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, Esq.
745 Fifth Avenue
New York, NY 10151

Registrant’s telephone number, including area code: (212) 508-4500
Date of fiscal year end: December 31, 2018
Date of reporting period: January 1, 2018 – June 30, 2018


Item 1.   Reports to Shareholders.

                  JUNE 30, 2018                       2018 Semiannual
    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, LP manages three closed-end funds: Royce Global Value Trust, which invests primarily in companies with headquarters outside of the United States, Royce Micro-Cap Trust, which invests primarily in micro-cap securities; and Royce Value Trust, which invests primarily in small-cap securities. 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, with significant investments 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 Micro-Cap Trust and Royce Value Trust distribute capital gains, if any, 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 54 and 55. For additional information on the Funds’ Distribution Reinvestment and Cash Purchase Options and the benefits for stockholders, please see page 56 or visit our website at www.roycefunds.com.

Managed Distribution Policy
The Board of Directors of each of Royce Micro-Cap Trust and Royce Value Trust has authorized a managed distribution policy (“MDP”). Under the MDP, Royce Micro-Cap Trust and Royce Value 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 2018 Semiannual Report to Stockholders
       
Table of Contents                       Semiannual Review               Letter to Our Stockholders   2           Performance   7                   Semiannual Report to Stockholders               Royce Global Value Trust              

Manager’s Discussion of Fund Performance

  8          

Schedule of Investments

  10          

Other Financial Statements

  14           Royce Micro-Cap Trust              

Manager’s Discussion of Fund Performance

  22          

Schedule of Investments

  24          

Other Financial Statements

  29           Royce Value Trust              

Manager’s Discussion of Fund Performance

  38          

Schedule of Investments

  40          

Other Financial Statements

  45           History Since Inception   54           Distribution Reinvestment and Cash Purchase Options   56           Directors and Officers   57           Notes to Performance and Other Important Information   58           Board Approval of Investment Advisory Agreements   59  



This page is not part of the 2018 Semiannual Report to Stockholders
       

Letter to Our Stockholders

SMALL-CAP’S FIRST HALF
Value Trails For Now
During the first six months of 2018, small-cap stocks enjoyed the good times bred by a bull market that at this writing has not yet slowed down. Although the first half began with higher volatility and stalled equities prices—and ended with a series of wild days that made the bullish second quarter feel more tumultuous than it was—the overall direction of U.S. markets has remained positive, particularly for smaller stocks. For the year-to-date period ended June 30, 2018, the small-cap Russell 2000 Index gained 7.7%, well ahead of both the large-cap Russell 1000 (+2.9%) and S&P 500 (+2.6%) Indexes, while making a new historical high on June 20. Returns were even higher for micro-cap stocks—the Russell Microcap Index advanced 10.7% for the same period.
    This mostly welcome absolute and relative performance took place against the backdrop of an accelerating U.S. economy, a strong job market, and, in many cases, sterling corporate profit growth while at the same time global economic progress slowed, most notably in China and other large emerging markets. The major non-U.S. indexes slipped deeper into negative territory during the first half, as the combination of slower international growth, rising emerging market instability, a stronger dollar, and heightened trade war worries led investors to prefer all things domestic. (In fact, 35 of the 45 non-U.S. small-cap markets that we follow had declines in the first half of 2018, though only 26 were negative when measured in local currencies.) Still, growth continued to skew positive outside the U.S., with the important economies of Japan and Germany continuing to look solid.


Equity Indexes Average Annual Total Return as of 6/30/18 (%)  
1 Not annualized.
Small-Cap is represented by Russell 2000; Small-Cap Value is represented by Russell 2000 Value, Small-Cap Growth is represented by Russell 2000 Growth, Large-Cap is represented by Russell 1000, Micro-Cap is represented by Russell Microcap. For details on The Royce Funds’ performance in the period, please turn to the Managers’ Discussions that begin on page 8. Past performance is no guarantee of future results.

2 | This page is not part of the 2018 Semiannual Report to Stockholders
       

LETTER TO OUR STOCKHOLDERS

We expect a leadership shift in the form of a reversion to the mean that would favor
small-cap value outperforming small-cap growth over the next five years.

    In this context, then, you would expect a small-cap specialist to be quite content, if not happy. This might especially be the case considering that small-caps—as well as micro-caps—have been true to their historical habit of outpacing larger companies through an economic expansion. Yet as much as we were pleased with first-half results, we find ourselves far from blissful. A closer look at small-cap performance in the first half reveals some genuine historical oddities in spite of all looking well on the surface. Our main concern is the disconnect between the confidence of the management teams we’ve been meeting with and the relatively underwhelming performance for many cyclical industries. We anticipated that stocks in these industries would do better owing to their recent earnings strength and ongoing prospects as well as to the healthy state of the U.S. economy (each, of course, being related to the other).   OBSTACLE ON THE TRACK The Troublesome 10-Year Treasury Yield Another related concern is the way in which the ongoing weakness of the 10-year Treasury yield is at odds with the quickened pace of U.S. economic growth—when the 10-year has been sluggish in the past, it’s often been seen as a symptom of economic weakness, and not without some justification. The fact that the economy has arguably been some distance down the track to normal for at least a couple of years remains a source of concern to us.
  Road to Normalization: Economy vs Markets     1 Quarterly data. Source: Bloomberg
    We invite you to consider the following five points: through the end of June, the U.S. economy had grown for 109 consecutive months, GDP growth has converged with its long-term average, unemployment reached an 18-year low in June, personal consumption expenditure inflation hit the Fed’s 2% target in May, and short rates were rising. Additionally, we’re also seeing the early signs of inflation. Most are registering in increased commodity, raw material, and other input costs, which is historically familiar economic territory. History also shows, however, that these developments are also typically coincident with rising interest rates. So far, though, the 10-year Treasury yield has stubbornly refused to acquiesce to history—making the 10-year the major obstacle on the path back to normal in our view.

    From our perspective as highly active, valuation-sensitive small-cap specialists, the most frustrating have been those periods when the 10-year yield has fallen back. It seems to us that nearly every time it has declined over the last 18 months, the market has witnessed a subsequent flight to high yield or growth stocks while value and economically sensitive issues struggled to keep pace. It almost seems as if investors became temporarily convinced that we had slipped back into the 2010-2015 era of quantitative easing and zero interest rates. We think it bears emphasizing that, for all its uncertainty, the current environment could not be more different. Yet the disconnect persisted into June.

    The critical question, then, is, what happens next? More pertinently for our investors, the question can be phrased in a more specific way as, are we likely to see a shift in small-cap style and sector leadership? We believe that we will. The second quarter saw an admittedly short-term sign when the Russell 2000 Value Index shook off five straight quarters of underperformance to outpace its small-cap growth counterpart, up 8.3% versus 7.2%. But exactly when, and under what conditions, a longer-running shift materializes remains to be seen, of course. To be sure, the kind of leadership change that we expect—from growth to value and from defensives to cyclicals—seldom occurs without a fair bit of volatility.

This page is not part of the 2018 Semiannual Report to Stockholders | 3
       
SMALL-CAP HIGHS
Returns, Valuations–and Risks
Putting the issue of market turbulence aside for a moment, the timing does seem apt to us for a change. First, the two-year cumulative return at the end of June for the Russell 2000 was 46.5%—which is a wonderful, but sadly not a sustainable, pace. Second, the one-, five-, and 10-year average annual total returns for the small-cap index for the period ended June 30, 2018 were all comfortably ahead of their long-term monthly rolling averages.
  Recent Small-Cap Returns Higher Than History
Russell 2000 through 6/30/18
 
When we look at the same information for the Russell 2000 Growth Index, the contrast is even more stark, with its latest five-year return significantly in excess of its historical rolling average. This is one important reason why we expect a leadership shift in the form of a reversion to the mean that would favor small-cap value outperforming small-cap growth over the next five years.

    The state of small-cap valuations also looks unsustainably high to us, particularly if we see a continued, and more consistent, rise in the 10-year yield. While the P/E ratio for the Russell 2000 did not look especially rich at the end of June, another valuation metric, the last twelve months enterprise value to earnings before interest and taxes (EV/EBIT)—which we use most frequently when examining companies—tells a different story, one that reveals higher-than-average historical valuations. The currently elevated state of returns and valuations could mean that we are entering a longish period of multiple compression, which is one reason why we prefer select small-caps with strong earnings prospects and/or modest valuations. If we see increased volatility over the balance of the year, these types of stocks look better positioned to cope with it effectively.

    Based on earnings and cash flow quality—as well as confident management teams—we are seeing superior fundamentals in selected cyclical areas that other investors are avoiding. For example, the supply/demand dynamics in a number of industries, such as semiconductors & semiconductor equipment, transportation, and chemicals, look favorable to us and do not appear to us to be fully reflected in their current valuations. Many cyclical companies appear much better positioned for intermediate-term growth than defensive and/or growth stocks. While most of these cyclical stocks have lagged the field over the last 18 months, they are also more reasonably priced than defensives based on EV to EBIT. We remain convinced that fundamentally strong small-cap companies, especially those with attractive-to-reasonable valuations, will become more appealing to investors as confidence in the U.S. economy continues to build.     Cyclicals Cheaper than Defensives
Median LTM EV/EBIT1 Ex. Negative EBIT
for Russell 2000 as of 6/30/18

    There’s a related point that may be equally important when considering valuations: The sheer size and diversity of the small-cap asset class means that there are almost always opportunities to find what we think are promising or quality businesses trading at attractive discounts. Based on EV/EBIT, the bottom three deciles of the Russell 2000 were trading at sizable discounts compared to the median for the index as a whole at the end of June.

  Many Small-Caps Sell at a Significant Discount
Bottom Three Deciles in Russell 2000 Median LTM EV/EBIT1
Ex. Negative EBIT as of 6/30/18


1 Last Twelve Months Enterprise Value/Earnings Before Interest and Taxes
4 | This page is not part of the 2018 Semiannual Report to Stockholders
 

LETTER TO OUR STOCKHOLDERS

VOLATILITY AND INTEREST RATES
Both On the Rise
During the first quarter, the Russell 2000 moved 1% or more in 33% of its trading days compared to 18% in all of 2017. Another volatility measure, the CBOE Russell 2000 Volatility Index (“RVX”), measures market expectations of near-term volatility conveyed by Russell 2000 stock index option prices. The RVX has averaged 24.0% per year since its inception on 1/2/04. Its average in 2017 was 15.9%, and its year-to-date average through the end of June 2018 was 17.5%. Eighteen months of lower volatility suggests—strongly to us—that increased volatility is likely.

    We also believe that the upward trend in rates is under way—and suspect that the 10-year yield will begin to move up more consistently over the next year. We see both rising rates and increased volatility as healthy. In fact, looking once more at history, we find that periods of rising rates have been favorable for small-cap stocks on both an absolute and relative basis. When the 10-Year Treasury yield was rising, the Russell 2000 outperformed the large-cap Russell 1000 in 70% of monthly rolling one-year periods for the 20-year period ended 6/30/18, with an average one-year return of 23.8% versus 19.2% for large-cap. Our expectations for absolute small-cap returns are more modest, though we do expect this historical relative return spread pattern to hold up.

  How Have Small-Caps Performed When Rates Were Rising?
Russell 2000 vs Russell 1000 Trailing Monthly Rolling 1-Year Returns When
10-Year Treasury Yield was Rising From 6/30/98 through 6/30/18
  10-Year Treasury Yield rose in 92 of 229 periods
    More specifically, we see rising rates as a phenomenon that should also be helpful to risk-conscious active managers in the small-cap space—primarily because it fosters an environment where better balance sheet companies are likely to be rewarded for their fiscal prudence. In other words, risk management matters. This is relevant today because of the increased leverage—specifically financial leverage—within the Russell 2000. And as rates continue to move up, the overall small-cap index looks increasingly risky. As active managers, we have the ability to screen and scrutinize small-cap businesses with better balance sheets and shy away from those that we see as having excess financial leverage. (It is worth mentioning that the market has largely ignored better balance sheet companies for much of the last 10 years.) Most of our strategies gravitate toward companies with low debt. We would rather focus on companies that have great operating leverage—but not financial leverage. With rising rates, inflation, and economic growth becoming established, the market seems to be transitioning into an environment that will favor similar qualities.   REASONS TO BE CHEERFUL We are therefore of two minds about the current cycle. On the one hand, we think that we could see some consolidation or a correction—the latter certainly seems more probable now than it did a year ago. Yet we remain optimistic about small-cap earnings growth and like the fundamentals of our holdings across our strategies in terms of balance sheets, cash flows, and earnings strength. It is in cyclical areas, including Industrials, the more cyclical precincts of technology, and Materials, and that we have most often uncovered what we judge to be the best combination of value, quality, and/or growth prospects. And this has always been a function of our bottom-up process rather than a top down view of the economy.


This page is not part of the 2018 Semiannual Report to Stockholders | 5
 

LETTER TO OUR STOCKHOLDERS

We see signs of progress that in our view place us squarely on the road to normalization, which was evident in the modest increases in bond yields and the reemergence of value’s leadership in 2018’s second quarter.

    This is why many of our portfolios have had perennially higher weightings in those sectors (and while others we manage have had high weightings in Financials and Consumer Discretionary). We also long ago developed the practice of leaning into those areas of the asset class where we see excess pessimism. Investments in industries that the rest of the market is abandoning have often borne fruit, though we have learned through decades of small-cap asset management that it usually requires a great deal of patience—measured in years in many cases—before the arrival of a bountiful harvest.

    We think it’s worth noting that the three changes in the market environment that we expect—lower returns, higher volatility, and

value/cyclical leadership—have all historically been coincident with leadership for active management. We see signs of progress that in our view place us squarely on the road to normalization, which was evident in the modest increases in bond yields and the reemergence of value’s leadership in 2018’s second quarter. There were other equally positive signs in July, including stabilizing macro indicators from outside the U.S., a welcome rebound in the performance of many industrial companies, and ongoing earnings strength for several cyclical areas. We expect to see more signs of normalizing markets to emerge as the year goes on.



Sincerely,
    Charles M. Royce   Christopher D. Clark        Francis D. Gannon Chairman,   Chief Executive Officer, and        Co-Chief Investment Officer, Royce & Associates, LP   Co-Chief Investment Officer,
Royce & Associates, LP
       Royce & Associates, LP           July 31, 2018        
6 | This page is not part of the 2018 Semiannual Report to Stockholders
 

Performance

    NAV Average Annual Total Returns
As of June 30, 2018 (%)

    YTD1   1-YR   3-YR   5-YR   10-YR   15-YR   20-YR   25-YR   30-YR   SINCE
INCEPTION
  INCEPTION
DATE
  Royce Global Value Trust   -0.88   11.89   9.69   N/A   N/A   N/A   N/A   N/A   N/A   6.48   10/17/13   Royce Micro-Cap Trust   7.84   19.79   11.16   12.51   9.92   10.76   9.81   N/A   N/A   11.19   12/14/93   Royce Value Trust   2.78   14.37   12.03   11.45   8.81   10.04   9.15   10.53   10.97   10.74   11/26/86     INDEX                                               Russell Global Small Cap Index   0.67   12.38   8.52   9.65   6.87   10.10   7.65   N/A   N/A   N/A   N/A   Russell Microcap Index   10.71   20.21   10.49   12.78   10.63   9.44   N/A   N/A   N/A   N/A   N/A   Russell 2000 Index   7.66   17.57   10.96   12.46   10.60   10.50   8.03   9.59   9.85   N/A   N/A  
1 Not annualized.

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 Value Trust at 6/30/18, for financial reporting purposes, and as a result 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, LLC (“RFS”) is a member of FINRA and files certain material 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 2018 Semiannual Report to Stockholders | 7


  MANAGERS’ DISCUSSION Royce Global Value Trust (RGT)
Chuck Royce
David Nadel
Chris Flynn
  FUND PERFORMANCE
Royce Global Value Trust was down 0.9% on a net asset value (“NAV”) basis and 2.8% on a market price basis for the year-to-date period ended June 30, 2018, in both cases underperforming its unleveraged benchmark, the Russell Global Small Cap Index, which rose 0.7% for the same period. While U.S. stocks generally did well, most international indexes slipped into negative territory during 2018’s first six months, as the combination of a modest slowdown in international growth, rising emerging market instability, a stronger dollar, and heightened trade war concerns all affected results.
WHAT WORKED... AND WHAT DIDN’T Six of the Fund’s 11 equity sectors detracted from first-half results. Led by Consumer Discretionary and Industrials, their respective negative impacts were somewhat modest. Vakrangee, which detracted most at the position level, is an Indian company that operates a network of outlets providing everyday transactional services to mostly rural consumers, primarily in under-served areas. During the first quarter, the company faced questions about corporate governance and its internal investment policy, among other issues. Although Vakrangee refuted these allegations, the cloud overhanging the firm’s credibility gave us pause, and we exited our position in April. Burkhalter Holding is the leading provider of electrical engineering services in Switzerland. Its stock price was hurt by increasing talk that competition would pressure pricing. Seeing these issues as more temporal than structural, we chose to hold our shares during the first half.
    The stock of California-based laser diode and equipment maker Coherent underwent a correction in the first half after the company’s announcement of slightly better-than-expected results came with a more muted profit outlook. Already reducing our position in 2017, we held our position in the first half in expectation of a recovery in its previously strong profitability. The U.K.’s Clarkson is the world’s largest ship broker. After a few difficult years, the company described an improving environment for its business in hiring ships to transport commodities in March. The firm then reversed course in April when it issued a profit warning, which sent its shares into a tailspin. Thinking about the long term, we added to our position in the first half.
    Energy was the top-contributing sector in the first half, and the top contributor at the industry level was energy equipment & services, as the rebound for oil prices fed through to improved prospects for these businesses. Norway’s TGS-NOPEC Geophysical, which provides geoscience data to oil and gas companies worldwide, was the top contributor in this industry and in the portfolio as a whole. Its revenue and earnings were boosted by improving exploration and production spending, higher oil prices, and the longer-term need for energy companies to replenish reserves, which is driving increased spending on seismic data. Virtu Financial uses its technology to act as a market maker and liquidity provider to the global financial markets. Based in New York City, the firm announced impressive first-quarter results in profits and earnings thanks to increased market volatility and high trading volumes. From the Industrials sector, Kirby Corporation has the largest inland and coastal tank barge fleet in the U.S. and also draws revenue from servicing and distributing industrial engines, transmissions, parts, and oil field services equipment. The tank barge markets seem to be recovering well, thanks to retirements of older barges, limited new builds, and solid utilization rates. Kirby has also benefited from two recent acquisitions over the last 18 months that are allowing it to drive industry consolidation.
    Relative to the Russell Global Small Cap, the major source of underperformance was ineffective stock selection in the Information Technology sector, most impactfully in the IT services and electronic equipment, instruments & components industries. Stock picking detracted in Health Care, particularly in the health care equipment & supplies group. Conversely, stock selection was a strength versus the benchmark in the Energy sector’s energy equipment & services industry, while a smaller advantage came from stock picks in Industrials, where the machinery group did best.

  Top Contributors to Performance
Year-to-Date Through 6/30/18 (%)1
                  TGS-NOPEC Geophysical   0.73           Virtu Financial Cl. A   0.47           Kirby Corporation   0.39           Bravura Solutions   0.33           Nanometrics   0.27           1 Includes dividends                
            Top Detractors from Performance
Year-to-Date Through 6/30/18 (%)2
                  Vakrangee   -0.31           Burkhalter Holding   -0.28           Coherent   -0.26           Clarkson   -0.24           ManpowerGroup   -0.23           2 Net of dividends                
CURRENT POSITIONING AND OUTLOOK The market’s recent behavior looks curious to us. We hear optimism and solid progress from the management teams we meet with, see solid earnings reports, and observe consistently strong macroeconomic data. On the other hand, small-cap market leadership in the U.S. has stubbornly remained with defensive and yield-oriented stocks, while cyclicals have lagged. In addition, the rate of change in global growth has slowed, as measured by global PMIs (the Purchasing Managers’ Index, an indicator of economic health for manufacturing and service sectors), while the effects of tariffs are just now registering—and are only likely to intensify before a resolution is reached. All of this raises the degree of difficulty for U.S. equities to maintain their recent performance pace and for non-U.S. stocks to rebound. We do believe, however, that the portfolio holds companies that are well positioned to execute effectively in a more challenging environment.
8 | 2018 Semiannual Report to Stockholders
 
PERFORMANCE AND PORTFOLIO REVIEW   SYMBOLS     MARKET PRICE RGT NAV XRGTX

Performance Average Annual Total Return (%) Through 6/30/18     JAN-JUN 20181   1-YR   3-YR   SINCE INCEPTION (10/17/13)   RGT (NAV)   -0.88   11.89   9.69   6.48   1 Not 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   10.5%   N/A   N/A   N/A   N/A   24.4%  

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 and, prior to 12/1/03, on the Nasdaq.



