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 |
Registrants telephone number, including area code: (212) 508-4500 |
Date of fiscal year end: December 31 |
Date of reporting period: January 1, 2012 December 31, 2012 |
Item 1. Reports to Shareholders.
ANNUAL
REVIEW AND REPORT
TO STOCKHOLDERS
Royce Value Trust Royce Micro-Cap Trust Royce Focus Trust |
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www.roycefunds.com |
A Few Words on Closed-End Funds |
Royce & Associates, LLC manages three closed-end funds:
Royce Value Trust, the first small-cap value
closed-end fund offering; Royce Micro-Cap Trust, the only micro-cap closed-end fund; and Royce Focus
Trust, a closed-end fund that invests in a limited number of primarily small-cap companies. |
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 Funds 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. This is in contrast to open-end mutual funds, in which the fund sells and
redeems its shares on a continuous basis. |
A Closed-End Fund Offers Several Distinct Advantages Not Available from an Open-End Fund Structure | |
| Since a closed-end fund does not issue redeemable
securities or offer its securities on a continuous basis, it
does not need to liquidate securities or hold uninvested
assets to meet investor demands for cash redemptions, as
an open-end fund must. |
| In a closed-end fund, not having to meet investor
redemption requests or invest at inopportune times is ideal
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 more freely in less liquid
portfolio securities because it is not subject to potential
stockholder redemption demands. This is particularly
beneficial for Royce-managed closed-end funds, which
invest in small- and micro-cap securities. |
| The fixed capital structure allows permanent leverage to be
employed as a means to enhance capital appreciation potential. |
| Unlike Royces open-end funds, our closed-end funds are
able to distribute capital gains on a quarterly basis. Each of
the Funds has adopted a quarterly distribution policy for
its common stock. Please see page 16-18 for more details. |
| We believe that the closed-end fund structure is very suitable
for the long-term investor who understands the benefits of a
stable pool of capital. |
Why Dividend Reinvestment Is Important | |
A very important component of an investors 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 11, 13, and 15. For additional information on the Funds Distribution
Reinvestment and Cash Purchase Options and the benefits for stockholders, please see page 18 or visit our website at
www.roycefunds.com. |
This page is not part of the 2012 Annual Report to Stockholders |
Table of Contents | |
Annual Review | |
Performance Table | 2 |
Letter to Our Stockholders | 3 |
2012: In Quotes | 63 |
Postscript: The Lessons of 40 years | 64 |
Annual Report to Stockholders | 9 |
For 40 years, we have used a value approach to invest in small-cap securities. We focus primarily on the quality of a companys balance sheet, its ability to generate free cash flow, and other measures of profitability or sound financial condition. We then use these factors to assess the companys current worth, basing the assessment on either what we believe a knowledgeable buyer might pay to acquire the entire company or what we think the value of the company should be in the stock market. | |
This page is not part of the 2012 Annual Report to Stockholders | 1 |
Performance Table | |
NAV Average Annual Total Returns | Through December 31, 2012 |
Royce | Royce | Royce | Russell | Russell | Russell | |||||||||||||||||||
Value Trust | Micro-Cap Trust | Focus Trust | 2000 Index | Microcap Index | 2500 Index | |||||||||||||||||||
One-Year | 15.41 | % | 17.34 | % | 11.42 | % | 16.35 | % | 19.75 | % | 17.88 | % | ||||||||||||
Five-Year | 1.23 | 2.15 | 1.38 | 3.56 | 1.46 | 4.34 | ||||||||||||||||||
10-Year | 9.48 | 10.45 | 12.19 | 9.72 | 8.42 | 10.49 | ||||||||||||||||||
15-Year | 8.14 | 8.60 | 9.17 | 5.89 | n.a. | 7.43 | ||||||||||||||||||
20-Year | 10.06 | n.a. | n.a. | 8.43 | n.a. | 9.89 | ||||||||||||||||||
25-Year | 11.15 | n.a. | n.a. | 9.74 | n.a. | 11.14 | ||||||||||||||||||
Since Inception | 10.33 | 10.42 | 10.04 | n.a. | n.a. | n.a. | ||||||||||||||||||
Inception Date | 11/26/86 | 12/14/93 | 11/1/961 | n.a. | n.a. | n.a. | ||||||||||||||||||
1 Date Royce & Associates, LLC assumed investment management responsibility for the Fund. |
All performance information in this Review and Report reflects past performance, is presented on a total return basis, 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. Certain immaterial adjustments were made to the net assets of Royce Micro-Cap
Trust at 12/31/12 for financial reporting purposes, and as a result the net asset value originally calculated on that date and the total return based on that
net asset value differs from the adjusted net asset value and total return reported in the Financial Highlights. All indexes referenced are unmanaged and
capitalization-weighted. Each indexess returns include net reinvested dividends and/or interest income. Russell Investment Group is the source and owner
of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group. The Russell 2000 Index
is an index of domestic small-cap stocks that measures the performance of the 2,000 smallest publicly traded U.S. companies in the Russell 3000 Index.
The Russell Microcap Index includes 1,000 of the smallest securities in the small-cap Russell 2000 Index, along with the next smallest eligible securities as
determined by Russell. The Russell 2500 Index is an index of the 2,500 smallest publicly traded U.S. companies in the Russell 3000 Index. |
2 | This page is not part of the 2012 Annual Report to Stockholders |
Letter to Our Stockholders |
Men can do nothing without the make-believe of a beginning.
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See a Little Light |
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When seeing out one year and ushering in another, it is important to remember
that the calendar, useful though it may be, provides only one way of tracking time.
Some people, for example, choose to look to spring for a new beginning,
while others, more habituated to the rhythms of the school year, prefer
the arrival of fall. The stock market, in all its caprice and unpredictability,
most often eschews 12-month spans in favor of its own irregularly paced
seasons. So we find ourselves, as we look back on 2012 and peer ahead
to 2013, at one of those curious, familiar junctures when the calendar
compels a shift that the market seems to have anticipated months before.
From our perspective as active small-cap managers, the recent market cycle
change was something of a watershed. In fact, it seems very likely to us
that the 2012 small-cap low on June 4 signaled the end of the closely
correlated, range-bound cycle of the last few years, a cycle that created
ample disappointments for those of us committed to high quality, risk
management, and long-term absolute returns. It is not yet clear that this
June low will prove as auspicious as it looks to us at this writing. Suffice it to say
that major market inflection points seldom do any of us the favor of announcing
their arrival. |
From our perspective as active small- cap managers, the recent market cycle change was something of a watershed. In fact, it seems very likely to us that the 2012 small-cap low on June 4 signaled the end of the closely correlated, range- bound cycle of the last few years, a cycle that created ample disappointments for those of us committed to high quality, risk management, and long-term absolute returns. |
This page is not part of the 2012 Annual Report to Stockholders | 3 |
Charles M. Royce, President One of the most interesting recent developments in the equity markets, particularly in the small-cap space, has been the persistent disparity in performance between high- and low-quality companies. Over longer periods of time, higher-quality companies have differentiated themselves from a performance standpoint, especially compared to the lower quality segments of the market. While the aftermath of the financial crisis altered this script, there are signs that the dynamic is changing. Historically, lower-quality companies have tended to demonstrate their most robust outperformance when markets are in the initial recovery phase following a recession or bear market low. However, once economies and markets move from recovery to expansion, the rate of change in these inputs begins to slow while leadership tends to rotate back to higher- quality companies, whose business fundamentals are more compelling. Continued on page 6... |
Letter to Our Stockholders It is equally important to emphasize that our new-found sanguine attitude is contingent on
seeing in 2013 more of what we saw in the second half of 2012, particularly in last years closing
months. During this period, investors were looking more closely at companies that possess
sustainable quality in the form of strong balance sheets, high returns on invested capital, steady
earnings, and reasonable dividends while paying a bit less attention to high-yield instruments,
copiously leveraged stocks, and explosive growth surprises. We want to stress the extremely
cautious nature of our optimism. The resurgence of quality off the June low was not decisive and
has been thus far short lived. However, in our view, it did mark a subtle and significant shift
that grew more pronounced in the fourth quarter, most notably in October and November
when share prices went wobbly from the impact of Hurricane Sandy and the aftermath of the
elections, which included periods of recurrent anxiety over the then-looming fiscal cliff.
Quality shone through in this more uncertain period. Throughout most of our first 35 years of managing portfolios, this resilience would have been unexceptional, and hardly worth mentioning, because quality companies have historically defended well. However, since the spring of 2010and even more dramatically since the April 2011 small-cap highlittle of what worked historically has enjoyed success. This has made the last five yearsthe last three particularlyamong the most frustrating periods of our 40 years in business. With retrospective clarity, perhaps we should have suspected that something was amiss, or at least historically aberrant, when stocks rebounded so quickly and dynamically from the March 2009 bottom. Considering that the recession which began in 2007 was made far worse by the global financial crisis in the fall of 2008, the markets surge may have been too much too soon, welcome though it was. In any event, investors soon became more than a little wary, shuffling in and out of stocks with little regard for business fundamentals and too much for macro headlines, nearly all of them negative. Unable to establish any clear direction, the market sputtered as it rose and wheezed as it stumbled. It often seemed as though many of the investors who were frantically shoving money in and pulling it out again weeks, days, or hours later were the same people decrying the mercurial nature of asset prices and questioning whether equities were any longer a viable investment option. Along the way, results for passive investment approaches began to outpace those of an ever-larger number of active managers. So it is with a large measure of relief that we bid a tentative and hopeful good-bye to all that as we look ahead to better, more stable days. The Wall of Worry An old adage has it that the market climbs a wall of worry during those times when stocks behave bullishly in the face of negative news or perceptions. It seems clear to us that in 2012, the market scaled just such a wall. Consider the following: For the most part, the bearish second quarter eroded, but did not undo, the gains achieved in the first. The years final six months found many investors still behaving coolly toward equities and a host of large-scale economic and fiscal issues yet to be fully worked through. As the year closed, a fiscal cliff deal had yet to be reached, various European nations continued to flirt with financial peril, and China was still growing |
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4 | This page is not part of the 2012 Annual Report to Stockholders |
at a slower pace than in previous boom years. In addition, there was a typically contentious
presidential election preceded by a disastrous hurricane that swept through the worlds financial
capital. Yet the market ultimately shrugged off most of these concerns.
