UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT
OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act File Number: 811-04875

Name of Registrant: Royce Value Trust, Inc.

Address of Registrant: 745 Fifth Avenue
New York, NY 10151

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

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


Item 1.       Reports to Shareholders.

                  DECEMBER 31, 2018                       2018 Annual     Review and Report to Stockholders                                                     Royce Global Value Trust                 Royce Micro-Cap Trust                 Royce Value Trust                                                                                                                                                                                                                                                          
Beginning on January 1, 2021, as permitted by regulations adopted by the U.S. Securities and Exchange Commission, paper copies of the Funds’ shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the Funds or from your financial intermediary (such as a broker-dealer or bank). Instead, the reports will be made available on the Funds’ website (www.roycefunds.com), and you will be notified by mail each time a report is posted and provided with a website link to access the report. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Funds electronically anytime by contacting your financial intermediary or, if you are a direct investor with the Funds, by calling 1-800-841-1180. Beginning on January 1, 2019, you may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Funds, you can call 1-800-841-1180 to let the Funds know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all Funds held in your account if you invest through your financial intermediary or all Funds held with our fund complex if you invest directly with the Funds.
                                    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   Why Dividend Reinvestment Is Important
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.
 
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 64 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.
 
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.
             
This page is not part of the 2018 Annual Report to Stockholders
     

       

Table of Contents                       Annual Review               Letter to Our Stockholders   2           Performance   7           Annual 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

  24          

Schedule of Investments

  26          

Other Financial Statements

  31           Royce Value Trust              

Manager’s Discussion of Fund Performance

  42          

Schedule of Investments

  44          

Other Financial Statements

  49           History Since Inception   60           Distribution Reinvestment and Cash Purchase Options   62           Directors and Officers   63           Notes to Performance and Other Important Information   64           Board Approval of Investment Advisory Agreement   65           Results of Stockholders Meeting   66  

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

Letter to Our Stockholders

2018: ANNUS HORRIBILIS
This was quite a memorable year for the equity markets—for reasons most investors would prefer to forget. A bull market ended with a bang that left many investors whimpering. Of course, the end of any upswing for share prices is bound to be disappointing—what made this pullback so jarring was its speed and severity. Back in the summer, everyone seemed to agree that valuations were stretched to the point where an adjustment to prices was all but inevitable, yet the force of the decline felt more like the engine of a precision-engineered sports car suddenly seizing than the anticipated tapping of the brakes. So while 2018’s downturn initially looked as if it would assume a place among the most predicted in history, no one, including us, was expecting a fall as steep and fast as this one has been. It has also, however, performed the role down markets do—which is to provide active managers with an ample supply of potential long-term opportunities.
    Part of the reason the jolt was so unexpected may be due to the placid nature of the bull market it wrenched to a stop. For much of 2018, the U.S. market cruised confidently ahead, with very little
congestion and few potholes. Through the first three quarters of the year, volatility barely registered in the small-cap market, with only 22% of the trading days having intraday moves of at least 1% in the small-cap Russell 2000 Index (and our chosen asset class has historically been the most volatile precinct of the equity world). Of course, this all changed dramatically later in the year. For small-caps, it began after the Russell 2000 reached an all-time high on August 31, following which a wave of volatility hit. In the fourth quarter, 54% of the trading days for the Russell 2000 had intraday moves of at least 1%.
    The volatility itself would have perhaps been more bearable if it had not also taken returns in the year’s last three months from ‘bad’ to ‘historically awful’—the Russell 2000 fell 20.2% for the fourth quarter. Its worst month by far was December. In fact, the first few months of the corrective phase had enough push and pull that the year-to-date return at the end of November for the Russell 2000 was 1.0%. From our perspective, then, the downturn had




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LETTER TO OUR STOCKHOLDERS    

two phases—the first was the widely expected recalibration from late August through mid-December. The second was a blur of panic selling between December 12th and 24th. Losses mounted as the gentler descent of the initial stage gave way to a wild downhill. The markets careened down the slope at breakneck speed as the calendar approached year-end, with small-caps reaching a 2018 bottom on Christmas Eve before stabilizing over the next week, giving the Russell 2000 a loss of 11.9% for December. In the context of its 11.0% decline for calendar 2018, it may be easy to forget that year-to-date through August 31, the Russell 2000 was up 14.3%.
  A Tale of Two Markets
Russell 2000 2018

    So 2018 was truly A Tale of Two Markets, and offered yet another lesson from history that the market can—and often does—turn in a hurry. For an additional sense of the tumult and—we want to stress again—the opportunities the correction created, consider that the average stock in the Russell 2000 declined 37.2% from its previous 52-week high through year-end. Many declined more than that: energy stocks in the Russell 2000 fell more than 50%, materials slid 42.5%, and transportation was down 42.3% from their respective highs.
“WHAT JUST HAPPENED?”
Retrospect offers the opportunity to look at the contour of the correction and at the confluence of factors that may have led to and exacerbated it. In spite of its historic awfulness, the downturn displayed some familiar traits: small-caps lost more than large-caps, for example, which is consistent with most bear markets, as is the fact that small-caps entered ‘classic’ bear market territory before their larger counterparts. (By a ‘classic’ bear, we mean a decline of 20% or more from a previous peak—the Russell 2000 lost 22.1% from 8/31/18-12/31/18.) Within small-cap, we also saw value beat

  A Familiar Pattern in 4Q18 Decline

growth, dividend payers lose less than non-payers, earners hold up better than non-earners, and defensives outpace cyclicals. All of this is also essentially consistent with history, which was reassuring (though painful in the short run).
    Identifying this mix of the familiar and the unexpected helps to shed light on the question of what drove shares down in such precipitous fashion, turning what at first looked like a historically typical bull market detour into the bear market ditch. First, there was the by-now familiar cloud of tariffs and trade wars looming over the market, arguably the major factor in underperformance for economically sensitive cyclical stocks in 2018. Oil prices began to collapse in October, while shortly afterward slowdowns were reported in both housing and auto sales. Consumer confidence began to dip, and Europe and China continued to weaken. Yet all of this was, if not old news, then at least well established news by the end of November. Moreover, much of the economic news in the U.S. remained positive. Job and wage gain growth remained robust (as they continue to do as of this writing) as did corporate profits.
    In mid-December, however, other factors came into play that helped to bring the witches’ brew to a boil. Investors looked at the coincidence of a flattening yield curve and the abrupt drop in oil prices as a surefire recession warning. Ratcheting up the already high level of anxiety, the December Fed meeting announcement and subsequent press conference were widely seen as conveying an unhealthy detachment from current financial conditions, which exacerbated the downward spiral. This is how ‘bad’ became ‘worse.’

This page is not part of the 2018 Annual Report to Stockholders | 3
       

LETTER TO OUR STOCKHOLDERS    

A SENSE OF WHERE WE ARE A month into 2019, which featured a welcome rally that recovered most of December’s losses, the signals remain decidedly mixed. The PMI (Purchasing Managers’ Index) report for December issued in early January perhaps best distills the mixed, if not confusing, state of play in the U.S. economy. The report is designed to show the health of the manufacturing and service sectors. The index hit a 15-month low in December, which is admittedly concerning, especially given the marked fall-off from November. However, of its 18 manufacturing sectors, 11 showed growth in December. Additionally, the 54.1% number reported for that month was comfortably in the range of a growing economy because any number north of 50% typically indicates growth. Even with the uncertain course of U.S. growth, it seems clear to us that in 2018 many investors reacted as if the economy has only two gears—forward and reverse.     We see a more nuanced picture that’s closer to the midpoint of these extremes. The economy looks essentially healthy and
capable of expansion to us, though probably at a slower pace than we saw over the last two years. There are undoubtedly risks on the horizon—political, financial, and economic. Yet we believe that these have already been reflected, in some cases excessively so, in current small-cap valuations. The market shifted in short order from a period when small-cap’s extended valuations seemed out of sync in light of the index’s high levels of debt and low profitability, to one at the end of the year when valuations reflected more pessimism than we think is warranted—at least in select instances.
THE LESSONS OF HISTORY
We examined the recent bear phase from a calendar-year and market cycle perspective and uncovered encouraging data. First, 2018 was the twelfth negative calendar year in the 40-year history of the Russell 2000. In 10 of the previous 11 years, a positive calendar-year return followed—with an average one-year return of 21.1%. (Unsurprisingly, the lone exception was 2007-08.) Turning to market cycles also shows compelling positive news. 2018 saw the



  After the Bear Market, Then What?
Subsequent 1-Year Performance of Russell 2000 after a 20% Decline as of 12/31/18

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LETTER TO OUR STOCKHOLDERS    

There are undoubtedly risks on the horizon—political, financial, and economic. Yet we believe that these have already been reflected, in some cases excessively so, in current small-cap valuations.

eleventh decline of 20% or more from a previous small-cap peak. In nine of the previous 10 periods, the subsequent average one-year return from the first day on which the index declined 20% from its peak was a positive 19.4%. (The exception, again unsurprisingly, came in 2008-09.) These historical examples certainly suggest the possibility of a solid 2019.
    To be sure, our belief is that we are a long way from the crisis era of a decade ago. We are also in a stronger position economically than we were in the two prior bear markets in 2011-12 or 2015-16. In fact, we see the closest historical parallels farther back. In our view, 1987 or 1962 are the more relevant comparisons—two cases in which the markets experienced a deep decline before recovering in the midst of a still growing economy.

  Historical Comparison
CRSP 6-10 Declines and Subsequent 12-Month Performance

Moreover, we also see little resemblance between the present and prior bearish periods such as 1998, 2001-02, or 2008-09, when there were more than enough reasons for investors to sell in the form of financial crises and/or recessions (while contrarians like us were casting about for opportunities). It’s worth emphasizing that the only decline over the last 10-plus years that featured both a recession and a financial crisis was 2008-09. Unless investors are expecting something in the way of a repeat performance—and we
are obviously not—history suggests this may be a good time to consider committing more money to small-caps.
A DELIBERATE PACE ON THE ROAD TO NORMAL

We would, however, add a note or two mixing intermediate-term caution for the small-cap market with long-term optimism for small-cap active management. 2019 may well be a terrific year for small-cap performance, particularly if January is any kind of bellwether. However, we suspect that annualized small-cap returns over the next three to five years may be in the mid to high single digits. From our perspective as disciplined small-cap specialists, this is not necessarily bad news. Lower-than-average returns for the Russell 2000 have historically benefited active management approaches, including a number of our own strategies, especially coming out of periods of deep pessimism such as we saw late in 2018, when investors often miss the long-term opportunities falling markets create.
    We also believe that the long and winding road back to more normal terrain for the capital markets will be marked by three occurrences: a normalizing rate structure, with rates moving higher, resulting in a steepening yield curve; more historically average levels of volatility (which was higher in 2018 than it was over the previous two years); and the more historically typical returns that we mentioned above. All three of these market conditions have been supportive for small-cap active management in the past.
    The overall state of small-cap, however, still has several unresolved issues. Of the three that worried us most about the Russell 2000 over the summer—lofty valuations, many companies with barely manageable debt, and too many with no earnings—only the first is no longer a pressing matter. We think that the fundamentals we value most—such as high returns on invested


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

LETTER TO OUR STOCKHOLDERS    

Across each of our small-cap strategies, we are confident in our holdings, which generally possess some combination of solid cash flows, modest valuations, effective managements, and encouraging prospects. These are the businesses that look most likely to weather or even thrive in a period with even more volatility and uncertainty than usual.

capital, positive cash flow, and an identifiable catalyst (or two) for earnings growth or recovery—should be rewarded in the coming market environment, as they have often been over the long term.
IDENTIFYING OPPORTUNITIES IN A VOLATILE CLIMATE

In all of our strategies, we’ve been working to take advantage of long-term buying opportunities across a broad spectrum of sectors and industries. This includes companies involved in energy services, RV parts, infrastructure, laser-based photonics, shipping, trucking, banking, outpatient healthcare facilities that bend the cost curve, and semiconductor capital equipment, to name just a few. Within our high-quality strategies, we’ve also been buying more of the companies that we know best, those in which we have the highest confidence, because of their demonstrated ability to deal effectively with adversity in previous down markets.
    Within these cyclical sectors, especially in the broad industrial and technology spaces, there are diverse industry groups with distinct business cycle dynamics. Each responds to multiple company- or industry-specific factors that help to determine performance as a
business—they seldom march in lockstep. That diversity is very attractive to us as selective active managers. So while there’s no question that we were incorrect in thinking that investors would more readily recognize and then close the gap between operating income and stock prices, we think that many small-cap cyclical companies were disproportionately punished in the downturn to the point where many look as if a recession has already been priced in—which makes them even more attractive to us.
  Cyclical Market Disconnect

    Across each of our small-cap strategies, we are confident in our holdings, which generally possess some combination of solid cash flows, modest valuations, effective managements, and encouraging prospects. These are the businesses that look most likely to weather or even thrive in a period with even more volatility and uncertainty than usual.


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               January 31, 2018        
6 | This page is not part of the 2018 Annual Report to Stockholders
 

Performance

  NAV Average Annual Total Returns As of December 31, 2018 (%)       1-YR   3-YR     5-YR   10-YR     15-YR   20-YR   25-YR   30-YR   SINCE
INCEPTION
  INCEPTION
DATE
  Royce Global Value Trust1   -16.11   6.91   2.04   N/A   N/A   N/A   N/A   N/A   2.49   10/17/13   Royce Micro-Cap Trust   -11.62   8.25   3.01   13.07   7.38   9.39   10.09   N/A   10.08   12/14/93   Royce Value Trust   -14.45   9.00   3.70   12.14   7.17   8.42   9.34   10.20   9.94   11/26/86   INDEX                                         MSCI ACWI Small Cap Index   -14.39    5.75   3.56   11.81   8.01   7.92   N/A   N/A   N/A   N/A   Russell Global Small Cap Index   -15.30    5.21   2.67   10.30   7.00   7.14   N/A   N/A   N/A   N/A   Russell Microcap Index   -13.08    5.79   3.08   11.71   5.67   N/A   N/A   N/A   N/A   N/A   Russell 2000 Index   -11.01    7.36   4.41   11.97   7.50   7.40   8.28   9.21   N/A   N/A  
1 The Fund’s previous benchmark index, the Russell Global Small Cap Index, was discontinued by FTSE Russell effective December 31, 2018. As of this same date, the MSCI ACWI Small Cap Index is the Fund’s new benchmark.

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. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, endorsed, reviewed or produced by MSCI. None of the MSCI data is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. 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 MSCI ACWI 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 Annual Report to Stockholders | 7
  MANAGERS’ DISCUSSION Royce Global Value Trust (RGT)
Chuck Royce
David Nadel
  FUND PERFORMANCE In a challenging year for small-caps all over the world, Royce Global Value Trust fell 16.1% on an NAV (net asset value) basis and 17.5% based on market price for 2018, trailing both its new benchmark, the MSCI ACWI Small Cap Index, which declined 14.4%, and the Russell Global Small Cap Index (which Russell Investments has discontinued), which fell 15.3% for the same period. However, the Fund was ahead of both benchmarks on an NAV and market price basis for the three-year period ended December 31, 2018.   WHAT WORKED... AND WHAT DIDN’T All of the Fund’s 11 equity sectors detracted from 2018’s results. Industrials had by far the largest negative impact, followed by Financials, Information Technology, and Materials. At the industry level, capital markets (Financials) detracted most, with machinery (Industrials) and electronic equipment, instruments & components also having sizable negative effects.     At the position level, CIRCOR International, which makes valves for fluid control systems, detracted most. Its shares fell in the fourth quarter amid concerns that slowing global growth, U.S.-China trade tensions, and the significant drop in oil prices—energy companies being among its larger end markets—would put a damper on CIRCOR’s positive order trends, pushing out a long-awaited improvement in profit margins and free cash flow earmarked for debt reduction. Computer Modelling Group is a Canadian software company whose products help oil companies maximize extractions. Its shares slumped in the second half due to its exposure to the energy industry, which was hurt by falling oil prices, and some slight disappointments in revenues and earnings. Based on its lack of debt, relatively high annual dividend, and strong position in a highly specialized niche, we liked its long-term prospects at year-end.     SEI Investments runs a diverse business that provides investment processing, investment management, and investment operations solutions to clients around the globe. With products and services knit into the operations of several customers, SEI has what we think is a strong niche that’s built for the long term. Concerns about future spending levels from its primary client base as well as a second-quarter earnings disappointment led investors to mostly avoid its stock through the first three quarters of 2018, before its shares slumped further during the downturn, along with most other companies associated with asset management. Air Lease is a leading aircraft leasing business that saw its shares lose altitude throughout the year, particularly in December, when the airline industry came under considerable pressure throughout the eurozone, which resulted in the shuttering of a number of poorly capitalized carriers. Though Air Lease was less exposed to this dynamic, there were concerns among investors that a similar trend would materialize in other geographies. Confident in the potential for its shares to rise when tailwinds return to its business, we increased our stake in 2018.     The portfolio’s top positive contributor was Australia’s Bravura Solutions, which makes software that focuses on the wealth management and investment fund administration markets. It has what we like in its industry—a market and product application we can readily understand that also delivers mission-critical customer benefits. The company offers a market-leading product, developed after a multi-year period of substantial R&D, and was able to take market share in a growing market. Based in New York City, Virtu Financial uses its technology to act as a market maker and liquidity provider to the global financial markets. Virtu announced impressive first-quarter results in profits and earnings, thanks to increased volatility, high trading volumes, and better-than-expected progress integrating a large acquisition. Its shares then advanced in the fourth quarter as its business model again benefited from increased volatility.     Relative to the MSCI ACWI Small Cap, RGT suffered most from sector allocation as stock selection was additive in 2018. The portfolio’s biggest source of underperformance on the sector level came from our underweight and ineffective stock picking in Real Estate while stock selection also hurt in Communication Services and Health Care. Conversely, the Fund benefited from savvy stock selection, most impactfully in Industrials, Energy, Financials, and Consumer Discretionary.
            Top Contributors to Performance         For 2018 (%)1                   Bravura Solutions   0.44           Virtu Financial Cl. A   0.44           Sartorius Stedim Biotech   0.28           Trade Me Group   0.26           Radisson Hospitality   0.23           1 Includes dividends      
  Top Detractors from Performance         For 2018 (%)2                   CIRCOR International   -0.57           Computer Modelling Group   -0.50           SEI Investments   -0.50           Air Lease Cl. A   -0.43           Ferroglobe   -0.39           2 Net of dividends                
CURRENT POSITIONING AND OUTLOOK While we acknowledge the many potential of risk on the horizon—economic, geopolitical, and financial—we also think that these concerns have already been reflected, perhaps even excessively so, in current valuations. In relatively short order, we transitioned from a period this summer when domestic small-cap’s extended valuations seemed out of sync given the index’s high levels of debt and low profitability, to one at the end of the year where valuations seemed more pessimistic than we think is warranted—at least in select instances. As a result, we put cash to work as we identified what we thought were terrific opportunities to the point where the Fund was fully invested at year-end. Down years for small-caps have often been followed by strong ones. We believe that the portfolio’s cyclical approach to global small-caps will be rewarded as recessionary concerns dissipate during the year.
8 | 2018 Annual Report to Stockholders
 
PERFORMANCE AND PORTFOLIO REVIEW   SYMBOLS MARKET PRICE RGT  NAV XRGTX
  Performance Average Annual Total Return (%) Through 12/31/18     JUL-DEC 20181   1-YR   3-YR   5-YR   SINCE INCEPTION (10/17/13)   RGT (NAV)   -15.37   -16.11   6.91   2.04   2.49   1 Not annualized                    

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

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 BoxTM with the center 75% of fund holdings plotted as the Morningstar Ownership ZoneTM. The Morningstar Style Box is designed to reveal a fund’s investment strategy. The Morningstar Ownership Zone provides detail about a portfolio’s investment style by showing the range of stock sizes and styles. The Ownership Zone is derived by plotting each stock in the portfolio within the proprietary Morningstar Style Box. Over time, the shape and location of a fund’s ownership zone may vary. See page 64 for additional information.

  Top 10 Positions     % of Net Assets           FLIR Systems   2.3   Kirby Corporation   2.0   Ashmore Group   1.8   Virtu Financial Cl. A   1.8   Raven Industries   1.3   Spirax-Sarco Engineering   1.3   STRATEC Biomedical   1.3   TGS-NOPEC Geophysical   1.2   Lindsay Corporation   1.2   TOTVS   1.2  
  Portfolio Sector Breakdown     % of Net Assets           Industrials   32.3   Financials   20.9   Information Technology   18.4   Health Care   9.1   Materials   9.4   Consumer Discretionary   5.8   Energy   3.8   Consumer Staples   3.4   Real Estate   2.7   Communication Services   0.8   Outstanding Line of Credit, Net of Cash
and Cash Equivalents
  -6.6  
  Calendar Year Total Returns (%)           YEAR   RGT   2018   -16.1   2017   31.1   2016   11.1   2015   -3.4   2014   -6.2  
  Portfolio Country Breakdown1,2     % of Net Assets           United States   30.5   Japan   10.4   United Kingdom   9.9   Canada   9.6   Switzerland   5.7   Germany   5.5   Australia   4.8   France   3.8   Sweden   3.7   Brazil   3.3  
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   $109 million   Number of Holdings   206   Turnover Rate   57%   Net Asset Value   $10.42   Market Price   $8.88   Net Leverage1   6.6%   Average Market Capitalization2   $1,702 million   Weighted Average P/E Ratio3,4   16.4x   Weighted Average P/B Ratio3   2.4x   Active Share5   97%  
Net leverage is the percentage, in excess of 100%, of the total value of equity type investments, divided by net assets.
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 (4% of portfolio holdings as of 12/31/18).
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 Annual Report to Stockholders | 9
       

Royce Global Value Trust

  Schedule of Investments Common Stocks – 105.9%
    SHARES     VALUE                     AUSTRALIA 4.8%              

ALS

  140,000     $ 668,569  

Bravura Solutions

  300,000       781,829  

Cochlear

  7,000       855,778  

Hansen Technologies

  360,000       884,945  

IPH

  175,000       666,843  

†Steadfast Group

  273,500       529,759  

†Technology One

  200,000       867,759     Total (Cost $4,610,181)           5,255,482                     AUSTRIA 0.8%              

Mayr-Melnhof Karton

  6,500       819,211     Total (Cost $776,898)           819,211                     BELGIUM 0.8%              

†Radisson Hospitality 1

  180,000       832,680     Total (Cost $505,978)           832,680                     BRAZIL 3.3%              

B3-Brasil, Bolsa, Balcao

  32,847       227,215  

Construtora Tenda

  18,400       152,346  

†CVC Brasil Operadora e Agencia de Viagens

  7,800       123,126  

International Meal Company Alimentacao

  132,300       242,019  

†M Dias Branco

  22,500       248,468  

OdontoPrev

  300,000       1,064,310  

†Tegma Gestao Logistica

  30,000       212,862  

TOTVS

  183,000       1,281,933     Total (Cost $3,469,614)           3,552,279                     CANADA 9.6%              

Agnico Eagle Mines 2

  10,000       404,000  

Altus Group

  62,200       1,078,431  

†ATS Automation Tooling Systems 1

  16,900       178,136  

†AutoCanada

  55,000       457,259  

Canaccord Genuity Group

  92,000       388,837  

Computer Modelling Group

  283,000       1,262,430  

E-L Financial

  1,300       700,850  

FirstService Corporation

  10,300       705,344  

Franco-Nevada Corporation 2,3

  14,100       989,397  

Genworth MI Canada

  13,000       382,801  

Gluskin Sheff + Associates

  23,000       175,718  

Major Drilling Group International 1

  184,600       622,004  

Morneau Shepell

  50,000       917,082  

Pan American Silver 2

  31,800       464,280  

†Parex Resources 1

  6,800       81,438  

Solium Capital 1

  50,000       431,805  

Sprott

  520,600       980,034  

Western Forest Products

  190,050       263,107     Total (Cost $12,766,644)           10,482,953                     CHINA 1.0%              

†Haitian International Holdings

  79,600       153,497  

Hua Hong Semiconductor

  114,000       211,098  

TravelSky Technology

  300,000       768,150     Total (Cost $825,140)           1,132,745                     DENMARK 0.4%              

SimCorp

  6,000       410,282     Total (Cost $386,884)           410,282                     FRANCE 3.8%              

Gaztransport Et Technigaz

  3,500       269,280  

Interparfums

  14,850       574,235  

Lectra

  12,500       260,372  

Neurones

  32,500       703,777  

†Robertet

  400       241,066  

Rothschild & Co

  33,000       1,166,430  

Thermador Groupe

  19,000       968,731     Total (Cost $3,368,882)           4,183,891                     GERMANY 4.8%              

Amadeus Fire

  10,000       933,786  

†AURELIUS Equity Opportunities

  7,400       268,940  

Carl Zeiss Meditec

  7,500       586,910  

CompuGroup Medical

  10,000       463,341  

†CTS Eventim AG & Co.

