UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act File Number: 811-04875

 

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

 

Name and address of agent for service:

John E. Denneen, Esq.

Royce & Associates, LP

745 Fifth Avenue

New York, NY 10151

 

Registrant’s telephone number, including area code: (212) 508-4500

 

Date of fiscal year end: 12/31/2018

 

Date of reporting period: 9/30/2018

 

Item 1 - Schedule of Investments

 

 

 
 
SCHEDULE OF INVESTMENTS
ROYCE VALUE TRUST
SEPTEMBER 30, 2018 (UNAUDITED)

      SHARES     VALUE  
COMMON STOCKS – 96.4%              
               
Communication Services – 1.8%              
Entertainment - 0.1%              

Global Eagle Entertainment 1

     110,000   $ 310,200  

Rosetta Stone 1

     40,000     795,600  
             
            1,105,800  
             
Interactive Media & Services - 0.3%              

QuinStreet 1

     180,254     2,446,047  

TripAdvisor 1

     50,000     2,553,500  
             
            4,999,547  
             
Media - 1.0%              

Cable One

     3,885     3,432,825  

comScore 1

     390,836     7,124,940  

Gray Television 1

     50,000     875,000  

Liberty Latin America Cl. C 1

     246,300     5,081,169  

Pico Far East Holdings

     2,612,400     1,027,827  
             
            17,541,761  
             
Wireless Telecommunication Services - 0.4%              

Boingo Wireless 1

     50,000     1,745,000  

Telephone and Data Systems

     165,270     5,029,166  
             
            6,774,166  
             
Total           30,421,274  
             
               
Consumer Discretionary – 9.7%              

Auto Components - 1.0%

              