The Morningstar Style Map is the Morningstar Style Box™ with the center 75% of fund holdings plotted as the Morningstar Ownership Zone™. 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 66 for additional information.


Top 10 Positions     % of Net Assets           Kirby Corporation   2.1   FLIR Systems   2.1   TGS-NOPEC Geophysical   1.6   Virtu Financial Cl. A   1.5   Computer Modelling Group   1.4   VZ Holding   1.4   SEI Investments   1.3   Spirax-Sarco Engineering   1.3   Lazard Cl. A   1.2   Raven Industries   1.2  

Portfolio Sector Breakdown     % of Net Assets           Industrials   28.1   Information Technology   17.6   Financials   15.3   Health Care   8.8   Materials   8.8   Consumer Discretionary   6.7   Energy   5.3   Real Estate   2.6   Consumer Staples   2.4   Telecommunication Services   0.3   Utilities   0.1   Cash and Cash Equivalents, Net of Outstanding Line of Credit   4.0  

Calendar Year Total Returns (%)           YEAR   RGT   2017   31.1   2016   11.1   2015   -3.4   2014   -6.2  

Portfolio Country Breakdown1,2
% of Net Assets
            United States   27.5   United Kingdom   10.1   Canada   9.8   Japan   7.3   Australia   4.9   Switzerland   4.2   France   3.7   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   $129 million   Number of Holdings   260   Turnover Rate   23%   Net Asset Value   $12.37   Market Price   $10.51   Average Market Capitalization1   $1,855 million   Weighted Average P/E Ratio2,3   20.0x   Weighted Average P/B Ratio2   2.6x   Active Share4   97%  
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.
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.
The Fund’s P/E ratio calculation excludes companies with zero or negative earnings (7% of portfolio holdings as of 6/30/18).
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 mid-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 above, 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 2018.

2018 Semiannual Report to Stockholders | 9
 
Royce Global Value Trust
  Schedule of Investments                 Common Stocks – 96.0%                       SHARES       VALUE                       AUSTRALIA – 4.9%                

ALS

    140,000     $ 781,197  

†Ausdrill

    109,800       149,108  

†Bingo Industries

    60,700       120,388  

Bravura Solutions

    475,000       1,128,391  

Cochlear

    5,500       814,747  

Hansen Technologies

    335,000       780,938  

HT&E

    53,400       99,192  

Imdex 1

    83,800       76,590  

IPH

    365,000       1,202,026  

NetComm Wireless 1

    30,000       24,533  

Seeing Machines 1

    1,474,517       243,249  

Tassal Group

    23,000       70,297  

†Technology One

    285,000       896,386     Total (Cost $5,618,222)             6,387,042                       AUSTRIA – 0.8%                

Mayr-Melnhof Karton

    7,500       1,012,483     Total (Cost $893,160)             1,012,483                       BELGIUM – 0.4%                

†Radisson Hospitality 1

    180,000       577,777     Total (Cost $505,978)             577,777                       BRAZIL – 2.2%                

B3

    32,847       173,314  

Construtora Tenda 1

    20,000       122,763  

†CVC Brasil Operadora e Agencia de Viagens

    17,400       202,923  

Direcional Engenharia 1

    40,900       62,895  

Industrias Romi

    51,900       73,516  

International Meal Company Alimentacao

    25,000       51,152  

MRV Engenharia e Participacoes

    21,700       67,411  

OdontoPrev

    225,000       758,756  

T4F Entretenimento

    50,400       102,731  

†Tegma Gestao Logistica

    24,300       96,617  

TOTVS

    168,000       1,179,024     Total (Cost $3,265,772)             2,891,102                       CANADA – 9.8%                

Agnico Eagle Mines 2

    10,000       458,300  

Altus Group

    38,000       847,207  

Calfrac Well Services 1

    45,800       194,397  

Canaccord Genuity Group

    92,000       508,059  

†Canadian Western Bank

    4,600       121,241  

Computer Modelling Group

    234,000       1,797,741  

E-L Financial

    1,200       748,479  

FirstService Corporation

    10,300       783,212  

Franco-Nevada Corporation 2

    12,800       934,656  

Genworth MI Canada

    13,000       423,033  

Gluskin Sheff + Associates

    23,000       287,270  

Hudbay Minerals

    13,000       72,800  

Leucrotta Exploration 1

    41,900       62,468  

Magellan Aerospace

    14,000       171,027  

Major Drilling Group International 1

    201,300       1,062,657  

Morneau Shepell

    50,000       1,033,735  

North American Construction Group

    31,000       184,450  

Pan American Silver 2

    31,800       569,220  

†Parex Resources 1

    18,700       353,048  

Solium Capital 1

    66,000       577,842  

Sprott

    520,600       1,203,837  

†TORC Oil & Gas

    22,400       125,064  

Western Forest Products

    101,250       206,405     Total (Cost $12,322,145)             12,726,148                       CHILE – 0.1%                

SMU 1

    318,400       93,805     Total (Cost $85,780)             93,805                       CHINA – 1.4%                

†A-Living Services 1

    45,100       82,433  

China Communications Services

    303,600       192,323  

China Lesso Group Holdings

    150,100       95,276  

Chinasoft International

    130,900       102,109  

Fufeng Group

    275,100       123,777  

Hua Hong Semiconductor

    51,600       177,249  

TravelSky Technology

    300,000       873,738  

Xtep International Holdings

    180,100       123,271     Total (Cost $1,209,115)             1,770,176                       CYPRUS – 0.1%                

†TCS Group Holding GDR

    5,500       113,850     Total (Cost $114,206)             113,850                       DENMARK – 1.2%                

Chr. Hansen Holding

    5,500       508,108  

Coloplast Cl. B

    4,000       399,878  

DFDS

    4,000       255,425  

†Nilfisk Holding 1

    7,100       346,656     Total (Cost $1,091,309)             1,510,067                       EGYPT – 0.4%                

†Commercial International Bank (Egypt)

    23,800       112,548  

Egyptian Financial Group-Hermes

               

Holding Company 1

    235,100       303,304  

Oriental Weavers

    82,300       56,354     Total (Cost $494,574)             472,206                       FINLAND – 0.0%                

Ferratum

    1,300       24,594     Total (Cost $37,828)             24,594                       FRANCE – 3.7%                

†Albioma

    3,100       69,942  

Interparfums

    14,850       625,173  

Neurones

    26,339       738,208  

Rothschild & Co

    33,000       1,115,658  

†Sartorius Stedim Biotech

    9,000       940,663  

Synergie

    1,200       59,137  

Thermador Groupe

    19,000       1,273,603     Total (Cost $3,335,183)             4,822,384                       GEORGIA – 0.1%                

Bank of Georgia Group

    3,400       84,583  

†Georgia Capital 1

    3,400       46,217     Total (Cost $120,258)             130,800                       GERMANY – 2.7%                

Amadeus Fire

    8,000       864,172  

Carl Zeiss Meditec

    13,500       921,482  

CompuGroup Medical

    8,000       411,066  

FinTech Group 1

    500       15,736  
10 | 2018 Semiannual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
 
June 30, 2018 (unaudited)
  Schedule of Investments (continued)
    SHARES     VALUE                     GERMANY (continued)              

MorphoSys 1

  6,000     $ 735,714  

STRATEC Biomedical

  5,051       394,613  

VIB Vermoegen

  4,700       120,202     Total (Cost $2,145,542)           3,462,985                     GREECE 0.2%              

JUMBO

  4,700       77,500  

Sarantis

  5,800       50,122  

†Star Bulk Carriers 1

  8,000       102,880     Total (Cost $219,753)           230,502                     HONG KONG 1.3%              

HKBN

  150,000       230,958  

I.T

  378,400       270,093  

Pico Far East Holdings

  526,500       213,402  

Texhong Textile Group

  47,600       71,834  

Value Partners Group

  894,500       706,880  

Xinyi Glass Holdings

  159,800       195,330     Total (Cost $1,440,404)           1,688,497                     INDIA 2.0%              

†AIA Engineering

  45,000       985,186  

Borosil Glass Works

  5,800       78,092  

Dewan Housing Finance

  21,500       199,577  

†Jubilant Life Sciences

  16,300       166,890  

Manappuram Finance

  27,550       39,667  

Mphasis

  2,400       37,831  

†Phillips Carbon Black

  27,000       85,751  

Radico Khaitan

  24,000       144,669  

Redington India

  30,000       48,165  

SH Kelkar & Company

  200,000       656,790  

†Sterlite Technologies

  35,000       140,506     Total (Cost $2,836,758)           2,583,124                     INDONESIA 0.4%              

Selamat Sempurna

  5,500,000       502,791     Total (Cost $501,555)           502,791                     IRELAND 0.6%              

†C&C Group

  32,300       122,212  

Irish Residential Properties REIT

  62,500       100,723  

Keywords Studios

  25,000       588,609     Total (Cost $272,181)           811,544                     ISRAEL 0.1%              

Nova Measuring Instruments 1,2

  6,700       182,575     Total (Cost $126,148)           182,575                     ITALY 0.8%              

Anima Holding

  7,400       39,804  

DiaSorin

  7,500       855,706  

Openjobmetis 1

  15,900       178,624     Total (Cost $583,764)           1,074,134                     JAPAN 7.3%              

Ai Holdings

  20,000       433,907  

As One

  15,000       1,041,864  

EPS Holdings

  34,600       742,534  

Financial Products Group

  10,000       129,070  

†Fujitec Company

  46,000       567,132  

Kyowa Exeo

  7,000       183,923  

Leopalace21

  11,500       63,049  

Mandom Corporation

  1,200       37,393  

Meitec Corporation

  25,750       1,237,321  

Nitto Kohki

  2,900       67,946  

NS Solutions

  7,000       176,589  

NSD

  32,600       743,191  

Open House

  2,050       121,465  

Pressance

  6,150       95,098  

Relo Group

  40,000       1,056,406  

Sun Frontier Fudousan

  3,650       43,220  

TATERU

  4,400       72,688  

†TKC Corporation

  23,000       857,969  

Tokai Corporation

  4,300       92,707  

Trancom

  1,400       96,229  

USS

  67,500       1,285,192  

Yumeshin Holdings

  6,950       72,880  

Zenkoku Hosho

  6,100       277,135     Total (Cost $7,684,846)           9,494,908                     MALAYSIA 0.2%              

Kossan Rubber Industries

  98,100       204,967     Total (Cost $202,847)           204,967                     MEXICO 0.5%              

Becle

  200,000       288,214  

Bolsa Mexicana de Valores

  250,000       420,815     Total (Cost $789,517)           709,029                     NETHERLANDS 1.0%              

AMG Advanced Metallurgical Group

  3,500       197,008  

DP Eurasia 1

  119,700       250,231  

†Intertrust

  50,000       888,696     Total (Cost $1,433,730)           1,335,935                     NEW ZEALAND 1.5%              

Fisher & Paykel Healthcare

  102,875       1,037,494  

Trade Me Group

  300,000       946,865     Total (Cost $1,542,076)           1,984,359                     NORWAY 1.8%              

Kongsberg Automotive 1

  130,000       149,404  

†Leroy Seafood Group

  12,300       82,883  

Protector Forsikring 1

  8,950       72,968  

TGS-NOPEC Geophysical

  55,000       2,025,944     Total (Cost $1,336,546)           2,331,199                     PERU 0.1%              

Ferreycorp

  93,200       66,693     Total (Cost $56,092)           66,693                     PHILIPPINES 0.1%              

Pryce Corporation

  489,100       54,530  

Robinsons Retail Holdings

  69,200       103,085     Total (Cost $184,559)           157,615                     POLAND 0.2%              

Warsaw Stock Exchange

  33,000       322,454     Total (Cost $459,764)           322,454    
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2018 Semiannual Report to Stockholders | 11
 
Royce Global Value Trust
  Schedule of Investments (continued)                     SHARES     VALUE       PORTUGAL 0.3%              

Sonae

  313,400     $ 376,968     Total (Cost $421,495)           376,968                     RUSSIA 0.5%              

Globaltrans Investment GDR

  61,600       628,320     Total (Cost $408,649)           628,320                     SINGAPORE 1.2%              

CSE Global

  591,850       186,786  

†Midas Holdings 1,3

  400,000       42,275  

Sheng Siong Group

  141,800       110,318  

XP Power

  24,000       1,118,093  

Yanlord Land Group

  134,300       156,724     Total (Cost $1,071,962)           1,614,196                     SOUTH AFRICA 0.7%              

Coronation Fund Managers

  59,000       250,796  

JSE

  15,000       177,266  

Nampak 1

  35,800       40,922  

PSG Group

  25,000       394,022     Total (Cost $1,039,463)           863,006                     SOUTH KOREA 1.1%              

†Amorepacific Corporation

  700       202,557  

†Com2uS

  600       90,444  

Eugene Technology

  6,600       93,271  

†Innocean Worldwide

  5,700       303,795  

Interojo

  2,800       87,053  

KIWOOM Securities

  700       68,147  

Koh Young Technology

  1,200       109,825  

Modetour Network

  7,400       180,601  

†S-1 Corporation

  2,600       225,823     Total (Cost $1,417,075)           1,361,516                     SPAIN 0.3%              

Atento 2

  65,400       447,990     Total (Cost $622,537)           447,990                     SRI LANKA 0.2%              

National Development Bank

  187,179       145,321  

†Sampath Bank 1

  28,368       54,299  

Sunshine Holdings

  154,025       51,568     Total (Cost $270,465)           251,188                     SWEDEN 2.7%              

Addtech Cl. B

  18,960       419,557  

Bravida Holding

  120,000       953,248  

Dustin Group

  7,650       68,926  

†Green Landscaping Holding 1

  40,000       115,220  

Hexpol

  110,000       1,144,612  

Knowit

  7,000       134,736  

†Lagercrantz Group

  60,000       653,809     Total (Cost $2,910,627)           3,490,108                     SWITZERLAND 4.2%              

Burkhalter Holding

  10,000       847,218  

Forbo Holding

  110       164,617  

†Kardex

  4,300       596,607  

LEM Holding

  500       747,248  

Partners Group Holding

  1,800       1,322,327  

VZ Holding

  5,600       1,764,314     Total (Cost $4,333,284)           5,442,331                     TAIWAN 0.3%              

Gourmet Master

  12,177       117,822  

Sitronix Technology

  46,200       178,051  

TCI

  6,185       95,548     Total (Cost $271,223)           391,421                     THAILAND 0.2%              

Beauty Community

  205,600       75,712  

Erawan Group (The)

  377,300       71,747  

Plan B Media

  300,000       55,237     Total (Cost $246,746)           202,696                     TURKEY 0.1%              

Tat Gida Sanayi

  72,350       68,824     Total (Cost $130,798)           68,824                     UKRAINE 0.3%              

†MHP GDR

  30,000       399,000     Total (Cost $411,612)           399,000                     UNITED ARAB EMIRATES0.1%              

ADES International Holding 1

  8,100       103,275     Total (Cost $107,934)           103,275                     UNITED KINGDOM 10.1%              

Abcam

  28,000       492,953  

Ashmore Group

  279,000       1,373,425  

Biffa

  111,400       366,080  

Clarkson

  40,600       1,232,383  

Consort Medical

  57,500       904,557  

Conviviality 1,3

  61,200       0  

Diploma

  28,500       493,105  

dotdigital group

  142,200       140,751  

Elementis

  200,000       667,266  

Equiniti Group

  331,000       1,078,988  

Ferroglobe

  41,100       352,227  

Ferroglobe (Warranty Insurance Trust)1,3

  41,100       0  

†Go-Ahead Group

  4,200       88,022  

Hilton Food Group

  16,100       211,205  

†Huntsworth

  151,800       241,407  

ITE Group

  380,341       401,564  

†ITE Group (Rights) 1

  665,596       209,943  

Jupiter Fund Management

  36,000       211,899  

Polypipe Group

  95,000       482,699  

Restore

  58,500       398,380  

RPC Group

  23,000       227,111  

SIG

  100,000       184,369  

Spirax-Sarco Engineering

  19,000       1,634,907  

Staffline Group

  8,400       103,875  

Stallergenes Greer 1

  10,800       387,196  

Victrex

  22,500       865,294  

†WANdisco 1

  8,000       117,722  

Xaar

  53,591       169,391     Total (Cost $12,593,083)           13,036,719                     UNITED STATES 27.5%              

Air Lease Cl. A

  36,460       1,530,226  
12 | 2018 Semiannual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
 
June 30, 2018 (unaudited)
  Schedule of Investments (continued)
    SHARES     VALUE                     UNITED STATES (continued)              

Brooks Automation 2

  18,100     $ 590,422  

CIRCOR International 1

  32,200       1,190,112  

Cognex Corporation

  10,748       479,468  

Coherent 1

  3,000       469,260  

†comScore 1

  24,000       523,200  

Diebold Nixdorf 2

  28,800       344,160  

Diodes 1

  20,500       706,635  

Dorian LPG 1

  4,475       34,189  

EnerSys 2

  11,000       821,040  

Expeditors International of Washington 2

  13,300       972,230  

FLIR Systems 2

  51,500       2,676,455  

Innospec 2,4

  12,457       953,583  

Kadant

  7,800       749,970  

KBR 2

  58,700       1,051,904  

Kirby Corporation 1,2,4

  32,900       2,750,440  

Lazard Cl. A

  32,600       1,594,466  

Lindsay Corporation

  13,700       1,328,763  

Littelfuse

  4,000       912,720  

ManpowerGroup

  8,800       757,328  

MBIA 1,2,4

  80,300       725,912  

Nanometrics 1,2,4

  35,600       1,260,596  

National Instruments 2,4

  15,200       638,096  

Popular

  13,100       592,251  

Quaker Chemical 2

  6,069       939,906  

Raven Industries

  40,000       1,538,000  

Rogers Corporation 1,2,4

  4,800       535,008  

SEACOR Holdings 1

  20,200       1,156,854  

SEACOR Marine Holdings 1

  20,309       468,935  

SEI Investments 2

  27,600       1,725,552  

Signet Jewelers

  5,500       306,625  

Standard Motor Products

  11,200       541,408  

Sun Hydraulics 2

  15,139       729,549  

Tennant Company 2

  11,600       916,400  

Valmont Industries

  5,400       814,050  

Virtu Financial Cl. A 2

  74,300       1,972,665  

World Fuel Services

  12,000       244,920     Total (Cost $26,504,302)           35,543,298                     URUGUAY 0.3%              

Arcos Dorados Holdings Cl. A

  46,800       325,260     Total (Cost $351,426)           325,260     TOTAL COMMON STOCKS                 (Cost $104,022,293)         $ 124,221,861                     REPURCHASE AGREEMENT 10.2%               Fixed Income Clearing Corporation, 0.35% dated 6/29/18, due 7/2/18, maturity value
$13,162,384 (collateralized by obligations of various U.S. Government Agencies, 1.375%
due 10/07/21, valued at $13,428,459)
  (Cost $13,162,000)           13,162,000                     TOTAL INVESTMENTS 106.2%                 (Cost $117,184,293)           137,383,861                     LIABILITIES LESS CASH AND OTHER ASSETS (6.2)%           (7,996,878 )                                 NET ASSETS 100.0%         $ 129,386,983    
New additions in 2018. 1 Non-income producing. 2
All or a portion of these securities were pledged as collateral in connection with the Fund’s revolving credit agreement at June 30, 2018. Total market value of pledged securities at June 30, 2018, was $14,875,097.
3
Securities for which market quotations are not readily available represent 0.0% 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. See Notes to Financial Statements.
4
At June 30, 2018, a portion of these securities were rehypothecated in connection with the Fund’s revolving credit agreement in the aggregate amount of $5,000,988.
     
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 June 30, 2018, market value.
     
TAX INFORMATION: The cost of total investments for Federal income tax purposes was $117,231,433. At June 30, 2018, net unrealized appreciation for all securities was $ 20,152,428 consisting of aggregate gross unrealized appreciation of $27,931,533 and aggregate gross unrealized depreciation of $7,779,105. The primary cause of the difference between book and tax basis cost is the timing of the recognition of losses on securities sold.