  6,100       227,704  

MorphoSys 1

  6,000       611,487  

†Norma Group

  5,000       247,367  

†PATRIZIA Immobilien

  24,700       471,195  

STRATEC

  24,413       1,406,951     Total (Cost $4,785,168)           5,217,681                     GREECE 0.3%              

Sarantis

  44,100       352,682     Total (Cost $379,711)           352,682                     HONG KONG 1.2%              

HKBN

  171,500       260,190  

Texhong Textile Group

  33,100       37,832  

Value Partners Group

  1,281,800       888,855  

†Valuetronics Holdings

  355,100       171,955     Total (Cost $1,455,082)           1,358,832                     INDIA 1.4%              

†AIA Engineering

  30,000       713,314  

Edelweiss Financial Services

  65,700       171,602  

SH Kelkar & Company

  200,000       492,731  

†Sterlite Technologies

  37,800       158,991     Total (Cost $1,961,638)           1,536,638                     INDONESIA 0.4%              

Selamat Sempurna

  5,000,000       486,787     Total (Cost $455,966)           486,787                     IRELAND 0.4%              

†Datalex

  28,500       77,716  

Keywords Studios

  25,000       340,956     Total (Cost $139,096)           418,672                     ISRAEL 0.2%              

Nova Measuring Instruments 1,2

  8,700       198,186     Total (Cost $222,334)           198,186                     ITALY 1.1%              

†Biesse

  8,700       171,151  

DiaSorin

  9,000       729,041  

†Interpump Group

  10,900       324,705     Total (Cost $969,645)           1,224,897                     JAPAN 10.4%              

†Advantest Corporation

  13,600       278,440  

†Ain Holdings

  4,100       294,394  
10 | 2018 Annual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
       
December 31, 2018
  Schedule of Investments (continued)
    SHARES     VALUE                     JAPAN (continued)              

As One

  15,000     $ 1,029,150  

†Benefit One

  25,000       769,810  

†Cosel

  50,000       423,795  

Daifuku

  20,000       916,017  

en-japan

  6,600       205,638  

EPS Holdings

  40,000       610,191  

Financial Products Group

  27,400       280,487  

†Fujitec

  50,000       538,753  

Information Services International-Dentsu

  4,900       122,897  

†KOMEDA Holdings

  14,200       280,359  

Kyowa Exeo

  11,400       268,137  

Meitec Corporation

  25,000       1,018,430  

†Morningstar Japan KK

  80,000       218,238  

†Nishimoto

  6,500       264,792  

NSD

  47,900       927,365  

Relo Group

  30,000       704,256  

†TKC Corporation

  23,000       820,492  

TOTO

  4,500       156,425  

USS

  50,000       843,483  

Yumeshin Holdings

  48,050       347,207     Total (Cost $11,499,978)           11,318,756                     LUXEMBOURG 0.8%              

†Reinet Investments

  65,000       849,001     Total (Cost $958,103)           849,001                     MALAYSIA 0.2%              

†AEON Credit Service

  44,200       163,644     Total (Cost $164,029)           163,644                     MEXICO 0.6%              

Becle

  200,000       268,576  

Bolsa Mexicana de Valores

  250,000       426,171     Total (Cost $789,517)           694,747                     NETHERLANDS 2.2%              

†Basic-Fit 1

  2,700       80,277  

†Euronext

  4,300       247,814  

†IMCD

  13,000       834,106  

Intertrust

  75,000       1,262,330     Total (Cost $2,666,388)           2,424,527                     NEW ZEALAND 0.6%              

Fisher & Paykel Healthcare

  70,654       616,499     Total (Cost $382,216)           616,499                     NORWAY 1.5%              

†Atea

  24,700       317,088  

TGS-NOPEC Geophysical

  55,000       1,328,167     Total (Cost $1,404,136)           1,645,255                     PERU 0.3%              

†Alicorp

  123,400       364,504     Total (Cost $365,981)           364,504                     POLAND 0.3%              

Warsaw Stock Exchange

  33,000       323,179     Total (Cost $459,764)           323,179                     PORTUGAL 0.5%              

Sonae

  612,400       568,342     Total (Cost $760,078)           568,342                     RUSSIA 0.4%              

Globaltrans Investment GDR

  42,000       380,520     Total (Cost $228,732)           380,520                     SINGAPORE 0.8%              

†Midas Holdings 1,4

  400,000       42,261  

XP Power

  30,000       804,910     Total (Cost $817,261)           847,171                     SOUTH AFRICA 1.5%              

Coronation Fund Managers

  70,800       203,481  

†Hudaco Industries

  61,557       600,189  

JSE

  15,000       172,608  

PSG Group

  25,000       425,369  

†Transaction Capital

  244,100       288,594     Total (Cost $1,971,790)           1,690,241                     SOUTH KOREA 0.4%              

Hansol Chemical

  2,800       194,479  

Koh Young Technology

  1,200       88,726  

Samjin Pharmaceutical

  4,300       154,727     Total (Cost $433,537)           437,932                     SPAIN 0.2%              

†Applus Services

  20,000       222,046     Total (Cost $242,032)           222,046                     SWEDEN 3.7%              

Addtech Cl. B

  31,460       561,548  

Bravida Holding

  120,000       829,972  

†Dometic Group

  50,000       310,280  

Hexpol

  110,000       869,406  

†Lagercrantz Group

  60,000       582,876  

†Loomis Cl. B

  12,500       403,364  

†Resurs Holding

  38,500       237,613  

†Scandi Standard

  38,500       268,889     Total (Cost $4,246,817)           4,063,948                     SWITZERLAND 5.7%              

Burkhalter Holding

  10,000       793,570  

dormakaba Holding

  600       361,990  

Forbo Holding

  200       281,005  

Inficon Holding

  1,500       759,385  

Kardex

  10,000       1,153,729  

LEM Holding

  600       639,740  

Partners Group Holding

  1,600       970,190  

VZ Holding

  4,600       1,240,208     Total (Cost $6,074,421)           6,199,817                     TAIWAN 0.4%              

†Chailease Holding

  23,266       73,347  

†Chroma ATE

  66,400       254,911  

TCI

  8,808       148,725     Total (Cost $494,164)           476,983                     THAILAND 0.1%              

†Muangthai Capital

  94,100       141,612     Total (Cost $127,611)           141,612    
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2018 Annual Report to Stockholders | 11
       

Royce Global Value Trust

  Schedule of Investments (continued)
    SHARES     VALUE                     UKRAINE 0.3%              

†MHP GDR

  30,000     $ 310,500     Total (Cost $411,612)           310,500                     UNITED KINGDOM 9.9%              

Abcam

  40,000       555,726  

†Advanced Medical Solutions Group

  70,000       245,360  

Ashmore Group

  432,800       2,016,821  

Avon Rubber

  9,500       151,359  

†BCA Marketplace

  90,000       252,371  

Clarkson

  15,600       377,791  

Consort Medical

  57,500       685,257  

†Croda International

  15,000       895,725  

Diploma

  35,000       539,793  

FDM Group Holdings

  25,000       236,757  

Ferroglobe 2

  41,100       65,349  

Ferroglobe (Warranty Insurance Trust) 1,4

  41,100       0  

Hilton Food Group

  9,600       110,370  

Jupiter Fund Management

  36,000       135,454  

†Kainos Group

  31,400       160,090  

†Metro Bank 1

  25,000       539,474  

Polypipe Group

  125,000       521,630  

†Porvair

  50,000       264,161  

Rotork

  82,500       260,362  

Spirax-Sarco Engineering

  18,000       1,431,630  

Staffline Group

  10,300       162,792  

Stallergenes Greer 1

  10,800       350,187  

†Taylor Wimpey

  72,700       126,254  

Victrex

  25,500       743,652     Total (Cost $11,515,860)           10,828,365                     UNITED STATES30.5%              

Air Lease Cl. A 2

  40,060       1,210,213  

Brooks Automation 2

  21,700       568,106  

†Burford Capital

  20,000       422,148  

†Camping World Holdings Cl. A 2,3

  62,800       720,316  

†Chase Corporation

  5,600       560,280  

CIRCOR International 1,2

  32,200       685,860  

Cognex Corporation 2

  10,748       415,625  

Coherent 1,2

  3,600       380,556  

†comScore 1

  24,000       346,320  

Diodes 1,2

  20,500       661,330  

Dorian LPG 1

  4,475       26,089  

EnerSys 2

  11,000       853,710  

Expeditors International of Washington 2

  13,300       905,597  

FLIR Systems 2,3

  56,700       2,468,718  

Innospec 2,3

  12,457       769,344  

Kadant 2

  7,800       635,388  

KBR 2

  64,600       980,628  

Kirby Corporation 1,2,3

  32,900       2,216,144  

†KKR & Co. Cl. A 2

  50,000       981,500  

Lazard Cl. A

  34,200       1,262,322  

Lindsay Corporation 2

  13,700       1,318,625  

Littelfuse

  4,000       685,920  

ManpowerGroup 2

  8,800       570,240  

MBIA 1,2,3

  80,300       716,276  

†Morningstar

  7,200       790,848  

Nanometrics 1,2,3

  35,600       972,948  

National Instruments 2

  15,200       689,776  

Popular 2

  13,100       618,582  

Quaker Chemical 2,3

  6,069       1,078,522  

Raven Industries

  40,000       1,447,600  

Rogers Corporation 1,2,3

  4,800       475,488  

SEACOR Holdings 1,2,3

  20,200       747,400  

SEACOR Marine Holdings 1

  20,309       238,834  

SEI Investments 2

  27,600       1,275,120  

Signet Jewelers

  5,500       174,735  

Standard Motor Products

  11,200       542,416  

Sun Hydraulics 2

  15,139       502,463  

Tennant Company 2

  11,600       604,476  

Valmont Industries 2

  5,400       599,130  

Virtu Financial Cl. A 2,3

  74,300       1,913,968  

World Fuel Services 2

  12,000       256,920     Total (Cost $30,346,527)           33,290,481                     URUGUAY 0.3%              

Arcos Dorados Holdings Cl. A 2

  46,800       369,720     Total (Cost $351,426)           369,720                     TOTAL COMMON STOCKS                 (Cost $113,790,841)           115,691,688                     PREFERRED STOCK 0.7%               GERMANY 0.7%              

†FUCHS PETROLUB

  18,500       762,645     (Cost $802,646)           762,645                     REPURCHASE AGREEMENT 0.6%               Fixed Income Clearing Corporation, 0.50% dated 12/31/18, due 1/2/19, maturity value
$642,018 (collateralized by obligations of various U.S. Government Agencies, 0.125% due
07/15/24, valued at $657,561)
  (Cost $642,000)           642,000                     TOTAL INVESTMENTS 107.2%                 (Cost $115,235,487)           117,096,333                     LIABILITIES LESS CASH AND OTHER ASSETS (7.2)%           (7,842,702 )                                 NET ASSETS 100.0%         $ 109,253,631    
12 | 2018 Annual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
       
December 31, 2018
 
ADR – American Depository Receipt
   
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 December 31, 2018. Total market value of pledged securities at December 31, 2018, was $17,212,324.
3
At December 31, 2018, a portion of these securities were rehypothecated in connection with the Fund’s revolving credit agreement in the aggregate amount of $6,408,273.
4
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.
     
Securities of Global/International Funds are categorized by the country of their headquarters, with the exception of exchange-traded funds.
     
Bold indicates the Fund’s 20 largest equity holdings in terms of December 31, 2018, market value.
     
TAX INFORMATION: The cost of total investments for Federal income tax purposes was $115,563,766. At December 31, 2018, net unrealized appreciation for all securities was $1,532,567 consisting of aggregate gross unrealized appreciation of $14,885,535 and aggregate gross unrealized depreciation of $13,352,968. The primary causes of the difference between book and tax basis cost are the timing of the recognition of losses on securities sold, investments in publicly traded partnerships and Trusts and mark-to-market of Passive Foreign Investment Companies.

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2018 Annual Report to Stockholders | 13
       
Royce Global Value Trust   December 31, 2018
  Statement of Assets and Liabilities
ASSETS:         Investments at value   $ 116,454,333     Repurchase agreements (at cost and value)     642,000     Cash     512     Foreign currency (cost $15,804)     15,822     Receivable for investments sold     320,954     Receivable for dividends and interest     253,066     Prepaid expenses and other assets     42,594     Total Assets     117,729,281     LIABILITIES:         Revolving credit agreement     8,000,000     Payable for investments purchased     286,436     Payable for investment advisory fee     118,151     Payable for directors’ fees     8,385     Payable for interest expense     3,331     Accrued expenses     57,053     Deferred capital gains tax     2,294     Total Liabilities     8,475,650     Net Assets   $ 109,253,631     ANALYSIS OF NET ASSETS:         Paid-in capital - $0.001 par value per share; 10,482,026 shares outstanding (150,000,000 shares authorized)   $ 118,153,404     Total distributable earnings (loss)     (8,899,773 )   Net Assets (net asset value per share - $10.42)   $ 109,253,631     Investments at identified cost   $ 114,593,487    
14 | 2018 Annual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
       

Royce Global Value Trust

  Statement of Changes in Net Assets
    YEAR ENDED 12/31/18   YEAR ENDED 12/31/17                     INVESTMENT OPERATIONS:                 Net investment income (loss)   $ 386,440     $ 241,105     Net realized gain (loss) on investments and foreign currency     4,457,193       6,555,345     Net change in unrealized appreciation (depreciation) on investments and foreign currency     (25,870,375 )     24,156,512     Net increase (decrease) in net assets from investment operations     (21,026,742 )     30,952,962     DISTRIBUTIONS:                 Total distributable earnings 1     (418,468 )           Net investment income             (1,145,697 )   Net realized gain on investments and foreign currency                 Total distributions     (418,468 )     (1,145,697 )   CAPITAL STOCK TRANSACTIONS:                 Reinvestment of distributions     172,659       491,130     Total capital stock transactions     172,659       491,130     Net Increase (Decrease) In Net Assets     (21,272,551 )     30,298,395     NET ASSETS:                   Beginning of year     130,526,182       100,227,787     End of year (including undistributed net investment income (loss) of $(1,199,309) at 12/31/172)   $ 109,253,631     $ 130,526,182    
1
Distributions from net investment income and from realized gains are no longer required to be separately disclosed. See Notes to Financial Statements.
2
Parenthetical disclosure of undistributed net investment income is no longer required. See Notes to Financial Statements.

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2018 Annual Report to Stockholders | 15
       
Royce Global Value Trust   Year Ended December 31, 2018
  Statement of Operations
INVESTMENT INCOME:         INCOME:         Dividends   $ 2,757,921     Foreign withholding tax     (205,281 )   Interest     34,033     Rehypothecation income     39,372     Total income     2,626,045     EXPENSES:           Investment advisory fees     1,608,852     Interest expense     264,494     Custody and transfer agent fees     124,984     Professional fees     76,428     Stockholder reports     57,993     Administrative and office facilities     44,889     Directors’ fees     31,824     Other expenses     30,191     Total expenses     2,239,655     Compensating balance credits     (50 )   Net expenses     2,239,605     Net investment income (loss)     386,440     REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY:         NET REALIZED GAIN (LOSS):           Investments     4,512,055     Foreign currency transactions     (54,862 )   NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION):           Investments     (26,021,074 )   Other assets and liabilities denominated in foreign currency     150,699     Net realized and unrealized gain (loss) on investments and foreign currency     (21,413,182 )   NET INCREASE (DECREASE) IN NET ASSETS FROM INVESTMENT OPERATIONS   $ (21,026,742 )  
16 | 2018 Annual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
       
Royce Global Value Trust   Year Ended December 31, 2018
  Statement of Cash Flows
CASH FLOWS FROM OPERATING ACTIVITIES:         Net increase (decrease) in net assets from investment operations   $ (21,026,742 )   Adjustments to reconcile net increase (decrease) in net assets from investment operations to net cash provided by operating activities:          

Purchases of long-term investments

    (81,113,028 )  

Proceeds from sales and maturities of long-term investments

    72,448,684    

Net purchases, sales and maturities of short-term investments

    8,689,000    

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

    (50,869 )  

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

    (194,518 )  

Net change in unrealized appreciation (depreciation) on investments

    26,021,074    

Net realized gain (loss) on investments

    (4,512,055 )   Net cash provided by operating activities     261,546     CASH FLOWS FROM FINANCING ACTIVITIES:         Distributions     (418,468 )   Reinvestment of distributions     172,659     Net cash used for financing activities     (245,809 )   INCREASE (DECREASE) IN CASH:     15,737     Cash and foreign currency at beginning of year     597     Cash and foreign currency at end of year   $ 16,334    
Supplemental disclosure of cash flow information: For the year ended December 31, 2018, the Fund paid $263,514 in interest expense.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2018 Annual Report to Stockholders | 17
       

Royce Global Value Trust

  Financial Highlights This table is presented to show selected data for a share outstanding throughout each period, and to assist stockholders in evaluating the Fund’s performance for the periods presented.
    YEARS ENDED           12/31/18     12/31/17     12/31/16     12/31/15     12/31/14     Net Asset Value, Beginning of Period   $ 12.48     $ 9.62     $ 8.81     $ 9.25     $ 10.05     INVESTMENT OPERATIONS:                                         Net investment income (loss)     0.04       0.02       0.06       0.10       0.13     Net realized and unrealized gain (loss) on investments and foreign currency     (2.06 )     2.96       0.90       (0.43 )     (0.77 )   Net increase (decrease) in net assets from investment operations     (2.02 )     2.98       0.96       (0.33 )     (0.64 )   DISTRIBUTIONS:                                         Net investment income     (0.04 )     (0.11 )     (0.14 )     (0.10 )     (0.15 )   Net realized gain on investments and foreign currency                                 Total distributions     (0.04 )     (0.11 )     (0.14 )     (0.10 )     (0.15 )   CAPITAL STOCK TRANSACTIONS:                                         Effect of reinvestment of distributions by Common Stockholders     (0.00 )     (0.01 )     (0.01 )     (0.01 )     (0.01 )   Total capital stock transactions     (0.00 )     (0.01 )     (0.01 )     (0.01 )     (0.01 )   Net Asset Value, End of Period   $ 10.42     $ 12.48     $ 9.62     $ 8.81     $ 9.25     Market Value, End of Period   $ 8.88     $ 10.81     $ 8.04     $ 7.45     $ 8.04     TOTAL RETURN: 1                                         Net Asset Value     (16.11 )%     31.07 %     11.12 %     (3.44 )%     (6.23 )%   Market Value     (17.50 )%     35.96 %     9.77 %     (6.06 )%     (7.86 )%   RATIOS BASED ON AVERAGE NET ASSETS:                                         Investment advisory fee expense     1.25 %     1.25 %     1.25 %     1.25 %     1.25 %   Other operating expenses     0.49 %     0.42 %     0.46 %     0.43 %     0.24 %   Total expenses (net)     1.74 %     1.67 %     1.71 %     1.68 %     1.49 %   Expenses excluding interest expense     1.53 %     1.52 %     1.57 %     1.58 %     1.49 %   Expenses prior to balance credits     1.74 %     1.67 %     1.71 %     1.68 %     1.49 %   Net investment income (loss)     0.30 %     0.21 %     0.69 %     1.03 %     1.30 %   SUPPLEMENTAL DATA:                                         Net Assets, End of Period (in thousands)   $ 109,254     $ 130,526     $ 100,228     $ 91,174     $ 95,285     Portfolio Turnover Rate     57 %     34 %     59 %     65 %     43 %   REVOLVING CREDIT AGREEMENT:                                         Asset coverage     1466 %     1732 %     1353 %     1240 %           Asset coverage per $1,000     14,657       17,316       13,528       12,397            
1
The Market Value Total Return is calculated assuming a purchase of Common Stock on the opening of the first business day and a sale on the closing of the last business day of each period. Dividends and distributions are assumed for the purposes of this calculation to be reinvested at prices obtained under the Fund’s Distribution Reinvestment and Cash Purchase Plan. Net Asset Value Total Return is calculated on the same basis, except that the Fund’s net asset value is used on the purchase and sale dates instead of market value.