Dorman Products 1

     103,000     7,922,760  

Gentex Corporation

     62,500     1,341,250  

LCI Industries

     73,616     6,095,405  

Standard Motor Products

     13,391     659,105  
             
            16,018,520  
             
Automobiles - 0.5%              

Thor Industries

     100,430     8,405,991  
             
Distributors - 1.4%              

Core-Mark Holding Company

     416,100     14,130,756  

LKQ Corporation 1

     171,200     5,421,904  

Weyco Group

     97,992     3,447,358  
             
            23,000,018  
             
Diversified Consumer Services - 0.3%              

Collectors Universe

     71,100     1,052,280  

Houghton Mifflin Harcourt 1

     100,000     700,000  

Liberty Tax Cl. A 2

     151,573     1,765,826  

Universal Technical Institute 1

     504,032     1,340,725  
             
            4,858,831  
             
Hotels, Restaurants & Leisure - 0.2%              

Lindblad Expeditions Holdings 1

     207,600     3,087,012  
             
Household Durables - 1.0%              

Cavco Industries 1

     14,700     3,719,100  

Ethan Allen Interiors

     200,000     4,150,000  

HG Holdings 1, 2, 3

     912,235     446,995  

Natuzzi ADR 1

     2,096,300     2,871,931  

Purple Innovation 1

     225,000     1,305,000  

Purple Innovation (Warrants) 1, 4

     750,000     142,500  

Skyline Champion

     70,400     2,011,328  

TopBuild Corporation 1

     29,300     1,664,826  
             
            16,311,680  
             
Internet & Direct Marketing Retail - 1.0%              

Etsy 1

     68,100     3,498,978  

FTD Companies 1

     298,014     783,777  

Shutterfly 1

     29,400     1,937,166  

Stamps.com 1

     35,700     8,075,340  

zooplus 1

     10,700     1,859,759  
             
            16,155,020  
             
Leisure Products - 0.5%              

Nautilus 1

     574,500     8,014,275  
             
Specialty Retail - 2.8%              

America’s Car-Mart 1

     120,000     9,384,000  

AutoCanada

     513,000     5,413,379  

Barnes & Noble

     67,000     388,600  

Camping World Holdings Cl. A

     706,913     15,071,385  

Container Store Group (The) 1

     158,200     1,756,020  

Destination Maternity 1

     557,967     2,600,126  

Monro

     139,000     9,674,400  

Signet Jewelers

     35,000     2,307,550  

TravelCenters of America LLC 1

     62,500     356,250  
             
            46,951,710  
             
Textiles, Apparel & Luxury Goods - 1.0%              

Culp

     29,400     711,480  

J.G. Boswell Company 2

     3,940     2,564,940  

Wolverine World Wide

     348,900     13,624,545  
             
            16,900,965  
             
Total           159,704,022  
             
               
Consumer Staples – 1.5%              
Beverages - 0.1%              

Compania Cervecerias Unidas ADR

     64,500     1,799,550  
             
Food Products - 1.2%              

Cal-Maine Foods

     46,416     2,241,893  

Farmer Bros. 1

     54,700     1,444,080  

Nomad Foods 1

     125,000     2,532,500  

Seneca Foods Cl. A 1

     226,560     7,635,072  

Seneca Foods Cl. B 1

     13,840     442,880  

SunOpta 1

     50,000     367,500  

Tootsie Roll Industries

     165,529     4,841,723  
             
            19,505,648  
             
Personal Products - 0.2%              

Inter Parfums

     57,630     3,714,254  
             
Total           25,019,452  
             
               
Energy – 5.9%              
Energy Equipment & Services - 4.7%              

CARBO Ceramics 1

     78,000     565,500  

Computer Modelling Group

     594,350     3,888,250  

Diamond Offshore Drilling 1

     214,000     4,280,000  

Era Group 1

     564,693     6,973,959  

Forum Energy Technologies 1

     249,431     2,581,611  

Frank’s International 1

     108,600     942,648  

Helmerich & Payne

     94,000     6,464,380  

ION Geophysical 1

     71,880     1,117,734  

Oil States International 1

     10,000     332,000  

Pason Systems

     607,680     9,216,468  

Patterson-UTI Energy

     35,050     599,706  

Precision Drilling 1

     93,900     324,894  

SEACOR Holdings 1

     150,469     7,434,673  

SEACOR Marine Holdings 1

     638,834     14,456,813  

TGS-NOPEC Geophysical

     377,170     15,371,806  

Trican Well Service 1

     897,300     1,604,740  

Unit Corporation 1

     15,000     390,900  
             
            76,546,082  
             
Oil, Gas & Consumable Fuels - 1.2%              

Dorchester Minerals L.P.

     279,148     5,694,619  

Dorian LPG 1

     394,936     3,147,640  

GeoPark 1

     53,200     1,085,280  

International Petroleum 1

     100,000     654,860  

Pryce Corporation

     2,738,100     291,395  

San Juan Basin Royalty Trust

     212,272     1,052,869  

World Fuel Services

     224,227     6,206,603  

WPX Energy 1

     110,000     2,213,200  
             
            20,346,466  
             
Total           96,892,548  
             
               
Financials – 14.9%              
Banks - 2.8%              

Bank of N.T. Butterfield & Son

     228,416     11,845,654  

Canadian Western Bank

     279,500     7,378,895  

Farmers & Merchants Bank of Long Beach 2

     1,080     9,180,000  

Fauquier Bankshares

     160,800     4,069,848  

First Citizens BancShares Cl. A

     14,676     6,637,661  

Metro Bank 1

     20,000     775,263  

Webster Financial

     116,800     6,886,528  
             
            46,773,849  
             
Capital Markets - 7.2%              

Ares Management L.P.

     577,600     13,400,320  

Artisan Partners Asset Management Cl. A

     264,900     8,582,760  

ASA Gold and Precious Metals

     199,821     1,772,412  

Ashmore Group

     1,354,000     6,423,887  

Associated Capital Group Cl. A

     20,200     859,510  

Bolsa Mexicana de Valores

     1,723,106     3,525,581  

Cowen 1

     62,706     1,022,108  

Dundee Corporation Cl. A 1

     1,079,900     1,471,470  

Edmond de Rothschild (Suisse)

