,746



 


 
 
 
 
 
 
 


BRAZIL
– 2.2%
 
 
 
 
 
 


Brasil
 Brokers Participacoes 1
 
205,000
 
 
 
67,637



CETIP - Mercados Organizados
 
113,000
 
 
 
1,067,176


T4F
 Entretenimento 1
 
184,500
 
 
 
144,445


TOTVS
 
98,000
 
 
 
764,196


 


Total (Cost
 $3,191,202)
 
 
 
 
 
2,043,454



 


 
 
 
 
 
 
 


CANADA
– 8.5%
 
 
 
 
 
 


Agnico
 Eagle Mines 2
 
20,000
 
 
 
525,600


AirBoss
 of America
 
7,600
 
 
 
95,954


 †Altus Group
 
13,000
 
 
 
182,171


 †Cameco Corporation 2
 
24,500
 
 
 
302,085


Canyon
 Services Group
 
24,200
 
 
 
71,182


 †Chorus Aviation Cl. A
 
17,100
 
 
 
69,206


 †Cogeco Cable
 
1,500
 
 
 
66,962


Computer
 Modelling Group
 
108,000
 
 
 
700,903


 †Dream Global Real Estate Investment Trust
 
12,300
 
 
 
76,981


 †Dundee Corporation Cl. A 1
 
120,000
 
 
 
395,461


 †Exco Technologies
 
5,000
 
 
 
61,140


FLYHT
 Aerospace Solutions 1
 
140,000
 
 
 
23,271


Franco-Nevada
 Corporation 2
 
10,200
 
 
 
466,650



†Genworth MI Canada
 
75,000
 
 
 
1,441,787


†Gluskin Sheff + Associates
 
28,200
 
 
 
424,518


†goeasy
 
8,300
 
 
 
113,670


†Intertape Polymer Group
 
8,400
 
 
 
113,461


Magellan
 Aerospace
 
27,400
 
 
 
318,812


Major
 Drilling Group International
 
110,500
 
 
 
349,780


†Morguard Real Estate Investment Trust
 
7,700
 
 
 
75,792


†Morneau Shepell
 
11,600
 
 
 
121,391


Pan
 American Silver 2
 
63,700
 
 
 
414,050


 †RDM Corporation
 
30,400
 
 
 
86,342


 †Richelieu Hardware
 
2,100
 
 
 
102,989


 †Richmont Mines 1
 
23,700
 
 
 
76,077


 †Solium Capital 1
 
28,900
 
 
 
146,202


Sprott
 
280,600
 
 
 
482,639


 †TMX Group
 
14,000
 
 
 
362,116


Total
 Energy Services
 
7,100
 
 
 
69,579


 


Total (Cost
 $11,695,157)
 
 
 
 
 
7,736,771



 


 
 
 
 
 
 
 


CHINA
– 1.9%
 
 
 
 
 
 


 †China Lilang
 
93,400
 
 
 
68,895


Daphne
 International Holdings 1
 
1,383,000
 
 
 
230,408


Daqo
 New Energy ADR 1,2
 
6,400
 
 
 
106,560


Noah
 Holdings ADR 1,2
 
16,700
 
 
 
466,431


Pacific
 Online
 
593,100
 
 
 
178,369


 †TravelSky Technology
 
345,000
 
 
 
566,159


Xtep
 International Holdings
 
157,700
 
 
 
83,795


 


Total (Cost
 $2,358,843)
 
 
 
 
 
1,700,617



 


 
 
 
 
 
 
 


CYPRUS
– 0.2%
 
 
 
 
 
 


Globaltrans
 Investment GDR 1
 
42,000
 
 
 
191,455



 


Total (Cost
 $212,014)
 
 
 
 
 
191,455



 


 
 
 
 
 
 
 


DENMARK
– 2.5%
 
 
 
 
 
 


Chr.
 Hansen Holding
 
11,500
 
 
 
719,302


 †Coloplast Cl. B
 
4,500
 
 
 
363,225


 †Columbus
 
77,700
 
 
 
75,628


SimCorp
 
8,000
 
 
 
451,173


Zealand
 Pharma 1
 
32,400
 
 
 
710,069


 


Total (Cost
 $1,687,221)
 
 
 
 
 
2,319,397



 


 
 
 
 
 
 
 


FINLAND
– 2.0%
 
 
 
 
 
 


BasWare
 
1,600
 
 
 
64,725



Nokian Renkaat
 
30,500
 
 
 
1,083,366


 †Powerflute
 
52,900
 
 
 
69,396


Vaisala
 Cl. A
 
24,498
 
 
 
636,736


 


Total (Cost
 $1,988,602)
 
 
 
 
 
1,854,223



 


 
 
 
 
 
 
 


FRANCE
– 8.1%
 
 
 
 
 
 


aufeminin
 1
 
2,100
 
 
 
55,839


 †Cegedim 1
 
2,500
 
 
 
86,947


 †Chargeurs
 
7,700
 
 
 
75,231


†Gaztransport Et Technigaz
 
26,000
 
 
 
1,099,578


 †HighCo
 
9,700
 
 
 
101,591


Lectra
 
6,100
 
 
 
80,193


Manutan
 International
 
8,100
 
 
 
431,362


Neurones
 
25,950
 
 
 
491,179


Nexity
 
16,500
 
 
 
731,107


Prodware
 
7,700
 
 
 
66,264


Rothschild
 & Co
 
33,000
 
 
 
842,212


 †Thermador Groupe
 
7,100
 
 
 
670,428



Vetoquinol
 
24,700
 
 
 
1,057,652



Virbac
 
6,600
 
 
 
1,572,848


 


Total (Cost
 $7,443,064)
 
 
 
 
 
7,362,431



 


 
 
 
 
 
 
 


GERMANY
– 5.7%
 
 
 
 
 
 


 †ADLER Real Estate 1
 
17,200
 
 
 
265,266


 †Allgeier SE
 
4,300
 
 
 
79,145


 †Balda
 
27,200
 
 
 
67,782


 †Bertrandt
 
7,000
 
 
 
840,134


 †Carl Zeiss Meditec
 
17,500
 
 
 
542,106


 †CompuGroup Medical
 
10,000
 
 
 
366,783


 †Fielmann
 
7,000
 
 
 
514,747


KUKA
 
8,000
 
 
 
719,692


 †KWS Saat
 
1,800
 
 
 
539,953


 †Leifheit
 
1,400
 
 
 
75,282






THE ACCOMPANYING
 NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
 
2015 Annual
 Report to Stockholders | 15







Royce Global
 Value Trust


 


 



Schedule
 of Investments (continued)






 
 
SHARES
 
 
 
VALUE


 


 
 
 
 
 
 
 


GERMANY
 (continued)
 
 
 
 
 
 


LPKF
 Laser & Electronics
 
15,500
 
 
$
120,524


 †msg life 1
 
40,700
 
 
 
80,131


mutares
 
8,300
 
 
 
158,763


 †SQS Software Quality Systems
 
7,900
 
 
 
69,299


 †STRATEC Biomedical
 
8,000
 
 
 
528,414


Tomorrow
 Focus 1
 
29,000
 
 
 
111,787


 †VIB Vermoegen
 
4,700
 
 
 
87,007


XING
 
300
 
 
 
55,298


 


Total (Cost
 $4,783,019)
 
 
 
 
 
5,222,113



 


 
 
 
 
 
 
 


GREECE
– 0.3%
 
 
 
 
 
 


 †Aegean Marine Petroleum Network
 
5,000
 
 
 
41,800


Hellenic
 Exchanges - Athens Stock Exchange
 
28,000
 
 
 
161,112


StealthGas
1,2
 
17,000
 
 
 
58,310


 


Total (Cost
 $333,095)
 
 
 
 
 
261,222



 


 
 
 
 
 
 
 


HONG KONG
– 5.7%
 
 
 
 
 
 


Anxin-China
 Holdings 1,3
 
2,500,000
 
 
 
18,710


China
 Metal International Holdings
 
430,000
 
 
 
131,772


First
 Pacific
 
180,000
 
 
 
119,229


Great
 Eagle Holdings
 
250,000
 
 
 
814,508


I.T
 
438,500
 
 
 
116,073


Le
 Saunda Holdings
 
295,460
 
 
 
67,858


Luk
 Fook Holdings (International)
 
120,100
 
 
 
253,947


Midland
 Holdings 1
 
1,400,000
 
 
 
563,986


New
 World Department Store China
 
2,159,700
 
 
 
328,448


Oriental
 Watch Holdings
 
2,223,000
 
 
 
326,453


Pico
 Far East Holdings
 
1,053,300
 
 
 
285,419


 †Samson Holding
 
589,100
 
 
 
72,754


Television
 Broadcasts
 
81,000
 
 
 
332,874


Texwinca
 Holdings
 
302,000
 
 
 
314,916


Tse
 Sui Luen Jewellery (International)
 
142,400
 
 
 
42,260



Value Partners Group
 
1,080,000
 
 
 
1,247,692


 †VST Holdings
 
366,600
 
 
 
99,038


YGM
 Trading
 
169,400
 
 
 
106,684


 


Total (Cost
 $6,663,603)
 
 
 
 
 
5,242,621



 


 
 
 
 
 
 
 


INDIA
– 2.2%
 
 
 
 
 
 


 †Bajaj Finance
 
11,000
 
 
 
999,940


 †Kewal Kiran Clothing
 
6,500
 
 
 
215,660


 †Motherson Sumi Systems
 
120,000
 
 
 
529,253


 †Videocon d2h ADR 1
 
27,400
 
 
 
243,312


 


Total (Cost
 $1,913,481)
 
 
 
 
 
1,988,165



 


 
 
 
 
 
 
 


INDONESIA
– 0.1%
 
 
 
 
 
 


Supra
 Boga Lestari 1
 
3,945,000
 
 
 
95,836



 


Total (Cost
 $198,065)
 
 
 
 
 
95,836



 


 
 
 
 
 
 
 


IRELAND
– 0.6%
 
 
 
 
 
 


 †Ardmore Shipping 2
 
14,100
 
 
 
179,352


 †Keywords Studios
 
75,000
 
 
 
225,511


 †Trinity Biotech ADR Cl. A
 
10,000
 
 
 
117,600


 


Total (Cost
 $521,325)
 
 
 
 
 
522,463



 


 
 
 
 
 
 
 


ISRAEL
– 0.2%
 
 
 
 
 
 


 †Nova Measuring Instruments 1,2,4
 
16,600
 
 
 
162,680



 


Total (Cost
 $181,238)
 
 
 
 
 
162,680



 


 
 
 
 
 
 
 


ITALY
– 2.8%
 
 
 
 
 
 


 †Azimut Holding
 
20,000
 
 
 
493,744


 †Banca Sistema 1
 
29,800
 
 
 
125,286


De’Longhi
 
25,000
 
 
 
748,348


 †DiaSorin
 
14,000
 
 
 
732,100


 †Recordati
 
16,800
 
 
 
438,534


 


Total (Cost
 $2,087,759)
 
 
 
 
 
2,538,012



 


 
 
 
 
 
 
 


JAPAN
– 15.0%
 
 
 
 
 
 


 †CRE
 
9,400
 
 
 
178,708


 †Daifuku
 
4,400
 
 
 
74,917


 †Descente
 
6,100
 
 
 
77,397


EPS
 Holdings
 
10,700
 
 
 
117,605


FamilyMart
 
8,200
 
 
 
381,014


Freund
 Corporation
 
9,500
 
 
 
111,243


GCA
 Savvian
 
9,900
 
 
 
101,193


 †Horiba
 
17,500
 
 
 
675,532


Itoki
 Corporation
 
19,400
 
 
 
138,218


 †Leopalace21 Corporation 1
 
29,400
 
 
 
158,855


†Meitec Corporation
 
33,700
 
 
 
1,152,671


Milbon
 
3,100
 
 
 
126,525



MISUMI Group
 
81,800
 
 
 
1,126,465


 †Nihon Kohden
 
18,500
 
 
 
445,803


Nishikawa
 Rubber
 
8,200
 
 
 
132,273


Nitto
 Kohki
 
6,300
 
 
 
134,489


 †Outsourcing
 
3,200
 
 
 
84,102


 †Pasona Group
 
9,700
 
 
 
69,238


 †Poletowin Pitcrew Holdings
 
9,000
 
 
 
85,117


 †Pressance Corporation
 
4,800
 
 
 
159,061



Relo Holdings
 
10,600
 
 
 
1,271,789



Santen Pharmaceutical
 
102,000
 
 
 
1,677,435



Shimano
 
9,100
 
 
 
1,393,770


SPARX
 Group
 
54,200
 
 
 
127,748


Sun
 Frontier Fudousan
 
14,700
 
 
 
107,706


 †Takara Leben
 
13,000
 
 
 
72,098


 †Tenpos Busters
 
3,900
 
 
 
64,511


 †TOTO
 
20,700
 
 
 
725,771



Trancom
 
19,600
 
 
 
1,086,106


 †Trend Micro
 
20,000
 
 
 
811,305


 †USS
 
45,000
 
 
 
677,055


Zuiko
 Corporation
 
4,400
 
 
 
171,453


 


Total (Cost
 $11,367,976)
 
 
 
 
 
13,717,173



 


 
 
 
 
 
 
 


MALAYSIA
– 0.3%
 
 
 
 
 
 


CB
 Industrial Product Holding
 
141,000
 
 
 
67,289


Media
 Prima
 
199,500
 
 
 
59,091


 †Scientex
 
57,800
 
 
 
131,093


 


Total (Cost
 $280,444)
 
 
 
 
 
257,473



 


 
 
 
 
 
 
 


MEXICO
– 0.8%
 
 
 
 
 
 


Bolsa
 Mexicana de Valores
 
250,000
 
 
 
332,037


 †Consorcio ARA SAB de CV
 
393,300
 
 
 
136,923


Fresnillo
 
15,000
 
 
 
156,997


 †Grupo SIMEC Ser. B 1
 
33,100
 
 
 
73,423


 


Total (Cost
 $860,344)
 
 
 
 
 
699,380



 


 
 
 
 
 
 
 


NETHERLANDS
– 0.1%
 
 
 
 
 
 


 †Lucas Bols Holding
 
2,700
 
 
 
65,362



 


Total (Cost
 $58,086)
 
 
 
 
 
65,362



 






16 | 2015
 Annual Report to Stockholders
 
THE ACCOMPANYING
 NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS








 
 
December
 31, 2015






 


Schedule
 of Investments (continued)

 




 
 
SHARES

 
 
 
VALUE



 


 
 
 
 
 
 
 


NEW ZEALAND
– 0.8%
 
 
 
 
 
 


 †Fisher & Paykel Healthcare
 
75,000
 
 
$
455,262


Trade
 Me Group
 
83,000
 
 
 
235,654


 


Total (Cost $678,639)
 
 
 
 
 
690,916



 


 
 
 
 
 
 
 


NORWAY
– 1.0%
 
 
 
 
 
 


Ekornes
 
45,000
 
 
 
502,519


 †Kongsberg Automotive 1
 
134,500
 
 
 
94,353


 †Medistim
 
13,000
 
 
 
78,588


TGS-NOPEC
 Geophysical
 
15,000
 
 
 
237,273


 


Total (Cost
 $1,241,734)
 
 
 
 
 
912,733



 


 
 
 
 
 
 
 


PHILIPPINES
– 0.8%
 
 
 
 
 
 


Universal
 Robina
 
195,000
 
 
 
769,549



 


Total (Cost
 $565,195)
 
 
 
 
 
769,549



 


 
 
 
 
 
 
 


POLAND
– 0.3%
 
 
 
 
 
 


 †Warsaw Stock Exchange
 
33,000
 
 
 
302,208


 


Total (Cost
 $459,764)
 
 
 
 
 
302,208



 


 
 
 
 
 
 
 


SINGAPORE
– 1.0%
 
 
 
 
 
 


 †ARA Asset Management
 
255,000
 
 
 
211,104


 †Asian Pay Television Trust
 
202,600
 
 
 
91,267


Parkson
 Retail Asia
 
274,300
 
 
 
51,265


 †XP Power
 
20,100
 
 
 
430,696


 †Yoma Strategic Holdings 1
 
323,400
 
 
 
104,991


 


Total (Cost
 $1,084,408)
 
 
 
 
 
889,323



 


 
 
 
 
 
 
 


SOUTH AFRICA
– 1.6%
 
 
 
 
 
 


Cashbuild
 
17,500
 
 
 
339,027


Coronation
 Fund Managers
 
59,000
 
 
 
201,502


JSE
 
15,000
 
 
 
123,850


Metrofile
 Holdings
 
314,100
 
 
 
94,261


 †Net 1 UEPS Technologies 1
 
10,500
 
 
 
141,855


PSG
 Group
 
36,500
 
 
 
526,431


 


Total (Cost
 $1,407,649)
 
 
 
 
 
1,426,926



 


 
 
 
 
 
 
 


SOUTH KOREA
– 0.3%
 
 
 
 
 
 


Eugene
 Technology
 
12,336
 
 
 
135,585


Huvis
 Corporation
 
3,900
 
 
 
25,693


 †ISC
 
1,809
 
 
 
43,563


Koh
 Young Technology
 
3,000
 
 
 
97,653


 


Total (Cost
 $370,666)
 
 
 
 
 
302,494



 


 
 
 
 
 
 
 


SPAIN
– 0.2%
 
 
 
 
 
 


Atento 1,2
 
21,500
 
 
 
209,410



 


Total (Cost
 $304,802)
 
 
 
 
 
209,410



 


 
 
 
 
 
 
 


SWEDEN
– 0.8%
 
 
 
 
 
 


 †Addtech Cl. B
 
27,000
 
 
 
458,577


 †Dustin Group 1
 
15,100
 
 
 
116,380


 †Hoist Finance 1
 
7,900
 
 
 
82,448


 †Proact IT Group
 
4,700
 
 
 
77,159


 


Total (Cost
 $633,741)
 
 
 
 
 
734,564



 


 
 
 
 
 
 
 


SWITZERLAND
– 7.1%
 
 
 
 
 
 


 †Belimo Holding
 
300
 
 
 
733,137


 †Burckhardt Compression Holding
 
2,075
 
 
 
636,333


 †Burkhalter Holding
 
4,500
 
 
 
487,400


 †dorma+kaba Holding
 
800
 
 
 
542,796


Forbo
 Holding
 
675
 
 
 
791,156


 †Inficon Holding
 
1,700
 
 
 
542,270


 †LEM Holding
 
1,000
 
 
 
752,239


 †Partners Group Holding
 
1,600
 
 
 
574,457



 †VZ Holding
 
4,850
 
 
 
1,428,192


 


Total (Cost
 $6,053,580)
 
 
 
 
 
6,487,980



 


 
 
 
 
 
 
 


TAIWAN
– 0.8%
 
 
 
 
 
 


 †Flytech Technology
 
37,680
 
 
 
108,413


 †Hota Industrial Manufacturing
 
17,500
 
 
 
63,976


Kinik
 Company
 
48,500
 
 
 
75,110


Lumax
 International
 
87,400
 
 
 
115,490


Shih
 Her Technologies
 
85,600
 
 
 
89,551


 †Sporton International
 
15,300
 
 
 
93,412


Taiwan
 Paiho
 
54,200
 
 
 
119,405


UDE
 Corporation
 
63,400
 
 
 
63,520


 


Total (Cost
 $867,356)
 
 
 
 
 
728,877



 


 
 
 
 
 
 
 


TURKEY
– 0.4%
 
 
 
 
 
 


Mardin
 Cimento Sanayii
 
300,000
 
 
 
380,590



 


Total (Cost
 $752,323)
 
 
 
 
 
380,590



 


 
 
 
 
 
 
 


UNITED
 ARAB EMIRATES – 0.7%
 
 
 
 
 
 


Aramex
 
750,000
 
 
 
640,872



 


Total (Cost
 $652,528)
 
 
 
 
 
640,872



 


 
 
 
 
 
 
 


UNITED
 KINGDOM – 15.2%
 
 
 
 
 
 



Ashmore Group
 
279,000
 
 
 
1,053,520


 †Berendsen
 
30,000
 
 
 
474,434


 †BrainJuicer Group
 
9,400
 
 
 
49,392


 †Character Group
 
11,400
 
 
 
78,551



Clarkson
 
45,600
 
 
 
1,510,809


 †Computacenter
 
9,000
 
 
 
113,262



Consort Medical
 
92,500
 
 
 
1,574,819


 †Conviviality
 
24,000
 
 
 
78,927


 †Diploma
 
40,000
 
 
 
447,705


e2v
 technologies
 
150,000
 
 
 
497,238


Elementis
 
175,000
 
 
 
589,880


 †Exova Group
 
175,000
 
 
 
373,816


 †Fidessa Group
 
30,000
 
 
 
884,567


 †Finsbury Food Group
 
45,500
 
 
 
75,795


Hargreaves
 Services
 
11,000
 
 
 
41,981


 †ITE Group
 
250,000
 
 
 
581,054


Jupiter
 Fund Management
 
108,000
 
 
 
714,069


Mattioli
 Woods
 
8,900
 
 
 
84,486


Norcros
 
54,360
 
 
 
160,559


Pendragon
 
144,600
 
 
 
99,534


 †Polypipe Group
 
117,000
 
 
 
601,793


 †Real Estate Investors
 
71,700
 
 
 
73,976


Rotork
 
89,000
 
 
 
239,307


Senior
 
130,000
 
 
 
439,847



Spirax-Sarco Engineering
 
28,989
 
 
 
1,396,487


 †Stallergenes Greer 1
 
10,800
 
 
 
375,538


Trifast
 
82,700
 
 
 
152,276


 †Vertu Motors
 
66,300
 
 
 
75,249


 †Victrex
 
18,000
 
 
 
475,019


 †Xaar
 
65,000
 
 
 
402,473


 †Zeal Network
 
2,500
 
 
 
105,641


 


Total (Cost
 $14,984,922)
 
 
 
 
 
13,822,004



 






THE ACCOMPANYING
 NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
 
2015 Annual Report to Stockholders | 17








Royce Global
 Value Trust
 
December
 31, 2015



 


 


Schedule
 of Investments (continued)




 
 
SHARES
 
 
 
VALUE
 


 


 
 
 
 
 
 
 
 


UNITED STATES – 12.7%
 
 
 
 
 
 
 


Brooks
 Automation 2
 
18,100
 
 
$
193,308
 


 †Century Casinos 1
 
 2,900
 
 
 
22,562
 


Commercial
 Metals 2
 
42,000
 
 
 
574,980
 


Diebold
 2,4
 
28,800
 
 
 
866,592
 


Diodes
 1,2,4
 
20,500
 
 
 
471,090
 


EnerSys
 2
 
11,000
 
 
 
615,230
 


Expeditors
 International of Washington 2
 
10,000
 
 
 
451,000
 


Fairchild
 Semiconductor International 1,2
 
24,600
 
 
 
509,466
 


 †FLIR Systems
 
14,100
 
 
 
395,787
 


Greif
 Cl. A
 
8,700
 
 
 
268,047
 


Hallador
 Energy 2
 
18,600
 
 
 
84,816
 


Innospec
 2,4
 
12,457
 
 
 
676,540
 



KBR 2
 
59,200
 
 
 
1,001,664
 


 †Kirby Corporation 1
 
8,900
 
 
 
468,318
 


Nanometrics
 1,2,4
 
44,500
 
 
 
673,730
 


 †National Instruments
 
19,000
 
 
 
545,110
 


Quaker
 Chemical 2
 
8,400
 
 
 
648,984
 


Rogers
 Corporation 1,2,4
 
6,000
 
 
 
309,420
 


Schnitzer
 Steel Industries Cl. A 2
 
19,100
 
 
 
274,467
 


SEACOR
 Holdings 1,2,4
 
6,000
 
 
 
315,360
 


 †SEI Investments 2
 
15,000
 
 
 
786,000
 


Sensient
 Technologies 2,4
 
9,500
 
 
 
596,790
 


Sun
 Hydraulics 2
 
15,139
 
 
 
480,360
 


Tennant
 Company 2
 
6,200
 
 
 
348,812
 


 


Total (Cost
 $13,085,342)
 
 
 
 
 
11,578,433

 


 


 
 
 
 
 
 
 
 


TOTAL COMMON
 STOCKS
 
 
 
 
 
 
 


 


(Cost $104,727,594)

 
 
 
 
 
97,583,938

 


 


 
 
 
 
 
 
 
 


REPURCHASE
 AGREEMENT – 1.9%
 
 
 
 
 
 
 


Fixed Income
 Clearing Corporation, 0.03% dated 12/31/15, due 1/4/16, maturity value $1,703,006
 (collateralized by obligations of various U.S. Government Agencies, 1.625% due 7/31/20,
 valued at $1,737,169)
 
 
 
 
 
 
 


 


(Cost $1,703,000)

 
 
 
 
 
1,703,000

 


 


 
 
 
 
 
 
 
 


TOTAL INVESTMENTS – 108.9%
 
 
 
 
 
 
 


 


(Cost $106,430,594)

 
 
 
 
 
99,286,938

 


 


 
 
 
 
 
 
 
 


LIABILITIES
 LESS CASH AND OTHER ASSETS – (8.9)%
 
 
 
 
 
(8,113,378

)


 
 
 
 
 
 
 


 
 
 
 
 
 
 
 


 


NET ASSETS
– 100.0%
 
 
 
 
$
91,173,560

 


 






 


†
New additions in 2015.


1
Non-income producing.


2
All or a portion
 of these securities were pledged as collateral in connection with the revolving
 credit agreement at December 31, 2015. Total market value of pledged securities
 at December 31, 2015, was $12,402,589.


3
A security
 for which market quotations are not readily available represents 0.0% of net assets.
 This security has been valued at its fair value under procedures approved by the
 Fund’s Board of Directors. This security is defined as a Level 3 security due to the use of significant unobservable
 inputs in the determination of fair value. See Notes to Financial Statements.


4
At December
 31, 2015, a portion of these securities were rehypothecated in connection with the
 Fund’s revolving credit agreement in the aggregate amount of $3,933,961.


 

Securities
 of Global/International Funds are categorized by the country of their headquarters,
 with the exception of exchange-traded funds.


 

Bold indicates
 the Fund’s 20 largest equity holdings in terms of December 31, 2015, market value.


 

TAX INFORMATION:
 The cost of total investments for Federal income tax purposes was $108,211,627.
 At December 31, 2015, net unrealized depreciation for all securities was $8,924,689,
 consisting of aggregate gross unrealized appreciation of $7,516,891 and aggregate
 gross unrealized depreciation of $16,441,580. The primary difference between book
 and tax basis cost is the timing of the recognition of losses on securities sold
 and mark-to-market of Passive Foreign Investment Companies.


 






18 | 2015
 Annual Report to Stockholders
 
THE ACCOMPANYING
 NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS







Royce Global
 Value Trust
 
December
 31, 2015


 
 
 


 


Statement
 of Assets and Liabilities
 
 


 
 
 




ASSETS:
 
 
 
 
 


Investments at value
 
 
$
97,583,938
 


 


Repurchase
 agreements (at cost and value)
 
 
 
1,703,000
 


 


Cash and foreign
 currency
 
 
 
4,162
 


 


Receivable
 for investments sold
 
 
 
628,783
 


 


Receivable
 for dividends and interest
 
 
 
160,417
 


 


Prepaid expenses
 and other assets
 
 
 
42,990
 


 


Total Assets

 
 
 
100,123,290

 


 


LIABILITIES:
 
 
 
 
 


Revolving
 credit agreement
 
 
 
8,000,000
 


 


Payable for
 investments purchased
 
 
 
755,165
 


 


Payable for
 investment advisory fee
 
 
 
97,446
 


 


Payable for
 directors’ fees
 
 
 
9,953
 


 


Payable for
 interest expense
 
 
 
692
 


 


Accrued expenses
 
 
 
68,933
 


 


Deferred capital
 gains tax
 
 
 
17,541
 


 


Total Liabilities

 
 
 
8,949,730

 


 


Net Assets

 
 
$
91,173,560

 


 


ANALYSIS OF
 NET ASSETS:
 
 
 
 
 


Paid-in capital
 - $0.001 par value per share; 10,344,899 shares outstanding (150,000,000 shares
 authorized)
 
 
$
116,929,670
 


 


Undistributed
 net investment income (loss)
 
 
 
(224,615
)


 


Accumulated
 net realized gain (loss) on investments and foreign currency
 
 
 
(18,359,656
)


 


Net unrealized
 appreciation (depreciation) on investments and foreign currency
 
 
 
(7,171,839
)


 


Net Assets
 (net asset value per share - $8.81)
 
 
$
91,173,560

 


 


Investments
 at identified cost
 
 
$
104,727,594
 


 






THE ACCOMPANYING
 NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
 
2015 Annual
 Report to Stockholders | 19







Royce Global
 Value Trust


 


 


Statement
 of Changes in Net Assets

 




 
 
YEAR ENDED 12/31/15
 
 
YEAR ENDED 12/31/14
 


 


 
 
 
 
 
 
 
 
 


INVESTMENT
 OPERATIONS:
 
 
 
 
 
 
 
 


Net investment
 income (loss)
 
$
985,324
 
 
$
1,335,060
 


 


Net realized
 gain (loss) on investments and foreign currency
 
 
(11,820,601
)
 
 
(6,230,541
)


 


Net change
 in unrealized appreciation (depreciation) on investments and foreign currency
 
 
7,399,963
 
 
 
(1,573,933
)


 


Net increase
 (decrease) in net assets from investment operations
 
 
(3,435,314

)
 
 
(6,469,414

)


 


DISTRIBUTIONS:
 
 
 
 
 
 
 
 


Net investment
 income
 
 
(1,029,597
)
 
 
(1,533,038
)


 


Net realized
 gain on investments and foreign currency
 
 
–
 
 
 
–
 


 


Total distributions

 
 
(1,029,597

)
 
 
(1,533,038

)


 


CAPITAL STOCK
 TRANSACTIONS:
 
 
 
 
 
 
 
 


Reinvestment
 of distributions
 
 
353,733
 
 
 
603,492
 


 


Total capital
 stock transactions
 
 
353,733

 
 
 
603,492

 


 


Net Increase
 (Decrease) In Net Assets
 
 
(4,111,178

)
 
 
(7,398,960

)


 


NET ASSETS:
 
 
 
 
 
 
 
 


 


Beginning
 of year
 
 
95,284,738

 
 
 
102,683,698

 


 


End of
 year (including undistributed net investment income (loss) of $(224,615) at 12/31/15
 
and $(199,302) at 12/31/14)
 
$
91,173,560

 
 
$
95,284,738

 


 






20 | 2015
 Annual Report to Stockholders
 
THE ACCOMPANYING
 NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS







Royce Global
 Value Trust
 
Year Ended
 December 31, 2015


 
 
 


 


Statement
 of Operations
 
 






INVESTMENT
 INCOME:
 
 
 
 


INCOME:
 
 
 
 


Dividends
 
$
2,827,456
 


 


Foreign withholding
 tax
 
 
(230,967
)


 


Interest
 
 
29
 


 


Rehypothecation
 income
 
 
2,675
 


 


Securities
 lending
 
 
247
 


 


Total income

 
 
2,599,440

 


 


EXPENSES:
 
 
 
 


 


Investment
 advisory fees
 
 
1,198,138
 


 


Custody and
 transfer agent fees
 
 
115,281
 


 


Interest expense
 
 
98,993
 


 


Stockholder
 reports
 
 
84,590
 


 


Professional
 fees
 
 
37,180
 


 


Directors’ fees
 
 
29,648
 


 


Administrative
 and office facilities
 
 
15,090
 


 


Other expenses
 
 
35,196
 


 


Total expenses

 
 
1,614,116

 


 


Net investment
 income (loss)
 
 
985,324

 


 


REALIZED
 AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY:
 
 
 
 


NET REALIZED
 GAIN (LOSS):
 
 
 
 


 


Investments
 
 
(11,798,475
)


 


Foreign currency
 transactions
 
 
(22,126
)


 


NET CHANGE
 IN UNREALIZED APPRECIATION (DEPRECIATION):
 
 
 
 


 


Investments
 and foreign currency translations
 
 
7,425,832
 


 


Other assets
 and liabilities denominated in foreign currency
 
 
(25,869
)


 


Net realized
 and unrealized gain (loss) on investments and foreign currency
 
 
(4,420,638

)


 


NET INCREASE
 (DECREASE) IN NET ASSETS FROM INVESTMENT OPERATIONS
 
$
(3,435,314

)


 






THE ACCOMPANYING
 NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
 
2015 Annual
 Report to Stockholders | 21







Royce Global
 Value Trust
 
Year Ended
 December 31, 2015


 
 
 


 


Statement
 of Cash Flows
 
 






CASH FLOWS
 FROM OPERATING ACTIVITIES:
 
 
 
 


Net increase
 (decrease) in net assets from investment operations
 
$
(3,435,314
)


 


Adjustments
 to reconcile net increase (decrease) in net assets from investment operations to
 net cash used for operating activities:
 
 
 
 


 


Purchases of long-term investments
 
 
(71,402,917
)


 


Proceeds from
 sales and maturities of long-term investments
 
 
65,164,724
 


 


Net purchases,
 sales and maturities of short-term investments
 
 
(1,703,000
)


 


Net (increase)
 decrease in dividends and interest receivable and other assets
 
 
(47,563
)


 


Net increase
 (decrease) in interest expense payable, accrued expenses and other liabilities
 
 
24,832
 


 


Net change
 in unrealized appreciation (depreciation) on investments
 
 
(7,425,832
)


 


Net realized
 gain (loss) on investments and foreign currency
 
 
11,820,601
 


 


Net cash
 used for operating activities
 
 
(7,004,469

)


 


CASH FLOWS
 FROM FINANCING ACTIVITIES:
 
 
 
 


Net increase
 (decrease) in revolving credit agreement
 
 
8,000,000
 


 


Distributions
 
 
(1,029,597
)


 


Reinvestment
 of distributions
 
 
353,733
 


 


Net cash
 provided by financing activities
 
 
7,324,136

 


 


INCREASE
 (DECREASE) IN CASH:
 
 
319,667

 


 


Cash and
 foreign currency at beginning of year
 
 
(315,505

)


 


Cash and
 foreign currency at end of year
 
$
4,162
 


 






22 | 2015
 Annual Report to Stockholders
 
THE ACCOMPANYING
 NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS








Royce Global
 Value Trust


 


 


Financial
 Highlights


This table
 is presented to show selected data for a share outstanding throughout each period,
 and to assist stockholders in evaluating the Fund’s performance for the periods
 presented.