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An old adage has it that the market climbs a wall of worry during those times when stocks behave bullishly in the face of negative news or perceptions. It seems clear to us that in 2012 the market scaled just such a wall. |
This page is not part of the 2012 Annual Report to Stockholders | 5 |
However, the four rounds of QE have created an extended tailwind for low-quality companies. Highly levered businessesa low-quality attribute from our standpointhave benefited from the sharp drop in the cost of capital that has accompanied the Feds bond buying programs. Access to capital has simultaneously improved, allowing weaker companies to stave off potential financing challenges. This is particularly relevant in the smaller company space where financing is often tenuous. Interestingly, companies with large net cash positions have also lagged as that cash has been viewed as an unproductive asset that generates little or no return, even though it provides a healthy margin of safety and is often the result of profitability. Even allowing for strong second-half results, high-quality small-caps look highly attractive to us relative to both their lower-quality counterparts and their high-quality peers in the large-cap space. The drop in market volatility back to pre-crisis levels, as measured by the VIX, has contributed to the relative strength of low-quality companies. Investors appetite for riskier assets tends to correlate with sharp movesboth up and downin volatility. As the more violent swings in the market dissipated, investors were increasingly willing to embrace the added risk associated with lower quality enterprises. Continued on page 8... |
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Letter to Our Stockholders | ||
Good-Bye to All That (We Hope) | ||
Calendar-year results for our closed-end funds fell a bit short of our expectations on a
relative basis, even as all three of the portfolios finished the year with both solid second-half
performances and more-than-respectable absolute returns. Certainly some holdings drew
a benefit from the markets suddenly renewed affection for quality characteristics. Results
as a whole therefore left us frustrated yet hopeful, for the reasons outlined above.
We have previously discussed the reasons for recent performance disappointments, but they are worth recapping for what we would like to think will be the last time, at least for a while. Beginning with 2007s recession and moving through the global financial crisis into the early days of June 2012, the markets were highly volatile, closely correlated, and frequently disappointing. This pattern could first be seen emerging in the spring of 2010 and was cast in harder material by the small-cap high on April 29, 2011. So while the one- and three-year numbers for the major domestic indexes were strong through the end of 2012, investors continue to be leery of the market, most probably owing to its lack of a sustainable course, bullish or bearish, especially in the roughly 13-month period between the April 2011 high and the 2012 low in early June. More importantly, this cycle of high correlation often proved difficult for our closed-end portfolios. |
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2012 NAV TOTAL RETURNS FOR THE ROYCE FUNDS VS. RUSSELL 2000, RUSSELL MICROCAP AND THE RUSSELL 2500 as of 12/31/12 |
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1 | Certain immaterial adjustments were made to the net assets of Royce Micro-Cap Trust at 12/31/12 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. |
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Throughout this time, we remained patient and disciplined, resolutely searching for companies that met our standards for quality and attractive valuation while investors grew more interested in other matters. On the one hand, they sought safety in fixed income instruments, utilities, or high-yielding vehicles such as REITs and MLPs; on the other hand they looked |
6 | This page is not part of the 2012 Annual Report to Stockholders |
for fast, dramatic growth, which most often came from highly leveraged companies in which
we take no interest. For our part, we continued to see many companies across several sector and
industry groups that answered to our preferred combination of quality and value. However,
many of the largest company, industry and/or sector weightings in some portfolios have fared
poorest, including those in the Energy, Materials, and Information Technology sectors. While
all of this has been frustrating, none of it has changed the way in which we invest or construct
portfolios. As we said in our Semiannual Review and Report, patience and discipline are not
virtues to which we pay lip service. Our investment horizon will remain squarely focused on
the long term, as it has for 40 years. |
We did not enjoy watching certain portfolio favorites languish. But not once did we consider changing our core principles. We knew that we were in a highly anomalous market, one that we may not see again for more than a generation. So we stayed patient and consistent while we waited for the cycle to shift. |
This page is not part of the 2012 Annual Report to Stockholders | 7 |
The current preference for passive strategies and ETFs at the expense of active management has also played a role. Within small-cap, active managers, especially those with a long-term orientation, tend to have a quality bias in their portfolios, while passive index vehicles, especially those meant to replicate the Russell 2000, have no bias other than market cap and therefore have a higher weighting in lower-quality companies. Persistent redemptions of actively managed funds combined with modest inflows to ETFs have further distorted the low quality/high performance differential. The key question, then, is when will this change? It is our view that it may already have begun. Interest rates, while at historic lows, cannot fall much lower. In fact, each successive round of quantitative easing is exerting less and less pressure on rates while at the same time raising the specter of increased inflation down the road. While liquidity should remain abundant, the rate of change in the cost of capital has clearly peaked. By the same token, the rate of decline in market volatility has significantly slowed with the VIX now back to its long-run averages. And while the global economy continues to grow, GDP statistics are anything but robust. Low-quality companies have had an extended moment in the sun, but it is our strong belief that we are entering a new era for quality. |
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Letter to Our Stockholders | |||||
in which stock picking matters. Our optimism, cautious as it is, is bolstered by the fact that in the years ahead earnings growth can accelerate for small caps and should be robust as the economy continues to improve. While many companies are hesitant about capital expenditures, those issues have more to do with timing. That is, businesses were not willing to start spending until the President and Congress struck a deal. Yet our meetings with management teams have convinced us that there is no question about their willingness to invest. In this context, it is worth mentioning that the tax and stimulus deal that was struck early in January still left important matters such as infrastructure spending, entitlements, and the next debt ceiling increase unresolved. So there will be opportunities for political intransigence to potentially affect the markets in 2013, and it will be interesting to see how investors respond to additional rounds of fiscal gridlock. Our thought is that greater levels of attention to business fundamentals will remain high. We believe that equities will continue their positive performance into 2013, that quality-oriented companies and active management approaches, especially within the small-cap universe, will continue their resurgence, and that non-U.S. small-caps will continue to surprise on the upside. We are very happy to say that it looks like a new, more historically typical cycle has begun. |
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Sincerely | |||||
Charles M. Royce | W. Whitney George | Jack E. Fockler, Jr. | |||
President | Vice President | Vice President | |||
January 31, 2013 |
8 | This page is not part of the 2012 Annual Report to Stockholders |
Table of Contents | |
Annual Report to Stockholders | |
Managers Discussions of Fund Performance | |
Royce Value Trust | 10 |
Royce Micro-Cap Trust | 12 |
Royce Focus Trust | 14 |
History Since Inception | 16 |
Distribution Reinvestment and Cash Purchase Options | 18 |
Schedules of Investments and Other Financial Statements | |
Royce Value Trust | 19 |
Royce Micro-Cap Trust | 35 |
Royce Focus Trust | 50 |
Directors and Officers | 60 |
Notes to Performance and Other Important Information | 61 |
The Royce Funds 2012 Annual Report to Stockholders | 9 |
Royce Value Trust |
AVERAGE ANNUAL NAV TOTAL RETURNS Through 12/31/12 |
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July-December 20121 | 10.87 | % | ||||||||
One-Year | 15.41 | |||||||||
Three-Year | 10.58 | |||||||||
Five-Year | 1.23 | |||||||||
10-Year | 9.48 | |||||||||
15-Year | 8.14 | |||||||||
20-Year | 10.06 | |||||||||
25-Year | 11.15 | |||||||||
Since Inception (11/26/86) | 10.33 | |||||||||
1 Not annualized | ||||||||||
CALENDAR YEAR NAV TOTAL RETURNS | ||||||||||
Year | RVT | Year | RVT | |||||||
2012 | 15.4 | % | 2004 | 21.4 | % | |||||
2011 | -10.1 | 2003 | 40.8 | |||||||
2010 | 30.3 | 2002 | -15.6 | |||||||
2009 | 44.6 | 2001 | 15.2 | |||||||
2008 | -45.6 | 2000 | 16.6 | |||||||
2007 | 5.0 | 1999 | 11.7 | |||||||
2006 | 19.5 | 1998 | 3.3 | |||||||
2005 | 8.4 | 1997 | 27.5 | |||||||
TOP 10 POSITIONS % of Net Assets | ||||||||||
HEICO Corporation | 1.1 | % | ||||||||
Carters | 1.0 | |||||||||
Mohawk Industries | 1.0 | |||||||||
Coherent | 1.0 | |||||||||
Lincoln Electric Holdings | 1.0 | |||||||||
Advisory Board (The) | 1.0 | |||||||||
Nordson Corporation | 1.0 | |||||||||
Reliance Steel & Aluminum | 0.9 | |||||||||
PAREXEL International | 0.9 | |||||||||
E-L Financial | 0.8 | |||||||||
PORTFOLIO SECTOR BREAKDOWN % of Net Assets | ||||||||||
Industrials | 27.8 | % | ||||||||
Information Technology | 19.6 | |||||||||
Financials | 17.8 | |||||||||
Consumer Discretionary | 13.9 | |||||||||
Materials | 8.1 | |||||||||
Health Care | 6.5 | |||||||||
Energy | 5.1 | |||||||||
Consumer Staples | 2.1 | |||||||||
Telecommunication Services | 0.7 | |||||||||
Diversified Investment Companies | 0.4 | |||||||||
Miscellaneous | 3.8 | |||||||||
Preferred Stock | 0.1 | |||||||||
Borrowings Under Revolving Credit Agreement Less Cash and Cash Equivalents | -5.9 | |||||||||
Managers Discussion
Strong results in the final six months of 2012 helped Royce Value Trust (RVT) to enjoy a strong year on an absolute basis even as it came up a bit short on a relative scale. RVT gained 15.4% on an NAV (net asset value) basis and 16.2% on a market price basis in 2012 compared to gains of 16.3% for both of its unleveraged small-cap benchmarks, the Russell 2000 and S&P SmallCap 600 Indexes. The Fund enjoyed full participation in the rally that enlivened the years first quarter, up 13.9% on an NAV basis and 14.7% on a market price basis versus 12.4% for the Russell 2000 and 12.0% for the S&P SmallCap 600. This relative advantage was lost, however, once stock prices began to decline following a small-cap high on March 26. Investors once again shifted from bullish to bearish based on a now-familiar set of macro headlines concerning European debt and the pace of global economic growth, particularly in the U.S. and China. RVT fell hard in the second quarter, down 8.6% on an NAV basis and 8.9% on a market price basis versus respective declines of 3.5% and 3.6% for the Russell 2000 and S&P SmallCap 600. Small-cap stocks reached their low for the year on June 4, 2012, though it would not be until July and August that the presence of a rally began to be felt. Though not as dynamic as the first quarters bull run, the third quarter was the years second shift into an up phase. The Fund once more did well as share prices climbed, gaining 5.1% on an NAV basis and 6.3% based on market price while the Russell 2000 was up 5.3% and the S&P SmallCap 600 rose 5.4%. For stocks as a whole, the fourth quarter was a more mixed period. Investors did their best to make sense of the effects of Hurricane Sandy, the elections, the looming fiscal cliff, and another round of quantitative easing announced by the Fed in mid-December. This muted the performance of RVTs benchmarksthe Russell 2000 was up 1.9% in the fourth quarter while the S&P SmallCap 600 rose 2.2%. The Fund handily outpaced each benchmark for the same period, up 5.5% on an NAV basis and 4.6% on a market price basis. This gave the Fund an NAV advantage for the second half and from the 2012 small-cap low on June 4 through the end of December. For this period, RVT gained 17.4% on an NAV basis (+15.6% based on market price) versus respective gains of 16.3% and 15.8% for the Russell 2000 and S&P SmallCap 600. Longer-term relative results were mixed, with some key pockets of strength. From the small-cap trough on March 9, 2009 through December 31, 2012, RVT was up 187.2% on an NAV basis and 207.0% on a market price basis versus a gain of 160.9% for the Russell 2000 and 174.6% for the S&P SmallCap 600. On an NAV basis, the Fund outperformed both benchmarks for |
10 | The Royce Funds 2012 Annual Report to Stockholders |
Performance and Portfolio Review
the 15-, 25-year, and since inception (11/26/86) periods ended December 31, 2012. (The Fund
also beat the Russell 2000 on both an NAV and market price basis for the 15-, 20-, 25-year, and
since inception periods.) RVTs NAV average annual total return since inception was 10.3%.