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2018 Semiannual Report to Stockholders | 13
 
Royce Global Value Trust   June 30, 2018 (unaudited)
  Statement of Assets and Liabilities                   ASSETS:         Investments at value   $ 124,221,861     Repurchase agreements (at cost and value)     13,162,000     Cash and foreign currency     27,900     Receivable for investments sold     2,202,571     Receivable for dividends and interest     294,102     Prepaid expenses and other assets     31,792     Total Assets     139,940,226     LIABILITIES:         Revolving credit agreement     8,000,000     Payable for investments purchased     2,377,338     Payable for investment advisory fee     136,299     Payable for directors’ fees     9,151     Payable for interest expense     2,192     Accrued expenses     28,054     Deferred capital gains tax     209     Total Liabilities     10,553,243     Net Assets   $ 129,386,983     ANALYSIS OF NET ASSETS:         Paid-in capital - $0.001 par value per share; 10,461,711 shares outstanding (150,000,000 shares authorized)   $ 117,980,744     Undistributed net investment income (loss)     (787,401 )   Accumulated net realized gain (loss) on investments and foreign currency     (7,999,866 )   Net unrealized appreciation (depreciation) on investments and foreign currency     20,193,506     Net Assets (net asset value per share - $12.37)   $ 129,386,983     Investments at identified cost   $ 104,022,293    
14 | 2018 Semiannual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
 
Royce Global Value Trust
  Statement of Changes in Net Assets                                       SIX MONTHS ENDED             6/30/18             (UNAUDITED)   YEAR ENDED 12/31/17                     INVESTMENT OPERATIONS:                 Net investment income (loss)   $ 411,907     $ 241,105     Net realized gain (loss) on investments and foreign currency     5,981,008       6,555,345     Net change in unrealized appreciation (depreciation) on investments and foreign currency     (7,532,114 )     24,156,512     Net increase (decrease) in net assets from investment operations     (1,139,199 )     30,952,962     DISTRIBUTIONS:                 Net investment income           (1,145,697 )   Net realized gain on investments and foreign currency               Total distributions           (1,145,697 )   CAPITAL STOCK TRANSACTIONS:                 Reinvestment of distributions           491,130     Total capital stock transactions           491,130     Net Increase (Decrease) In Net Assets     (1,139,199 )     30,298,395     NET ASSETS:                   Beginning of period     130,526,182       100,227,787     End of period (including undistributed net investment income (loss) of $(787,401) at 6/30/18 and $(1,199,309) at 12/31/17)   $ 129,386,983     $ 130,526,182    
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2018 Semiannual Report to Stockholders | 15
 
Royce Global Value Trust   Six Months Ended June 30, 2018 (unaudited)
  Statement of Operations                   INVESTMENT INCOME:         INCOME:         Dividends   $ 1,627,362     Foreign withholding tax     (125,280 )   Interest     14,440     Rehypothecation income     9,719     Total income     1,526,241     EXPENSES:           Investment advisory fees     824,678     Interest expense     124,069     Custody and transfer agent fees     65,355     Stockholder reports     30,650     Professional fees     25,118     Administrative and office facilities     16,778     Directors’ fees     15,562     Other expenses     12,142     Total expenses     1,114,352     Compensating balance credits     (18 )   Net expenses     1,114,334     Net investment income (loss)     411,907     REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY:         NET REALIZED GAIN (LOSS):           Investments     6,005,916     Foreign currency transactions     (24,908 )   NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION):           Investments and foreign currency translations     (7,682,352 )   Other assets and liabilities denominated in foreign currency     150,238     Net realized and unrealized gain (loss) on investments and foreign currency     (1,551,106 )   NET INCREASE (DECREASE) IN NET ASSETS FROM INVESTMENT OPERATIONS   $ (1,139,199 )  
16 | 2018 Semiannual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
 
Royce Global Value Trust   Six Months Ended June 30, 2018 (unaudited)
  Statement of Cash Flows                   CASH FLOWS FROM OPERATING ACTIVITIES:         Net increase (decrease) in net assets from investment operations   $ (1,139,199 )   Adjustments to reconcile net increase (decrease) in net assets from investment operations to net cash provided by operating activities:          

Purchases of long-term investments

    (27,799,230 )  

Proceeds from sales and maturities of long-term investments

    31,384,318    

Net purchases, sales and maturities of short-term investments

    (3,831,000 )  

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

    (81,103 )  

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

    (207,827 )  

Net change in unrealized appreciation (depreciation) on investments

    7,682,352    

Net realized gain (loss) on investments and foreign currency

    (5,981,008 )   Net cash provided by operating activities     27,303     CASH FLOWS FROM FINANCING ACTIVITIES:         Distributions         Reinvestment of distributions         Net cash used for financing activities         INCREASE (DECREASE) IN CASH:     27,303     Cash and foreign currency at beginning of period     597     Cash and foreign currency at end of period   $ 27,900    
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2018 Semiannual Report to Stockholders | 17
 
Royce Global Value Trust
  Financial Highlights
This table is presented to show selected data for a share outstanding throughout each year or other indicated period, and to assist stockholders in evaluating the Fund’s performance for the periods presented.

    SIX MONTHS   YEARS ENDED                                   ENDED 6/30/18                                   PERIOD ENDED     (UNAUDITED)   12/31/17   12/31/16   12/31/15   12/31/14   12/31/13 1   Net Asset Value, Beginning of Period   $ 12.48     $ 9.62     $ 8.81     $ 9.25     $ 10.05     $ 9.78     INVESTMENT OPERATIONS:                                                 Net investment income (loss)     0.04       0.02       0.06       0.10       0.13       (0.00 )   Net realized and unrealized gain (loss) on investments and foreign currency     (0.15 )     2.96       0.90       (0.43 )     (0.77 )     0.27     Net increase (decrease) in net assets from investment operations     (0.11 )     2.98       0.96       (0.33 )     (0.64 )     0.27     DISTRIBUTIONS:                                                 Net investment income           (0.11 )     (0.14 )     (0.10 )     (0.15 )         Net realized gain on investments and foreign currency                                       Total distributions           (0.11 )     (0.14 )     (0.10 )     (0.15 )         CAPITAL STOCK TRANSACTIONS:                                                 Effect of reinvestment of distributions by Common Stockholders           (0.01 )     (0.01 )     (0.01 )     (0.01 )         Total capital stock transactions           (0.01 )     (0.01 )     (0.01 )     (0.01 )         Net Asset Value, End of Period   $ 12.37     $ 12.48     $ 9.62     $ 8.81     $ 9.25     $ 10.05     Market Value, End of Period   $ 10.51     $ 10.81     $ 8.04     $ 7.45     $ 8.04     $ 8.89     TOTAL RETURN: 2                                                 Net Asset Value     (0.88 )%3     31.07 %     11.12 %     (3.44 )%     (6.23 )%     2.76 %3   Market Value     (2.81 )%3     35.96 %     9.77 %     (6.06 )%     (7.86 )%     (0.95 )%3   RATIOS BASED ON AVERAGE NET ASSETS:                                                 Investment advisory fee expense     1.25 %4     1.25 %     1.25 %     1.25 %     1.25 %     1.25 %4   Other operating expenses     0.44 %4     0.42 %     0.46 %     0.43 %     0.24 %     0.37 %4   Total expenses (net)     1.69 %4     1.67 %     1.71 %     1.68 %     1.49 %     1.62 %4   Expenses excluding interest expense     1.50 %4     1.52 %     1.57 %     1.58 %     1.49 %     1.62 %4   Expenses prior to balance credits     1.69 %4     1.67 %     1.71 %     1.68 %     1.49 %     1.62 %4   Net investment income (loss)     0.62 %4     0.21 %     0.69 %     1.03 %     1.30 %     (0.13 )%4   SUPPLEMENTAL DATA:                                                 Net Assets, End of Period (in thousands)   $ 129,387     $ 130,526     $ 100,228     $ 91,174     $ 95,285     $ 102,684     Portfolio Turnover Rate     23 %     34 %     59 %     65 %     43 %     7 %   REVOLVING CREDIT AGREEMENT:                                                 Asset coverage     1717 %     1732 %     1353 %     1240 %                   Asset coverage per $1,000     17,173       17,316       13,528       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
18 | 2018 Semiannual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
 
Royce Global Value Trust   Notes to Financial Statements (unaudited)
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 June 30, 2018. 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     $124,179,586       $–       $42,275       $124,221,861   Cash Equivalents           13,162,000             13,162,000  

    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 six months ended June 30, 2018, securities valued at $59,393,938 were transferred from Level 2 to Level 1 within the fair value hierarchy.


2018 Semiannual Report to Stockholders | 19
 
Royce Global Value Trust   Notes to Financial Statements (unaudited) (continued)

VALUATION OF INVESTMENTS (continued):

Level 3 Reconciliation:

      BALANCE AS OF 12/31/17     PURCHASES     SALES     REALIZED GAIN (LOSS)     UNREALIZED GAIN (LOSS)1       BALANCE AS OF 6/30/18   Common Stocks     $0     $126,098     $84,433     $8,774     $(8,164)       $42,275   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 June 30, 2018 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.


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 gains in 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. Premiums 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 (“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.


20 | 2018 Semiannual Report to Stockholders
 
Royce Global Value Trust   Notes to Financial Statements (unaudited) (continued)
Capital Stock:

    The Fund issued 46,290 shares of Common Stock as reinvestment of distributions for the year ended December 31, 2017.


Borrowings:

    The Fund is party to a revolving credit agreement (the credit agreement) with BNP Paribas Prime Brokerage International, Limited (BNPPI). 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.

    As of June 30, 2018, the Fund has outstanding borrowings of $8,000,000. During the six months ended June 30, 2018, the Fund borrowed an average daily balance of $8,000,000 at a weighted average borrowing cost of 3.08%. The maximum amount outstanding during the six months ended June 30, 2018 was $8,000,000. As of June 30, 2018, the aggregate value of rehypothecated securities was $5,000,988. During the six months ended June 30, 2018, the Fund earned $9,719 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 six months ended June 30, 2018, the Fund expensed Royce investment advisory fees totaling $824,678.


Purchases and Sales of Investment Securities:

    For the six months ended June 30, 2018, the costs of purchases and proceeds from sales of investment securities, other than short-term securities, amounted to $29,931,891 and $33,031,431, 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 Royce 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 six months ended June 30, 2018, were as follows:


COST OF PURCHASES     PROCEEDS FROM SALES     REALIZED GAIN (LOSS)   $–     $425,880     $(22,161)  
2018 Semiannual Report to Stockholders | 21
 
    MANAGERS’ DISCUSSION Royce Micro-Cap Trust (RMT)    
Chuck Royce
Jim Harvey
Chris Flynn

FUND PERFORMANCE
A strong absolute performance helped Royce Micro-Cap Trust (“RMT”) to further solidify advantages over both of its unleveraged benchmarks, the small-cap Russell 2000 and Russell Microcap Indexes. RMT beat the Russell 2000 on both a net asset value (“NAV”) and market price basis for the one-, three-, five-, 15-, 20-year, and since inception (12/14/93) periods ended June 30, 2018. It also outpaced the micro-cap index on both an NAV and market price basis for the three- and 15-year periods ended June 30, 2018. (Data for the Russell Microcap Index goes back only to 6/30/00). The Fund advanced 7.8% on an NAV basis and 9.7% based on market price for the year-to-date period ended June 30, 2018, outpacing the Russell 2000, which was up 7.7%, but behind the 10.7% gain for the Russell Microcap for the same period.   WHAT WORKED... AND WHAT DIDN’T Though the market’s preference for higher growth and more yield-sensitive equities created challenges for our approach, this was balanced by the overall strength of micro-cap stocks, which were the best-performing U.S. asset class in the first half of the year, along with select stock selection advantages.
    Seven of the portfolio’s 11 equity sectors made positive contributions to performance, with Information Technology and Health Care making outsized impacts, followed by Energy. Three sectors detracted from first-half results—Materials, Industrials, and Consumer Staples—though their collective negative impact was modest. This was paralleled somewhat at the industry level, where two groups dominated the positive contributors—electronic equipment, instruments & components (Information Technology) and health care equipment & supplies (Health Care)—and the impact of detractors, led by machinery (Industrials) and pharmaceuticals (Health Care), was far more modest.
    The portfolio’s top contributor at the position level, Mesa Laboratories, is in the electronic equipment, instruments & components group, though it does most of its business with hospitals, pharmaceutical and medical device manufacturers, and research laboratories by offering quality control and calibration products and services. The company reported record revenues for its fiscal fourth quarter and 2018, driven in part by strong results in each of its four divisions and greater efficiencies from the firm’s proprietary operating system that helped it to better manage inventories and speed up deliveries. Three healthcare companies were also among RMT’s top contributors in the first half, including medical device company Surmodics, which specializes in coronary stents and catheters. The firm recently engaged in an agreement with Abbot Laboratories that granted exclusive global commercialization rights for the company’s SurVeil drug. Although we trimmed our position slightly in early July, its extended pipeline of interesting products made us happy to hold a sizable position at the end of June.
    Collectors Universe, which provides authentication and grading services to dealers and collectors of coins, trading cards, event tickets, autographs, and historical and sports memorabilia, detracted most at the position level. The company’s fiscal second quarter was slower than was expected, as softness in coin submissions in China, weakness in the vintage coin market, and a decline in modern coin sales at the U.S. Mint all combined to adversely affect results. Shares of Sun Hydraulics, which makes hydraulic and electronic valves, controls, and instruments for industrial machinery and off-highway vehicles, saw its share price tumble. Despite robust sales growth, the company’s margins and earnings have been weaker than expected due to operating inefficiencies incurred by a ramp up to meet strong demand, as well as higher materials and commodity costs. We expect a reversal as the impact of management’s corrective actions—which include price increases, new supply agreements to ease constraints, and reduced temporary and overtime labor—to take effect.
    Relative to the Russell 2000, the Fund’s biggest advantage came from savvy stock selection in the Energy sector’s energy equipment & services industry, while stock picking was also a strength in the real estate management & development group. A combination of superior stock selection and our overweight gave us an additional, though slighter, edge in Information Technology. Conversely, relative results were hurt by a mix of larger exposure and stock selection miscues in Industrials. Stock picking was an issue in the Materials sector, primarily in the metals & mining group, while the portfolio’s cash position also detracted from first-half performance.

  Top Contributors to Performance
Year-to-Date Through 6/30/18 (%)1             Mesa Laboratories   0.81   Surmodics   0.76   Zafgen   0.64   Mirati Therapeutics   0.55   SEACOR Marine Holdings   0.54   1 Includes dividends    
  Top Detractors from Performance
Year-to-Date Through 6/30/18 (%)2             Collectors Universe   -0.35   Sun Hydraulics   -0.27   Aquinox Pharmaceuticals   -0.26   Real Matters   -0.22   U.S. Global Investors Cl. A   -0.21   2 Net of dividends
CURRENT POSITIONING AND OUTLOOK The market’s recent behavior looks curious to us. We hear optimism and solid progress from the management teams we meet with, see solid earnings reports, and observe consistently strong macroeconomic data. Yet small- and micro-cap market leadership has stubbornly remained with defensive and yield-oriented stocks, while cyclicals have lagged. We are therefore far from ebullient, as we anticipate that increased volatility will accompany a shift in market leadership to value/cyclical leadership. We are also mindful that these shifts rarely occur without some turbulence, so we have sought to position the portfolio for increased volatility and lower returns.
22  |  2018 Semiannual Report to Stockholders  
 
PERFORMANCE AND PORTFOLIO REVIEW SYMBOLS    MARKET PRICE RMT NAV XOTCX

Performance                                 Average Annual Total Return (%) Through 6/30/18                             JAN-JUN 20181   1-YR   3-YR   5-YR   10-YR   15-YR   20-YR   SINCE INCEPTION (12/14/93)   RMT (NAV)   7.84   19.79   11.16   12.51   9.92   10.76   9.81   11.19   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   24.6%   84.9%   155.6%   360.7%   578.6%   1103.3%  


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 Box™ with the center 75% of fund holdings plotted as the Morningstar Ownership Zone™. 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 66 for additional information.


Top 10 Positions     % of Net Assets           Mesa Laboratories   2.2   Surmodics   1.6   nLIGHT   1.1   FRP Holdings   1.1   Major Drilling Group International   1.1   Kadant   1.1   Zafgen   1.1   SEACOR Marine Holdings   1.1   Heritage-Crystal Clean   1.0   Social Capital Hedosophia Holdings   1.0  

Portfolio Sector Breakdown     % of Net Assets           Information Technology   20.7   Industrials   20.2   Financials   13.9   Health Care   13.4   Consumer Discretionary   11.7   Energy   8.7   Materials   5.3   Real Estate   3.5   Consumer Staples   2.6   Utilities   0.4   Telecommunication Services   0.2   Preferred Stock   0.4   Outstanding Line of Credit, Net of Cash and Cash Equivalents   -1.0  

Calendar Year Total Returns (%)         YEAR   RMT   2017   17.7   2016   22.0   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  

Portfolio Diagnostics           Fund Net Assets   $433 million   Number of Holdings   351   Turnover Rate   10%   Net Asset Value   $10.90   Market Price   $9.99   Net Leverage1   1.1%   Average Market Capitalization2   $511 million   Weighted Average P/B Ratio3   2.1x   Active Share4   94%   U.S. Investments (% of Net Assets)   83.2%   Non-U.S. Investments (% of Net Assets)   17.8%     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 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 above, 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 2018.

    2018 Semiannual Report to Stockholders |  23
 
Royce Micro-Cap Trust
  Schedule of Investments             Common Stocks – 100.6%                 SHARES     VALUE                 CONSUMER DISCRETIONARY 11.7%             AUTO COMPONENTS - 1.3%            

Fox Factory Holding 1

  5,300     $ 246,715

Motorcar Parts of America 1

  54,800       1,025,308

Sebang Global Battery

  50,500       1,434,119

Standard Motor Products

  50,860       2,458,572

Stoneridge 1

  7,500       263,550

Unique Fabricating

  12,200       106,628                         5,534,892             DISTRIBUTORS - 0.6%            

Uni-Select

  33,800       537,602

Weyco Group

  54,300       1,976,520                         2,514,122             DIVERSIFIED CONSUMER SERVICES - 1.1%            

Aspen Group 1

  141,520       1,057,154

Collectors Universe 2,3

  108,200       1,594,868

Liberty Tax Cl. A

  142,900       1,153,918

Universal Technical Institute 1

  270,000       850,500                         4,656,440             HOTELS, RESTAURANTS & LEISURE - 1.6%            

Century Casinos 1

  222,500       1,946,875

Del Taco Restaurants 1

  8,200       116,276

Lindblad Expeditions Holdings 1

  254,000       3,365,500

Lindblad Expeditions Holdings (Warrants) 1

  18,100       49,775

Red Lion Hotels 1

  115,500       1,345,575                         6,824,001             HOUSEHOLD DURABLES - 2.5%            

AV Homes 1

  6,500       139,100

Cavco Industries 1,2,3

  20,241       4,203,044

Ethan Allen Interiors 2

  18,100       443,450

Flexsteel Industries 2

  16,100       642,390

Lifetime Brands 2

  119,294       1,509,069

PICO Holdings 2,3

  121,200       1,411,980

Skyline Champion

  63,700       2,232,048

Universal Electronics 1

  6,100       201,605

ZAGG 1

  3,700       64,010                         10,846,696             INTERNET & DIRECT MARKETING RETAIL - 0.8%            

FTD Companies 1

  67,200       311,808

Gaia Cl. A 1,2,3

  125,000       2,531,250

Yatra Online 1

  105,000       562,800                         3,405,858             LEISURE PRODUCTS - 0.7%            

Clarus Corporation 1

  174,926       1,443,139

Nautilus 1

  118,500       1,860,450                         3,303,589             MEDIA - 0.8%            

†Chicken Soup For The Soul Entertainment 1

  150,000       1,437,000

McClatchy Company (The) Cl. A 1

  69,313       689,664

New Media Investment Group

  66,200       1,223,376                         3,350,040             MULTILINE RETAIL - 0.0%            

Tuesday Morning 1,2,3

  36,700       111,935             SPECIALTY RETAIL - 1.3%            

AutoCanada

  115,200       1,490,550

Barnes & Noble Education 1

  80,000       451,200

Destination Maternity 1

  212,000       1,233,840

Destination XL Group 1

  50,000       112,500

Haverty Furniture

  30,000       648,000

Kirkland’s 1

  11,000       128,040

†Lazydays Holdings 1

  30,000       266,700

MarineMax 1

  7,600       144,020

Sears Hometown and Outlet Stores 1,2,3

  269,700       566,370

Shoe Carnival 2

  21,028       682,359

Stage Stores 2

  15,000       36,150                         5,759,729             TEXTILES, APPAREL & LUXURY GOODS - 1.0%            

Crown Crafts

  112,159       639,306

Culp

  32,900       807,695

J.G. Boswell Company 4

  2,490       1,668,798

YGM Trading

  1,482,000       1,190,043                         4,305,842   Total (Cost $48,461,878)           50,613,144                 CONSUMER STAPLES 2.6%             BEVERAGES - 0.3%            

Crimson Wine Group 1,4

  58,124       537,647

Primo Water 1

  40,400       706,596                         1,244,243             FOOD & STAPLES RETAILING - 0.0%            

†Centric Health 1

  807,600       175,078             FOOD PRODUCTS - 2.2%            

AGT Food and Ingredients

  25,800       300,655

Farmer Bros. 1,2,3

  62,600       1,912,430

John B. Sanfilippo & Son 2,3

  17,800       1,325,210

Landec Corporation 1,2

  75,610       1,126,589

Seneca Foods Cl. A 1

  81,087       2,189,349

Seneca Foods Cl. B 1

  40,400       1,082,720

SunOpta 1

  176,281       1,480,760                         9,417,713             HOUSEHOLD PRODUCTS - 0.1%            

Central Garden & Pet 1

  12,000       521,760   Total (Cost $7,700,951)           11,358,794                 ENERGY 8.7%             ENERGY EQUIPMENT & SERVICES - 5.2%            

Aspen Aerogels 1

  94,985       465,427

CARBO Ceramics 1,2,3

  70,000       641,900

CES Energy Solutions

  25,000       85,384

Computer Modelling Group

  437,700       3,362,697

Dawson Geophysical 1

  77,336       610,954

Era Group 1

  329,800       4,270,910

Geospace Technologies 1,2

  9,500       133,570

Hornbeck Offshore Services 1,2,3

  460,000       1,821,600

Independence Contract Drilling 1

  134,400       553,728

Mammoth Energy Services 1

  4,500       152,820

Matrix Service 1,2

  33,700       618,395

Nabors Industries

  34,000       217,940

Newpark Resources 1

  11,200       121,520

North American Construction Group

  50,000       297,500

Pioneer Energy Services 1,2

  245,600       1,436,760

Precision Drilling 1

  108,600       360,552

Profire Energy 1

  175,000       591,500

SEACOR Marine Holdings 1

  205,457       4,744,002

TerraVest Industries

  209,000       1,600,905

Total Energy Services

  25,700       227,159

Trican Well Service 1

  53,300       121,224                         22,436,447            
24 | 2018 Semiannual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
 
June 30, 2018 (unaudited)
  Schedule of Investments (continued)
      SHARES       VALUE                       ENERGY (continued)                 OIL, GAS & CONSUMABLE FUELS - 3.5%                

Ardmore Shipping 1

    199,300     $ 1,634,260  

Cross Timbers Royalty Trust

    67,631       979,973  

Dorchester Minerals L.P.