     153     2,556,756  

GMP Capital

     287,100     506,784  

Hamilton Lane Cl. A

     13,800     611,064  

Jupiter Fund Management

     230,000     1,215,017  

Lazard Cl. A

     104,935     5,050,522  

Manning & Napier Cl. A

     395,692     1,167,291  

MarketAxess Holdings

     51,600     9,210,084  

Morningstar

     84,600     10,651,140  

MVC Capital

     195,688     1,888,389  

Oaktree Capital Group LLC Cl. A

     279,700     11,579,580  

Qalaa Holdings 1

     7,749,921     1,336,342  

Rothschild & Co

     92,293     3,911,224  

SEI Investments

     148,500     9,073,350  

Sprott

     1,927,000     4,490,590  

TMX Group

     40,700     2,731,609  

U.S. Global Investors Cl. A

     520,551     791,238  

Value Partners Group

     5,453,000     4,339,636  

Virtu Financial Cl. A

     407,000     8,323,150  

Westwood Holdings Group

     38,850     2,010,099  
             
            118,501,913  
             
Diversified Financial Services - 0.1%              

First Pacific

     1,020,000     502,941  

Waterloo Investment Holdings 1, 4

     2,972,000     891,600  
             
            1,394,541  
             
Insurance - 3.2%              

E-L Financial

     22,500     14,201,312  

Erie Indemnity Cl. A

     25,000     3,188,250  

Independence Holding Company

     259,223     9,306,106  

MBIA 1

     942,400     10,074,256  

ProAssurance Corporation

     163,839     7,692,241  

RLI Corp.

     57,200     4,494,776  

Trupanion 1

     87,900     3,140,667  
             
            52,097,608  
             
Investment Companies - 0.6%              

Landcadia Holdings Cl. A 1

     94,850     1,028,174  

RIT Capital Partners

     41,000     1,090,164  

Social Capital Hedosophia Holdings Cl. A 1

     819,918     8,125,387  
             
            10,243,725  
             
Thrifts & Mortgage Finance - 1.0%              

Axos Financial 1

     16,300     560,557  

Genworth MI Canada

     225,895     7,448,510  

Timberland Bancorp

     288,857     9,023,893  

Vestin Realty Mortgage II 1, 2

     34     40,800  
             
            17,073,760  
             
Total           246,085,396  
             
               
Health Care – 4.8%              
Biotechnology - 0.5%              

AMAG Pharmaceuticals 1

     33,800     676,000  

Sangamo Therapeutics 1

     65,815     1,115,564  

Zealand Pharma 1

     408,857     6,696,626  
             
            8,488,190  
             
Health Care Equipment & Supplies - 2.1%              

Atrion Corporation

     15,750     10,943,100  

DENTSPLY SIRONA

     5,000     188,700  

Hill-Rom Holdings

     5,000     472,000  

Integer Holdings 1

     42,400     3,517,080  

Masimo Corporation 1

     50,000     6,227,000  

Merit Medical Systems 1

     20,000     1,229,000  

Neogen Corporation 1

     22,400     1,602,272  

Surmodics 1

     138,500     10,339,025  
             
            34,518,177  
             
Health Care Providers & Services - 0.2%              

Community Health Systems 1

     790,000     2,733,400  
             

Health Care Technology - 1.0%

              