Nordson Corporation, part of the machinery group in the top-performing Industrials sector, was the Funds top contributor in 2012. The company has what we think is a highly attractive niche business making customized systems that apply adhesives, sealants, and coatings to consumer and industrial products during the manufacturing process. The company announced a 20% increase in its fiscal fourth quarter dividend in July, which not only excited investors, but also marked the 49th consecutive year in which it increased its dividend. We trimmed our position in August. The recovery in the housing industry spurred the rapidly rising stock price of Mohawk Industries in 2012, which in turn led us to take gains in February, May, November, and December. This conservatively capitalized company produces floor coverings for the residential and commercial markets. In addition to its robust earnings growth, investors seemed to like its aggressive attempts to capture market share by acquiring smaller competitors. Shares of PMFG, a business we have owned since 1990, fell nearly 80% between its early February high and its 2012 low in late November, driven in large part by issuing a secondary offering priced at a sizable discount to its stock. As a manufacturer of custom products primarily for the natural gas industry, the company was also adversely affected by declining gas prices, increased expenses, and project delays, all of which hurt earnings. Fond of its growing business and attractive valuation, we increased our stake between February and September. Major Drilling Group International provides contract drilling services for the metals industry. Although the firm continued to operate profitably, revenue and earnings were hurt as precious metals miners pared back development projects. This in turn seemed to spark fears of a possible decrease in demand for its services. We added to our stake in 2012 before reducing it somewhat in early January 2013. |
2 Reflects the actual market price of one share as it traded on the NYSE. |
FUND INFORMATION AND PORTFOLIO DIAGNOSTICS | |||
Fund Total Net Assets | $1,082 million | ||
Number of Holdings | 478 | ||
Turnover Rate | 25% | ||
Symbol | |||
Market Price | RVT | ||
NAV | XRVTX | ||
Net Leverage1 | 6% | ||
Average Market Capitalization2 | $1,430 million | ||
Weighted Average P/E Ratio3,4 | 15.2x | ||
Weighted Average P/B Ratio3 | 1.6x | ||
U.S. Investments (% of Net Assets) | 79.6% | ||
Non-U.S. Investments (% of Net Assets) | 26.3% | ||
2 Geometric Average. This weighted calculation uses each portfolio holdings market cap in a way designed to not skew the effect of very large or small holdings; instead, it aims to better identify the portfolios center, which Royce believes offers a more accurate measure of average market cap than a simple mean or median. |
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3 Harmonic Average. This weighted calculation evaluates a portfolio as if it were a single stock and measures it overall. It compares the total market value of the portfolio to the portfolios share in the earnings or book value, as the case may be, of its underlying stocks. |
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4 The Funds P/E ratio calculation excludes companies with zero or negative earnings (10% of portfolio holdings as of 12/31/12). |
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DOWN MARKET PERFORMANCE COMPARISON |
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The Royce Funds 2012 Annual Report to Stockholders | 11 |
Royce Micro-Cap Trust |
AVERAGE ANNUAL NAV TOTAL RETURNS Through 12/31/12 |
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July-December 20121 | 10.20 | % | ||||||||
One-Year | 17.34 | |||||||||
Three-Year | 11.65 | |||||||||
Five-Year | 2.15 | |||||||||
10-Year | 10.45 | |||||||||
15-Year | 8.60 | |||||||||
Since Inception (12/14/93) | 10.42 | |||||||||
1 Not annualized | ||||||||||
CALENDAR YEAR NAV TOTAL RETURNS | ||||||||||
Year | RMT | Year | RMT | |||||||
2012 | 17.3 | % | 2004 | 18.7 | % | |||||
2011 | -7.7 | 2003 | 55.5 | |||||||
2010 | 28.5 | 2002 | -13.8 | |||||||
2009 | 46.5 | 2001 | 23.4 | |||||||
2008 | -45.5 | 2000 | 10.9 | |||||||
2007 | 0.6 | 1999 | 12.7 | |||||||
2006 | 22.5 | 1998 | -4.1 | |||||||
2005 | 6.8 | 1997 | 27.1 | |||||||
TOP 10 POSITIONS % of Net Assets | ||||||||||
Kennedy-Wilson Holdings | 2.0 | % | ||||||||
Integrated Electrical Services | 1.6 | |||||||||
Quaker Chemical | 1.3 | |||||||||
Virtus Investment Partners | 1.3 | |||||||||
Seneca Foods | 1.3 | |||||||||
Tennant Company | 1.3 | |||||||||
Advisory Board (The) | 1.2 | |||||||||
Americas Car-Mart | 1.2 | |||||||||
Flexsteel Industries | 1.2 | |||||||||
Sapient Corporation | 1.2 | |||||||||
PORTFOLIO SECTOR BREAKDOWN % of Net Assets | ||||||||||
Industrials | 27.7 | % | ||||||||
Information Technology | 24.6 | |||||||||
Financials | 17.8 | |||||||||
Consumer Discretionary | 10.4 | |||||||||
Materials | 9.2 | |||||||||
Health Care | 7.7 | |||||||||
Energy | 4.1 | |||||||||
Consumer Staples | 3.2 | |||||||||
Utilities | 0.1 | |||||||||
Miscellaneous | 4.5 | |||||||||
Preferred Stock | 0.4 | |||||||||
Borrowings Under Revolving Credit Agreement Less Cash and Cash Equivalents | -9.7 | |||||||||
Managers Discussion
The strong year for micro-cap stocks was reflected in the calendar-year results for Royce Micro-Cap Trust (RMT). The Fund was up 17.3% on an NAV (net asset value) basis and 14.0% on a market price basis in 2012 compared to 16.3% for its unleveraged small-cap benchmark, the Russell 2000 Index, and 19.8% for the unleveraged Russell Microcap Index. Stocks as a whole took off fast in 2012, building on a rally that began in early October 2011 and making for a pleasant and bullish opening quarter. The Fund gained 11.4% on an NAV basis and 8.8% on a market price basis compared to a 12.4% increase for its benchmark and a gain of 15.3% for the microcap index. The rally lost steam after small-caps reached a first-half high on March 26, derailed for the third straight year by the same three concerns: sovereign debt in Europe and the pace of economic growth in the U.S. and China. These anxieties drove share prices down through most of the second quarter, with May seeing the largest losses. RMT fell 4.4% on an NAV basis and 3.8% based on its market price in the second quarter. That same period saw the Russell 2000 lose 3.5% while the Russell Microcap lost 2.0%. Although the third quarter saw a resumption of bullish behavior, it was a more moderately paced run than what the market enjoyed during the first quarter. After reaching a 2012 low on June 4, share prices crept upward. For the third quarter, the Fund rose 6.8% on an NAV basis and 7.3% on a market price basis compared to a 5.3% increase for the Russell 2000 and a gain of 5.9% for the unleveraged Russell Microcap. The fourth quarter was a bit more volatile as investors tried to sort out the ramifications of Hurricane Sandy, the aftermath of the elections, the potential effects of the fiscal cliff, and a fourth round of quantitative easing. The Russell 2000 was up 1.9% and the Russell Microcap gained 0.04% while the Fund climbed 3.2% on an NAV basis and 1.4% based on market price for the years final quarter. The Funds strong year helped it to build on previous relative advantages over longer-term time frames. From the small-cap trough on March 9, 2009 through December 31, 2012, RMT gained 197.8% on an NAV basis and 214.7% on a market price basis versus a gain of 160.9% for the Russell 2000 and 160.4% for the Russell Microcap. On both an NAV and market price basis, the Fund was ahead of each index for the 10-year period ended December 31, 2012 while it also outperformed the Russell 2000 for the 15-year and since inception (12/14/93) periods as well. (Data for the Russell Microcap only goes back to 2000.) RMTs NAV average annual total return since inception was 10.4%. Eight of the Funds nine equity sectors made positive contributions in 2012 while net losses for Energythe portfolios lone detractorwere relatively modest. Financials and Industrials led |
12 | The Royce Funds 2012 Annual Report to Stockholders |
Performance and Portfolio Review
by a sizable margin while Consumer Discretionary, Health Care, and Information Technology
also posted notable net gains. In fact, RMTs underweight in Health Care did not stop the
sector from making a meaningful positive impacttwo of the Funds top three contributors
hailed from that sector. Cancer drug developer Celsion Corporation made progress toward FDA
approval for its liver cancer treatment ThermoDox, which helped its shares to soar and led us to
begin reducing our position in July. During November and December we sold our position in
Acadia Pharmaceuticals. Its price shot up late in November after the company announced the
success of its drug Pimavanserin in treating psychosis in patients with Parkinsons disease.