    153,963       3,171,638  

Dorian LPG 1

    163,138       1,246,374  

GeoPark 1

    61,971       1,279,081  

Hallador Energy

    24,000       171,360  

Leucrotta Exploration 1

    489,800       730,239  

Pacific Ethanol 1

    134,300       349,180  

Panhandle Oil and Gas Cl. A

    5,500       105,050  

Permian Basin Royalty Trust

    176,333       1,645,187  

Sabine Royalty Trust

    59,548       2,801,733  

StealthGas 1

    229,664       902,580  

†Teekay Offshore Partners L.P.

    56,000       147,840                                 15,164,495     Total (Cost $33,689,668)             37,600,942                       FINANCIALS – 13.9%                 BANKS - 2.3%                

Bank of N.T. Butterfield & Son

    43,810       2,002,993  

Blue Hills Bancorp

    50,000       1,110,000  

Bryn Mawr Bank

    25,000       1,157,500  

Caribbean Investment Holdings 1

    735,635       169,900  

Chemung Financial

    31,000       1,553,410  

Fauquier Bankshares

    133,200       2,823,840  

Live Oak Bancshares 2,3

    30,900       947,085  

Midway Investments 1,5

    735,647       0                                 9,764,728                                     CAPITAL MARKETS - 8.6%                

ASA Gold and Precious Metals

    171,150       1,745,730  

†Ashford 1

    10,000       648,000  

Banca Finnat Euramerica

    568,000       244,762  

Bolsa Mexicana de Valores

    1,068,000       1,797,724  

Canaccord Genuity Group

    203,300       1,122,700  

Diamond Hill Investment Group 2

    3,584       696,837  

†Donnelley Financial Solutions 1

    50,000       868,500  

Dundee Corporation Cl. A 1

    413,200       496,601  

Fiera Capital Cl. A

    78,000       698,330  

Founders Advantage Capital

    53,400       76,770  

GAIN Capital Holdings 2

    25,000       188,750  

GMP Capital

    332,800       726,533  

Great Elm Capital Group 1

    515,200       1,854,720  

Hamilton Lane Cl. A 2

    32,300       1,549,431  

INTL FCStone 1,2,3

    63,727       3,295,323  

JZ Capital Partners 1

    209,999       1,305,359  

Manning & Napier Cl. A

    136,600       423,460  

Medley Management Cl. A

    153,400       544,570  

MVC Capital

    219,900       2,089,050  

OHA Investment

    59,761       91,135  

Pzena Investment Management Cl. A

    6,100       56,181  

Queen City Investments 4

    948       1,094,940  

Silvercrest Asset Management Group Cl. A

    203,300       3,313,790  

Sprott

    1,414,533       3,270,970  

U.S. Global Investors Cl. A 2

    439,454       707,521  

Urbana Corporation

    237,600       511,473  

Value Line

    136,074       3,224,954  

Virtu Financial Cl. A 2

    86,200       2,288,610  

†Vostok New Ventures SDR 1

    100,000       807,212  

Warsaw Stock Exchange

    52,900       516,904  

Westaim Corporation 1

    45,000       110,219  

Westwood Holdings Group 2,3

    12,400       738,296                                 37,105,355                   CONSUMER FINANCE - 0.6%                

Currency Exchange International 1

    7,000       160,803  

EZCORP Cl. A 1,2,3

    201,000       2,422,050                                 2,582,853                   DIVERSIFIED FINANCIAL SERVICES - 0.1%                

Waterloo Investment Holdings 1,5

    806,000       241,800                   INSURANCE - 1.3%                

Hallmark Financial Services 1,2

    114,000       1,137,720  

†Health Insurance Innovations Cl. A 1

    4,000       129,400  

Heritage Insurance Holdings

    6,600       110,022  

State Auto Financial

    43,200       1,292,112  

Trupanion 1,2,3

    82,300       3,176,780                                 5,846,034                   INVESTMENT COMPANIES - 1.0%                

†Social Capital Hedosophia Holdings

    438,850       4,410,442     Total (Cost $55,314,886)             59,951,212                       HEALTH CARE – 13.4%                 BIOTECHNOLOGY - 4.3%                

Abeona Therapeutics 1,2,3

    142,221       2,275,536  

Aquinox Pharmaceuticals 1,2

    145,397       385,302  

Arcturus Therapeutics 1

    106,436       902,577  

BioCryst Pharmaceuticals 1

    144,000       825,120  

CareDx 1

    56,000       685,440  

Idera Pharmaceuticals 1

    464,490       613,127  

Invitae Corporation 1

    156,412       1,149,628  

Keryx Biopharmaceuticals 1,2,3

    117,725       442,646  

Knight Therapeutics 1

    187,000       1,145,058  

Mirati Therapeutics 1

    51,100       2,519,230  

Theratechnologies 1

    10,000       96,451  

Zafgen 1

    465,381       4,760,848  

Zealand Pharma 1

    187,900       2,473,938  

Zealand Pharma ADR 1

    10,000       126,800                                 18,401,701                   HEALTH CARE EQUIPMENT & SUPPLIES - 4.7%                

AtriCure 1,2

    15,000       405,750  

Atrion Corporation

    6,169       3,697,699  

Chembio Diagnostics 1

    33,300       369,630  

CryoLife 1

    4,600       128,110  

GenMark Diagnostics 1

    20,400       130,152  

Inogen 1

    5,400       1,006,182  

Invacare Corporation 2

    54,100       1,006,260  

†Invuity 1

    13,400       52,260  

LeMaitre Vascular

    5,000       167,400  

OraSure Technologies 1,2,3

    50,000       823,500  

OrthoPediatrics Corporation 1

    33,300       887,112  

STRATEC Biomedical

    14,000       1,093,761  

Surmodics 1

    125,892       6,949,238  

TearLab Corporation 1,4

    8,500       1,615  

Utah Medical Products

    34,000       3,745,100                                 20,463,769                   HEALTH CARE PROVIDERS & SERVICES - 2.5%                

AAC Holdings 1

    89,400       837,678  

Aceto Corporation

    58,300       195,305  

BioTelemetry 1

    47,700       2,146,500  
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2018 Semiannual Report to Stockholders | 25
 
Royce Micro-Cap Trust
  Schedule of Investments (continued)
      SHARES       VALUE                       HEALTH CARE (continued)                 HEALTH CARE PROVIDERS & SERVICES (continued)                

CRH Medical 1

    133,000     $ 415,799  

Cross Country Healthcare 1

    150,800       1,696,500  

National Research

    89,529       3,348,384  

†PetIQ Cl. A 1

    25,000       671,500  

Psychemedics Corporation 2

    37,500       721,500  

U.S. Physical Therapy

    10,000       960,000                                 10,993,166                   HEALTH CARE TECHNOLOGY - 1.0%                

Tabula Rasa HealthCare 1

    50,000       3,191,500  

Vocera Communications 1

    33,100       989,359                                 4,180,859                   LIFE SCIENCES TOOLS & SERVICES - 0.5%                

NeoGenomics 1

    125,000       1,638,750  

Quanterix Corporation 1

    45,500       653,380                                 2,292,130                   PHARMACEUTICALS - 0.4%                

Agile Therapeutics 1,2

    80,000       39,520  

Corium International 1

    4,900       39,249  

Flex Pharma 1

    264,274       248,418  

Theravance Biopharma 1

    59,009       1,338,324                                 1,665,511     Total (Cost $34,133,114)             57,997,136                       INDUSTRIALS – 20.2%                 AEROSPACE & DEFENSE - 0.3%                

Astronics Corporation 1

    2,460       88,486  

CPI Aerostructures 1

    11,800       123,900  

FLYHT Aerospace Solutions 1

    191,680       173,506  

Innovative Solutions and Support 1

    142,828       415,629  

SIFCO Industries 1

    45,800       242,740                                 1,044,261                   BUILDING PRODUCTS - 1.3%                

Burnham Holdings Cl. A 4

    117,000       1,767,870  

CSW Industrials 1

    20,000       1,057,000  

DIRTT Environmental Solutions 1

    96,000       468,079  

Insteel Industries

    44,200       1,476,280  

Patrick Industries 1

    17,250       980,662                                 5,749,891                   COMMERCIAL SERVICES & SUPPLIES - 2.1%                

Atento

    218,701       1,498,102  

Civeo Corporation 1

    150,000       654,000  

CompX International Cl. A

    78,200       1,032,240  

Heritage-Crystal Clean 1,2,3

    223,477       4,491,888  

Hudson Technologies 1

    50,000       100,500  

Team 1,2,3

    57,500       1,328,250                                 9,104,980                   CONSTRUCTION & ENGINEERING - 2.8%                

Ameresco Cl. A 1

    251,400       3,016,800  

†Granite Construction

    13,500       751,410  

IES Holdings 1

    220,000       3,685,000  

†Infrastructure and Energy Alternatives 1

    155,000       1,443,050  

†Infrastructure and Energy Alternatives (Warrants) 1

    40,000       38,000  

Northwest Pipe 1,2

    61,600       1,193,192  

NV5 Global 1,2

    27,400       1,898,820                                 12,026,272                   ELECTRICAL EQUIPMENT - 1.0%                

Encore Wire 2

    4,100       194,545  

LSI Industries

    147,412       787,180  

Powell Industries

    21,400       745,362  

Power Solutions International 1,2,3,4

    21,100       195,175  

Preformed Line Products

    20,743       1,841,564  

Revolution Lighting Technologies 1,2,3

    81,200       327,236                                 4,091,062                   INDUSTRIAL CONGLOMERATES - 0.9%                

Raven Industries 2

    102,559       3,943,394                   MACHINERY - 7.7%                

CIRCOR International 1,2

    104,800       3,873,408  

Eastern Company (The)

    39,750       1,114,987  

Exco Technologies

    85,400       577,497  

Foster (L.B.) Company 1,2,3

    95,300       2,187,135  

FreightCar America 1

    86,500       1,452,335  

Global Brass and Copper Holdings

    5,000       156,750  

Graham Corporation 2

    75,150       1,939,621  

Harsco Corporation 1

    4,400       97,240  

Hurco Companies

    36,866       1,649,754  

Kadant

    49,800       4,788,270  

Kornit Digital 1

    39,800       708,440  

Lindsay Corporation 2

    32,600       3,161,874  

Luxfer Holdings 2

    59,712       1,043,766  

Lydall 1

    1,800       78,570  

NN

    45,300       856,170  

Sun Hydraulics

    74,000       3,566,060  

Tennant Company

    34,400       2,717,600  

Titan International

    212,200       2,276,906  

Westport Fuel Systems 1

    454,500       1,149,885                                 33,396,268                   MARINE - 1.3%                

Clarkson

    109,900       3,335,933  

†Eagle Bulk Shipping 1

    450,000       2,448,000                                 5,783,933                   PROFESSIONAL SERVICES - 0.9%                

Acacia Research 1,2

    190,000       788,500  

CBIZ 1

    47,000       1,081,000  

Franklin Covey 1

    40,100       984,455  

GP Strategies 1

    7,600       133,760  

IBI Group 1

    84,500       451,215  

InnerWorkings 1

    30,400       264,176  

Kforce 2

    2,800       96,040  

Resources Connection

    11,200       189,280                                 3,988,426                   ROAD & RAIL - 0.8%                

Marten Transport

    5,500       128,975  

Patriot Transportation Holding 1,2

    55,764       1,198,926  

Universal Logistics Holdings 2,3

    77,600       2,037,000                                 3,364,901                   TRADING COMPANIES & DISTRIBUTORS - 1.1%                

Central Steel & Wire 4

    405       248,265  

EnviroStar 2,3

    44,300       1,785,290  

Houston Wire & Cable 1

    331,418       2,817,053                                 4,850,608     Total (Cost $64,287,164)             87,343,996                       INFORMATION TECHNOLOGY – 20.7%                 COMMUNICATIONS EQUIPMENT - 0.3%                

Clearfield 1

    85,200       941,460  
26 | 2018 Semiannual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
 
June 30, 2018 (unaudited)
  Schedule of Investments (continued)
      SHARES       VALUE                       INFORMATION TECHNOLOGY (continued)                 COMMUNICATIONS EQUIPMENT (continued)                

EMCORE Corporation 1

    8,300     $ 41,915  

Oclaro 1

    32,600       291,118  

PCTEL

    34,100       212,784                                 1,487,277                   ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS - 8.3%                

Airgain 1,2

    8,200       75,358  

Bel Fuse Cl. A

    67,705       1,448,887  

†eMagin Corporation 1

    125,000       225,000  

†eMagin Corporation (Warrants) 1,5

    50,000       12,500  

ePlus 1

    3,000       282,300  

Fabrinet 1

    2,200       81,158  

FARO Technologies 1,2,3

    76,800       4,174,080  

Firan Technology Group 1

    25,000       40,695  

HollySys Automation Technologies

    51,900       1,149,066  

Inficon Holding

    3,220       1,643,654  

LightPath Technologies Cl. A 1

    100,000       230,000  

Mesa Laboratories 2,3

    45,400       9,583,032  

†nLIGHT 1,2,3

    150,000       4,959,000  

Novanta 1

    37,600       2,342,480  

Orbotech 1,2

    69,600       4,301,280  

†PAR Technology 1

    20,000       353,600  

PC Connection

    43,716       1,451,371  

Perceptron 1

    8,500       89,675  

Richardson Electronics

    316,900       3,086,606  

Rogers Corporation 1,2

    600       66,876  

Vishay Precision Group 1

    10,000       381,500                                 35,978,118                   INTERNET SOFTWARE & SERVICES - 4.7%                

Amber Road 1

    25,000       235,250  

Care.com 1,2,3

    171,787       3,586,913  

comScore 1

    64,195       1,399,451  

Etsy 1,2,3

    56,200       2,371,078  

IZEA 1,2,3

    85,870       81,577  

†Leaf Group 1

    64,500       699,825  

MINDBODY Cl. A 1

    38,900       1,501,540  

QuinStreet 1

    210,850       2,677,795  

Real Matters 1

    255,000       1,105,617  

Reis 2

    25,000       545,000  

Solium Capital 1

    317,500       2,779,770  

Stamps.com 1

    11,700       2,960,685  

Support.com 1

    105,600       300,960                                 20,245,461                   IT SERVICES - 0.5%                

Computer Task Group 1

    150,838       1,167,486  

Conduent 1

    30,000       545,100  

Hackett Group (The)

    27,700       445,139  

Innodata 1

    143,883       143,883                                 2,301,608                   SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 4.6%                

†Adesto Technologies 1

    7,200       60,480  

Alpha & Omega Semiconductor 1

    3,300       46,992  

Amtech Systems 1,2

    92,184       557,713  

Brooks Automation

    91,500       2,984,730  

CyberOptics Corporation 1

    43,000       748,200  

†Everspin Technologies 1

    5,900       52,628  

FormFactor 1

    22,869       304,158  

Kulicke & Soffa Industries

    77,200       1,838,904  

Nanometrics 1

    64,600       2,287,486  

NeoPhotonics Corporation 1,2,3

    51,300       319,599  

Nova Measuring Instruments 1

    68,000       1,853,000  

PDF Solutions 1

    189,700       2,272,606  

Photronics 1

    231,900       1,849,402  

Rudolph Technologies 1

    52,100       1,542,160  

Silicon Motion Technology ADR

    34,100       1,803,549  

Ultra Clean Holdings 1,2

    49,900       828,340  

Veeco Instruments 1,2,3

    17,500       249,375  

Xcerra Corporation 1

    15,600       217,932                                 19,817,254                   SOFTWARE - 1.5%                

Agilysys 1

    170,587       2,644,098  

American Software Cl. A

    120,352       1,753,529  

BSQUARE Corporation 1

    83,675       225,923  

Monotype Imaging Holdings

    15,000       304,500  

Optiva 1

    3,000       104,058  

RealNetworks 1

    100,171       370,633  

Rubicon Project 1

    75,000       213,750  

SeaChange International 1

    284,200       971,964                                 6,588,455                   TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS - 0.8%                

AstroNova

    5,300       99,905  

†Cray 1

    19,700       484,620  

Intevac 1

    397,800       1,929,330  

USA Technologies 1

    61,300       858,200                                 3,372,055     Total (Cost $58,957,346)             89,790,228                       MATERIALS 5.3%                 CHEMICALS - 1.8%                

Balchem Corporation

    10,575       1,037,830  

LSB Industries 1

    135,800       719,740  

OMNOVA Solutions 1

    25,000       260,000  

Quaker Chemical 2

    24,400       3,778,828  

Rayonier Advanced Materials

    50,000       854,500  

Trecora Resources 1

    89,600       1,330,560                                 7,981,458                   CONSTRUCTION MATERIALS - 0.3%                

Monarch Cement 4

    16,303       1,149,688  

U.S. Concrete 1

    2,500       131,250                                 1,280,938                   CONTAINERS & PACKAGING - 0.3%                

UFP Technologies 1

    36,445       1,124,328                   METALS & MINING - 2.9%                

Alamos Gold Cl. A

    186,044       1,059,955  

Ampco-Pittsburgh 1

    79,002       809,770  

Haynes International 2,3

    27,400       1,006,676  

Hudbay Minerals

    62,200       348,320  

Imdex 1

    750,666       686,080  

MAG Silver 1

    154,050       1,665,281  

Major Drilling Group International 1

    921,657       4,865,401  

Olympic Steel

    35,000       714,350  

Pretium Resources 1

    80,000       588,446  

Universal Stainless & Alloy Products 1

    15,300       362,151  

Victoria Gold 1

    890,000       236,945                                 12,343,375     Total (Cost $18,563,369)             22,730,099    
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2018 Semiannual Report to Stockholders | 27
 
Royce Micro-Cap Trust   June 30, 2018 (unaudited)
  Schedule of Investments (continued)
      SHARES       VALUE                       REAL ESTATE 3.5%                 REAL ESTATE MANAGEMENT & DEVELOPMENT - 3.5%                

Altus Group

    87,000     $ 1,939,657  

FRP Holdings 1,2,3

    76,500       4,953,375  

Marcus & Millichap 1,2

    49,567       1,933,609  

RMR Group Cl. A

    34,900       2,737,905  

Tejon Ranch 1,2

    154,994       3,766,354     Total (Cost $9,399,137)             15,330,900                       TELECOMMUNICATION SERVICES 0.2%                 DIVERSIFIED TELECOMMUNICATION SERVICES - 0.2%                

ORBCOMM 1

    67,100       677,710     Total (Cost $570,215)             677,710                       UTILITIES 0.4%                 INDEPENDENT POWER & RENEWABLE ELECTRICITY PRODUCER - 0.0%                

†Innergex Renewable Energy

    15,573       163,590                   WATER UTILITIES - 0.4%                

†AquaVenture Holdings 1

    50,000       779,000  

Global Water Resources

    106,000       996,400                                 1,775,400     Total (Cost $1,514,639)             1,938,990                       TOTAL COMMON STOCKS                   (Cost $332,592,367)             435,333,151                       PREFERRED STOCK - 0.4%                

†Chicken Soup For The Soul Entertainment 9.75%

    80,000       1,991,200     (Cost $2,000,000)             1,991,200                       REPURCHASE AGREEMENT 8.1%                 Fixed Income Clearing Corporation, 0.35% dated 6/29/18, due 7/2/18, maturity value $34,960,020 (collateralized by obligations of various U.S. Government Agencies, 1.375% due 10/07/21, valued at $35,658,523)   (Cost $34,959,000)             34,959,000                       TOTAL INVESTMENTS 109.1%                   (Cost $369,551,367)             472,283,351                       LIABILITIES LESS CASH AND OTHER ASSETS (9.1)%             (39,504,530 )                                     NET ASSETS 100.0%           $ 432,778,821    
New additions in 2018. 1 Non-income producing. 2
All or a portion of these securities were pledged as collateral in connection with the Fund’s revolving credit agreement at June 30, 2018. Total market value of pledged securities at June 30, 2018, was $82,625,162.
3
At June 30, 2018, a portion of these securities were rehypothecated in connection with the Fund’s revolving credit agreement in the aggregate amount of $37,405,632.
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
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. See Notes to Financial Statements.
     