athenahealth 1

     32,500     4,342,000  

Medidata Solutions 1

     174,250     12,774,267  
             
            17,116,267  
             
Life Sciences Tools & Services - 0.9%              

Bio-Rad Laboratories Cl. A 1

     34,198     10,703,632  

Bio-Techne

     19,843     4,050,155  
             
            14,753,787  
             
Pharmaceuticals - 0.1%              

Alimera Sciences 1

     199,186     195,202  

Theravance Biopharma 1

     34,291     1,120,287  
             
            1,315,489  
             
Total           78,925,310  
             
               
Industrials – 29.1%              
Aerospace & Defense - 3.5%              

Ducommun 1

     117,200     4,786,448  

HEICO Corporation

     260,346     24,110,643  

HEICO Corporation Cl. A

     157,827     11,915,938  

Hexcel Corporation

     51,400     3,446,370  

Magellan Aerospace

     96,800     1,360,214  

Teledyne Technologies 1

     5,900     1,455,412  

Wesco Aircraft Holdings 1

     935,364     10,522,845  
             
            57,597,870  
             
Air Freight & Logistics - 1.4%              

Expeditors International of Washington

     143,000     10,514,790  

Forward Air

     170,750     12,242,775  
             
            22,757,565  
             
Building Products - 0.3%              

Burnham Holdings Cl. B 2

     36,000     533,160  

Patrick Industries 1

     15,775     933,880  

Simpson Manufacturing

     59,900     4,340,354  
             
            5,807,394  
             
Commercial Services & Supplies - 2.1%              

Atento

     188,700     1,415,250  

CECO Environmental 1

     99,028     780,341  

CompX International Cl. A

     211,100     2,870,960  

Copart 1

     125,400     6,461,862  

Heritage-Crystal Clean 1

     100,106     2,137,263  

Kimball International Cl. B

     286,180     4,793,515  

Mobile Mini

     105,000     4,604,250  

PICO Holdings

     409,400     5,137,970  

Ritchie Bros. Auctioneers

     54,900     1,983,537  

Steelcase Cl. A

     40,000     740,000  

UniFirst Corporation

     22,270     3,867,185  
             
            34,792,133  
             
Construction & Engineering - 3.5%              

EMCOR Group

     65,800     4,942,238  

IES Holdings 1

     594,244     11,587,758  

Infrastructure and Energy Alternatives 1

     550,000     5,775,000  

Infrastructure and Energy Alternatives

              