We also trimmed our stake in top contributor Integrated Electrical Services in October as its price rose. The company provides electrical contracting and maintenance services to the commercial, industrial, residential, and power line markets and also offers data communication services that include the installation of wiring for computer networks and fiber optic telecommunications systems. Its ongoing progress back to profitability seemed to attract investors, especially in the second half. The stock price of PMFG, a business we have owned since 1994 in RMTs portfolio, fell nearly 80% between its early February high and its 2012 low in late November, driven in large part by issuing a secondary offering priced at a sizable discount to its stock. As a manufacturer of custom products primarily for the natural gas industry, the company was also affected by declining gas prices, increased expenses, and project delays, all of which hurt earnings. Still believing in its niche business and increasingly attractive valuation, we increased our stake between February and June. Tough times for the energy industry, disappointing earnings, and insider selling back in March all helped to drive investors away from Dawson Geophysical. The company acquires and processes three-dimensional seismic data used to analyze subsurface geological conditions for potential oil and natural gas reserves. Its margins remained solid, and it boasts what we think is a highly attractive niche business, so we were happy to hold our shares throughout 2012. |
2 Reflects the actual market price of one share as it traded on the NYSE and, prior to 12/1/03, on the Nasdaq. |
FUND INFORMATION AND PORTFOLIO DIAGNOSTICS | |||
Fund Total Net Assets | $319 million | ||
Number of Holdings | 332 | ||
Turnover Rate | 28% | ||
Symbol | |||
Market Price | RMT | ||
NAV | XOTCX | ||
Net Leverage1 | 10% | ||
Average Market Capitalization2 | $350 million | ||
Weighted Average P/E Ratio3,4 | 15.6 | ||
Weighted Average P/B Ratio3 | 1.4x | ||
U.S. Investments (% of Net Assets) | 96.6% | ||
Non-U.S. Investments (% of Net Assets) | 13.1% | ||
2 Geometric Average. This weighted calculation uses each portfolio holdings market cap in a way designed to not skew the effect of very large or small holdings; instead, it aims to better identify the portfolios center, which Royce believes offers a more accurate measure of average market cap than a simple mean or median. |
|||
3 Harmonic Average. This weighted calculation evaluates a portfolio as if it were a single stock and measures it overall. It compares the total market value of the portfolio to the portfolios share in the earnings or book value, as the case may be, of its underlying stocks. |
|||
4 The Funds P/E ratio calculation excludes companies with zero or negative earnings (25% of portfolio holdings as of 12/31/12). |
|||
DOWN MARKET PERFORMANCE COMPARISON |
|||
The Royce Funds 2012 Annual Report to Stockholders | 13 |
Royce Focus Trust |
AVERAGE ANNUAL NAV TOTAL RETURNS Through 12/31/12 |
||||||||||
July-December 20121 | 11.50 | % | ||||||||
One-Year | 11.42 | |||||||||
Three-Year | 6.69 | |||||||||
Five-Year | 1.38 | |||||||||
10-Year | 12.19 | |||||||||
15-Year | 9.17 | |||||||||
Since Inception (11/1/96)2 | 10.04 | |||||||||
1 Not annualized | ||||||||||
CALENDAR YEAR NAV TOTAL RETURNS | ||||||||||
Year | FUND | Year | FUND | |||||||
2012 | 11.4 | % | 2004 | 29.3 | % | |||||
2011 | -10.5 | 2003 | 54.3 | |||||||
2010 | 21.8 | 2002 | -12.5 | |||||||
2009 | 54.0 | 2001 | 10.0 | |||||||
2008 | -42.7 | 2000 | 20.9 | |||||||
2007 | 12.2 | 1999 | 8.7 | |||||||
2006 | 15.8 | 1998 | -6.8 | |||||||
2005 | 13.3 | 1997 | 20.5 | |||||||
TOP 10 POSITIONS % of Net Assets | ||||||||||
Western Digital | 3.9 | % | ||||||||
Analog Devices | 3.3 | |||||||||
Berkshire Hathaway Cl. B | 3.3 | |||||||||
Microsoft Corporation | 3.3 | |||||||||
Mosaic Company (The) | 3.1 | |||||||||
Franklin Resources | 3.1 | |||||||||
Helmerich & Payne | 2.9 | |||||||||
Exxon Mobil | 2.9 | |||||||||
Buckle (The) | 2.7 | |||||||||
Apple | 2.6 | |||||||||
PORTFOLIO SECTOR BREAKDOWN % of Net Assets | ||||||||||
Materials | 29.6 | % | ||||||||
Information Technology | 18.1 | |||||||||
Financials | 15.9 | |||||||||
Energy | 13.1 | |||||||||
Consumer Discretionary | 7.5 | |||||||||
Industrials | 7.0 | |||||||||
Consumer Staples | 4.9 | |||||||||
Health Care | 2.0 | |||||||||
Cash and Cash Equivalents | 1.9 | |||||||||
Managers Discussion
We were very pleased with the strong second half turned in by Royce Focus Trust (FUND), even if it was not quite strong enough to give the Fund an advantage over its new benchmark for the calendar year. In 2012, FUND rose 11.4% on an NAV (net asset value) basis and 12.1% on a market price basis versus 17.9% for its new unleveraged benchmark, the Russell 2500 Index, and 16.3% for the similarly unleveraged Russell 2000 Index. The year began on a positive note by extending the rally that began off the October 3, 2011 small-cap low. In the bullish first quarter of 2012, the Fund rose 11.0% on an NAV basis and 12.0% on a market price basis. While by each measure these were strong absolute showings, the Fund lagged both the Russell 2500, which was up 13.0%, and the Russell 2000, which rose 12.4%. Any hopes that the nearly six-month bull phase might keep running based on the slowly improving U.S. economy were dashed following an early small-cap high on March 26, 2012. Driving investors away from stocks was another round of macro worries, including anxiety over European debt and currency issues and the strength of the U.S. and Chinese economies. The effect on stock prices was predictably negative, hitting many of the Funds most heavily weighted, economically sensitive sectors hardest. The Fund fell 10.0% on an NAV basis and 8.3% on a market price basis in the second quarter, while for the same period the Russell 2500 lost 4.1% and the Russell 2000 fell 3.5%. Following the June 4, 2012 small-cap low, the market shook loose of the bear. The Funds relative results also began to improve substantially. For the third quarter, FUND climbed 10.1% on an NAV basis and 8.4% on a market price basis, in both cases beating the Russell 2500 (+5.6%) and the Russell 2000 (+5.3%). For most small-cap and mid-cap stocks the fourth quarter was slightly rockier, particularly from mid-September through mid-November. The Fund gave up some ground to both indexes in the fourth quarter, gaining 1.3% in NAV and 0.7% in market price while the Russell 2500 rose 3.1% and the Russell 2000 was up 1.9%. Yet FUND outpaced both indexes for the second half of 2012 on both an NAV (+11.5%) and market price (+9.2%) basis. The Russell 2500 was up 8.8% during this same period, while the Russell 2000 increased 7.2%. During the most recent full market cycle period that ran from the previous small-cap peak on July 13, 2007 through the small-cap peak on April 29, 2011, the Fund increased 10.2% on an NAV basis versus 9.2% for its new benchmark and 6.6% for the Russell 2000. On an NAV and market price basis, FUND beat both indexes for the 10-year, 15-year, and |
14 | The Royce Funds 2012 Annual Report to Stockholders |
Performance and Portfolio Review
since inception of Royces management (11/1/96) periods ended December 31, 2012.
The Funds average annual NAV total return for the since inception of our management
period was 10.0%.