 




 
 
YEARS ENDED
 
PERIOD ENDED   


 
 
 
 
 
 


 
 
12/31/15
 
12/31/14
 
12/31/131


 


Net Asset
 Value, Beginning of Period
 
$
9.25
 
 
$
10.05
 
 
$
9.78
 


 


INVESTMENT
 OPERATIONS:
 
 
 
 
 
 
 
 
 
 
 
 


Net investment
 income (loss)
 
 
0.10
 
 
 
0.13
 
 
 
(0.00
)


 


Net realized
 and unrealized gain (loss) on investments and foreign currency
 
 
(0.43
)
 
 
(0.77
)
 
 
0.27
 


 


Net increase
 (decrease) in net assets from investment operations
 
 
(0.33
)
 
 
(0.64
)
 
 
0.27
 


 


DISTRIBUTIONS:
 
 
 
 
 
 
 
 
 
 
 
 


Net investment
 income
 
 
(0.10
)
 
 
(0.15
)
 
 
–
 


 


Net realized
 gain on investments and foreign currency
 
 
–
 
 
 
–
 
 
 
–
 


 


Total distributions

 
 
(0.10
)
 
 
(0.15
)
 
 
–
 


 


CAPITAL STOCK
 TRANSACTIONS:
 
 
 
 
 
 
 
 
 
 
 
 


Effect of
 reinvestment of distributions by Common Stockholders
 
 
(0.01
)
 
 
(0.01
)
 
 
–
 


 


Total capital
 stock transactions
 
 
(0.01
)
 
 
(0.01
)
 
 
–
 


 


Net Asset
 Value, End of Period
 
$
8.81
 
 
$
9.25
 
 
$
10.05
 


 


Market
 Value, End of Period
 
$
7.45
 
 
$
8.04
 
 
$
8.89
 


 


TOTAL RETURN:
 2
 
 
 
 
 
 
 
 
 
 
 
 


Net Asset
 Value
 
 
(3.44
)%
 
 
(6.23
)%
 
 
2.76
% 3


Market Value
 
 
(6.06
)%
 
 
(7.86
)%
 
 
(0.95
)% 3


 


RATIOS BASED
 ON AVERAGE NET ASSETS:
 
 
 
 
 
 
 
 
 
 
 
 


Investment
 advisory fee expense
 
 
1.25
%
 
 
1.25
%
 
 
1.25
% 4


 


Other operating
 expenses
 
 
0.43
%
 
 
0.24
%
 
 
0.37
% 4


 


Total expenses
 (net)
 
 
1.68
%
 
 
1.49
%
 
 
1.62
% 4


 


Expenses excluding
 interest expense
 
 
1.58
%
 
 
1.49
%
 
 
1.62
% 4


 


Expenses prior
 to balance credits
 
 
1.68
%
 
 
1.49
%
 
 
1.62
% 4


 


Net investment
 income (loss)
 
 
1.03
%
 
 
1.30
%
 
 
(0.13
)% 4


 


SUPPLEMENTAL
 DATA:
 
 
 
 
 
 
 
 
 
 
 
 


Net Assets
 End of Period (in thousands)
 
$
91,174
 
 
$
95,285
 
 
$
102,684
 


 


Portfolio
 Turnover Rate
 
 
65
%
 
 
43
%
 
 
7
%


 


REVOLVING
 CREDIT AGREEMENT:
 
 
 
 
 
 
 
 
 
 
 
 


Asset coverage
 
 
1240
%
 
 
 
 
 
 
 
 


 


Asset coverage
 per $1,000
 
 
12,397
 
 
 
 
 
 
 
 
 


 






1
The Fund commenced
 operations on October 18, 2013.


2
The Market
 Value Total Return is calculated assuming a purchase of Common Stock on the opening
 of the first business day and a sale on the closing of the last business day of
 each period. Dividends and distributions are assumed for the purposes of this calculation
 to be reinvested at prices obtained under the Fund’s Distribution Reinvestment
 and Cash Purchase Plan. Net Asset Value Total Return is calculated on the same basis,
 except that the Fund’s net asset value is used on the purchase and sale dates
 instead of market value.


3
Not annualized


4
Annualized






THE ACCOMPANYING
 NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
 
2015 Annual
 Report to Stockholders | 23






Royce Global Value Trust
Notes to Financial Statements
Summary of Significant Accounting Policies
Royce Global Value Trust, Inc. (the “Fund”),
 is a diversified closed-end investment company that was incorporated under the laws
 of the State of Maryland on February 14, 2011. The Fund commenced operations on
 October 18, 2013.
The preparation of financial statements
 in conformity with accounting principles generally accepted in the United States
 of America requires management to make estimates and assumptions that affect the
 reported amounts of assets and liabilities and the disclosure of contingent assets
 and liabilities at the date of the financial statements and the reported amounts
 of income and expenses during the reporting period. Actual results could differ
 from those estimates.
The Fund is an investment company and accordingly
 follows the investment company accounting and reporting guidance of the Financial
 Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 “Financial
 Services-Investment Companies”.

VALUATION OF INVESTMENTS:
Securities
 are valued as of the close of trading on the New York Stock Exchange (NYSE) (generally
 4:00 p.m. Eastern time) on the valuation date. Securities that trade on an exchange,
 and securities traded on Nasdaq’s Electronic Bulletin Board, are valued at
 their last reported sales price or Nasdaq official closing price taken from the
 primary market in which each security trades or, if no sale is reported for such
 day, at their highest bid price. Other over-the-counter securities for which market
 quotations are readily available are valued at their highest bid price, except in
 the case of some bonds and other fixed income securities which may be valued by
 reference to other securities with comparable ratings, interest rates and maturities,
 using established independent pricing services. The Fund values its non-U.S. dollar
 denominated securities in U.S. dollars daily at the prevailing foreign currency
 exchange rates as quoted by a major bank. Securities for which market quotations
 are not readily available are valued at their fair value in accordance with the
 provisions of the 1940 Act, under procedures approved by the Fund’s Board of
 Directors, and are reported as Level 3 securities. As a general principle, the fair
 value of a security is the amount which the Fund might reasonably expect to receive
 for the security upon its current sale. However, in light of the judgment involved
 in fair valuations, there can be no assurance that a fair value assigned to a particular
 security will be the amount which the Fund might be able to receive upon its current
 sale. In addition, if, between the time trading ends on a particular security and
 the close of the customary trading session on the NYSE, events occur that are significant
 and may make the closing price unreliable, the Fund may fair value the security.
 The Fund uses an independent pricing service to provide fair value estimates for
 relevant non-U.S. equity securities on days when the U.S. market volatility exceeds
 a certain threshold. This pricing service uses proprietary correlations it has developed
 between the movement of prices of non-U.S. equity securities and indices of U.S.-traded
 securities, futures contracts and other indications to estimate the fair value of
 relevant non-U.S. securities. When fair value pricing is employed, the prices of
 securities used by the Fund may differ from quoted or published prices for the same
 security. Investments in money market funds are valued at net asset value per share.
Various inputs are used in determining the value of the Fund’s investments,
 as noted above. These inputs are summarized in the three broad levels below:


 
Level
 1
–
quoted prices
 in active markets for identical securities.


 
Level 2
–
other significant
 observable inputs (including quoted prices for similar securities, foreign securities
 that may be fair valued and repurchase agreements). The table below includes all
 Level 2 securities. Any Level 2 securities with values based on quoted prices for
 similar securities would be noted in the Schedule of Investments.


 
Level
 3
–
significant
 unobservable inputs (including last trade price before trading was suspended, or
 at a discount thereto for lack of marketability or otherwise, market price information
 regarding other securities, information received from the company and/or published
 documents, including SEC filings and financial statements, or other publicly available
 information).


The inputs or methodology used for valuing
 securities are not necessarily an indication of the risk associated with investing
 in those securities.
The following is a summary of the inputs
 used to value the Fund’s investments as of December 31, 2015. For a detailed
 breakout of common stocks by country, please refer to the Schedule of Investments.


 
 
LEVEL
 1
 
LEVEL
 2
 
LEVEL
 3
 
TOTAL



 


Common Stocks
 
$21,678,424
 
$75,886,804
 
$18,710
 
$97,583,938



 


Cash Equivalents
 
               –
 
   1,703,000
 
         –
 
   1,703,000



 


For the year ended December 31, 2015, certain
 securities have transferred in and out of Level 1, Level 2 and Level 3 measurements.
 The Fund recognizes transfers between levels as of the end of the reporting period.
 At December 31, 2015, securities valued at $42,260 were transferred from Level 2
 to Level 1 and securities valued at $18,710 were transferred from Level 2 to Level
 3 within the fair value hierarchy.
24  |  2015 Annual Report to Stockholders



Royce Global Value Trust
Notes to
 Financial Statements (continued)
VALUATION OF INVESTMENTS (continued):
Level 3 Reconciliation:


 
 
 
 
 
 
REALIZED
 AND UNREALIZED
 
 


 
 
BALANCE
 AS OF 12/31/14
 
TRANSFERS
 IN
 
GAIN
 (LOSS)1
 
BALANCE
 AS OF 12/31/15


 


Common Stocks
 
$ –
 
$18,710
 
$ –
 
$18,710


 




1
The net change
 in unrealized appreciation (depreciation) is included in the accompanying Statement
 of Operations. Change in unrealized appreciation (depreciation) includes net unrealized
 appreciation (depreciation) resulting from changes in investment values during the
 reporting period and the reversal of previously recorded unrealized appreciation
 (depreciation) when gains or losses are realized. Net realized gain (loss) from
 investments and foreign currency transactions is included in the accompanying Statement
 of Operations.


REPURCHASE AGREEMENTS:
      The Fund may enter
 into repurchase agreements with institutions that the Fund’s investment adviser
 has determined are creditworthy. The Fund restricts repurchase agreements to maturities
 of no more than seven days. Securities pledged as collateral for repurchase agreements,
 which are held until maturity of the repurchase agreements, are marked-to-market
 daily and maintained at a value at least equal to the principal amount of the repurchase
 agreement (including accrued interest). Repurchase agreements could involve certain
 risks in the event of default or insolvency of the counter-party, including possible
 delays or restrictions upon the ability of the Fund to dispose of its underlying
 securities. The remaining contractual maturity of the repurchase agreement held
 by the Fund at December 31, 2015 is overnight and continuous.
FOREIGN CURRENCY:
      Net realized foreign
 exchange gains or losses arise from sales and maturities of short-term securities,
 sales of foreign currencies, expiration of currency forward contracts, currency
 gains or losses realized between the trade and settlement dates on securities transactions,
 and the difference between the amounts of dividends, interest, and foreign withholding
 taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts
 actually received or paid. Net unrealized foreign exchange gains and losses arise
 from changes in the value of assets and liabilities, including investments in securities
 at the end of the reporting period, as a result of changes in foreign currency exchange
 rates.
SECURITIES LENDING:
      The Fund loans securities
 through a lending agent to qualified institutional investors for the purpose of
 realizing additional income. Collateral for the Fund on all securities loaned is
 accepted in cash and cash equivalents and invested temporarily by the custodian.
 The collateral maintained is at least 100% of the current market value of the loaned
 securities. The market value of the loaned securities is determined at the close
 of business of the Fund and any additional required collateral is delivered to the
 Fund on the next business day. The Fund retains the risk of any loss on the securities
 on loan as well as incurring the potential loss on investments purchased with cash
 collateral received for securities lending. The Fund’s securities lending income
 consists of the income earned on investing cash collateral, plus any premium payments
 received for lending certain securities, less any rebates paid to borrowers and
 lending agent fees associated with the loan. The lending agent is not affiliated
 with Royce. No securities were on loan at December 31, 2015.
DISTRIBUTIONS AND TAXES:
      As a qualified
 regulated investment company under Subchapter M of the Internal Revenue Code, the
 Fund is not subject to income taxes to the extent that it distributes substantially
 all of its taxable income for its fiscal year. The Schedule of Investments includes
 information regarding income taxes under the caption “Tax Information”.
      The Fund pays any dividends and capital
 gain distributions annually in December. Because federal income tax regulations
 differ from generally accepted accounting principles, income and capital gain distributions
 determined in accordance with tax regulations may differ from net investment income
 and realized gains recognized for financial reporting purposes. Accordingly, the
 character of distributions and composition of net assets for tax purposes differ
 from those reflected in the accompanying financial statements.
CAPITAL GAINS TAXES:
      The Fund is subject
 to a tax imposed on short-term capital gains on securities of issuers domiciled
 in certain countries. The Fund records an estimated deferred tax liability for these
 securities that have been held for less than one year. This amount, if any, is reported
 as deferred capital gains tax in the accompanying Statement of Assets and Liabilities,
 assuming those positions were disposed of at the end of the period, and accounted
 for as a reduction in the market value of the security.
INVESTMENT TRANSACTIONS AND RELATED INVESTMENT
 INCOME:
      Investment transactions are accounted for on the trade date. Dividend
 income is recorded on the ex-dividend date. Non-cash dividend income is recorded
 at the fair market value of the securities received. Interest income is recorded
 on an accrual basis. Premium and discounts on debt securities are amortized using
 the effective yield-to-maturity method. Realized gains and losses from investment
 transactions are determined on the basis of identified cost for book and tax purposes.
2015 Annual Report to Stockholders  |  25



Royce Global Value Trust
Notes to Financial Statements (continued)

EXPENSES:
      The Fund incurs direct and
 indirect expenses. Expenses directly attributable to the Fund are charged to the
 Fund’s operations, while expenses applicable to more than one of the Royce
 Funds are allocated equitably. Certain personnel, occupancy costs and other administrative
 expenses related to the Funds are allocated by Royce & Associates, LLC (“Royce”) under an administration agreement and are included in administrative and
 office facilities and professional fees.
COMPENSATING BALANCE CREDITS:
      The Fund
 has an arrangement with its custodian bank, whereby a portion of the custodian’s
 fee is paid indirectly by credits earned on the Fund’s cash on deposit with
 the bank. This deposit arrangement is an alternative to purchasing overnight investments.
 Conversely, the Fund pays interest to the custodian on any cash overdrafts, to the
 extent they are not offset by credits earned on positive cash balances.
Capital Stock:
      The Fund issued
 48,927 and 75,721 shares of Common Stock as reinvestment of distributions for the
 years ended December 31, 2015 and December 31, 2014, respectively.
Borrowings:
      The Fund has entered
 into a revolving credit agreement (the credit agreement) with BNP Paribas Prime
 Brokerage Inc. (BNPP). The Fund pays a commitment fee of 0.50% per annum on the
 unused portion of the credit agreement. The credit agreement has a 360-day rolling
 term that resets daily; however, if the Fund exceeds certain net asset value triggers,
 the credit agreement may convert to a 60-day rolling term that resets daily. The
 Fund is required to pledge portfolio securities as collateral in an amount up to
 two times the loan balance outstanding and has granted a security interest in the
 securities pledged to, and in favor of, BNPP as security for the loan balance outstanding.
 If the Fund fails to meet certain requirements, or maintain other financial covenants
 required under the credit agreement, the Fund may be required to repay immediately,
 in part or in full, the loan balance outstanding under the credit agreement necessitating
 the sale of portfolio securities at potentially inopportune times. The credit agreement
 also permits, subject to certain conditions, BNPP to rehypothecate portfolio securities
 pledged by the Fund up to the amount of the loan balance outstanding. The Fund continues
 to receive payments in lieu of dividends and interest on rehypothecated securities.
 The Fund also has the right under the credit agreement to recall the rehypothecated
 securities from BNPP on demand. If BNPP fails to deliver the recalled security in
 a timely manner, the Fund is compensated by BNPP for any fees or losses related
 to the failed delivery or, in the event a recalled security is not returned by BNPP,
 the Fund, upon notice to BNPP, may reduce the loan balance outstanding by the amount
 of the recalled security failed to be returned. The Fund receives a portion of the
 fees earned by BNPP in connection with the rehypothecation of portfolio securities.
       As of December 31, 2015, the Fund has outstanding borrowings of $8,000,000. During
 the year ended December 31, 2015, the Fund borrowed an average daily balance of
 $7,693,151 at a weighted average borrowing cost of 1.27%. The maximum amount outstanding
 during the year ended December 31, 2015 was $8,000,000. As of December 31, 2015,
 the aggregate value of rehypothecated securities was $3,933,961. During the year
 ended December 31, 2015, the Fund earned $2,675 in fees from rehypothecated securities.
Investment Advisory Agreement:

      The Investment Advisory Agreement between Royce and the Fund provides for fees to
 be paid at an annual rate of 1.25% of the Fund’s average daily net assets.
 For the year ended December 31, 2015, the Fund accrued and paid Royce investment
 advisory fees totaling $1,198,138.
Purchases and Sales of Investment Securities:

      For the year ended December 31, 2015, the costs of purchases and proceeds
 from sales of investment securities, other than short-term securities, amounted
 to $72,146,832 and $65,666,166, respectively.
      Cross trades were executed by the Fund pursuant
 to Rule 17a-7 under the 1940 Act. Cross trading is the buying or selling of portfolio
 securities between funds to which R&A serves as investment adviser. At its
 regularly scheduled quarterly meetings, the Board reviews such transactions as of
 the most recent calendar quarter for compliance with the requirements and restrictions
 set forth by Rule 17a-7. Cross trades for the year ended December 31, 2015, were
 as follows:


PURCHASES

 
SALES

 
REALIZED
 GAIN (LOSS)


 


$10,074,569
 
$1,041,581
 
$(148,026)


 


Tax Information:
      Distributions
 during the years ended December 31, 2015 and 2014, were characterized as follows
 for tax purposes:



ORDINARY INCOME
 
LONG-TERM
 CAPITAL GAINS


 


2015
 
2014
 
2015
 
2014


 


$1,029,597
 
$1,533,038
 
$  –
 
$  –


 


26  |  2015 Annual Report to Stockholders



Royce Global Value Trust
Tax Information (continued):
      The tax basis components of distributable
 earnings at December 31, 2015, were as follows:


 
 
UNDISTRIBUTED
 LONG-TERM
 
 
 
QUALIFIED
 LATE YEAR
 
 


UNDISTRIBUTED

 
CAPITAL
 GAINS OR
 
NET UNREALIZED

 
ORDINARY
 AND
 
TOTAL



ORDINARY

 
(CAPITAL
 LOSSES
 
APPRECIATION

 
POST-OCTOBER
 LOSS
 
DISTRIBUTABLE



INCOME

 
NOT SUBJECT
 TO EXPIRATION)
 
(DEPRECIATION)1
 
DEFERRALS2
 
EARNINGS



 


$23,117
 
$(16,563,303)
 
$(8,952,873)
 
$(263,051)
 
$(25,756,110)


 




1
Includes timing
 differences on foreign currency, recognition of losses on securities sold and mark-to-market
 of Passive Foreign Investment Companies.


2
Under the
 current tax law, capital losses and qualified late year ordinary losses incurred
 after October 31 may be deferred and treated as occurring on the first day of the
 following fiscal year.


      For financial
 reporting purposes, capital accounts and distributions to stockholders are adjusted
 to reflect the tax character of permanent book/tax differences. For the year ended
 December 31, 2015, the Fund recorded the following permanent reclassifications,
 which relate primarily to current publicly traded partnerships, foreign currency
 transactions, foreign capital gains tax and gains from the sale of Passive Foreign
 Investment Companies. Results of operations and net assets were not affected by
 these reclassifications.


UNDISTRIBUTED
 NET
 
ACCUMULATED
 NET


INVESTMENT
 INCOME
 
REALIZED
 GAIN (LOSS)


 


$18,961
 
$(18,961)


 


      Management has analyzed the Fund’s
 tax positions taken on federal income tax returns for all open tax years (2013-2015)
 and has concluded that as of December 31, 2015, no provision for income tax is required
 in the Fund’s financial statements.
2015 Annual Report to Stockholders  |  27



Royce Global Value Trust
Report of Independent Registered Public
 Accounting Firm
To the Board of Directors and Stockholders
 of Royce Global Value Trust, Inc.:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statement of
operations, of changes in net assets, and of cash flows and the financial highlights present fairly, in all material respects, the financial
position of Royce Global Value Trust, Inc. (the “Fund”) at December 31, 2015, the results of its operations, the changes in its net assets, its cash flows and its financial highlights for the year then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit, which included confirmation of securities at December 31, 2015 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. The statement of changes in net assets for the year ended December 31, 2014 and the financial highlights for each of the fiscal periods presented in the period ended December 31, 2014 were audited by other independent accountants whose report dated February 23, 2015 expressed an unqualified
opinion on those statements.


PricewaterhouseCoopers
 LLP


Baltimore,
 Maryland


February 23,
 2016


28 | 2015 Annual Report to Stockholders






Royce Micro-Cap
 Trust
 
December
 31, 2015






 


Schedule
 of Investments
 
 
 
 
 


Common Stocks
 – 108.7%
 
 
 
 
 


 
 
SHARES

 
 
VALUE



 


 
 
 
 
 
 


CONSUMER
 DISCRETIONARY – 15.1%
 
 
 
 
 


AUTO COMPONENTS
 - 2.6%
 
 
 
 
 


Drew
 Industries 1,2
 
32,800
 
$
1,997,192


Fuel
 Systems Solutions 3
 
86,000
 
 
420,540


Global
 & Yuasa Battery
 
50,500
 
 
1,753,292


Motorcar
 Parts of America 3
 
45,100
 
 
1,524,831



Standard Motor Products
 
61,853
 
 
2,353,507


 
 
 
 
 


 
 
 
 
 
8,049,362



 
 
 
 
 


DISTRIBUTORS
 - 1.3%
 
 
 
 
 



†Fenix Parts 3
 
351,200
 
 
2,384,648


Weyco
 Group
 
59,600
 
 
1,594,896


 
 
 
 
 


 
 
 
 
 
3,979,544



 
 
 
 
 


DIVERSIFIED
 CONSUMER SERVICES - 2.2%
 
 
 
 
 


American
 Public Education 3
 
73,200
 
 
1,362,252


Capella
 Education
 
1,300
 
 
60,086


Collectors
 Universe
 
96,100
 
 
1,489,550



Liberty Tax Cl. A 1
 
108,264
 
 
2,579,931


Lincoln
 Educational Services 3
 
100,000
 
 
199,000


 †Universal Technical Institute
 
270,000
 
 
1,258,200


 
 
 
 
 


 
 
 
 
 
6,949,019



 
 
 
 
 


HOTELS, RESTAURANTS
 & LEISURE - 0.9%
 
 
 
 
 


 †Century
 Casinos 3
 
196,822
 
 
1,531,275


 †Lindblad
 Expeditions Holdings 3
 
122,400
 
 
1,359,864


 
 
 
 
 


 
 
 
 
 
2,891,139



 
 
 
 
 


HOUSEHOLD
 DURABLES - 2.4%
 
 
 
 
 


Cavco
 Industries 3
 
20,391
 
 
1,698,774


Ethan
 Allen Interiors 1
 
50,100
 
 
1,393,782


Flexsteel
 Industries 1
 
20,900
 
 
923,362


iRobot
 Corporation 1,2,3
 
15,000
 
 
531,000


Lifetime
 Brands 1
 
130,794
 
 
1,734,328


Stanley
 Furniture 3
 
93,468
 
 
260,776


Universal
 Electronics 3
 
15,100
 
 
775,385


 
 
 
 
 


 
 
 
 
 
7,317,407



 
 
 
 
 


INTERNET
& CATALOG RETAIL - 1.2%
 
 
 
 
 


Blue
 Nile 1,2,3
 
59,400
 
 
2,205,522


FTD
 Companies 3
 
61,500
 
 
1,609,455


 
 
 
 
 


 
 
 
 
 
3,814,977



 
 
 
 
 


LEISURE PRODUCTS
 - 0.9%
 
 
 
 
 


Nautilus
 3
 
128,600
 
 
2,150,192


Smith
 & Wesson Holding Corporation 1,3
 
31,700
 
 
696,766


Sturm,
 Ruger & Co.
 
1,100
 
 
65,571


 
 
 
 
 


 
 
 
 
 
2,912,529



 
 
 
 
 


MEDIA - 0.7%
 
 
 
 
 


 †New
 Media Investment Group
 
52,800
 
 
1,027,488


Rentrak
 Corporation 3
 
24,800
 
 
1,178,744


 
 
 
 
 


 
 
 
 
 
2,206,232



 
 
 
 
 


SPECIALTY
 RETAIL - 1.5%
 
 
 
 
 


Destination
 Maternity
 
245,500
 
 
2,140,760


Kirkland’s
 
7,900
 
 
114,550


MarineMax
 3
 
5,400
 
 
99,468


Shoe
 Carnival 1
 
31,628
 
 
733,770


Stage
 Stores 1
 
15,000
 
 
136,650


Systemax
 1,2,3
 
74,000
 
 
636,400


TravelCenters
 of America LLC 3
 
2,900
 
 
27,260


West
 Marine 3
 
86,000
 
 
730,140


 
 
 
 
 


 
 
 
 
 
4,618,998



 
 
 
 
 


TEXTILES,
 APPAREL & LUXURY GOODS - 1.4%
 
 
 
 
 


Crown
 Crafts
 
135,459
 
 
1,150,047


Culp
 
32,900
 
 
837,963


J.G.
 Boswell Company 4
 
2,490
 
 
1,556,250


YGM
 Trading
 
1,482,000
 
 
933,332


 
 
 
 
 


 
 
 
 
 
4,477,592



 


Total (Cost
 $44,856,058)
 
 
 
 
47,216,799



 


 
 
 
 
 
 


CONSUMER
 STAPLES – 3.0%
 
 
 
 
 


BEVERAGES
 - 0.2%
 
 
 
 
 


Crimson
 Wine Group 3,4
 
58,124
 
 
501,610



 
 
 
 
 


FOOD PRODUCTS
 - 2.8%
 
 
 
 
 


Binggrae
 3
 
18,078
 
 
1,050,086


Farmer
 Bros. 1,3
 
45,100
 
 
1,455,377


John
 B. Sanfilippo & Son
 
21,700
 
 
1,172,451


Landec
 Corporation 3
 
75,610
 
 
894,466


Limoneira
 Company
 
6,400
 
 
95,616



Seneca Foods Cl. A 3
 
51,400
 
 
1,489,572



Seneca Foods Cl. B 3
 
42,500
 
 
1,356,600


SunOpta
 3
 
162,081
 
 
1,108,634


Waterloo
 Investment Holdings 3,5
 
806,207
 
 
225,738


 
 
 
 
 


 
 
 
 
 
8,848,540



 


Total (Cost
 $6,932,220)
 
 
 
 
9,350,150



 


 
 
 
 
 
 


ENERGY
– 2.7%
 
 
 
 
 


ENERGY EQUIPMENT
 & SERVICES - 1.6%
 
 
 
 
 


Canadian
 Energy Services & Technology
 
25,000
 
 
70,102


Dawson
 Geophysical 3
 
73,654
 
 
254,843


†Era Group 3
 
212,435
 
 
2,368,650


Geospace
 Technologies 1,3
 
9,500
 
 
133,665


Gulf
 Island Fabrication
 
103,216
 
 
1,079,639


Matrix
 Service 1,3
 
25,300
 
 
519,662


Newpark
 Resources 3
 
8,000
 
 
42,240


North
 American Energy Partners
 
50,000
 
 
86,500


Pioneer
 Energy Services 1,2,3
 
57,500
 
 
124,775


Tesco
 Corporation 1
 
58,000
 
 
419,920


 
 
 
 
 


 
 
 
 
 
5,099,996



 
 
 
 
 


OIL, GAS
& CONSUMABLE FUELS - 1.1%
 
 
 
 
 


Ardmore
 Shipping
 
15,500
 
 
197,160


 †Dorchester
 Minerals L.P.
 