(Warrants) 1

     625,000     1,056,250  

Jacobs Engineering Group

     169,900     12,997,350  

KBR

     337,400     7,129,262  

Sterling Construction 1

     122,300     1,751,336  

Valmont Industries

     75,345     10,435,283  

Williams Industrial Services Group 1, 2

     631,820     1,295,231  
             
            56,969,708  
             
Electrical Equipment - 0.7%              

AZZ

     5,000     252,500  

LSI Industries

     263,000     1,209,800  

nVent Electric

     25,000     679,000  

Powell Industries

     94,500     3,426,570  

Preformed Line Products

     91,600     6,437,648  
             
            12,005,518  
             
Industrial Conglomerates - 0.7%              

Raven Industries

     251,725     11,516,419  
             
Machinery - 10.7%              

CIRCOR International 1

     160,184     7,608,740  

Colfax Corporation 1

     82,242     2,965,647  

Donaldson Company

     193,559     11,276,747  

Franklin Electric

     182,300     8,613,675  

Graco

     241,028     11,169,238  

Hyster-Yale Materials Handling Cl. A

     10,000     615,300  

IDEX Corporation

     53,900     8,120,574  

John Bean Technologies

     87,826     10,477,642  

Kadant

     78,100     8,423,085  

Kennametal

     160,100     6,973,956  

Lincoln Electric Holdings

     131,360     12,274,278  

Lindsay Corporation

     110,000     11,026,400  

NN

     308,700     4,815,720  

Nordson Corporation

     24,296     3,374,714  

Proto Labs 1

     10,000     1,617,500  

RBC Bearings 1

     109,600     16,479,456  

Sun Hydraulics

     351,118     19,234,244  

Tennant Company

     111,900     8,498,805  

Titan International

     173,100     1,284,402  

Watts Water Technologies Cl. A

     61,000     5,063,000  

Westinghouse Air Brake Technologies

     73,100     7,666,728  

Woodward

     104,600     8,457,956  
             
            176,037,807  
             
Marine - 1.7%              

Clarkson

     371,100     13,059,680  

Eagle Bulk Shipping 1

     320,478     1,801,086  

Kirby Corporation 1

     169,900     13,974,275  
             
            28,835,041  
             
Professional Services - 1.2%              

ASGN 1

     106,700     8,421,831  

ManpowerGroup

     107,200     9,214,912  

Quess Corporation 1

     15,720     193,003  

TrueBlue 1

     56,245     1,465,182  
             
            19,294,928  
             
Road & Rail - 1.7%              

Genesee & Wyoming Cl. A 1

     15,000     1,364,850  

Knight-Swift Transportation Holdings Cl. A

     122,400     4,220,352  

Landstar System

     116,760     14,244,720  

Patriot Transportation Holding 1

     139,100     2,658,201  

Saia 1

     40,000     3,058,000  

Universal Logistics Holdings

     78,916     2,904,109  
             
            28,450,232  
             
Trading Companies & Distributors - 1.6%              

Air Lease Cl. A

     303,200     13,910,816  

Central Steel and Wire (Escrow) 1, 4

     4,862     148,243  

Houston Wire & Cable 1, 3

     877,363     6,755,695  

SiteOne Landscape Supply 1

     25,000     1,883,500  

Watsco

     20,400     3,633,240  
             
            26,331,494  
             
Total           480,396,109  
             
               
Information Technology – 17.2%              
Communications Equipment - 0.3%              

ADTRAN

     214,973     3,794,273  

Mitel Networks 1

     100,000     1,102,000  
             
            4,896,273  
             
Electronic Equipment, Instruments & Components - 9.3%              

Anixter International 1

     63,795     4,484,788  

Cognex Corporation

     350,600     19,570,492  

Coherent 1

     60,400     10,400,276  

eMagin Corporation (Warrants) 1, 4

     50,000     0  

Fabrinet 1

     222,600     10,297,476  

FARO Technologies 1

     179,437     11,546,771  

FLIR Systems

     611,637     37,597,326  

Horiba

     12,000     635,804  

IPG Photonics 1

     51,100     7,975,177  

Littelfuse

     23,900     4,729,571  

National Instruments

     261,850     12,655,211  

nLIGHT 1

     144,400     3,207,124  

Perceptron 1

     357,700     3,487,575  

Plexus Corporation 1

     150,600     8,811,606  

Richardson Electronics

     573,732     5,031,630  

Rogers Corporation 1

     32,366     4,768,159  

TTM Technologies 1

     496,400     7,897,724  
             
            153,096,710  
             
IT Services - 0.7%              

Conduent 1

     20,000     450,400  

Hackett Group (The)