Westlake Chemical manufactures basic chemicals, vinyls, polymers, fabricated building products, plastics, and high-end plastic films used to wrap food. Natural gas is a feedstock for much of what it produces, which gave it a huge cost advantage thanks to slumping gas prices. A founder-controlled business with conservative and intelligent management, we think its ongoing prospects remain very strong, especially in light of the fact that it has yet to see much benefit from the reviving housing industry. We did, however, take gains in August as its stock price was climbing. Top holding Western Digital makes hard drives and related products. Its stock was quite volatile in 2012, though it was relatively more stable in the second half. After announcing in April that its disk prices were lower than they had been at the beginning of the year, its shares tumbled. The company bought back shares in the aftermath, which is nearly always a positive sign to us. The firms earnings then surprised on the upside for the next two quarters, giving a boost to its stock price. Liking its ongoing prospects as a leader in its field, we were happy to hold a large position at the end of 2012. Major Drilling Group International provides contract drilling services for the metals industry. Although the firm continued to operate profitably, revenue and earnings were hurt as precious metals miners pared back development projects. This in turn seemed to spark fears of a possible decrease in demand for its services. This looked to us like a case of guilt by association, so we built our position in June, August, and September. We have owned shares of steel and scrap metal recycler Schnitzer Steel Industries since 2004. Demand for recycled metals slackened amid the slow pace of growth in the U.S. Excess capacity, lower-than-normal spring scrap flows, and margins compressed from increases in raw materials and transport costs have all driven investors to keep selling while we continued to hold our shares in anticipation of a rebound in global industrial activity that we think will spark demand. |
2 Reflects the actual market price of one share as it traded on Nasdaq. |
|||
3 Royce & Associates assumed investment management responsibility for the Fund on 11/1/96. |
FUND INFORMATION AND PORTFOLIO DIAGNOSTICS | |||
Fund Total Net Assets | $164 million | ||
Number of Holdings | 52 | ||
Turnover Rate | 16% | ||
Symbol | |||
Market Price | FUND | ||
NAV | XFUNX | ||
Average Market Capitalization1 | $5,492 million | ||
Weighted Average P/E Ratio2,3 | 14.1x | ||
Weighted Average P/B Ratio2 | 1.8x | ||
U.S. Investments (% of Net Assets) | 71.4% | ||
Non-U.S. Investments (% of Net Assets) | 26.7% | ||
1 Geometric Average. This weighted calculation uses each portfolio holdings market cap in a way designed to not skew the effect of very large or small holdings; instead, it aims to better identify the portfolios center, which Royce believes offers a more accurate measure of average market cap than a simple mean or median. |
|||
2 Harmonic Average. This weighted calculation evaluates a portfolio as if it were a single stock and measures it overall. It compares the total market value of the portfolio to the portfolios share in the earnings, or book value, as the case may be, of its underlying stocks. |
|||
3 The Funds P/E ratio calculation excludes companies with zero or negative earnings (8% of portfolio holdings as of 12/31/12). |
|||
DOWN MARKET PERFORMANCE COMPARISON |
|||
The Royce Funds 2012 Annual Report to Stockholders | 15 |
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. |
Amount | Purchase | NAV | Market | ||||||||||||||||||||
History |
Invested | Price1 | Shares | Value2 | 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 | ||||||||||||||||||||
12/31/12 | $ | 21,922 | 12,113 | $ | 186,540 | $ | 162,556 | ||||||||||||||||
16 | The Royce Funds 2012 Annual Report to Stockholders |
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. |
Amount | Purchase | NAV | Market | ||||||||||||||||||||
History |
Invested | Price1 | Shares | Value2 | Value2 | ||||||||||||||||||
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 | ||||||||||||||||||||
12/31/12 | $ | 8,900 | 5,256 | $ | 57,501 | $ | 49,669 | ||||||||||||||||
Royce Focus Trust | |||||||||||||||||||||||
10/31/96 | Initial Purchase | $ | 4,375 | $ | 4.375 | 1,000 | $ | 5,280 | $ | 4,375 | |||||||||||||
12/31/96 | 5,520 | 4,594 | |||||||||||||||||||||
12/5/97 | Distribution $0.53 | 5.250 | 101 | 6,650 | 5,574 | ||||||||||||||||||
12/31/98 | 6,199 | 5,367 | |||||||||||||||||||||
12/6/99 | Distribution $0.145 | 4.750 | 34 | 6,742 | 5,356 | ||||||||||||||||||
12/6/00 | Distribution $0.34 | 5.563 | 69 | 8,151 | 6,848 | ||||||||||||||||||
12/6/01 | Distribution $0.14 | 6.010 | 28 | 8,969 | 8,193 | ||||||||||||||||||
12/6/02 | Distribution $0.09 | 5.640 | 19 | 7,844 | 6,956 | ||||||||||||||||||
12/8/03 | Distribution $0.62 | 8.250 | 94 | 12,105 | 11,406 | ||||||||||||||||||
2004 | Annual distribution total $1.74 | 9.325 | 259 | 15,639 | 16,794 | ||||||||||||||||||
5/6/05 | Rights offering | 2,669 | 8.340 | 320 | |||||||||||||||||||
2005 | Annual distribution total $1.21 | 9.470 | 249 | 21,208 | 20,709 | ||||||||||||||||||
2006 | Annual distribution total $1.57 | 9.860 | 357 | 24,668 | 27,020 | ||||||||||||||||||
2007 | Annual distribution total $2.01 | 9.159 | 573 | 27,679 | 27,834 | ||||||||||||||||||
2008 | Annual distribution total $0.473 | 6.535 | 228 | 15,856 | 15,323 | ||||||||||||||||||
3/11/09 | Distribution $0.093 | 3.830 | 78 | 24,408 | 21,579 | ||||||||||||||||||
12/31/10 | 29,726 | 25,806 | |||||||||||||||||||||
2011 | Annual distribution total $0.413 | 6.894 | 207 | 26,614 | 22,784 | ||||||||||||||||||
2012 | Annual distribution total $0.46 | 6.686 | 255 | ||||||||||||||||||||
12/31/12 | $ | 7,044 | 3,871 | $ | 29,652 | $ | 25,549 | ||||||||||||||||
The Royce Funds 2012 Annual Report to Stockholders | 17 |
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. A registered stockholder also has the option to receive the distribution in the form of a stock certificate or in cash if Computershare is properly notified. 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 Funds common stock directly through Computershare on a monthly basis, and to deposit certificates representing your Fund shares with Computershare for safekeeping. The Funds investment adviser is absorbing all commissions on optional cash purchases under the Plans through December 31, 2012. 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 other stock certificates held by them to Computershare to be held in non-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 fee plus brokerage commissions from the sale transaction. 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 43010, Providence, RI 02940-3010, telephone (800) 426-5523. |
18 | The Royce Funds 2012 Annual Report to Stockholders |
Royce Value Trust | December 31, 2012 |
Schedule of Investments |
SHARES | VALUE | |||||
COMMON STOCKS 105.8% |
||||||
Consumer Discretionary 13.9% |
||||||
Auto Components - 0.4% |
||||||
China XD Plastics 1 |
109,700 | $ | 421,248 | |||
Drew Industries |
46,591 | 1,502,560 | ||||
Gentex Corporation 2 |
97,700 | 1,838,714 | ||||
Minth Group |
717,600 | 829,971 | ||||
4,592,493 | ||||||
Automobiles - 0.6% |
||||||
Thor Industries 2 |
77,500 | 2,900,825 | ||||
Winnebago Industries 1 |
222,500 | 3,811,425 | ||||
6,712,250 | ||||||
Distributors - 0.9% |
||||||
LKQ Corporation 1 |
368,000 | 7,764,800 | ||||
Weyco Group |
97,992 | 2,289,093 | ||||