18 | 2018 Annual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
       

Royce Global Value Trust

Notes to Financial Statements

Summary of Significant Accounting Policies
Royce Global Value Trust, Inc. (the “Fund”), is a diversified closed-end investment company that was incorporated under the laws of the State of Maryland on February 14, 2011. The Fund commenced operations on October 18, 2013.
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 “Financial Services-Investment Companies”.
  VALUATION OF INVESTMENTS:
Securities are valued as of the close of trading on the New York Stock Exchange (NYSE) (generally 4:00 p.m. Eastern time) on the valuation date. Securities that trade on an exchange, and securities traded on Nasdaq’s Electronic Bulletin Board, are valued at their last reported sales price or Nasdaq official closing price taken from the primary market in which each security trades or, if no sale is reported for such day, at their highest bid price. Other over-the-counter securities for which market quotations are readily available are valued at their highest bid price, except in the case of some bonds and other fixed income securities which may be valued by reference to other securities with comparable ratings, interest rates and maturities, using established independent pricing services. The Fund values its non-U.S. dollar denominated securities in U.S. dollars daily at the prevailing foreign currency exchange rates as quoted by a major bank. Securities for which market quotations are not readily available are valued at their fair value in accordance with the provisions of the 1940 Act, under procedures approved by the Fund's Board of Directors, and are reported as Level 3 securities. As a general principle, the fair value of a security is the amount which the Fund might reasonably expect to receive for the security upon its current sale. However, in light of the judgment involved in fair valuations, there can be no assurance that a fair value assigned to a particular security will be the amount which the Fund might be able to receive upon its current sale. In addition, if, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and may make the closing price unreliable, the Fund may fair value the security. The Fund uses an independent pricing service to provide fair value estimates for relevant non-U.S. equity securities on days when the U.S. market volatility exceeds a certain threshold. This pricing service uses proprietary correlations it has developed between the movement of prices of non-U.S. equity securities and indices of U.S.-traded securities, futures contracts and other indications to estimate the fair value of relevant non-U.S. securities. When fair value pricing is employed, the prices of securities used by the Fund may differ from quoted or published prices for the same security. Investments in money market funds are valued at net asset value per share.
Various inputs are used in determining the value of the Fund’s investments, as noted above. These inputs are summarized in the three broad levels below:
    Level 1  – 
quoted prices in active markets for identical securities.
    Level 2  – 
other significant observable inputs (including quoted prices for similar securities, foreign securities that may be fair valued and repurchase agreements). The table below includes all Level 2 securities. Any Level 2 securities with values based on quoted prices for similar securities would be noted in the Schedule of Investments.
    Level 3  – 
significant unobservable inputs (including last trade price before trading was suspended, or at a discount thereto for lack of marketability or otherwise, market price information regarding other securities, information received from the company and/or published documents, including SEC filings and financial statements, or other publicly available information).
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used to value the Fund’s investments as of December 31, 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   $ 115,649,427     $     $ 42,261     $ 115,691,688   Preferred Stocks     762,645                   762,645   Repurchase Agreement           642,000             642,000  
Certain securities have transferred in and out of Level 1 and Level 2 measurements during the reporting period. This is generally due to whether fair value factors have been applied. The Fund recognizes transfers between levels as of the end of the reporting period. For the year ended December 31, 2018, securities valued at $42,631,365 were transferred from Level 2 to Level 1 within the fair value hierarchy.

2018 Annual Report to Stockholders | 19
       

Royce Global Value Trust

Notes to Financial Statements (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 12/31/18   Common Stocks     $0       $126,098       $84,433       $8,774       $(8,178)       $42,261   1
The net change in unrealized appreciation (depreciation) is included in the accompanying Statement of Operations. Change in unrealized appreciation (depreciation) includes net unrealized appreciation (depreciation) resulting from changes in investment values during the reporting period and the reversal of previously recorded unrealized appreciation (depreciation) when gains or losses are realized. Net realized gain (loss) from investments and foreign currency transactions is included in the accompanying Statement of Operations.

REPURCHASE AGREEMENTS:
The Fund may enter into repurchase agreements with institutions that the Fund’s investment adviser has determined are creditworthy. The Fund restricts repurchase agreements to maturities of no more than seven days. Securities pledged as collateral for repurchase agreements, which are held until maturity of the repurchase agreements, are marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest). Repurchase agreements could involve certain risks in the event of default or insolvency of the counter-party, including possible delays or restrictions upon the ability of the Fund to dispose of its underlying securities. The remaining contractual maturity of the repurchase agreement held by the Fund at December 31, 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, other than investments in securities at the end of the reporting period, as a result of changes in foreign currency exchange rates.
The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.
  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.

20 | 2018 Annual Report to Stockholders
       

Royce Global Value Trust

Notes to Financial Statements (continued)

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 20,315 and 46,290 shares of Common Stock as reinvestment of distributions for the years ended December 31, 2018 and 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 179-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 December 31, 2018, the Fund has outstanding borrowings of $8,000,000. During the year ended December 31, 2018, the Fund borrowed an average daily balance of $8,000,000 at a weighted average borrowing cost of 3.26%. The maximum amount outstanding during the year ended December 31, 2018 was $8,000,000. As of December 31, 2018, the aggregate value of rehypothecated securities was $6,408,273. During the year ended December 31, 2018, the Fund earned $39,372 in fees from rehypothecated securities.
  Investment Advisory Agreement:
The investment advisory agreement between Royce and the Fund provides for fees to be paid at an annual rate of 1.25% of the Fund’s average daily net assets. For the year ended December 31, 2018, the Fund expensed Royce investment advisory fees totaling $1,608,852.
  Purchases and Sales of Investment Securities:
For the year ended December 31, 2018, the costs of purchases and proceeds from sales of investment securities, other than short-term securities, amounted to $81,154,786 and $72,159,317, 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 year ended December 31, 2018, were as follows:

COSTS OF PURCHASES   PROCEEDS FROM SALES     REALIZED GAIN (LOSS)     $4,658,327       $425,880         $(22,161)    
Tax Information:
Distributions during the years ended December 31, 2018 and 2017, were characterized as follows for tax purposes:

ORDINARY INCOME LONG-TERM CAPITAL GAINS   2018 2017 2018 2017   $418,468 $1,145,697 $ – $ –  
2018 Annual Report to Stockholders | 21
       

Royce Global Value Trust

Notes to Financial Statements (continued)

Tax Information (continued):
The tax basis components of distributable earnings at December 31, 2018, were as follows:

UNDISTRIBUTED
ORDINARY INCOME
UNDISTRIBUTED LONG-TERM
CAPITAL GAINS OR
(CAPITAL LOSS CARRYFORWARD)
NET UNREALIZED
APPRECIATION
(DEPRECIATION)1
QUALIFIED LATE YEAR
ORDINARY AND
POST-OCTOBER LOSS
DEFERRALS2
TOTAL
DISTRIBUTABLE
EARNINGS
CAPITAL LOSS
CARRYFORWARD
UTILIZED
  $68,089 $(9,630,651) $1,527,381 $(864,592) $(8,899,773) $5,022,047   1
Includes timing differences on foreign currency, investments in publicly traded partnerships, recognition of losses on securities sold and mark-to-market of Passive Foreign Investment Companies.
2
Under the current tax law, capital losses and qualified late year ordinary losses incurred after October 31 may be deferred and treated as occurring on the first day of the following fiscal year.

For financial reporting purposes, capital accounts and distributions to stockholders are adjusted to reflect the tax character of permanent book/tax differences. For the year ended December 31, 2018, the Fund had no reclassifications.
Management has analyzed the Fund’s tax positions taken on federal income tax returns for all open tax years (2015-2018) and has concluded that as of December 31, 2018, no provision for income tax is required in the Fund’s financial statements.

Recent Accounting Pronouncement:
In August 2018, the Securities and Exchange Commission released its Final Rule on Disclosure Update and Simplification (the “Final Rule”) which is intended to simplify an issuer’s disclosure compliance efforts by removing redundant or outdated disclosure requirements without significantly altering the mix of information provided to investors. Effective with the current reporting period, the Fund adopted the Final Rule with the most notable impacts being that the Fund is no longer required to present the components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributions to stockholders and the amount of undistributed net investment income on the Statement of Changes in Net Assets.
  Subsequent Events:
Effective January 1, 2019, the investment advisory fee was reduced from 1.25% to 1.00%.

22 | 2018 Annual Report to Stockholders
       

Report of Independent Registered Public Accounting Firm

To the Board of Directors and the Stockholders of Royce Global Value Trust, Inc.:

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Royce Global Value Trust, Inc. (the “Fund”) as of December 31, 2018, the related statements of operations and cash flows for the year ended December 31, 2018, the statement of changes in net assets for each of the two years in the period ended December 31, 2018, including the related notes, and the financial highlights for each of the four years in the period ended December 31, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2018, the results of its operations and its cash flows for the year then ended, the changes in its net assets for each of the two years in the period ended December 31, 2018 and the financial highlights for each of the four years in the period ended December 31, 2018 in conformity with accounting principles generally accepted in the United States of America.

The financial statements of the Fund as of and for the year ended December 31, 2014 and the financial highlights for each of the periods ended on or prior to December 31, 2014 (not presented herein, other than the financial highlights) were audited by other auditors whose report dated February 23, 2015 expressed an unqualified opinion on those financial statements and financial highlights.

Basis for Opinion

These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2018 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/PricewaterhouseCoopers LLP
New York, New York
February 21, 2019

We have served as the auditor of one or more investment companies in the Royce investment company group since at least 1967. We have not been able to determine the specific year we began serving as auditor.

2018 Annual Report to Stockholders | 23
  MANAGERS’ DISCUSSION Royce Micro-Cap Trust (RMT)
Chuck Royce
Brendan Hartmann, Chris Flynn,
Jim Stoeffel
  FUND PERFORMANCE In 2018’s difficult market, Royce Micro-Cap Trust stayed ahead of its micro-cap benchmark for the third consecutive year while slipping only narrowly behind the small-cap index, which it beat in the previous two. The Fund fell 11.6% on an NAV (net asset value) basis and 14.7% on a market price basis in 2018, losing less on an NAV basis than the Russell Microcap Index, which declined 13.1%, while slightly trailing the Russell 2000 Index, which fell 11.0%, for the same period. RMT beat the Russell 2000 on both an NAV and market price basis for the three-, 10-, 20-, 25-year, and since inception (12/14/93) periods ended December 31, 2018. It also outpaced the micro-cap index on both an NAV and market price basis for the three-, 10-, and 15-year periods ended December 31, 2018. (Data for the Russell Microcap Index goes back only to 6/30/00).   WHAT WORKED... AND WHAT DIDN’T Eight of the Fund’s 11 equity sectors finished 2018 in the red. Industrials detracted most by a wide margin, followed by Energy and Financials. Health Care made a small positive contribution, followed by Utilities and Communication Services. The six industry groups with the largest net losses for the Fund came from five different sectors, which gives a sense of how broad declines were for micro-cap stocks in 2018. By sizable margins, the machinery group was both our heaviest weighting at year-end and the biggest detractor in Industrials, accounting for more than 60% of the sector’s loss in the portfolio. Fourth-quarter difficulties for two machinery stocks—CIRCOR International and Sun Hydraulics (which does business as Helios Technologies)—had negative impacts on performance. CIRCOR makes valves for fluid control systems. Its shares fell in the fourth quarter amid concerns that slowing global growth, U.S.-China trade tensions, and the significant drop in oil prices—energy companies being among its larger end markets—would put a damper on CIRCOR’s positive order trends, pushing out a long-awaited improvement in profit margins and free cash flow earmarked for debt reduction. Sun Hydraulics manufactures hydraulic and electronic controls systems for a variety of industrial and recreational equipment makers. The company continued to book solid incoming orders, but labor and materials cost pressures, as well as a series of operational miscues stemming from a rush to meet growing demand, brought margins and earnings below expectations. We held shares in each company at year-end.     The energy equipment & services industry followed in second place. Slumping oil prices resulted in Energy suffering by far the steepest losses of any sector in the Russell 2000 for the calendar year, our holdings as a group fared better by comparison. Net losses came from several companies, including Era Group, Computer Modelling Group, SEACOR Marine Holdings, and Carbo Ceramics. We added shares of each of these energy services companies in 2018.     Mesa Laboratories, the portfolio’s top-contributing (and biggest) position, hails from Information Technology’s electronic equipment, instruments & components group although 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. Mesa reported record revenues for its fiscal fourth quarter and 2018 in the year’s first half, driven in part by strong results in its four divisions and greater efficiencies from the firm’s proprietary operating system that helped it to better manage inventories and speed up deliveries. The firm then reported record fiscal second-quarter revenues in October, geared by strong growth in its sterilization and disinfection control division. Performance-based marketing company QuinStreet has been reaping the benefits of its strategic shift away from for profit education to financial services marketing, with a current focus on the insurance industry. We trimmed our position as its price rose, but see further potential for growth as management begins to apply its marketing algorithms to other areas within financial services.     The Fund’s narrow underperformance versus the Russell 2000 in 2018 was the result of sector allocation—stock selection was additive. Both ineffective stock selection and our overweight hurt in Industrials, while stock picking hindered results in Financials. Conversely, savvy stock selection gave the portfolio an edge in Health Care as well as smaller advantages in Consumer Discretionary and Materials.
            Top Contributors to Performance         For 2018 (%)1                   Mesa Laboratories   0.75           QuinStreet   0.49           Mirati Therapeutics   0.45           Surmodics   0.40           Etsy   0.31           1 Includes dividends      
  Top Detractors from Performance         For 2018 (%)2                   CIRCOR International   -0.82           Sun Hydraulics   -0.49           Collectors Universe   -0.37           Major Drilling Group International   -0.37           Titan International   -0.34           2 Net of dividends                
CURRENT POSITIONING AND OUTLOOK While we acknowledge the many potential sources of risk on the horizon—economic, geopolitical, and financial—we also think that these concerns have already been reflected, perhaps even excessively so, in current valuations. In relatively short order, we transitioned from a period this summer when small- and micro-cap’s extended valuations seemed out of sync given the each asset class’s high levels of debt and low profitability, to one at the end of the year where valuations seemed more pessimistic than we think is warranted—at least in select instances. Down years for small- and micro-cap stocks have often been followed by strong ones. We believe that the portfolio’s cyclical tilt will be rewarded as recessionary concerns dissipate during the year.
24 | 2018 Annual Report to Stockholders
 
PERFORMANCE AND PORTFOLIO REVIEW   SYMBOLS MARKET PRICE RMT  NAV XOTCX
  Performance Average Annual Total Return (%) Through 12/31/18     JUL-DEC 20181   1-YR   3-YR   5-YR   10-YR   15-YR   20-YR   25-YR   SINCE INCEPTION (12/14/93)   RMT (NAV)   -18.04   -11.62   8.25   3.01   13.07   7.38   9.39   10.09   10.08   1 Not annualized

Market Price Performance History Since Inception (12/14/93)
Cumulative Performance of Investment1

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.
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 64 for additional information.

  Top 10 Positions     % of Net Assets           Mesa Laboratories   3.1   Atrion Corporation   1.3   Surmodics   1.3   Social Capital Hedosophia Holdings Cl. A   1.3   Quaker Chemical   1.3   Heritage-Crystal Clean   1.2   nLIGHT   1.2   Kadant   1.2   CIRCOR International   1.0   Chicken Soup For The Soul Entertainment   1.0  
  Portfolio Sector Breakdown     % of Net Assets           Industrials   20.0   Information Technology   18.9   Financials   13.4   Health Care   13.3   Consumer Discretionary   12.1   Energy   7.5   Materials   6.3   Communication Services   4.4   Consumer Staples   2.7   Real Estate   2.0   Utilities   0.6   Outstanding Line of Credit, Net of Cash and Cash Equivalents   -1.2  
  Calendar Year Total Returns (%)           YEAR   RMT   2018   -11.6   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  
  Portfolio Diagnostics           Fund Net Assets   $345 million   Number of Holdings   340   Turnover Rate   21%   Net Asset Value   $8.53   Market Price   $7.42   Net Leverage1   1.2%   Average Market Capitalization2   $418 million   Weighted Average P/B Ratio3   1.7x   Active Share4   95%   U.S. Investments (% of Net Assets)   81.1%   Non-U.S. Investments (% of Net Assets)   20.1%  
Net leverage is the percentage, in excess of 100%, of the total value of equity type investments, divided by net assets.
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.
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 Annual Report to Stockholders   |  25
       
Royce Micro-Cap Trust
  Schedule of Investments Common Stocks – 100.6%
      SHARES     VALUE                       COMMUNICATION SERVICES – 3.8%                 DIVERSIFIED TELECOMMUNICATION SERVICES - 0.2%                

ORBCOMM 1

    87,100     $ 719,446                   ENTERTAINMENT - 0.4%                

Chicken Soup For The Soul Entertainment

    214,500       1,613,040                   INTERACTIVE MEDIA & SERVICES - 1.9%                

Care.com 1,2,3

    171,787       3,317,207  

QuinStreet 1

    196,400       3,187,572                                 6,504,779                   MEDIA - 1.3%                

comScore 1

    214,195       3,090,834  

McClatchy Company (The) Cl. A 1

    69,313       530,244  

New Media Investment Group

    66,200       765,934                                 4,387,012       Total (Cost $10,553,856)             13,224,277                         CONSUMER DISCRETIONARY – 12.1%                 AUTO COMPONENTS - 1.8%                

Fox Factory Holding 1

    5,300       312,011  

Motorcar Parts of America 1

    54,800       911,872  

Sebang Global Battery

    50,500       1,627,061  

Standard Motor Products

    50,860       2,463,150  

Stoneridge 1,2

    41,400       1,020,510  

Unique Fabricating

    12,200       51,484                                 6,386,088                   DISTRIBUTORS - 0.6%                

Uni-Select

    33,800       480,558  

Weyco Group 2

    54,300       1,583,931                                 2,064,489                   DIVERSIFIED CONSUMER SERVICES - 1.4%                

Aspen Group 1

    141,520       775,530  

Collectors Universe 2

    108,200       1,229,152  

Liberty Tax Cl. A 4

    142,900       1,671,930  

Universal Technical Institute 1

    270,000       985,500                                 4,662,112                   HOTELS, RESTAURANTS & LEISURE - 2.0%                

Century Casinos 1

    222,500       1,644,275  

Del Taco Restaurants 1

    8,200       81,918  

†Inspired Entertainment 1

    50,000       240,000  

Lindblad Expeditions Holdings 1

    254,000       3,418,840  

Red Lion Hotels 1

    167,600       1,374,320                                 6,759,353                   HOUSEHOLD DURABLES - 0.8%                

Cavco Industries 1,2,3

    8,600       1,121,268  

Flexsteel Industries 2

    16,100       355,488  

Lifetime Brands 2,3

    119,294       1,196,519  

Universal Electronics 1

    6,100       154,208  

ZAGG 1

    3,700       36,186                                 2,863,669                   INTERNET & DIRECT MARKETING RETAIL - 1.3%                

FTD Companies 1

    67,200       99,456  

Gaia Cl. A 1,2,3

    100,000       1,036,000  

†Leaf Group 1

    64,500       441,825  

Real Matters 1

    255,000       616,393  

Stamps.com 1

    11,700       1,820,988  

Yatra Online 1

    105,000       422,100                                 4,436,762                   LEISURE PRODUCTS - 0.9%                

Clarus Corporation

    174,926       1,770,251  

†MasterCraft Boat Holdings 1

    2,800       52,360  

Nautilus 1

    121,000       1,318,900                                 3,141,511                   MULTILINE RETAIL - 0.0%                

Tuesday Morning 1,2

    36,700       62,390                   SPECIALTY RETAIL - 1.9%                

AutoCanada

    385,601       3,205,810  

Barnes & Noble Education 1

    80,000       320,800  

Destination Maternity 1

    212,000       602,080  

Destination XL Group 1

    50,000       108,500  

Haverty Furniture 2

    38,400       721,152  

†Lazydays Holdings 1

    30,000       162,000  

MarineMax 1

    7,600       139,156  

Sears Hometown and Outlet Stores 1,2,3

    269,700       574,461  

Shoe Carnival 2

    17,016       570,206  

Stage Stores 2

    15,000       11,100                                 6,415,265                   TEXTILES, APPAREL & LUXURY GOODS - 1.4%                

Crown Crafts

    112,159       605,659  

Culp 2

    32,900       621,810  

J.G. Boswell Company 4

    2,490       1,369,500  

YGM Trading

    2,564,600       2,292,599                                 4,889,568       Total (Cost $49,682,218)             41,681,207                         CONSUMER STAPLES – 2.7%                 BEVERAGES - 0.3%                

Crimson Wine Group 1,4

    58,124       453,367  

Primo Water 1

    40,400       566,004                                 1,019,371                   FOOD PRODUCTS - 2.3%                

AGT Food and Ingredients

    25,800       314,468  

Farmer Bros. 1,2,3

    62,600       1,460,458  

John B. Sanfilippo & Son 2,3

    17,800       990,748  

Landec Corporation 1,2

    75,610       895,222  

†RiceBran Technologies 1

    50,000       150,000  

Seneca Foods Cl. A 1,2,3

    81,087       2,288,275  

Seneca Foods Cl. B 1

    40,400       1,139,684  

SunOpta 1

    164,481       636,542                                 7,875,397                   HOUSEHOLD PRODUCTS - 0.1%                

Central Garden & Pet 1

    12,000       413,400     Total (Cost $7,431,817)             9,308,168                       ENERGY – 7.5%                 ENERGY EQUIPMENT & SERVICES - 4.2%                

Aspen Aerogels 1

    94,985       202,318  

CARBO Ceramics 1,2,3

    169,038       588,252  

CES Energy Solutions

    25,000       57,684  

Computer Modelling Group

    526,800       2,349,994  

Dawson Geophysical 1

    77,336       261,396  

Era Group 1,2,3

    383,700       3,353,538  

†Forum Energy Technologies 1

    50,000       206,500  

Geospace Technologies 1,2

    9,500       97,945  

Hornbeck Offshore Services 1,2,3

    460,000       662,400  

Independence Contract Drilling 1

    134,400       419,328  

Mammoth Energy Services

    4,500       80,910  

Matrix Service 1,2

    28,700       514,878  

Nabors Industries

    34,000       68,000  
26 | 2018 Annual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
       
December 31, 2018
  Schedule of Investments (continued)
      SHARES     VALUE                       ENERGY (continued)                 ENERGY EQUIPMENT & SERVICES (continued)                

Newpark Resources 1

    11,200     $ 76,944  

North American Construction Group

    50,000       445,000  

Pioneer Energy Services 1,2,3

    245,600       302,088  

Profire Energy 1

    175,000       253,750  

SEACOR Marine Holdings 1,2

    216,957       2,551,414  

TerraVest Industries

    209,000       1,555,406  

Total Energy Services

    42,800       306,297                                 14,354,042                   OIL, GAS & CONSUMABLE FUELS - 3.3%                

Ardmore Shipping 1

    161,300       753,271  

Cross Timbers Royalty Trust

    67,631       754,762  

Dorchester Minerals L.P.

    153,963       2,254,018  

Dorian LPG 1

    163,138       951,095  

GeoPark 1

    86,971       1,201,939  

Leucrotta Exploration 1

    489,800       344,424  

†Navigator Holdings 1

    100,000       940,000  

Panhandle Oil and Gas Cl. A

    5,500       85,250  

Permian Basin Royalty Trust

    176,333       1,040,365  

Ring Energy 1

    50,000       254,000  

Sabine Royalty Trust 2

    59,548       2,219,949  

StealthGas 1

    229,664       633,873  

†Teekay Offshore Partners L.P.