 106,127
 
 
1,049,596


Permian
 Basin Royalty Trust
 
266,333
 
 
1,347,645


StealthGas
 3
 
186,085
 
 
638,272


 
 
 
 
 


 
 
 
 
 
3,232,673



 


Total (Cost
 $13,283,624)
 
 
 
 
8,332,669



 


 
 
 
 
 
 


FINANCIALS
– 18.6%
 
 
 
 
 


BANKS - 2.3%
 
 
 
 
 


Bank
 of N.T. Butterfield & Son
 
438,100
 
 
854,295


BCB
 Holdings 3
 
526,221
 
 
65,939


Blue
 Hills Bancorp
 
50,000
 
 
765,500


Bryn
 Mawr Bank
 
25,000
 
 
718,000


Chemung
 Financial 1
 
31,000
 
 
857,460


Fauquier
 Bankshares 1
 
140,200
 
 
2,147,864


First
 Bancorp (The)
 
40,200
 
 
822,894


Peapack-Gladstone
 Financial
 
53,606
 
 
1,105,356


 
 
 
 
 


 
 
 
 
 
7,337,308



 
 
 
 
 


CAPITAL MARKETS
 - 9.1%
 
 
 
 
 


ASA
 Gold and Precious Metals
 
206,150
 
 
1,478,095


BHF
 Kleinwort Benson Group 3
 
160,000
 
 
993,482


Cowen
 Group 3
 
100,000
 
 
383,000


Diamond
 Hill Investment Group 1
 
11,179
 
 
2,112,831


Dundee
 Corporation Cl. A 3
 
435,000
 
 
1,433,548






THE ACCOMPANYING
 NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
 
2015 Annual
 Report to Stockholders | 29







Royce Micro-Cap
 Trust






 


Schedule
 of Investments (continued)
 
 
 
 
 


 
 
 
 
 
 


 
 
SHARES

 
 
VALUE



 


 
 
 
 
 
 


FINANCIALS
 (continued)
 
 
 
 
 


CAPITAL MARKETS
 (continued)
 
 
 
 
 


EQT
 Holdings
 
43,150
 
$
643,961


Fiera
 Capital Cl. A
 
78,000
 
 
639,243


 †Fifth
 Street Asset Management Cl. A
 
259,503
 
 
845,980


INTL
 FCStone 1,3
 
41,727
 
 
1,396,185


JZ
 Capital Partners
 
247,999
 
 
1,401,518


Manning
 & Napier Cl. A
 
170,600
 
 
1,448,394


Medley
 Management Cl. A
 
153,400
 
 
872,846



MVC Capital 1
 
372,400
 
 
2,744,588


Newtek
 Business Services
 
58,500
 
 
837,720


OHA
 Investment
 
204,620
 
 
777,556


Queen
 City Investments 4
 
948
 
 
1,232,400



Silvercrest Asset Management Group Cl. A
 
213,600
 
 
2,539,704


Sprott
 
1,268,333
 
 
2,181,566


U.S.
 Global Investors Cl. A
 
646,254
 
 
756,117


Urbana
 Corporation
 
237,600
 
 
353,730


Westwood
 Holdings Group 1
 
18,300
 
 
953,247



ZAIS Group Holdings Cl. A 1,2,3
 
265,818
 
 
2,461,475


 
 
 
 
 


 
 
 
 
 
28,487,186



 
 
 
 
 


CONSUMER FINANCE
 - 0.4%
 
 
 
 
 


EZCORP
 Cl. A 1,2,3
 
201,000
 
 
1,002,990


J.G.
 Wentworth Company Cl. A 3
 
135,000
 
 
243,000


 
 
 
 
 


 
 
 
 
 
1,245,990



 
 
 
 
 


DIVERSIFIED
 FINANCIAL SERVICES - 1.6%
 
 
 
 
 


Banca
 Finnat Euramerica
 
910,000
 
 
426,671


GAIN
 Capital Holdings
 
25,000
 
 
202,750


PICO
 Holdings 1,2,3
 
153,700
 
 
1,586,184


Value
 Line
 
169,000
 
 
2,269,670


Warsaw
 Stock Exchange
 
52,900
 
 
484,449


 
 
 
 
 


 
 
 
 
 
4,969,724



 
 
 
 
 


INSURANCE
 - 2.0%
 
 
 
 
 


 †eHealth
 1,2,3
 
100,000
 
 
998,000


Hallmark
 Financial Services 3
 
114,000
 
 
1,332,660


Independence
 Holding Company
 
100,080
 
 
1,386,108


State
 Auto Financial 1
 
73,264
 
 
1,508,506


United
 Fire Group 1
 
29,603
 
 
1,134,091


 
 
 
 
 


 
 
 
 
 
6,359,365



 
 
 
 
 


REAL ESTATE
 INVESTMENT TRUSTS (REITS) - 0.5%
 
 
 
 
 


BRT
 Realty Trust 3
 
230,331
 
 
1,460,298



 
 
 
 
 


REAL ESTATE
 MANAGEMENT & DEVELOPMENT - 2.7%
 
 
 
 
 


AV
 Homes 3
 
87,400
 
 
1,119,594


Forestar
 Group 1,2,3
 
53,000
 
 
579,820



FRP Holdings 1,3
 
83,981
 
 
2,850,315


Griffin
 Industrial Realty
 
47,746
 
 
1,245,693


Hopefluent
 Group Holdings
 
1,400,000
 
 
384,106


Marcus
 & Millichap 3
 
1,800
 
 
52,452


Tejon
 Ranch 1,2,3
 
112,162
 
 
2,147,902


Tejon
 Ranch (Warrants) 3
 
13,146
 
 
92


 
 
 
 
 


 
 
 
 
 
8,379,974



 


Total (Cost
 $67,156,570)
 
 
 
 
58,239,845



 


 
 
 
 
 
 


HEALTH
 CARE – 16.1%
 
 
 
 
 


BIOTECHNOLOGY
 - 4.1%
 
 
 
 
 


 †Abeona
 Therapeutics 3
 
299,643
 
 
1,006,800


Aquinox
 Pharmaceuticals 1,2,3
 
18,622
 
 
232,403


ARIAD
 Pharmaceuticals 1,2,3
 
114,102
 
 
713,138


 †Avalanche
 Biotechnologies 3
 
168,246
 
 
1,601,702


ChemoCentryx
 3
 
33,300
 
 
269,730


Fortress
 Biotech 3
 
147,400
 
 
411,246


 †Invitae
 Corporation 3
 
144,936
 
 
1,189,925


Keryx
 Biopharmaceuticals 3
 
271,725
 
 
1,372,211


Sangamo
 BioSciences 3
 
191,785
 
 
1,750,997


 †Stemline
 Therapeutics 3
 
159,179
 
 
1,004,419



Zealand Pharma 3
 
151,000
 
 
3,309,274


 
 
 
 
 


 
 
 
 
 
12,861,845



 
 
 
 
 


HEALTH CARE
 EQUIPMENT & SUPPLIES - 7.0%
 
 
 
 
 


 †Analogic
 Corporation
 
17,200
 
 
1,420,720


AngioDynamics
 1,3
 
106,061
 
 
1,287,580



Atrion Corporation 1
 
9,760
 
 
3,720,512


Cerus
 Corporation 1,2,3
 
140,000
 
 
884,800


Cynosure
 Cl. A 3
 
1,500
 
 
67,005


Derma
 Sciences 3
 
74,958
 
 
342,558


Exactech
 1,2,3
 
127,200
 
 
2,308,680


Inogen
 3
 
5,400
 
 
216,486


Invacare
 Corporation 1
 
44,300
 
 
770,377


STRATEC
 Biomedical
 
14,000
 
 
924,724


†SurModics 3
 
282,000
 
 
5,716,140


Symmetry
 Surgical 3
 
2,975
 
 
27,370


Syneron
 Medical 3
 
69,200
 
 
533,532


TearLab
 Corporation 3
 
85,000
 
 
118,150


Trinity
 Biotech ADR Cl. A
 
100,500
 
 
1,181,880


Utah
 Medical Products
 
38,100
 
 
2,230,374


 
 
 
 
 


 
 
 
 
 
21,750,888



 
 
 
 
 


HEALTH CARE
 PROVIDERS & SERVICES - 3.8%
 
 
 
 
 


Aceto
 Corporation 1
 
79,600
 
 
2,147,608


Addus
 HomeCare 3
 
29,500
 
 
686,760


CorVel
 Corporation 1,2,3
 
40,000
 
 
1,756,800



Cross Country Healthcare 3
 
175,400
 
 
2,874,806


Landauer
 
33,743
 
 
1,110,820


National
 Research Cl. A
 
40,033
 
 
642,129


PharMerica
 Corporation 1,2,3
 
40,000
 
 
1,400,000


Psychemedics
 Corporation
 
37,500
 
 
380,250


U.S.
 Physical Therapy
 
12,600
 
 
676,368


 
 
 
 
 


 
 
 
 
 
11,675,541



 
 
 
 
 


HEALTH CARE
 TECHNOLOGY - 0.1%
 
 
 
 
 


Vocera
 Communications 3
 
33,100
 
 
403,820



 
 
 
 
 


PHARMACEUTICALS
 - 1.1%
 
 
 
 
 


Agile
 Therapeutics 1,2,3
 
80,000
 
 
780,800


Lipocine
 3
 
90,467
 
 
1,169,738


Repros
 Therapeutics 3
 
129,000
 
 
156,090


Theravance
 Biopharma 3
 
83,509
 
 
1,368,713


 
 
 
 
 


 
 
 
 
 
3,475,341



 


Total (Cost
 $40,357,258)
 
 
 
 
50,167,435



 


 
 
 
 
 
 


INDUSTRIALS
– 16.1%
 
 
 
 
 


AEROSPACE
 & DEFENSE - 0.4%
 
 
 
 
 


CPI
 Aerostructures 3
 
9,500
 
 
92,435


FLYHT
 Aerospace Solutions 3
 
1,916,800
 
 
318,613


Innovative
 Solutions and Support 3
 
142,828
 
 
394,205


SIFCO
 Industries 3
 
45,800
 
 
435,100


 
 
 
 
 


 
 
 
 
 
1,240,353



 
 
 
 
 


AIR FREIGHT
 & LOGISTICS - 0.2%
 
 
 
 
 


Frontier
 Services Group 3
 
3,009,086
 
 
687,591



 
 
 
 
 


BUILDING PRODUCTS
 - 1.6%
 
 
 
 
 


AAON
 1
 
21,200
 
 
492,264


Apogee
 Enterprises
 
15,900
 
 
691,809


Burnham
 Holdings Cl. A 4
 
117,000
 
 
1,924,650






30 | 2015
 Annual Report to Stockholders
 
THE ACCOMPANYING
 NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS







December
 31, 2015






 


Schedule
 of Investments (continued)
 
 
 
 
 


 
 
 
 
 
 


 
 
SHARES

 
 
VALUE



 


 
 
 
 
 
 


INDUSTRIALS
 (continued)
 
 
 
 
 


BUILDING PRODUCTS
 (continued)
 
 
 
 
 


Insteel
 Industries
 
60,500
 
$
1,265,660


Patrick
 Industries 3
 
16,900
 
 
735,150


 
 
 
 
 


 
 
 
 
 
5,109,533



 
 
 
 
 


COMMERCIAL
 SERVICES & SUPPLIES - 1.9%
 
 
 
 
 


 †Atento
 3
 
159,501
 
 
1,553,540


CompX
 International Cl. A
 
107,500
 
 
1,225,500



Heritage-Crystal Clean 1,2,3
 
235,077
 
 
2,491,816


Team
 1,3
 
17,500
 
 
559,300


 
 
 
 
 


 
 
 
 
 
5,830,156



 
 
 
 
 


CONSTRUCTION
 & ENGINEERING - 3.9%
 
 
 
 
 


Ameresco
 Cl. A 3
 
275,700
 
 
1,723,125



Integrated Electrical Services 3
 
568,594
 
 
6,294,335


Layne
 Christensen 1,2,3
 
50,000
 
 
263,000


MYR
 Group 1,2,3
 
92,300
 
 
1,902,303


Northwest
 Pipe 3
 
101,800
 
 
1,139,142


Orbit
 Garant Drilling 3
 
1,492,500
 
 
787,400


 
 
 
 
 


 
 
 
 
 
12,109,305



 
 
 
 
 


ELECTRICAL
 EQUIPMENT - 1.2%
 
 
 
 
 


Encore
 Wire 1
 
18,400
 
 
682,456


LSI
 Industries
 
93,012
 
 
1,133,816


Orion
 Energy Systems 3
 
170,000
 
 
368,900


Powell
 Industries
 
28,400
 
 
739,252


 †Power
 Solutions International 1,2,3
 
7,100
 
 
129,575


Preformed
 Line Products
 
17,243
 
 
725,930


 
 
 
 
 


 
 
 
 
 
3,779,929



 
 
 
 
 


INDUSTRIAL
 CONGLOMERATES - 0.5%
 
 
 
 
 


Raven
 Industries 1
 
93,400
 
 
1,457,040



 
 
 
 
 


MACHINERY
 - 3.7%
 
 
 
 
 


CIRCOR
 International 1
 
1,100
 
 
46,365


Columbus
 McKinnon
 
5,300
 
 
100,170


Eastern
 Company (The)
 
39,750
 
 
745,312


Foster
 (L.B.) Company 1
 
99,300
 
 
1,356,438


Graham
 Corporation 1
 
81,150
 
 
1,364,943


Hurco
 Companies
 
57,266
 
 
1,520,985


Kadant
 
34,300
 
 
1,392,923


Luxfer
 Holdings ADR
 
59,712
 
 
587,566


NN
 
103,900
 
 
1,656,166


Pfeiffer
 Vacuum Technology
 
6,000
 
 
611,343


Sun
 Hydraulics
 
8,200
 
 
260,186


Tennant
 Company 1,2
 
33,500
 
 
1,884,710


Twin
 Disc
 
7,000
 
 
73,640


 
 
 
 
 


 
 
 
 
 
11,600,747



 
 
 
 
 


MARINE - 0.1%
 
 
 
 
 


Clarkson
 
13,000
 
 
430,713



 
 
 
 
 


PROFESSIONAL
 SERVICES - 1.5%
 
 
 
 
 


Acacia
 Research 1
 
63,700
 
 
273,273


CBIZ
 3
 
47,000
 
 
463,420


Franklin
 Covey 3
 
68,400
 
 
1,145,016


Heidrick
 & Struggles International
 
46,300
 
 
1,260,286


Kforce
 1
 
3,200
 
 
80,896


Mistras
 Group 3
 
4,100
 
 
78,269


Navigant
 Consulting 3
 
5,100
 
 
81,906


Resources
 Connection
 
20,000
 
 
326,800


RPX
 Corporation 3
 
104,900
 
 
1,153,900


 
 
 
 
 


 
 
 
 
 
4,863,766



 
 
 
 
 


ROAD &
 RAIL - 0.6%
 
 
 
 
 


Marten
 Transport
 
3,300
 
 
58,410


 †Patriot
 Transportation Holding 1,3
 
29,460
 
 
683,472


Universal
 Truckload Services 1
 
77,600
 
 
1,089,504


 
 
 
 
 


 
 
 
 
 
1,831,386



 
 
 
 
 


TRADING COMPANIES
 & DISTRIBUTORS - 0.3%
 
 
 
 
 


Houston
 Wire & Cable
 
172,075
 
 
908,556



 
 
 
 
 


TRANSPORTATION
 INFRASTRUCTURE - 0.2%
 
 
 
 
 


Touax
 3
 
53,197
 
 
578,121



 


Total (Cost
 $46,088,814)
 
 
 
 
50,427,196



 


 
 
 
 
 
 


INFORMATION
 TECHNOLOGY – 26.2%
 
 
 
 
 


COMMUNICATIONS
 EQUIPMENT - 1.6%
 
 
 
 
 


Alliance
 Fiber Optic Products 3
 
72,000
 
 
1,091,520


Applied
 Optoelectronics 1,2,3
 
7,500
 
 
128,700


Bel
 Fuse Cl. A
 
67,705
 
 
985,785


CalAmp
 Corporation 3
 
5,500
 
 
109,615


Ceragon
 Networks 3
 
29,700
 
 
35,937


 †Clearfield
 3
 
78,500
 
 
1,052,685


ClearOne
 
25,000
 
 
323,250


Extreme
 Networks 3
 
124,000
 
 
505,920


KVH
 Industries 3
 
8,900
 
 
83,838


Oclaro
 3
 
152,300
 
 
530,004


PCTEL
 
34,100
 
 
155,155


Sandvine
 Corporation 3
 
22,700
 
 
58,074


 
 
 
 
 


 
 
 
 
 
5,060,483



 
 
 
 
 


ELECTRONIC
 EQUIPMENT, INSTRUMENTS & COMPONENTS - 9.2%
 
 
 
 
 


Agilysys
 3
 
170,587
 
 
1,704,164


Deswell
 Industries
 
524,371
 
 
749,851


DTS
 3
 
73,500
 
 
1,659,630


Electro
 Rent
 
171,800
 
 
1,580,560


ePlus
 3
 
2,700
 
 
251,802


Fabrinet
 3
 
2,200
 
 
52,404


 †FARO
 Technologies 1,2,3
 
60,000
 
 
1,771,200


HollySys
 Automation Technologies
 
56,700
 
 
1,257,606


Inficon
 Holding
 
3,600
 
 
1,148,336


LRAD
 Corporation 3
 
853,456
 
 
1,698,377


Mercury
 Systems 3
 
47,500
 
 
872,100



Mesa Laboratories 1,2
 
27,900
 
 
2,776,050



Newport Corporation 1,2,3
 
204,423
 
 
3,244,193



Orbotech 1,2,3
 
134,000
 
 
2,965,420


PC
 Connection
 
43,716
 
 
989,730


Perceptron
 3
 
8,500
 
 
66,215


Richardson
 Electronics
 
330,900
 
 
1,876,203


Rofin-Sinar
 Technologies 3
 
85,100
 
 
2,278,978


Rogers
 Corporation 1,3
 
1,600
 
 
82,512


Vishay
 Precision Group 3
 
158,000
 
 
1,788,560


 
 
 
 
 


 
 
 
 
 
28,813,891



 
 
 
 
 


INTERNET SOFTWARE
 & SERVICES - 4.8%
 
 
 
 
 


Actua
 Corporation 3
 
52,096
 
 
596,499



Care.com 1,2,3
 
401,654
 
 
2,875,843


 †IZEA 3,4
 
798,700
 
 
315,486


Marchex
 Cl. B
 
85,000
 
 
330,650


QuinStreet
 3
 
392,400
 
 
1,683,396


RealNetworks
 3
 
244,000
 
 
1,037,000


Reis
 
25,000
 
 
593,250


SciQuest
 3
 
108,000
 
 
1,400,760


 †Solium
 Capital 3
 
186,300
 
 
942,473


Stamps.com
 3
 
9,900
 
 
1,085,139


Support.com
 3
 
880,658
 
 
889,465


Textura
 Corporation 1,2,3
 
71,600
 
 
1,545,128






THE ACCOMPANYING
 NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
 
2015 Annual
 Report to Stockholders | 31







Royce Micro-Cap Trust






 


Schedule
 of Investments (continued)
 
 
 
 
 
 
 


 
 
 
 
 
 
 
 


 
 
SHARES

 
 
 
VALUE

 


 


 
 
 
 
 
 
 
 


INFORMATION
 TECHNOLOGY (continued)
 
 
 
 
 
 
 


INTERNET SOFTWARE
 & SERVICES (continued)
 
 
 
 
 
 
 


United
 Online 3
 
132,800
 
 
$
1,565,712
 


 
 
 
 
 
 
 


 
 
 
 
 
 
14,860,801

 


 
 
 
 
 
 
 


IT SERVICES
 - 2.2%
 
 
 
 
 
 
 


Cass
 Information Systems 1
 
29,150
 
 
 
1,500,059
 


Computer
 Task Group 1
 
333,633
 
 
 
2,208,650
 


Hackett
 Group (The)
 
111,100
 
 
 
1,785,377
 


Innodata
 3
 
437,275
 
 
 
1,246,234
 


Sykes
 Enterprises 3
 
2,900
 
 
 
89,262
 


 
 
 
 
 
 
 


 
 
 
 
 
 
6,829,582

 


 
 
 
 
 
 
 


SEMICONDUCTORS
 & SEMICONDUCTOR EQUIPMENT - 4.1%
 
 
 
 
 
 
 


Amtech
 Systems 3
 
160,284
 
 
 
1,003,378
 


Brooks
 Automation 1
 
131,200
 
 
 
1,401,216
 


Cascade
 Microtech 3
 
105,200
 
 
 
1,709,500
 


GSI
 Technology 3
 
60,000
 
 
 
223,200
 


Intermolecular
 3
 
240,000
 
 
 
556,800
 


IXYS
 Corporation
 
18,800
 
 
 
237,444
 


Kulicke
 & Soffa Industries 3
 
88,000
 
 
 
1,026,960
 


MoSys
 1,2,3
 
402,275
 
 
 
438,480
 


Nanometrics
 3
 
50,800
 
 
 
769,112
 


Nova
 Measuring Instruments 3
 
117,900
 
 
 
1,155,420
 


Photronics
 3
 
186,000
 
 
 
2,315,700
 


Rudolph
 Technologies 3
 
2,900
 
 
 
41,238
 


Sigma
 Designs 3
 
62,700
 
 
 
396,264
 


Silicon
 Motion Technology ADR
 
35,300
 
 
 
1,107,008
 


Ultra
 Clean Holdings 3
 
57,000
 
 
 
291,840
 


Xcerra
 Corporation 3
 
26,200
 
 
 
158,510
 


 
 
 
 
 
 
 


 
 
 
 
 
 
12,832,070

 


 
 
 
 
 
 
 


SOFTWARE -
 3.1%
 
 
 
 
 
 
 


American
 Software Cl. A
 
122,752
 
 
 
1,249,615
 


BSQUARE
 Corporation 3
 
83,675
 
 
 
509,581
 


 †Computer
 Modelling Group
 
276,500
 
 
 
1,794,443
 


Gigamon
 3
 
3,600
 
 
 
95,652
 


Model
 N 3
 
95,000
 
 
 
1,060,200
 


PSI
 3
 
34,000
 
 
 
478,291
 


Rubicon
 Project 3
 
60,500
 
 
 
995,225
 


SeaChange
 International 3
 
295,300
 
 
 
1,990,322
 


TiVo
 3
 
151,600
 
 
 
1,308,308
 


 
 
 
 
 
 
 


 
 
 
 
 
 
9,481,637

 


 
 
 
 
 
 
 


TECHNOLOGY
 HARDWARE, STORAGE & PERIPHERALS - 1.2%
 
 
 
 
 
 
 


Intevac
 3
 
251,700
 
 
 
1,185,507
 


Kortek
 
135,007
 
 
 
1,332,127
 


Silicon
 Graphics International 3
 
106,400
 
 
 
627,760
 


TransAct
 Technologies
 
78,600
 
 
 
674,388
 


 
 
 
 
 
 
 


 
 
 
 
 
 
3,819,782

 


 


Total (Cost
 $83,689,269)
 
 
 
 
 
81,698,246

 


 


 
 
 
 
 
 
 
 


MATERIALS
– 5.6%
 
 
 
 
 
 
 


CHEMICALS
 - 1.3%
 
 
 
 
 
 
 


Balchem
 Corporation 1
 
11,775
 
 
 
715,920
 


FutureFuel
 Corporation
 
85,262
 
 
 
1,151,037
 


Quaker
 Chemical 1
 
27,400
 
 
 
2,116,924
 


 
 
 
 
 
 
 


 
 
 
 
 
 
3,983,881

 


 
 
 
 
 
 
 


CONSTRUCTION
 MATERIALS - 0.7%
 
 
 
 
 
 
 


Ash
 Grove Cement 4
 
8,000
 
 
 
1,664,000
 


Monarch
 Cement 4
 
16,303
 
 
 
489,090
 


 
 
 
 
 
 
 


 
 
 
 
 
 
2,153,090

 


 
 
 
 
 
 
 


CONTAINERS
 & PACKAGING - 0.5%
 
 
 
 
 
 
 


UFP
 Technologies 3
 
62,236
 
 
 
1,482,461

 


 
 
 
 
 
 
 


METALS &
 MINING - 3.1%
 
 
 
 
 
 
 


Alamos
 Gold Cl. A
 
236,044
 
 
 
776,180
 


Ampco-Pittsburgh
 
92,252
 
 
 
946,506
 


Central
 Steel & Wire 4
 
788
 
 
 
429,476
 


Comstock
 Mining 3
 
938,634
 
 
 
375,360
 


Exeter
 Resource 3
 
1,271,700
 
 
 
413,303
 


Haynes
 International 1
 
19,000
 
 
 
697,110
 


Hecla
 Mining
 
44,518
 
 
 
84,139
 


Horsehead
 Holding Corporation 1,2,3
 
11,900
 
 
 
24,395
 


Imdex
 3
 
525,666
 
 
 
76,137
 


MAG
 Silver 3
 
96,050
 
 
 
678,113
 



Major Drilling Group International
 
796,857
 
 
 
2,522,392
 


Materion
 Corporation
 
50,000
 
 
 
1,400,000
 


Olympic
 Steel
 
70,000
 
 
 
810,600
 


Pretium
 Resources 3
 
90,000
 
 
 
452,699
 


Universal
 Stainless & Alloy Products 3
 
6,100
 
 
 
56,669
 


Victoria
 Gold 3
 
890,000
 
 
 
99,696
 


 
 
 
 
 
 
 


 
 
 
 
 
 
9,842,775

 


 


Total (Cost
 $18,953,830)
 
 
 
 
 
17,462,207

 


 


 
 
 
 
 
 
 
 


TELECOMMUNICATION
 SERVICES – 0.1%
 
 
 
 
 
 
 


DIVERSIFIED
 TELECOMMUNICATION SERVICES - 0.1%
 
 
 
 
 
 
 


ORBCOMM
 3
 
45,800
 
 
 
331,592

 


 


Total (Cost
 $283,906)
 
 
 
 
 
331,592

 


 


 
 
 
 
 
 
 
 


UTILITIES
– 0.3%
 
 
 
 
 
 
 


GAS UTILITIES
 - 0.1%
 
 
 
 
 
 
 


Shizuoka
 Gas
 
40,000
 
 
 
255,668

 


 
 
 
 
 
 
 


INDEPENDENT
 POWER & RENEWABLE ELECTRICITY PRODUCER - 0.0%
 
 
 
 
 
 
 


Alterra
 Power 3
 
450,000
 
 
 
149,599

 


 
 
 
 
 
 
 


WATER UTILITIES
 - 0.2%
 
 
 
 
 
 
 


GWR
 Global Water Resources
 
106,000
 
 
 
580,675

 


 


Total (Cost
 $936,784)
 
 
 
 
 
985,942

 


 


 
 
 
 
 
 
 
 


MISCELLANEOUS6 – 4.9%
 
 
 
 
 
 
 


 


Total (Cost
 $16,516,798)
 
 
 
 
 
15,224,770

 


 


 
 
 
 
 
 
 
 


TOTAL COMMON
 STOCKS
 
 
 
 
 
 
 


 


(Cost $339,055,131)
 
 
 
 
 
339,436,851

 


 


 
 
 
 
 
 
 
 


PREFERRED STOCK - 0.4%
 
 
 
 
 
 
 


Seneca Foods
Conv. 3,4
 
45,409
 
 
 
1,315,499

 


 


(Cost $578,719)

 
 
 
 
 
1,315,499

 


 


 
 
 
 
 
 
 
 


REPURCHASE
 AGREEMENT– 4.6%
 
 
 
 
 
 
 



Fixed Income Clearing Corporation, 0.03% dated 12/31/15, due 1/4/16, maturity value
 $14,418,048 (collateralized by obligations of various U.S. Government Agencies,
 1.625% due 7/31/20, valued at $14,708,363)


 


(Cost $14,418,000)

 
 
 
 
 
14,418,000

 


 


 
 
 
 
 
 
 
 


TOTAL INVESTMENTS
– 113.7%
 
 
 
 
 
 
 


 


(Cost $354,051,850)

 
 
 
 
 
355,170,350

 


 


 
 
 
 
 
 
 
 


LIABILITIES
 LESS CASH AND OTHER ASSETS – (13.7)%
 
 
 
 
 
(42,763,258
)


 
 
 
 
 
 
 


 
 
 
 
 
 
 
 


 


NET ASSETS
– 100.0%
 
 
 
 
$
312,407,092

 


 






32 | 2015
 Annual Report to Stockholders
 
THE ACCOMPANYING
 NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS







December
 31, 2015






 


†
New additions
 in 2015.


1
All or
 a portion of these securities were pledged as collateral in connection with the
 revolving credit agreement at December 31, 2015. Total market value of pledged securities
 at December 31, 2015, was $82,340,578.


2
At December
 31, 2015, a portion of these securities were rehypothecated in connection with the
 Fund’s revolving credit agreement in the aggregate amount of $29,125,481.


3
Non-income
 producing.


4
These securities
 are defined as Level 2 securities due to fair value being based on quoted prices
 for similar securities. See Notes to Financial Statements.


5
A security
 for which market quotations are not readily available represents 0.1% of net assets.
 This security has been valued at its fair value under procedures approved by the
 Fund’s Board of Directors. This security is defined as a Level 3 security due
 to the use of significant unobservable inputs in the determination of fair value.
 See Notes to Financial Statements.


6
Includes
 securities first acquired in 2015 and less than 1% of net assets.


 
 


 
Bold
 indicates the Fund’s 20 largest equity holdings in terms of December 31, 2015,
 market value.


 
 


 
TAX
 INFORMATION: The cost of total investments for Federal income tax purposes was
 $355,802,750. At December 31, 2015, net unrealized depreciation for all securities
 was $632,400, consisting of aggregate gross unrealized appreciation of $64,839,661
 and aggregate gross unrealized depreciation of $65,472,061. The primary difference
 between book and tax basis cost is the timing of the recognition of losses on securities
 sold, investments in publicly traded partnerships and mark-to-market of Passive
 Foreign Investment Companies.


 






THE ACCOMPANYING
 NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
 
2015 Annual
 Report to Stockholders | 33







Royce Micro-Cap
 Trust
 
December
 31, 2015


 
 
 


 


Statement
 of Assets and Liabilities
 
 






ASSETS:
 
 
 
 


Investments
 at value
 
$
340,752,350
 


 


Repurchase
 agreements (at cost and value)
 
 
14,418,000
 


 


Cash and foreign
 currency
 
 
50,124
 


 


Receivable
 for investments sold
 
 
3,346,488
 


 


Receivable
 for dividends and interest
 
 
567,218
 


 


Prepaid expenses
 and other assets
 
 
30,554
 


 


Total Assets

 
 
359,164,734

 


 


LIABILITIES:
 
 
 
 


 


Revolving
 credit agreement
 
 
45,000,000
 


 


Payable for
 investments purchased
 
 
1,423,302
 


 


Payable for
 investment advisory fee
 
 
192,194
 


 


Payable for
 directors’ fees
 
 
29,609
 


 


Payable for
 interest expense
 
 
3,892
 


 


Accrued expenses
 
 
108,645
 


 


Total Liabilities

 
 
46,757,642

 


 


Net Assets

 
$
312,407,092

 


 


ANALYSIS OF
 NET ASSETS:
 
 
 
 


Paid-in capital - $0.001 par value per share; 36,374,786 shares outstanding (150,000,000 shares authorized)
 
$
306,854,627
 


 


Undistributed
 net investment income (loss)
 
 
(116,177
)


 


Accumulated
 net realized gain (loss) on investments and foreign currency
 
 
4,552,877
 


 


Net unrealized
 appreciation (depreciation) on investments and foreign currency
 
 
1,115,765
 


 


Net Assets
 (net asset value per share - $8.59)
 
$
312,407,092

 


 


Investments
 at identified cost
 
$
339,633,850
 


 






34 | 2015
 Annual Report to Stockholders
 
THE ACCOMPANYING
 NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS







Royce Micro-Cap
 Trust


 


 


Statement
 of Changes in Net Assets






 
 

YEAR ENDED 12/31/15
 

YEAR ENDED 12/31/14


 


 
 
 
 
 
 
 
 
 


INVESTMENT
 OPERATIONS:
 
 
 
 
 
 
 
 


Net investment
 income (loss)
 
$
917,928
 
 
$
(382,932
)


 


Net realized
 gain (loss) on investments and foreign currency
 
 
21,372,239
 
 
 
94,504,058
 


 


Net change
 in unrealized appreciation (depreciation) on investments and foreign currency
 
 
(71,062,194
)
 
 
(85,903,074
)


 


Net increase
 (decrease) in net assets from investment operations
 
 
(48,772,027
)
 
 
8,218,052

 


 


DISTRIBUTIONS:
 
 
 
 
 
 
 
 


Net investment
 income
 
 
(399,672
)
 
 
(1,343,094
)


 


Net realized
 gain on investments and foreign currency
 
 
(43,520,307
)
 
 
(89,530,419
)


 


Total distributions

 
 
(43,919,979
)
 
 
(90,873,513
)


 


CAPITAL STOCK
 TRANSACTIONS:
 
 
 
 
 
 
 
 


Reinvestment
 of distributions
 
 
17,611,123
 
 
 
37,022,256
 


 


Total capital
 stock transactions
 
 
17,611,123

 
 
 
37,022,256

 


 


Net Increase
 (Decrease) In Net Assets
 
 
(75,080,883
)
 
 
(45,633,205
)


 


NET ASSETS:
 
 
 
 
 
 
 
 


 


Beginning
 of year
 
 
387,487,975

 
 
 
433,121,180

 


 


End of
 year (including undistributed net investment income (loss) of $(116,177) at 12/31/15
 and $(1,763,387) at 12/31/14)
 
$
312,407,092

 
 
$
387,487,975

 


 






THE ACCOMPANYING
 NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
 
2015 Annual
 Report to Stockholders | 35







Royce Micro-Cap
 Trust
 
Year Ended
 December 31, 2015


 
 
 


 


Statement
 of Operations
 
 






INVESTMENT
 INCOME:
 
 
 
 


INCOME:
 
 
 
 


Dividends
 
$
5,352,830
 


 


Foreign withholding
 tax
 
 
(90,772
)


 


Interest
 
 
312
 


 


Rehypothecation
 income
 
 
258,203
 


 


Total income

 
 
5,520,573

 


 


EXPENSES:
 
 
 
 


 


Investment
 advisory fees
 
 
3,350,257
 


 


Interest expense
 
 
737,528
 


 


Stockholder
 reports
 
 
139,562
 


 


Custody and
 transfer agent fees
 
 
99,018
 


 


Directors’ fees
 
 
93,378
 


 


Administrative
 and office facilities
 
 
58,985
 


 


Professional
 fees
 
 
57,082
 


 


Other expenses
 
 
66,835
 


 


Total expenses

 
 
4,602,645

 


 


Net investment
 income (loss)
 
 
917,928

 


 


REALIZED
 AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY:
 
 
 
 


NET REALIZED
 GAIN (LOSS):
 
 
 
 


 


Investments
 
 
21,372,172
 


 


Foreign currency
 transactions
 
 
67
 


 


NET CHANGE
 IN UNREALIZED APPRECIATION (DEPRECIATION):
 
 
 
 


 


Investments
 and foreign currency translations
 
 
(71,065,569
)


 


Other assets
 and liabilities denominated in foreign currency
 
 
3,375
 


 


Net realized
 and unrealized gain (loss) on investments and foreign currency
 
 
(49,689,955
)


 


NET INCREASE
 (DECREASE) IN NET ASSETS FROM INVESTMENT OPERATIONS
 
$
(48,772,027
)


 






36 | 2015
 Annual Report to Stockholders
 
THE ACCOMPANYING
 NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS







Royce Micro-Cap
 Trust
 
Year Ended
 December 31, 2015


 
 
 


 


Statement
 of Cash Flows
 
 






CASH FLOWS
 FROM OPERATING ACTIVITIES:
 
 
 
 


Net increase
 (decrease) in net assets from investment operations
 
$
(48,772,027
)


 


Adjustments
 to reconcile net increase (decrease) in net assets from investment operations to
 net cash provided by operating activities:
 
 
 
 


 


Purchases
 of long-term investments
 
 
(146,887,346
)


 


Proceeds
 from sales and maturities of long-term investments
 
 
199,467,869
 


 


Net
 purchases, sales and maturities of short-term investments
 
 
(11,762,000
)


 


Net
 (increase) decrease in dividends and interest receivable and other assets
 
 
(232,001
)


 


Net
 increase (decrease) in interest expense payable, accrued expenses and other liabilities
 
 
(149,031
)


 


Net
 change in unrealized appreciation (depreciation) on investments
 
 
71,065,569
 


 


Net
 realized gain (loss) on investments and foreign currency
 
 
(21,372,239
)


 


Net cash
 provided by operating activities
 
 
41,358,794

 


 


CASH FLOWS
 FROM FINANCING ACTIVITIES:
 
 
 
 


Net increase
 (decrease) in revolving credit agreement
 
 
(15,000,000
)


 


Distributions
 
 
(43,919,979
)


 


Reinvestment
 of distributions
 
 
17,611,123
 


 


Net cash
 used for financing activities
 
 
(41,308,856
)


 


INCREASE
 (DECREASE) IN CASH:
 
 
49,938

 


 


Cash and
 foreign currency at beginning of year
 
 
186
 


 


Cash and
 foreign currency at end of year
 
$
50,124

 


 






THE ACCOMPANYING
 NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
 
2015 Annual
 Report to Stockholders | 37







Royce Micro-Cap
 Trust


 


 


Financial
 Highlights


This table
 is presented to show selected data for a share of Common Stock outstanding throughout
 each period, and to assist stockholders in evaluating the Fund’s performance
 for the periods presented.