10,053,893 | ||||||
Diversified Consumer Services - 1.4% |
||||||
Career Education 1 |
28,900 | 101,728 | ||||
MegaStudy |
39,150 | 2,885,627 | ||||
Regis Corporation 2,3 |
233,800 | 3,955,896 | ||||
Sothebys 2 |
206,500 | 6,942,530 | ||||
Universal Technical Institute |
110,432 | 1,108,737 | ||||
14,994,518 | ||||||
Hotels, Restaurants & Leisure - 0.4% |
||||||
CEC Entertainment |
64,100 | 2,127,479 | ||||
Lotto24 1 |
30,900 | 139,462 | ||||
WMS Industries 1,2 |
120,000 | 2,100,000 | ||||
4,366,941 | ||||||
Household Durables - 2.7% |
||||||
Blyth |
34,200 | 531,810 | ||||
Desarrolladora Homex ADR 1 |
14,100 | 175,968 | ||||
Ekornes |
125,000 | 2,084,504 | ||||
Ethan Allen Interiors |
345,800 | 8,890,518 | ||||
Hanssem |
39,100 | 678,880 | ||||
Harman International Industries 2,3 |
121,400 | 5,419,296 | ||||
Mohawk Industries 1,2,3 |
122,900 | 11,118,763 | ||||
28,899,739 | ||||||
Internet & Catalog Retail - 0.5% |
||||||
Manutan International |
53,900 | 2,391,200 | ||||
Takkt |
190,000 | 2,645,215 | ||||
5,036,415 | ||||||
Leisure Equipment & Products - 0.4% |
||||||
Beneteau |
180,000 | 1,954,824 | ||||
Shimano |
38,000 | 2,422,972 | ||||
4,377,796 | ||||||
Media - 1.0% |
||||||
Morningstar 2 |
98,900 | 6,213,887 | ||||
Pico Far East Holdings |
11,679,000 | 3,489,994 | ||||
Television Broadcasts |
135,000 | 1,013,340 | ||||
10,717,221 | ||||||
Multiline Retail - 0.5% |
||||||
Dollar Tree 1 |
22,000 | 892,320 | ||||
New World Department Store China |
7,215,700 | 4,697,120 | ||||
5,589,440 | ||||||
Specialty Retail - 1.7% |
||||||
Ascena Retail Group 1,2 |
89,900 | 1,662,251 | ||||
Christopher & Banks 1 |
43,700 | 238,165 | ||||
Dickson Concepts (International) |
934,300 | 497,189 | ||||
Dover Saddlery 1 |
17,821 | 58,809 | ||||
GameStop Corporation Cl. A 2 |
32,400 | 812,916 | ||||
Guess? 2 |
32,400 | 795,096 | ||||
Lewis Group |
350,000 | 2,854,939 | ||||
LOccitane International |
100,000 | 317,989 | ||||
Luk Fook Holdings (International) |
231,200 | 741,939 | ||||
Mens Wearhouse (The) 2 |
44,700 | 1,392,852 | ||||
Oriental Watch Holdings |
407,600 | 143,513 | ||||
OSIM International |
1,400,000 | 1,990,669 | ||||
Sa Sa International Holdings |
800,000 | 661,711 | ||||
Stein Mart |
167,800 | 1,265,212 | ||||
Systemax |
194,000 | 1,872,100 | ||||
TravelCenters of America LLC 1 |
27,600 | 129,720 | ||||
USS |
12,000 | 1,243,854 | ||||
West Marine 1 |
131,100 | 1,409,325 | ||||
Wet Seal (The) Cl. A 1 |
75,200 | 207,552 | ||||
18,295,801 | ||||||
Textiles, Apparel & Luxury Goods - 3.4% |
||||||
Anta Sports Products |
1,713,200 | 1,531,566 | ||||
Carters 1,2,3 |
204,100 | 11,358,165 | ||||
Columbia Sportswear 2,3 |
31,197 | 1,664,672 | ||||
Daphne International Holdings |
1,660,100 | 2,299,653 | ||||
Gildan Activewear |
20,000 | 731,600 | ||||
Grendene |
250,000 | 2,025,886 | ||||
J.G. Boswell Company 4 |
2,292 | 1,870,249 | ||||
K-Swiss Cl. A 1 |
163,600 | 549,696 | ||||
Pacific Textiles Holdings |
5,571,000 | 5,040,501 | ||||
PVH |
4,600 | 510,646 | ||||
Stella International Holdings |
633,700 | 1,717,839 | ||||
Texwinca Holdings |
1,830,300 | 1,748,086 | ||||
Van de Velde |
30,000 | 1,356,683 | ||||
Wolverine World Wide 2 |
100,000 | 4,098,000 | ||||
36,503,242 | ||||||
Total (Cost $115,105,364) |
150,139,749 | |||||
Consumer Staples 2.1% |
||||||
Beverages - 0.0% |
||||||
MGP Ingredients |
127,400 | 435,708 | ||||
Food & Staples Retailing - 0.3% |
||||||
FamilyMart |
76,000 | 3,128,478 | ||||
Food Products - 1.8% |
||||||
Alico |
27,000 | 989,010 | ||||
Cal-Maine Foods |
28,248 | 1,136,135 | ||||
First Resources |
307,100 | 511,588 | ||||
Industrias Bachoco ADR |
3,000 | 83,760 | ||||
Origin Agritech 1 |
76,800 | 106,752 | ||||
Seneca Foods Cl. A 1 |
110,000 | 3,344,000 | ||||
Seneca Foods Cl. B 1 |
13,251 | 397,398 | ||||
Super Group |
590,000 | 1,570,516 | ||||
Tootsie Roll Industries |
322,058 | 8,347,743 | ||||
Waterloo Investment Holdings 1,5 |
598,676 | 87,526 |
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. | 2012 Annual Report to Stockholders | 19 |
Royce Value Trust | |
Schedule of Investments |
SHARES | VALUE | |||||
Consumer Staples (continued) | ||||||
Food Products (continued) | ||||||
Westway Group |
380,000 | $ | 2,534,600 | |||
19,109,028 | ||||||
Total (Cost $18,927,929) |
22,673,214 | |||||
Diversified Investment Companies 0.4% |
||||||
Closed-End Funds - 0.4% |
||||||
Central Fund of Canada Cl. A 2,3 |
226,000 | 4,752,780 | ||||
Total (Cost $2,031,251) |
4,752,780 | |||||
Energy 5.1% |
||||||
Energy Equipment & Services - 4.4% |
||||||
Cal Dive International 1 |
456,250 | 789,312 | ||||
CARBO Ceramics 2,3 |
8,000 | 626,720 | ||||
Ensign Energy Services |
225,100 | 3,478,222 | ||||
Heckmann Corporation 1,2,3 |
50,000 | 201,500 | ||||
Helmerich & Payne 2,3 |
125,100 | 7,006,851 | ||||
ION Geophysical 1 |
361,500 | 2,353,365 | ||||
Oil States International 1,2,3 |
103,823 | 7,427,497 | ||||
Pason Systems |
105,800 | 1,824,138 | ||||
SEACOR Holdings 2 |
92,866 | 7,782,171 | ||||
ShawCor Cl. A |
54,300 | 2,128,438 | ||||
Steel Excel 1,4 |
156,880 | 3,890,624 | ||||
Superior Energy Services 1,2 |
77,600 | 1,607,872 | ||||
TETRA Technologies 1,2 |
68,000 | 516,120 | ||||
TGS-NOPEC Geophysical |
40,000 | 1,310,812 | ||||
Tidewater |
36,000 | 1,608,480 | ||||
Trican Well Service |
263,000 | 3,468,945 | ||||
Unit Corporation 1 |
34,000 | 1,531,700 | ||||
47,552,767 | ||||||
Oil, Gas & Consumable Fuels - 0.7% |
||||||
Africa Oil 1 |
74,800 | 525,638 | ||||
Bill Barrett 1,2 |
50,000 | 889,500 | ||||
Cimarex Energy 2 |
61,300 | 3,538,849 | ||||
Green Plains Renewable Energy 1 |
82,000 | 648,620 | ||||
Resolute Energy 1,2 |
201,134 | 1,635,219 | ||||
VAALCO Energy 1,2 |
33,300 | 288,045 | ||||
7,525,871 | ||||||
Total (Cost $47,035,152) |
55,078,638 | |||||
Financials 17.8% |
||||||
Capital Markets - 9.0% |
||||||
Affiliated Managers Group 1,2,3 |
42,200 | 5,492,330 | ||||
AllianceBernstein Holding L.P. 2 |
514,600 | 8,969,478 | ||||
AP Alternative Assets L.P. 1 |
233,200 | 3,458,733 | ||||
Artio Global Investors Cl. A |
433,000 | 822,700 | ||||
ASA Gold and Precious Metals |
117,501 | 2,529,797 | ||||
Ashmore Group |
831,000 | 4,805,107 | ||||
Cowen Group 1 |
1,274,458 | 3,122,422 | ||||
Dubai Investments |
8,900,000 | 2,073,850 | ||||
Eaton Vance 2 |
85,300 | 2,716,805 | ||||
Egyptian Financial Group-Hermes Holding Company 1 |
51,625 | 89,451 | ||||
FBR & Co. 1 |
576,200 | 2,229,894 | ||||
Federated Investors Cl. B 2,3 |
224,700 | 4,545,681 | ||||
GAMCO Investors Cl. A |
80,575 | 4,276,115 | ||||
GFI Group 2 |
166,247 | 538,640 | ||||
GIMV |
35,000 | 1,759,934 | ||||
Gleacher & Company 1 |
200,000 | 150,000 | ||||
Jupiter Fund Management |
75,000 | 348,103 | ||||
KKR & Co. L.P. |
415,000 | 6,320,450 | ||||
Lazard Cl. A |
206,100 | 6,150,024 | ||||
MVC Capital |
254,200 | 3,088,530 | ||||
Oppenheimer Holdings Cl. A |
75,000 | 1,295,250 | ||||
Paris Orleans |
226,496 | 5,171,501 | ||||
Partners Group Holding |
11,200 | 2,586,881 | ||||
Reinet Investments 1 |
164,948 | 3,008,098 | ||||
Reinet Investments DR 1 |
500,000 | 930,652 | ||||
SEI Investments |
323,100 | 7,541,154 | ||||
Sprott |
370,600 | 1,475,396 | ||||
Value Partners Group |
7,071,900 | 4,747,299 | ||||
VZ Holding |
5,984 | 754,759 | ||||
Waddell & Reed Financial Cl. A 2 |
139,300 | 4,850,426 | ||||
Westwood Holdings Group |
23,460 | 959,514 | ||||
96,808,974 | ||||||
Commercial Banks - 1.8% |
||||||
Bank of N.T. Butterfield & Son 1 |
1,784,161 | 2,230,201 | ||||
BCB Holdings 1 |
598,676 | 211,523 | ||||
Farmers & Merchants Bank of Long Beach |