     417,266     8,407,910  

Innodata 1

     8,498     12,492  

Unisys Corporation 1

     160,000     3,264,000  
             
            12,134,802  
             
Semiconductors & Semiconductor Equipment - 4.2%              

Advanced Energy Industries 1

     20,000     1,033,000  

Brooks Automation

     407,700     14,281,731  

Cabot Microelectronics

     37,600     3,879,192  

Cirrus Logic 1

     125,000     4,825,000  

Cohu

     102,250     2,566,475  

Diodes 1

     270,850     9,016,596  

Entegris

     241,300     6,985,635  

Kulicke & Soffa Industries

     66,200     1,578,208  

MKS Instruments

     56,510     4,529,277  

Nova Measuring Instruments 1

     39,500     1,039,245  

Photronics 1

     183,700     1,809,445  

Rudolph Technologies 1

     84,500     2,066,025  

Silicon Motion Technology ADR

     25,000     1,342,500  

Teradyne

     130,000     4,807,400  

Universal Display

     20,650     2,434,635  

Veeco Instruments 1

     17,500     179,375  

Versum Materials

     177,600     6,395,376  

Xperi

     60,000     891,000  
             
            69,660,115  
             
Software - 2.5%              

Alarm.com Holdings 1

     10,000     574,000  

Altair Engineering Cl. A 1

     5,000     217,250  

ANSYS 1

     81,200     15,158,416  

j2 Global

     86,520     7,168,182  

Manhattan Associates 1

     125,000     6,825,000  

Monotype Imaging Holdings

     117,700     2,377,540  

RealNetworks 1

     109,950     323,253  

Solium Capital 1

     187,400     1,640,920  

SS&C Technologies Holdings

     12,000     681,960  

Support.com 1

     216,766     628,621  

TiVo

     106,900     1,330,905  

Workiva Cl. A 1

     100,000     3,950,000  
             
            40,876,047  
             
Technology Hardware, Storage & Peripherals - 0.2%              

Cray 1

     112,500     2,418,750  
             
Total           283,082,697  
             
               
Materials – 7.9%              
Chemicals - 3.7%              

Chase Corporation

     37,500     4,505,625  

Hawkins

     86,178     3,572,078  

Ingevity Corporation 1

     18,900     1,925,532  

Innospec

     60,383     4,634,395  

Minerals Technologies

     146,493     9,902,927  

NewMarket Corporation

     11,000     4,460,610  

Platform Specialty Products 1

     490,000     6,110,300  

Quaker Chemical

     132,669     26,826,999  
             
            61,938,466  
             
Containers & Packaging - 0.3%              

Mayr-Melnhof Karton

     34,000     4,271,272  
             
Metals & Mining - 3.4%              

Agnico Eagle Mines

     15,000     513,000  

Alamos Gold Cl. A

     803,300     3,687,972  

Ferroglobe

     50,000     408,500  

Ferroglobe (Warranty Insurance Trust) 1, 4

     49,300     0  

Franco-Nevada Corporation

     107,300     6,711,615  

Gold Fields ADR

     370,000     895,400  

Haynes International

     113,900     4,043,450  

Hecla Mining

     321,300     896,427  

Lundin Mining

     640,000     3,389,153  

MAG Silver 1

     198,900     1,613,079  

Major Drilling Group International 1

     842,757     3,164,457  

Pretium Resources 1

     101,000     767,871  

Reliance Steel & Aluminum

     193,720     16,522,379  

Royal Gold

     16,600     1,279,196  

Synalloy Corporation

     178,800     4,085,580  

Tahoe Resources 1

     646,000     1,802,340  

VanEck Vectors Junior Gold Miners ETF

     8,000     218,880  

Worthington Industries

     148,000     6,417,280  
             
            56,416,579  
             
Paper & Forest Products - 0.5%              

Neenah

     16,700     1,441,210  

Stella-Jones

     191,050     6,395,697  
             
            7,836,907  
             
Total           130,463,224  
             
               
Real Estate – 3.3%              
Equity Real Estate Investment Trusts (REITs) - 0.0%              

New York REIT

     15,000     272,100  
             
Real Estate Management & Development - 3.3%              

Altus Group

     24,200     573,501  

FirstService Corporation

     184,600     15,628,236  

FRP Holdings 1

     188,558     11,709,452  

Kennedy-Wilson Holdings

     111,300     2,392,950  

Marcus & Millichap 1

     198,613     6,893,857  

RMR Group Cl. A

     27,200     2,524,160  

St. Joe Company (The) 1

     197,000     3,309,600  

Tejon Ranch 1

     478,479     10,387,779  
             
            53,419,535  
             
Total           53,691,635  
             
               
Utilities – 0.3%              
Gas Utilities - 0.2%              

UGI Corporation

     69,500     3,855,860  
             
Independent Power & Renewable Electricity Producer - 0.1%              

Vistra Energy 1

     65,200     1,622,176  
             
Total           5,478,036  
             
               
TOTAL COMMON STOCKS              

(Cost $1,105,294,661)

           1,590,159,703  
             
               
REPURCHASE AGREEMENT – 3.6%              

Fixed Income Clearing Corporation,

              

0.42% dated 9/28/18, due 10/1/18,

              

maturity value $59,120,069 (collateralized

              

by obligations of various U.S. Government

              

Agencies, 3.75% due 11/15/43, valued at $60,305,095)

              

(Cost $59,118,000)

           59,118,000  
             
               
TOTAL INVESTMENTS – 100.0%              

(Cost $1,164,412,661)

           1,649,277,703  
               
CASH AND OTHER ASSETS              

LESS LIABILITIES – 0.0%

           334,780  
             
               
NET ASSETS – 100.0%         $ 1,649,612,483  
             

1
Non-income producing.
2
These securities are defined as Level 2 securities due to fair value being based on quoted prices for similar securities.
3
At September 30, 2018, 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.
4
Securities for which market quotations are not readily available represent 0.1% of net assets. These securities have been valued at their fair value under procedures approved by the Fund’s Board of Directors. These securities are defined as Level 3 securities due to the use of significant unobservable inputs in the determination of fair value.

TAX INFORMATION: The cost of total investments for Federal income tax purposes was $1,165,290,871. At September 30, 2018, net unrealized appreciation for all securities was $483,986,832, consisting of aggregate gross unrealized appreciation of $573,680,690 and aggregate gross unrealized depreciation of $89,693,858. The primary cause of the difference between book and tax basis cost is the timing of the recognition of losses on securities sold.