    56,000       67,760                                 11,500,706       Total (Cost $36,358,707)             25,854,748                         FINANCIALS – 13.4%                 BANKS - 1.9%                

Bank of N.T. Butterfield & Son

    39,410       1,235,503  

Bryn Mawr Bank

    25,000       860,000  

Caribbean Investment Holdings 1

    735,635       159,399  

Chemung Financial

    31,000       1,280,610  

Fauquier Bankshares 2

    133,200       2,432,232  

Live Oak Bancshares 2

    30,900       457,629  

Midway Investments 1,5

    735,647       0                                 6,425,373                   CAPITAL MARKETS - 8.1%                

ASA Gold and Precious Metals

    171,150       1,619,079  

†Ashford 1

    10,000       519,000  

†B. Riley Financial

    7,600       107,920  

Bolsa Mexicana de Valores

    1,068,000       1,820,601  

Canaccord Genuity Group

    203,300       859,245  

†Donnelley Financial Solutions 1

    50,000       701,500  

Dundee Corporation Cl. A 1

    413,200       387,413  

Fiera Capital Cl. A

    78,000       645,048  

GAIN Capital Holdings 2

    25,000       154,000  

GMP Capital

    332,800       458,295  

Great Elm Capital Group 1

    566,700       1,915,446  

Hamilton Lane Cl. A 2

    20,300       751,100  

INTL FCStone 1,2

    60,527       2,214,078  

JZ Capital Partners 1

    50,000       283,598  

Manning & Napier Cl. A

    136,600       240,416  

MVC Capital

    219,900       1,805,379  

OHA Investment

    59,761       60,359  

Pzena Investment Management Cl. A

    6,100       52,765  

Queen City Investments 4

    948       1,071,335  

Silvercrest Asset Management Group Cl. A

    203,300       2,689,659  

Sprott

    1,414,533       2,662,870  

U.S. Global Investors Cl. A 2

    439,454       483,399  

Urbana Corporation

    237,600       435,101  

Value Line 2

    131,974       3,432,644  

†Vostok New Ventures SDR 1

    100,000       680,360  

Warsaw Stock Exchange

    52,900       518,066  

Westaim Corporation 1

    500,000       944,917  

Westwood Holdings Group 2

    12,400       421,600                                 27,935,193                   CONSUMER FINANCE - 0.5%                

Currency Exchange International 1

    7,000       137,159  

EZCORP Cl. A 1,2,3

    201,000       1,553,730                                 1,690,889                   DIVERSIFIED FINANCIAL SERVICES - 0.1%                

Waterloo Investment Holdings 1,5

    806,000       241,800                   INSURANCE - 1.0%                

Hallmark Financial Services 1,2,3

    114,000       1,218,660  

†Health Insurance Innovations Cl. A 1

    7,200       192,456  

Heritage Insurance Holdings

    6,600       97,152  

Trupanion 1,2,3

    82,300       2,095,358                                 3,603,626                   INVESTMENT COMPANIES - 1.8%                

†GS Acquisition Holdings Cl. A 1

    200,000       1,960,000  

†Social Capital Hedosophia Holdings Cl. A 1,2

    438,850       4,388,500                                 6,348,500       Total (Cost $52,153,648)             46,245,381                         HEALTH CARE – 13.3%                 BIOTECHNOLOGY - 3.2%                

Abeona Therapeutics 1,2,3

    142,221       1,015,458  

†AMAG Pharmaceuticals 1

    17,800       270,382  

Aquinox Pharmaceuticals 1,2

    145,397       314,058  

Arcturus Therapeutics 1

    106,436       482,155  

BioCryst Pharmaceuticals 1

    84,855       684,780  

CareDx 1,2,3

    56,000       1,407,840  

Idera Pharmaceuticals 1

    58,061       160,829  

Knight Therapeutics 1

    187,000       1,053,347  

Mirati Therapeutics 1

    31,100       1,319,262  

Theratechnologies 1

    10,000       60,943  

Zafgen 1,2,3

    336,781       1,667,066  

Zealand Pharma 1

    187,900       2,375,963  

Zealand Pharma ADR 1

    10,000       116,100                                 10,928,183                   HEALTH CARE EQUIPMENT & SUPPLIES - 4.7%                

AtriCure 1,2

    15,000       459,000  

Atrion Corporation 2

    6,169       4,571,723  

Chembio Diagnostics 1

    185,500       1,049,930  

CryoLife 1

    4,600       130,548  

GenMark Diagnostics 1

    31,100       151,146  

Invacare Corporation 2

    43,300       186,190  

LeMaitre Vascular

    5,000       118,200  

OraSure Technologies 1,2,3

    50,000       584,000  

OrthoPediatrics Corporation 1

    33,300       1,161,504  

STRATEC

    14,000       806,837  

Surmodics 1,2

    94,500       4,466,070  

TearLab Corporation 1,4

    8,500       765  

Utah Medical Products

    33,000       2,741,640                                 16,427,553                   HEALTH CARE PROVIDERS & SERVICES - 2.4%                

AAC Holdings 1

    89,400       125,160  
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2018 Annual Report to Stockholders | 27
       
Royce Micro-Cap Trust
  Schedule of Investments (continued)
      SHARES     VALUE                       HEALTH CARE (continued)                 HEALTH CARE PROVIDERS & SERVICES (continued)                

Aceto Corporation

    58,300     $ 48,972  

BioTelemetry 1

    34,300       2,048,396  

CRH Medical 1

    133,000       407,222  

Cross Country Healthcare 1

    150,800       1,105,364  

National Research 2

    89,529       3,414,636  

†PetIQ Cl. A 1,2

    25,000       586,750  

Psychemedics Corporation 2

    37,500       595,125                                 8,331,625                   HEALTH CARE TECHNOLOGY - 1.4%                

Simulations Plus 2

    50,000       995,000  

Tabula Rasa HealthCare 1,2

    38,400       2,448,384  

Vocera Communications 1

    33,100       1,302,485                                 4,745,869                   LIFE SCIENCES TOOLS & SERVICES - 1.1%                

NeoGenomics 1

    125,000       1,576,250  

Quanterix Corporation 1

    115,500       2,114,805                                 3,691,055                   PHARMACEUTICALS - 0.5%                

Agile Therapeutics 1,2

    80,000       46,072  

†Aratana Therapeutics 1

    9,200       56,396  

Correvio Pharma 1

    83,200       207,168  

Theravance Biopharma 1,2

    59,009       1,510,040                                 1,819,676       Total (Cost $32,597,463)             45,943,961                         INDUSTRIALS – 20.0%                 AEROSPACE & DEFENSE - 0.5%                

Astronics Corporation 1

    6,429       195,763  

CPI Aerostructures 1

    171,800       1,094,366  

Innovative Solutions and Support 1

    78,828       173,816  

SIFCO Industries 1

    45,800       158,010                                 1,621,955                   BUILDING PRODUCTS - 1.3%                

Burnham Holdings Cl. A 4

    117,000       1,626,300  

CSW Industrials 1

    20,000       967,000  

DIRTT Environmental Solutions 1

    96,000       429,651  

Insteel Industries 2

    44,200       1,073,176  

Patrick Industries 1

    17,250       510,773                                 4,606,900                   COMMERCIAL SERVICES & SUPPLIES - 2.6%                

†Acme United

    25,000       356,250  

Atento 1

    218,701       876,991  

Civeo Corporation 1

    150,000       214,500  

CompX International Cl. A

    78,200       1,064,302  

Heritage-Crystal Clean 1,2,3

    185,277       4,263,224  

Hudson Technologies 1

    50,000       44,500  

Interface

    10,600       151,050  

PICO Holdings 1,2,3

    121,200       1,107,768  

Team 1,2,3

    57,500       842,375                                 8,920,960                   CONSTRUCTION & ENGINEERING - 3.2%                

Ameresco Cl. A 1

    251,400       3,544,740  

†Construction Partners Cl. A 1

    9,900       87,417  

†Granite Construction

    13,500       543,780  

IES Holdings 1,2

    206,800       3,215,740  

†Infrastructure and Energy Alternatives 1

    275,100       2,253,069  

Northwest Pipe 1,2,3

    60,100       1,399,729                                 11,044,475                   ELECTRICAL EQUIPMENT - 0.8%                

American Superconducter 1

    30,625       341,469  

Encore Wire 2

    4,100       205,738  

LSI Industries

    423,340       1,341,988  

Powell Industries 2

    21,400       535,214  

Power Solutions International 1,2,3,4

    21,100       194,120  

Revolution Lighting Technologies 1,2,3

    81,200       31,976                                 2,650,505                   INDUSTRIAL CONGLOMERATES - 0.9%                

Raven Industries 2

    83,600       3,025,484                   MACHINERY - 6.6%                

CIRCOR International 1,2,3

    170,200       3,625,260  

Exco Technologies

    85,400       564,871  

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

    95,300       1,515,270  

FreightCar America 1

    5,500       36,795  

Global Brass and Copper Holdings

    5,000       125,750  

Graham Corporation 2,3

    75,150       1,716,426  

Hurco Companies 2

    36,866       1,316,116  

Kadant 2

    48,800       3,975,248  

Kornit Digital 1

    53,900       1,009,008  

Lindsay Corporation 2

    32,600       3,137,750  

Luxfer Holdings 2

    64,012       1,128,532  

Lydall 1

    12,800       259,968  

NN

    45,300       303,963  

Spartan Motors

    16,100       116,403  

Sun Hydraulics 2

    74,000       2,456,060  

Titan International

    212,200       988,852  

Twin Disc 1

    4,300       63,425  

Westport Fuel Systems 1

    488,700       649,971                                 22,989,668                   MARINE - 1.6%                

†Algoma Central

    17,800       165,327  

Clarkson

    109,900       2,661,492  

†Eagle Bulk Shipping 1

    570,000       2,627,700                                 5,454,519                   PROFESSIONAL SERVICES - 0.7%                

Acacia Research 1,2

    190,000       566,200  

Franklin Covey 1,2

    40,100       895,433  

GP Strategies 1

    16,600       209,326  

IBI Group 1

    84,500       269,865  

InnerWorkings 1

    30,400       113,696  

Kforce 2

    2,800       86,576  

Resources Connection

    11,200       159,040                                 2,300,136                   ROAD & RAIL - 0.7%                

Marten Transport

    5,500       89,045  

Patriot Transportation Holding 1,2

    55,764       1,086,840  

Universal Logistics Holdings 2

    75,200       1,360,368                                 2,536,253                   TRADING COMPANIES & DISTRIBUTORS - 1.1%                

EVI Industries 2

    64,300       2,144,405  

Houston Wire & Cable 1

    331,418       1,676,975                                 3,821,380       Total (Cost $69,319,307)             68,972,235                         INFORMATION TECHNOLOGY – 18.9%                 COMMUNICATIONS EQUIPMENT - 0.4%                

Clearfield 1

    85,200       845,184  

Digi International 1

    31,400       316,826  
28 | 2018 Annual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
       
December 31, 2018
  Schedule of Investments (continued)
      SHARES     VALUE                       INFORMATION TECHNOLOGY (continued)                 COMMUNICATIONS EQUIPMENT (continued)                

EMCORE Corporation 1

    8,300     $ 34,860  

PCTEL

    34,100       146,289                                 1,343,159                   ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS - 8.9%                

Airgain 1,2

    1,200       11,892  

Bel Fuse Cl. A

    67,705       930,944  

ePlus 1

    2,100       149,457  

Fabrinet 1

    2,200       112,882  

FARO Technologies 1,2,3

    82,800       3,364,992  

Firan Technology Group 1

    25,000       38,639  

HollySys Automation Technologies

    51,900       908,769  

Inficon Holding

    3,220       1,630,147  

LightPath Technologies Cl. A 1

    100,000       149,000  

Mesa Laboratories 2

    52,000       10,836,280  

†nLIGHT 1,2,3

    226,100       4,020,058  

Novanta 1

    3,400       214,200  

Orbotech 1,2,3

    47,800       2,702,612  

†PAR Technology 1,2,3

    60,268       1,310,829  

PC Connection 2

    43,716       1,299,677  

Perceptron 1

    8,500       68,510  

Richardson Electronics

    316,900       2,753,861  

Vishay Precision Group 1

    10,000       302,300                                 30,805,049                   IT SERVICES - 0.2%                

Computer Task Group 1

    84,800       345,984  

Hackett Group (The) 2

    27,700       443,477                                 789,461                   SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 5.2%                

†Adesto Technologies 1

    172,600       759,440  

Alpha & Omega Semiconductor 1

    17,900       182,401  

Amtech Systems 1,2

    92,184       417,594  

AXT 1

    100,000       435,000  

Brooks Automation 2

    87,700       2,295,986  

Cohu

    18,490       297,134  

CyberOptics Corporation 1

    47,600       839,188  

†Everspin Technologies 1

    5,900       33,099  

FormFactor 1

    22,869       322,224  

Kulicke & Soffa Industries 2

    77,200       1,564,844  

Nanometrics 1,2

    64,600       1,765,518  

NeoPhotonics Corporation 1,2,3

    82,200       532,656  

Nova Measuring Instruments 1,2

    75,300       1,715,334  

PDF Solutions 1

    189,700       1,599,171  

Photronics 1

    223,800       2,166,384  

Rudolph Technologies 1

    67,300       1,377,631  

Silicon Motion Technology ADR

    34,100       1,176,450  

Ultra Clean Holdings 1,2,3

    61,900       524,293  

Veeco Instruments 1,2,3

    17,500       129,675                                 18,134,022                   SOFTWARE - 3.0%                

Agilysys 1

    90,000       1,290,600  

Amber Road 1

    62,800       516,844  

American Software Cl. A

    120,352       1,257,678  

Attunity 1

    4,400       86,592  

MINDBODY Cl. A 1,2

    38,900       1,415,960  

Model N 1

    50,000       661,500  

Monotype Imaging Holdings

    15,000       232,800  

OneSpan 1

    5,600       72,520  

Optiva 1

    3,000       103,128  

QAD Cl. A

    9,387       369,191  

RealNetworks 1

    100,171       231,395  

Rubicon Project 1

    75,000       279,750  

SeaChange International 1

    50,000       63,000  

†SharpSpring 1

    50,000       636,500  

Solium Capital 1

    342,500       2,957,863  

Support.com 1

    105,600       259,776                                 10,435,097                   TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS - 1.2%                

AstroNova

    5,300       99,375  

†Cray 1,2

    19,700       425,323  

Intevac 1

    547,800       2,864,994  

TransAct Technologies

    28,600       256,828  

USA Technologies 1

    90,500       352,045                                 3,998,565       Total (Cost $56,495,410)             65,505,353                         MATERIALS – 6.3%                 CHEMICALS - 2.1%                

Balchem Corporation

    8,575       671,852  

LSB Industries 1

    135,800       749,616  

OMNOVA Solutions 1

    25,000       183,250  

Quaker Chemical 2,3

    24,400       4,336,124  

Rayonier Advanced Materials

    50,000       532,500  

Trecora Resources 1

    89,600       698,880                                 7,172,222                   CONSTRUCTION MATERIALS - 0.3%                

Monarch Cement 4

    16,303       1,028,230  

U.S. Concrete 1

    4,900       172,872                                 1,201,102                   CONTAINERS & PACKAGING - 0.3%                

UFP Technologies 1

    36,445       1,094,808                   METALS & MINING - 3.6%                

Alamos Gold Cl. A

    186,044       669,115  

Ampco-Pittsburgh 1

    79,002       244,906  

Haynes International 2

    32,400       855,360  

Hudbay Minerals

    62,200       293,584  

Imdex 1

    750,666       565,743  

†Impala Platinum Holdings 1

    500,000       1,274,718  

MAG Silver 1

    154,050       1,124,565  

Major Drilling Group International 1

    921,657       3,105,495  

Olympic Steel

    35,000       499,450  

Pretium Resources 1

    80,000       677,996  

†Sandstorm Gold 1

    510,000       2,351,100  

Universal Stainless & Alloy Products 1,2,3

    24,620       399,090  

Victoria Gold 1

    890,000       241,210                                 12,302,332       Total (Cost $21,750,881)             21,770,464                         REAL ESTATE – 2.0%                 REAL ESTATE MANAGEMENT & DEVELOPMENT - 2.0%                

Altus Group

    87,000       1,508,416  

Marcus & Millichap 1,2

    4,900       168,217  

RMR Group Cl. A

    49,900       2,648,692  

Tejon Ranch 1,2,3

    154,994       2,569,801       Total (Cost $7,281,785)             6,895,126      
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2018 Annual Report to Stockholders | 29
       
Royce Micro-Cap Trust   December 31, 2018
  Schedule of Investments (continued)
      SHARES     VALUE                       UTILITIES – 0.6%                 INDEPENDENT POWER & RENEWABLE ELECTRICITY PRODUCER - 0.0%                

†Innergex Renewable Energy

    15,573     $ 143,045                   WATER UTILITIES - 0.6%                

†AquaVenture Holdings 1

    50,000       944,500  

Global Water Resources

    106,000       1,074,840                                 2,019,340       Total (Cost $1,514,639)             2,162,385                         TOTAL COMMON STOCKS                     (Cost $345,139,731)             347,563,305                         PREFERRED STOCK - 0.6%                                   COMMUNICATION SERVICES – 0.6%                 ENTERTAINMENT - 0.6%                

Chicken Soup For The Soul Entertainment

               

9.75 % Ser. A

    80,000       1,960,000       (Cost $2,000,000)             1,960,000                         WARRANTS0.0%                                   CONSUMER DISCRETIONARY – 0.0%                 HOTELS, RESTAURANTS & LEISURE - 0.0%                

Lindblad Expeditions Holdings (Warrants) 1

    18,100       56,472       Total (Cost $45,644)             56,472                         INDUSTRIALS – 0.0%                 CONSTRUCTION & ENGINEERING - 0.0%                

†Infrastructure and Energy Alternatives

               

(Warrants) 1

    100,000       91,000       Total (Cost $106,385)             91,000                                           INFORMATION TECHNOLOGY – 0.0%                 ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS - 0.0%                

†eMagin Corporation (Warrants) 1,5

    50,000       0       Total (Cost $0)             0                         TOTAL WARRANTS                     (Cost $152,029)             147,472                         REPURCHASE AGREEMENT – 5.1%                 Fixed Income Clearing Corporation, 0.50% dated 12/31/18, due 1/2/19, maturity value $17,550,488 (collateralized by obligations of various U.S. Government Agencies, 2.125% due 07/31/24, valued at $17,903,789)     (Cost $17,550,000)             17,550,000                         TOTAL INVESTMENTS – 106.3%                     (Cost $364,841,760)             367,220,777                         LIABILITIES LESS CASH AND OTHER ASSETS – (6.3)%             (21,721,632 )                                       NET ASSETS – 100.0%           $ 345,499,145      
  ADR – American Depository Receipt     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 December 31, 2018. Total market value of pledged securities at December 31, 2018, was $46,950,192.
3
At December 31, 2018, a portion of these securities were rehypothecated in connection with the Fund’s revolving credit agreement in the aggregate amount of $19,128,492.
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 December 31, 2018, market value.
     
TAX INFORMATION: The cost of total investments for Federal income tax purposes was $364,059,965. At December 31, 2018, net unrealized appreciation for all securities was $3,160,812 consisting of aggregate gross unrealized appreciation of $85,194,553 and aggregate gross unrealized depreciation of $82,033,741. The primary causes of the difference between book and tax basis cost are the timing of the recognition of losses on securities sold, investments in publicly traded partnerships and Trusts, investments in Real Estate Investment Trusts and mark-to-market of Passive Foreign Investment Companies.

30 | 2018 Annual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
       
Royce Micro-Cap Trust   December 31, 2018
  Statement of Assets and Liabilities
ASSETS:           Investments at value     $ 349,670,777     Repurchase agreements (at cost and value)       17,550,000     Cash and foreign currency       425     Receivable for investments sold       348,661     Receivable for dividends and interest       346,805     Prepaid expenses and other assets       41,848     Total Assets       367,958,516     LIABILITIES:           Revolving credit agreement       22,000,000     Payable for investments purchased       14,687     Payable for investment advisory fee       312,232     Payable for directors’ fees       27,249     Payable for interest expense       9,159     Accrued expenses       96,044     Total Liabilities       22,459,371     Net Assets     $ 345,499,145     ANALYSIS OF NET ASSETS:           Paid-in capital - $0.001 par value per share; 40,500,079 shares outstanding (150,000,000 shares authorized)     $ 341,549,243     Total distributable earnings (loss)       3,949,902     Net Assets (net asset value per share - $8.53)     $ 345,499,145     Investments at identified cost     $ 347,291,760    
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2018 Annual Report to Stockholders | 31
       
Royce Micro-Cap Trust
  Statement of Changes in Net Assets
      YEAR ENDED 12/31/18       YEAR ENDED 12/31/17                           INVESTMENT OPERATIONS:                       Net investment income (loss)     $ 429,883         $ 2,126,051     Net realized gain (loss) on investments and foreign currency       30,311,057           25,657,103     Net change in unrealized appreciation (depreciation) on investments and foreign currency       (77,891,540 )         33,136,932     Net increase (decrease) in net assets from investment operations       (47,150,600 )         60,920,086     DISTRIBUTIONS:                       Total distributable earnings1       (29,685,741 )               Net investment income                   (2,282,512 )   Net realized gain on investments and foreign currency                   (24,135,451 )   Total distributions       (29,685,741 )         (26,417,963 )   CAPITAL STOCK TRANSACTIONS:                       Reinvestment of distributions       12,430,570           11,702,040     Total capital stock transactions       12,430,570           11,702,040     Net Increase (Decrease) In Net Assets       (64,405,771 )         46,204,163     NET ASSETS:                         Beginning of year       409,904,916           363,700,753     End of year (including undistributed net investment income (loss) of $(1,002,531) at 12/31/17 2)     $ 345,499,145         $ 409,904,916    
1 Distributions from net investment income and from realized gains are no longer required to be separately disclosed. See Notes to Financial Statements.
2 Parenthetical disclosure of undistributed net investment income is no longer required. See Notes to Financial Statements.