1,200 | 5,172,000 | ||||
Fauquier Bankshares |
160,800 | 1,913,520 | ||||
First Citizens BancShares Cl. A |
45,527 | 7,443,665 | ||||
Mechanics Bank |
200 | 2,150,000 | ||||
19,120,909 | ||||||
Diversified Financial Services - 1.3% |
||||||
Banca Finnat Euramerica |
1,060,000 | 376,952 | ||||
Leucadia National |
38,300 | 911,157 | ||||
PICO Holdings 1 |
67,500 | 1,368,225 | ||||
RHJ International 1 |
622,500 | 3,272,454 | ||||
Sofina |
89,000 | 8,061,573 | ||||
13,990,361 | ||||||
Insurance - 3.1% |
||||||
Alleghany Corporation 1,2 |
8,999 | 3,018,444 | ||||
Argo Group International Holdings 2 |
18,200 | 611,338 | ||||
E-L Financial |
20,900 | 9,139,942 | ||||
Erie Indemnity Cl. A 2 |
50,000 | 3,461,000 | ||||
Independence Holding |
349,423 | 3,326,507 | ||||
Platinum Underwriters Holdings |
161,900 | 7,447,400 | ||||
Primerica |
170,000 | 5,101,700 | ||||
ProAssurance Corporation |
44,000 | 1,856,360 | ||||
33,962,691 | ||||||
Real Estate Investment Trusts (REITs) - 0.0% |
||||||
Vestin Realty Mortgage II 1 |
214,230 | 314,918 | ||||
Real Estate Management & Development - 2.2% |
||||||
CBRE Group Cl. A 1,2 |
24,200 | 481,580 | ||||
Consolidated-Tomoka Land |
63,564 | 1,971,120 | ||||
E-House China Holdings ADR |
585,161 | 2,399,160 | ||||
Forestar Group 1,2 |
222,000 | 3,847,260 |
20 | 2012 Annual Report to Stockholders | THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. |
December 31, 2012 | |
SHARES | VALUE | |||||
Financials (continued) | ||||||
Real Estate Management & Development (continued) | ||||||
Kennedy-Wilson Holdings |
191,000 | $ | 2,670,180 | |||
Midland Holdings |
2,398,600 | 1,164,775 | ||||
St. Joe Company (The) 1,2,3 |
167,000 | 3,854,360 | ||||
Tejon Ranch 1 |
279,900 | 7,859,592 | ||||
24,248,027 | ||||||
Thrifts & Mortgage Finance - 0.4% |
||||||
CFS Bancorp |
150,000 | 936,000 | ||||
Kearny Financial |
70,862 | 690,904 | ||||
Timberland Bancorp 1,6 |
444,200 | 3,082,748 | ||||
4,709,652 | ||||||
Total (Cost $200,748,625) |
193,155,532 | |||||
Health Care 6.5% |
||||||
Biotechnology - 0.1% |
||||||
Green Cross |
5,000 | 647,779 | ||||
Health Care Equipment & Supplies - 2.2% |
||||||
Allied Healthcare Products 1 |
140,512 | 369,547 | ||||
Analogic Corporation 2 |
40,135 | 2,982,030 | ||||
Atrion Corporation |
15,750 | 3,087,000 | ||||
bioMerieux |
17,000 | 1,643,232 | ||||
Carl Zeiss Meditec |
55,000 | 1,580,183 | ||||
CONMED Corporation |
81,500 | 2,277,925 | ||||
DiaSorin |
50,000 | 2,005,590 | ||||
DynaVox Cl. A 1 |
55,000 | 20,350 | ||||
IDEXX Laboratories 1,2 |
40,201 | 3,730,653 | ||||
Kossan Rubber Industries |
647,568 | 711,365 | ||||
Nihon Kohden |
25,100 | 761,049 | ||||
Straumann Holding |
10,000 | 1,235,985 | ||||
Top Glove |
375,000 | 691,512 | ||||
Urologix 1 |
142,648 | 97,001 | ||||
Young Innovations |
66,447 | 2,618,676 | ||||
23,812,098 | ||||||
Health Care Providers & Services - 0.9% |
||||||
Accretive Health 1 |
160,000 | 1,849,600 | ||||
Landauer 2 |
75,500 | 4,621,355 | ||||
MWI Veterinary Supply 1,2 |
10,000 | 1,100,000 | ||||
VCA Antech 1,2 |
82,500 | 1,736,625 | ||||
WellCare Health Plans 1 |
15,400 | 749,826 | ||||
10,057,406 | ||||||
Life Sciences Tools & Services - 1.9% |
||||||
Bio-Rad Laboratories Cl. A 1 |
21,388 | 2,246,809 | ||||
EPS Corporation |
612 | 1,568,052 | ||||
Furiex Pharmaceuticals 1 |
8,333 | 160,494 | ||||
ICON ADR 1 |
43,963 | 1,220,413 | ||||
Luminex Corporation 1 |
20,000 | 335,200 | ||||
PAREXEL International 1 |
312,400 | 9,243,916 | ||||
PerkinElmer 2,3 |
185,800 | 5,897,292 | ||||
20,672,176 | ||||||
Pharmaceuticals - 1.4% |
||||||
Adcock Ingram Holdings |
300,000 | 1,911,099 | ||||
Almirall |
200,000 | 1,964,882 | ||||
Boiron |
55,000 | 1,897,321 | ||||
Kalbe Farma |
4,000,000 | 441,704 | ||||
Recordati |
300,000 | 2,748,609 | ||||
Santen Pharmaceutical |
61,000 | 2,335,482 | ||||
Vetoquinol |
50,000 | 1,753,108 | ||||
Virbac |
10,000 | 1,977,333 | ||||
15,029,538 | ||||||
Total (Cost $43,447,204) |
70,218,997 | |||||
Industrials 27.8% |
||||||
Aerospace & Defense - 1.8% |
||||||
AeroVironment 1 |
13,000 | 282,620 | ||||
Alliant Techsystems 2 |
8,000 | 495,680 | ||||
Cubic Corporation |
11,800 | 566,046 | ||||
Ducommun 1 |
117,200 | 1,895,124 | ||||
HEICO Corporation 2,3 |
210,351 | 9,415,311 | ||||
HEICO Corporation Cl. A |
64,647 | 2,067,411 | ||||
Hexcel Corporation 1 |
47,500 | 1,280,600 | ||||
Moog Cl. A 1 |
25,000 | 1,025,750 | ||||
National Presto Industries |
3,000 | 207,300 | ||||
Teledyne Technologies 1 |
43,630 | 2,839,004 | ||||
20,074,846 | ||||||
Air Freight & Logistics - 1.4% |
||||||
Forward Air |
209,750 | 7,343,348 | ||||
Hub Group Cl. A 1,2,3 |
149,400 | 5,019,840 | ||||
UTi Worldwide |
175,000 | 2,345,000 | ||||
14,708,188 | ||||||
Building Products - 1.4% |
||||||
American Woodmark 1 |
123,335 | 3,431,180 | ||||
Apogee Enterprises 2 |
78,400 | 1,879,248 | ||||
Burnham Holdings Cl. B 4 |
36,000 | 507,600 | ||||
Simpson Manufacturing |
275,300 | 9,027,087 | ||||
14,845,115 | ||||||
Commercial Services & Supplies - 2.5% |
||||||
Brinks Company (The) |
206,320 | 5,886,309 | ||||
CompX International Cl. A |
185,300 | 2,581,229 | ||||
Copart 1 |
149,780 | 4,418,510 | ||||
Kimball International Cl. B |
286,180 | 3,322,550 | ||||
Moshi Moshi Hotline |
23,900 | 304,623 | ||||
Ritchie Bros. Auctioneers 2,3 |
297,800 | 6,221,042 | ||||
Sykes Enterprises 1 |
68,649 | 1,044,838 | ||||
Tetra Tech 1 |
119,900 | 3,171,355 | ||||
TMS International Cl. A 1 |
45,500 | 569,660 | ||||
27,520,116 | ||||||
Construction & Engineering - 1.8% |
||||||
EMCOR Group |
199,400 | 6,901,234 | ||||
Integrated Electrical Services 1 |
266,349 | 1,241,186 | ||||
Jacobs Engineering Group 1,2 |
81,400 | 3,465,198 | ||||
KBR |
180,000 | 5,385,600 | ||||
MYR Group 1,2 |
25,900 | 576,275 | ||||
Raubex Group |
750,000 | 1,500,104 | ||||
19,069,597 | ||||||
Electrical Equipment - 3.1% |
||||||
AZZ |
53,099 | 2,040,594 | ||||
Belden |
57,800 | 2,600,422 |
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. | 2012 Annual Report to Stockholders | 21 |
Royce Value Trust | |
Schedule of Investments |
SHARES | VALUE | |||||
Industrials (continued) | ||||||
Electrical Equipment (continued) | ||||||
Elektrobudowa |
16,392 | $ | 556,257 | |||
Franklin Electric |
104,600 | 6,502,982 | ||||
GrafTech International 1 |
590,587 | 5,545,612 | ||||
Hubbell Cl. B 2 |
7,000 | 592,410 | ||||
Powell Industries 1 |
92,400 | 3,837,372 | ||||
Preformed Line Products |
91,600 | 5,442,872 | ||||
Regal-Beloit |
100,000 | 7,047,000 | ||||
34,165,521 | ||||||
Industrial Conglomerates - 0.5% |
||||||
Carlisle Companies 2 |
10,400 | 611,104 | ||||
Raven Industries 2 |
199,000 | 5,245,640 | ||||
5,856,744 | ||||||
Machinery - 10.1% |
||||||
Armstrong Industrial |
1,514,500 | 326,656 | ||||
Astec Industries |
46,500 | 1,549,845 | ||||
Burckhardt Compression Holding |
14,400 | 4,722,953 | ||||
Chen Hsong Holdings |
1,615,000 | 493,456 | ||||
CLARCOR 2 |
92,500 | 4,419,650 | ||||
Columbus McKinnon 1 |
110,800 | 1,830,416 | ||||
Donaldson Company 2,3 |
185,600 | 6,095,104 | ||||
EVA Precision Industrial Holdings |
3,476,000 | 576,067 | ||||
FAG Bearings India |
29,500 | 923,579 | ||||
Gardner Denver |
10,300 | 705,550 | ||||
Graco |
116,376 | 5,992,200 | ||||
IDEX Corporation |
67,400 | 3,136,122 | ||||
Kennametal 2,3 |
213,300 | 8,532,000 | ||||
Lincoln Electric Holdings |
223,060 | 10,858,561 | ||||
NN 1 |
197,100 | 1,805,436 | ||||
Nordson Corporation |
169,996 | 10,730,148 | ||||
Pfeiffer Vacuum Technology |
17,000 | 2,058,527 | ||||
PMFG 1 |
388,352 | 3,530,120 | ||||