 
 

YEARS ENDED


 
 
 


 
 

12/31/15
 

12/31/14
 

12/31/13
 

12/31/12
 

12/31/11


 


Net Asset
 Value, Beginning of Period
 
$
11.33
 
 
$
14.12
 
 
$
10.93
 
 
$
9.86
 
 
$
11.34
 


 


INVESTMENT
 OPERATIONS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Net investment
 income (loss)
 
 
0.03
 
 
 
(0.01
)
 
 
0.01
 
 
 
0.15
 
 
 
0.04
 


 


Net realized
 and unrealized gain (loss) on investments and foreign currency
 
 
(1.42
)
 
 
0.25
 
 
 
4.64
 
 
 
1.58
 
 
 
(0.82
)


 


Total investment
 operations
 
 
(1.39
)
 
 
0.24
 
 
 
4.65
 
 
 
1.73
 
 
 
(0.78
)


 


DISTRIBUTIONS
 TO PREFERRED STOCKHOLDERS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


 


Net investment
 income
 
 
–
 
 
 
–
 
 
 
–
 
 
 
(0.02
)
 
 
(0.02
)


 


Net realized
 gain on investments and foreign currency
 
 
–
 
 
 
–
 
 
 
–
 
 
 
(0.09
)
 
 
(0.11
)


 


Total distributions
 to Preferred Stockholders
 
 
–

 
 
 
–

 
 
 
–

 
 
 
(0.11
)
 
 
(0.13
)


 



Net Increase (Decrease) in Net Assets Applicable to Common Stockholders from Investment
 Operations
 
 
(1.39
)
 
 
0.24
 
 
 
4.65
 
 
 
1.62
 
 
 
(0.91
)


 


DISTRIBUTIONS
 TO COMMON STOCKHOLDERS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


 


Net investment
 income
 
 
(0.01
)
 
 
(0.04
)
 
 
(0.03
)
 
 
(0.08
)
 
 
(0.05
)


 


Net realized
 gain on investments and foreign currency
 
 
(1.25
)
 
 
(2.86
)
 
 
(1.35
)
 
 
(0.43
)
 
 
(0.24
)


 


Return of
 capital
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
(0.24
)


 


Total distributions
 to Common Stockholders
 
 
(1.26
)
 
 
(2.90
)
 
 
(1.38
)
 
 
(0.51
)
 
 
(0.53
)


 


CAPITAL STOCK
 TRANSACTIONS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Effect of
 reinvestment of distributions by Common Stockholders
 
 
(0.09
)
 
 
(0.13
)
 
 
(0.08
)
 
 
(0.04
)
 
 
(0.04
)


 


Total capital
 stock transactions
 
 
(0.09
)
 
 
(0.13
)
 
 
(0.08
)
 
 
(0.04
)
 
 
(0.04
)


 


Net Asset
 Value, End of Period
 
$
8.59
 
 
$
11.33
 
 
$
14.12
 
 
$
10.93
 
 
$
9.86
 


 


Market
 Value, End of Period
 
$
7.26
 
 
$
10.08
 
 
$
12.61
 
 
$
9.45
 
 
$
8.77
 


 


TOTAL RETURN:
 1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Net Asset
 Value
 
 
(11.64
)%
 
 
3.46
%
 
 
44.66
%
 
 
17.23
%
 
 
(7.69
)%


Market Value
 
 
(16.06
)%
 
 
3.06
%
 
 
49.42
%
 
 
13.95
%
 
 
(4.99
)%


 


RATIOS BASED
 ON AVERAGE NET ASSETS APPLICABLE TO COMMON STOCKHOLDERS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Investment
 advisory fee expense 2
 
 
0.93
%
 
 
0.93
%
 
 
0.82
%
 
 
1.12
%
 
 
0.97
%


 


Other operating
 expenses
 
 
0.35
%
 
 
0.25
%
 
 
0.29
%
 
 
0.18
%
 
 
0.15
%


 


Total expenses
 (net) 3
 
 
1.28
%
 
 
1.18
%
 
 
1.11
%
 
 
1.30
%
 
 
1.12
%


 


Expenses net
 of fee waivers and excluding interest expense
 
 
1.08
%
 
 
1.05
%
 
 
0.96
%
 
 
1.27
%
 
 
1.12
%


 


Expenses prior
 to fee waivers and balance credits
 
 
1.28
%
 
 
1.18
%
 
 
1.11
%
 
 
1.32
%
 
 
1.15
%


 


Expenses prior
 to fee waivers
 
 
1.28
%
 
 
1.18
%
 
 
1.11
%
 
 
1.32
%
 
 
1.15
%


 


Net investment
 income (loss)
 
 
0.26
%
 
 
(0.09
)%
 
 
0.08
%
 
 
1.46
%
 
 
0.40
%


 


SUPPLEMENTAL
 DATA:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Net Assets
 Applicable to Common Stockholders, End of Period (in thousands)
 
$
312,407
 
$
387,488
 
$
433,121
 
$
318,545
 
$
279,292   


 


Liquidation
 Value of Preferred Stock, End of Period (in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
60,000   



 


Portfolio
 Turnover Rate
 
 
39

%
 
41

%
 
29

%
 
28

%
 
30%


 


PREFERRED
 STOCK:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Total shares
 outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,400,000


 


Asset coverage
 per share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
141.37  



 







Liquidation preference per share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
25.00  


 


Average month-end
 market value per share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
25.41  


 


REVOLVING
 CREDIT AGREEMENT:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Asset coverage
 
 
794

%
 
746

%
 
1062

%
 
808

%
 
 
 


 


Asset coverage
 per $1,000
 
$
7,942

 
$
7,458
 
$
10,625
 
$
8,079

 
 
 
 


 






1
The Market
 Value Total Return is calculated assuming a purchase of Common Stock on the opening
 of the first business day and a sale on the closing of the last business day of
 each period. Dividends and distributions are assumed for the purposes of this calculation
 to be reinvested at prices obtained under the Fund’s Distribution Reinvestment
 and Cash Purchase Plan. Net Asset Value Total Return is calculated on the same basis,
 except that the Fund’s net asset value is used on the purchase and sale dates
 instead of market value.


2
The investment
 advisory fee is calculated based on average net assets over a rolling 36-month basis,
 while the above ratios of investment advisory fee expenses are based on the average
 net assets applicable to Common Stockholders over a 12-month basis.


3
Expense
 ratios based on total average net assets including liquidation value of Preferred
 Stock were 1.10% and 0.93% for the years ended December 31, 2012 and 2011, respectively.






38 | 2015
 Annual Report to Stockholders
 
THE ACCOMPANYING
 NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS







Royce Micro-Cap
 Trust






Notes to
 Financial Statements


 


Summary
 of Significant Accounting Policies


Royce Micro-Cap Trust, Inc. (the “Fund”), is a diversified closed-end investment company that was incorporated under the laws of the State of Maryland on September 9, 1993. The Fund commenced operations on December 14, 1993.


The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.


The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 “Financial Services-Investment Companies”.


 


VALUATION
 OF INVESTMENTS:


Securities are valued as of the close of trading on the New York Stock Exchange (NYSE) (generally 4:00 p.m. Eastern time) on the valuation date. Securities that trade on an exchange, and securities traded on Nasdaq’s Electronic Bulletin Board, are valued at their last reported sales price or Nasdaq official closing price taken from the primary market in which each security trades or, if no sale is reported for such day, at their highest bid price. Other over-the-counter securities for which market quotations are readily available are valued at their highest bid price, except in the case of some bonds and other fixed income securities which may be valued by reference to other securities with comparable ratings, interest rates and maturities, using established independent pricing services. The Fund values its non-U.S. dollar denominated securities in U.S. dollars daily at the prevailing foreign currency exchange rates as quoted by a major bank. Securities for which market quotations are not readily available are valued at their fair value in accordance with the provisions of the 1940 Act, under procedures approved by the Fund’s Board of Directors, and are reported as Level 3 securities. As a general principle, the fair value of a security is the amount which the Fund might reasonably expect to receive for the security upon its current sale. However, in light of the judgment involved in fair valuations, there can be no assurance that a fair value assigned to a particular security will be the amount which the Fund might be able to receive upon its current sale. In addition, if, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and may make the closing price unreliable, the Fund may fair value the security. The Fund uses an independent pricing service to provide fair value estimates for relevant non-U.S. equity securities on days when the U.S. market volatility exceeds a certain threshold. This pricing service uses proprietary correlations it has developed between the movement of prices of non-U.S. equity securities and indices of U.S.-traded securities, futures contracts and other indications to estimate the fair value of relevant non-U.S. securities. When fair value pricing is employed, the prices of securities used by the Fund may differ from quoted or published prices for the same security. Investments in money market funds are valued at net asset value per share.


Various inputs are used in determining the value of the Fund’s investments, as noted above. These inputs are summarized in the three
broad levels below:




 
 
Level 1
 –
quoted
 prices in active markets for identical securities.


 
 
Level 2
 –
other significant
 observable inputs (including quoted prices for similar securities, foreign securities
 that may be fair valued and repurchase agreements). The table below includes all
 Level 2 securities. Level 2 securities with values based on quoted prices for similar
 securities are noted in the Schedule of Investments.


 
 
Level 3
 –
significant
 unobservable inputs (including last trade price before trading was suspended, or
 at a discount thereto for lack of marketability or otherwise, market price information
 regarding other securities, information received from the company and/or published
 documents, including SEC filings and financial statements, or other publicly available
 information).




The inputs
 or methodology used for valuing securities are not necessarily an indication of
 the risk associated with investing in those securities.


The following is a summary
 of the inputs used to value the Fund’s investments as of December 31, 2015. For a detailed breakout of common stocks by sector
 classification, please refer to the Schedule of Investments.






 
 

LEVEL 1      
 

LEVEL 2      
 

LEVEL 3        
 

TOTAL         


 


Common Stocks
 
$
313,789,996
 
 
$
25,421,117
 
 
$
225,738
 
 
$
339,436,851

 


 


Preferred
 Stocks
 
 
–
 
 
 
1,315,499
 
 
 
–
 
 
 
1,315,499

 


 


Cash Equivalents
 
 
–
 
 
 
14,418,000
 
 
 
–
 
 
 
14,418,000

 


 






For the
 year ended December 31, 2015, certain securities have transferred in and out of
 Level 1 and Level 2 measurements. The Fund recognizes transfers between levels as
 of the end of the reporting period. At December 31, 2015, securities valued at $643,961
 were transferred from Level 2 to Level 1 within the fair value hierarchy.






2015 Annual
 Report to Stockholders | 39







Royce Micro-Cap
 Trust



Notes to
 Financial Statements (continued)


 


VALUATION
 OF INVESTMENTS (continued):







Level 3 Reconciliation:


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


 
 
 
 
 
 
 
 
 
 

REALIZED AND UNREALIZED
 
 
 
 


 
 

BALANCE AS OF 12/31/14
 

SALES
 

GAIN (LOSS)1
 

BALANCE AS OF 12/31/15


 


Common Stocks
 
 
$325,702
 
 
 
$1
 
 
 
$(99,963)
 
 
 
$225,738
 


 




1
The net
 change in unrealized appreciation (depreciation) is included in the accompanying
 Statement of Operations. Change in unrealized appreciation (depreciation) includes
 net unrealized appreciation (depreciation) resulting from changes in investment
 values during the reporting period and the reversal of previously recorded unrealized
 appreciation (depreciation) when gains or losses are realized. Net realized gain
 (loss) from investments and foreign currency transactions is included in the accompanying
 Statement of Operations.






    The following
 table summarizes the valuation techniques used and unobservable inputs approved
 by the Valuation Committee to determine the fair value of certain, material Level
 3 investments. The table does not include Level 3 investments with values derived
 utilizing prices from prior transactions or third party pricing information with
 adjustments (e.g. broker quotes, pricing services, net asset values).






 
 

FAIR VALUE AT
 
 
 
 
 
 
 
 
 
 
 
 
 

IMPACT TO VALUATION FROM


 
 

12/31/15
 

VALUATION TECHNIQUE(S)
 

UNOBSERVABLE INPUT(S)
 

RANGE AVERAGE
 

AN INCREASE IN INPUT 1


 


Common Stocks
 
$
225,738
 
 
 
Discounted
 Present Value
Balance Sheet Analysis
 
 
 
Liquidity
 Discount
 
 
 
30%-40%
 
 
 
Decrease
 


 




 1
This column
 represents the directional change in the fair value of the Level 3 investments that
 would result in an increase from the corresponding unobservable input. A decrease
 to the unobservable input would have the opposite effect. Significant increases
 and decreases in these unobservable inputs in isolation could result in significantly
 higher or lower fair value measurements.






REPURCHASE
 AGREEMENTS:


    The Fund
 may enter into repurchase agreements with institutions that the Fund’s investment
 adviser has determined are creditworthy. The Fund restricts repurchase agreements
 to maturities of no more than seven days. Securities pledged as collateral for repurchase
 agreements, which are held until maturity of the repurchase agreements, are marked-to-market
 daily and maintained at a value at least equal to the principal amount of the repurchase
 agreement (including accrued interest). Repurchase agreements could involve certain
 risks in the event of default or insolvency of the counter-party, including possible
 delays or restrictions upon the ability of the Fund to dispose of its underlying
 securities. The remaining contractual maturity of the repurchase agreement held
 by the Fund at December 31, 2015 is overnight and continuous.


 


FOREIGN CURRENCY:


    Net realized
 foreign exchange gains or losses arise from sales and maturities of short-term securities,
 sales of foreign currencies, expiration of currency forward contracts, currency
 gains or losses realized between the trade and settlement dates on securities transactions,
 and the difference between the amounts of dividends, interest, and foreign withholding
 taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts
 actually received or paid. Net unrealized foreign exchange gains and losses arise
 from changes in the value of assets and liabilities, including investments in securities
 at the end of the reporting period, as a result of changes in foreign currency exchange
 rates.


 


TAXES:


    As a qualified
 regulated investment company under Subchapter M of the Internal Revenue Code, the
 Fund is not subject to income taxes to the extent that it distributes substantially
 all of its taxable income for its fiscal year. The Schedule of Investments includes
 information regarding income taxes under the caption “Tax Information”.


 


DISTRIBUTIONS:


    The Fund pays
 quarterly distributions on the Fund’s Common Stock at the annual rate of 7%
 of the rolling average of the prior four calendar quarter-end NAVs of the Fund’s Common Stock, with the fourth quarter distribution being the greater of 1.75%
 of the rolling average or the distribution required by IRS regulations.
 Prior to November 15, 2012, distributions to Preferred Stockholders were accrued
 daily and paid quarterly. Distributions to Common Stockholders are recorded on ex-dividend
 date. Distributable capital gains and/or net investment income were first allocated
 to Preferred Stockholder distributions, with any excess allocable to Common Stockholders.
 If capital gains and/or net investment income were allocated to both Preferred and
 Common Stockholders, the tax character of such allocations was proportional. To
 the extent that distributions are not paid from long-term capital gains, net investment
 income or net short-term capital gains, they will represent a return of capital.
 Distributions are determined in accordance with income tax regulations that may
 differ from accounting principles generally accepted in the United States of America.
 Permanent book and tax differences relating to stockholder distributions will result
 in reclassifications within the capital accounts. Undistributed net investment income
 may include temporary book and tax basis differences, which will reverse in a subsequent
 period. Any taxable income or gain remaining undistributed at fiscal year end is
 distributed in the following year.






40 | 2015
 Annual Report to Stockholders







Royce Micro-Cap
 Trust


 


Notes to
 Financial Statements (continued)






INVESTMENT
 TRANSACTIONS AND RELATED INVESTMENT INCOME:


    Investment
 transactions are accounted for on the trade date. Dividend income is recorded on
 the ex-dividend date. Non-cash dividend income is recorded at the fair market value
 of the securities received. Interest income is recorded on an accrual basis. Premium
 and discounts on debt securities are amortized using the effective yield-to-maturity
 method. Realized gains and losses from investment transactions are determined on
 the basis of identified cost for book and tax purposes.


 


EXPENSES:


    The Fund
 incurs direct and indirect expenses. Expenses directly attributable to the Fund
 are charged to the Fund’s operations, while expenses applicable to more than one of the
 Royce Funds are allocated equitably. Certain personnel, occupancy costs and other
 administrative expenses related to the Funds are allocated by Royce & Associates,
 LLC (“Royce”) under an administration agreement and are included in administrative
 and office facilities and professional fees. The Fund has adopted a deferred fee
 agreement that allows the Directors to defer the receipt of all or a portion of
 directors’ fees otherwise payable. The deferred fees are invested in certain
 Royce Funds until distributed in accordance with the agreement.


 


COMPENSATING
 BALANCE CREDITS:


    The Fund
 has an arrangement with its custodian bank, whereby a portion of the custodian’s
 fee is paid indirectly by credits earned on the Fund’s cash on deposit with
 the bank. This deposit arrangement is an alternative to purchasing overnight investments.
 Conversely, the Fund pays interest to the custodian on any cash overdrafts, to the
 extent they are not offset by credits earned on positive cash balances.


 


Capital
 Stock:


    The Fund
 issued 2,189,322 and 3,505,620 shares of Common Stock as reinvestment of distributions
 for years ended December 31, 2015 and December 31, 2014, respectively.


 


Borrowings:



    The Fund
 has entered into a revolving credit agreement (the credit agreement) with BNP Paribas
 Prime Brokerage Inc. (BNPP). The Fund pays a commitment fee of 0.50% per annum on
 the unused portion of the credit agreement. The credit agreement has a 360-day rolling
 term that resets daily; however, if the Fund exceeds certain net asset value triggers,
 the credit agreement may convert to a 60-day rolling term that resets daily. The
 Fund is required to pledge portfolio securities as collateral in an amount up to
 two times the loan balance outstanding and has granted a security interest in the
 securities pledged to, and in favor of, BNPP as security for the loan balance outstanding.
 If the Fund fails to meet certain requirements, or maintain other financial covenants
 required under the credit agreement, the Fund may be required to repay immediately,
 in part or in full, the loan balance outstanding under the credit agreement necessitating
 the sale of portfolio securities at potentially inopportune times. The credit agreement
 also permits, subject to certain conditions, BNPP to rehypothecate portfolio securities
 pledged by the Fund up to the amount of the loan balance outstanding. The Fund continues
 to receive payments in lieu of dividends and interest on rehypothecated securities.
 The Fund also has the right under the credit agreement to recall the rehypothecated
 securities from BNPP on demand. If BNPP fails to deliver the recalled security in
 a timely manner, the Fund is compensated by BNPP for any fees or losses related
 to the failed delivery or, in the event a recalled security is not returned by BNPP,
 the Fund, upon notice to BNPP, may reduce the loan balance outstanding by the amount
 of the recalled security failed to be returned. The Fund receives a portion of the
 fees earned by BNPP in connection with the rehypothecation of portfolio securities.


    
As of December 31, 2015, the Fund has outstanding borrowings of $45,000,000. During
 the year ended December 31, 2015, the Fund borrowed an average daily balance of $57,698,630
 at a weighted average borrowing cost of 1.26%. The maximum amount outstanding during
 the year ended December 31, 2015 was $60,000,000. As of December 31, 2015, the aggregate
 value of rehypothecated securities was $29,125,481. During the year ended December
 31, 2015, the Fund earned $258,203 in fees from rehypothecated securities.


 


Investment
 Advisory Agreement:


    As compensation
 for its services under the Investment Advisory Agreement, Royce receives a fee comprised
 of a Basic Fee (“Basic Fee”) and an adjustment to the Basic Fee based
 on the investment performance of the Fund in relation to the investment record of
 the Russell 2000.


    The Basic
 Fee is a monthly fee equal to 1/12 of 1% (1% on an annualized basis) of the average
 of the Fund’s month-end net assets applicable to Common Stockholders, plus
 the liquidation value of outstanding Preferred Stock through October 31, 2015, for
 the rolling 36-month period ending with such month (the “performance period”). The
 Basic Fee for each month is increased or decreased at the rate of 1/12 of .05% for
 each percentage point that the investment performance of the Fund exceeds, or is
 exceeded by, the percentage change in the investment record of the Russell 2000
 for the performance period by more than two percentage points. The performance period
 for each such month is a rolling 36-month period ending with such month. The maximum
 increase or decrease in the Basic Fee for any month may not exceed 1/12 of .5%. Accordingly,
 for each month, the maximum monthly fee rate as adjusted for performance is 1/12






2015 Annual
 Report to Stockholders | 41







Royce Micro-Cap
 Trust


 


Notes to
 Financial Statements (continued)






Investment
 Advisory Agreement (continued):


of 1.5%
 and is payable if the investment performance of the Fund exceeds the percentage
 change in the investment record of the Russell 2000 by 12 or more percentage points
 for the performance period, and the minimum monthly fee rate as adjusted for performance
 is 1/12 of .5% and is payable if the percentage change in the investment record of
 the Russell 2000 exceeds the investment performance of the Fund by 12 or more percentage
 points for the performance period.


    For the
 twelve rolling 36-month periods in 2015, the Fund’s investment performance
 ranged from 1% to 10% below the investment performance of the Russell 2000. Accordingly,
 the net investment advisory fee consisted of a Basic Fee of $3,847,073 and a net
 downward adjustment of $496,816 for the performance of the Fund relative to that
 of the Russell 2000. For the year ended December 31, 2015, the Fund accrued and
 paid Royce investment advisory fees totaling $3,350,257.


 


Purchases
 and Sales of Investment Securities:


    For the
 year ended December 31, 2015, the costs of purchases and proceeds from sales of
 investment securities, other than short-term securities, amounted to $146,797,402
 and $180,593,359, respectively.
    Cross trades were executed by the Fund pursuant to
 Rule 17a-7 under the 1940 Act. Cross trading is the buying or selling of portfolio
 securities between funds to which R&A serves as investment adviser. At its
 regularly scheduled quarterly meetings, the Board reviews such transactions as of
 the most recent calendar quarter for compliance with the requirements and restrictions
 set forth by Rule 17a-7. Cross trades for the year ended December 31, 2015, were
 as follows:







PURCHASES
 
 

SALES
 

REALIZED GAIN (LOSS)


 


 
$27,582,337
 
 
 
 
$3,448,609
 
 
 
$(1,067,717)
 


 






Tax Information:



    Distributions
 during the years ended December 31, 2015 and 2014, were characterized as follows
 for tax purposes:







ORDINARY INCOME
 

LONG-TERM CAPITAL GAINS


 


2015
 
 
 
2014
 
 
 
2015
 
 
 
2014
 


 


$7,501,533
 
 
 
$15,250,124
 
 
 
$36,418,446
 
 
 
$75,623,389
 


 


    The tax basis components of distributable
 earnings at December 31, 2015, were as follows:


 
 
 
 

UNDISTRIBUTED LONG-TERM
 
 
 
 
 

QUALIFIED LATE YEAR
 
 
 
 



UNDISTRIBUTED
 

CAPITAL GAINS OR
 

NET UNREALIZED
 

ORDINARY AND
 

TOTAL



ORDINARY
 

(CAPITAL LOSSES
 

APPRECIATION
 

POST-OCTOBER LOSS
 

DISTRIBUTABLE



INCOME
 

NOT SUBJECT TO EXPIRATION)
 

(DEPRECIATION) 1
 

DEFERRALS 2
 

EARNINGS


 


 
$510,737
 
 
 
$6,312,289
 
 
 
$(635,134)
 
 
 
$(635,427)
 
 
 
$5,552,465
 


 




 1
Includes
 timing differences on foreign currency, recognition of losses on securities sold,
 publicly traded partnerships and mark-to-market of Passive Foreign Investment Companies.


 2
Under the
 current tax law, capital losses and qualified late year ordinary losses incurred
 after October 31 may be deferred and treated as occurring on the first day of the
 following fiscal year.






    For financial
 reporting purposes, capital accounts and distributions to stockholders are adjusted
 to reflect the tax character of permanent book/tax differences. For the year ended
 December 31, 2015, the Fund recorded the following permanent reclassifications,
 which relate primarily to current investments in publicly traded partnerships and
 Trusts, foreign currency transactions, dividend redesignations and gains from the
 sale of Passive Foreign Investment Companies. Results of operations and net assets
 were not affected by these reclassifications.







UNDISTRIBUTED NET
 

ACCUMULATED NET
 
 
 
 



INVESTMENT INCOME
 

REALIZED GAIN (LOSS)
 

PAID-IN CAPITAL


 


 
$1,128,953
 
 
 
$(684,544)
 
 
 
$(444,409)
 


 






    Management has analyzed the Fund’s tax positions taken on federal income tax returns for all open tax years (2012-2015) and has
concluded that as of December 31, 2015, no provision for income tax is required in the Fund’s financial statements.






42 | 2015
 Annual Report to Stockholders







Royce Micro-Cap
 Trust


 


Report
 of Independent Registered Public Accounting Firm






To the
 Board of Directors and Stockholders of Royce Micro-Cap Trust, Inc.:


 



In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statement of
operations, of changes in net assets, and of cash flows and the financial highlights present fairly, in all material respects, the financial
position of Royce Micro-Cap Trust, Inc. (the “Fund”) at December 31, 2015, the results of its operations, the changes in its net assets, its cash flows and its financial highlights for the year then ended, in conformity with accounting principles generally accepted in the United
States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted
our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United
States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our audit, which included confirmation of securities at December
31, 2015 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. The statement of changes in net
assets for the year ended December 31, 2014 and the financial highlights for each of the fiscal periods presented in the period ended
December 31, 2014 were audited by other independent accountants whose report dated February 23, 2015 expressed an unqualified
opinion on those statements.