32 | 2018 Annual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
       
Royce Micro-Cap Trust   Year Ended December 31, 2018
  Statement of Operations
INVESTMENT INCOME:           INCOME:           Dividends     $ 5,767,854     Foreign withholding tax       (113,975 )   Interest       104,775   Rehypothecation income       296,080     Total income       6,054,734     EXPENSES:             Investment advisory fees       3,817,577     Interest expense       1,239,044     Stockholder reports       135,184     Administrative and office facilities       127,067     Directors’ fees       99,931     Custody and transfer agent fees       92,657     Professional fees       61,330     Other expenses       53,502     Total expenses       5,626,292     Compensating balance credits       (1,441 )   Net expenses       5,624,851     Net investment income (loss)       429,883     REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY:           NET REALIZED GAIN (LOSS):             Investments       30,324,947     Foreign currency transactions       (13,890 )   NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION):             Investments       (77,891,159 )   Other assets and liabilities denominated in foreign currency       (381 )   Net realized and unrealized gain (loss) on investments and foreign currency       (47,580,483 )   NET INCREASE (DECREASE) IN NET ASSETS FROM INVESTMENT OPERATIONS     $ (47,150,600 )  
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2018 Annual Report to Stockholders | 33
       
Royce Micro-Cap Trust   Year Ended December 31, 2018
  Statement of Cash Flows
CASH FLOWS FROM OPERATING ACTIVITIES:           Net increase (decrease) in net assets from investment operations     $ (47,150,600 )   Adjustments to reconcile net increase (decrease) in net assets from investment operations to net cash provided by operating activities:            

Purchases of long-term investments

      (88,755,815 )  

Proceeds from sales and maturities of long-term investments

      114,606,335    

Net purchases, sales and maturities of short-term investments

      13,880,000    

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

      (35,578 )  

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

      145,345    

Net change in unrealized appreciation (depreciation) on investments

      77,891,159    

Net realized gain (loss) on investments

      (30,324,947 )   Net cash provided by operating activities       40,255,899     CASH FLOWS FROM FINANCING ACTIVITIES:           Decrease in revolving credit agreement       (23,000,000 )   Distributions       (29,685,741 )   Reinvestment of distributions       12,430,570     Net cash used for financing activities       (40,255,171 )   INCREASE (DECREASE) IN CASH:       728     Cash and foreign currency at beginning of year       (303 )   Cash and foreign currency at end of year     $ 425    
Supplemental disclosure of cash flow information: For the year ended December 31, 2018, the Fund paid $1,243,108 in interest expense.
34 | 2018 Annual 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.
      YEARS ENDED               12/31/18   12/31/17   12/31/16   12/31/15   12/31/14   Net Asset Value, Beginning of Period     $ 10.48     $ 9.63     $ 8.59     $ 11.33     $ 14.12     INVESTMENT OPERATIONS:                                           Net investment income (loss)       0.01       0.06       0.03       0.03       (0.01 )   Net realized and unrealized gain (loss) on investments and foreign currency       (1.18 )     1.52       1.70       (1.42 )     0.25     Net increase (decrease) in net assets from investment operations       (1.17 )     1.58       1.73       (1.39 )     0.24     DISTRIBUTIONS:                                           Net investment income       (0.00 )     (0.06 )     (0.08 )     (0.01 )     (0.04 )   Net realized gain on investments and foreign currency       (0.75 )     (0.63 )     (0.56 )     (1.25 )     (2.86 )   Total distributions       (0.75 )     (0.69 )     (0.64 )     (1.26 )     (2.90 )   CAPITAL STOCK TRANSACTIONS:                                           Effect of reinvestment of distributions by Common Stockholders       (0.03 )     (0.04 )     (0.05 )     (0.09 )     (0.13 )   Total capital stock transactions       (0.03 )     (0.04 )     (0.05 )     (0.09 )     (0.13 )   Net Asset Value, End of Period     $ 8.53     $ 10.48     $ 9.63     $ 8.59     $ 11.33     Market Value, End of Period     $ 7.42     $ 9.44     $ 8.16     $ 7.26     $ 10.08     TOTAL RETURN:1                                           Net Asset Value       (11.62 )%     17.67 %     21.98 %     (11.64 )%     3.46 %   Market Value       (14.65 )%     25.09 %     22.30 %     (16.06 )%     3.06 %   RATIOS BASED ON AVERAGE NET ASSETS:                                           Investment advisory fee expense2       0.92 %3     0.49 %     0.87 %     0.93 %     0.93 %   Other operating expenses       0.43 %     0.40 %     0.39 %     0.35 %     0.25 %   Total expenses (net)       1.35 %     0.89 %     1.26 %     1.28 %     1.18 %   Expenses excluding interest expense       1.05 %     0.62 %     1.02 %     1.08 %     1.05 %   Expenses prior to balance credits       1.35 %     0.89 %     1.26 %     1.28 %     1.18 %   Net investment income (loss)       0.10 %     0.56 %     0.32 %     0.26 %     (0.09 )%   SUPPLEMENTAL DATA:                                           Net Assets, End of Period (in thousands)     $ 345,499     $ 409,905     $ 363,701     $ 312,407     $ 387,488     Portfolio Turnover Rate       21 %     15 %     26 %     39 %     41 %   REVOLVING CREDIT AGREEMENT:                                           Asset coverage       1670 %     1011 %     908 %     794 %     746 %   Asset coverage per $1,000     $ 16,705     $ 10,109     $ 9,082     $ 7,942     $ 7,458    
1
The Market Value Total Return is calculated assuming a purchase of Common Stock on the opening of the first business day and a sale on the closing of the last business day of each period. Dividends and distributions are assumed for the purposes of this calculation to be reinvested at prices obtained under the Fund’s Distribution Reinvestment and Cash Purchase Plan. Net Asset Value Total Return is calculated on the same basis, except that the Fund’s net asset value is used on the purchase and sale dates instead of market value.
2
The investment advisory fee is calculated based on average net assets over a rolling 36-month basis, while the above ratios of investment advisory fee expenses are based on the average net assets over a 12-month basis.
3
This reflects the impact of the adjustment of prior period’s performance fees of 0.06%.

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2018 Annual Report to Stockholders | 35
       
Royce Micro-Cap Trust

Notes to Financial Statements

Summary of Significant Accounting Policies
Royce Micro-Cap Trust, Inc. (the “Fund”), is a diversified closed-end investment company that was incorporated under the laws of the State of Maryland on September 9, 1993. The Fund commenced operations on December 14, 1993.
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 “Financial Services-Investment Companies”.
  VALUATION OF INVESTMENTS:
Securities are valued as of the close of trading on the New York Stock Exchange (NYSE) (generally 4:00 p.m. Eastern time) on the valuation date. Securities that trade on an exchange, and securities traded on Nasdaq’s Electronic Bulletin Board, are valued at their last reported sales price or Nasdaq official closing price taken from the primary market in which each security trades or, if no sale is reported for such day, at their highest bid price. Other over-the-counter securities for which market quotations are readily available are valued at their highest bid price, except in the case of some bonds and other fixed income securities which may be valued by reference to other securities with comparable ratings, interest rates and maturities, using established independent pricing services. The Fund values its non-U.S. dollar denominated securities in U.S. dollars daily at the prevailing foreign currency exchange rates as quoted by a major bank. Securities for which market quotations are not readily available are valued at their fair value in accordance with the provisions of the 1940 Act, under procedures approved by the Fund’s Board of Directors, and are reported as Level 3 securities. As a general principle, the fair value of a security is the amount which the Fund might reasonably expect to receive for the security upon its current sale. However, in light of the judgment involved in fair valuations, there can be no assurance that a fair value assigned to a particular security will be the amount which the Fund might be able to receive upon its current sale. In addition, if, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and may make the closing price unreliable, the Fund may fair value the security. The Fund uses an independent pricing service to provide fair value estimates for relevant non-U.S. equity securities on days when the U.S. market volatility exceeds a certain threshold. This pricing service uses proprietary correlations it has developed between the movement of prices of non-U.S. equity securities and indices of U.S.-traded securities, futures contracts and other indications to estimate the fair value of relevant non-U.S. securities. When fair value pricing is employed, the prices of securities used by the Fund may differ from quoted or published prices for the same security. Investments in money market funds are valued at net asset value per share.
Various inputs are used in determining the value of the Fund’s investments, as noted above. These inputs are summarized in the three broad levels below:     Level 1 quoted prices in active markets for identical securities.     Level 2
other significant observable inputs (including quoted prices for similar securities, foreign securities that may be fair valued and repurchase agreements). The table below includes all Level 2 securities. Level 2 securities with values based on quoted prices for similar securities are noted in the Schedule of Investments.
    Level 3
significant unobservable inputs (including last trade price before trading was suspended, or at a discount thereto for lack of marketability or otherwise, market price information regarding other securities, information received from the company and/or published documents, including SEC filings and financial statements, or other publicly available information).
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used to value the Fund’s investments as of December 31, 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     $339,905,958       $7,415,547       $241,800       $347,563,305     Preferred Stocks     1,960,000                   1,960,000     Warrants     147,472             0       147,472     Repurchase Agreement           17,550,000             17,550,000    

Certain securities have transferred in and out of Level 1 and Level 2 measurements during the reporting period. This is generally due to whether fair value factors have been applied. The Fund recognizes transfers between levels as of the end of the reporting period. For the year ended December 31, 2018, securities valued at $1,671,930 were transferred from Level 1 to Level 2 and securities valued at $13,559,741 were transferred from Level 2 to Level 1 within the fair value hierarchy.

36 | 2018 Annual Report to Stockholders
       
Royce Micro-Cap Trust
Notes to Financial Statements (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 12/31/18   Common Stocks   $241,800   $0    $–    $–   $241,800   Warrants     0       0   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       12/31/18   VALUATION TECHNIQUE(S)   UNOBSERVABLE INPUT(S)   RANGE AVERAGE   AN INCREASE IN INPUT1             Discounted Present Value             Common Stocks     $241,800   Balance Sheet Analysis   Liquidity Discount   30%-40%   Decrease   1
This column represents the directional change in the fair value of the Level 3 investments that would result in an increase from the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. Significant increases and decreases in these unobservable inputs in isolation could result in significantly higher or lower fair value measurements.

REPURCHASE AGREEMENTS:
The Fund may enter into repurchase agreements with institutions that the Fund’s investment adviser has determined are creditworthy. The Fund restricts repurchase agreements to maturities of no more than seven days. Securities pledged as collateral for repurchase agreements, which are held until maturity of the repurchase agreements, are marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest). Repurchase agreements could involve certain risks in the event of default or insolvency of the counter-party, including possible delays or restrictions upon the ability of the Fund to dispose of its underlying securities. The remaining contractual maturity of the repurchase agreement held by the Fund at December 31, 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, other than investments in securities at the end of the reporting period, as a result of changes in foreign currency exchange rates.
The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.
  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 Annual Report to Stockholders | 37
       
Royce Micro-Cap Trust   Notes to Financial Statements (continued)
INVESTMENT TRANSACTIONS AND RELATED INVESTMENT INCOME:
Investment transactions are accounted for on the trade date. Dividend income is recorded on the ex-dividend date. Non-cash dividend income is recorded at the fair market value of the securities received. Interest income is recorded on an accrual basis. 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 1,383,439 and 1,336,310 shares of Common Stock as reinvestment of distributions for the years ended December 31, 2018 and 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 179-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 December 31, 2018, the Fund has outstanding borrowings of $22,000,000. During the year ended December 31, 2018, the Fund borrowed an average daily balance of $38,065,753 at a weighted average borrowing cost of 3.26%. The maximum amount outstanding during the year ended December 31, 2018 was $45,000,000. As of December 31, 2018, the aggregate value of rehypothecated securities was $19,128,492. During the year ended December 31, 2018, the Fund earned $296,080 in fees from rehypothecated securities.
  Investment Advisory Agreement:
As compensation for its services under the investment advisory agreement, Royce receives a fee comprised of a Basic Fee (“Basic Fee”) and an adjustment to the Basic Fee based on the investment performance of the Fund in relation to the investment record of the Russell 2000.
The Basic Fee is a monthly fee equal to 1/12 of 1% (1% on an annualized basis) of the average of the Fund’s month-end net assets 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

38 | 2018 Annual Report to Stockholders
       
Royce Micro-Cap Trust   Notes to Financial Statements (continued)
Investment Advisory Agreement (continued):
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 twelve rolling 36-month periods in 2018, the Fund’s investment performance ranged from 4% above to 5% below the investment performance of the Russell 2000. Accordingly, the net investment advisory fee consisted of a Basic Fee of $3,646,272 and a net downward adjustment of $73,831 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 year ended December 31, 2018, the Fund expensed Royce investment advisory fees totaling $3,817,577.
  Purchases and Sales of Investment Securities:
For the year ended December 31, 2018, the costs of purchases and proceeds from sales of investment securities, other than short-term securities, amounted to $88,074,520 and $108,402,436, 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 year ended December 31, 2018, were as follows:

COSTS OF PURCHASES     PROCEEDS FROM SALES     REALIZED GAIN (LOSS)   $10,494,930     $842,672     $393,874  
Tax Information: Distributions during the years ended December 31, 2018 and 2017, were characterized as follows for tax purposes:
ORDINARY INCOME     LONG-TERM CAPITAL GAINS   2018     2017     2018     2017   $1,668,339     $5,516,070     $28,017,402     $20,901,893  
    The tax basis components of distributable earnings at December 31, 2018, were as follows:
                  QUALIFIED LATE YEAR               UNDISTRIBUTED LONG-TERM     NET UNREALIZED     ORDINARY AND       TOTAL UNDISTRIBUTED     CAPITAL GAINS OR     APPRECIATION     POST-OCTOBER LOSS       DISTRIBUTABLE ORDINARY INCOME     (CAPITAL LOSS CARRYFORWARD)     (DEPRECIATION)1     DEFERRALS2       EARNINGS   $894,213     $421,579     $3,160,591     $(526,481)       $3,949,902   1
Includes timing differences on foreign currency, recognition of losses on securities sold, investments in publicly traded partnerships and Trusts and mark-to-market of Passive Foreign Investment Companies.
2
Under the current tax law, capital losses and qualified late year ordinary losses incurred after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. This column also includes passive activity losses.

For financial reporting purposes, capital accounts and distributions to stockholders are adjusted to reflect the tax character of permanent book/tax differences. For the year ended December 31, 2018, the Fund had no reclassifications.
Management has analyzed the Fund’s tax positions taken on federal income tax returns for all open tax years (2015-2018) and has concluded that as of December 31, 2018, no provision for income tax is required in the Fund’s financial statements.
  Recent Accounting Pronouncement:
In August 2018, the Securities and Exchange Commission released its Final Rule on Disclosure Update and Simplification (the “Final Rule”) which is intended to simplify an issuer’s disclosure compliance efforts by removing redundant or outdated disclosure requirements without significantly altering the mix of information provided to investors. Effective with the current reporting period, the Fund adopted the Final Rule with the most notable impacts being that the Fund is no longer required to present the components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributions to stockholders and the amount of undistributed net investment income on the Statement of Changes in Net Assets.
  Subsequent Events:
Subsequent events have been evaluated through the date the financial statements were issued.

2018 Annual Report to Stockholders | 39
       
Report of Independent Registered Public Accounting Firm   To the Board of Directors and the Stockholders of Royce Micro-Cap Trust, Inc.:   Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Royce Micro-Cap Trust, Inc. (the “Fund”) as of December 31, 2018, the related statements of operations and cash flows for the year ended December 31, 2018, the statement of changes in net assets for each of the two years in the period ended December 31, 2018, including the related notes, and the financial highlights for each of the four years in the period ended December 31, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2018, the results of its operations and its cash flows for the year then ended, the changes in its net assets for each of the two years in the period ended December 31, 2018 and the financial highlights for each of the four years in the period ended December 31, 2018 in conformity with accounting principles generally accepted in the United States of America.
 
The financial statements of the Fund as of and for the year ended December 31, 2014 and the financial highlights for each of the periods ended on or prior to December 31, 2014 (not presented herein, other than the financial highlights) were audited by other auditors whose report dated February 23, 2015 expressed an unqualified opinion on those financial statements and financial highlights.
  Basis for Opinion  
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
 
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
 
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2018 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
    /s/PricewaterhouseCoopers LLP New York, New York February 21, 2019  
We have served as the auditor of one or more investment companies in the Royce investment company group since at least 1967. We have not been able to determine the specific year we began serving as auditor.

40 | 2018 Annual Report to Stockholders
       

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2018 Annual Report to Stockholders | 41
       
MANAGERS’ DISCUSSION   Royce Value Trust (RVT)
Chuck Royce
FUND PERFORMANCE Following two consecutive years of strong absolute and relative performance, Royce Value Trust pulled back in 2018 compared to its unleveraged small-cap benchmarks—though it maintained its longer-term relative advantages. The Fund was down 14.4% on an NAV (net asset value) basis and 20.4% based on market price in 2018, compared to respective declines of 11.0% and 8.5% for the Russell 2000 and S&P SmallCap 600 Indexes for the same period. Still, we were pleased that on an NAV basis, RVT outpaced the Russell 2000 for the three-, 10-, 20-, 25-, 30-year, and since inception (11/26/86) periods ended December 31, 2018. On a market price basis, the Fund outperformed for all of these periods except the 10-year span.   WHAT WORKED... AND WHAT DIDN’T Eight of the Fund’s 11 equity sectors declined in 2018. Industrials detracted most by a sizable margin, followed by Information Technology and Consumer Discretionary while Health Care, Utilities, and Consumer Staples made modest positive contributions.
    The five industry groups with the most significant net losses for the Fund came from five different sectors, which gives a sense of how broad declines were for small-caps in 2018. By sizable margins, the machinery group was both the biggest detractor and our heaviest weighting in Industrials at year-end. Fourth-quarter difficulties for two machinery stocks—Sun Hydraulics (which does business as Helios Technologies) and CIRCOR International—had appreciable negative impacts on performance. Sun Hydraulics manufactures hydraulic and electronic controls systems for a variety of industrial and recreational equipment makers. The company continued to book solid incoming orders, but labor and materials cost pressures, as well as a series of operational miscues stemming from a rush to meet growing demand, brought margins and earnings below expectations. CIRCOR makes valves for fluid control systems. Its shares fell precipitously in the fourth quarter amid concerns that slowing global growth, U.S.-China trade tensions, and the significant drop in oil prices—energy companies being among its larger end markets—would put a damper on CIRCOR’s positive order trends, pushing out a long-awaited improvement in profit margins and free cash flow earmarked for debt reduction. We held shares in each company at year-end, confident in their respective abilities to recover.
    Information Technology’s electronic equipment, instruments & components group had the second-largest negative impact at the industry level and was home to RVT’s top-detracting position. Coherent is a laser diode and equipment maker that made the journey from first to worst between 2017 and 2018 as the company faced something of a perfect storm in the latter year. First, the materials processing market in China slowed. Although the slowdown was somewhat expected, the steep rate of change was not. Coherent also faced some early struggles with its acquisition of Rofin-Sinar. Perhaps most important, the firm saw appreciably slower demand for its laser systems, where it effectively holds a monopoly position for OLED (organic light-emitting diode) manufacturing for smartphones. Our analysis indicated that these challenges had been more than priced in, so we added shares in 2018. Our confidence was rooted in Coherent’s highly profitable and growing OLED service segment and OLED penetration into the television and automotive industries. Coherent also stands to benefit from Apple’s possible switch from LCD phones to exclusively OLED.
    The portfolio’s top-contributing positions also hailed from the electronic equipment, instruments & components group. Fabrinet is a contract manufacturer that offers specialized products and services to original equipment manufacturers in the technology space. The merger of two large customers appeared to drive investors away in 2017 over concerns that the consolidation would contract Fabrinet’s business. The company then went ahead and executed successfully, and profitably, in 2018, which led its stock to recover. An industrial company that’s a leading provider of auctions for salvaged vehicles, Copart saw increases in volume and revenue per car in 2018.
    Relative to the Russell 2000 in 2018, sector allocation was a much larger source of underperformance than stock selection. Ineffective stock picks did hurt significantly, however, in Information Technology and Consumer Discretionary while our overweight in Industrials also hampered performance versus the index. Conversely, the portfolio benefited from savvy stock selection in the Materials and Energy sectors.

Top Contributors to Performance       For 2018 (%)1               Fabrinet   0.33     Copart   0.20     HEICO Corporation   0.18     Seeing Machines   0.14     Quaker Chemical   0.13     1 Includes dividends      
Top Detractors from Performance       For 2018 (%)2               Coherent   -0.76     Sun Hydraulics   -0.60     CIRCOR International   -0.58     Thor Industries   -0.55     Cognex Corporation   -0.47     2 Net of dividends      
CURRENT POSITIONING AND OUTLOOK While we acknowledge the many potential sources of risk on the horizon—economic, geopolitical, and financial—we also think that these concerns have already been reflected, perhaps even excessively so, in current valuations. In short order, we shifted from a period when small-cap’s extended valuations seemed out of sync given the index’s high levels of debt and low profitability to one at the end of the year where valuations seemed more pessimistic than we think is warranted—at least in select instances. As a result, we put cash to work as we identified what we thought were terrific opportunities —the Fund was fully invested at year-end. Down years for small-caps have often been followed by strong ones. We believe that the portfolio’s cyclical tilt will be rewarded as recessionary concerns dissipate during the year.
42 | 2018 Annual Report to Stockholders
 
PERFORMANCE AND PORTFOLIO REVIEW   SYMBOLS  MARKET PRICE RVT NAV XRVTX
  Performance Average Annual Total Return (%) Through 12/31/18     JUL-DEC 20181   1-YR   3-YR   5-YR   10-YR   15-YR   20-YR   25-YR   30-YR   SINCE INCEPTION (11/26/86)   RVT (NAV)   -16.77   -14.45   9.00   3.70   12.14   7.17   8.42   9.34   10.20   9.94   1 Not Annualized                        
  Market Price Performance History Since Inception (11/26/86) Cumulative Performance of Investment through 12/31/181

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.