Bold indicates the Fund’s 20 largest equity holdings in terms of June 30, 2018, market value.
     
TAX INFORMATION: The cost of total investments for Federal income tax purposes was $370,955,679. At June 30, 2018, net unrealized appreciation for all securities was $101,327,672 consisting of aggregate gross unrealized appreciation of $146,842,892 and aggregate gross unrealized depreciation of $45,515,220. The primary cause of the difference between book and tax basis cost is the timing of the recognition of losses on securities sold.

28 | 2018 Semiannual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
 
Royce Micro-Cap Trust   June 30, 2018 (unaudited)
  Statement of Assets and Liabilities
ASSETS:           Investments at value     $ 437,324,351     Repurchase agreements (at cost and value)       34,959,000     Cash and foreign currency       37,630     Receivable for investments sold       7,538,093     Receivable for dividends and interest       197,972     Prepaid expenses and other assets       35,148     Total Assets       480,092,194     LIABILITIES:           Revolving credit agreement       45,000,000     Payable for investments purchased       1,905,985     Payable for investment advisory fee       301,645     Payable for directors’ fees       28,273     Payable for interest expense       12,328     Accrued expenses       65,142     Total Liabilities       47,313,373     Net Assets     $ 432,778,821     ANALYSIS OF NET ASSETS:           Paid-in capital - $0.001 par value per share; 39,711,274 shares outstanding (150,000,000 shares authorized)     $ 334,988,734     Undistributed net investment income (loss)       (536,628 )   Accumulated net realized gain (loss) on investments and foreign currency       9,731,364     Net unrealized appreciation (depreciation) on investments and foreign currency       102,732,734     Quarterly distributions       (14,137,383 )   Net Assets (net asset value per share - $10.90)     $ 432,778,821     Investments at identified cost     $ 334,592,367    
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2018 Semiannual Report to Stockholders | 29
 
Royce Micro-Cap Trust
  Statement of Changes in Net Assets
      SIX MONTHS ENDED
6/30/18
(UNAUDITED)
      YEAR ENDED 12/31/17                       INVESTMENT OPERATIONS:                 Net investment income (loss)   $ 465,902     $ 2,126,051     Net realized gain (loss) on investments and foreign currency     8,212,922       25,657,103     Net change in unrealized appreciation (depreciation) on investments and foreign currency     22,462,403       33,136,932     Net increase (decrease) in net assets from investment operations     31,141,227       60,920,086     DISTRIBUTIONS:                 Net investment income     (517,428 )1     (2,282,512 )   Net realized gain on investments and foreign currency     (5,793,500 )1     (24,135,451 )   Return of capital     (7,826,455 )1         Total distributions     (14,137,383 )     (26,417,963 )   CAPITAL STOCK TRANSACTIONS:                 Reinvestment of distributions     5,870,061       11,702,040     Total capital stock transactions     5,870,061       11,702,040     Net Increase (Decrease) In Net Assets     22,873,905       46,204,163     NET ASSETS:                   Beginning of period     409,904,916       363,700,753     End of period (including undistributed net investment income (loss) of $(536,628) at 6/30/18 and $(1,002,531) at 12/31/17)   $ 432,778,821     $ 409,904,916    
1Amounts are subject to change and recharacterization at year end.
30 | 2018 Semiannual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
 
Royce Micro-Cap Trust   Six Months Ended June 30, 2018 (unaudited)
  Statement of Operations
INVESTMENT INCOME:         INCOME:         Dividends   $ 3,185,675     Foreign withholding tax     (64,172 )   Interest     40,458     Rehypothecation income     201,609     Total income     3,363,570     EXPENSES:           Investment advisory fees     1,934,484     Interest expense     697,887     Stockholder reports     60,385     Administrative and office facilities     54,131     Directors’ fees     48,977     Custody and transfer agent fees     45,043     Professional fees     29,978     Other expenses     26,982     Total expenses     2,897,867     Compensating balance credits     (199 )   Net expenses     2,897,668     Net investment income (loss)     465,902     REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY:         NET REALIZED GAIN (LOSS):           Investments     8,232,993     Foreign currency transactions     (20,071 )   NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION):           Investments and foreign currency translations     22,461,808     Other assets and liabilities denominated in foreign currency     595     Net realized and unrealized gain (loss) on investments and foreign currency     30,675,325     NET INCREASE (DECREASE) IN NET ASSETS FROM INVESTMENT OPERATIONS   $ 31,141,227    
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2018 Semiannual Report to Stockholders | 31
 
Royce Micro-Cap Trust   Six Months Ended June 30, 2018 (unaudited)
  Statement of Cash Flows
CASH FLOWS FROM OPERATING ACTIVITIES:         Net increase (decrease) in net assets from investment operations   $ 31,141,227     Adjustments to reconcile net increase (decrease) in net assets from investment operations to net cash provided by operating activities:          

Purchases of long-term investments

    (40,220,664 )  

Proceeds from sales and maturities of long-term investments

    51,360,418    

Net purchases, sales and maturities of short-term investments

    (3,529,000 )  

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

    119,955    

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

    108,049    

Net change in unrealized appreciation (depreciation) on investments

    (22,461,808 )  

Net realized gain (loss) on investments and foreign currency

    (8,212,922 )   Net cash provided by operating activities     8,305,255     CASH FLOWS FROM FINANCING ACTIVITIES:         Distributions     (14,137,383 )   Reinvestment of distributions     5,870,061     Net cash used for financing activities     (8,267,322 )   INCREASE (DECREASE) IN CASH:     37,933     Payable to custodian for cash and foreign currency overdrawn at beginning of period     (303 )   Cash and foreign currency at end of period   $ 37,630    
32 | 2018 Semiannual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
 
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.
    SIX MONTHS   YEARS ENDED                   ENDED 6/30/18                                             (UNAUDITED)   12/31/17   12/31/16   12/31/15   12/31/14   12/31/13   Net Asset Value, Beginning of Period   $ 10.48     $ 9.63     $ 8.59     $ 11.33     $ 14.12     $ 10.93     INVESTMENT OPERATIONS:                                                 Net investment income (loss)     0.01       0.06       0.03       0.03       (0.01 )     0.01     Net realized and unrealized gain (loss) on investments and foreign currency     0.78       1.52       1.70       (1.42 )     0.25       4.64     Net increase (decrease) in net assets from investment operations     0.79       1.58       1.73       (1.39 )     0.24       4.65     DISTRIBUTIONS:                                                 Net investment income     (0.01 )1     (0.06 )     (0.08 )     (0.01 )     (0.04 )     (0.03 )   Net realized gain on investments and foreign currency     (0.15 )1     (0.63 )     (0.56 )     (1.25 )     (2.86 )     (1.35 )   Return of capital     (0.20 )1                                 Total distributions     (0.36 )     (0.69 )     (0.64 )     (1.26 )     (2.90 )     (1.38 )   CAPITAL STOCK TRANSACTIONS:                                                 Effect of reinvestment of distributions by Common Stockholders     (0.01 )     (0.04 )     (0.05 )     (0.09 )     (0.13 )     (0.08 )   Total capital stock transactions     (0.01 )     (0.04 )     (0.05 )     (0.09 )     (0.13 )     (0.08 )   Net Asset Value, End of Period   $ 10.90     $ 10.48     $ 9.63     $ 8.59     $ 11.33     $ 14.12     Market Value, End of Period   $ 9.99     $ 9.44     $ 8.16     $ 7.26     $ 10.08     $ 12.61     TOTAL RETURN: 2                                                 Net Asset Value     7.84 %3     17.67 %     21.98 %     (11.64 )%     3.46 %     44.66 %   Market Value     9.72 %3     25.09 %     22.30 %     (16.06 )%     3.06 %     49.42 %   RATIOS BASED ON AVERAGE NET ASSETS:                                                 Investment advisory fee expense4     0.93 %5     0.49 %     0.87 %     0.93 %     0.93 %     0.82 %   Other operating expenses     0.46 %5     0.40 %     0.39 %     0.35 %     0.25 %     0.29 %   Total expenses (net)     1.39 %5     0.89 %     1.26 %     1.28 %     1.18 %     1.11 %   Expenses net of fee waivers and excluding interest expense     1.05 %5     0.62 %     1.02 %     1.08 %     1.05 %     0.96 %   Expenses prior to fee waivers and balance credits     1.39 %5     0.89 %     1.26 %     1.28 %     1.18 %     1.11 %   Expenses prior to fee waivers     1.39 %5     0.89 %     1.26 %     1.28 %     1.18 %     1.11 %   Net investment income (loss)     0.22 %5     0.56 %     0.32 %     0.26 %     (0.09 )%     0.08 %   SUPPLEMENTAL DATA:                                                 Net Assets, End of Period (in thousands)   $ 432,779     $ 409,905     $ 363,701     $ 312,407     $ 387,488     $ 433,121     Portfolio Turnover Rate     10 %     15 %     26 %     39 %     41 %     29 %   REVOLVING CREDIT AGREEMENT:                                                 Asset coverage     1062 %     1011 %     908 %     794 %     746 %     1062 %   Asset coverage per $1,000   $ 10,617     $ 10,109     $ 9,082     $ 7,942     $ 7,458     $ 10,625    
1 Amounts are subject to change and recharacterization at year end. 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
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 over a 12-month basis.
5 Annualized
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2018 Semiannual Report to Stockholders | 33
 
Royce Micro-Cap Trust

Notes to Financial Statements (unaudited)

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 June 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     $428,414,854       $ 6,663,997       $254,300       $435,333,151     Preferred Stocks     1,991,200                   1,991,200     Cash Equivalents           34,959,000             34,959,000    

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 six months ended June 30, 2018, securities valued at $14,133,960 were transferred from Level 2 to Level 1 within the fair value hierarchy.

34 | 2018 Semiannual Report to Stockholders


 
Royce Micro-Cap Trust

Notes to Financial Statements (unaudited) (continued)

VALUATION OF INVESTMENTS (continued):

Level 3 Reconciliation:               BALANCE AS OF 12/31/17 PURCHASES REALIZED GAIN (LOSS) UNREALIZED GAIN (LOSS)1 BALANCE AS OF 6/30/18   Common Stocks $241,800 $0 $ – $12,500 $254,300   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 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       6/30/18     VALUATION TECHNIQUE(S)     UNOBSERVABLE INPUT(S)     RANGE AVERAGE     AN INCREASE IN INPUT1   Common Stocks     $254,300     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 June 30, 2018 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. Distributions to Common Stockholders are recorded on ex-dividend date. To the extent that distributions in any year 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.

2018 Semiannual Report to Stockholders | 35


 
Royce Micro-Cap Trust

Notes to Financial Statements (unaudited) (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. Premiums 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 (“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 594,634 and 1,336,310 shares of Common Stock as reinvestment of distributions for the six months ended June 30, 2018 and the year ended December 31, 2017, respectively.

  Borrowings:

The Fund is party to a revolving credit agreement (the credit agreement) with BNP Paribas Prime Brokerage International, Limited (BNPPI). 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.

As of June 30, 2018, the Fund has outstanding borrowings of $45,000,000. During the six months ended June 30, 2018, the Fund borrowed an average daily balance of $45,000,000 at a weighted average borrowing cost of 3.08%. The maximum amount outstanding during the six months ended June 30, 2018 was $45,000,000. As of June 30, 2018, the aggregate value of rehypothecated securities was $37,405,632. During the six months ended June 30, 2018, the Fund earned $201,609 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.

36 | 2018 Semiannual Report to Stockholders


 
Royce Micro-Cap Trust

Notes to Financial Statements (unaudited) (continued)

Investment Advisory Agreement (continued):

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 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 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 six rolling 36-month periods ended June 2018, the Fund’s investment performance ranged from 2% to 5% below the investment performance of the Russell 2000. Accordingly, the net investment advisory fee consisted of a Basic Fee of $1,793,539 and a net downward adjustment of $104,191 for the performance of the Fund relative to that of the Russell 2000. Additionally, investment advisory fees for 2018 include $245,136 relating to an adjustment of prior periods’ performance fees. For the six months ended June 30, 2018, the Fund expensed Royce investment advisory fees totaling $1,934,484.

  Purchases and Sales of Investment Securities:

For the six months ended June 30, 2018, the costs of purchases and proceeds from sales of investment securities, other than short-term securities, amounted to $41,430,667 and $52,763,111, 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 Royce 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 six months ended June 30, 2018, were as follows:


COST OF PURCHASES     PROCEEDS FROM SALES     REALIZED GAIN (LOSS)   $1,771,063     $ –     $ –  

2018 Semiannual Report to Stockholders | 37


 
    MANAGERS’ DISCUSSION Royce Value Trust (RVT)    
Chuck Royce
Chris Flynn
Lauren Romeo, CFA

FUND PERFORMANCE
Following two consecutive years of strong absolute and relative performance, our oldest closed-end portfolio fell behind each of its unleveraged small-cap benchmarks in the first half of 2018. Royce Value Trust (“RVT”) advanced 2.8% on a net asset value (“NAV”) basis and 1.4% on a market price basis for the year-to-date period ended June 30, 2018, in both cases underperforming the Russell 2000 and S&P SmallCap 600 Indexes, which had respective increases of 7.7% and 9.4% for the same period. The Fund maintained its longer-term relative advantages, outperforming the Russell 2000 based on both NAV and market price for the three-, 20-, 25-, 30-year, and since inception (11/26/86) periods ended June 30, 2018.   WHAT WORKED... AND WHAT DIDN’T Although the first half was challenging for our multi-discipline small-cap core strategy with the market continuing to favor higher growth, lower quality, and more yield-sensitive equities, nine of RVT’s 11 equity sectors nonetheless finished the period in the black. Energy, which recovered significantly in the second quarter, was by far the top contributor, while Consumer Discretionary and Consumer Staples had only modest negative results.
    At the industry level, the top contributor was energy equipment & services (Energy) as the rebound for oil prices fed through to improved prospects for these businesses. SEACOR Marine Holdings, which provides global marine and support transportation services to the energy industry, was the Fund’s top performer overall and in this industry. Stronger operating results came from nearly all of its geographic markets, which helped its shares to rise. Norway’s TGS-NOPEC Geophysical, which provides geoscience data to oil and gas companies worldwide, was also a significant contributor in this industry and in the portfolio as a whole. Its revenue and earnings were boosted by improving exploration and production spending, higher oil prices, and the longer-term need for energy companies to replenish reserves, which is driving increased spending on seismic data. Outside of energy, Copart, the largest online salvage auction provider in the U.S., saw higher volumes and revenue per car as market conditions remained robust in the first half. Copart’s continuous improvement of its virtual bidding platform is expanding the pool of potential buyers, auction participants, and bids per car. A shift within its non-insurance auto auction business toward dealers and financial institutions has been lifting both average selling prices and gross margins higher. Finally, the company has been supplementing its expanding European footprint with the acquisition of a salvage operation in Finland, augmenting its buyer base in Russia and the Baltic States.
    RVT’s top-two contributors from both 2016 and 2017 made the list of top detractors in 2018’s first half. The stock of laser diode and equipment maker Coherent underwent a correction in the first half after the company’s announcement of slightly better-than-expected results came with a more muted profit outlook. Already reducing our position in 2017, we sold additional shares in June 2018. Cognex Corporation has a dominant position as the global leader in machine vision technology. It was hurt by slackening demand in its consumer electronics market, in particular by iPhone sales that were well below expectations. We also suspect that many technology businesses with global reach may have suffered amid concerns about the effect trade wars would have on worldwide growth. We held our shares in the first half.     The largest negative effect on returns relative to the Russell 2000 came from poor stock selection in Information Technology, most impactfully in the electronic equipment, instruments & components group and in Internet software & services companies. Stock selection also hurt in Consumer Discretionary, while our underweight in Health Care, especially in biotechnology, and our overweight in Industrials, most notably in the machinery group, also detracted. Machinery was also the biggest detractor for RVT at the industry level, due in large part to disappointing performance from Sun Hydraulics. In fact, several holdings in this group reported disappointing earnings and lackluster guidance, due partially to margin compression caused by higher input costs. We think that some of these margin issues should prove transitory as manufacturers must first absorb these increased costs before realizing higher product prices. Conversely, savvy stock selection gave RVT an advantage in the Energy and Real Estate sectors, as did our lower exposure to Utilities.
  Top Contributors to Performance
Year-to-Date Through 6/30/18 (%)1             SEACOR Marine Holdings   0.48   TGS-NOPEC Geophysical   0.39   Copart   0.31   Wesco Aircraft Holdings   0.25   FRP Holdings   0.25   1 Includes dividends    
  Top Detractors from Performance
Year-to-Date Through 6/30/18 (%)2             Coherent   -0.64   Cognex Corporation   -0.37   Thor Industries   -0.35   Sun Hydraulics   -0.32   ManpowerGroup   -0.27   2 Net of dividends    
CURRENT POSITIONING AND OUTLOOK The market’s recent behavior looks curious to us. We hear optimism and solid progress from the management teams we meet with, see solid earnings reports, and observe consistently strong macroeconomic data. On the other hand, small-cap market leadership has stubbornly remained with defensive and yield-oriented stocks, while cyclicals have lagged. Despite new highs for the Russell 2000, we are therefore far from ebullient, as we anticipate that increased volatility will accompany a shift in market leadership to value/cyclical leadership. We are also mindful that these shifts rarely occur without some turbulence. We have therefore sought to position the portfolio for both lower small-cap returns and increased volatility.
38 | 2018 Semiannual Report to Stockholders  
 
PERFORMANCE AND PORTFOLIO REVIEW SYMBOLS    MARKET PRICE RVT NAV XRVTX

Performance                                   Average Annual Total Return (%) Through 6/30/18                       JAN-JUN 20181   1-YR   3-YR   5-YR   10-YR   15-YR   20-YR   25-YR   30-YR   SINCE INCEPTION (11/26/86) RVT (NAV)   2.78   14.37   12.03   11.45   8.81   10.04   9.15   10.53   10.97   10.74   1 Not Annualized                              

Market Price Performance History Since Inception (11/26/86) Cumulative Performance of Investment through 6/30/181                     1-YR   5-YR   10-YR   15-YR   20-YR   SINCE INCEPTION (11/26/86)   RVT   16.9%   74.5%   122.8%   267.0%   460.2%   2058.6%  


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 Box™ with the center 75% of fund holdings plotted as the Morningstar Ownership Zone™. 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 66 for additional information.


Top 10 Positions     % of Net Assets           FLIR Systems   2.1   HEICO Corporation   1.9   Quaker Chemical   1.4   Copart   1.2   Sun Hydraulics   1.2   Reliance Steel & Aluminum   1.1   Cognex Corporation   1.0   TGS-NOPEC Geophysical   1.0   SEACOR Marine Holdings   1.0   ANSYS   0.9  

Portfolio Sector Breakdown     % of Net Assets           Industrials   30.8   Information Technology   19.3   Financials   14.9   Consumer Discretionary   8.8   Materials   8.6   Energy   7.0   Health Care   4.4   Real Estate   3.7   Consumer Staples   1.6   Telecommunication Services   0.5   Utilities   0.4   Cash and Cash Equivalents, Net of
Outstanding Line of Credit
  0.0  

Calendar Year Total Returns (%)         YEAR   RVT   2017   19.4   2016   26.8   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  

Portfolio Diagnostics           Fund Net Assets   $1,490 million   Number of Holdings   372   Turnover Rate   17%   Net Asset Value   $17.34   Market Price   $15.80   Average Market Capitalization1   $1,914 million   Weighted Average P/E Ratio 2,3   21.7x   Weighted Average P/B Ratio2   2.2x   Active Share 4   91%   U.S. Investments (% of Net Assets)   83.1%   Non-U.S. Investments (% of Net Assets)   16.9%     1
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.
2
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.
3
The Fund’s P/E ratio calculation excludes companies with zero or negative earnings (18% of portfolio holdings as of 6/30/18).
4
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 Value Trust at 12/31/16 and 6/30/18 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 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 above, 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 2018.