PricewaterhouseCoopers
 LLP


Baltimore,
 Maryland


February 23,
 2016






2015 Annual
 Report to Stockholders | 43







Royce Value
 Trust






 


Schedule
 of Investments
 
 
 
 
 
 


Common Stocks
 – 105.2%
 
 
 
 
 
 


 
 
SHARES

 
 
 
VALUE



 


 
 
 
 
 
 
 


CONSUMER
 DISCRETIONARY – 12.6%
 
 
 
 
 
 


AUTO COMPONENTS
 - 1.4%
 
 
 
 
 
 


Drew
 Industries
 
94,616
 
 
$
5,761,168


Gentex
 Corporation
 
302,970
 
 
 
4,850,550


Global
 & Yuasa Battery
 
28,500
 
 
 
989,481


MRF
 
800
 
 
 
482,523


Selamat
 Sempurna
 
1,816,700
 
 
 
627,466


Standard
 Motor Products
 
50,391
 
 
 
1,917,378


 
 
 
 
 
 


 
 
 
 
 
 
14,628,566



 
 
 
 
 
 


AUTOMOBILES
 - 1.3%
 
 
 
 
 
 



Thor Industries 1
 
168,010
 
 
 
9,433,761


Winnebago
 Industries
 
211,400
 
 
 
4,206,860


 
 
 
 
 
 


 
 
 
 
 
 
13,640,621



 
 
 
 
 
 


DISTRIBUTORS
 - 1.1%
 
 
 
 
 
 



Core-Mark Holding Company
 
115,200
 
 
 
9,439,488


Weyco
 Group
 
97,992
 
 
 
2,622,266


 
 
 
 
 
 


 
 
 
 
 
 
12,061,754



 
 
 
 
 
 


DIVERSIFIED
 CONSUMER SERVICES - 1.7%
 
 
 
 
 
 


American
 Public Education 2
 
39,400
 
 
 
733,234


Collectors
 Universe
 
62,400
 
 
 
967,200


DeVry
 Education Group
 
52,054
 
 
 
1,317,487


†Liberty Tax Cl. A
 
144,740
 
 
 
3,449,154


†LifeLock 1,2,3
 
142,000
 
 
 
2,037,700


Lincoln
 Educational Services 2
 
430,600
 
 
 
856,894


Regis
 Corporation 1,2
 
210,400
 
 
 
2,977,160


Sotheby’s
 
138,200
 
 
 
3,560,032


Universal
 Technical Institute
 
534,032
 
 
 
2,488,589


 
 
 
 
 
 


 
 
 
 
 
 
18,387,450



 
 
 
 
 
 


HOTELS, RESTAURANTS
 & LEISURE - 0.2%
 
 
 
 
 
 


Century
 Casinos 2
 
183,160
 
 
 
1,424,985


Thomas
 Cook (India)
 
120,000
 
 
 
369,030


Tropicana
 Entertainment 2,4
 
16,100
 
 
 
272,895


 
 
 
 
 
 


 
 
 
 
 
 
2,066,910



 
 
 
 
 
 


HOUSEHOLD
 DURABLES - 2.2%
 
 
 
 
 
 


Ethan
 Allen Interiors
 
288,700
 
 
 
8,031,634


Flexsteel
 Industries
 
18,500
 
 
 
817,330


Harman
 International Industries
 
28,600
 
 
 
2,694,406


Mohawk
 Industries 1,2
 
22,400
 
 
 
4,242,336


Natuzzi
 ADR 2
 
2,096,300
 
 
 
3,375,043


NVR
 2
 
660
 
 
 
1,084,380


Samson
 Holding
 
2,500,000
 
 
 
308,752


Stanley
 Furniture 2,5
 
1,012,235
 
 
 
2,824,136


 
 
 
 
 
 


 
 
 
 
 
 
23,378,017



 
 
 
 
 
 


INTERNET
& CATALOG RETAIL - 0.3%
 
 
 
 
 
 


Blue
 Nile 2
 
53,500
 
 
 
1,986,455


Manutan
 International
 
12,200
 
 
 
649,706


 
 
 
 
 
 


 
 
 
 
 
 
2,636,161



 
 
 
 
 
 


LEISURE PRODUCTS
 - 1.1%
 
 
 
 
 
 


LeapFrog
 Enterprises Cl. A 2
 
162,000
 
 
 
115,020



Nautilus 2
 
656,600
 
 
 
10,978,352


Shimano
 
3,500
 
 
 
536,065


 
 
 
 
 
 


 
 
 
 
 
 
11,629,437



 
 
 
 
 
 


MEDIA - 0.9%
 
 
 
 
 
 


E.W.
 Scripps Company Cl. A
 
139,260
 
 
 
2,645,940


Harte-Hanks
 
136,730
 
 
 
443,005


McClatchy
 Company (The) Cl. A 2
 
557,400
 
 
 
674,454


New
 Media Investment Group
 
46,800
 
 
 
910,728


Pico
 Far East Holdings
 
3,484,400
 
 
 
944,189


Rentrak
 Corporation 2
 
15,400
 
 
 
731,962


T4F
 Entretenimento 2
 
263,617
 
 
 
206,386


Technicolor
 
30,000
 
 
 
242,759


Television
 Broadcasts
 
58,400
 
 
 
239,998


Wiley
 (John) & Sons Cl. A
 
55,980
 
 
 
2,520,779


 
 
 
 
 
 


 
 
 
 
 
 
9,560,200



 
 
 
 
 
 


MULTILINE
 RETAIL - 0.0%
 
 
 
 
 
 


New
 World Department Store China
 
1,447,500
 
 
 
220,136


Parkson
 Retail Asia
 
345,800
 
 
 
64,629


 
 
 
 
 
 


 
 
 
 
 
 
284,765



 
 
 
 
 
 


SPECIALTY
 RETAIL - 1.4%
 
 
 
 
 
 


Buckle
 (The) 1
 
130,595
 
 
 
4,019,714


Destination
 Maternity
 
420,376
 
 
 
3,665,679


Genesco
 2
 
57,115
 
 
 
3,245,846


I.T
 
1,127,000
 
 
 
298,322


Oriental
 Watch Holdings
 
967,900
 
 
 
142,138


Systemax
 2
 
194,000
 
 
 
1,668,400


TravelCenters
 of America LLC 2
 
62,500
 
 
 
587,500


USS
 
35,000
 
 
 
526,598


West
 Marine 2
 
131,100
 
 
 
1,113,039


 
 
 
 
 
 


 
 
 
 
 
 
15,267,236



 
 
 
 
 
 


TEXTILES,
 APPAREL & LUXURY GOODS - 1.0%
 
 
 
 
 
 


Crown
 Crafts
 
118,041
 
 
 
1,002,168


Culp
 
29,400
 
 
 
748,818


J.G.
 Boswell Company 4
 
3,940
 
 
 
2,462,500


Kewal
 Kiran Clothing
 
2,000
 
 
 
66,357


Movado
 Group
 
79,161
 
 
 
2,035,229


Pacific
 Textiles Holdings
 
350,000
 
 
 
540,160


Stella
 International Holdings
 
150,000
 
 
 
371,102


Van
 de Velde
 
10,000
 
 
 
681,713


Wolverine
 World Wide 1
 
148,500
 
 
 
2,481,435


YGM
 Trading
 
1,082,600
 
 
 
681,798


 
 
 
 
 
 


 
 
 
 
 
 
11,071,280



 


Total (Cost $122,068,088)
 
 
 
 
 
134,612,397



 


 
 
 
 
 
 
 


CONSUMER
 STAPLES – 2.4%
 
 
 
 
 
 


BEVERAGES
 - 0.3%
 
 
 
 
 
 


Compania
 Cervecerias Unidas ADR
 
134,000
 
 
 
2,902,440



 
 
 
 
 
 


FOOD PRODUCTS
 - 2.0%
 
 
 
 
 
 


Alico
 1
 
27,000
 
 
 
1,044,630


Binggrae
 2
 
14,000
 
 
 
813,210


Cal-Maine
 Foods
 
88,216
 
 
 
4,087,929


Farmer
 Bros. 2
 
40,000
 
 
 
1,290,800


Industrias
 Bachoco ADR
 
41,895
 
 
 
2,062,491


Sanderson
 Farms 1
 
7,500
 
 
 
581,400


Seneca
 Foods Cl. A 2
 
229,255
 
 
 
6,643,810


Seneca
 Foods Cl. B 2
 
13,840
 
 
 
441,773


SunOpta
 2
 
143,559
 
 
 
981,943


Tootsie
 Roll Industries 1
 
109,859
 
 
 
3,470,446


Waterloo
 Investment Holdings 2,6
 
598,676
 
 
 
167,629


 
 
 
 
 
 


 
 
 
 
 
 
21,586,061



 
 
 
 
 
 


PERSONAL PRODUCTS
 - 0.1%
 
 
 
 
 
 


Inter
 Parfums
 
5,700
 
 
 
135,774


Nu
 Skin Enterprises Cl. A 1
 
31,000
 
 
 
1,174,590


 
 
 
 
 
 


 
 
 
 
 
 
1,310,364



 


Total (Cost
 $22,016,530)
 
 
 
 
 
25,798,865



 


 
 
 
 
 
 
 


ENERGY
– 3.7%
 
 
 
 
 
 


ENERGY EQUIPMENT
 & SERVICES - 3.1%
 
 
 
 
 
 


CARBO
 Ceramics 1
 
53,000
 
 
 
911,600






44 | 2015
 Annual Report to Stockholders
 
THE ACCOMPANYING
 NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS







December
 31, 2015






 


Schedule
 of Investments (continued)
 
 
 
 
 
 


 
 
 
 
 
 
 


 
 
SHARES

 
 
 
VALUE



 


 
 
 
 
 
 
 


ENERGY
 (continued)
 
 
 
 
 
 


ENERGY EQUIPMENT
 & SERVICES (continued)
 
 
 
 
 
 


Ensign
 Energy Services
 
134,000
 
 
$
714,693


Era
 Group 2
 
356,000
 
 
 
3,969,400


Gulf
 Island Fabrication
 
32,964
 
 
 
344,804


Helmerich
 & Payne
 
95,660
 
 
 
5,122,593


ION
 Geophysical 2
 
1,078,200
 
 
 
542,442


Oil
 States International 2
 
51,233
 
 
 
1,396,099


Pason
 Systems
 
388,380
 
 
 
5,442,428



SEACOR Holdings 2
 
170,469
 
 
 
8,959,851


TGS-NOPEC
 Geophysical
 
181,470
 
 
 
2,870,533


Trican
 Well Service 2
 
897,300
 
 
 
415,026


Unit
 Corporation 2
 
254,579
 
 
 
3,105,864


 
 
 
 
 
 


 
 
 
 
 
 
33,795,333



 
 
 
 
 
 


OIL, GAS
& CONSUMABLE FUELS - 0.6%
 
 
 
 
 
 


Green
 Plains
 
98,000
 
 
 
2,244,200


Permian
 Basin Royalty Trust
 
161,000
 
 
 
814,660


World
 Fuel Services
 
66,600
 
 
 
2,561,436


WPX
 Energy 2
 
110,000
 
 
 
631,400


 
 
 
 
 
 


 
 
 
 
 
 
6,251,696



 


Total (Cost
 $60,383,624)
 
 
 
 
 
40,047,029



 


 
 
 
 
 
 
 


FINANCIALS
– 19.3%
 
 
 
 
 
 


BANKS - 2.3%
 
 
 
 
 
 


Bank
 of N.T. Butterfield & Son
 
1,784,161
 
 
 
3,479,114


BCB
 Holdings 2
 
209,426
 
 
 
26,243


Blue
 Hills Bancorp
 
104,180
 
 
 
1,594,996


†Canadian Western Bank
 
279,500
 
 
 
4,722,635


Farmers
 & Merchants Bank of Long Beach 4
 
1,200
 
 
 
7,488,000


Fauquier
 Bankshares
 
160,800
 
 
 
2,463,456


First
 Citizens BancShares Cl. A
 
17,026
 
 
 
4,395,602


 
 
 
 
 
 


 
 
 
 
 
 
24,170,046



 
 
 
 
 
 


CAPITAL MARKETS
 - 8.8%
 
 
 
 
 
 


AllianceBernstein
 Holding L.P.
 
24,500
 
 
 
584,325


Ares
 Management L.P.
 
375,900
 
 
 
4,860,387


Artisan
 Partners Asset Management Cl. A
 
223,200
 
 
 
8,048,592


ASA
 Gold and Precious Metals
 
324,821
 
 
 
2,328,967


Ashmore
 Group
 
1,144,000
 
 
 
4,319,809


Azimut
 Holding
 
17,500
 
 
 
432,026


BHF
 Kleinwort Benson Group 2
 
148,761
 
 
 
923,697


CETIP
 - Mercados Organizados
 
430,000
 
 
 
4,060,936


Citadel
 Capital 2
 
11,799,921
 
 
 
2,396,137


Cowen
 Group 2
 
250,824
 
 
 
960,656


Dundee
 Corporation Cl. A 2
 
1,079,900
 
 
 
3,558,823


Eaton
 Vance 1
 
40,500
 
 
 
1,313,415


Edmond
 de Rothschild (Suisse)
 
133
 
 
 
2,204,273



Federated Investors Cl. B
 
334,390
 
 
 
9,580,274


GAMCO
 Investors Cl. A
 
20,200
 
 
 
627,008


GCA
 Savvian
 
11,513
 
 
 
117,681


Jupiter
 Fund Management
 
230,000
 
 
 
1,520,704


Lazard
 Cl. A
 
87,435
 
 
 
3,935,449


Manning
 & Napier Cl. A
 
465,492
 
 
 
3,952,027


Medley
 Management Cl. A
 
109,500
 
 
 
623,055


mutares
 
9,266
 
 
 
177,241


MVC
 Capital
 
324,200
 
 
 
2,389,354


Newtek
 Business Services
 
65,900
 
 
 
943,688


Partners
 Group Holding
 
1,075
 
 
 
385,963


Rothschild
 & Co
 
196,893
 
 
 
5,025,022



SEI Investments
 
198,905
 
 
 
10,422,622


Sprott
 
590,000
 
 
 
1,014,815


U.S.
 Global Investors Cl. A
 
520,551
 
 
 
609,045


Value
 Partners Group
 
5,453,000
 
 
 
6,299,687


Virtus
 Investment Partners
 
24,920
 
 
 
2,927,103


VZ
 Holding
 
2,000
 
 
 
588,945


Westwood
 Holdings Group
 
54,573
 
 
 
2,842,708


ZAIS
 Group Holdings Cl. A 1,2
 
492,300
 
 
 
4,558,698


 
 
 
 
 
 


 
 
 
 
 
 
94,533,132



 
 
 
 
 
 


CONSUMER FINANCE
 - 0.1%
 
 
 
 
 
 


EZCORP
 Cl. A 2
 
213,000
 
 
 
1,062,870



 
 
 
 
 
 


DIVERSIFIED
 FINANCIAL SERVICES - 2.5%
 
 
 
 
 
 


Banca
 Finnat Euramerica
 
500,000
 
 
 
234,435


First
 Pacific
 
1,020,000
 
 
 
675,631



MarketAxess Holdings
 
90,000
 
 
 
10,043,100


Morningstar
 
84,600
 
 
 
6,802,686


PICO
 Holdings 2
 
409,400
 
 
 
4,225,008


Sofina
 
19,698
 
 
 
2,210,780


TMX
 Group
 
91,000
 
 
 
2,353,754


 
 
 
 
 
 


 
 
 
 
 
 
26,545,394



 
 
 
 
 
 


INSURANCE
 - 2.1%
 
 
 
 
 
 


Alleghany
 Corporation 2
 
2,709
 
 
 
1,294,712


Atlas
 Financial Holdings 2
 
9,500
 
 
 
189,050


eHealth
 2
 
20,000
 
 
 
199,600


E-L
 Financial
 
16,500
 
 
 
8,299,487


Erie
 Indemnity Cl. A
 
25,000
 
 
 
2,391,000


Greenlight
 Capital Re Cl. A 2
 
240,561
 
 
 
4,500,896


Independence
 Holding Company
 
332,964
 
 
 
4,611,551


ProAssurance
 Corporation
 
17,139
 
 
 
831,756


†WMIH 2
 
77,742
 
 
 
201,352


 
 
 
 
 
 


 
 
 
 
 
 
22,519,404



 
 
 
 
 
 


INVESTMENT
 COMPANIES - 0.3%
 
 
 
 
 
 


RIT
 Capital Partners
 
130,500
 
 
 
3,231,286



 
 
 
 
 
 


REAL ESTATE
 MANAGEMENT & DEVELOPMENT - 2.2%
 
 
 
 
 
 


AV
 Homes 2
 
66,100
 
 
 
846,741


Forestar
 Group 2
 
122,000
 
 
 
1,334,680


FRP
 Holdings 2
 
212,958
 
 
 
7,227,794


Kennedy-Wilson
 Holdings
 
101,300
 
 
 
2,439,304


Marcus
 & Millichap 2
 
41,680
 
 
 
1,214,555


St.
 Joe Company (The) 2
 
177,000
 
 
 
3,276,270


Sun
 Frontier Fudousan
 
17,600
 
 
 
128,954


Tejon
 Ranch 2
 
358,000
 
 
 
6,855,700


Tejon
 Ranch (Warrants) 2
 
96,561
 
 
 
676


 
 
 
 
 
 


 
 
 
 
 
 
23,324,674



 
 
 
 
 
 


THRIFTS &
 MORTGAGE FINANCE - 1.0%
 
 
 
 
 
 


Genworth
 MI Canada
 
284,395
 
 
 
5,467,159


Timberland
 Bancorp 5
 
444,200
 
 
 
5,512,522


Vestin
 Realty Mortgage II 2
 
53,557
 
 
 
139,248


 
 
 
 
 
 


 
 
 
 
 
 
11,118,929



 


Total (Cost $208,767,123)
 
 
 
 
 
206,505,735



 


 
 
 
 
 
 
 


HEALTH CARE – 5.2%
 
 
 
 
 
 


BIOTECHNOLOGY
 - 0.9%
 
 
 
 
 
 


ARIAD
 Pharmaceuticals 1,2,3
 
140,000
 
 
 
875,000


Keryx
 Biopharmaceuticals 2
 
70,000
 
 
 
353,500


Myriad
 Genetics 1,2
 
7,973
 
 
 
344,115


Sangamo
 BioSciences 2
 
120,315
 
 
 
1,098,476



Zealand Pharma 2
 
334,307
 
 
 
7,326,579


 
 
 
 
 
 


 
 
 
 
 
 
9,997,670



 
 
 
 
 
 






THE ACCOMPANYING
 NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
 
2015 Annual
 Report to Stockholders | 45







Royce Value
 Trust






 


Schedule
 of Investments (continued)
 
 
 
 
 
 


 
 
 
 
 
 
 


 
 
SHARES

 
 
 
VALUE



 


 
 
 
 
 
 
 


HEALTH
 CARE (continued)
 
 
 
 
 
 


HEALTH CARE
 EQUIPMENT & SUPPLIES - 2.2%
 
 
 
 
 
 


Analogic
 Corporation
 
53,335
 
 
$
4,405,471


Atrion
 Corporation 1
 
17,079
 
 
 
6,510,515


bioMerieux
 
4,000
 
 
 
477,001


Cerus
 Corporation 2
 
156,600
 
 
 
989,712


Derma
 Sciences 2
 
87,142
 
 
 
398,239


DiaSorin
 
7,000
 
 
 
366,050


IDEXX
 Laboratories 1,2,3
 
114,822
 
 
 
8,372,820


Invacare
 Corporation
 
38,900
 
 
 
676,471


Trinity
 Biotech ADR Cl. A
 
82,800
 
 
 
973,728


 
 
 
 
 
 


 
 
 
 
 
 
23,170,007



 
 
 
 
 
 


HEALTH CARE
 PROVIDERS & SERVICES - 0.3%
 
 
 
 
 
 


Aceto
 Corporation
 
42,255
 
 
 
1,140,040


Addus
 HomeCare 2
 
22,200
 
 
 
516,816


Landauer
 
50,000
 
 
 
1,646,000


 
 
 
 
 
 


 
 
 
 
 
 
3,302,856



 
 
 
 
 
 


HEALTH CARE
 TECHNOLOGY - 0.2%
 
 
 
 
 
 


Medidata
 Solutions 2
 
40,000
 
 
 
1,971,600



 
 
 
 
 
 


LIFE SCIENCES
 TOOLS & SERVICES - 1.1%
 
 
 
 
 
 


Bio-Rad
 Laboratories Cl. A 2
 
19,858
 
 
 
2,753,510


Bio-Techne
 
58,743
 
 
 
5,286,870


PAREXEL
 International 2
 
56,600
 
 
 
3,855,592


 
 
 
 
 
 


 
 
 
 
 
 
11,895,972



 
 
 
 
 
 


PHARMACEUTICALS
 - 0.5%
 
 
 
 
 
 


Lipocine
 2
 
55,866
 
 
 
722,347


Medicines
 Company (The) 2
 
58,000
 
 
 
2,165,720


Theravance
 Biopharma 2
 
63,291
 
 
 
1,037,340


Vetoquinol
 
10,000
 
 
 
428,199


Virbac
 
3,000
 
 
 
714,931


 
 
 
 
 
 


 
 
 
 
 
 
5,068,537



 


Total (Cost $36,084,199)
 
 
 
 
 
55,406,642



 


 
 
 
 
 
 
 


INDUSTRIALS
– 28.1%
 
 
 
 
 
 


AEROSPACE
 & DEFENSE - 1.8%
 
 
 
 
 
 


Ducommun
 2
 
117,200
 
 
 
1,900,984


FLYHT
 Aerospace Solutions 2
 
1,683,400
 
 
 
279,816



HEICO Corporation
 
140,338
 
 
 
7,628,774



HEICO Corporation Cl. A
 
80,808
 
 
 
3,975,754


Hexcel
 Corporation
 
47,500
 
 
 
2,206,375


Magellan
 Aerospace
 
122,779
 
 
 
1,428,591


Teledyne
 Technologies 2
 
20,600
 
 
 
1,827,220


 
 
 
 
 
 


 
 
 
 
 
 
19,247,514



 
 
 
 
 
 


AIR FREIGHT
 & LOGISTICS - 2.0%
 
 
 
 
 
 


Expeditors
 International of Washington
 
158,900
 
 
 
7,166,390



Forward Air
 
209,750
 
 
 
9,021,347


Hub
 Group Cl. A 1,2,3
 
149,400
 
 
 
4,922,730


 
 
 
 
 
 


 
 
 
 
 
 
21,110,467



 
 
 
 
 
 


BUILDING PRODUCTS
 - 0.8%
 
 
 
 
 
 


American
 Woodmark 2
 
89,635
 
 
 
7,169,007


Burnham
 Holdings Cl. B 4
 
36,000
 
 
 
592,200


Patrick
 Industries 2
 
14,750
 
 
 
641,625


Polypipe
 Group
 
103,000
 
 
 
529,783


 
 
 
 
 
 


 
 
 
 
 
 
8,932,615



 
 
 
 
 
 


COMMERCIAL
 SERVICES & SUPPLIES - 2.8%
 
 
 
 
 
 


Atento
 2
 
159,200
 
 
 
1,550,608


Brady
 Corporation Cl. A
 
45,900
 
 
 
1,054,782


CompX
 International Cl. A
 
211,100
 
 
 
2,406,540


Copart
 2
 
178,360
 
 
 
6,779,464


dorma+kaba
 Holding
 
600
 
 
 
407,097


Heritage-Crystal
 Clean 2
 
152,527
 
 
 
1,616,786


InnerWorkings
 2
 
114,000
 
 
 
855,000


Kimball
 International Cl. B
 
286,180
 
 
 
2,795,979



Ritchie Bros. Auctioneers
 
401,794
 
 
 
9,687,253


Societe
 BIC
 
2,000
 
 
 
329,082


Steelcase
 Cl. A
 
155,330
 
 
 
2,314,417


 
 
 
 
 
 


 
 
 
 
 
 
29,797,008



 
 
 
 
 
 


CONSTRUCTION
 & ENGINEERING - 2.6%
 
 
 
 
 
 


EMCOR
 Group 1,3
 
134,400
 
 
 
6,456,576


Integrated
 Electrical Services 2
 
677,482
 
 
 
7,499,726


Jacobs
 Engineering Group 1,2
 
164,900
 
 
 
6,917,555


KBR
 
286,192
 
 
 
4,842,368


Northwest
 Pipe 2
 
117,800
 
 
 
1,318,182


Sterling
 Construction 2
 
212,735
 
 
 
1,293,429


 
 
 
 
 
 


 
 
 
 
 
 
28,327,836



 
 
 
 
 
 


ELECTRICAL
 EQUIPMENT - 1.2%
 
 
 
 
 
 


AZZ
 
21,600
 
 
 
1,200,312


Franklin
 Electric
 
104,600
 
 
 
2,827,338


Global
 Power Equipment Group
 
631,820
 
 
 
2,198,734


Powell
 Industries
 
94,500
 
 
 
2,459,835


Preformed
 Line Products
 
91,600
 
 
 
3,856,360


 
 
 
 
 
 


 
 
 
 
 
 
12,542,579



 
 
 
 
 
 


INDUSTRIAL
 CONGLOMERATES - 0.4%
 
 
 
 
 
 


A.
 Soriano
 
2,791,000
 
 
 
378,430


Carlisle
 Companies 1
 
11,400
 
 
 
1,011,066


Raven
 Industries
 
226,725
 
 
 
3,536,910


 
 
 
 
 
 


 
 
 
 
 
 
4,926,406



 
 
 
 
 
 


MACHINERY
 - 10.2%
 
 
 
 
 
 


Burckhardt
 Compression Holding
 
8,400
 
 
 
2,575,997


Chen
 Hsong Holdings
 
1,159,000
 
 
 
267,690


China
 Metal International Holdings
 
554,524
 
 
 
169,932


CIRCOR
 International
 
104,004
 
 
 
4,383,769


CLARCOR
 
92,500
 
 
 
4,595,400


Columbus
 McKinnon
 
69,775
 
 
 
1,318,748


Deutz
 
115,000
 
 
 
460,288


Donaldson
 Company
 
193,559
 
 
 
5,547,401


Federal
 Signal
 
166,280
 
 
 
2,635,538


Graco
 
94,276
 
 
 
6,794,471


Graham
 Corporation
 
20,568
 
 
 
345,954


Hurco
 Companies
 
25,952
 
 
 
689,285


Hyster-Yale
 Materials Handling Cl. A
 
18,415
 
 
 
965,867


IDEX
 Corporation
 
67,400
 
 
 
5,163,514


John
 Bean Technologies
 
121,826
 
 
 
6,070,590


Kennametal
 
160,100
 
 
 
3,073,920


Lincoln
 Electric Holdings
 
61,360
 
 
 
3,183,970


Lindsay
 Corporation 1
 
80,000
 
 
 
5,792,000


Luxfer
 Holdings ADR
 
28,100
 
 
 
276,504


Lydall
 2
 
30,680
 
 
 
1,088,526


Mueller
 Water Products Cl. A
 
33,600
 
 
 
288,960


NN
 
308,700
 
 
 
4,920,678


Nordson
 Corporation
 
24,296
 
 
 
1,558,588


RBC
 Bearings 2
 
109,600
 
 
 
7,079,064


Semperit
 AG Holding
 
2,940
 
 
 
98,695


Spirax-Sarco
 Engineering
 
7,600
 
 
 
366,115


Sun
 Hydraulics
 
103,118
 
 
 
3,271,934


Tennant
 Company
 
103,900
 
 
 
5,845,414


Valmont
 Industries 1
 
67,855
 
 
 
7,193,987


WABCO
 Holdings 2
 
43,400
 
 
 
4,438,084






46 | 2015
 Annual Report to Stockholders
 
THE ACCOMPANYING
 NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS







December
 31, 2015






 


Schedule
 of Investments (continued)
 
 
 
 
 
 


 
 
 
 
 
 
 


 
 
SHARES

 
 
 
VALUE



 


 
 
 
 
 
 
 


INDUSTRIALS
 (continued)
 
 
 
 
 
 


MACHINERY
 (continued)
 
 
 
 
 
 


Wabtec
 Corporation
 
83,560
 
 
$
5,942,787


†Watts Water Technologies Cl. A
 
61,000
 
 
 
3,029,870



Woodward
 
208,400
 
 
 
10,349,144


 
 
 
 
 
 


 
 
 
 
 
 
109,782,684



 
 
 
 
 
 


MARINE - 0.8%
 
 
 
 
 
 


Clarkson
 
198,700
 
 
 
6,583,284


Kirby
 Corporation 2
 
41,100
 
 
 
2,162,682


 
 
 
 
 
 


 
 
 
 
 
 
8,745,966



 
 
 
 
 
 


PROFESSIONAL
 SERVICES - 3.0%
 
 
 
 
 
 


Acacia
 Research
 
55,600
 
 
 
238,524


Advisory
 Board (The) 1,2,3
 
150,277
 
 
 
7,455,242


Franklin
 Covey 2
 
60,000
 
 
 
1,004,400


Heidrick
 & Struggles International
 
66,480
 
 
 
1,809,586


ICF
 International 2
 
27,196
 
 
 
967,090


ManpowerGroup
 
83,858
 
 
 
7,068,391



On Assignment 1,2,3
 
230,695
 
 
 
10,369,740


Robert
 Half International
 
19,032
 
 
 
897,168


TrueBlue
 2
 
70,250
 
 
 
1,809,640


Volt
 Information Sciences 2
 
65,000
 
 
 
529,100


 
 
 
 
 
 


 
 
 
 
 
 
32,148,881



 
 
 
 
 
 


ROAD &
 RAIL - 1.5%
 
 
 
 
 
 


Genesee
 & Wyoming Cl. A 2
 
20,000
 
 
 
1,073,800


†Knight Transportation
 
122,400
 
 
 
2,965,752


Landstar
 System
 
118,960
 
 
 
6,977,004


†Saia 1,2
 
141,890
 
 
 
3,157,052


Trancom
 
6,647
 
 
 
368,334


Universal
 Truckload Services
 
78,916
 
 
 
1,107,981


 
 
 
 
 
 


 
 
 
 
 
 
15,649,923



 
 
 
 
 
 


TRADING COMPANIES
 & DISTRIBUTORS - 0.8%
 
 
 
 
 
 


†Houston Wire & Cable
 
598,871
 
 
 
3,162,039


Kloeckner
 & Co
 
31,300
 
 
 
271,976


MISUMI
 Group
 
30,000
 
 
 
413,129


MSC
 Industrial Direct Cl. A 1
 
79,993
 
 
 
4,501,206


 
 
 
 
 
 


 
 
 
 
 
 
8,348,350



 
 
 
 
 
 


TRANSPORTATION
 INFRASTRUCTURE - 0.2%
 
 
 
 
 
 


Hopewell
 Highway Infrastructure
 
1,012,000
 
 
 
485,075


Touax
 2
 
40,040
 
 
 
435,137


Wesco
 Aircraft Holdings 2
 
68,400
 
 
 
818,748


 
 
 
 
 
 


 
 
 
 
 
 
1,738,960



 


Total (Cost $210,534,829)
 
 
 
 
 
301,299,189



 


 
 
 
 
 
 
 


INFORMATION
 TECHNOLOGY – 20.7%
 
 
 
 
 
 


COMMUNICATIONS
 EQUIPMENT - 0.6%
 
 
 
 
 
 


ADTRAN
 1,3
 
259,273
 
 
 
4,464,681


Alliance
 Fiber Optic Products 2
 
63,200
 
 
 
958,112


Bel
 Fuse Cl. B
 
30,238
 
 
 
522,815


Extreme
 Networks 2
 
80,000
 
 
 
326,400


 
 
 
 
 
 


 
 
 
 
 
 
6,272,008



 
 
 
 
 
 


ELECTRONIC
 EQUIPMENT, INSTRUMENTS & COMPONENTS - 9.8%
 
 
 
 
 
 


Agilysys
 2
 
165,125
 
 
 
1,649,599


Anixter
 International 1,2,3
 
70,895
 
 
 
4,281,349


Benchmark
 Electronics 2
 
125,500
 
 
 
2,594,085


Cognex
 Corporation 1
 
166,400
 
 
 
5,619,328



Coherent 2
 
158,536
 
 
 
10,322,279


Dolby
 Laboratories Cl. A
 
57,840
 
 
 
1,946,316


DTS
 2
 
225,000
 
 
 
5,080,500


ePlus
 2
 
6,800
 
 
 
634,168


Fabrinet
 2
 
46,950
 
 
 
1,118,349


FARO
 Technologies 2
 
115,200
 
 
 
3,400,704


FEI
 Company
 
82,100
 
 
 
6,550,759



FLIR Systems
 
302,000
 
 
 
8,477,140


HollySys
 Automation Technologies
 
51,082
 
 
 
1,132,999


IPG
 Photonics 1,2,3
 
53,890
 
 
 
4,804,832


Kimball
 Electronics 2
 
214,635
 
 
 
2,358,839


LRAD
 Corporation 2
 
751,544
 
 
 
1,495,573


Mercury
 Systems 2
 
38,200
 
 
 
701,352


Methode
 Electronics
 
29,200
 
 
 
929,436


National
 Instruments
 
261,850
 
 
 
7,512,476



Newport Corporation 2
 
541,000
 
 
 
8,585,670


Orbotech
 2
 
4,000
 
 
 
88,520


PC
 Connection
 
16,301
 
 
 
369,055


Perceptron
 2
 
357,700
 
 
 
2,786,483


Plexus
 Corporation 2
 
176,100
 
 
 
6,149,412


Richardson
 Electronics
 
573,732
 
 
 
3,253,060


Rofin-Sinar
 Technologies 2
 
226,971
 
 
 
6,078,283


Rogers
 Corporation 2
 
57,066
 
 
 
2,942,894


TTM
 Technologies 1,2,3
 
496,400
 
 
 
3,231,564


Vishay
 Precision Group 2
 
78,826
 
 
 
892,310


 
 
 
 
 
 


 
 
 
 
 
 
104,987,334



 
 
 
 
 
 


INTERNET SOFTWARE
 & SERVICES - 1.8%
 
 
 
 
 
 


Actua
 Corporation 2
 
152,253
 
 
 
1,743,297


Care.com
 2
 
395,900
 
 
 
2,834,644


†IZEA 2,4
 
701,300
 
 
 
277,014


j2
 Global
 
28,610
 
 
 
2,355,175


QuinStreet
 2
 
488,232
 
 
 
2,094,515


RealNetworks
 2
 
376,750
 
 
 
1,601,188


Spark
 Networks 1,2,3
 
394,100
 
 
 
1,517,285


Stamps.com
 2
 
33,600
 
 
 
3,682,896


Support.com
 2
 
1,324,295
 
 
 
1,337,538


Textura
 Corporation 2
 
19,000
 
 
 
410,020


Tomorrow
 Focus 2
 
44,900
 
 
 
173,077


United
 Online 2
 
133,971
 
 
 
1,579,518


 
 
 
 
 
 


 
 
 
 
 
 
19,606,167



 
 
 
 
 
 


IT SERVICES
 - 2.4%
 
 
 
 
 
 


Computer
 Task Group
 
223,700
 
 
 
1,480,894


Convergys
 Corporation 1
 
121,000
 
 
 
3,011,690


eClerx
 Services
 
18,000
 
 
 
383,825



Hackett Group (The)
 
671,366
 
 
 
10,788,852


Hexaware
 Technologies
 
130,000
 
 
 
478,325


Innodata
 2
 
314,314
 
 
 