Top 10 Positions     % of Net Assets           HEICO Corporation   2.3   FLIR Systems   2.1   Quaker Chemical   1.8   Minerals Technologies   1.4   ProAssurance Corporation   1.2   RBC Bearings   1.1   Franklin Electric   1.1   Reliance Steel & Aluminum   1.1   Cognex Corporation   1.0   Kirby Corporation   1.0  

Portfolio Sector Breakdown     % of Net Assets           Industrials   29.0   Financials   18.0   Information Technology   17.8   Materials   11.3   Consumer Discretionary   9.6   Energy   5.6   Health Care   5.3   Real Estate   3.9   Consumer Staples   1.9   Communication Services   1.8   Utilities   0.3   Outstanding Line of Credit, Net of Cash and Cash Equivalents   -4.5  

Calendar Year Total Returns (%)           YEAR   RVT   2018   -14.4   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  

Portfolio Diagnostics           Fund Net Assets   $1,304 million   Number of Holdings   315   Turnover Rate   28%   Net Asset Value   $13.73   Market Price   $11.80   Net Leverage1   4.5%   Average Market Capitalization2   $1,693 million   Weighted Average P/E Ratio3,4   15.3x   Weighted Average P/B Ratio3   1.9x   Active Share5   90%   U.S. Investments (% of Net Assets)   89.2%   Non-U.S. Investments (% of Net Assets)   15.3%  
Net leverage is the percentage, in excess of 100%, of the total value of equity type investments, divided by net assets.
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 (14% of portfolio holdings as of 12/31/18).
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. 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 Annual Report to Stockholders | 43
       

Royce Value Trust

  Schedule of Investments               Common Stocks – 104.4%                   SHARES     VALUE       COMMUNICATION SERVICES – 1.8%               ENTERTAINMENT - 0.1%              

Global Eagle Entertainment 1

  110,000     $ 245,300  

Rosetta Stone 1,2

  40,000       656,000                             901,300                 INTERACTIVE MEDIA & SERVICES - 0.4%              

QuinStreet 1,2,3

  180,254       2,925,522  

TripAdvisor 1,2,3

  50,000       2,697,000                             5,622,522                 MEDIA - 1.2%              

†Cable One

  3,885       3,186,089  

comScore 1,2,3

  440,836       6,361,263  

Gray Television 1,2

  50,000       737,000  

Liberty Latin America Cl. C 1,2

  246,300       3,588,591  

Meredith Corporation 2

  29,900       1,553,006  

Pico Far East Holdings

  2,612,400       944,141                             16,370,090                 WIRELESS TELECOMMUNICATION SERVICES - 0.1%              

Boingo Wireless 1,2

  50,000       1,028,500       Total (Cost $26,324,237)           23,922,412                       CONSUMER DISCRETIONARY – 9.6%               AUTO COMPONENTS - 1.5%              

Dorman Products 1,2,3

  103,000       9,272,060  

Gentex Corporation 2

  62,500       1,263,125  

LCI Industries 2,3

  127,416       8,511,389  

Standard Motor Products 2

  13,391       648,526                             19,695,100                 AUTOMOBILES - 0.4%              

Thor Industries 2

  100,430       5,222,360                 DISTRIBUTORS - 0.9%              

Core-Mark Holding Company 2

  220,900       5,135,925  

LKQ Corporation 1,2

  171,200       4,062,576  

Weyco Group 2,3

  97,992       2,858,426                             12,056,927                 DIVERSIFIED CONSUMER SERVICES - 0.4%              

Collectors Universe

  71,100       807,696  

Houghton Mifflin Harcourt 1

  100,000       886,000  

Liberty Tax Cl. A 4

  151,573       1,773,404  

Universal Technical Institute 1

  504,032       1,839,717                             5,306,817                 HOTELS, RESTAURANTS & LEISURE - 0.2%              

Lindblad Expeditions Holdings 1,2,3

  207,600       2,794,296                 HOUSEHOLD DURABLES - 0.8%              

Cavco Industries 1,2

  14,700       1,916,586  

Ethan Allen Interiors 2

  200,000       3,518,000  

HG Holdings 1,4,5

  912,235       392,261  

Natuzzi ADR 1

  2,096,300       1,656,077  

†Purple Innovation 1

  275,000       1,619,750  

Skyline Champion

  70,400       1,034,176                             10,136,850                 INTERNET & DIRECT MARKETING RETAIL - 0.9%              

†Etsy 1,2,3

  57,600       2,740,032  

FTD Companies 1

  298,014       441,061  

Stamps.com 1

  35,700       5,556,348  

†Waitr Holdings Cl. A 1

  94,850       1,057,577  

†zooplus 1

  9,200       1,253,313                             11,048,331                 LEISURE PRODUCTS - 0.5%              

Nautilus 1,2,3

  574,500       6,262,050                                 SPECIALTY RETAIL - 2.9%              

America’s Car-Mart 1,2

  120,000       8,694,000  

AutoCanada

  993,000       8,255,604  

Barnes & Noble

  67,000       475,030  

Camping World Holdings Cl. A 2,3

  618,613       7,095,491  

Container Store Group (The) 1

  158,200       754,614  

Destination Maternity 1

  557,967       1,584,626  

Monro 2

  146,000       10,037,500  

Signet Jewelers 2

  35,000       1,111,950  

TravelCenters of America LLC 1

  62,500       235,000                             38,243,815                 TEXTILES, APPAREL & LUXURY GOODS - 1.1%              

Culp 2

  29,400       555,660  

J.G. Boswell Company 4

  3,940       2,167,000  

Wolverine World Wide 2

  358,900       11,445,321                             14,167,981       Total (Cost $145,341,423)           124,934,527                       CONSUMER STAPLES – 1.9%               BEVERAGES - 0.1%              

Compania Cervecerias Unidas ADR 2

  64,500       1,620,885                 FOOD PRODUCTS - 1.4%              

Cal-Maine Foods 2,3

  44,016       1,861,877  

Farmer Bros. 1,2

  54,700       1,276,151  

Nomad Foods 1,2

  125,000       2,090,000  

Seneca Foods Cl. A 1,2,3

  226,560       6,393,523  

Seneca Foods Cl. B 1

  13,840       390,426  

SunOpta 1

  50,000       193,500  

Tootsie Roll Industries 2,3

  165,529       5,528,669                             17,734,146                 PERSONAL PRODUCTS - 0.4%              

Inter Parfums 2

  80,993       5,310,711       Total (Cost $18,769,417)           24,665,742                       ENERGY – 5.6%               ENERGY EQUIPMENT & SERVICES - 4.5%              

CARBO Ceramics 1

  78,000       271,440  

Computer Modelling Group

  1,220,650       5,445,179  

Diamond Offshore Drilling 1,2,3

  214,000       2,020,160  

Era Group 1

  660,693       5,774,457  

Forum Energy Technologies 1

  249,431       1,030,150  

Frank’s International 1

  108,600       566,892  

Helmerich & Payne 2

  94,000       4,506,360  

ION Geophysical 1

  71,880       372,338  

Oil States International 1,2,3

  211,365       3,018,292  

Pason Systems

  607,080       8,133,236  

Precision Drilling 1

  93,900       163,386  

SEACOR Holdings 1,2,3

  261,469       9,674,353  

SEACOR Marine Holdings 1,2

  638,834       7,512,688  

TGS-NOPEC Geophysical

  358,670       8,661,342  

Trican Well Service 1

  897,300       782,147  

Unit Corporation 1

  15,000       214,200                             58,146,620                 OIL, GAS & CONSUMABLE FUELS - 1.1%              

Dorchester Minerals L.P. 2

  279,148       4,086,727  

Dorian LPG 1

  394,936       2,302,477  

GeoPark 1

  53,200       735,224  

†International Petroleum 1

  100,000       329,461  

Pryce Corporation

  2,523,300       278,314  
44 | 2018 Annual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
       
December 31, 2018
  Schedule of Investments (continued)                   SHARES     VALUE       ENERGY (continued)               OIL, GAS & CONSUMABLE FUELS (continued)              

San Juan Basin Royalty Trust

  212,272     $ 1,018,906  

World Fuel Services 2

  224,227       4,800,700  

WPX Energy 1,2

  110,000       1,248,500                               14,800,309       Total (Cost $101,200,211)           72,946,929                       FINANCIALS – 18.0%               BANKS - 2.9%              

Bank of N.T. Butterfield & Son 2

  228,416       7,160,842  

Canadian Western Bank

  279,500       5,331,219  

Farmers & Merchants Bank of Long Beach 4

  1,080       8,100,000  

Fauquier Bankshares 2

  160,800       2,936,208  

First Citizens BancShares Cl. A

  14,676       5,533,586  

†Metro Bank 1

  20,000       431,579  

Webster Financial 2,3

  161,900       7,980,051                             37,473,485                 CAPITAL MARKETS - 8.8%              

Ares Management 2

  611,100       10,865,358  

Artisan Partners Asset Management Cl. A 2

  272,700       6,029,397  

ASA Gold and Precious Metals

  199,821       1,890,307  

Ashmore Group

  1,354,000       6,309,554  

Associated Capital Group Cl. A 2

  20,200       711,646  

†Bolsa Mexicana de Valores

  1,723,106       2,937,349  

Cowen 1

  62,706       836,498  

Dundee Corporation Cl. A 1

  1,079,900       1,012,505  

Edmond de Rothschild (Suisse)

  153       2,334,927  

†Focus Financial Partners Cl. A 1,2

  50,000       1,316,500  

GMP Capital

  287,100       395,362  

Hamilton Lane Cl. A 2

  13,800       510,600  

Houlihan Lokey Cl. A 2,3

  50,300       1,851,040  

Jupiter Fund Management

  230,000       865,402  

Lazard Cl. A 2

  162,535       5,999,167  

Manning & Napier Cl. A

  395,692       696,418  

MarketAxess Holdings

  51,600       10,903,596  

Morningstar 2

  84,600       9,292,464  

MVC Capital

  195,688       1,606,599  

Oaktree Capital Group LLC Cl. A 2,3

  326,300       12,970,425  

Qalaa Holdings 1

  7,749,921       1,531,810  

Rothschild & Co

  88,293       3,120,838  

SEI Investments 2

  148,500       6,860,700  

Sprott

  2,564,800       4,828,257  

TMX Group

  40,700       2,108,637  

U.S. Global Investors Cl. A

  520,551       572,606  

Value Partners Group

  5,453,000       3,781,341  

Virtu Financial Cl. A 2,3

  455,500       11,733,680  

Westwood Holdings Group 2

  38,850       1,320,900                             115,193,883                 DIVERSIFIED FINANCIAL SERVICES - 0.1%              

First Pacific

  1,020,000       393,385  

Waterloo Investment Holdings 1,6

  2,972,000       891,600                             1,284,985                 INSURANCE - 4.2%              

E-L Financial

  22,500       12,130,091  

Erie Indemnity Cl. A

  25,000       3,332,750  

Independence Holding Company 2

  259,223       9,124,649  

MBIA 1

  942,400       8,406,208  

ProAssurance Corporation 2

  398,657       16,169,528  

RLI Corp. 2,3

  45,500       3,139,045  

Trupanion 1,2

  106,500       2,711,490                             55,013,761                 INVESTMENT COMPANIES - 0.7%              

RIT Capital Partners

  41,000       998,139  

†Social Capital Hedosophia Holdings Cl. A 1

  819,918       8,199,180                             9,197,319                 THRIFTS & MORTGAGE FINANCE - 1.3%              

Axos Financial 1,2

  176,280       4,438,730  

Genworth MI Canada

  206,895       6,092,279  

Timberland Bancorp 2,3

  288,857       6,441,511  

Vestin Realty Mortgage II 1,4

  34       34,000                             17,006,520       Total (Cost $221,704,330)           235,169,953                       HEALTH CARE – 5.3%               BIOTECHNOLOGY - 0.5%              

AMAG Pharmaceuticals 1,2

  61,300       931,147  

Sangamo Therapeutics 1

  65,815       755,556  

Zealand Pharma 1

  408,857       5,169,925                             6,856,628                 HEALTH CARE EQUIPMENT & SUPPLIES - 2.4%              

Atrion Corporation

  15,750       11,672,010  

DENTSPLY SIRONA

  5,000       186,050  

Hill-Rom Holdings

  5,000       442,750  

Integer Holdings 1,2,3

  42,400       3,233,424  

Masimo Corporation 1,2

  50,000       5,368,500  

†Merit Medical Systems 1,2,3

  33,000       1,841,730  

Neogen Corporation 1,2

  22,400       1,276,800  

Surmodics 1,2

  138,500       6,545,510                             30,566,774                 HEALTH CARE PROVIDERS & SERVICES - 0.2%              

Community Health Systems 1

  790,000       2,227,800                 HEALTH CARE TECHNOLOGY - 1.3%              

athenahealth 1

  32,500       4,287,725  

Medidata Solutions 1,2,3

  186,750       12,590,685                             16,878,410                 LIFE SCIENCES TOOLS & SERVICES - 0.8%              

Bio-Rad Laboratories Cl. A 1

  34,198       7,941,460  

Bio-Techne 2

  21,143       3,059,815                             11,001,275                 PHARMACEUTICALS - 0.1%              

†Alimera Sciences 1

  319,186       229,207  

†TherapeuticsMD 1

  50,000       190,500  

Theravance Biopharma 1,2

  34,291       877,507                             1,297,214       Total (Cost $50,132,978)           68,828,101                       INDUSTRIALS – 28.9%               AEROSPACE & DEFENSE - 3.6%              

Ducommun 1,2

  117,200       4,256,704  

HEICO Corporation 2

  260,346       20,171,608  

HEICO Corporation Cl. A 2,3

  157,827       9,943,101  

Hexcel Corporation 2

  53,400       3,061,956  

Magellan Aerospace

  96,800       1,062,162  

Teledyne Technologies 1

  5,900       1,221,713  

Wesco Aircraft Holdings 1

  935,364       7,389,376                             47,106,620                
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2018 Annual Report to Stockholders | 45
       

Royce Value Trust

  Schedule of Investments (continued)                   SHARES     VALUE       INDUSTRIALS (continued)               AIR FREIGHT & LOGISTICS - 1.5%              

Expeditors International of Washington 2

  143,000     $ 9,736,870  

Forward Air 2

  170,750       9,365,637                             19,102,507                 BUILDING PRODUCTS - 0.4%              

Burnham Holdings Cl. B 4

  36,000       500,400  

Patrick Industries 1,2

  15,775       467,098  

Simpson Manufacturing 2

  66,700       3,610,471                             4,577,969                 COMMERCIAL SERVICES & SUPPLIES - 1.8%              

Atento 1

  188,700       756,687  

CECO Environmental 1

  99,028       668,439  

CompX International Cl. A 2,3

  211,100       2,873,071  

Heritage-Crystal Clean 1,2

  100,106       2,303,439  

Kimball International Cl. B 2

  286,180       4,060,894  

Mobile Mini 2

  105,000       3,333,750  

PICO Holdings 1

  409,400       3,741,916  

Ritchie Bros. Auctioneers 2

  54,900       1,796,328  

Steelcase Cl. A 2

  40,000       593,200  

UniFirst Corporation

  26,270       3,758,449                             23,886,173                 CONSTRUCTION & ENGINEERING - 3.4%              

†Arcosa 1,2

  50,000       1,384,500  

EMCOR Group 2

  65,800       3,927,602  

IES Holdings 1,2,3

  594,244       9,240,494  

†Infrastructure and Energy Alternatives 1

  600,000       4,914,000  

Jacobs Engineering Group 2

  169,900       9,932,354  

KBR 2

  337,400       5,121,732  

Sterling Construction 1

  122,300       1,331,847  

Valmont Industries 2

  62,745       6,961,558  

Williams Industrial Services Group 1,4

  631,820       1,453,186                             44,267,273                 ELECTRICAL EQUIPMENT - 0.8%              

AZZ

  5,000       201,800  

LSI Industries

  814,857       2,583,097  

†nVent Electric 2

  25,000       561,500  

Powell Industries 2

  94,500       2,363,445  

Preformed Line Products 2

  91,600       4,969,300                             10,679,142                 INDUSTRIAL CONGLOMERATES - 0.7%              

Raven Industries 2

  251,725       9,109,928                 MACHINERY - 10.5%              

CIRCOR International 1,2

  433,309       9,229,482  

Colfax Corporation 1,2,3

  232,242       4,853,858  

Franklin Electric 2

  322,800       13,841,664  

Graco 2

  241,028       10,087,022  

Hyster-Yale Materials Handling Cl. A 2

  10,000       619,600  

John Bean Technologies 2

  113,226       8,130,759  

Kadant 2

  114,159       9,299,392  

Kennametal 2,3

  160,100       5,328,128  

Lincoln Electric Holdings 2

  136,160       10,736,216  

Lindsay Corporation 2,3

  110,000       10,587,500  

NN

  308,700       2,071,377  

Nordson Corporation 2

  24,296       2,899,727  

Proto Labs 1

  10,000       1,127,900  

RBC Bearings 1

  109,600       14,368,560  

Sun Hydraulics 2

  314,418       10,435,533  

Tennant Company 2,3

  111,900       5,831,109  

Titan International

  173,100       806,646  

Watts Water Technologies Cl. A 2

  61,000       3,936,330  

Westinghouse Air Brake Technologies 2

  73,100       5,135,275  

Woodward 2

  104,600       7,770,734                             137,096,812                 MARINE - 2.0%              

Clarkson

  471,100       11,408,815  

Eagle Bulk Shipping 1

  320,478       1,477,404  

Kirby Corporation 1,2,3

  199,400       13,431,584                             26,317,803                 PROFESSIONAL SERVICES - 1.0%              

Exponent 2,3

  100,000       5,071,000  

ManpowerGroup 2

  107,200       6,946,560  

Quess Corporation 1

  15,720       148,171  

TrueBlue 1,2

  56,245       1,251,451                             13,417,182                 ROAD & RAIL - 1.7%              

Genesee & Wyoming Cl. A 1,2

  15,000       1,110,300  

Knight-Swift Transportation Holdings Cl. A 2

  122,400       3,068,568  

Landstar System 2,3

  120,060       11,486,140  

Patriot Transportation Holding 1,2,3

  139,100       2,711,059  

Saia 1,2,3

  40,000       2,232,800  

Universal Logistics Holdings 2,3

  78,916       1,427,590                             22,036,457                 TRADING COMPANIES & DISTRIBUTORS - 1.5%              

Air Lease Cl. A 2

  364,700       11,017,587  

Houston Wire & Cable 1,5

  877,363       4,439,457  

†SiteOne Landscape Supply 1,2,3

  25,000       1,381,750  

Watsco 2

  17,700       2,462,778                             19,301,572       Total (Cost $304,165,139)           376,899,438                       INFORMATION TECHNOLOGY – 17.8%               COMMUNICATIONS EQUIPMENT - 0.2%              

ADTRAN 2

  214,973       2,308,810                 ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS - 9.3%              

Anixter International 1,2

  63,795       3,464,706  

Cognex Corporation 2

  350,600       13,557,702  

Coherent 1

  85,800       9,069,918  

Fabrinet 1,2

  163,100       8,368,661  

FARO Technologies 1,2

  179,437       7,292,320  

FLIR Systems 2

  636,637       27,719,175  

Horiba

  12,000       491,583  

IPG Photonics 1

  51,100       5,789,119  

Littelfuse

  30,800       5,281,584  

National Instruments 2

  261,850       11,882,753  

†nLIGHT 1,2,3

  282,200       5,017,516  

Perceptron 1

  357,700       2,883,062  

Plexus Corporation 1,2

  150,600       7,692,648  

Richardson Electronics

  573,732       4,985,731  

Rogers Corporation 1,2

  32,366       3,206,176  

TTM Technologies 1,2,3

  496,400       4,829,972                             121,532,626                 IT SERVICES - 0.7%              

Conduent 1

  20,000       212,600  

Hackett Group (The) 2

  417,266       6,680,429  

Innodata 1

  8,498       12,747  

Unisys Corporation 1,2,3

  160,000       1,860,800                             8,766,576                
46 | 2018 Annual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
       
December 31, 2018
  Schedule of Investments (continued)                   SHARES     VALUE       INFORMATION TECHNOLOGY (continued)               SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 5.2%              

Advanced Energy Industries 1,2

  63,100     $ 2,708,883  

Brooks Automation 2

  440,700       11,537,526  

Cabot Microelectronics 2

  46,800       4,462,380  

Cirrus Logic 1,2,3

  125,000       4,147,500  

Cohu 2

  63,750       1,024,462  

Diodes 1,2,3

  270,850       8,737,621  

Entegris 2,3

  258,300       7,205,279  

Kulicke & Soffa Industries 2

  66,200       1,341,874  

MKS Instruments 2

  188,439       12,175,044  

Nova Measuring Instruments 1,2

  39,500       899,810  

Photronics 1

  183,700       1,778,216  

Rudolph Technologies 1,2,3

  39,600       810,612  

Silicon Motion Technology ADR 2

  25,000       862,500  

Teradyne 2,3

  130,000       4,079,400  

Veeco Instruments 1

  17,500       129,675  

Versum Materials 2

  197,100       5,463,612  

Xperi 2

  60,000       1,103,400                             68,467,794                 SOFTWARE - 2.2%              

†Alarm.com Holdings 1,2

  10,000       518,700  

†Altair Engineering Cl. A 1

  5,000       137,900  

ANSYS 1

  54,100       7,733,054  

†Descartes Systems Group (The) 1,2

  58,300       1,542,618  

j2 Global 2,3

  58,520       4,060,118  

Manhattan Associates 1,2,3

  125,000       5,296,250  

Monotype Imaging Holdings 2

  117,700       1,826,704  

RealNetworks 1

  109,950       253,984  

Solium Capital 1

  187,400       1,618,405  

Support.com 1

  216,766       533,244  

TiVo

  152,900       1,438,789  

†Workiva Cl. A 1,2,3

  100,000       3,589,000                             28,548,766                 TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS - 0.2%               Cray 1,2,3   126,000       2,720,340       Total (Cost $187,767,783)           232,344,912                       MATERIALS – 11.3%               CHEMICALS - 5.6%              

Chase Corporation 2

  116,059       11,611,703  

Hawkins 2,3

  86,178       3,528,989  

†Ingevity Corporation 1,2

  23,900       2,000,191  

Innospec 2,3

  84,083       5,192,966  

Minerals Technologies 2

  350,132       17,975,777  

NewMarket Corporation

  8,600       3,543,974  

Platform Specialty Products 1,2

  530,000       5,474,900  

Quaker Chemical

  132,669       23,576,608                             72,905,108                 CONSTRUCTION MATERIALS - 0.3%              

†Imerys

  90,000       4,328,871                 CONTAINERS & PACKAGING - 0.3%              

Mayr-Melnhof Karton

  34,000       4,285,104                 METALS & MINING - 4.4%              

Agnico Eagle Mines 2

  15,000       606,000  

Alamos Gold Cl. A

  1,703,300       6,125,991  

Ferroglobe

  50,000       79,500  

Ferroglobe (Warranty Insurance Trust) 1,6

  49,300       0  

Franco-Nevada Corporation 2,3

  107,300       7,529,241  

Gold Fields ADR

  370,000       1,302,400  

Haynes International 2

  113,900       3,006,960  

Hecla Mining

  321,300       758,268  

IAMGOLD Corporation 1

  600,000       2,208,000  

Lundin Mining

  640,000       2,644,008  

MAG Silver 1

  198,900       1,451,970  

Major Drilling Group International 1

  1,382,357       4,657,810  

Pretium Resources 1

  101,000       855,970  

Reliance Steel & Aluminum 2

  193,720       13,787,053  

Royal Gold 2

  16,600       1,421,790  

Synalloy Corporation 2,3

  178,800       2,966,292  

Tahoe Resources 1

  646,000       2,357,900  

VanEck Vectors Junior Gold Miners ETF

  8,000       241,760  

Worthington Industries 2

  148,000       5,156,320                             57,157,233                 PAPER & FOREST PRODUCTS - 0.7%              

Neenah 2

  16,700       983,964  

Stella-Jones

  267,138       7,750,759               8,734,723       Total (Cost $137,291,568)           147,411,039                       REAL ESTATE 3.9%               EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) - 0.0%              

New York REIT 1,6

  15,000       208,650                 REAL ESTATE MANAGEMENT & DEVELOPMENT - 3.9%              

Altus Group

  24,200       419,582  

FirstService Corporation

  184,600       12,641,408  

FRP Holdings 1,2,3

  188,558       8,675,554  

Kennedy-Wilson Holdings 2

  515,500       9,366,635  

Marcus & Millichap 1,2,3

  232,513       7,982,171  

RMR Group Cl. A 2

  27,200       1,443,776  

St. Joe Company (The) 1,2,3

  197,000       2,594,490  

Tejon Ranch 1,2,3

  478,479       7,933,182                             51,056,798       Total (Cost $41,435,097)           51,265,448                       UTILITIES 0.3%               GAS UTILITIES - 0.3%              

UGI Corporation 2

  69,500       3,707,825       Total (Cost $3,013,160)           3,707,825                       TOTAL COMMON STOCKS                   (Cost $1,237,145,343)           1,362,096,326                       WARRANTS – 0.1%                               CONSUMER DISCRETIONARY 0.0%               HOUSEHOLD DURABLES - 0.0%              

† Purple Innovation (Warrants) 1,4

  750,000       105,000       Total (Cost $461,843)           105,000                       INDUSTRIALS 0.1%               CONSTRUCTION & ENGINEERING - 0.1%              

† Infrastructure and Energy Alternatives

             

(Warrants) 1

  625,000       568,750       Total (Cost $470,283)           568,750      
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2018 Annual Report to Stockholders | 47
       
Royce Value Trust   December 31, 2018
  Schedule of Investments (continued)                                   SHARES     VALUE                     INFORMATION TECHNOLOGY 0.0%               ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS - 0.0%              

† eMagin Corporation (Warrants) 1,6

  50,000     $ 0       Total (Cost $0)           0                       TOTAL WARRANTS                   (Cost $932,126)           673,750                       TOTAL INVESTMENTS 104.5%                   (Cost $1,238,077,469)           1,362,770,076                       LIABILITIES LESS CASH AND OTHER ASSETS (4.5)%           (58,663,191 )                                   NET ASSETS 100.0%         $ 1,304,106,885      
  ADR – American Depository Receipt     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 December 31, 2018. Total market value of pledged securities at December 31, 2018, was $139,988,955.
3
At December 31, 2018, a portion of these securities were rehypothecated in connection with the Fund’s revolving credit agreement in the aggregate amount of $40,175,871.
4
These securities are defined as Level 2 securities due to fair value being based on quoted prices for similar securities. See Notes to Financial Statements.
5
At December 31, 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.
6
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 December 31, 2018, market value.
     