    2018 Semiannual Report to Stockholders | 39
 
Royce Value Trust     Schedule of Investments Common Stocks – 100.0%     SHARES     VALUE                   CONSUMER DISCRETIONARY 8.8%             AUTO COMPONENTS - 0.9%            

Dorman Products 1

  61,400   $ 4,194,234  

Gentex Corporation 2

  62,500     1,438,750  

LCI Industries

  73,616     6,636,482  

Sebang Global Battery

  28,500     809,354  

Standard Motor Products

  13,391     647,321                         13,726,141               AUTOMOBILES - 0.6%            

Thor Industries 2

  93,230     9,079,670               DISTRIBUTORS - 1.3%            

Connect Group

  550,000     223,928  

Core-Mark Holding Company

  456,100     10,353,470  

LKQ Corporation 1

  149,300     4,762,670  

Weyco Group

  97,992     3,566,909                         18,906,977               DIVERSIFIED CONSUMER SERVICES - 0.3%            

Collectors Universe

  71,100     1,048,014  

Houghton Mifflin Harcourt 1

  100,000     765,000  

Liberty Tax Cl. A

  151,573     1,223,952  

Universal Technical Institute 1

  504,032     1,587,701                         4,624,667               HOTELS, RESTAURANTS & LEISURE - 0.3%            

†Inspired Entertainment 1,2

  150,000     937,500  

Lindblad Expeditions Holdings 1

  207,600     2,750,700  

Rank Group

  400,000     1,010,401                         4,698,601               HOUSEHOLD DURABLES - 1.6%            

Cavco Industries 1

  14,700     3,052,455  

Ethan Allen Interiors

  200,000     4,900,000  

HG Holdings 1,3,4

  912,235     592,953  

Natuzzi ADR 1

  2,096,300     3,375,043  

PICO Holdings

  409,400     4,769,510  

†Purple Innovation 1

  225,000     1,912,500  

†Purple Innovation (Warrants) 1,5

  750,000     411,000  

Samson Holding

  2,500,000     261,293  

Skyline Champion

  70,400     2,466,816  

†TopBuild Corporation 1

  20,300     1,590,302                         23,331,872               INTERNET & DIRECT MARKETING RETAIL - 0.4%            

CafePress 1

  39,079     45,722  

FTD Companies 1

  298,014     1,382,785  

†Shutterfly 1

  14,900     1,341,447  

TripAdvisor 1

  50,000     2,785,500  

†zooplus 1

  6,200     1,158,458                         6,713,912               LEISURE PRODUCTS - 0.7%            

Clarus Corporation 1

  90,000     742,500  

Nautilus 1

  574,500     9,019,650                         9,762,150               MEDIA - 0.3%            

Global Eagle Entertainment 1

  110,000     277,200  

Gray Television 1

  50,000     790,000  

Liberty Latin America Cl. C 1,2

  96,500     1,870,170  

Pico Far East Holdings

  2,612,400     1,058,865                         3,996,235               MULTILINE RETAIL - 0.0%            

New World Department Store China 1

  377,500     87,090               SPECIALTY RETAIL - 1.4%            

AutoCanada

  114,000     1,475,024  

Barnes & Noble

  67,000     425,450  

Camping World Holdings Cl. A 2,6

  124,100     3,100,018  

Container Store Group (The) 1,2

  158,200     1,330,462  

Destination Maternity 1

  557,967     3,247,368  

Duty Free International

  2,000,000     293,578  

I.T

  827,000     590,292  

Monro

  134,000     7,785,400  

Oriental Watch Holdings

  967,900     310,889  

Signet Jewelers

  35,000     1,951,250  

TravelCenters of America LLC 1

  62,500     218,750                         20,728,481               TEXTILES, APPAREL & LUXURY GOODS - 1.0%            

Culp

  29,400     721,770  

J.G. Boswell Company 4

  3,940     2,640,588  

Wolverine World Wide

  322,300     11,206,371  

YGM Trading

  1,082,600     869,326                         15,438,055     Total (Cost $132,337,096)         131,093,851                   CONSUMER STAPLES 1.6%             BEVERAGES - 0.1%            

Compania Cervecerias Unidas ADR 2

  64,500     1,608,630               FOOD & STAPLES RETAILING - 0.0%            

Conviviality 1,5

  350,000     0               FOOD PRODUCTS - 1.2%            

Cal-Maine Foods 1,2

  40,416     1,853,073  

Farmer Bros. 1

  54,700     1,671,085  

Nomad Foods 1

  125,000     2,398,750  

Seneca Foods Cl. A 1

  225,429     6,086,583  

Seneca Foods Cl. B 1

  13,840     370,912  

SunOpta 1,2

  50,000     420,000  

Tootsie Roll Industries 2

  165,529     5,106,570                         17,906,973               PERSONAL PRODUCTS - 0.3%            

Inter Parfums

  75,630     4,046,205     Total (Cost $18,703,637)         23,561,808                   ENERGY 7.0%             ENERGY EQUIPMENT & SERVICES - 5.5%            

†C&J Energy Services 1

  7,700     181,720  

CARBO Ceramics 1,2,6

  78,000     715,260  

Computer Modelling Group

  594,350     4,566,185  

Diamond Offshore Drilling 1,2,6

  214,000     4,464,040  

Era Group 1

  564,693     7,312,774  

Forum Energy Technologies 1

  249,431     3,080,473  

Frank’s International 1,2

  108,600     847,080  

Helmerich & Payne 2,6

  94,000     5,993,440  

ION Geophysical 1,2,6

  71,880     1,746,684  

North American Construction Group

  160,000     952,000  

Oil States International 1

  10,000     321,000  

Pason Systems

  607,680     9,947,342  

†Patterson-UTI Energy

  10,050     180,900  

Precision Drilling 1

  93,900     311,748  

RigNet 1

  32,754     337,366  

RPC

  12,800     186,496  

SEACOR Holdings 1

  150,469     8,617,360  

SEACOR Marine Holdings 1

  638,834     14,750,677  

TGS-NOPEC Geophysical

  419,370     15,447,642  
40 | 2018 Semiannual Report to Stockholders THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
 
June 30, 2018 (unaudited)
  Schedule of Investments (continued)

    SHARES     VALUE                   ENERGY (continued)             ENERGY EQUIPMENT & SERVICES (continued)            

Trican Well Service 1

  897,300   $ 2,040,792  

Unit Corporation 1

  15,000     383,400                         82,384,379               OIL, GAS & CONSUMABLE FUELS - 1.5%            

Dorchester Minerals L.P.

  279,148     5,750,449  

Dorian LPG 1

  394,936     3,017,311  

GeoPark 1

  53,200     1,098,048  

Green Plains

  145,984     2,671,507  

†International Petroleum 1

  100,000     669,886  

New Zealand Refining

  310,000     512,310  

Pryce Corporation

  3,000,000     334,473  

San Juan Basin Royalty Trust

  320,352     1,854,838  

World Fuel Services

  224,227     4,576,473  

WPX Energy 1

  110,000     1,983,300                         22,468,595     Total (Cost $96,379,369)         104,852,974                   FINANCIALS 14.9%             BANKS - 2.5%            

Banca Sistema

  200,000     472,959  

Bank of N.T. Butterfield & Son

  178,416     8,157,179  

Canadian Western Bank

  279,500     7,366,733  

Farmers & Merchants Bank of Long Beach 4

  1,080     8,807,400  

Fauquier Bankshares 2

  160,800     3,408,960  

First Citizens BancShares Cl. A

  14,676     5,918,831  

Webster Financial

  40,300     2,567,110                         36,699,172               CAPITAL MARKETS - 7.5%            

Ares Management L.P.

  489,600     10,134,720  

Artisan Partners Asset Management Cl. A

  270,500     8,155,575  

ASA Gold and Precious Metals

  199,821     2,038,174  

Ashmore Group

  1,354,000     6,665,294  

Associated Capital Group Cl. A 2

  20,200     766,590  

†Bolsa Mexicana de Valores

  1,723,106     2,900,438  

Citadel Capital 1

  7,749,921     1,446,883  

Cowen 1

  62,706     868,478  

Dundee Corporation Cl. A 1

  1,079,900     1,297,868  

Edmond de Rothschild (Suisse)

  153     2,641,927  

GMP Capital

  287,100     626,765  

Hamilton Lane Cl. A

  13,800     661,986  

Jupiter Fund Management

  230,000     1,353,800  

Lazard Cl. A

  89,835     4,393,830  

Manning & Napier Cl. A

  395,692     1,226,645  

MarketAxess Holdings

  51,600     10,209,576  

Medley Management Cl. A 2,6

  109,500     388,725  

Morningstar

  84,600     10,849,950  

mutares

  7,000     94,008  

MVC Capital

  271,183     2,576,239  

Oaktree Capital Group LLC Cl. A

  145,700     5,922,705  

Rothschild & Co

  209,893     7,096,023  

SEI Investments

  148,500     9,284,220  

Sprott

  1,927,000     4,456,000  

TMX Group

  40,700     2,668,030  

U.S. Global Investors Cl. A 2

  520,551     838,087  

Value Partners Group

  5,453,000     4,309,243  

Virtu Financial Cl. A 2

  189,000     5,017,950  

Westwood Holdings Group

  38,850     2,313,129                         111,202,858               CONSUMER FINANCE - 0.0%            

Currency Exchange International 1

  30,000     689,157               DIVERSIFIED FINANCIAL SERVICES - 0.1%            

First Pacific

  1,020,000     492,735  

Waterloo Investment Holdings 1,5

  2,972,000     891,600                         1,384,335               INSURANCE - 3.0%            

E-L Financial

  22,500     14,033,982  

Erie Indemnity Cl. A

  25,000     2,931,500  

Independence Holding Company

  259,223     8,619,165  

MBIA 1,2,6

  942,400     8,519,296  

ProAssurance Corporation

  126,334     4,478,540  

RLI Corp.

  65,900     4,361,921  

Trupanion 1

  36,400     1,405,040                         44,349,444               INVESTMENT COMPANIES - 0.6%            

†Landcadia Holdings Cl. A 1

  63,350     641,736  

RIT Capital Partners

  54,192     1,476,886  

†Social Capital Hedosophia Holdings 1

  680,918     6,843,226                         8,961,848               THRIFTS & MORTGAGE FINANCE - 1.2%            

BofI Holding 1,2,6

  16,300     666,833  

Genworth MI Canada

  220,795     7,184,886  

Timberland Bancorp

  288,857     10,785,920  

Vestin Realty Mortgage II 1,4

  34     102,000                         18,739,639     Total (Cost $175,742,781)         222,026,453                   HEALTH CARE 4.4%             BIOTECHNOLOGY - 0.5%            

Keryx Biopharmaceuticals 1,2,6

  139,000     522,640  

Sangamo Therapeutics 1,2,6

  65,815     934,573  

Zealand Pharma 1

  408,857     5,383,112                         6,840,325               HEALTH CARE EQUIPMENT & SUPPLIES - 1.9%            

Atrion Corporation

  15,750     9,440,550  

DENTSPLY SIRONA

  5,000     218,850  

Haemonetics 1

  6,400     573,952  

Hill-Rom Holdings

  5,000     436,700  

Integer Holdings 1

  42,400     2,741,160  

†LeMaitre Vascular

  26,000     870,480  

Masimo Corporation 1

  50,000     4,882,500  

Neogen Corporation 1

  22,400     1,796,256  

Surmodics 1

  138,500     7,645,200                         28,605,648               HEALTH CARE PROVIDERS & SERVICES - 0.2%            

Community Health Systems 1

  790,000     2,622,800               HEALTH CARE TECHNOLOGY - 0.7%            

athenahealth 1,2,6

  32,500     5,172,050  

Medidata Solutions 1

  72,750     5,860,740                         11,032,790               LIFE SCIENCES TOOLS & SERVICES - 1.0%            

Bio-Rad Laboratories Cl. A 1

  34,198     9,867,491  

Bio-Techne

  26,843     3,971,422  

†PRA Health Sciences 1

  16,000     1,493,760                         15,332,673               PHARMACEUTICALS - 0.1%            

Formosa Laboratories

  275,000     492,481  
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS 2018 Semiannual Report to Stockholders | 41
 
Royce Value Trust     Schedule of Investments (continued)

    SHARES     VALUE                   HEALTH CARE (continued)             PHARMACEUTICALS (continued)            

Theravance Biopharma 1,2

  34,291   $ 777,720                         1,270,201     Total (Cost $41,923,713)         65,704,437                   INDUSTRIALS 30.8%             AEROSPACE & DEFENSE - 3.4%            

Austal

  788,670     1,085,599  

Ducommun 1

  117,200     3,878,148  

HEICO Corporation

  260,346     18,987,052  

HEICO Corporation Cl. A

  157,828     9,619,586  

Hexcel Corporation

  51,400     3,411,932  

Magellan Aerospace

  186,800     2,281,982  

Teledyne Technologies 1

  5,900     1,174,454  

Wesco Aircraft Holdings 1

  935,364     10,522,845                         50,961,598               AIR FREIGHT & LOGISTICS - 1.4%            

Expeditors International of Washington

  143,000     10,453,300  

Forward Air

  170,750     10,087,910                         20,541,210               BUILDING PRODUCTS - 0.4%            

Burnham Holdings Cl. B 4

  36,000     543,960  

Patrick Industries 1

  15,775     896,809  

Simpson Manufacturing

  59,900     3,725,181                         5,165,950               COMMERCIAL SERVICES & SUPPLIES - 3.3%            

Atento

  528,700     3,621,595  

Biffa

  540,000     1,774,536  

CECO Environmental 1

  99,028     608,032  

CompX International Cl. A

  211,100     2,786,520  

Copart 1

  313,000     17,703,280  

Heritage-Crystal Clean 1

  146,527     2,945,193  

Horizon North Logistics

  500,000     1,000,266  

†Interserve 1

  450,000     377,119  

Kimball International Cl. B

  286,180     4,624,669  

Mobile Mini

  105,000     4,924,500  

Ritchie Bros. Auctioneers

  107,100     3,654,252  

Steelcase Cl. A

  40,000     540,000  

UniFirst Corporation

  22,270     3,939,563                         48,499,525               CONSTRUCTION & ENGINEERING - 3.2%            

EMCOR Group 2,6

  65,800     5,012,644  

IES Holdings 1

  594,244     9,953,587  

†Infrastructure and Energy Alternatives 1

  500,000     4,655,000  

†Infrastructure and Energy Alternatives

           

(Warrants) 1,5

  625,000     475,000  

Jacobs Engineering Group

  169,900     10,786,951  

KBR

  337,400     6,046,208  

Sterling Construction 1,2,6

  122,300     1,593,569  

Valmont Industries 2

  65,345     9,850,759                         48,373,718               ELECTRICAL EQUIPMENT - 1.0%            

AZZ

  5,000     217,250  

LSI Industries

  263,000     1,404,420  

Powell Industries

  94,500     3,291,435  

Preformed Line Products

  91,600     8,132,248  

Williams Industrial Services Group 1,4

  631,820     1,895,460                         14,940,813               INDUSTRIAL CONGLOMERATES - 0.7%            

A. Soriano

  2,791,000     313,787  

Raven Industries

  251,725     9,678,826                         9,992,613               MACHINERY - 10.5%            

Chen Hsong Holdings

  1,159,000     295,452  

CIRCOR International 1

  143,184     5,292,081  

Colfax Corporation 1

  82,242     2,520,717  

Deutz

  115,000     888,375  

Donaldson Company

  193,559     8,733,382  

Exco Technologies

  110,000     743,848  

Franklin Electric

  129,300     5,831,430  

Graco

  241,028     10,899,286  

Hyster-Yale Materials Handling Cl. A

  10,000     642,500  

IDEX Corporation

  53,900     7,356,272  

John Bean Technologies

  103,226     9,176,791  

Kadant

  78,100     7,509,315  

Kennametal

  160,100     5,747,590  

Lincoln Electric Holdings

  121,660     10,676,882  

Lindsay Corporation 2,6

  80,000     7,759,200  

NN

  308,700     5,834,430  

Nordson Corporation

  24,296     3,119,849  

Proto Labs 1

  10,000     1,189,500  

RBC Bearings 1

  109,600     14,117,576  

Sun Hydraulics

  366,118     17,643,227  

Tennant Company

  111,900     8,840,100  

Titan International

  173,100     1,857,363  

Watts Water Technologies Cl. A

  61,000     4,782,400  

Westinghouse Air Brake Technologies

  73,100     7,206,198  

Woodward

  104,600     8,039,556                         156,703,320               MARINE - 1.8%            

Clarkson

  371,100     11,264,466  

Eagle Bulk Shipping 1

  320,478     1,743,400  

Kirby Corporation 1

  161,900     13,534,840                         26,542,706               PROFESSIONAL SERVICES - 1.5%            

ASGN 1,2

  106,700     8,342,873  

Heidrick & Struggles International

  50,480     1,766,800  

ManpowerGroup

  107,200     9,225,632  

Quess Corporation 1

  15,720     261,113  

Staffline Group

  120,810     1,493,944  

TrueBlue 1

  56,245     1,515,803                         22,606,165               ROAD & RAIL - 1.8%            

Genesee & Wyoming Cl. A 1

  15,000     1,219,800  

Knight-Swift Transportation Holdings Cl. A 2

  122,400     4,676,904  

Landstar System

  116,760     12,750,192  

Patriot Transportation Holding 1

  139,100     2,990,650  

Saia 1,2,6

  40,000     3,234,000  

Universal Logistics Holdings 2

  78,916     2,071,545                         26,943,091               TRADING COMPANIES & DISTRIBUTORS - 1.8%            

Air Lease Cl. A

  226,600     9,510,402  

Central Steel & Wire 4

  4,862     2,980,406  

Houston Wire & Cable 1,3

  877,363     7,457,585  

SIG

  940,000     1,733,070  

†SiteOne Landscape Supply 1

  25,000     2,099,250  
42 | 2018 Semiannual Report to Stockholders THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
 
June 30, 2018 (unaudited)
  Schedule of Investments (continued)

    SHARES     VALUE                   INDUSTRIALS (continued)             TRADING COMPANIES & DISTRIBUTORS (continued)            

Watsco

  20,400   $ 3,636,912                         27,417,625     Total (Cost $270,653,334)         458,688,334                   INFORMATION TECHNOLOGY 19.3%             COMMUNICATIONS EQUIPMENT - 0.3%            

ADTRAN 2

  214,973     3,192,349  

Mitel Networks 1

  100,000     1,097,000                         4,289,349               ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS - 9.7%            

Anixter International 1,2,6

  63,795     4,038,224  

Bel Fuse Cl. B

  30,238     631,974  

Cognex Corporation 2,6

  350,600     15,640,266  

Coherent 1

  60,400     9,447,768  

†eMagin Corporation (Warrants) 1,5

  50,000     12,500  

Fabrinet 1

  285,600     10,535,784  

FARO Technologies 1

  179,437     9,752,401  

FLIR Systems

  611,637     31,786,775  

Horiba

  12,000     839,995  

IPG Photonics 1,2,6

  51,100     11,274,193  

Littelfuse

  13,900     3,171,702  

National Instruments

  261,850     10,992,463  

†nLIGHT 1,2

  34,400     1,137,264  

Perceptron 1

  357,700     3,773,735  

Plexus Corporation 1

  150,600     8,966,724  

Richardson Electronics

  573,732     5,588,150  

Rogers Corporation 1

  32,366     3,607,514  

Seeing Machines 1

  20,131,784     3,321,116  

TTM Technologies 1,2,6

  496,400     8,751,532  

Wasion Holdings

  1,500,000     814,469                         144,084,549               INTERNET SOFTWARE & SERVICES - 2.3%            

†Alarm.com Holdings 1

  10,000     403,800  

Care.com 1

  110,000     2,296,800  

comScore 1

  390,836     8,520,225  

†Etsy 1

  61,100     2,577,809  

HolidayCheck Group 1

  94,900     348,542  

j2 Global

  81,820     7,086,430  

QuinStreet 1

  180,254     2,289,226  

Rhythmone 1

  97,457     218,652  

Solium Capital 1

  187,400     1,640,721  

Stamps.com 1

  35,700     9,033,885  

Support.com 1

  216,766     617,783                         35,033,873               IT SERVICES - 0.7%            

Acxiom Corporation 1

  48,000     1,437,600  

Conduent 1

  20,000     363,400  

CSE Global

  3,450,000     1,088,807  

Hackett Group (The)

  417,266     6,705,465  

Innodata 1

  224,314     224,314  

Unisys Corporation 1

  60,000     774,000                         10,593,586               SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 4.0%            