895,795


MAXIMUS
 
107,500
 
 
 
6,046,875


Net
 1 UEPS Technologies 2
 
15,000
 
 
 
202,650


Persistent
 Systems
 
40,000
 
 
 
387,854


Prodware
 
20,100
 
 
 
172,976


Sykes
 Enterprises 2
 
24,294
 
 
 
747,769


TravelSky
 Technology
 
200,000
 
 
 
328,208


Unisys
 Corporation 2
 
94,000
 
 
 
1,038,700


 
 
 
 
 
 


 
 
 
 
 
 
25,964,413



 
 
 
 
 
 


SEMICONDUCTORS
 & SEMICONDUCTOR EQUIPMENT - 2.7%
 
 
 
 
 
 


Amtech
 Systems 2
 
141,471
 
 
 
885,609


Brooks
 Automation
 
116,100
 
 
 
1,239,948


Cascade
 Microtech 2
 
61,800
 
 
 
1,004,250


Diodes
 2
 
270,850
 
 
 
6,224,133


Exar
 Corporation 2
 
157,576
 
 
 
965,941


Intermolecular 2
 
165,448
 
 
 
383,839


Kopin
 Corporation 2
 
242,200
 
 
 
658,784






THE ACCOMPANYING
 NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
 
2015 Annual
 Report to Stockholders | 47







Royce Value
 Trust






 


Schedule
 of Investments (continued)
 
 
 
 
 
 
 


 
 
 
 
 
 
 
 


 
 
SHARES

 
 
 
VALUE

 


 


 
 
 
 
 
 
 
 


INFORMATION
 TECHNOLOGY (continued)
 
 
 
 
 
 
 


SEMICONDUCTORS
 & SEMICONDUCTOR EQUIPMENT (continued)
 
 
 
 
 
 
 


Kulicke
 & Soffa Industries 2
 
77,400
 
 
$
903,258
 


MKS
 Instruments
 
170,510
 
 
 
6,138,360
 


MoSys
1,2,3
 
337,000
 
 
 
367,330
 


Nanometrics
 2
 
166,750
 
 
 
2,524,595
 


Photronics
 2
 
157,700
 
 
 
1,963,365
 


Teradyne
 
130,000
 
 
 
2,687,100
 


Tessera
 Technologies
 
65,930
 
 
 
1,978,559
 


Ultra
 Clean Holdings 2
 
50,300
 
 
 
257,536
 


Veeco
 Instruments 1,2,3
 
28,300
 
 
 
581,848
 


 
 
 
 
 
 


 
 
 
 
 
 
28,764,455
 


 
 
 
 
 
 



SOFTWARE -
 2.5%
 
 
 
 
 
 
 


American
 Software Cl. A
 
88,490
 
 
 
900,828
 



ANSYS 1,2,3
 
95,000
 
 
 
8,787,500
 


Blackbaud
 
31,400
 
 
 
2,068,004
 


Computer
 Modelling Group
 
313,200
 
 
 
2,032,620
 


Mentor
 Graphics
 
149,923
 
 
 
2,761,582
 


Model
 N 2
 
104,000
 
 
 
1,160,640
 


Monotype
 Imaging Holdings
 
153,740
 
 
 
3,634,414
 


PSI
 2
 
52,500
 
 
 
738,537
 


PTC
 2
 
25,000
 
 
 
865,750
 


SeaChange
 International 2
 
247,069
 
 
 
1,665,245
 


SimCorp
 
9,300
 
 
 
524,488
 


TiVo
 2
 
133,200
 
 
 
1,149,516
 


TOTVS
 
50,000
 
 
 
389,896
 


 
 
 
 
 
 



 
 
 
 
 
 
26,679,020
 


 
 
 
 
 
 



TECHNOLOGY
 HARDWARE, STORAGE & PERIPHERALS - 0.9%
 
 
 
 
 
 
 


Diebold
 1
 
266,600
 
 
 
8,021,994
 


Intevac
 2
 
114,000
 
 
 
536,940
 


Kortek
 
99,000
 
 
 
976,842
 


Silicon
 Graphics International 2
 
93,600
 
 
 
552,240
 


 
 
 
 
 
 



 
 
 
 
 
 
10,088,016
 


 


Total (Cost
 $188,389,488)
 
 
 
 
 
222,361,413

 


 


 
 
 
 
 
 
 
 


MATERIALS
– 7.6%
 
 
 
 
 
 
 


CHEMICALS
 - 2.0%
 
 
 
 
 
 
 


C.
 Uyemura & Co.
 
13,100
 
 
 
557,573
 


†Dyadic International 2,4
 
75,000
 
 
 
135,000
 


FutureFuel
 Corporation
 
48,500
 
 
 
654,750
 


Hawkins
 
86,178
 
 
 
3,082,587
 


Innospec
 
44,838
 
 
 
2,435,152
 


Intrepid
 Potash 2
 
356,498
 
 
 
1,051,669
 


Minerals
 Technologies
 
87,093
 
 
 
3,994,085
 



Quaker Chemical
 
109,669
 
 
 
8,473,027
 


Umicore
 
12,500
 
 
 
522,516
 


Victrex
 
12,000
 
 
 
316,680
 


 
 
 
 
 
 



 
 
 
 
 
 
21,223,039
 


 
 
 
 
 
 



CONSTRUCTION
 MATERIALS - 1.0%
 
 
 
 
 
 
 



Ash Grove Cement Cl. B 4
 
50,518
 
 
 
10,507,744

 


 
 
 
 
 
 



CONTAINERS
 & PACKAGING - 0.8%
 
 
 
 
 
 
 


Greif
 Cl. A
 
100,344
 
 
 
3,091,599
 


Mayr-Melnhof
 Karton
 
32,700
 
 
 
4,069,251
 


UFP
 Technologies 2
 
54,709
 
 
 
1,303,168
 


 
 
 
 
 
 



 
 
 
 
 
 
8,464,018

 


 
 
 
 
 
 



METALS &
 MINING - 3.8%
 
 
 
 
 
 
 


Alamos
 Gold Cl. A
 
464,366
 
 
 
1,526,968
 


Ampco-Pittsburgh
 
56,516
 
 
 
579,854
 


Central
 Steel & Wire 4
 
4,862
 
 
 
2,649,887
 


Exeter
 Resource 2
 
475,000
 
 
 
154,375
 


Franco-Nevada
 Corporation
 
108,000
 
 
 
4,941,000
 


Gold
 Fields ADR
 
865,000
 
 
 
2,396,050
 


Haynes
 International
 
113,900
 
 
 
4,178,991
 


Hecla
 Mining
 
660,000
 
 
 
1,247,400
 


Imdex
 2
 
700,000
 
 
 
101,388
 


Lundin
 Mining 2
 
640,000
 
 
 
1,757,606
 


Major
 Drilling Group International
 
406,543
 
 
 
1,286,882
 


Pan
 American Silver
 
130,430
 
 
 
847,795
 


Pretium
 Resources 2
 
246,000
 
 
 
1,237,378
 



Reliance Steel & Aluminum
 
171,270
 
 
 
9,918,246
 


Seabridge
 Gold 1,2,3
 
282,000
 
 
 
2,337,780
 


Synalloy
 Corporation
 
178,800
 
 
 
1,230,144
 


Vista
 Gold 2
 
124,000
 
 
 
34,038
 


Worthington
 Industries
 
148,000
 
 
 
4,460,720
 


 
 
 
 
 
 



 
 
 
 
 
 
40,886,502

 


 
 
 
 
 
 



PAPER &
 FOREST PRODUCTS - 0.0%
 
 
 
 
 
 
 


TFS
 Corporation
 
251,185
 
 
 
288,330

 


 


Total (Cost
 $77,065,012)
 
 
 
 
 
81,369,633

 


 


 
 
 
 
 
 
 
 


TELECOMMUNICATION
 SERVICES – 0.5%
 
 
 
 
 
 
 


WIRELESS TELECOMMUNICATION
 SERVICES - 0.5%
 
 
 
 
 
 
 


Spok
 Holdings
 
18,595
 
 
 
340,661
 


Telephone
 and Data Systems
 
208,270
 
 
 
5,392,110
 


 


Total (Cost $5,721,184)
 
 
 
 
 
5,732,771
 


 


 
 
 
 
 
 
 
 


UTILITIES
– 0.1%
 
 
 
 
 
 
 


GAS UTILITIES
 - 0.1%
 
 
 
 
 
 
 


Shizuoka
 Gas
 
110,000
 
 
 
703,087
 


Toho
 Gas
 
60,000
 
 
 
387,471
 


 
 
 
 
 
 



 
 
 
 
 
 
1,090,558

 


 
 
 
 
 
 



MULTI-UTILITIES
 - 0.0%
 
 
 
 
 
 
 


Just
 Energy Group 1
 
20,600
 
 
 
146,672

 


 


Total (Cost
 $1,234,657)
 
 
 
 
 
1,237,230

 


 


 
 
 
 
 
 
 
 


MISCELLANEOUS7 – 5.0%
 
 
 
 
 
 
 


 


Total (Cost $56,093,347)
 
 
 
 
 
53,074,549

 


 


 
 
 
 
 
 
 
 


TOTAL COMMON
 STOCKS
 
 
 
 
 
 
 


 


(Cost $988,358,081)

 
 
 
 
 
1,127,445,453

 


 


 
 
 
 
 
 
 
 


REPURCHASE
 AGREEMENT– 1.0%
 
 
 
 
 
 
 



Fixed Income Clearing Corporation, 0.03% dated 12/31/15, due 1/4/16, maturity value $10,727,036 (collateralized by obligations of various U.S. Government Agencies, 1.625%
 due 7/31/20, valued at $10,943,663)


 


(Cost $10,727,000)

 
 
 
 
 
10,727,000

 


 


 
 
 
 
 
 
 
 


TOTAL INVESTMENTS
– 106.2%
 
 
 
 
 
 
 


 


(Cost $999,085,081)

 
 
 
 
 
1,138,172,453

 


 


 
 
 
 
 
 
 
 


LIABILITIES
 LESS CASH AND OTHER ASSETS – (6.2)%
 
 
 
 
 
(66,137,707
)


 
 
 
 
 
 



 


 


NET ASSETS
– 100.0%
 
 
 
 
$
1,072,034,746

 


 






48 | 2015
 Annual Report to Stockholders
 
THE ACCOMPANYING
 NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS







December
 31, 2015






 


†
New additions
 in 2015.


1
All or
 a portion of these securities were pledged as collateral in connection with the
 revolving credit agreement at December 31, 2015. Total market value of pledged securities
 at December 31, 2015, was $116,154,894.


2
Non-income
 producing.


3
At December
 31, 2015, a portion of these securities were rehypothecated in connection with the
 Fund’s revolving credit agreement in the aggregate amount of $55,161,255.


4
These securities
 are defined as Level 2 securities due to fair value being based on quoted prices
 for similar securities. See Notes to Financial Statements.


5
At December
 31, 2015, the Fund owned 5% or more of the Company’s outstanding voting securities
 thereby making the Company an Affiliated Company as that term is defined in the
 Investment Company Act of 1940. See Notes to Financial Statements.


6
A security
 for which market quotations are not readily available represents 0.0% of net assets.
 This security has been valued at its fair value under procedures approved by the
 Fund’s Board of Directors. This security is defined as a Level 3 security due
 to the use of significant unobservable inputs in the determination of fair value.
 See Notes to Financial Statements.


7
Includes
 securities first acquired in 2015 and less than 1% of net assets.


 
 


 
Bold
 indicates the Fund’s 20 largest equity holdings in terms of December 31, 2015,
 market value.


 
 


 
TAX
 INFORMATION: The cost of total investments for Federal income tax purposes was
 $1,001,534,253. At December 31, 2015, net unrealized appreciation for all securities
 was $136,638,200, consisting of aggregate gross unrealized appreciation of $278,258,206 and aggregate
 gross unrealized depreciation of $141,620,006. The primary difference between book and
 tax basis cost is the timing of the recognition of losses on securities sold, investments
 in publicly traded partnerships and Trusts and mark-to-market of Passive Foreign Investment
 Companies.


 






THE ACCOMPANYING
 NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
 
2015 Annual Report to Stockholders | 49







Royce Value
 Trust
 
December
 31, 2015






 


Statement
 of Assets and Liabilities
 
 
 
 


 
 
 
 
 


ASSETS:
 
 
 
 


Investments
 at value
 
 
 
 


 


Non-Affiliated
 Companies
 
$
1,119,108,795
 


 


Affiliated
 Companies
 
 
8,336,658
 


 


Repurchase
 agreements (at cost and value)
 
 
10,727,000
 


 


Cash and foreign
 currency
 
 
214,267
 


 


Receivable
 for investments sold
 
 
3,210,183
 


 


Receivable
 for dividends and interest
 
 
1,307,487
 


 


Prepaid expenses
 and other assets
 
 
552,797
 


 


Total Assets

 
 
1,143,457,187

 


 


LIABILITIES:
 
 
 
 


Revolving
 credit agreement
 
 
70,000,000
 


 


Payable for
 investments purchased
 
 
562,307
 


 


Payable for
 investment advisory fee
 
 
493,311
 


 


Payable for
 directors’ fees
 
 
57,368
 


 


Payable for
 interest expense
 
 
6,054
 


 


Accrued expenses
 
 
252,267
 


 


Deferred capital
 gains tax
 
 
51,134
 


 


Total Liabilities

 
 
71,422,441

 


 


Net Assets

 
$
1,072,034,746

 


 


ANALYSIS OF
 NET ASSETS:
 
 
 
 


Paid-in capital
 - $0.001 par value per share; 79,051,762 shares outstanding (150,000,000 shares authorized)
 
$
929,036,835
 


 


Undistributed
 net investment income (loss)
 
 
(1,047,919
)


 


Accumulated
 net realized gain (loss) on investments and foreign currency
 
 
5,044,187
 


 


Net unrealized
 appreciation (depreciation) on investments and foreign currency
 
 
139,001,643
 


 


Net Assets
 (net asset value per share - $13.56)
 
$
1,072,034,746

 


 


Investments
 at identified cost
 
$
988,358,081
 


 






50 | 2015
 Annual Report to Stockholders
 
THE ACCOMPANYING
 NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS





Royce Value Trust


 


Statement
 of Changes in Net Assets






 
 

YEAR ENDED 12/31/15
 

YEAR ENDED 12/31/14


 


 
 
 
 
 
 
 
 
 


INVESTMENT
 OPERATIONS:
 
 
 
 
 
 
 
 


Net investment
 income (loss)
 
$
9,193,108
 
 
$
9,123,977
 


 


Net realized
 gain (loss) on investments and foreign currency
 
 
43,117,817
 
 
 
130,855,526
 


 


Net change
 in unrealized appreciation (depreciation) on investments and foreign currency
 
 
(157,435,228
)
 
 
(140,388,974
)


 


Net increase
 (decrease) in net assets from investment operations
 
 
(105,124,303
)
 
 
(409,471
)


 


DISTRIBUTIONS:
 
 
 
 
 
 
 
 


Net investment
 income
 
 
(12,151,910
)
 
 
(10,008,114
)


 


Net realized
 gain on investments and foreign currency
 
 
(83,306,926
)
 
 
(123,263,927
)


 


Total distributions

 
 
(95,458,836
)
 
 
(133,272,041
)


 


CAPITAL STOCK
 TRANSACTIONS:
 
 
 
 
 
 
 
 


Reinvestment
 of distributions
 
 
40,663,247
 
 
 
57,806,861
 


 


Total capital
 stock transactions
 
 
40,663,247

 
 
 
57,806,861

 


 


Net Increase
 (Decrease) In Net Assets
 
 
(159,919,892
)
 
 
(75,874,651
)


 


NET ASSETS:
 
 
 
 
 
 
 
 


 


Beginning
 of year
 
 
1,231,954,638

 
 
 
1,307,829,289

 


 


End of
 year (including undistributed net investment income (loss) of $(1,047,919) at 12/31/15
 and $2,286,303 at 12/31/14)
 
$
1,072,034,746

 
 
$
1,231,954,638

 


 






THE ACCOMPANYING
 NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
 
2015 Annual
 Report to Stockholders | 51







Royce Value
 Trust
 
Year Ended
 December 31, 2015






 


Statement
 of Operations






INVESTMENT
 INCOME:
 
 
 
 


INCOME:
 
 
 
 


Dividends
 
 
 
 


 


Non-Affiliated
 Companies
 
$
17,125,813
 


 


Affiliated
 Companies
 
 
137,702
 


 


Foreign withholding
 tax
 
 
(398,966
)


 


Interest
 
 
44,593
 


 


Rehypothecation
 income
 
 
358,817
 


 


Securities
 lending
 
 
668
 


 


Total income

 
 
17,268,627

 


 


EXPENSES:
 
 
 
 


 


Investment
 advisory fees
 
 
5,891,150
 


 


Interest expense
 
 
899,029
 


 


Stockholder
 reports
 
 
430,339
 


 


Custody and
 transfer agent fees
 
 
233,579
 


 


Administrative
 and office facilities
 
 
190,523
 


 


Directors’ fees
 
 
180,221
 


 


Professional
 fees
 
 
113,995
 


 


Other expenses
 
 
136,775
 


 


Total expenses

 
 
8,075,611

 


 


Compensating
 balance credits
 
 
(92
)


 


Net expenses

 
 
8,075,519

 


 


Net investment
 income (loss)
 
 
9,193,108

 


 


REALIZED
 AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY:
 
 
 
 


NET REALIZED
 GAIN (LOSS):
 
 
 
 


 


Investments
 
 
42,996,570
 


 


Foreign currency
 transactions
 
 
121,247
 


 


NET CHANGE
 IN UNREALIZED APPRECIATION (DEPRECIATION):
 
 
 
 


 


Investments
 and foreign currency translations
 
 
(157,609,448
)


 


Other assets
 and liabilities denominated in foreign currency
 
 
174,220
 


 


Net realized
 and unrealized gain (loss) on investments and foreign currency
 
 
(114,317,411
)


 


NET INCREASE
 (DECREASE) IN NET ASSETS FROM INVESTMENT OPERATIONS
 
$
(105,124,303
)


 






52 | 2015
 Annual Report to Stockholders
 
THE ACCOMPANYING
 NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS







Royce Value
 Trust
 
Year Ended
 December 31, 2015





 


Statement
 of Cash Flows





CASH FLOWS
 FROM OPERATING ACTIVITIES:
 
 
 
 
 


Net increase
 (decrease) in net assets from investment operations
 
 
$
(105,124,303
)


 


Adjustments
 to reconcile net increase (decrease) in net assets from investment operations to
 net cash provided by operating activities:
 
 
 
 
 


 


Purchases
 of long-term investments
 
 
 
(421,650,687
)


 


Proceeds
 from sales and maturities of long-term investments
 
 
 
448,806,816
 


 


Net
 purchases, sales and maturities of short-term investments
 
 
 
18,828,000
 


 


Net
 (increase) decrease in dividends and interest receivable and other assets
 
 
 
(321,915
)


 


Net
 increase (decrease) in interest expense payable, accrued expenses and other liabilities
 
 
 
(145,507
)


 


Net
 change in unrealized appreciation (depreciation) on investments
 
 
 
157,609,448
 


 


Net
 realized gain (loss) on investments and foreign currency
 
 
 
(43,117,817
)


 


Net cash
 provided by operating activities
 
 
 
54,884,035

 


 


CASH FLOWS
 FROM FINANCING ACTIVITIES:
 
 
 
 
 


Distributions
 
 
 
(95,458,836
)


 


Reinvestment
 of distributions
 
 
 
40,663,247
 


 


Net cash
 used for financing activities
 
 
 
(54,795,589
)


 


INCREASE
 (DECREASE) IN CASH:
 
 
 
88,446

 


 


Cash and
 foreign currency at beginning of year
 
 
 
125,821

 


 


Cash and
 foreign currency at end of year
 
 
$
214,267

 


 





THE ACCOMPANYING
 NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
 
2015 Annual
 Report to Stockholders  |  53





Royce Value Trust


 


Financial Highlights


This table is presented to show selected
 data for a share of Common Stock outstanding throughout each period, and to assist
 stockholders in evaluating the Fund’s performance for the periods presented.


 
 
 

YEARS ENDED


 
 
 
 


 
 
 

12/31/15
 

12/31/14
 

12/31/13
 

12/31/12
 

12/31/11


 

 
Net Asset
 Value, Beginning of Period
 
 
$
16.24
 
 
$
18.17
 
 
$
15.40
 
 
$
14.18
 
 
$
16.73
 


 


INVESTMENT
 OPERATIONS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Net investment
 income (loss)
 
 
 
0.12
 
 
 
0.12
 
 
 
0.12
 
 
 
0.23
 
 
 
0.10
 


 


Net realized
 and unrealized gain (loss) on investments and foreign currency
 
 
 
(1.48
)
 
 
(0.13
)
 
 
4.89
 
 
 
2.02
 
 
 
(1.62
)


 


Total investment
 operations
 
 
 
(1.36
)
 
 
(0.01
)
 
 
5.01
 
 
 
2.25
 
 
 
(1.52
)


 


DISTRIBUTIONS
 TO PREFERRED STOCKHOLDERS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Net investment
 income
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
(0.04
)
 
 
(0.03
)


 


Net realized
 gain on investments and foreign currency
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
(0.13
)
 
 
(0.16
)


 


Total distributions
 to Preferred Stockholders
 
 
 
–

 
 
 
–

 
 
 
–

 
 
 
(0.17
)
 
 
(0.19
)


 


Net Increase
 (Decrease) in Net Assets Applicable to Common Stockholders from Investment Operations

 
 
 
(1.36
)
 
 
(0.01
)
 
 
5.01
 
 
 
2.08
 
 
 
(1.71
)


 


DISTRIBUTIONS
 TO COMMON STOCKHOLDERS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Net investment
 income
 
 
 
(0.16
)
 
 
(0.14
)
 
 
(0.11
)
 
 
(0.17
)
 
 
(0.08
)


 


Net realized
 gain on investments and foreign currency
 
 
 
(1.08
)
 
 
(1.68
)
 
 
(2.08
)
 
 
(0.63
)
 
 
(0.43
)


 


Return of
 capital
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
(0.27
)


 


Total distributions
 to Common Stockholders
 
 
 
(1.24
)
 
 
(1.82
)
 
 
(2.19
)
 
 
(0.80
)
 
 
(0.78
)


 


CAPITAL STOCK
 TRANSACTIONS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Effect of
 reinvestment of distributions by Common Stockholders
 
 
 
(0.08
)
 
 
(0.10
)
 
 
(0.05
)
 
 
(0.06
)
 
 
(0.06
)


 


Total capital
 stock transactions
 
 
 
(0.08
)
 
 
(0.10
)
 
 
(0.05
)
 
 
(0.06
)
 
 
(0.06
)


 


Net Asset
 Value, End of Period
 
 
$
13.56
 
 
$
16.24
 
 
$
18.17
 
 
$
15.40
 
 
$
14.18
 


 


Market
 Value, End of Period
 
 
$
11.77
 
 
$
14.33
 
 
$
16.01
 
 
$
13.42
 
 
$
12.27
 


 


TOTAL RETURN:1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Net Asset
 Value
 
 
 
(8.09
)%
 
 
0.78
%
 
 
34.14
%
 
 
15.41
%
 
 
(10.06
)%


 


Market Value
 
 
 
(9.59
)%
 
 
0.93
%
 
 
35.63
%
 
 
16.22
%
 
 
(10.46
)%


 


RATIOS BASED
 ON AVERAGE NET ASSETS APPLICABLE TO COMMON STOCKHOLDERS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Investment
 advisory fee expense2
 
 
 
0.50
%
 
 
0.46
%
 
 
0.54
%
 
 
0.56
%
 
 
0.86
%


 


Other operating
 expenses
 
 
 
0.18
%
 
 
0.15
%
 
 
0.25
%
 
 
0.15
%
 
 
0.12
%


 


Total expenses
 (net)3
 
 
 
0.68
%
 
 
0.61
%
 
 
0.79
%
 
 
0.71
%
 
 
0.98
%


 


Expenses net
 of fee waivers and excluding interest expense
 
 
 
0.61
%
 
 
0.55
%
 
 
0.65
%
 
 
0.68
%
 
 
0.98
%


 


Expenses prior
 to fee waivers and balance credits
 
 
 
0.68
%
 
 
0.61
%
 
 
0.79
%
 
 
0.71
%
 
 
0.98
%


 


Expenses prior
 to fee waivers
 
 
 
0.68
%
 
 
0.61
%
 
 
0.79
%
 
 
0.71
%
 
 
0.98
%


 


Net investment
 income (loss)
 
 
 
0.78
%
 
 
0.72
%
 
 
0.70
%
 
 
1.57
%
 
 
0.63
%


 


SUPPLEMENTAL
 DATA:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Net Assets
 Applicable to Common Stockholders, End of Period (in thousands)
 
 
$
1,072,035
 
 
$
1,231,955
 
 
$
1,307,829
 
 
$
1,082,426
 
 
$
966,640
 


 


Liquidation
 Value of Preferred Stock, End of Period (in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
220,000
 


 


Portfolio
 Turnover Rate
 
 
 
35
%
 
 
40
%
 
 
33
%
 
 
25
%
 
 
26
%


 


PREFERRED
 STOCK:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Total shares
 outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8,800,000
 


 


Asset coverage
 per share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
134.88
 


 


Liquidation
 preference per share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
25.00
 


 


Average month-end
 market value per share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
25.37
 


 


REVOLVING
 CREDIT AGREEMENT:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Asset coverage
 
 
 
1631
%
 
 
1860
%
 
 
1289
%
 
 
822
%
 
 
 
 


 


Asset coverage
 per $1,000
 
 
$
16,315
 
 
$
18,599
 
 
$
12,889
 
 
$
8,216
 
 
 
 
 


 





1
The Market
 Value Total Return is calculated assuming a purchase of Common Stock on the opening
 of the first business day and a sale on the closing of the last business day of
 each period. Dividends and distributions are assumed for the purposes of this calculation
 to be reinvested at prices obtained under the Fund’s Distribution Reinvestment
 and Cash Purchase Plan. Net Asset Value Total Return is calculated on the same basis,
 except that the Fund’s net asset value is used on the purchase and sale dates
 instead of market value.


2
The investment
 advisory fee is calculated based on average net assets over a rolling 60-month basis,
 while the above ratios of investment advisory fee expenses are based on the average
 net assets applicable to Common Stockholders over a 12-month basis.


3
Expense ratios
 based on total average net assets including liquidation value of Preferred Stock
 were 0.60% and 0.82% for the years ended December 31, 2012 and 2011, respectively.





54 | 2015
 Annual Report to Stockholders
 
THE ACCOMPANYING
 NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS





Royce Value Trust
Notes to Financial Statements
Summary of Significant Accounting Policies:
Royce Value
 Trust, Inc. (the “Fund”), is a diversified closed-end investment company that was
 incorporated under the laws of the State of Maryland on July 1, 1986. The Fund commenced
 operations on November 26, 1986.
The preparation
 of financial statements in conformity with accounting principles generally accepted
 in the United States of America requires management to make estimates and assumptions
 that affect the reported amounts of assets and liabilities and the disclosure of
 contingent assets and liabilities at the date of the financial statements and the
 reported amounts of income and expenses during the reporting period. Actual results
 could differ from those estimates.
The Fund is
 an investment company and accordingly follows the investment company accounting
 and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting
 Standard Codification Topic 946 “Financial Services-Investment Companies”.


VALUATION OF INVESTMENTS:
Securities
 are valued as of the close of trading on the New York Stock Exchange (NYSE) (generally
 4:00 p.m. Eastern time) on the valuation date. Securities that trade on an exchange,
 and securities traded on Nasdaq’s Electronic Bulletin Board, are valued at
 their last reported sales price or Nasdaq official closing price taken from the
 primary market in which each security trades or, if no sale is reported for such
 day, at their highest bid price. Other over-the-counter securities for which market
 quotations are readily available are valued at their highest bid price, except in
 the case of some bonds and other fixed income securities which may be valued by
 reference to other securities with comparable ratings, interest rates and maturities,
 using established independent pricing services. The Fund values its non-U.S. dollar
 denominated securities in U.S. dollars daily at the prevailing foreign currency
 exchange rates as quoted by a major bank. Securities for which market quotations
 are not readily available are valued at their fair value in accordance with the
 provisions of the 1940 Act, under procedures approved by the Fund’s Board of
 Directors, and are reported as Level 3 securities. As a general principle, the fair
 value of a security is the amount which the Fund might reasonably expect to receive
 for the security upon its current sale. However, in light of the judgment involved
 in fair valuations, there can be no assurance that a fair value assigned to a particular
 security will be the amount which the Fund might be able to receive upon its current
 sale. In addition, if, between the time trading ends on a particular security and
 the close of the customary trading session on the NYSE, events occur that are significant
 and may make the closing price unreliable, the Fund may fair value the security.
 The Fund uses an independent pricing service to provide fair value estimates for
 relevant non-U.S. equity securities on days when the U.S. market volatility exceeds
 a certain threshold. This pricing service uses proprietary correlations it has developed
 between the movement of prices of non-U.S. equity securities and indices of U.S.-traded
 securities, futures contracts and other indications to estimate the fair value of
 relevant non-U.S. securities. When fair value pricing is employed, the prices of
 securities used by the Fund may differ from quoted or published prices for the same
 security. Investments in money market funds are valued at net asset value per share.
Various inputs are used in determining the value of the
 Fund’s investments, as noted above. These inputs are summarized in the three
broad levels below:


 
 
Level 1

–
quoted prices
 in active markets for identical securities.


 
 
Level 2

–
other significant
 observable inputs (including quoted prices for similar securities, foreign securities
 that may be fair valued and repurchase agreements). The table below includes all
 Level 2 securities. Level 2 securities with values based on quoted prices for similar
 securities are noted in the Schedule of Investments.


 
 
Level 3

–
significant
 unobservable inputs (including last trade price before trading was suspended, or
 at a discount thereto for lack of marketability or otherwise, market price information
 regarding other securities, information received from the company and/or published
 documents, including SEC filings and financial statements, or other publicly available
 information).


The inputs
 or methodology used for valuing securities are not necessarily an indication of
 the risk associated with investing in those securities.

The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2015. For a detailed breakout of
common stocks by sector classification, please refer to the Schedule of Investments.


 
 
LEVEL 1
 

LEVEL 2
 

LEVEL 3
 

TOTAL


 


Common Stocks
 
$
1,007,975,908
 
 
$
119,301,916
 
 
$
167,629
 
 
$
1,127,445,453

 


 


Cash Equivalents
 
 
–
 
 
 
10,727,000
 
 
 
–
 
 
 
10,727,000

 


 


For the year
 ended December 31, 2015, certain securities have transferred in and out of Level
 1 and Level 2 measurements. The Fund recognizes transfers between levels as of the
 end of the reporting period. At December 31, 2015, securities valued at $267,690
 were transferred from Level 2 to Level 1 within the fair value hierarchy.


2015 Annual
 Report to Stockholders | 55





Royce Value Trust
Notes to Financial Statements (continued)

VALUATION OF INVESTMENTS (continued):
Level 3 Reconciliation:


 
 
 
BALANCE
 AS OF 12/31/14
 
 
SALES

 
 
REALIZED
 AND UNREALIZED
GAIN (LOSS)1
 
 
BALANCE
 AS OF 12/31/15
 


 


Common Stocks
 
 
$    270,001
 
 
$            1
 
 
$(102,371)
 
 
$167,629
 


 


Preferred Stocks
 
 
   1,216,350
 
 
    724,062
 
 
  (492,288)
 
 
          –
 


 




1
The net change
 in unrealized appreciation (depreciation) is included in the accompanying Statement
 of Operations. Change in unrealized appreciation (depreciation) includes net unrealized
 appreciation (depreciation) resulting from changes in investment values during the
 reporting period and the reversal of previously recorded unrealized appreciation
 (depreciation) when gains or losses are realized. Net realized gain (loss) from
 investments and foreign currency transactions is included in the accompanying Statement
 of Operations.