TAX INFORMATION:The cost of total investments for Federal income tax purposes was $1,238,208,056. At December 31, 2018, net unrealized appreciation for all securities was $124,562,020 consisting of aggregate gross unrealized appreciation of $323,293,119 and aggregate gross unrealized depreciation of $198,731,099. The primary causes of the difference between book and tax basis cost are the timing of the recognition of losses on securities sold, investments in publicly traded partnerships and Trusts, investments in Real Estate Investment Trusts and mark-to-market of Passive Foreign Investment Companies.

48 | 2018 Annual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
       
Royce Value Trust   December 31, 2018
  Statement of Assets and Liabilities
ASSETS:           Investments at value            

Non-Affiliated Companies

    $ 1,357,938,358    

Affiliated Companies

      4,831,718     Receivable for dividends and interest       1,312,973     Prepaid expenses and other assets       683,846     Total Assets       1,364,766,895     LIABILITIES:           Revolving credit agreement       45,000,000     Payable to custodian for cash and foreign currency overdrawn       14,492,164     Payable for investments purchased       325,429     Payable for investment advisory fee       541,254     Payable for directors’ fees       53,324     Payable for interest expense       18,735     Accrued expenses       229,104     Total Liabilities       60,660,010     Net Assets     $ 1,304,106,885     ANALYSIS OF NET ASSETS:           Paid-in capital - $0.001 par value per share; 95,010,024 shares outstanding (150,000,000 shares authorized)     $ 1,161,772,428     Total distributable earnings (loss)       142,334,457     Net Assets (net asset value per share - $13.73)     $ 1,304,106,885     Investments at identified cost     $ 1,238,077,469    
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2018 Annual Report to Stockholders | 49
       

Royce Value Trust

  Statement of Changes in Net Assets
      YEAR ENDED 12/31/18     YEAR ENDED 12/31/17                         INVESTMENT OPERATIONS:                   Net investment income (loss)     $ 16,192,591     $ 10,969,682     Net realized gain (loss) on investments and foreign currency       111,658,737       81,750,067     Net change in unrealized appreciation (depreciation) on investments and foreign currency       (347,149,860 )     146,329,916     Net increase (decrease) in net assets from investment operations       (219,298,532 )     239,049,665     DISTRIBUTIONS:                   Total distributable earnings1       (112,695,474 )           Net investment income               (10,679,021 )   Net realized gain on investments and foreign currency               (85,441,777 )   Total distributions       (112,695,474 )     (96,120,798 )   CAPITAL STOCK TRANSACTIONS:                   Net proceeds from rights offering       108,466,176             Reinvestment of distributions       47,185,262       41,508,874     Total capital stock transactions       155,651,438       41,508,874     Net Increase (Decrease) In Net Assets       (176,342,568 )     184,437,741     NET ASSETS:                     Beginning of year       1,480,449,453       1,296,011,712     End of year (including undistributed net investment income (loss) of $(1,725,122) at 12/31/172)     $ 1,304,106,885     $ 1,480,449,453    
1 Distributions from net investment income and from realized gains are no longer required to be separately disclosed. See Notes to Financial Statements.
2 Parenthetical disclosure of undistributed net investment income is no longer required. See Notes to Financial Statements.

50 | 2018 Annual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
       
Royce Value Trust   Year Ended December 31, 2018
  Statement of Operations
INVESTMENT INCOME:         INCOME:         Dividends   $ 25,763,236     Foreign withholding tax     (503,383 )   Interest     256,906     Rehypothecation income     232,957     Total income     25,749,716     EXPENSES:           Investment advisory fees     6,356,364     Interest expense     1,678,886     Administrative and office facilities     439,851     Stockholder reports     423,025     Custody and transfer agent fees     215,508     Directors’ fees     198,038     Professional fees     114,083     Other expenses     135,996     Total expenses     9,561,751     Compensating balance credits     (4,626 )   Net expenses     9,557,125     Net investment income (loss)     16,192,591     REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY:                   NET REALIZED GAIN (LOSS):           Investments     111,651,979     Foreign currency transactions     6,758     NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION):           Investments in Non-Affiliated Companies     (344,862,243 )   Investments in Affiliated Companies     (2,278,941 )   Other assets and liabilities denominated in foreign currency     (8,676 )   Net realized and unrealized gain (loss) on investments and foreign currency     (235,491,123 )   NET INCREASE (DECREASE) IN NET ASSETS FROM INVESTMENT OPERATIONS   $ (219,298,532 )  
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2018 Annual Report to Stockholders | 51
       
Royce Value Trust   Year Ended December 31, 2018
  Statement of Cash Flows
CASH FLOWS FROM OPERATING ACTIVITIES:         Net increase (decrease) in net assets from investment operations   $ (219,298,532 )   Adjustments to reconcile net increase (decrease) in net assets from investment operations to net cash used for operating activities:          

Purchases of long-term investments

    (565,452,939 )  

Proceeds from sales and maturities of long-term investments

    468,285,661    

Net purchases, sales and maturities of short-term investments

    48,667,000    

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

    (230,537 )  

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

    18,118    

Net change in unrealized appreciation (depreciation) on investments

    347,141,184    

Net realized gain (loss) on investments

    (111,651,979 )   Net cash used for operating activities     (32,522,024 )   CASH FLOWS FROM FINANCING ACTIVITIES:         Decrease in revolving credit agreement     (25,000,000 )   Distributions     (112,695,474 )   Increase in payable to custodian for cash and foreign currency overdrawn     14,492,164     Net proceeds from rights offering     108,466,176     Reinvestment of distributions     47,185,262     Net cash provided by financing activities     32,448,128     INCREASE (DECREASE) IN CASH:     (73,896 )   Cash and foreign currency at beginning of year     73,896     Cash and foreign currency at end of year   $    

Supplemental disclosure of cash flow information:
For the year ended December 31, 2018, the Fund paid $1,680,721 in interest expense.

52 | 2018 Annual 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.
    YEARS ENDED           12/31/18     12/31/17     12/31/16     12/31/15     12/31/14     Net Asset Value, Beginning of Period   $ 17.50     $ 15.85     $ 13.56     $ 16.24     $ 18.17     INVESTMENT OPERATIONS:                                         Net investment income (loss)     0.18       0.13       0.12       0.12       0.12     Net realized and unrealized gain (loss) on investments and foreign currency     (2.46 )     2.74       3.27       (1.48 )     (0.13 )   Net increase (decrease) in net assets from investment operations     (2.28 )     2.87       3.39       (1.36 )     (0.01 )   DISTRIBUTIONS:                                         Net investment income     (0.19 )     (0.13 )     (0.13 )     (0.16 )     (0.14 )   Net realized gain on investments and foreign currency     (1.07 )     (1.03 )     (0.89 )     (1.08 )     (1.68 )   Total distributions     (1.26 )     (1.16 )     (1.02 )     (1.24 )     (1.82 )   CAPITAL STOCK TRANSACTIONS:                                           Effect of reinvestment of distributions by Common Stockholders     (0.06 )     (0.06 )     (0.08 )     (0.08 )     (0.10 )   Effect of rights offering     (0.17 )                                   Total capital stock transactions     (0.23 )     (0.06 )     (0.08 )     (0.08 )     (0.10 )   Net Asset Value, End of Period   $ 13.73     $ 17.50     $ 15.85     $ 13.56     $ 16.24     Market Value, End of Period   $ 11.80     $ 16.17     $ 13.39     $ 11.77     $ 14.33     TOTAL RETURN: 1                                         Net Asset Value     (14.45 )%     19.31 %     26.87 %     (8.09 )%     0.78 %   Market Value     (20.43 )%     30.49 %     23.48 %     (9.59 )%     0.93 %   RATIOS BASED ON AVERAGE NET ASSETS:                                         Investment advisory fee expense2     0.42 %     0.43 %     0.51 %     0.50 %     0.46 %   Other operating expenses     0.21 %     0.22 %     0.22 %     0.18 %     0.15 %   Total expenses (net)     0.63 %     0.65 %     0.73 %     0.68 %     0.61 %   Expenses excluding interest expense     0.52 %     0.54 %     0.62 %     0.61 %     0.55 %   Expenses prior to balance credits     0.63 %     0.65 %     0.73 %     0.68 %     0.61 %   Net investment income (loss)     1.06 %     0.80 %     0.85 %     0.78 %     0.72 %   SUPPLEMENTAL DATA:                                         Net Assets, End of Period (in thousands)   $ 1,304,107     $ 1,480,449     $ 1,296,012     $ 1,072,035     $ 1,231,955     Portfolio Turnover Rate     28 %     19 %     28 %     35 %     40 %   REVOLVING CREDIT AGREEMENT:                                         Asset coverage     2998 %     2215 %     1951 %     1631 %     1860 %   Asset coverage per $1,000   $ 29,980     $ 22,149     $ 19,514     $ 16,315     $ 18,599    
1
The Market Value Total Return is calculated assuming a purchase of Common Stock on the opening of the first business day and a sale on the closing of the last business day of each period. Dividends and distributions are assumed for the purposes of this calculation to be reinvested at prices obtained under the Fund’s Distribution Reinvestment and Cash Purchase Plan. Net Asset Value Total Return is calculated on the same basis, except that the Fund’s net asset value is used on the purchase and sale dates instead of market value.
2
The investment advisory fee is calculated based on average net assets over a rolling 60-month basis, while the above ratios of investment advisory fee expenses are based on the average net assets over a 12-month basis.

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2018 Annual Report to Stockholders | 53
       

Royce Value Trust

Notes to Financial Statements

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

VALUATION OF INVESTMENTS:
Securities are valued as of the close of trading on the New York Stock Exchange (NYSE) (generally 4:00 p.m. Eastern time) on the valuation date. Securities that trade on an exchange, and securities traded on Nasdaq’s Electronic Bulletin Board, are valued at their last reported sales price or Nasdaq official closing price taken from the primary market in which each security trades or, if no sale is reported for such day, at their highest bid price. Other over-the-counter securities for which market quotations are readily available are valued at their highest bid price, except in the case of some bonds and other fixed income securities which may be valued by reference to other securities with comparable ratings, interest rates and maturities, using established independent pricing services. The Fund values its non-U.S. dollar denominated securities in U.S. dollars daily at the prevailing foreign currency exchange rates as quoted by a major bank. Securities for which market quotations are not readily available are valued at their fair value in accordance with the provisions of the 1940 Act, under procedures approved by the Fund’s Board of Directors, and are reported as Level 3 securities. As a general principle, the fair value of a security is the amount which the Fund might reasonably expect to receive for the security upon its current sale. However, in light of the judgment involved in fair valuations, there can be no assurance that a fair value assigned to a particular security will be the amount which the Fund might be able to receive upon its current sale. In addition, if, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and may make the closing price unreliable, the Fund may fair value the security. The Fund uses an independent pricing service to provide fair value estimates for relevant non-U.S. equity securities on days when the U.S. market volatility exceeds a certain threshold. This pricing service uses proprietary correlations it has developed between the movement of prices of non-U.S. equity securities and indices of U.S.-traded securities, futures contracts and other indications to estimate the fair value of relevant non-U.S. securities. When fair value pricing is employed, the prices of securities used by the Fund may differ from quoted or published prices for the same security. Investments in money market funds are valued at net asset value per share.
Various inputs are used in determining the value of the Fund’s investments, as noted above. These inputs are summarized in the three broad levels below:
  Level 1
quoted prices in active markets for identical securities.
  Level 2
other significant observable inputs (including quoted prices for similar securities, foreign securities that may be fair valued and repurchase agreements). The table below includes all Level 2 securities. Level 2 securities with values based on quoted prices for similar securities are noted in the Schedule of Investments.
  Level 3
significant unobservable inputs (including last trade price before trading was suspended, or at a discount thereto for lack of marketability or otherwise, market price information regarding other securities, information received from the company and/or published documents, including SEC filings and financial statements, or other publicly available information).
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used to value the Fund’s investments as of December 31, 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       $1,346,575,825       $14,420,251       $1,100,250       $1,362,096,326   Warrants       568,750       105,000       0       673,750  

Certain securities have transferred in and out of Level 1 and Level 2 measurements during the reporting period. This is generally due to whether fair value factors have been applied. The Fund recognizes transfers between levels as of the end of the reporting period. For the year ended December 31, 2018, securities valued at $2,165,665 were transferred from Level 1 to Level 2 and securities valued at $57,084,055 were transferred from Level 2 to Level 1 within the fair value hierarchy.

54 | 2018 Annual Report to Stockholders


       

Royce Value Trust

Notes to Financial Statements (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 12/31/18   Common Stocks       $891,600       $544,065       $ –       $(335,415)       $1,100,250   Warrants             0                   0   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     12/31/18       VALUATION TECHNIQUE(S)       UNOBSERVABLE INPUT(S)       RANGE AVERAGE       AN INCREASE IN INPUT1               Discounted Present Value                         Waterloo Investment Holdings   $891,600       Balance Sheet Analysis       Liquidity Discount       30%-40%       Decrease               Guidance from Options Clearing Authorities                         New York REIT   208,650       Balance Sheet Analysis       Liquidity Discount       20%-30%       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.

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, other than investments in securities at the end of the reporting period, as a result of changes in foreign currency exchange rates.
The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

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

2018 Annual Report to Stockholders | 55


       

Royce Value Trust

Notes to Financial Statements (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 3,301,756 and 2,795,800 shares of Common Stock as reinvestment of distributions for the years ended December 31, 2018 and December 31, 2017, respectively.
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 expenses of $691,764. The net asset value per share of the Fund’s Common Stock was reduced by approximately $0.17 per share as a result of the issuance.

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 179-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 December 31, 2018, the Fund has outstanding borrowings of $45,000,000. During the year ended December 31, 2018, the Fund borrowed an average daily balance of $52,095,890 at a weighted average borrowing cost of 3.26%. The maximum amount outstanding during the year ended December 31, 2018 was $70,000,000. As of December 31, 2018, the aggregate value of rehypothecated securities was $40,175,871. During the year ended December 31, 2018, the Fund earned $232,957 in fees from rehypothecated securities.

56 | 2018 Annual Report to Stockholders


       

Royce Value Trust

Notes to Financial Statements (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 twelve rolling 60-month periods in 2018, the Fund’s investment performance ranged from 18% to 34% below the investment performance of the S&P 600. Accordingly, the net investment advisory fee consisted of a Basic Fee of $12,712,728 and a net downward adjustment of $6,356,364 for the performance of the Fund relative to that of the S&P 600. For the year ended December 31, 2018, the Fund expensed Royce investment advisory fees totaling $6,356,364.

Purchases and Sales of Investment Securities:
For the year ended December 31, 2018, the costs of purchases and proceeds from sales of investment securities, other than short-term securities, amounted to $561,104,999 and $423,040,162, 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 year ended December 31, 2018, were as follows:

COSTS OF PURCHASES       PROCEEDS FROM SALES       REALIZED GAIN (LOSS)     $126,247,517       $2,097,170       $(1,320,858)    
Tax Information:
     Distributions during the years ended December 31, 2018 and 2017, were characterized as follows for tax purposes:

ORDINARY INCOME       LONG-TERM CAPITAL GAINS   2018       2017       2018       2017   $30,738,849       $19,301,057       $81,956,625       $76,819,741  

The tax basis components of distributable earnings at December 31, 2018, were as follows:

                        QUALIFIED LATE YEAR                 UNDISTRIBUTED LONG-TERM       NET UNREALIZED       ORDINARY AND       TOTAL UNDISTRIBUTED       CAPITAL GAINS OR       APPRECIATION       POST-OCTOBER LOSS       DISTRIBUTABLE ORDINARY INCOME       (CAPITAL LOSS CARRYFORWARD)       (DEPRECIATION)1       DEFERRALS2       EARNINGS   $ –       $19,153,127       $124,553,874       $(1,372,544)       $142,334,457   1 Includes timing differences on foreign currency, recognition of losses on securities sold, investments in publicly traded partnerships and Trusts and mark-to-market of Passive Foreign Investment Companies. 2 Under the current tax law, capital losses and qualified late year ordinary losses incurred after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. This column also includes passive activity losses.

2018 Annual Report to Stockholders | 57


       

Royce Value Trust

Notes to Financial Statements (continued)

Tax Information (continued):
For financial reporting purposes, capital accounts and distributions to stockholders are adjusted to reflect the tax character of permanent book/tax differences. For the year ended December 31, 2018, the Fund had no reclassifications.
Management has analyzed the Fund’s tax positions taken on federal income tax returns for all open tax years (2015-2018) and has concluded that as of December 31, 2018, no provision for income tax is required in the Fund’s financial statements.

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 December 31, 2018:

                        CHANGE IN NET                                     UNREALIZED                 SHARES   MARKET VALUE   COSTS OF   PROCEEDS   REALIZED   APPRECIATION   DIVIDEND   SHARES   MARKET VALUE AFFILIATED COMPANY   12/31/17   12/31/17   PURCHASES   FROM SALES   GAIN (LOSS)   (DEPRECIATION)   INCOME   12/31/18   12/31/18   HG Holdings   912,235   $  793,645    $–   $–   $–   $  (401,384)      $–   912,235   $  392,261     Houston Wire & Cable   877,363   6,317,014         (1,877,557)     877,363   4,439,457           $7,110,659           $   $(2,278,941)     $–       $4,831,718  
Recent Accounting Pronouncement:
In August 2018, the Securities and Exchange Commission released its Final Rule on Disclosure Update and Simplification (the “Final Rule”) which is intended to simplify an issuer’s disclosure compliance efforts by removing redundant or outdated disclosure requirements without significantly altering the mix of information provided to investors. Effective with the current reporting period, the Fund adopted the Final Rule with the most notable impacts being that the Fund is no longer required to present the components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributions to stockholders and the amount of undistributed net investment income on the Statement of Changes in Net Assets.

Subsequent Events:
Subsequent events have been evaluated through the date the financial statements were issued.

58 | 2018 Annual Report to Stockholders


       

Report of Independent Registered Public Accounting Firm

To the Board of Directors and the Stockholders of Royce Value Trust, Inc.:

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Royce Value Trust, Inc. (the "Fund") as of December 31, 2018, the related statements of operations and cash flows for the year ended December 31, 2018, the statement of changes in net assets for each of the two years in the period ended December 31, 2018, including the related notes, and the financial highlights for each of the four years in the period ended December 31, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2018, the results of its operations and its cash flows for the year then ended, the changes in its net assets for each of the two years in the period ended December 31, 2018 and the financial highlights for each of the four years in the period ended December 31, 2018 in conformity with accounting principles generally accepted in the United States of America.

The financial statements of the Fund as of and for the year ended December 31, 2014 and the financial highlights for each of the periods ended on or prior to December 31, 2014 (not presented herein, other than the financial highlights) were audited by other auditors whose report dated February 23, 2015 expressed an unqualified opinion on those financial statements and financial highlights.

Basis for Opinion

These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2018 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/PricewaterhouseCoopers LLP
New York, New York
February 21, 2019

We have served as the auditor of one or more investment companies in the Royce investment company group since at least 1967. We have not been able to determine the specific year we began serving as auditor.

2018 Annual Report to Stockholders | 59


       

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   12/12/18   Distribution $0.04           8.500   5               12/31/18       $ 8,975         1,067   $ 11,118   $ 9,475                                     Royce Micro-Cap Trust                             12/14/93   Initial Purchase   $ 7,500   $ 7.500   1,000   $ 7,250   $ 7,500   10/28/94   Rights Offering     1,400     7.000   200               12/19/94   Distribution $0.05           6.750   9     9,163     8,462   12/7/95   Distribution $0.36           7.500   58     11,264     10,136   12/6/96   Distribution $0.80           7.625   133     13,132     11,550   12/5/97   Distribution $1.00           10.000   140     16,694     15,593   12/7/98   Distribution $0.29           8.625   52     16,016     14,129   12/6/99   Distribution $0.27           8.781   49     18,051     14,769   12/6/00   Distribution $1.72           8.469   333     20,016     17,026   12/6/01   Distribution $0.57           9.880   114     24,701     21,924   2002   Annual distribution total $0.80           9.518   180     21,297     19,142   2003   Annual distribution total $0.92           10.004   217     33,125     31,311   2004   Annual distribution total $1.33           13.350   257     39,320     41,788   2005   Annual distribution total $1.85           13.848   383     41,969     45,500   2006   Annual distribution total $1.55           14.246   354     51,385     57,647   2007   Annual distribution total $1.35           13.584   357     51,709     45,802   2008   Annual distribution total $1.193           8.237   578     28,205     24,807   3/11/09   Distribution $0.223           4.260   228     41,314     34,212   12/2/10   Distribution $0.08           9.400   40     53,094     45,884   2011   Annual distribution total $0.533           8.773   289     49,014     43,596   2012   Annual distribution total $0.51           9.084   285     57,501     49,669   2013   Annual distribution total $1.38           11.864   630     83,110     74,222   2014   Annual distribution total $2.90           10.513   1,704     86,071     76,507   2015   Annual distribution total $1.26           7.974   1,256     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   Annual distribution total $0.75           8.993   893               12/31/18       $ 8,900         11,301   $ 96,398   $ 83,853  
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.