Advanced Energy Industries 1

  20,000     1,161,800  

Brooks Automation 2,6

  351,700     11,472,454  

Cabot Microelectronics

  38,400     4,130,304  

Cohu

  143,350     3,513,508  

Diodes 1

  270,850     9,336,199  

Entegris

  182,800     6,196,920  

Kulicke & Soffa Industries 2

  66,200     1,576,884  

MKS Instruments

  42,010     4,020,357  

Nova Measuring Instruments 1

  39,500     1,076,375  

Photronics 1

  183,700     1,465,008  

Rudolph Technologies 1,2

  84,500     2,501,200  

Silicon Motion Technology ADR

  25,000     1,322,250  

Teradyne

  130,000     4,949,100  

†Universal Display

  11,650     1,001,900  

Veeco Instruments 1

  17,500     249,375  

Versum Materials

  123,000     4,569,450  

Xperi 2

  60,000     966,000                         59,509,084               SOFTWARE - 1.9%            

†Altair Engineering Cl. A 1

  5,000     170,900  

ANSYS 1,2,6

  81,200     14,143,416  

Manhattan Associates 1

  75,000     3,525,750  

Monotype Imaging Holdings

  117,700     2,389,310  

Pegasystems

  15,200     832,960  

PTC 1

  8,600     806,766  

RealNetworks 1

  170,879     632,252  

Rosetta Stone 1

  40,000     641,200  

SS&C Technologies Holdings

  12,000     622,800  

StatPro Group

  400,000     907,989  

TiVo

  81,900     1,101,555  

†Workiva Cl. A 1

  100,000     2,440,000                         28,214,898               TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS - 0.4%            

Cray 1,2

  102,500     2,521,500  

Diebold Nixdorf

  316,600     3,783,370                         6,304,870     Total (Cost $186,393,537)         288,030,209                   MATERIALS 8.6%             CHEMICALS - 3.3%            

Chase Corporation

  36,100     4,232,725  

FutureFuel Corporation

  48,500     679,485  

Hawkins

  86,178     3,046,392  

†Ingevity Corporation 1

  17,900     1,447,394  

Innospec

  36,883     2,823,394  

Minerals Technologies

  120,993     9,116,823  

NewMarket Corporation

  11,000     4,449,500  

Platform Specialty Products 1

  190,000     2,204,000  

Quaker Chemical

  132,669     20,546,448                         48,546,161               CONSTRUCTION MATERIALS - 0.1%            

†China Resources Cement Holdings

  800,000     810,646               CONTAINERS & PACKAGING - 0.3%            

Mayr-Melnhof Karton

  34,000     4,589,921               METALS & MINING - 4.5%            

Agnico Eagle Mines

  15,000     687,450  

Alamos Gold Cl. A

  803,300     4,576,668  

Ampco-Pittsburgh 1

  36,966     378,901  

Corsa Coal 1

  700,000     607,006  

Ferroglobe

  50,000     428,500  

Ferroglobe (Warranty Insurance Trust) 1,5

  49,300     0  

Franco-Nevada Corporation

  107,300     7,835,046  

Gold Fields ADR

  370,000     1,320,900  
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS 2018 Semiannual Report to Stockholders | 43
 
Royce Value Trust June 30, 2018 (unaudited)
  Schedule of Investments (continued)

    SHARES     VALUE                   MATERIALS (continued)             METALS & MINING (continued)            

Haynes International 2,6

  113,900   $ 4,184,686  

Hecla Mining

  321,300     1,118,124  

Lundin Mining

  640,000     3,558,666  

MAG Silver 1

  198,900     2,150,109  

Major Drilling Group International 1

  1,042,757     5,504,685  

Mongolian Mining 1

  12,000,000     195,778  

Pretium Resources 1

  165,000     1,213,669  

Reliance Steel & Aluminum

  193,720     16,958,249  

Royal Gold

  16,600     1,541,144  

Sandstorm Gold 1

  270,000     1,215,000  

Synalloy Corporation

  178,800     3,567,060  

Tahoe Resources 1

  646,000     3,178,320  

VanEck Vectors Junior Gold Miners ETF

  8,000     261,600  

Worthington Industries

  148,000     6,211,560                         66,693,121               PAPER & FOREST PRODUCTS - 0.4%            

Neenah

  16,700     1,416,995  

Stella-Jones

  142,000     5,172,768                         6,589,763     Total (Cost $98,050,104)         127,229,612                   REAL ESTATE 3.7%             EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) - 0.0%            

Irish Residential Properties REIT

  250,000     402,891  

New York REIT

  15,000     273,600                         676,491               REAL ESTATE MANAGEMENT & DEVELOPMENT - 3.7%            

Altus Group

  24,200     539,537  

FirstService Corporation

  184,600     14,036,984  

FRP Holdings 1

  188,558     12,209,130  

Kennedy-Wilson Holdings

  111,300     2,353,995  

Marcus & Millichap 1

  198,713     7,751,794  

Real Estate Investors

  1,000,000     706,066  

RMR Group Cl. A 2,6

  27,200     2,133,840  

St. Joe Company (The) 1

  197,000     3,536,150  

Tejon Ranch 1,2

  478,479     11,627,040                         54,894,536     Total (Cost $33,757,570)         55,571,027                   TELECOMMUNICATION SERVICES 0.5%             DIVERSIFIED TELECOMMUNICATION SERVICES - 0.1%            

China Communications Services

  750,182     475,222  

HKBN

  1,000,000     1,539,717                         2,014,939               WIRELESS TELECOMMUNICATION SERVICES - 0.4%            

Boingo Wireless 1

  50,000     1,129,500  

Telephone and Data Systems

  165,270     4,531,703                         5,661,203     Total (Cost $6,378,985)         7,676,142                   UTILITIES 0.4%             GAS UTILITIES - 0.3%            

UGI Corporation

  73,800     3,842,766               INDEPENDENT POWER & RENEWABLE ELECTRICITY PRODUCER - 0.1%            

†Vistra Energy 1

  65,200     1,542,632     Total (Cost $4,181,537)         5,385,398                   TOTAL COMMON STOCKS               (Cost $1,064,501,663)         1,489,820,245                   REPURCHASE AGREEMENT 3.8%             Fixed Income Clearing Corporation, 0.35% dated 6/29/18, due 7/2/18, maturity value
$57,596,680 (collateralized by obligations of various U.S. Government Agencies, 1.75%
due 11/30/21, valued at $58,751,694)
  (Cost $57,595,000)         57,595,000                   TOTAL INVESTMENTS 103.8%               (Cost $1,122,096,663)         1,547,415,245                   LIABILITIES LESS CASH AND OTHER ASSETS (3.8)%         (57,109,348 )                             NET ASSETS 100.0%       $ 1,490,305,897    
New additions in 2018.
1
Non-income producing.
2
All or a portion of these securities were pledged as collateral in connection with the Fund’s revolving credit agreement at June 30, 2018. Total market value of pledged securities at June 30, 2018, was $122,875,447.
3
At June 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. See Notes to Financial Statements.
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
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. See Notes to Financial Statements.
6
At June 30, 2018, a portion of these securities were rehypothecated in connection with the Fund’s revolving credit agreement in the aggregate amount of $66,358,963.
     
Bold indicates the Fund’s 20 largest equity holdings in terms of June 30, 2018, market value.
     
TAX INFORMATION: The cost of total investments for Federal income tax purposes was $1,122,991,077. At June 30, 2018, net unrealized appreciation for all securities was $424,424,168 consisting of aggregate gross unrealized appreciation of $521,620,171 and aggregate gross unrealized depreciation of $97,196,003. The primary cause of the difference between book and tax basis cost is the timing of the recognition of losses on securities sold.

44 | 2018 Semiannual Report to Stockholders THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
 
Royce Value Trust   June 30, 2018 (unaudited)
  Statement of Assets and Liabilities
ASSETS:         Investments at value          

Non-Affiliated Companies

  $ 1,481,769,707    

Affiliated Companies

    8,050,538     Repurchase agreements (at cost and value)     57,595,000     Cash and foreign currency     345,756     Receivable for investments sold     16,278,875     Receivable for dividends and interest     967,109     Prepaid expenses and other assets     774,384     Total Assets     1,565,781,369     LIABILITIES:         Revolving credit agreement     70,000,000     Payable for investments purchased     4,729,496     Payable for investment advisory fee     528,153     Payable for directors’ fees     55,268     Payable for interest expense     19,176     Accrued expenses     141,245     Deferred capital gains tax     2,134     Total Liabilities     75,475,472     Net Assets   $ 1,490,305,897     ANALYSIS OF NET ASSETS:         Paid-in capital - $0.001 par value per share; 85,916,727 shares outstanding (150,000,000 shares authorized)   $ 1,027,312,345     Undistributed net investment income (loss)     9,835,467     Accumulated net realized gain (loss) on investments and foreign currency     77,928,483     Net unrealized appreciation (depreciation) on investments and foreign currency     425,339,463     Quarterly distributions     (50,109,861 )   Net Assets (net asset value per share - $17.35)   $ 1,490,305,897     Investments at identified cost   $ 1,064,501,663    
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2018 Semiannual Report to Stockholders | 45
 
Royce Value Trust    
  Statement of Changes in Net Assets                       SIX MONTHS ENDED
6/30/18
(UNAUDITED)
  YEAR ENDED 12/31/17                     INVESTMENT OPERATIONS:                 Net investment income (loss)   $ 11,560,590     $ 10,969,682     Net realized gain (loss) on investments and foreign currency     73,709,218       81,750,067     Net change in unrealized appreciation (depreciation) on investments and foreign currency     (46,494,859 )     146,329,916     Net increase (decrease) in net assets from investment operations     38,774,949       239,049,665     DISTRIBUTIONS:                 Net investment income     (5,612,304 )1     (10,679,021 )   Net realized gain on investments and foreign currency     (44,497,557 )1     (85,441,777 )   Total distributions     (50,109,861 )     (96,120,798 )   CAPITAL STOCK TRANSACTIONS:                 Reinvestment of distributions     21,191,356       41,508,874     Total capital stock transactions     21,191,356       41,508,874     Net Increase (Decrease) In Net Assets     9,856,444       184,437,741     NET ASSETS:                   Beginning of period     1,480,449,453       1,296,011,712     End of period (including undistributed net investment income (loss) of $9,835,467 at 6/30/18 and $(1,725,122) at 12/31/17)   $ 1,490,305,897     $ 1,480,449,453    
1 Amounts are subject to change and recharacterization at year end.
46 | 2018 Semiannual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
 
Royce Value Trust   Six Months Ended June 30, 2018 (unaudited)
  Statement of Operations
INVESTMENT INCOME:         INCOME:         Dividends   $ 16,504,205     Foreign withholding tax     (299,311 )   Interest     102,464     Rehypothecation income     179,246     Total income     16,486,604     EXPENSES:           Investment advisory fees     3,129,134     Interest expense     1,085,601     Stockholder reports     195,719     Administrative and office facilities     195,651     Custody and transfer agent fees     106,857     Directors’ fees     96,159     Professional fees     50,760     Other expenses     66,706     Total expenses     4,926,587     Compensating balance credits     (573 )   Net expenses     4,926,014     Net investment income (loss)     11,560,590       REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY:         NET REALIZED GAIN (LOSS):           Investments     73,716,050     Foreign currency transactions     (6,832 )   NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION):           Investments in Non-Affiliated Companies and foreign currency translations     (47,455,088 )   Investments in Affiliated Companies     939,879     Other assets and liabilities denominated in foreign currency     20,350     Net realized and unrealized gain (loss) on investments and foreign currency     27,214,359     NET INCREASE (DECREASE) IN NET ASSETS FROM INVESTMENT OPERATIONS   $ 38,774,949    
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2018 Semiannual Report to Stockholders | 47
 
Royce Value Trust   Six Months Ended June 30, 2018 (unaudited)
  Statement of Cash Flows
CASH FLOWS FROM OPERATING ACTIVITIES:         Net increase (decrease) in net assets from investment operations   $ 38,774,949     Adjustments to reconcile net increase (decrease) in net assets from investment operations to net cash provided by operating activities:          

Purchases of long-term investments

    (254,511,184 )  

Proceeds from sales and maturities of long-term investments

    281,102,143    

Net purchases, sales and maturities of short-term investments

    (8,928,000 )  

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

    24,789    

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

    (78,323 )  

Net change in unrealized appreciation (depreciation) on investments

    46,515,209    

Net realized gain (loss) on investments and foreign currency

    (73,709,218 )   Net cash provided by operating activities     29,190,365     CASH FLOWS FROM FINANCING ACTIVITIES:         Distributions     (50,109,861 )   Reinvestment of distributions     21,191,356     Net cash used for financing activities     (28,918,505 )   INCREASE (DECREASE) IN CASH:     271,860     Cash and foreign currency at beginning of period     73,896     Cash and foreign currency at end of period   $ 345,756    
48 | 2018 Semiannual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
 
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.
    SIX MONTHS   YEARS ENDED                   ENDED 6/30/18                                             (UNAUDITED)   12/31/17   12/31/16   12/31/15   12/31/14   12/31/13   Net Asset Value, Beginning of Period   $ 17.50     $ 15.85     $ 13.56     $ 16.24     $ 18.17     $ 15.40     INVESTMENT OPERATIONS:                                                 Net investment income (loss)     0.13       0.13       0.12       0.12       0.12       0.12     Net realized and unrealized gain (loss) on investments and foreign currency     0.34       2.74       3.27       (1.48 )     (0.13 )     4.89     Net increase (decrease) in net assets from investment operations     0.47       2.87       3.39       (1.36 )     (0.01 )     5.01     DISTRIBUTIONS:                                                 Net investment income     (0.07 )1     (0.13 )     (0.13 )     (0.16 )     (0.14 )     (0.11 )   Net realized gain on investments and foreign currency     (0.52 )1     (1.03 )     (0.89 )     (1.08 )     (1.68 )     (2.08 )   Total distributions     (0.59 )     (1.16 )     (1.02 )     (1.24 )     (1.82 )     (2.19 )   CAPITAL STOCK TRANSACTIONS:                                                 Effect of reinvestment of distributions by Common Stockholders     (0.03 )     (0.06 )     (0.08 )     (0.08 )     (0.10 )     (0.05 )   Total capital stock transactions     (0.03 )     (0.06 )     (0.08 )     (0.08 )     (0.10 )     (0.05 )   Net Asset Value, End of Period   $ 17.35     $ 17.50     $ 15.85     $ 13.56     $ 16.24     $ 18.17     Market Value, End of Period   $ 15.80     $ 16.17     $ 13.39     $ 11.77     $ 14.33     $ 16.01     TOTAL RETURN:2                                                 Net Asset Value     2.84 %3     19.31 %     26.87 %     (8.09 )%     0.78 %     34.14 %   Market Value     1.36 %3     30.49 %     23.48 %     (9.59 )%     0.93 %     35.63 %   RATIOS BASED ON AVERAGE NET ASSETS:                                                 Investment advisory fee expense4     0.42 %5     0.43 %     0.51 %     0.50 %     0.46 %     0.54 %   Other operating expenses     0.24 %5     0.22 %     0.22 %     0.18 %     0.15 %     0.25 %   Total expenses (net)     0.66 %5     0.65 %     0.73 %     0.68 %     0.61 %     0.79 %   Expenses net of fee waivers and excluding interest expense     0.52 %5     0.54 %     0.62 %     0.61 %     0.55 %     0.65 %   Expenses prior to fee waivers and balance credits     0.66 %5     0.65 %     0.73 %     0.68 %     0.61 %     0.79 %   Expenses prior to fee waivers     0.66 %5     0.65 %     0.73 %     0.68 %     0.61 %     0.79 %   Net investment income (loss)     1.56 %5     0.80 %     0.85 %     0.78 %     0.72 %     0.70 %   SUPPLEMENTAL DATA:                                                 Net Assets, End of Period (in thousands)   $ 1,490,306     $ 1,480,449     $ 1,296,012     $ 1,072,035     $ 1,231,955     $ 1,307,829     Portfolio Turnover Rate     17 %     19 %     28 %     35 %     40 %     33 %   REVOLVING CREDIT AGREEMENT:                                                 Asset coverage     2229 %     2215 %     1951 %     1631 %     1860 %     1289 %   Asset coverage per $1,000   $ 22,290     $ 22,149     $ 19,514     $ 16,315     $ 18,599     $ 12,889    
1
Amounts are subject to change and recharacterization at year end.
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
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 over a 12-month basis.
5 Annualized
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2018 Semiannual Report to Stockholders | 49
 
Royce Value Trust

Notes to Financial Statements (unaudited)

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 June 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     $1,470,467,378       $17,562,767       $1,790,100       $1,489,820,245     Cash Equivalents           57,595,000             57,595,000    

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 six months ended June 30, 2018, securities valued at $592,953 were transferred from Level 1 to Level 2 and securities valued at $94,451,255 were transferred from Level 2 to Level 1 within the fair value hierarchy.


50 | 2018 Semiannual Report to Stockholders
 
Royce Value Trust

Notes to Financial Statements (unaudited) (continued)

VALUATION OF INVESTMENTS (continued):

Level 3 Reconciliation:

  BALANCE AS OF 12/31/17 PURCHASES REALIZED GAIN (LOSS) UNREALIZED GAIN (LOSS)1 BALANCE AS OF 6/30/18   Common Stocks $891,600 $932,126 $ – $(33,626) $1,790,100   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 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       6/30/18     VALUATION TECHNIQUE(S)     UNOBSERVABLE INPUT(S)     RANGE AVERAGE     AN INCREASE IN INPUT1   Common Stocks     $1,790,100     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 June 30, 2018 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”.

  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 gains in 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. Distributions to Common Stockholders are recorded on ex-dividend date. To the extent that distributions in any year 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


2018 Semiannual Report to Stockholders | 51
 
Royce Value Trust

Notes to Financial Statements (unaudited) (continued)

DISTRIBUTIONS (continued): 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. Premiums 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 (“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 1,329,003 and 2,795,800 shares of Common Stock as reinvestment of distributions for the six months ended June 30, 2018 and the year ended December 31, 2017, respectively.

  Borrowings:

The Fund is party to a revolving credit agreement (the credit agreement) with BNP Paribas Prime Brokerage International, Limited (BNPPI). 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.

As of June 30, 2018, the Fund has outstanding borrowings of $70,000,000. During the six months ended June 30, 2018, the Fund borrowed an average daily balance of $70,000,000 at a weighted average borrowing cost of 3.08%. The maximum amount outstanding during the six months ended June 30, 2018 was $70,000,000. As of June 30, 2018, the aggregate value of rehypothecated securities was $66,358,963. During the six months ended June 30, 2018, the Fund earned $179,246 in fees from rehypothecated securities.


52 | 2018 Semiannual Report to Stockholders
 
Royce Value Trust

Notes to Financial Statements (unaudited) (continued)

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 for the rolling 60-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 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 six rolling 60-month periods ended June 2018, the Fund’s investment performance ranged from 24% to 30% below the investment performance of the S&P 600. Accordingly, the net investment advisory fee consisted of a Basic Fee of $6,258,272 and a net downward adjustment of $3,129,138 for the performance of the Fund relative to that of the S&P 600. For the six months ended June 30, 2018, the Fund expensed Royce investment advisory fees totaling $3,129,134.

  Purchases and Sales of Investment Securities:

For the six months ended June 30, 2018, the costs of purchases and proceeds from sales of investment securities, other than short-term securities, amounted to $255,499,437 and $258,270,619, 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 Royce 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 six months ended June 30, 2018, were as follows:


COST OF PURCHASES     PROCEEDS FROM SALES     REALIZED GAIN (LOSS)   $8,376,878     $ –     $ –  
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 June 30, 2018:


    SHARES   MARKET VALUE   COST OF   PROCEEDS   REALIZED   CHANGE IN NET
UNREALIZED
APPRECIATION
  DIVIDEND   SHARES   MARKET VALUE AFFILIATED COMPANY   12/31/17   12/31/17   PURCHASES   FROM SALES   GAIN (LOSS)   (DEPRECIATION)   INCOME   6/30/18   6/30/18   HG Holdings     912,235     $ 793,645       $ –       $ –       $ –     $ (200,692)       $ –       912,235     $ 592,953     Houston Wire & Cable     877,363       6,317,014          –          –          –       1,140,571          –       877,363       7,457,585                 $ 7,110,659                       $ –     $ 939,879       $ –             $ 8,050,538    
Subsequent Events:

On July 5, 2018, the Fund completed a rights offering of Common Stock to its stockholders at the rate of one common share for each 10 rights held by stockholders of record on May 30, 2018. The rights offering resulted in the issuance of 7,120,544 common shares at a price of $15.33, and proceeds of $109,157,940 to the Fund prior to the deduction of estimated expenses of $545,000. The net asset value per share of the Fund’s Common Stock was reduced by approximately $0.16 per share as a result of the issuance.