REPURCHASE AGREEMENTS:
The Fund may
 enter into repurchase agreements with institutions that the Fund’s investment adviser has determined are creditworthy. The
 Fund restricts repurchase agreements to maturities of no more than seven days. Securities
 pledged as collateral for repurchase agreements, which are held until maturity of
 the repurchase agreements, are marked-to-market daily and maintained at a value
 at least equal to the principal amount of the repurchase agreement (including accrued
 interest). Repurchase agreements could involve certain risks in the event of default
 or insolvency of the counter-party, including possible delays or restrictions upon
 the ability of the Fund to dispose of its underlying securities. The remaining contractual
 maturity of the repurchase agreement held by the Fund at December 31, 2015 is overnight
 and continuous.


FOREIGN CURRENCY:
Net realized
 foreign exchange gains or losses arise from sales and maturities of short-term securities,
 sales of foreign currencies, expiration of currency forward contracts, currency
 gains or losses realized between the trade and settlement dates on securities transactions,
 and the difference between the amounts of dividends, interest, and foreign withholding
 taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts
 actually received or paid. Net unrealized foreign exchange gains and losses arise
 from changes in the value of assets and liabilities, including investments in securities
 at the end of the reporting period, as a result of changes in foreign currency exchange
 rates.


SECURITIES LENDING:
The Fund loans securities through a lending agent to qualified institutional investors for the purpose of realizing additional income.
Collateral for the Fund on all securities loaned is accepted in cash and cash equivalents and invested temporarily by the custodian. The
collateral maintained is at least 100% of the current market value of the loaned securities. The market value of the loaned securities is
determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day.
The Fund retains the risk of any loss on the securities on loan as well as incurring the potential loss on investments purchased with cash
collateral received for securities lending. The Fund’s securities lending income consists of the income earned on investing cash collateral,
plus any premium payments received for lending certain securities, less any rebates paid to borrowers and lending agent fees associated
with the loan. The lending agent is not affiliated with Royce. No securities were on loan at December 31, 2015.


TAXES:
As a qualified
 regulated investment company under Subchapter M of the Internal Revenue Code, the
 Fund is not subject to income taxes to the extent that it distributes substantially
 all of its taxable income for its fiscal year. The Schedule of Investments includes
 information regarding income taxes under the caption “Tax Information”.


CAPITAL GAINS TAXES:
The Fund is
 subject to a tax imposed on short-term capital gains on securities of issuers domiciled
 in certain countries. The Fund records an estimated deferred tax liability for these
 securities that have been held for less than one year. This amount, if any, is reported
 as deferred capital gains tax in the accompanying Statement of Assets and Liabilities,
 assuming those positions were disposed of at the end of the period, and accounted
 for as a reduction in the market value of the security.


DISTRIBUTIONS:
The Fund pays quarterly distributions on the Fund’s Common Stock at the annual rate of 7% of the rolling average of the prior four
calendar quarter-end NAVs of the Fund’s Common Stock, with the fourth quarter distribution being the greater of 1.75% of the rolling
average or the distribution required by IRS regulations. Prior to November 15, 2012, distributions to Preferred Stockholders were accrued
daily and paid quarterly. Distributions to Common Stockholders are recorded on ex-dividend date. Distributable capital gains and/or net
investment income were first allocated to Preferred Stockholder distributions, with any excess allocable to Common Stockholders. If
capital gains and/or net investment income were allocated to both Preferred and Common Stockholders, the tax character of such
allocations was proportional. To the extent that distributions are not paid from long-term capital gains, net investment income or
 net short-term
capital gains, they will represent a return of capital. Distributions are determined in accordance with income tax regulations that may




56 | 2015
 Annual Report to Stockholders





Royce Value Trust
Notes to Financial Statements (continued)



DISTRIBUTIONS (continued):
differ from accounting principles generally accepted in the United States of America. Permanent
 book and tax differences relating to stockholder distributions will result in reclassifications
 within the capital accounts. Undistributed net investment income may include temporary
 book and tax basis differences, which will reverse in a subsequent period. Any taxable
 income or gain remaining undistributed at fiscal year end is distributed in the
 following year.


INVESTMENT TRANSACTIONS AND RELATED INVESTMENT INCOME:
Investment
 transactions are accounted for on the trade date. Dividend income is recorded on
 the ex-dividend date. Non-cash dividend income is recorded at the fair market value
 of the securities received. Interest income is recorded on an accrual basis. Premium
 and discounts on debt securities are amortized using the effective yield-to-maturity
 method. Realized gains and losses from investment transactions are determined on
 the basis of identified cost for book and tax purposes.


EXPENSES:
The Fund incurs direct and indirect expenses. Expenses directly attributable to the Fund are charged to the Fund’s operations, while
expenses applicable to more than one of the Royce Funds are allocated equitably. Certain personnel, occupancy costs and other
administrative expenses related to the Funds are allocated by Royce & Associates, LLC (“Royce”) under an administration agreement and are included in administrative and office facilities and professional fees. The Fund has adopted a deferred fee agreement that allows the
Directors to defer the receipt of all or a portion of directors’ fees otherwise payable. The deferred fees are invested in certain Royce Funds until distributed in accordance with the agreement.


COMPENSATING BALANCE CREDITS:
The Fund has
 an arrangement with its custodian bank, whereby a portion of the custodian’s
 fee is paid indirectly by credits earned on the Fund’s cash on deposit with
 the bank. This deposit arrangement is an alternative to purchasing overnight investments.
 Conversely, the Fund pays interest to the custodian on any cash overdrafts, to the
 extent they are not offset by credits earned on positive cash balances.


Capital Stock:
The Fund issued
 3,183,214 and 3,894,284 shares of Common Stock as reinvestment of distributions
 for the years ended December 31, 2015 and December 31, 2014, respectively.


Borrowings:
The Fund has
 entered into a revolving credit agreement (the credit agreement) with BNP Paribas
 Prime Brokerage Inc. (BNPP). The Fund pays a commitment fee of 0.50% per annum on
 the unused portion of the credit agreement. The credit agreement has a 360-day rolling
 term that resets daily; however, if the Fund exceeds certain net asset value triggers,
 the credit agreement may convert to a 60-day rolling term that resets daily. The
 Fund is required to pledge portfolio securities as collateral in an amount up to
 two times the loan balance outstanding and has granted a security interest in the
 securities pledged to, and in favor of, BNPP as security for the loan balance outstanding.
 If the Fund fails to meet certain requirements, or maintain other financial covenants
 required under the credit agreement, the Fund may be required to repay immediately,
 in part or in full, the loan balance outstanding under the credit agreement necessitating
 the sale of portfolio securities at potentially inopportune times. The credit agreement
 also permits, subject to certain conditions, BNPP to rehypothecate portfolio securities
 pledged by the Fund up to the amount of the loan balance outstanding. The Fund continues
 to receive payments in lieu of dividends and interest on rehypothecated securities.
 The Fund also has the right under the credit agreement to recall the rehypothecated
 securities from BNPP on demand. If BNPP fails to deliver the recalled security in
 a timely manner, the Fund is compensated by BNPP for any fees or losses related
 to the failed delivery or, in the event a recalled security is not returned by BNPP,
 the Fund, upon notice to BNPP, may reduce the loan balance outstanding by the amount
 of the recalled security failed to be returned. The Fund receives a portion of the
 fees earned by BNPP in connection with the rehypothecation of portfolio securities.
As of December
 31, 2015, the Fund has outstanding borrowings of $70,000,000. During the year ended
 December 31, 2015, the Fund borrowed an average daily balance of $70,000,000 at
 a weighted average borrowing cost of 1.27%. The maximum amount outstanding during
 the year ended December 31, 2015 was $70,000,000. As of December 31, 2015, the aggregate
 value of rehypothecated securities was $55,161,255. During the year ended December
 31, 2015, the Fund earned $358,817 in fees from rehypothecated securities.


Investment Advisory Agreement:
As compensation
 for its services under the Investment Advisory Agreement, Royce receives a fee comprised
 of a Basic Fee (“Basic Fee”) and an adjustment to the Basic Fee based
 on the investment performance of the Fund in relation to the investment record of
 the S&P SmallCap 600 Index (“S&P 600”).
The Basic Fee is a monthly fee equal to 1/12 of 1% (1% on an annualized basis) of the average of the Fund’s month-end net assets
applicable to Common Stockholders, plus the liquidation value of outstanding Preferred Stock, for the rolling 60-month period ending with




2015 Annual
 Report to Stockholders | 57





Royce Value Trust
Notes to Financial Statements (continued)



Investment Advisory Agreement (continued):
such month (the “performance period”). The Basic Fee for each month is increased or decreased at the rate of 1/12 of .05% for each
percentage point that the investment performance of the Fund exceeds, or is exceeded by, the percentage change in the investment
record of the S&P 600 for the performance period by more than two percentage points. The performance period for each such month is a
rolling 60-month period ending with such month. The maximum increase or decrease in the Basic Fee for any month may not exceed 1/12
of .5%. Accordingly, for each month, the maximum monthly fee rate as adjusted for performance is 1/12 of 1.5% and is payable if the
investment performance of the Fund exceeds the percentage change in the investment record of the S&P 600 by 12 or more percentage
points for the performance period, and the minimum monthly fee rate as adjusted for performance is 1/12 of .5% and is payable if the
percentage change in the investment record of the S&P 600 exceeds the investment performance of the Fund by 12 or more percentage
points for the performance period.

Notwithstanding
 the foregoing, Royce is not entitled to receive any fee for any month when the investment
 performance of the Fund for the rolling 36-month period ending with such month is
 negative. In the event that the Fund’s investment performance for such a performance period is less than zero, Royce will
 not be required to refund to the Fund any fee earned in respect of any prior performance
 period.
For the twelve
 rolling 60-month periods in 2015, the Fund’s investment performance ranged from 37% to 52% below the investment performance of the
 S&P 600. Accordingly, the net investment advisory fee consisted of a Basic
 Fee of $11,782,299 and a net downward adjustment of $5,891,149 for the performance
 of the Fund relative to that of the S&P 600. For the year ended December 31,
 2015, the Fund accrued and paid Royce investment advisory fees totaling $5,891,150.


Purchases and Sales of Investment Securities:

For the year
 ended December 31, 2015, the costs of purchases and proceeds from sales of investment
 securities, other than short-term securities, amounted to $416,979,288 and $441,694,010,
 respectively.
Cross trades
 were executed by the Fund pursuant to Rule 17a-7 under the 1940 Act. Cross trading
 is the buying or selling of portfolio securities between funds to which R&A
 serves as investment adviser. At its regularly scheduled quarterly meetings, the
 Board reviews such transactions as of the most recent calendar quarter for compliance
 with the requirements and restrictions set forth by Rule 17a-7. Cross trades for
 the year ended December 31, 2015, were as follows:




PURCHASES

 
 
SALES

 
 
REALIZED
 GAIN (LOSS)


 


$85,028,140
 
 
$44,242,674
 
 
$17,998,274


 




Tax Information:
Distributions
 during the years ended December 31, 2015 and 2014, were characterized as follows
 for tax purposes:





ORDINARY INCOME
 
 

LONG-TERM CAPITAL GAINS


 


2015
 
 
2014
 
 
2015
 
 
2014


 


$16,352,099
 
 
$29,761,905
 
 
$79,106,737
 
 
$103,510,136


 


The tax basis components of distributable
 earnings at December 31, 2015, were as follows:


UNDISTRIBUTED

ORDINARY
INCOME
 
UNDISTRIBUTED
 LONG-TERM
CAPITAL GAINS OR
(CAPITAL LOSSES
NOT SUBJECT TO EXPIRATION)
 
NET UNREALIZED

APPRECIATION
(DEPRECIATION)1
 
QUALIFIED
 LATE YEAR
ORDINARY AND
POST-OCTOBER LOSS
DEFERRALS2
 
TOTAL

DISTRIBUTABLE
EARNINGS


 


$8,993
 
$7,183,938
 
$136,552,471
 
$(747,491)
 
$142,997,911


 




1
Includes timing differences on foreign currency, recognition of losses on securities
 sold, investments in publicly traded partnerships and Trusts and mark-to-market
 of Passive Foreign Investment Companies.


2
Under the
 current tax law, capital losses and qualified late year ordinary losses incurred
 after October 31 may be deferred and treated as occurring on the first day of the
 following fiscal year.


For financial
 reporting purposes, capital accounts and distributions to stockholders are adjusted
 to reflect the tax character of permanent book/tax differences. For the year ended
 December 31, 2015, the Fund recorded the following permanent reclassifications,
 which relate primarily to current Real Estate Investment Trusts, publicly traded
 partnerships and Trusts, foreign currency transactions, foreign capital gains tax,
 dividend redesignations and gains from the sale of Passive Foreign Investment Companies.
 Results of operations and net assets were not affected by these reclassifications.


UNDISTRIBUTED
 NET
INVESTMENT INCOME
 
ACCUMULATED
 NET
REALIZED GAIN (LOSS)
 
PAID-IN
 CAPITAL


 


$(375,420)
 
$(18,688)
 
$394,108


 


Management has analyzed the Fund’s tax positions taken on federal income tax returns for all open tax years (2012-2015) and has
concluded that as of December 31, 2015, no provision for income tax is required in the Fund’s financial statements.


58 | 2015
 Annual Report to Stockholders





Royce Value Trust
Notes to Financial Statements (continued)



Transactions in Affiliated Companies:


An “Affiliated Company” as defined in the Investment Company Act of 1940, is a company in which a fund owns 5% or more of the
company’s outstanding voting securities at any time during the period. The Fund effected the following transactions in shares of such
companies for the year ended December 31, 2015:




AFFILIATED
 COMPANY
 
SHARES

12/31/14
 
 
MARKET
 VALUE
12/31/14
 
COST
 OF
PURCHASES
 
COST
 OF
SALES
 
REALIZED

GAIN (LOSS)
 
DIVIDEND

INCOME
 
SHARES

12/31/15
 
MARKET
 VALUE
12/31/15


 


Stanley Furniture
 
1,012,235
 
 
$2,773,524
 
–
 
–
 
–
 
–
 
1,012,235
 
$2,824,136


 


Timberland
 Bancorp
 
   444,200
 
 
  4,708,520
 
–
 
–
 
–
 
$137,702
 
  444,200
 
 5,512,522


 


 
 
 
 
 
$7,482,044

 
 
 
 
 
 
 
$137,702

 
 
 
$8,336,658



 






2015 Annual
 Report to Stockholders | 59





Royce Value Trust
Report of Independent Registered Public
 Accounting Firm
To the Board of Directors and Stockholders
 of Royce Value Trust, Inc.:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statement of
operations, of changes in net assets, and of cash flows and the financial highlights present fairly, in all material respects, the financial
position of Royce Value Trust, Inc. (the “Fund”) at December 31, 2015, the results of its operations, the changes in its net assets, its cash
flows and its financial highlights for the year then ended, in conformity with accounting principles generally accepted in the United States
of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the
Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit
of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audit, which included confirmation of securities at December 31, 2015 by correspondence
with the custodian and brokers, provide a reasonable basis for our opinion. The statement of changes in net assets for the year ended
December 31, 2014 and the financial highlights for each of the fiscal periods presented in the period ended December 31, 2014 were
audited by other independent accountants whose report dated February 23, 2015 expressed an unqualified opinion on those statements.

PricewaterhouseCoopers LLP

Baltimore, Maryland
February 23, 2016


60 | 2015
 Annual Report to Stockholders





Directors and Officers
All Directors and Officers may be reached
 c/o The Royce Funds, 745 Fifth Avenue, New York, NY 10151
Charles M. Royce, Director1
Age: 76
 | Number of Funds Overseen: 25 | Tenure: Since 1982 
Non-Royce Directorships: Director
 of TICC Capital Corp. 
Principal Occupation(s) During Past Five Years: Chief Executive
 Officer and a Member of the Board of Managers of Royce & Associates, LLC (“Royce”),
 the Trust’s investment adviser.
Christopher D. Clark, Trustee1, President

Age: 50 | Number of Funds Overseen: 25 | Tenure: Since 2014 
Principal Occupation(s)
 During Past Five Years: President (since July 2014), Co-Chief Investment Officer
 (since January 2014), Managing Director and, since June 2015, a Member of the Board
 of Managers of Royce, having been employed by Royce since May 2007.

Patricia W. Chadwick, Director
Age: 67
 | Number of Funds Overseen: 25 | Tenure: Since 2009 
Non-Royce Directorships: Trustee
 of ING Mutual Funds and Director of Wisconsin Energy Corp.
Principal Occupation(s)
 During Past 5 Years: Consultant and President of Ravengate Partners LLC (since 2000).
Richard M. Galkin, Director
Age: 77 |
 Number of Funds Overseen: 25 | Tenure: Since 1982 
Non-Royce Directorships: None
 
Principal Occupation(s) During Past Five Years: Private investor. Mr. Galkin’s
 prior business experience includes having served as President of Richard M. Galkin
 Associates, Inc., telecommunications consultants, President of Manhattan Cable Television
 (a subsidiary of Time, Inc.), President of Haverhills Inc. (another Time, Inc. subsidiary),
 President of Rhode Island Cable Television, and Senior Vice President of Satellite
 Television Corp. (a subsidiary of Comsat).
Stephen L. Isaacs, Director
Age: 76 |
 Number of Funds Overseen: 25 | Tenure: Since 1989 
Non-Royce Directorships: None
 
Principal Occupation(s) During Past Five Years: Attorney and President of Health
 Policy Associates, Inc., consultants. Mr. Isaacs’s prior business experience
 includes having served as President of the Center for Health and Social Policy (from
 1996 to 2012); Director of Columbia University Development Law and Policy Program
 and Professor at Columbia University (until August 1996).
Arthur S. Mehlman, Director
Age: 73 |
 Number of Funds Overseen: 46 | Tenure: Since 2004 
Non-Royce Directorships: Director/Trustee
 of registered investment companies constituting the 18 Legg Mason Funds. 
Principal
 Occupation(s) During Past Five Years: Director of The League for People with Disabilities,
 Inc.; Director of University of Maryland Foundation (non-profits). Formerly: Director
 of Municipal Mortgage & Equity, LLC (from October 2004 to April 1, 2011); Director
 of University of Maryland College Park Foundation (non-profit) (from 1998 to 2005);
 Partner, KPMG LLP (international accounting firm) (from 1972 to 2002); Director
 of Maryland Business Roundtable for Education (from July 1984 to June 2002).
David L. Meister, Director
Age: 76 |
 Number of Funds Overseen: 25 | Tenure: Since 1982 
Non-Royce Directorships: None
 
Principal Occupation(s) During Past Five Years: Consultant. Chairman and Chief Executive
 Officer of The Tennis Channel (from June 2000 to March 2005). Mr. Meister’s
 prior business experience includes having served as Chief Executive Officer of Seniorlife.com,
 a consultant to the communications industry, President of Financial News Network,
 Senior Vice President of HBO, President of Time-Life Films, and Head of Broadcasting
 for Major League Baseball.
G. Peter O’Brien, Director
Age:
 70 | Number of Funds Overseen: 46 | Tenure: Since 2001 
Non-Royce Directorships:
 Director/Trustee of registered investment companies constituting the 18 Legg Mason
 Funds; Director of TICC Capital Corp.
Principal Occupation(s) During Past Five
 Years: Trustee Emeritus of Colgate University (since 2005); Board Member of Hill
 House, Inc. (since 1999); Formerly: Trustee of Colgate University (from 1996 to
 2005), President of Hill House, Inc. (from 2001 to 2005) and Managing Director/Equity
 Capital Markets Group of Merrill Lynch & Co. (from 1971 to 1999).
Michael K. Shields, Director
Age: 57
 | Number of Funds Overseen: 25 | Tenure: Since 2015 
Principal Occupation(s) During
 Past Five Years: President and Chief Executive Officer of Piedmont Trust Company,
 a private North Carolina trust company (since May 2012). Mr. Shields’s prior
 business experience includes owning Shields Advisors, an investment consulting firm
 (from April 2010 to June 2012).

Francis D. Gannon, Vice President
Age:
 48 | Tenure: Since 2014 
Principal Occupation(s) During Past Five Years: Co-Chief
 Investment Officer (since January 2014) and Managing Director of Royce, having been
 employed by Royce since September 2006.
Daniel A. O’Byrne, Vice President

Age: 53 | Tenure: Since 1994 
Principal Occupation(s) During Past Five Years: Principal
 and Vice President of Royce, having been employed by Royce since October 1986.
Peter K. Hoglund, Treasurer
Age: 49 |
 Tenure: Since 2015 
Principal Occupation(s) During Past Five Years: Principal, Chief
 Financial Officer, and Chief Administrative Officer of Royce, having been employed
 by Royce since December 2014. Prior to joining Royce, Mr. Hoglund spent more than
 20 years with Munder Capital Management in Birmingham, MI, serving as Managing Director
 and Chief Financial Officer and overseeing all financial aspects of the firm. He
 began his career at Munder as a portfolio manager.
John E. Denneen, Secretary and Chief Legal
 Officer
Age: 48 | Tenure: 1996-2001 and Since 2002 
Principal Occupation(s) During
 Past Five Years: General Counsel and, since June 2015, a Member of the Board of
 Managers of Royce; Chief Legal and Compliance Officer and Secretary of Royce; Secretary
 and Chief Legal Officer of The Royce Funds.
Lisa Curcio, Chief Compliance Officer

Age: 56 | Tenure: Since 2004 
Principal Occupation(s) During Past Five Years: Chief
 Compliance Officer of The Royce Funds (since October 2004) and Compliance Officer
 of Royce (since June 2004).
1 Interested Director.
Director will
 hold office until their successors have been duly elected and qualified or until
 their earlier resignation or removal.
2015 Annual Report to Stockholders | 61



Notes to Performance and Other Important
 Information
The thoughts expressed in this Review and
 Report concerning recent market movements and future prospects for small company
 stocks are solely the opinion of Royce at December 31, 2015, and, of course, historical
 market trends are not necessarily indicative of future market movements. Statements
 regarding the future prospects for particular securities held in the Funds’
 portfolios and Royce’s investment intentions with respect to those securities
 reflect Royce’s opinions as of December 31, 2015 and are subject to change
 at any time without notice. There can be no assurance that securities mentioned in this Review and Report will be included in any Royce-managed portfolio in the
 future. Investments in securities of micro-cap, small-cap and/or mid-cap companies
 may involve considerably more risk than investments in securities of larger-cap
 companies. All publicly released material information is always disclosed by the
 Funds on the website at www.roycefunds.com.
Sector weightings are determined using the
 Global Industry Classification Standard (“GICS”). GICS was developed by, and is
 the exclusive property of, Standard & Poor’s Financial Services LLC (“S&P”) and MSCI Inc. (“MSCI”). GICS is the trademark of S&P and MSCI. “Global
 Industry Classification Standard (GICS)” and “GICS Direct” are service marks of
 S&P and MSCI.
All indexes referred to are unmanaged and
 capitalization weighted. Each index’s returns include net reinvested dividends
 and/or interest income. Russell Investment Group is the source and owner of the
 trademarks, service marks, and copyrights related to the Russell Indexes. Russell®
 is a trademark of Russell Investment Group. The Russell 2000 Index is an index of
 domestic small-cap stocks. It measures the performance of the 2,000 smallest publicly
 traded U.S. companies in the Russell 3000 Index. The Russell 2000 Value and Growth
 indexes consist of the respective value and growth stocks within the Russell 2000
 as determined by Russell Investments. The Russell Microcap Index includes 1,000
 of the smallest securities in the Russell 2000 Index along with the next smallest
 eligible securities as determined by Russell. The Russell 1000 Index is an index
 of domestic large-cap stocks. It measures the performance of the 1,000 largest publicly
 traded companies in the Russell 3000 Index. The Russell Midcap Index measures the
 performance of the mid-cap segment of the U.S. equity universe. It includes approximately
 800 of the smallest securities in the Russell 1000 Index. The Russell Global Small
 Cap Index is an unmanaged, capitalization-weighted index of global small-cap stocks.
 The Russell Global ex-U.S. Large Cap Index is an index of global large-cap stocks,
 excluding the United States. The Russell Global ex-U.S. Small Cap Index is an index
 of global small-cap stocks, excluding the United States. The S&P 500 and SmallCap
 600 are indexes of U.S. large- and small-cap stocks, respectively, selected by Standard
 & Poor’s based on market size, liquidity, and industry grouping, among
 other factors. The Nasdaq Composite is an index of the more than 3,000 common equities
 listed on the Nasdaq stock exchange. The performance of an index does not represent
 exactly any particular investment, as you cannot invest directly in an index. Returns
 for the market indexes used in this report were based on information supplied to
 Royce by Russell Investments.
The Price-Earnings, or P/E, Ratio is calculated
 by dividing a company’s share price by its trailing 12-month earnings-per share
 (EPS). The Price-to-Book, or P/B, Ratio is calculated by dividing a company’s
 share price by its book value per share. The Morningstar Style Map uses proprietary
 scores of a stock’s value and growth characteristics to determine its placement
 in one of the five categories listed on the horizontal axis. These characteristics
 are then compared to those of other stocks within the same market capitalization
 band. Each is scored from zero to 100 for both value and growth attributes. The
 value score is subtracted from the growth score to determine the overall style score.
 For the vertical, market cap axis, Morningstar subdivides into size groups. Giant-cap
 stocks are defined as those that account for the top 40% of the capitalization of
 each style zone; large-cap stocks represent the next 30%; mid-cap stocks the next
 20%; small-cap stocks the next 7%; micro-cap stocks the smallest 3%. The Royce Funds
 is a service mark of The Royce Funds. Distributor: Royce Fund Services, Inc.
Forward-Looking Statements
This material contains forward-looking statements
 within the meaning of the Securities Exchange Act of 1934, as amended (the “Exchange
 Act”), that involve risks and uncertainties, including, among others, statements
 as to:




•
the Funds’ future operating results


•
the prospects
 of the Funds’ portfolio companies


•
the impact
 of investments that the Funds have made or may make


•
the dependence
 of the Funds’ future success on the general economy and its impact on the companies
 and industries in which the Funds invest, and


•
the ability of the Funds’ portfolio
 companies to achieve their objectives.



  This Review and Report uses words such as
 “anticipates,” “believes,” “expects,” “future,” “intends,” and similar expressions
 to identify forward-looking statements. Actual results may differ materially from
 those projected in the forward-looking statements for any reason.
  The Royce Funds have based the forward-looking
 statements included in this Review and Report on information available to us on
 the date of the report, and we assume no obligation to update any such forward-looking
 statements. Although The Royce Funds undertake no obligation to revise or update
 any forward-looking statements, whether as a result of new information, future events
 or otherwise, you are advised to consult any additional disclosures that we may
 make through future stockholder communications or reports.
Authorized Share Transactions
Royce Value Trust, Royce Micro-Cap Trust,
 and Royce Global Value Trust may each repurchase up to 5% of the issued and outstanding
 shares of its respective common stock during the year ending December 31, 2015.
 Any such repurchases would take place at then prevailing prices in the open market
 or in other transactions. Common stock repurchases would be effected at a price
 per share that is less than the share’s then current net asset value.
  Royce Value Trust, Royce Micro-Cap Trust,
 and Royce Global Value Trust are also authorized to offer their common stockholders
 an opportunity to subscribe for additional shares of their common stock through
 rights offerings at a price per share that may be less than the share’s then
 current net asset value. The timing and terms of any such offerings are within each
 Board’s discretion.
Annual Certifications
As required, the Funds have submitted to
 the New York Stock Exchange (“NYSE”) for the annual certification of the Funds’
 Chief Executive Officer that he is not aware of any violation of the NYSE’s
 listing standards. The Funds also have included the certification of the Funds’
 Chief Executive Officer and Chief Financial Officer required by section 302 of the
 Sarbanes-Oxley Act of 2002 as exhibits to the Funds’ form N-CSR for the period
 ended December 31, 2015, filed with the Securities and Exchange Commission.
62 | 2015 Annual Report to Stockholders



Notes to Performance and Other Important
 Information (continued)
Proxy Voting
A copy of the policies and procedures that
 The Royce Funds use to determine how to vote proxies relating to portfolio securities
 and information regarding how each of The Royce Funds voted proxies relating to
 portfolio securities during the most recent 12-month period ended June 30 is available,
 without charge, on The Royce Funds’ website at www.roycefunds.com, by calling
 (800) 221-4268 (toll-free) and on the website of the Securities and Exchange Commission
 (“SEC”), at www.sec.gov.


Form N-Q Filing
The Funds file their complete schedules
 of investments with the SEC for the first and third quarters of each fiscal year
 on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s website at
 www.sec.gov. The Royce Funds’ holdings are also on the Funds’ website
 approximately 15 to 20 days after each calendar quarter end and remain available
 until the next quarter’s holdings are posted. The Funds’ Forms N-Q may
 also be reviewed and copied at the SEC’s Public Reference Room in Washington,
 D.C. To find out more about this public service, call the SEC at (800) 732-0330.
 The Funds’ complete schedules of investments are updated quarterly, and are
 available at www.roycefunds.com.


2015 Annual Report to Stockholders | 63



Results of Stockholders Meetings
Royce Value Trust, Inc.
At the 2015 Annual Meeting of Stockholders
 held on September 24, 2015, the Fund’s stockholders elected three Directors,
 consisting of:


 
 
VOTES
 FOR
 
VOTES
 WITHHELD


 


Charles M.
 Royce
 
60,125,642
 
5,450,793


 


G. Peter O’Brien
 
60,024,887
 
5,551,548


 


David L. Meister
 
59,781,734
 
5,794,701


 


Royce Micro-Cap Trust, Inc.
At the 2015 Annual Meeting of Stockholders
 held on September 24, 2015, the Fund’s stockholders elected three Directors,
 consisting of:


 
 
VOTES
 FOR
 
VOTES
 WITHHELD


 


Charles M.
 Royce
 
30,149,093
 
405,166


 


G. Peter O’Brien
 
30,006,654
 
547,605


 


David L. Meister
 
29,990,136
 
564,123


 


Royce Global Value Trust, Inc.
At the 2015 Annual Meeting of Stockholders
 held on September 24, 2015, the Fund’s stockholders elected three Directors,
 consisting of:


 
 
VOTES
 FOR
 
VOTES
 WITHHELD


 


Charles M.
 Royce
 
8,639,282
 
466,513


 


G. Peter O’Brien
 
8,635,385
 
470,410


 


David L. Meister
 
8,576,649
 
529,146


 






64 | 2015 Annual Report to Stockholders







 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 


 

 

 

 

 

 


 

 

 

 








 
 
 
 
 


 
 
 
 
 


 
 
 
 
 


 
 
 
 
 


 
 
 
 
 


 















 


 
 
 
 
 


 
 
 
 
 


 
 
 
 
 


 
About The Royce Funds
 
Contact Us
 


 
 
 
 
 


 
 
 
 
 


 
Wealth
 of Experience
With approximately $19 billion in total assets under management, Royce & Associates is
committed to the same investment principles that have served us well for more than 40
years. Chuck Royce, our Chief Executive Officer, enjoys one of the longest tenures of any
active mutual fund manager. Royce’s investment staff also includes 24 portfolio managers
and analysts and seven traders.
 
GENERAL INFORMATION
General Royce Funds information including
an overview of our firm and Funds
(800) 221-4268
 


 
 
 
 
 


 
 
 
 
 


 
Multiple
 Funds, Common Focus
Our goal is to offer both individual and institutional investors the best available micro-cap,
small-cap, and/or mid-cap portfolios. We have chosen to concentrate on smaller-company
investing by providing investors with a range of funds that take full advantage of this large
and diverse sector.
 
COMPUTERSHARE
Transfer Agent and Registrar
Speak with a representative about:
• Your account, transactions, and forms
(800) 426-5523
 


 
 
 
 
 


 
 
 
 
 


 
Consistent
 Discipline
Our approach emphasizes paying close attention to risk and maintaining the same
discipline, regardless of market movements and trends. The price we pay for a security
must be below our appraisal of its current worth. This requires a thorough analysis of
the financial and business dynamics of an enterprise, as though we were purchasing the
entire company.
 
FINANCIAL ADVISORS AND BROKER-DEALERS
Speak with your regional Royce contact regarding:
• Information about our firm, strategies, and Funds
• Fund Materials
(800) 337-6923
 


 
 
 
 
 


 

Co-Ownership
 of Funds
It is important that our employees and shareholders share a common financial goal. Our
officers, employees, and their families currently have approximately $111 million invested in
The Royce Funds and are often among the largest individual shareholders.
 