Valuation of Investments:
Investment transactions are accounted for on the trade date. 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 September 30, 2018. 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   $1,573,150,409   $15,826,951   $1,182,343   $1,590,159,703
Cash Equivalents   –   59,118,000   –   59,118,000

Certain securities have transferred in and out of Level 1 and Level 2 measurements during the reporting period. The Fund recognizes transfers between levels as of the end of the reporting period. For the nine months ended September 30, 2018, securities valued at $2,212,821 were transferred from Level 1 to Level 2 and securities valued at $70,048,321 were transferred from Level 2 to Level 1 within the fair value hierarchy.

Level 3 Reconciliation:                    
                     
    Balance as of       Realized   Unrealized    
    12/31/17   Purchases   Gain (Loss)   Gain (Loss)   Balance as of 9/30/18
 
Common Stocks   $891,600   $461,843   $–   $(171,100)   $1,182,343

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).

                    Impact to Valuation
    Fair Value at       Unobservable       From an Increase
    9/30/18   Valuation Technique(s)   Input(s)   Range Average   in Input1
 

Common Stocks		  
$1,182,343		   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 September 30, 2018 is overnight and continuous.

Borrowings:
The Fund is party to a revolving credit agreement (the credit agreement) with BNP Paribas Prime Brokerage International, Limited (BNPPI). As of September 30, 2018, the Fund had no outstanding borrowings. During the period ended September 30, 2018, the Fund borrowed an average daily balance of $65,366,300. 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 or as otherwise required by applicable regulatory standards and has granted a security interest in the securities pledged to, and in favor of, BNPPI 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 which may necessitate the sale of portfolio securities at potentially inopportune times. BNPPI may terminate the credit agreement upon certain ratings downgrades of its corporate parent, which would result in the Fund’s entire loan balance becoming immediately due and payable. The occurrence of such ratings downgrades may necessitate the sale of portfolio securities at potentially inopportune times. The credit agreement also permits, subject to certain conditions, BNPPI 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 BNPPI on demand. If BNPPI fails to deliver the recalled security in a timely manner, the Fund is compensated by BNPPI for any fees or losses related to the failed delivery or, in the event a recalled security is not returned by BNPPI, the Fund, upon notice to BNPPI, may reduce the loan balance outstanding by the value of the recalled security failed to be returned. The Fund receives a portion of the fees earned by BNPPI in connection with the rehypothecation of portfolio securities.

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 held the following positions in shares of such companies at September 30, 2018:

                                          Change in Net                        
                                          Unrealized                        
    Shares     Market Value   Cost of   Proceeds   Realized   Appreciation   Dividend   Shares   Market Value
Affiliated Company   12/31/17     12/31/17   Purchases   from Sales   Gain (Loss)   (Depreciation)   Income   9/30/18   9/30/18
 
HG Holdings   912,235     $ 793,645     $ –     $ –     $ –     $ (346,650 )   $ –       912,235     $ 446,995  
Houston Wire & Cable   877,363       6,317,014       –       –       –       438,681       –       877,363       6,755,695  
          $ 7,110,659                     $ –     $ 92,031     $ –             $ 7,202,690  

Other information regarding the Fund is available in the Fund’s most recent Report to Stockholders. This information is available through The Royce Funds (www.roycefunds.com) and on the Securities and Exchange Commission’s website (www.sec.gov).

 

 

 
 

Item 2 - Controls and Procedures

(a) The Registrant’s principal executive and principal financial officers have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report (as required by Rule 30a-3(b) under the Investment Company Act of 1940 (the “Act”)), that the Registrant’s disclosure controls and procedures (as defined by Rule 30a-3(c) under the Act) are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-Q is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-Q is accumulated and communicated to the Registrant’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

 

(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) during the Registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the internal control over financial reporting.

 

Item 3 - Exhibits

Certifications pursuant to Rule 30a-2(a) under the Act are attached hereto.

 

SIGNATURES

 

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, Royce Value Trust, Inc.

Date: November 26, 2018

 

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.

 

By:

 

/s/ Christopher D. Clark

Christopher D. Clark

President, Royce Value Trust, Inc.

Date: November 26, 2018

 

By:

 

/s/ Peter K. Hoglund

Peter K. Hoglund

Treasurer, Royce Value Trust, Inc.

Date: November 26, 2018