2018 Semiannual Report to Stockholders | 53
 
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     9,101     7,696   12/9/16   Distribution $0.14           7.940     18     10,111     8,446   12/12/17   Distribution $0.11           10.610     11     13,254     11,484   6/30/18       $ 8,975           1,062   $ 13,137   $ 11,162                                       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 $1.19 3           8.237     578     28,205     24,807   3/11/09   Distribution $0.22 3           4.260     228     41,314     34,212   12/2/10   Distribution $0.08           9.400     40     53,094     45,884   2011   Annual distribution total $0.53 3           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     75,987     64,222   2016   Annual distribution total $0.64           7.513     779     92,689     78,540   2017   Annual distribution total $ 0.69           8.746     783     109,076     98,254   2018   Year-to-Date distribution total $0.36           9.876     383               6/30/18       $ 8,900           10,791   $ 117,622   $ 107,802  
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.
54 | 2018 Semiannual Report to Stockholders
 
History Since Inception (continued)

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 $1.72 3               12.307       1,294       95,415       85,435   3/11/09     Distribution $0.32 3               6.071       537       137,966       115,669   12/2/10     Distribution $0.03               13.850       23       179,730       156,203   2011     Annual distribution total $0.78 3               13.043       656       161,638       139,866   2012     Annual distribution total $0.80               13.063       714       186,540       162,556   2013     Annual distribution total $2.19 4               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       231,781       201,185   2016     Annual distribution total $1.02               12.334       1,460       293,880       248,425   2017     Annual distribution total $1.16               14.841       1,495       350,840       324,176   2018     Year-to-Date distribution total $0.59               15.962       748                   6/30/18           $ 21,922               20,796     $ 360,603     $ 328,577  
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.
2018 Semiannual Report to Stockholders | 55
 
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 your 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 June 30, 2018.   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 June 30, 2018. 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.).
56 | 2018 Semiannual 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: 78 | Number of Funds Overseen: 22 | Tenure: Since 1982 Non-Royce Directorships: Director of Oxford Square Capital Corp.  Principal Occupation(s) During Past Five Years: Chairman of the Board of Managers of Royce & Associates, LP (“Royce”), the Funds’ investment adviser; Chief Executive Officer (1972–June 2016), President (1972-June 2014) of Royce.   Christopher D. Clark, Director1, President Age: 53 | Number of Funds Overseen: 22 | Tenure: Since 2014 Principal Occupation(s) During Past Five Years: Chief Executive Officer (since July 2016), President (since July 2014), Co-Chief Investment Officer (Since January 2014), Managing Director of Royce, a Member of the Board of Managers of Royce, having been employed by Royce since May 2007.       Patricia W. Chadwick, Director Age: 69 | Number of Funds Overseen: 22 | 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).   Christopher C. Grisanti, Director Age 56 | Number of Funds Overseen: 22 | Tenure: Since 2017 Non-Royce Directorships: None Principal Occupation(s) During Past Five Years: Co-Founder and Chief Executive Officer of Grisanti Capital Management LLC, an investment advisory firm (since 1999). Mr. Grisanti’s prior business experience includes serving as Director of Research and Portfolio Manager at Spears Benzak, Salomon & Farrell (from 1994 to 1999) and a senior associate at the law firm of Simpson, Thacher & Bartlett (from 1988 to 1994).   Stephen L. Isaacs, Director Age: 78 | Number of Funds Overseen: 22 | 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: 76 | Number of Funds Overseen: 41 | Tenure: Since 2004 Non-Royce Directorships: Director/Trustee of registered investment companies constituting the 19 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: 78 | Number of Funds Overseen: 22 | 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: 72 | Number of Funds Overseen: 41 | Tenure: Since 2001 Non-Royce Directorships: Director/Trustee of registered investment companies constituting the 19 Legg Mason Funds. Principal Occupation(s) During Past Five Years: Trustee Emeritus of Colgate University (since 2005); Board Member of Hill House, Inc. (since 1999); Formerly Director of TICC Capital Corp. (from 2003-2017): 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: 60 | Number of Funds Overseen: 22 | 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: 50 | 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: 55 | 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: 52 | Tenure: Since 2015 Principal Occupation(s) During Past Five Years: Chief Financial Officer, Chief Administrative Officer, and Managing Director 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: 51 | Tenure: 1996-2001 and Since 2002 Principal Occupation(s) During Past Five Years: General Counsel, Managing Director, and, since June 2015, a Member of the Board of Managers of Royce. Chief Legal and Compliance Officer and Secretary of Royce.   Lisa Curcio, Chief Compliance Officer Age: 58 | 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. 2018 Semiannual Report to Stockholders | 57
 
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 June 30, 2018, 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 June 30, 2018 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. Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and / or Russell ratings or underlying data and no party may rely on any Russell Indexes and / or Russell ratings and / or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell’s express written consent. Russell does not promote, sponsor or endorse the content of this communication. 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. Small Cap Index is an index of global small-cap stocks, excluding the United States. The S&P SmallCap 500 and 600 are indexes of U.S. large-cap and small-cap stocks, respectively, selected by Standard & Poor’s based on market size, liquidity, and industry grouping, among other factors. The CBOE Russell 2000 Volatility Index (RVX) measures market expectations of near-term volatility conveyed by Russell 2000 stock index option prices. 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. For the Morningstar Small Blend Category: © 2017 Morningstar. All Rights Reserved. The information regarding the category in this piece is: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. 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, LLC.
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 Global Value Trust, Royce Micro-Cap Trust, and Royce 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, 2017. 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 Global Value Trust, Royce Micro-Cap Trust, and Royce 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, 2016, filed with the Securities and Exchange Commission.   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.
58 | 2018 Semiannual Report to Stockholders
 
Board Approval of Investment Advisory Agreements

At meetings held on June 4-5, 2018, the Funds’ respective Boards of Directors, including all of the non-interested directors, approved the continuation of investment advisory agreements (each, an “Investment Advisory Agreement” and collectively, the “Investment Advisory Agreements”) between Royce & Associates, LP (“R&A”) and each of Royce Value Trust, Inc., Royce Micro-Cap Trust, Inc., and Royce Global Value Trust, Inc. (each, a “Fund” and collectively, the “Funds”). In reaching these decisions, each Board reviewed the materials provided by R&A, which included, among other things, information prepared internally by R&A and independently by Broadridge Financial Solutions, Inc. (“Broadridge”) using the database and methodology of Morningstar Associates, LLC (“Morningstar”) containing detailed investment advisory fee, expense ratio, and investment performance comparisons for the Funds with other funds in their respective “peer groups”, information regarding the past performance of the Funds and other registered investment companies managed by R&A and a memorandum outlining the legal duties of each Board prepared by independent counsel to the non-interested directors. R&A also provided the directors with an analysis of its profitability with respect to providing investment advisory services to each of the Funds. In addition, each Board took into account information furnished throughout the year at regular Board meetings, including reports on investment performance, stockholder services, regulatory compliance, brokerage commissions and research, and brokerage and other execution products and services provided to the Funds. Each Board also considered other matters it deemed important to the approval process, such as allocation of brokerage commissions, “soft dollar” research services R&A receives and other direct and indirect benefits to R&A and its affiliates, from their relationship with the relevant Fund. The directors also met throughout the year with investment advisory personnel from R&A. Each Board also noted R&A’s efforts to provide enhanced analytical tools to its investment staff along with the ongoing meetings conducted by R&A’s Co-Chief Investment Officers with portfolio managers experiencing performance challenges in an attempt to address such challenges. Each Board, in its deliberations, recognized that, for many of the Funds’ stockholders, the decision to purchase Fund shares included a decision to select R&A as the investment adviser and that there was a strong association in the minds of Fund stockholders between R&A and each Fund. In considering factors relating to the approval of the continuance of the Investment Advisory Agreements, the non-interested directors received assistance and advice from, and met separately with, their independent counsel. While all three of the Investment Advisory Agreements were considered at the same Board meetings, the Boards dealt with each agreement separately. Among other factors, the directors considered the following:   The nature, extent and quality of services provided by R&A: Each Board considered the following factors to be of fundamental importance to its consideration of whether to approve the continuance of the Investment Advisory Agreement: (i) R&A’s more than 40 years of value investing experience and track record; (ii) the history of long-tenured R&A portfolio managers managing the Funds; (iii) R&A’s focus on mid-cap, small-cap and micro-cap value investing; (iv) the consistency of R&A’s approach to managing the Funds and open-end mutual funds over more than 40 years; (v) the integrity and high ethical standards adhered to at R&A; (vi) R&A’s specialized experience in the area of trading small- and micro-cap securities; (vii) R&A’s historical ability to attract and retain portfolio management talent and (viii) R&A’s focus on stockholder interests as exemplified by expansive stockholder reporting and communications. The Boards also noted that R&A’s compensation policy arrangements strongly encourage portfolio manager investment in each Fund that they manage. Each Board reviewed the services that R&A provides to each Fund, including, but not limited to, managing each Fund’s investments in accordance with the stated policies of each Fund. Each Board considered the fact that R&A provided certain administrative services to the Funds at cost pursuant to the Administration Agreement between the Funds and R&A. Each Board determined that the services to be provided to each Fund by R&A would be the same as those that it previously provided to the relevant Fund. The Boards also took into consideration the histories, reputations and backgrounds of R&A’s portfolio managers for the Funds, finding that these would likely have an impact on the continued success of the Funds. Lastly, each Board noted R&A’s ability to attract and retain qualified and experienced personnel. The directors concluded that the investment advisory services provided by R&A to each Fund compared favorably to services provided by R&A to other R&A client accounts, including other funds, in both nature and quality, and that the scope of services provided by R&A would continue to be suitable for the Funds.   Investment performance of the Funds and R&A: Although the registered investment companies managed by R&A currently span a wider risk spectrum than they have historically, R&A generally emphasizes a risk-averse approach to investing. In light of that approach, each Board believes that risk-adjusted performance continues to be the most appropriate measure of each Fund’s investment performance. One measure of risk-adjusted performance the Boards use in their review of the Funds’ performance is the Sharpe Ratio. The Sharpe Ratio is a risk-adjusted measure of performance developed by Nobel Laureate William Sharpe. It is calculated by dividing a Fund’s annualized excess returns by its annualized standard deviation to determine reward per unit of risk. The higher the Sharpe Ratio, the better a Fund’s historical risk-adjusted performance. The Boards attach primary importance to risk-adjusted performance over relatively long periods of time, typically 3 to 10 years. It was noted, however, that Royce Global Value Trust, Inc. (“RGT”) had less than five full calendar years of performance because its inception date was October 18, 2013.       Overall, the Boards noted that financial markets were marked by increased return dispersion, declining correlation, and a steepening yield curve in 2017, just as they were in 2016. Similar to 2016, small-cap stocks enjoyed a very strong year in 2017 as a result of these factors. Unlike 2016, defensive and growth stocks outperformed cyclical and value stocks in 2017. Notwithstanding the market leadership of defensive and growth stocks in 2017, each of Royce Value Trust, Inc. (“RVT”) and Royce Micro-Cap Trust, Inc. (“RMT”) still enjoyed solid risk-adjusted performance in 2017. While each Board recognized that the solid performance of RVT and RMT in 2017 is not dispositive, it also noted that such performance during the more historically customary market environment that prevailed in 2017 was also not insignificant. The Boards noted that RVT and RMT also generally underperformed their respective peers, as evidenced by their Sharpe Ratios, from approximately March 2009 through the end of 2015. This post-2008 market period was marked by historically low interest rates and significant U.S. Federal Reserve market intervention. During this period, highly leveraged, non-earning companies and yield-oriented securities (e.g., master limited partnerships, real estate investment trusts, and utilities) generally outperformed the higher quality companies (e.g., those with solid balance sheets, low leverage, the ability to generate and effectively allocate free cash flow, and strong returns on invested capital) and cyclical companies favored by RVT and RMT. The directors also noted, however, that the relative performance for each of RVT and RMT during the more historically customary market cycle preceding the 2008 financial crisis was quite strong. Using data provided by Broadridge, the Sharpe Ratio for RVT placed in the 1st, 1st, 3rd, and 4th quartiles within the Morningstar Small Blend category while the Sharpe Ratio for RMT placed in the 2nd, 4th, 4th, and 4th quartiles within the Morningstar Small Blend category for the 1-year, 3-year, 5-year, and 10-year periods, respectively, ended December 31, 2017. The relevant Boards further noted that the use of leverage by each of RVT and RMT through preferred stock (prior to November 15, 2012) and borrowings resulted in higher volatility and worse down market performance. The 2017 market environment also enabled RGT to outperform its peers in 2017 as evidenced by its Sharpe Ratio. Using data provided by Broadridge, the Sharpe Ratio for RGT placed in the 1st and 2nd quartiles within the Morningstar World Small/Mid Stock category for the 1-year and 3-year periods, respectively, ended December 31, 2017. The Board noted the inherent limitations of using 1-year and 3-year Sharpe Ratios in evaluating RGT’s investment performance.
2018 Semiannual Report to Stockholders | 59
 
Board Approval of Investment Advisory Agreements

    In addition to each Fund’s risk–adjusted performance, the Boards also reviewed and considered the absolute total returns and down market performance for each Fund and the long-term performance records of each of RVT and RMT for periods of 10 years and longer. The Boards further noted that R&A manages a number of funds that invest in micro-cap, small-cap, and mid-cap issuers, many of which had outperformed their benchmark indexes and their competitors during the periods prior to the U.S. Federal Reserve’s near zero interest rate policy and related market interventions and during 2017 as noted above. Although each Board recognized that past performance is not necessarily an indicator of future results, it found that R&A had the necessary qualifications, experience and track record in managing micro-cap, small-cap, and mid-cap securities to manage the relevant Fund. Each Board determined that R&A continued to be an appropriate investment adviser for the relevant Fund and concluded that the relevant Fund’s performance supported the approval of the continuance of its Investment Advisory Agreement.   Cost of the services provided and profits realized by R&A from its relationship with the Funds: Each Board considered the cost of the services provided by R&A and profits realized by R&A from its relationship with each Fund. As part of the analysis, each Board discussed with R&A its methodology in allocating its costs to each Fund and concluded that R&A’s allocations were reasonable. The RVT Board noted that RVT was not profitable to R&A during the year ended December 31, 2017. The Boards of RMT and RGT concluded that R&A’s profits during the year ended December 31, 2017 in respect of RMT and RGT, respectively, were reasonable in relation to the nature and quality of services provided.   The extent to which economies of scale would be realized as the Funds grow and whether fee levels would reflect such economies of scale: Each Board considered whether there have been economies of scale in respect of the management of each Fund, whether each Fund has appropriately benefited from any economies of scale and whether there is potential for realization of any further economies of scale. Each Board noted the time and effort involved in managing portfolios of micro-, small- and mid-cap stocks and that they did not involve the same efficiencies as do portfolios of large-cap stocks. The directors noted that, as closed-end funds, the Funds generally would not be expected to have significant inflows of capital that might produce increasing economies of scale. Each Board concluded that the current fee structure for each Fund was reasonable, that stockholders sufficiently participated in economies of scale and that no changes were currently necessary.   Comparison of services to be rendered and fees to be paid to those under other investment advisory contracts, such as contracts of the same and other investment advisers or other clients: Each Board reviewed the investment advisory fee paid by each Fund and compared both the services to be rendered and the fees to be paid under the Investment Advisory Agreements to other contracts of R&A and to contracts of other investment advisers to registered investment companies investing in small- and micro-cap stocks, as provided by Morningstar. The Boards noted that the contractual advisory fee rate for RVT and RMT was lower than the median of its Broadridge-assigned peers while the contractual advisory fee rate for RGT was higher than the median of its Broadridge-assigned peers. Each Board further noted the importance of the net expense ratio in measuring a fund’s efficiency, particularly in light of the variations in the mutual fund industry as to which entity is responsible for particular types of expenses.       In the case of RVT, its Board noted that it had a 1.00% basic fee that is subject to adjustment up or down (up to 0.50% in either direction) based on its performance versus the S&P 600 SmallCap Index over a rolling period of 60 months. The fee is charged on average net assets over that rolling period. As a result, in a rising market, the fee will be smaller than a fee calculated on the current year’s average net assets, and vice versa. The Board determined that the performance adjustment feature continued to serve as an appropriate incentive to R&A to manage RVT for the benefit of its long-term common stockholders. The Board also noted that the fee arrangement, which also includes a provision for no fee in periods where RVT’s trailing three-year performance is negative, requires R&A to measure RVT’s performance monthly against the S&P 600, an unmanaged index. Instead of receiving a set fee regardless of its performance, R&A is penalized for poor performance. The Board noted that RVT’s net expense ratio of 0.65% placed it in the 1st quartile within its Broadridge-assigned peer group for 2017. In the case of RMT, the Board noted that it also had a 1.00% basic fee subject to adjustment up or down based on its performance versus the Russell 2000 Index over a rolling 36 month period. The fee is charged on average net assets over that rolling period. As a result, in a rising market, the fee will be smaller than a fee calculated on the current year’s average net assets, and vice versa. The Board determined that the performance adjustment feature continued to serve as an incentive to R&A to manage RMT for the benefit of its long-term common stockholders. The Board noted that RMT’s net expense ratio of 0.89% placed it in the 1st quartile within its Broadridge-assigned peer group for 2017. The directors further noted that RMT’s net expense ratio was actually 22 basis points lower than the median of its Broadridge-assigned peer group and 45 basis points lower than the average expense ratio for the 44 non-institutional, non-ETF domestic funds with weighted average market capitalizations of less than $1 billion within the Morningstar database.. Finally, in the case of RGT, the Board noted that its net expense ratio of 1.67% placed it in the 4th quartile within its Broadridge-assigned peer group for 2017, 44 basis points above the peer group median. The directors noted, however, that RGT had the lowest weighted average market capitalization within that peer group.       The Boards also noted that R&A manages the Funds in an active fashion. The industry accepted metric for measuring how actively an equity portfolio is managed is called “active share.” In particular, active share measures how much the holdings of an equity portfolio differ from the holdings of its appropriate passive benchmark index. At the extremes, a portfolio with no holdings in common with the benchmark would have 100% active share, while a portfolio that is identical to the benchmark would have 0% active share. R&A presented a chart to the Boards which demonstrated that funds with high active share scores had higher expense ratios than funds with lower active share scores due to the resources required for the active management of those funds. R&A also provided a 2018 article from a mutual fund news website to each Board that indicated that R&A’s open-end funds had the third highest asset-weighted active share among the open-end fund complexes that were examined (excluding all ETFs, all money market funds, and all funds-of-funds). The Boards noted that the active shares for RVT, RMT, and RGT were 89%, 95%, and 97%, respectively, for the calendar year ended December 31, 2017.       Each Board also considered fees charged by R&A to institutional and other clients and noted that, given the greater levels of services that R&A provides to registered investment companies such as the Funds as compared to other accounts, the base investment advisory fee for RVT and RMT and the advisory fee for RGT compared favorably to the investment advisory fees charged to those other accounts.       No single factor was cited as determinative to the decision of the directors. Rather, after weighing all of the considerations and conclusions discussed above, each entire Board, including all of the non-interested directors, approved the continuation of the relevant Investment Advisory Agreement, concluding that the continuation of such agreements was in the best interest of the shareholders of the respective Funds and that each Fund’s investment advisory fee rate was reasonable in relation to the services provided.
60 | 2018 Semiannual Report to Stockholders
 
                                                                                                                                                                                                                                               

                                                 





                                        About The Royce Funds     Contact Us                             Unparalleled Knowledge + Experience
Pioneers in small-cap investing, with 40+ years of experience, depth of knowledge, and focus.

Independent Thinking
The confidence to go against consensus, the insight to uncover opportunities others might miss, and the tenacity to stay the course through market cycles.

Specialized Approaches
Strategies that use value, core, or growth investment approaches to select micro-cap, small-cap, and mid-cap companies.

Unwavering Commitment
Our team of 18 portfolio managers have significant personal investments in the strategies they manage.
    GENERAL INFORMATION
General Royce Funds information including an overview of our firm and Funds
(800) 221-4268
                  COMPUTERSHARE
Transfer Agent and Registrar
Speak with a representative about:
• Your account, transactions, and forms
(800) 426-5523
                  FINANCIAL ADVISORS AND BROKER-DEALERS
Speak with your regional Royce contact regarding:
• Information about our firm, strategies, and Funds
• Fund Materials
(800) 337-6923
                                                                     

Item 2.   Code(s) of Ethics. Not applicable to this semi-annual report.

Item 3.   Audit Committee Financial Expert. Not applicable to this semi-annual report.

Item 4.   Principal Accountant Fees and Services. Not applicable to this semi-annual report.

Item 5.   Audit Committee of Listed Registrants. Not applicable to this semi-annual report.

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. Not applicable to this semi-annual report.

Item 8.   Portfolio Managers of Closed-End Management Investment Companies. Not applicable to this semi-annual report.

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) Not applicable to this semi-annual report.

(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: August 29, 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.

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                Chief Financial Officer       Date: August 29, 2018   Date: August 29, 2018