 
 


 
 
 
roycefunds.com
 


 
 
 
 
 


 
 
 
 
 


 
 
 
 
 


 
 
 
 
 


 
 
 

 


 
 
 
 
 


 
 
 
 
 





Item 2. Code(s) of Ethics.  As of the end of the period covered by this report,
 the Registrant had adopted a code of ethics, as defined in Item 2 of Form N-CSR,
 applicable to its principal executive officer, principal financial officer, principal
 accounting officer or controller, or persons performing similar functions. A
 copy of this code of ethics is filed as an exhibit to this Form N-CSR. No substantive
 amendments were approved or waivers were granted to this code of ethics during the
 period covered by this report.
Item 3. Audit Committee Financial Expert.



(a)(1)
 
The Board
 of Directors of the Registrant has determined that it has an audit committee financial
 expert.


 
 
 


(a)(2)
 
Arthur
 S. Mehlman and Patricia W. Chadwick were designated by the Board of Directors as
 the Registrant’s Audit Committee Financial Experts, effective April 15, 2004
 and April 8, 2010, respectively. Mr. Mehlman and Ms. Chadwick are “independent” as defined under Item 3 of Form N-CSR.


Item 4. Principal Accountant Fees and
 Services.


(a)
 
Audit Fees:


 
 
Year ended
 December 31, 2015 - $43,500


 
 
Year ended
 December 31, 2014 - $43,500


 
 
 


(b)
 
Audit-Related
 Fees:


 
 
Year ended
 December 31, 2015 - $0


 
 
Year ended
 December 31, 2014 - $0


 
 
 


(c)
 
Tax Fees:


 
 
Year ended
 December 31, 2015 - $7,200 - Preparation of tax returns


 
 
Year ended
 December 31, 2014 - $7,200 - Preparation of tax returns


 
 
 


(d)
 
All Other
 Fees:


 
 
Year ended
 December 31, 2015 - $0


 
 
Year ended
 December 31, 2014 - $0


(e)(1)           Annual Pre-Approval: On an annual basis, the Registrant’s independent
 auditor submits to the Audit Committee a schedule of proposed audit, audit-related,
 tax and other non-audit services to be rendered to the Registrant and/or investment
 adviser(s) for the following year that require pre-approval by the Audit Committee.
 This schedule provides a description of each type of service that is expected to
 require pre-approval and the maximum fees that can be paid for each such service
 without further Audit Committee approval. The Audit Committee then reviews and determines
 whether to approve the types of scheduled services and the projected fees for them.
 Any subsequent revision to already pre-approved services or fees (including fee
 increases) are presented for consideration at the next regularly scheduled Audit
 Committee meeting, as needed.
If subsequent to the annual pre-approval of services and fees by the Audit Committee,
 the Registrant or one of its affiliates determines that it would like to engage
 the Registrant’s independent auditor to perform a service not already pre-approved,
 the request is to be submitted to the Registrant’s Chief Financial Officer,
 and if he or she determines that the service fits within the independence guidelines
 (e.g., it is not a prohibited service), he or she will then arrange for a discussion
 of the proposed service and fee to be included on the agenda for the next regularly
 scheduled Audit Committee meeting so that pre-approval can be considered.
Interim Pre-Approval: If, in the judgment of the Registrant’s Chief Financial
 Officer, a proposed engagement needs to commence before the next regularly scheduled
 Audit Committee meeting, he or she shall submit a written summary of the proposed
 engagement to all members of the Audit Committee, outlining the services, the estimated
 maximum cost, the category of the services (e.g., audit, audit-related, tax or other)
 and the rationale for engaging the Registrant’s independent auditor to perform
 the services. To the extent the proposed engagement involves audit, audit-related
 or tax services, any individual member of the Audit Committee who is an independent
 Board member is authorized to pre-approve the engagement. To the extent the proposed
 engagement involves non-audit services other than audit-related or tax, the Chairman
 of the Audit Committee is authorized to pre-approve the engagement. The Registrant’s Chief Financial Officer will arrange for this interim review and



coordinate with the appropriate member(s) of the Committee. The independent auditor
 may not commence the engagement under consideration until the Registrant’s
 Chief Financial Officer has informed the auditor in writing that pre-approval has
 been obtained from the Audit Committee or an individual member who is an independent
 Board member. The member of the Audit Committee who pre-approves any engagements
 in between regularly scheduled Audit Committee meetings is to report, for informational
 purposes only, any pre-approval decisions to the Audit Committee at its next regularly
 scheduled meeting.


(e)(2)
 
Not Applicable


 
 
 


(f)
 
Not Applicable


 
 
 


(g)
 
Year ended
 December 31, 2015 - $7,200


 
 
Year ended
 December 31, 2014 - $7,200


 
 
 


(h)
 
No such services
 were rendered during 2015 or 2014.


Item 5. Audit Committee of Listed Registrants.  The Registrant has a
 separately designated standing audit committee established in accordance with Section
 3(a)(58)(A) of the Securities Exchange Act of 1934. Patricia W. Chadwick, Richard
 M. Galkin, Stephen L. Isaacs, Arthur S. Mehlman, David L. Meister and G. Peter O’Brien are members of the Registrant’s audit committee.
Item 6. Investments.
(a) See Item 1.
(b) Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
 Management Investment Companies.
June 5, 2003, as amended
Through November 6, 2015
Royce & Associates
 Proxy Voting Guidelines and Procedures
These procedures apply to Royce & Associates,
 LLC (“Royce”) and all funds and other client accounts for which it is
 responsible for voting proxies, including all open and closed-end registered investment
 companies (“The Royce Funds”), limited partnerships, limited liability
 companies, separate accounts, other accounts for which it acts as investment adviser
 and any accounts for which it acts as sub-adviser that have delegated proxy voting
 authority to Royce. Such authority is determined at the inception of each client
 account and generally: (i) is specifically authorized in the applicable investment
 management agreement or other written instrument or (ii) where not specifically
 authorized, is granted to Royce where general investment discretion is given to
 it in the applicable investment management agreement. The Boards of Trustees/Directors
 of The Royce Funds (the “Boards”) have delegated all proxy voting decisions
 to Royce subject to these policies and procedures. Notwithstanding the above, from
 time to time the Boards may reserve voting authority for specific securities.
Receipt of Proxy Material. Under
 the oversight of the Head of Administration, a Trade Processing Assistant designated
 by him is responsible for monitoring receipt of all proxies and



seeking to ensure that proxies are received
 for all securities for which Royce has proxy voting responsibility. Royce is not
 responsible for voting proxies it does not receive. The Head of Administration or
 his designee use Glass Lewis’ ballot reconciliation tool that is directly tied
 to the daily holdings provided to them by Royce. Proxies are voted electronically
 and hard copies of any research notes made on the proxy material are stored.
Voting of Proxies. Once proxy material has
 been received, it is then promptly reviewed by the designated Trade Processing Assistant
 to evaluate the issues presented. The Head of Administration or his designee, in
 consultation with a Co-Chief Investment Officer, develops and updates a list of
 matters Royce treats as “regularly recurring” and is responsible for ensuring
 that the designated Trade Processing Assistant has an up-to-date list of these matters
 at all times, including instructions from a Royce Co-Chief Investment Officer on
 how to vote on those matters on behalf of Royce clients. Examples of “regularly
 recurring” matters include non-contested elections of directors and non-contested
 approval of independent auditors. Non-“regularly recurring” matters are
 brought to the attention of the portfolio manager(s) for the account(s) involved
 by the designated Administrative Assistant, and, after giving some consideration
 to advisories from Glass Lewis & Co., an independent third party research firm,
 the portfolio manager directs that such matters be voted in a way that he or she
 believes should better protect or enhance the value of the investment. Portfolio
 Managers may instruct the Head of Administration that they do not want the regularly
 recurring matters to be voted in accordance with the standing instructions for their
 accounts and individual voting instructions on all votes, both regularly recurring
 and non-regularly recurring, will be obtained from such Portfolio Managers.


 
a.
 
       From time
 to time, it is possible that one Royce portfolio manager will decide (i) to vote
 shares held in client accounts he or she manages differently from the vote of another
 Royce portfolio manager whose client accounts hold the same security or (ii) to
 abstain from voting on behalf of client accounts he or she manages when another
 Royce portfolio manager is casting votes on behalf of other Royce client accounts.


 
 
 
 


 
 
 
The designated
 Trade Processing Assistant reviews all proxy votes collected from Royce’s portfolio
 managers prior to such votes being cast. If any difference exists among the voting
 instructions given by Royce’s portfolio managers, as described above, the designated
 Trade Processing Assistant then presents these proposed votes to the Head of Administration,
 or his designee, and a Co-Chief Investment Officer. A Co-Chief Investment Officer,
 after consulting with the relevant portfolio managers, either reconciles the votes
 or authorizes the casting of differing votes by different portfolio managers. The
 Head of Administration, or his designee, maintains a log of all votes including
 when different portfolio managers have cast differing votes, that describes the
 rationale for allowing such differing votes and contains the initials of both a
 Co-Chief Investment Officer and Head of Administration, or his designee, allowing
 such differing votes. The Head of Administration, or his designee, performs a weekly
 review of all votes cast by Royce to confirm that any conflicting votes were properly
 handled in accordance with the above-described procedures.







 
b.
 
       There are
 many circumstances that might cause Royce to vote against an issuer’s board
 of directors or “management” proposal. These would include, among others,
 excessive compensation, unusual management stock options, preferential voting and
 poison pills. The portfolio managers decide these issues on a case-by-case basis
 as described above.


 
 
 
 


 
c.
 
       A portfolio
 manager may, on occasion, determine to take no action on a proxy or a specific proxy
 item and not submit a vote when he or she concludes that the potential benefit of
 voting is outweighed by the cost, when it is not in the client account’s best
 interest to vote.


 
 
 
 


 
d.
 
       When a
 client has authorized Royce to vote proxies on its behalf, Royce will generally
 not accept instructions from the clients regarding how to vote proxies.


 
 
 
 


 
e.
 
       If a security
 is on loan under The Royce Funds’ Securities Lending Program with State Street
 Bank and Trust Company (“Loaned Securities”), the Head of Administration,
 or his designee, will recall the Loaned Securities and request that they be delivered
 within the customary settlement period after the notice, to permit the exercise
 of their voting rights if the number of shares of the security on loan would have
 a material effect on The Royce Funds’ voting power at the up-coming stockholder
 meeting. A material effect is defined for this purpose as any case where the Loaned
 Securities are 1% or more of a class of a company’s outstanding equity securities.
 A quarterly report detailing any exceptions that occur in recalling Loaned Securities
 will be given to the Boards.


Custodian banks are authorized to release
 all proxy ballots held for Royce client account portfolios to Glass Lewis &
 Co. for voting, utilizing the Viewpoint proxy voting platform. Substantially all
 portfolio companies utilize Broadridge to collect their proxy votes.
Under the oversight of the Head of Administration,
 or his designee, the designated Trade Processing Assistant is responsible for voting
 all proxies in a timely manner. Votes are returned to Broadridge using Viewpoint
 as ballots are received, generally two weeks before the scheduled meeting date.
 The issuer can thus see that the shares were voted, but the actual vote cast is
 not released to the company until 4:00 pm on the day before the meeting. If proxies
 must be mailed, they go out at least ten business days before the meeting date.
Conflicts of Interest. The designated Trade
 Processing Assistant reviews reports generated by Royce’s portfolio management
 system (“Quest PMS”) that set forth by record date, any security held
 in a Royce client account which is issued by a (i) public company that is, or a
 known affiliate of which is, a separate account client of Royce (including sub-advisory
 relationships), (ii) public company, or a known affiliate of a public company, that
 has invested in a privately-offered pooled vehicle managed by Royce or (iii) public
 company, or a known affiliate of a public company, by which the spouse of a Royce
 employee or an immediate family member of a Royce employee living in the household
 of such employee is employed, for the purpose of identifying any potential proxy
 votes that could present a conflict of interest for Royce. The Compliance Department
 develops and updates the list of such public companies or their known



affiliates and this list is used by Quest
 PMS to generate these daily reports. This list also contains information regarding
 the source of any potential conflict relating to such companies. Potential conflicts
 identified on the “conflicts reports” are brought to the attention of
 the Compliance Department by the designated Trade Processing Assistant. An R&A
 Compliance Officer then reviews them to determine if business or personal relationships
 exist between Royce, its officers, managers or employees and the company that could
 present a material conflict of interest. Any such identified material conflicts
 are voted by Royce in accordance with the recommendation given by an independent
 third party research firm (Glass Lewis & Co.). The Trade Processing Assistant
 under the supervision of the Head of Administration, maintains a log of all such
 conflicts identified, the analysis of the conflict and the vote ultimately cast.
 Each entry in this log is signed by a Co-Chief Investment Officer before the relevant
 votes are cast.
Recordkeeping. A record of the issues and
 how they are voted is stored in the Viewpoint system for 7 years. Copies of all
 physically executed proxy cards, all proxy statements (with it being permissible
 to rely on proxy statements filed and available on Edgar) and any other documents
 created or reviewed that are material to making a decision on how to vote proxies
 are retained by the Trade Processing Assistant in an easily accessible place for
 a period of not less than six years from the end of the fiscal year during which
 the last entry was made on such record, the first two years at Royce’s office.
 In addition, copies of each written client request for information on how Royce
 voted proxies on behalf of that client, and a copy of any written response by Royce
 to any (written or oral) client request for information on how Royce voted proxies
 on behalf of that client will be maintained by Royce’s Head of Administration
 and/or Royce’s Director of Alternative Investments, or their designee (depending
 on who received such request) for a period of not less than six years from the end
 of the fiscal year during which the last entry was made on such record, the first
 two years at Royce’s office. Royce’s Compliance Department shall maintain
 a copy of any proxy voting policies and procedures in effect at any time within
 the last five years.
Disclosure. Royce’s proxy voting procedures
 will be disclosed to clients upon commencement of a client account. Thereafter,
 proxy voting records and procedures are generally disclosed to those clients for
 which Royce has authority to vote proxies as set forth below:


 
-
 
The Royce
 Funds – proxy voting records are disclosed annually on Form N-PX (with such
 voting records also available at www.roycefunds.com). Proxy voting procedures are
 available in the Statement of Additional Information for the open-end funds, in
 the annual report on Form N-CSR for the closed-end funds and at www.roycefunds.com.


 
-
 
Limited
 Liability Company and Limited Partnership Accounts – proxy voting records are
 disclosed to members/partners upon request and proxy voting procedures (along with
 a summary thereof) are provided to members/partners annually (and are available
 at www.roycefunds.com).


 
-
 
Separate
 Accounts – proxy voting records and procedures are disclosed to separate account
 clients annually.







Royce &
 Associates, LLC
 
 
 
 
 
 


PROXY VOTING
 GUIDELINES ON REGULARLY RECURRING MATTERS (revised 4/30/2015)
 
 


 
 
 
 
 
 
 


 
 
Initialed
 by Co-Chief Investment Officer


 


 
 
 
 
 
 
 


Elect Directors
 
For
 
 
 
 


Limit Number
 of Directors
 
 
 
For
 
 


Directors
 Fees, General (Foreign)
 
For
 
 
 
 


 
 
 
 
 
 
 


Ratify or
 appoint Accountants or Auditors
 
For
 
 
 
 


 
 
 
 
 
 
 


 


 
 
 
 
 
 
 


On positions
 we own less than 5% of the outstanding shares of the issuer
 
 
 
 
 
 


Where Management
 and the Proxy Advisor have both voted “For”
 
 
 
 
 
 


 
 
 
 
 
 
 


Employee/Non-employee/Director
 stock option (Incentive) Plans
 
For
 
 
 
 


Say on Pay1
 
For
 
 
 
 


Frequency
 of Say on Pay
 
 
 
 
 
Abstain


 
 
 
 
 
 
 


 


 
 
 
 
 
 
 


Differing
 Recommendations from Management and Proxy Advisor
 
 
 
 
 
 


on positions
 less than 5% of the outstanding shares of the issuer
 
 
 
 
 
 


 
 
 
 
 
 
 


Employee/Non-employee/Director
 stock option (Incentive) Plans
 
 
 
 
 
Abstain


Say on Pay
 
 
 
 
 
Abstain


Frequency
 of Say on Pay
 
 
 
 
 
Abstain


 
 
 
 
 
 
 


 


 
 
 
 
 
 
 


Limit Directors
 Liability
 
 
 
 
 
Abstain *


Eliminate
 Directors Liability
 
 
 
 
 
Abstain *


 
 
 
 
 
 
 


Reduce Par
 Value of Stock
 
For
 
 
 
 


 
 
 
 
 
 
 


Increase Authorized
 Shares or Shares Outstanding
 
For
 
 
 
 


 
 
 
 
 
 
 


Classified
 (Tiered) Board
 
 
 
Against
 
 


Eliminate/Declassify
 classified (Tiered) Board
 
For
 
 
 
 


 
 
 
 
 
 
 


Deferred Compensation
 Plan
 
For
 
 
 
 


 
 
 
 
 
 
 


Name Change
 of Company
 
For
 
 
 
 


 
 
 
 
 
 
 


Profit Sharing
 Plan
 
For
 
 
 
 


 
 
 
 
 
 
 


CERES (Coalition
 for Environmentally Responsible
 
 
 
 
 
 


Economies)
 or Valdez/McBride Principles
 
 
 
Abstain
 
 


 
 
 
 
 
 
 


Any Other
 Business
 
 
 
Against
 
 


 
 
 
 
 
 
 


Adjourn Meeting
 to Solicit Additional Proxies
 
For
 
 
 
 


 
 
 
 
 
 
 


Approve Profits/Dividends
 (Foreigns)
 
For
 
 
 
 


 
 
 
 
 
 
 


Issue Accounts
 & Reports (Foreigns)
 
For
 
 
 
 


 
 
 
 
 
 
 


Approve Auditors
 Fees
 
For
 
 
 
 


 
 
 
 
 
 
 


*except if we own 5% or more of the outstanding
 shares of the issuer, look at each proposal and ask PM to provide voting instructions.



Item 8. Portfolio Managers of Closed-End
 Management Investment Companies.
(a)(1) Portfolio Managers of Closed-End
 Management Investment Companies (information as of December 31, 2015)


Name
Title
Length of Service
Principal Occupation(s) During Past 5 Years


Charles M.
 Royce
President
 and member of the Board of Directors of the Registrant
Since 1986
Chief Executive
 Officer and member of the Board of Managers of Royce & Associates, LLC (“Royce”), investment adviser to the Registrant, Member of the boards of directors/trustees
 of the Registrant, Royce Micro-Cap Trust, Inc. (“RMT”), Royce Global Value Trust,
 Inc., The Royce Fund, and Royce Capital Fund (collectively, “The Royce Funds”).


Chris E. Flynn
Assistant
 Portfolio Manager*
Since April
 1, 2007
Assistant
 Portfolio Manager of the Registrant (since April 1, 2007); and Principal, Portfolio
 Manager and Senior Analyst at Royce (since 1993).


David A. Nadel
Assistant
 Portfolio Manager*
Since April
 1, 2007
Assistant
 Portfolio Manager of the Registrant (since April 1, 2007); Director of International
 Research at Royce (since 2010); Portfolio Manager and Senior Analyst at Royce (since 2006); Senior Portfolio Manager at Neuberger Berman Inc. (2004-2006); and Senior
 Analyst at Pequot Capital Management, Inc. (2001-2003).


Lauren A.
 Romeo
Assistant
 Portfolio Manager*
Since May
 1, 2009
Assistant
 Portfolio of the Registrant (since May 1, 2009); Portfolio Manager and Analyst at
 Royce (since 2004); Portfolio Manager at Dalton, Grenier, Hartman & Maher (since
 2001); an Analyst with Legg Mason Funds Management (2000-2001); and an Analyst with
 T. Rowe Price Group (1996-2000).


    * Assistant Portfolio Managers may have investment discretion over a portion of the
 Registrant’s portfolio subject to the supervision of Registrant’s Portfolio
 Manager.



(a)(2) Other Accounts Managed by Portfolio
 Manager and Potential Conflicts of Interest (information as of December 31, 2015)
Other Accounts


 Name of
Portfolio
Manager
Type of Account
Number of
Accounts
Managed
Total
Assets
Managed
Number of
Accounts
Managed for which
Advisory Fee is
Performance-Based
Value of
Managed Accounts for
which Advisory Fee is Performance
Based


Charles M.
 Royce
 
 
 
 
 


 
Registered
 investment companies
10
10,590,228,257
2
1,384,441,392


 
Private pooled
 investment vehicles
1
23,017,789
1
23,017,789


 
Other accounts*
12
46,735,901
-
-


 
 
 
 
 
 


Chris E. Flynn
 
 
 
 
 


 
Registered
 investment companies
7
5,058,411,775
2
1,384,441,392


 
Private pooled
 investment vehicles
-
-
-
-


 
Other accounts*
-
-
-
-


 
 
 
 
 
 


David A. Nadel
 
 
 
 
 


 
Registered
 investment companies
5
1,259,741,902
1
1,072,034,600


 
Private pooled
 investment vehicles
-
-
-
-


 
Other accounts*
-
-
-
-


 
 
 
 
 
 


Lauren A.
 Romeo
 
 
 
 
 


 
Registered
 investment companies
4
6,765,070,708
1
1,072,034,600


 
Private pooled
 investment vehicles
2
457,744,973
-
-


 
Other accounts*
-
-
-
-


*Other accounts include all other accounts
 managed by the Portfolio Manager in either a professional or personal capacity except
 for personal accounts subject to pre-approval and reporting requirements under the
 Registrant’s Rule 17j-1 Code of Ethics.



Conflicts of Interest
The fact that
 a Portfolio Manager has day-to-day management responsibility for more than one client
 account may create actual, potential or only apparent conflicts of interest. For
 example, the Portfolio Manager may have an opportunity to purchase securities of
 limited availability. In this circumstance, the Portfolio Manager is expected to
 review each account’s investment guidelines, restrictions, tax considerations,
 cash balances, liquidity needs and other factors to determine the suitability of
 the investment for each account and to ensure that his or her managed accounts are
 treated equitably. The Portfolio Manager may also decide to purchase or sell the
 same security for multiple managed accounts at approximately the same time. To address
 any conflicts that this situation may create, the Portfolio Manager will generally
 combine managed account orders (i.e., enter a “bunched” order) in an effort to obtain
 best execution or a more favorable commission rate. In addition, if orders to buy
 or sell a security for multiple accounts managed by common Portfolio Managers on
 the same day are executed at different prices or commission rates, the transactions
 will generally be allocated by Royce & Associates, LLC (“Royce”)
 to each of such managed accounts at the weighted average execution price and commission.
 In circumstances where a pre-allocated bunched order is not completely filled, each
 account will normally receive a pro-rated portion of the securities based upon the
 account’s level of participation in the order. Royce may under certain circumstances
 allocate securities in a manner other than pro-rata if it determines that the allocation
 is fair and equitable under the circumstances and does not discriminate against
 any account.
As described
 below, there is a revenue-based component of each Portfolio Manager’s Performance-Related
 Variable Compensation and the Portfolio Managers also receive Firm-Related Variable
 Compensation based on revenues (adjusted for certain imputed expenses) generated
 by Royce. In addition, Charles M. Royce receives variable compensation based on
 Royce’s retained pre-tax profits from operations. As a result, the Portfolio
 Managers may receive a greater relative benefit from activities that increase the
 value to Royce of The Royce Funds and/or other Royce client accounts, including,
 but not limited to, increases in sales of Registrant’s shares and assets under
 management.
Also, as described
 above, the Portfolio Managers generally manage more than one client account, including,
 among others, registered investment company accounts, separate accounts and private
 pooled accounts managed on behalf of institutions (e.g., pension funds, endowments
 and foundations) and for high-net-worth individuals. The appearance of a conflict
 of interest may arise where Royce has an incentive, such as a performance-based
 management fee (or any other variation in the level of fees payable by the Registrant
 or other Royce client accounts to Royce), which relates to the management of one
 or more of The Royce Funds or accounts with respect to which the same Portfolio
 Manager has day-to-day management responsibilities. Except as described below, no
 Royce Portfolio Manager’s compensation is tied to performance fees earned by
 Royce for the management of any one client account. Although variable and other
 compensation derived from Royce revenues or profits is impacted to some extent,
 the impact is relatively minor given the small percentage of Royce firm assets under
 management for which Royce receives performance-measured revenue. Notwithstanding
 the above, the Performance-Related Variable Compensation paid to Charles M. Royce
 as Portfolio Manager of two registered investment company accounts (the Registrant
 and RMT) is based, in part, on performance-based fee revenues. The Registrant and
 RMT pay Royce a fulcrum fee that is adjusted up or down depending on the performance
 of the Fund relative to its benchmark index.
Finally, conflicts
 of interest may arise when a Portfolio Manager personally buys, holds or sells securities
 held or to be purchased or sold for the Registrant or other Royce client account
 or personally buys, holds or sells the shares of one or more of The Royce Funds.
 To address this, Royce has adopted a written Code of Ethics designed to prevent
 and detect personal trading activities that may interfere or conflict with client
 interests (including Registrant’s stockholders’ interests). Royce generally
 does not permit its Portfolio Managers to purchase small- or micro-cap securities
 for their personal investment portfolios.
Royce and
 The Royce Funds have adopted certain compliance procedures which are designed to
 address the above-described types of conflicts. However, there is no guarantee that
 such procedures will detect each and every situation in which a conflict arises.



(a)(3) Description of Portfolio Manager
 Compensation Structure (information as of December 31, 2014)
Royce seeks
 to maintain a compensation program that is competitively positioned to attract and
 retain high-caliber investment professionals. All Portfolio Managers, receive from
 Royce a base salary, Performance-Related Variable Compensation (generally the largest
 element of each Portfolio Manager’s compensation with the exception of Charles
 M. Royce), Firm-Related Variable Compensation based primarily on registered investment
 company and other client account revenues generated by Royce and a benefits package.
 Portfolio Manager compensation is reviewed and may be modified from time to time
 as appropriate to reflect changes in the market, as well as to adjust the factors
 used to determine variable compensation. Except as described below, each Portfolio
 Manager’s compensation consists of the following elements:


 
-
 
BASE SALARY.
 Each Portfolio Manager is paid a base salary. In setting the base salary, Royce
 seeks to be competitive in light of the particular Portfolio Manager’s experience
 and responsibilities.


 
 
 
 


 
-
 
PERFORMANCE-RELATED
 VARIABLE COMPENSATION. Each Portfolio Manager receives quarterly Performance-Related
 Variable Compensation that is either asset-based, or revenue-based and therefore
 in part based on the value of the net assets of the account for which he or she
 is being compensated, determined with reference to each of the registered investment
 company and other client accounts they are managing. The revenue used to determine
 the quarterly Performance-Related Variable Compensation received by Charles M. Royce
 that relates to each of the Registrant and RMT is performance-based fee revenue.
 For all Portfolio Managers, the Performance-Related Variable Compensation applicable
 to the registered investment company accounts managed by the Portfolio Manager is
 subject to downward adjustment or elimination based on a combination of 3-year,
 5-year risk and 10-year risk-adjusted pre-tax returns of such accounts relative
 to all small-cap objective funds with three years of history tracked by Morningstar
 (as of December 31, 2015 there were 425 such funds tracked by Morningstar), the
 5-year absolute returns of such accounts relative to 5-year U.S. Treasury Notes
 and absolute returns over the prior full market cycle and current cycle to date
 vs. the accounts’ benchmark. The Performance-Related Variable Compensation
 applicable to non-registered investment company accounts managed by a Portfolio
 Manager is not subject to performance-related adjustment.


Payment of the Performance-Related Variable
 Compensation may be deferred, and any amounts deferred are forfeitable, if the Portfolio
 Manager is terminated by Royce with or without cause or resigns. The amount of the
 deferred Performance-Related Variable Compensation will appreciate or depreciate
 during the deferral period, based on the total return performance of one or more
 Royce-managed registered investment company accounts selected by the Portfolio Manager
 at the beginning of the deferral period. The amount deferred will depend on the
 Portfolio Manager’s total direct, indirect beneficial and deferred unvested
 investments in the Royce registered investment company account for which he or she
 is receiving portfolio management compensation.


 
-
 
FIRM-RELATED
 VARIABLE COMPENSATION. Each Portfolio Manager receives quarterly variable compensation
 based on Royce’s net revenues.


 
 
 
 


 
-
 
BENEFIT PACKAGE.
 Each Portfolio Manager also receives benefits standard for all Royce employees,
 including health care and other insurance benefits, and participation in Royce’s
 401(k) Plan and Money Purchase Pension Plan. From time to time, on a purely discretionary
 basis, Portfolio Managers may also receive options to acquire stock in Royce’s
 parent company, Legg Mason, Inc. Those options typically represent a relatively
 small portion of a Portfolio Managers’ overall compensation.


Charles M. Royce, in addition to the above-described
 compensation, also receive variable compensation based on Royce’s retained
 pre-tax operating profit. This variable compensation, along with the Performance-Related
 Variable Compensation and Firm-Related Variable Compensation, generally represents
 the most significant element of Mr. Royce’s compensation. A portion of the
 above-described compensation payable to Mr. Royce relates to his responsibilities
 as Royce’s Chief Executive Officer and President of The Royce Funds.



(a)(4) Dollar Range of Equity Securities
 in Registrant Beneficially Owned by Portfolio Manager (information as of December
 31, 2015)
The following
 table shows the dollar range of the Registrant’s shares owned beneficially
 and of record by the Portfolio Managers, including investments by his immediate
 family members sharing the same household and amounts invested through retirement
 and deferred compensation plans.


Portfolio
 Manager

Dollar
 Range of Registrant’s Shares Beneficially Owned


Charles M.
 Royce

Over $1,000,000


Chris E. Flynn

$100,001 to
 $500,000


David A. Nadel

None


Lauren A.
 Romeo

$100,001 to
 $500,000


(b) Not Applicable
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company
 and Affiliated Purchasers. Not Applicable

Item 10. Submission of Matters to a Vote of Security Holders. Not Applicable.
Item 11. Controls and Procedures.
(a) Disclosure Controls and Procedures. The Principal Executive and Financial Officers
 concluded that the Registrant’s Disclosure Controls and Procedures are effective
 based on their evaluation of the Disclosure Controls and Procedures as of a date
 within 90 days of the filing date of this report.
(b) Internal Control over Financial Reporting. There were no significant changes
 in Registrant’s internal control over financial reporting or in other factors
 that could significantly affect this control subsequent to the date of the evaluation,
 including any corrective actions with regard to significant deficiencies and material
 weaknesses during the second fiscal quarter of the period covered by this report.
Item 12. Exhibits. Attached hereto.
(a)(1) The Registrant’s code
 of ethics pursuant to Item 2 of Form N-CSR.
(a)(2) Separate certifications by the Registrant’s Principal Executive
 Officer and Principal Financial Officer as required by Rule 30a-2(a) under the Investment
 Company Act of 1940.
(a)(3) Not Applicable
(b) Separate certifications by the Registrant’s Principal Executive Officer
 and Principal Financial Officer, pursuant to Section 906 of the Sarbanes-Oxley Act
 of 2002 and required by Rule 30a-2(b) under the Investment Company Act of 1940.



Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment
 Company Act of 1940, the registrant has duly caused this report to be signed on
 its behalf by the undersigned, thereunto duly authorized.
ROYCE VALUE TRUST, INC.


BY:
/s/ Christopher D. Clark
 


 
 
 


 
Christopher
 D. Clark
 


 
President

 


 
 
 


Date: March
 2, 2016
 


 
 
 


Pursuant to the requirements of the Securities
 Exchange Act of 1934 and the Investment Company Act of 1940, this report has been
 signed below by the following persons on behalf of the registrant and in the capacities
 and on the dates indicated.


ROYCE VALUE TRUST, INC.
ROYCE VALUE
 TRUST, INC.


 
 
 
 
 
 


BY:
/s/ Christopher
 D. Clark
 
 
BY:
/s/ Peter
 K. Hoglund


 
Christopher
 D. Clark
 
 
 
Peter K.
 Hoglund


 
President

 
 
 
Treasurer



 
 
 
 
 
 


Date: March
 2, 2016
 
 
Date: March
 2, 2016