60 | 2018 Annual 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 $1.723           12.307   1,294     95,415     85,435   3/11/09   Distribution $0.323           6.071   537     137,966     115,669   12/2/10   Distribution $0.03           13.850   23     179,730     156,203   2011   Annual distribution total $0.783           13.043   656     161,638     139,866   2012   Annual distribution total $0.80           13.063   714     186,540     162,556   2013   Annual distribution total $2.194           16.647   1,658     250,219     220,474   2014   Annual distribution total $1.82           14.840   1,757     252,175     222,516   2015   Annual distribution total $1.24           12.725   1,565     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   Distribution through 6/30/18 $0.59           15.962   748               2018   Rights Offering     31,289     15.330   2,041               2018   Distribution after 6/30/18 $0.67           12.706   1,168               12/31/18       $ 53,211         24,005   $ 329,589   $ 283,259  
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 Annual Report to Stockholders | 61


       

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 December 31, 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 December 31, 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.).

62 | 2018 Annual Report to Stockholders


       

Directors and Officers

All Directors and Officers may be reached c/o The Royce Funds, 745 Fifth Avenue, New York, NY 10151

Charles M. Royce, Director1
Age: 79 | Number of Funds Overseen: 21 | 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 Trust’s 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: 21 | 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: 70 | Number of Funds Overseen: 21 | Tenure: Since 2009
Non-Royce Directorships: Trustee of Voya 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: 57 | Number of Funds Overseen: 21 | 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: 79 | Number of Funds Overseen: 21 | 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: 40 | 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: 79 | Number of Funds Overseen: 21 | 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: 73 | Number of Funds Overseen: 40 | 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: 21 | 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: 51 | 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: 56 | 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: 59 | 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 Annual Report to Stockholders | 63


       

Notes to Performance and Other Important Information

The thoughts expressed in this Review and Report concerning recent market movements and future prospects for small company stocks are solely the opinion of Royce at December 31, 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 December 31, 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, 2019. 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.

64 | 2018 Annual Report to Stockholders


       

Board Approval of Investment Advisory Agreement

    At meetings held on September 25-26, 2018, the Board of Directors (the “Board”) of Royce Global Value Trust, Inc. (“RGT”), including all of the non-interested directors, approved an amended and restated investment advisory agreement (the “Amended and Restated Agreement”) between Royce & Associates, LP (“R&A”) and RGT. The Amended and Restated Agreement is identical in all respects to the investment advisory agreement (the “Original Agreement”) between R&A and RGT that was approved by the Board at meetings held on June 4-5, 2018 except that the Amended and Restated Agreement contains a lower investment advisory fee rate than the Original Agreement. A description of the material factors and the conclusions with respect thereto that formed the basis for the Board’s approval of the Original Agreement is included in RGT’s Semiannual Report to the Shareholders for the six-month period ended June 30, 2018.

2018 Annual Report to Stockholders | 65


       

Results of Stockholders Meeting

Royce Value Trust, Inc.
At the 2018 Annual Meeting of Stockholders held on September 24, 2018, the Fund’s stockholders elected three Directors, consisting of:

    VOTES FOR   VOTES WITHHELD   Charles M. Royce   82,337,951   2,012,841   G. Peter O’Brien   81,691,931   2,658,860   David L. Meister   81,382,762   2,968,030             Royce Micro-Cap Trust, Inc.         At the 2018 Annual Meeting of Stockholders held on September 24, 2018, the Fund’s stockholders elected three Directors, consisting of:               VOTES FOR   VOTES WITHHELD   Charles M. Royce   35,311,634   352,959   G. Peter O’Brien   35,169,450   495,143   David L. Meister   35,067,865   596,729             Royce Global Value Trust, Inc.         At the 2018 Annual Meeting of Stockholders held on September 24, 2018, the Fund’s stockholders elected three Directors, consisting of:               VOTES FOR   VOTES WITHHELD   Charles M. Royce   8,122,013   1,061,328   G. Peter O’Brien   8,107,392   1,075,949   David L. Meister   8,062,305   1,121,036  

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                                        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
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Item 2.       Code(s) of Ethics. As of the end of the period covered by this report, the Registrant had adopted a code of ethics, as defined in Item 2 of Form N-CSR, applicable to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. A copy of this code of ethics is filed as an exhibit to this Form N-CSR. No substantive amendments were approved or waivers were granted to this code of ethics during the period covered by this report.

Item 3.       Audit Committee Financial Expert.

(a)(1)     The Board of Directors of the Registrant has determined that it has an audit committee financial expert.         (a)(2)    
Arthur S. Mehlman and Patricia W. Chadwick were designated by the Board of Directors as the Registrant’s Audit Committee Financial Experts, effective April 15, 2004 and April 8, 2010, respectively. Mr. Mehlman and Ms. Chadwick are “independent” as defined under Item 3 of Form N-CSR.

Item 4.   Principal Accountant Fees and Services.
      (a)   Audit Fees:     Year ended December 31, 2018 - $45,710     Year ended December 31, 2017 - $44,814       (b)   Audit-Related Fees:     Year ended December 31, 2018 - $0     Year ended December 31, 2017 - $0       (c)   Tax Fees:     Year ended December 31, 2018 - $9,738 - Preparation of tax returns     Year ended December 31, 2017 - $9,550 - Preparation of tax returns       (d)   All Other Fees:     Year ended December 31, 2018 - $0     Year ended December 31, 2017 - $0

(e)(1)        Annual Pre-Approval: On an annual basis, the Registrant’s independent auditor submits to the Audit Committee a schedule of proposed audit, audit-related, tax and other non-audit services to be rendered to the Registrant and/or investment adviser(s) for the following year that require pre-approval by the Audit Committee. This schedule provides a description of each type of service that is expected to require pre-approval and the maximum fees that can be paid for each such service without further Audit Committee approval. The Audit Committee then reviews and determines whether to approve the types of scheduled services and the projected fees for them. Any subsequent revision to already pre-approved services or fees (including fee increases) are presented for consideration at the next regularly scheduled Audit Committee meeting, as needed.

     If subsequent to the annual pre-approval of services and fees by the Audit Committee, the Registrant or one of its affiliates determines that it would like to engage the Registrant’s independent auditor to perform a service not already pre-approved, the request is to be submitted to the Registrant’s Chief Financial Officer, and if he or she determines that the service fits within the independence guidelines (e.g., it is not a prohibited service), he or she will then arrange for a discussion of the proposed service and fee to be included on the agenda for the next regularly scheduled Audit Committee meeting so that pre-approval can be considered.

     Interim Pre-Approval: If, in the judgment of the Registrant’s Chief Financial Officer, a proposed engagement needs to commence before the next regularly scheduled Audit Committee meeting, he or she shall submit a written summary of the proposed engagement to all members of the Audit Committee, outlining the services, the estimated maximum cost, the category of the services (e.g., audit, audit-related, tax or other) and the rationale for engaging the Registrant’s independent auditor to perform the services. To the extent the proposed engagement involves audit, audit-related or tax services, any individual member of the Audit Committee who is an independent Board member is authorized to pre-approve the engagement. To the extent the proposed engagement involves non-audit services other than audit-related or tax, the Chairman of the Audit Committee is authorized to pre-approve the engagement. The Registrant’s Chief Financial Officer will arrange for this interim review and


coordinate with the appropriate member(s) of the Committee. The independent auditor may not commence the engagement under consideration until the Registrant’s Chief Financial Officer has informed the auditor in writing that pre-approval has been obtained from the Audit Committee or an individual member who is an independent Board member. The member of the Audit Committee who pre-approves any engagements in between regularly scheduled Audit Committee meetings is to report, for informational purposes only, any pre-approval decisions to the Audit Committee at its next regularly scheduled meeting.

(e)(2)   Not Applicable       (f)   Not Applicable       (g)   Year ended December 31, 2018 - $9,738     Year ended December 31, 2017 - $9,550       (h)   No such services were rendered during 2018 or 2017.

Item 5. Audit Committee of Listed Registrants. The Registrant has a separately designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934. Patricia W. Chadwick, Christopher C. Grisanti, Stephen L. Isaacs, Arthur S. Mehlman, David L. Meister, G. Peter O’Brien, and Michael K. Shields are members of the Registrant’s audit committee.

Item 6. Investments.
(a) See Item 1.

(b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Royce & Associates, LP (“Royce”) has adopted written proxy voting policies and procedures (the “Proxy Voting Procedures”) for itself and client accounts for which Royce is responsible for voting proxies. Royce is generally granted proxy voting authority at the inception of its management of each client account. Proxy voting authority is generally either (i) specifically authorized in the applicable investment management agreement or other instrument; or (ii) where not specifically authorized, is granted to Royce where general investment discretion is given to Royce in the applicable investment management agreement. In voting proxies, Royce is guided by general fiduciary principles. Royce’s goal is to act prudently, solely in the best interest of the beneficial owners of the accounts it manages. Royce attempts to consider all factors of its vote that could affect the value of the investment and will vote proxies in the manner it believes will be consistent with efforts to enhance and/or protect stockholder value.

Royce’s personnel are responsible for monitoring receipt of all proxies and seeking to ensure that proxies are received for all securities for which Royce has proxy voting authority. Royce is not responsible for voting proxies it does not receive. Royce divides proxies into “regularly recurring” and “non-regularly recurring” matters. Examples of regularly recurring matters include non-contested elections of directors and non-contested approvals of independent auditors. Royce’s personnel are responsible for developing and maintaining a list of matters Royce treats as “regularly recurring” and for ensuring that instructions from a Royce Co-Chief Investment Officer are followed when voting those matters on behalf of Royce clients. Non-regularly recurring matters are all other proxy matters and are brought to the attention of the relevant portfolio manager(s) for the applicable account(s). After giving consideration to advisories provided by an independent third party research firm with respect to such non-regularly recurring matters, the portfolio manager(s) directs that such matters be voted in a way that he or she believes should better protect or enhance the value of the investment.

Certain Royce portfolio managers may provide instructions that they do not want regularly recurring matters to be voted in accordance with the standing instructions for their accounts and individual voting instructions on all matters, both regularly recurring and non-regularly recurring, will be obtained from such portfolio managers. Under certain circumstances, Royce may also vote against a proposal from the issuer’s board of directors or management. Royce’s portfolio managers decide these issues on a case-by-case basis. A portfolio manager of Royce


may, on occasion, decide to abstain from voting a proxy or a specific proxy item when such person concludes that the potential benefit of voting is outweighed by the cost or when it is not in the client’s best interest to vote.

There may be circumstances where Royce may not be able to vote proxies in a timely manner, including, but not limited to, (i) when certain securities are out on loan at the time of a record date; (ii) when administrative or operational constraints impede Royce’s ability to cast a timely vote, such as late receipt of proxy voting information; and/or (iii) when systems, administrative or processing errors occur (including errors by Royce or third party vendors).

To further Royce’s goal to vote proxies in the best interests of its client, Royce follows specific procedures outlined in the Proxy Voting Procedures to identify, assess and address material conflicts that may arise between Royce’s interests and those of its clients before voting proxies on behalf of such clients. In the event such a material conflict of interest is identified, the proxy will be voted by Royce in accordance with the recommendation given by an independent third party research firm.

You may obtain a copy of the Proxy Voting Procedures at www.roycefunds.com or by calling 212-508-4500. Additionally, you can obtain information on how your securities were voted by calling 212-508-4500.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.
(a)(1) Portfolio Managers of Closed-End Management Investment Companies (information as of December 31, 2018)

Name Title Length of Service Principal Occupation(s) During Past 5 Years Charles M. Royce Portfolio Manager and
Member of the Board
of Directors of the
Registrant
Since 1986 Chairman of the Board of Managers of Royce & Associates, LP (“Royce”), Member of the boards of directors/trustees of the Registrant, Royce Micro-Cap Trust, Inc. (“RMT”), Royce Global Value Trust, Inc. ,The Royce Fund , and Royce Capital Fund (collectively, “The Royce Funds”). Chris E. Flynn Assistant Portfolio Manager* Since April 1, 2007 Assistant Portfolio Manager of the Registrant (since April 1, 2007); and Principal, Portfolio Manager and Senior Analyst at Royce (since 1993). Lauren A. Romeo Assistant Portfolio Manager* Since May 1, 2009 Assistant Portfolio of the Registrant (since May 1, 2009); and Portfolio Manager and Analyst at Royce (since 2004). Steven G. McBoyle Assistant Portfolio Manager* Since
September 1, 2018
Assistant Portfolio Manager of the Registrant (since September 1, 2018); and Portfolio Manager at Royce (since 2007). Andrew S. Palen Assistant Portfolio Manager* Since
September 1, 2018
Assistant Portfolio Manager of the Registrant (since September 1, 2018); Portfolio Manager and Analyst at Royce (since 2015); Senior Analyst at Armistice Capital (2013-2015); Summer Associate at UBS Global Management (2012); and Associate at Comvest Partners (2008-2011).
* Assistant Portfolio Managers may have investment discretion over a portion of the Registrant’s portfolio subject to the supervision of Registrant’s Portfolio Manager.

(a)(2) Other Accounts Managed by Portfolio Manager and Potential Conflicts of Interest (information as of December 31, 2018)

Other Accounts
Name of Portfolio
Manager
Type of Account Number of
Accounts
Managed
Total
Assets
Managed
Number of
Accounts
Managed for which
Advisory Fee is
Performance-Based
Value of
Managed
Accounts for
which
Advisory Fee is
Performance
Based
Charles M. Royce             Registered investment companies 8 $6,710,543,729 2 1,649,606,030   Private pooled investment vehicles 2 69,218,296 - -   Other accounts* 12 46,156,691 - -             Chris E. Flynn             Registered investment companies 5 4,811,285,789 2 1,649,606,030   Private pooled investment vehicles 1 69,036,808 - -   Other accounts* - - - -             Lauren A. Romeo             Registered investment companies 4 4,607,909,924 1 1,304,106,885   Private pooled investment vehicles 4 310,093,004 - -   Other accounts* - - - -             Steven G. McBoyle             Registered investment companies 5 4,374,739,904 1 1,304,106,885   Private pooled investment vehicles 10 455,238,258 - -   Other accounts*         Andrew S. Palen             Registered investment companies 2 2,883,191,052 1 1,304,106,885   Private pooled investment vehicles - - - -   Other accounts*        
*Other accounts include all other accounts managed by the Portfolio Manager in either a professional or personal capacity except for personal accounts subject to pre-approval and reporting requirements under the Registrant’s Rule 17j-1 Code of Ethics.

Conflicts of Interest
The fact that a Portfolio Manager has day-to-day management responsibility for more than one client account may create actual, potential or only apparent conflicts of interest. For example, the Portfolio Manager may have an opportunity to purchase securities of limited availability. In this circumstance, the Portfolio Manager is expected to review each account’s investment guidelines, restrictions, tax considerations, cash balances, liquidity needs and other factors to determine the suitability of the investment for each account and to ensure that his or her managed accounts are treated equitably. The Portfolio Manager may also decide to purchase or sell the same security for multiple managed accounts at approximately the same time. To address any conflicts that this situation may create, the Portfolio Manager will generally combine managed account orders (i.e., enter a “bunched” order) in an effort to obtain best execution or a more favorable commission rate. In addition, if orders to buy or sell a security for multiple accounts managed by common Portfolio Managers on the same day are executed at different prices or commission rates, the transactions will generally be allocated by Royce to each of such managed accounts at the weighted average execution price and commission. In circumstances where a pre-allocated bunched order is not completely filled, each account will normally receive a pro-rated portion of the securities based upon the account’s level of participation in the order. Royce may under certain circumstances allocate securities in a manner other than pro-rata if it determines that the allocation is fair and equitable under the circumstances and does not discriminate against any account.

As described below, there is a revenue-based component of each Portfolio Manager’s Performance-Related Variable Compensation and the Portfolio Managers also receive Firm-Related Variable Compensation based on revenues (adjusted for certain imputed expenses) generated by Royce. In addition, Charles M. Royce receives variable compensation based on Royce’s retained pre-tax profits from operations. As a result, the Portfolio Managers may receive a greater relative benefit from activities that increase the value to Royce of The Royce Funds and/or other Royce client accounts, including, but not limited to, increases in sales of Registrant’s shares and assets under management.

Also, as described above, the Portfolio Managers generally manage more than one client account, including, among others, registered investment company accounts, separate accounts and private pooled accounts managed on behalf of institutions (e.g., pension funds, endowments and foundations) and for high-net-worth individuals. The appearance of a conflict of interest may arise where Royce has an incentive, such as a performance-based management fee (or any other variation in the level of fees payable by the Registrant or other Royce client accounts to Royce), which relates to the management of one or more of The Royce Funds or accounts with respect to which the same Portfolio Manager has day-to-day management responsibilities. Except as described below, no Royce Portfolio Manager’s compensation is tied to performance fees earned by Royce for the management of any one client account. Although variable and other compensation derived from Royce revenues or profits is impacted to some extent, the impact is relatively minor given the small percentage of Royce firm assets under management for which Royce receives performance-measured revenue. Notwithstanding the above, the Performance-Related Variable Compensation paid to Charles M. Royce as Portfolio Manager of two registered investment company accounts (the Registrant and RMT) is based, in part, on performance-based fee revenues. The Registrant and RMT pay Royce a fulcrum fee that is adjusted up or down depending on the performance of the Fund relative to its benchmark index.

Finally, conflicts of interest may arise when a Portfolio Manager personally buys, holds or sells securities held or to be purchased or sold for the Registrant or other Royce client account or personally buys, holds or sells the shares of one or more of The Royce Funds. To address this, Royce has adopted a written Code of Ethics designed to prevent and detect personal trading activities that may interfere or conflict with client interests (including Registrant’s stockholders’ interests). Royce generally does not permit its Portfolio Managers to purchase small- or micro-cap securities for their personal investment portfolios.

Royce and The Royce Funds have adopted certain compliance procedures which are designed to address the above-described types of conflicts. However, there is no guarantee that such procedures will detect each and every situation in which a conflict arises.


(a)(3) Description of Portfolio Manager Compensation Structure (information as of December 31, 2018)

Royce seeks to maintain a compensation program that is competitively positioned to attract and retain high-caliber investment professionals. All Portfolio Managers, receive from Royce a base salary, Portfolio-Related Variable Compensation (generally the largest element of each Portfolio Manager’s compensation with the exception of Charles M. Royce), Firm-Related Variable Compensation based primarily on registered investment company and other client account revenues generated by Royce and a benefits package. Portfolio Manager compensation is reviewed and may be modified from time to time as appropriate to reflect changes in the market, as well as to adjust the factors used to determine variable compensation. Except as described below, each Portfolio Manager’s compensation consists of the following elements:

-  
BASE SALARY. Each Portfolio Manager is paid a base salary. In setting the base salary, Royce seeks to be competitive in light of the particular Portfolio Manager’s experience and responsibilities.
      -  
PORTFOLIO-RELATED VARIABLE COMPENSATION. Each Portfolio Manager receives quarterly Portfolio-Related Variable Compensation that is either asset-based, or revenue-based and therefore in part based on the value of the net assets of the account for which he or she is being compensated, determined with reference to each of the registered investment company and other client accounts they are managing. The revenue used to determine the quarterly Portfolio-Related Variable Compensation received by Charles M. Royce that relates to each of RMT and RVT is performance-based fee revenue.

Payment of the Portfolio-Related Variable Compensation may be deferred, and any amounts deferred are forfeitable, if the Portfolio Manager is terminated by Royce with or without cause or resigns. The amount of the deferred Portfolio-Related Variable Compensation will appreciate or depreciate during the deferral period, based on the total return performance of one or more Royce-managed registered investment company accounts selected by the Portfolio Manager at the beginning of the deferral period. The amount deferred will depend on the Portfolio Manager’s total direct, indirect beneficial and deferred unvested investments in the Royce registered investment company accounts for which he or she is receiving portfolio management compensation.

-  
FIRM-RELATED VARIABLE COMPENSATION. Portfolio Managers receive quarterly variable compensation based on Royce’s net revenues.
      -  
BENEFIT PACKAGE. Portfolio Managers also receive benefits standard for all Royce employees, including health care and other insurance benefits, and participation in Royce’s 401(k) Plan and Money Purchase Pension Plan. From time to time, on a purely discretionary basis, Portfolio Managers may also receive options to acquire stock in Royce’s parent company, Legg Mason, Inc. Those options typically represent a relatively small portion of a Portfolio Manager’s overall compensation.

(a)(4) Dollar Range of Equity Securities in Registrant Beneficially Owned by Portfolio Manager (information as of December 31, 2018)

The following table shows the dollar range of the Registrant’s shares owned beneficially and of record by the Portfolio Managers, including investments by his immediate family members sharing the same household and amounts invested through retirement and deferred compensation plans.

Portfolio Manager Dollar Range of Registrant’s Shares Beneficially Owned Charles M. Royce Over $1,000,000 Chris E. Flynn $100,001 to $500,000 Lauren A. Romeo $100,001 to $500,000 Steven G. McBoyle $0 Andrew S. Palen $0

(b) Not Applicable


Item 9.  Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.  Not Applicable

Item 10.  Submission of Matters to a Vote of Security Holders.  Not Applicable.

Item 11.  Controls and Procedures.

(a) Disclosure Controls and Procedures. The Principal Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on their evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.

(b) Internal Control over Financial Reporting. There were no significant changes in Registrant’s internal control over financial reporting or in other factors that could significantly affect this control subsequent to the date of the evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses during the second fiscal quarter of the period covered by this report.

Item 12.  Exhibits.  Attached hereto.
(a)(1) The Registrant’s code of ethics pursuant to Item 2 of Form N-CSR.

(a)(2) Separate certifications by the Registrant’s Principal Executive Officer and Principal Financial Officer as required by Rule 30a-2(a) under the Investment Company Act of 1940.

(a)(3) Not Applicable

(b) Separate certifications by the Registrant’s Principal Executive Officer and Principal Financial Officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and required by Rule 30a-2(b) under the Investment Company Act of 1940.

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

ROYCE VALUE TRUST, INC.

BY: /s/ Christopher D. Clark   Christopher D. Clark   President     Date: March 4, 2019

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

ROYCE VALUE TRUST, INC.   ROYCE VALUE TRUST, INC.               BY:    /s/ Christopher D. Clark   BY:   /s/ Peter K. Hoglund     Christopher D. Clark       Peter K. Hoglund     President       Treasurer               Date:   March 4, 2019   Date:   March 4, 2019