Rational |
7,000 | 2,015,989 | ||||
RBC Bearings 1 |
47,000 | 2,353,290 | ||||
Rotork |
30,000 | 1,244,131 | ||||
Semperit AG Holding |
84,000 | 3,462,134 | ||||
Spirax-Sarco Engineering |
65,000 | 2,443,806 | ||||
Sun Hydraulics |
8,600 | 224,288 | ||||
Timken Company (The) |
9,400 | 449,602 | ||||
Valmont Industries |
44,500 | 6,076,475 | ||||
WABCO Holdings 1 |
103,800 | 6,766,722 | ||||
Wabtec Corporation |
87,725 | 7,679,446 | ||||
Woodward 2,3 |
208,400 | 7,946,292 | ||||
108,948,565 | ||||||
Marine - 0.5% |
||||||
Kirby Corporation 1,2 |
80,000 | 4,951,200 | ||||
Professional Services - 2.8% |
||||||
Advisory Board (The) 1,2,3 |
231,200 | 10,817,848 | ||||
CRA International 1 |
64,187 | 1,268,977 | ||||
FTI Consulting 1,2 |
7,850 | 259,050 | ||||
JobStreet Corporation |
723,400 | 520,431 | ||||
ManpowerGroup |
78,600 | 3,335,784 | ||||
Michael Page International |
325,000 | 2,099,068 | ||||
On Assignment 1 |
375,400 | 7,613,112 | ||||
Robert Half International |
136,100 | 4,330,702 | ||||
30,244,972 | ||||||
Road & Rail - 1.2% |
||||||
Frozen Food Express Industries 1 |
286,635 | 255,105 | ||||
Landstar System 2 |
99,400 | 5,214,524 | ||||
Patriot Transportation Holding 1 |
212,958 | 6,054,396 | ||||
Universal Truckload Services |
55,000 | 1,003,750 | ||||
12,527,775 | ||||||
Trading Companies & Distributors - 0.6% |
||||||
AerCap Holdings 1 |
45,000 | 617,400 | ||||
Lawson Products |
161,431 | 1,598,167 | ||||
MSC Industrial Direct Cl. A 2 |
59,548 | 4,488,728 | ||||
6,704,295 | ||||||
Transportation Infrastructure - 0.1% |
||||||
Wesco Aircraft Holdings 1 |
68,400 | 903,564 | ||||
Total (Cost $167,135,935) |
300,520,498 | |||||
Information Technology 19.6% |
||||||
Communications Equipment - 1.6% |
||||||
AAC Technologies Holdings |
177,600 | 625,662 | ||||
Acme Packet 1,2,3 |
121,000 | 2,676,520 | ||||
ADTRAN 2,3 |
187,700 | 3,667,658 | ||||
Bel Fuse Cl. A |
36,672 | 631,125 | ||||
Cogo Group 1 |
87,715 | 190,342 | ||||
Comba Telecom Systems Holdings |
997,728 | 367,811 | ||||
Comtech Telecommunications 2 |
30,000 | 761,400 | ||||
EVS Broadcast Equipment |
35,000 | 2,064,860 | ||||
Globecomm Systems 1 |
183,700 | 2,075,810 | ||||
Sonus Networks 1 |
1,124,000 | 1,910,800 | ||||
Tellabs |
700,000 | 1,596,000 | ||||
VTech Holdings |
47,050 | 528,645 | ||||
17,096,633 | ||||||
Computers & Peripherals - 0.9% |
||||||
Asustek Computer |
50,000 | 564,587 | ||||
Catcher Technology |
84,600 | 423,410 | ||||
China Digital TV Holding Co. ADR |
5,000 | 8,400 | ||||
Diebold |
151,600 | 4,640,476 | ||||
Foxconn Technology |
85,155 | 268,152 | ||||
Intermec 1 |
23,000 | 226,780 | ||||
Intevac 1 |
57,450 | 262,547 | ||||
QLogic Corporation 1 |
24,100 | 234,493 | ||||
Seagate Technology 2 |
10,400 | 316,992 | ||||
Simplo Technology |
104,630 | 528,489 | ||||
SMART Technologies Cl. A 1 |
75,000 | 118,500 | ||||
STEC 1 |
375,500 | 1,851,215 | ||||
Western Digital 2 |
10,400 | 441,896 | ||||
9,885,937 | ||||||
Electronic Equipment, Instruments & Components - 8.7% |
||||||
Agilysys 1 |
165,125 | 1,382,096 | ||||
Anixter International 2 |
61,795 | 3,953,644 | ||||
Benchmark Electronics 1,2 |
165,200 | 2,745,624 | ||||
Broadway Industrial Group |
945,600 | 241,287 | ||||
Chroma Ate |
269,982 | 601,004 |
22 | 2012 Annual Report to Stockholders | THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. |
December 31, 2012 | |
SHARES | VALUE | |||||
Information Technology (continued) | ||||||
Electronic Equipment, Instruments & Components (continued) | ||||||
Cognex Corporation |
179,900 | $ | 6,623,918 | |||
Coherent |
219,500 | 11,111,090 | ||||
Dolby Laboratories Cl. A 2 |
149,600 | 4,387,768 | ||||
DTS 1 |
207,000 | 3,456,900 | ||||
FARO Technologies 1,2 |
32,300 | 1,152,464 | ||||
FEI Company 2 |
93,200 | 5,168,872 | ||||
FLIR Systems |
246,000 | 5,488,260 | ||||
Hana Microelectronics |
708,100 | 529,108 | ||||
Hollysys Automation Technologies 1 |
63,927 | 758,813 | ||||
Inficon Holding |
1,100 | 263,804 | ||||
IPG Photonics 2 |
64,420 | 4,293,593 | ||||
Molex 2 |
72,600 | 1,984,158 | ||||
National Instruments |
251,850 | 6,500,249 | ||||
Newport Corporation 1 |
523,500 | 7,041,075 | ||||
Perceptron |
357,700 | 2,110,430 | ||||
Plexus Corporation 1 |
176,100 | 4,543,380 | ||||
Richardson Electronics |
333,912 | 3,779,884 | ||||
Rofin-Sinar Technologies 1 |
305,400 | 6,621,072 | ||||
Tech Data 1,2,3 |
91,300 | 4,156,889 | ||||
TTM Technologies 1,2 |
211,400 | 1,944,880 | ||||
Vaisala Cl. A |
161,680 | 3,396,064 | ||||
94,236,326 | ||||||
Internet Software & Services - 0.9% |
||||||
Active Network 1 |
21,500 | 105,565 | ||||
Perficient 1 |
10,000 | 117,800 | ||||
RealNetworks 1 |
61,350 | 463,806 | ||||
ValueClick 1 |
145,000 | 2,814,450 | ||||
VistaPrint 1,2,3 |
187,000 | 6,144,820 | ||||
9,646,441 | ||||||
IT Services - 2.5% |
||||||
Convergys Corporation |
121,000 | 1,985,610 | ||||
CSE Global |
1,792,100 | 1,154,241 | ||||
eClerx Services |
35,900 | 449,784 | ||||
Forrester Research 2 |
20,100 | 538,680 | ||||
Hackett Group |
655,000 | 2,803,400 | ||||
ManTech International Cl. A |
35,400 | 918,276 | ||||
MAXIMUS |
94,200 | 5,955,324 | ||||
MoneyGram International 1,2 |
164,962 | 2,192,345 | ||||
NeuStar Cl. A 1 |
39,287 | 1,647,304 | ||||
Sapient Corporation 1 |
706,602 | 7,461,717 | ||||
Unisys Corporation 1 |
94,000 | 1,626,200 | ||||
26,732,881 | ||||||
Office Electronics - 0.1% |
||||||
Zebra Technologies Cl. A 1,2 |
23,058 | 905,718 | ||||
Semiconductors & Semiconductor Equipment - 3.3% |
||||||
Aixtron ADR |
88,258 | 1,054,683 | ||||
Analog Devices 2 |
11,200 | 471,072 | ||||
ASM Pacific Technology |
15,000 | 184,128 | ||||
ATMI 1 |
92,215 | 1,925,449 | ||||
BE Semiconductor Industries 4 |
58,000 | 429,200 | ||||
Cabot Microelectronics |
35,209 | 1,250,272 | ||||
Diodes 1 |
252,450 | 4,380,008 | ||||
Exar Corporation 1 |
157,576 | 1,402,426 | ||||
Integrated Silicon Solution 1 |
180,200 | 1,621,800 | ||||
International Rectifier 1 |
330,000 | 5,850,900 | ||||
Intersil Corporation Cl. A 2 |
190,000 | 1,575,100 | ||||
Miraial |
26,170 | 492,972 | ||||
Nanometrics 1,2 |
159,400 | 2,298,548 | ||||
Power Integrations 2 |
49,000 | 1,646,890 | ||||
RDA Microelectronics ADR |
94,800 | 1,019,100 | ||||
Teradyne 1,2,3 |
287,200 | 4,850,808 | ||||
TriQuint Semiconductor 1 |
670,000 | 3,242,800 | ||||
Veeco Instruments 1,2 |
88,000 | 2,597,760 | ||||
36,293,916 | ||||||
Software - 1.6% |
||||||
ACI Worldwide 1,2,3 |
131,150 | 5,729,943 | ||||
ANSYS 1,2,3 |
105,600 | 7,111,104 | ||||
Aspen Technology 1 |
42,100 | 1,163,644 | ||||
Blackbaud 2 |
31,400 | 716,862 | ||||
Majesco Entertainment 1 |
36,255 | 38,068 | ||||
SimCorp |
10,000 | 2,238,521 | ||||
16,998,142 | ||||||
Total (Cost $184,774,858) |
211,795,994 | |||||
Materials 8.1% |
||||||
Chemicals - 1.7% |
||||||
Cabot Corporation 2,3 |
67,200 | 2,673,888 | ||||
Hawkins |
86,178 | 3,329,918 | ||||
Huchems Fine Chemical |
40,056 | 968,496 | ||||
Intrepid Potash 2 |
131,766 | 2,805,298 | ||||
KMG Chemicals |
33,274 | 584,624 | ||||
LSB Industries 1 |
49,849 | 1,765,652 | ||||
Minerals Technologies 2 |
57,860 | 2,309,771 | ||||
Mosaic Company (The) 2 |
16,000 | 906,080 | ||||
Victrex |
85,000 | 2,293,983 | ||||
W.R. Grace & Co. 1,2 |
17,200 | 1,156,356 | ||||
18,794,066 | ||||||
Construction Materials - 0.9% |
||||||
Ash Grove Cement Cl. B 4 |
50,518 | 7,628,218 | ||||
Cemex ADR 1,2 |
30,000 | 296,100 | ||||
Mardin Cimento Sanayii |
500,000 | 1,496,783 | ||||
9,421,101 | ||||||
Containers & Packaging - 1.1% |
||||||
Greif Cl. A 2 |
90,844 | 4,042,558 | ||||
Mayr-Melnhof Karton |
70,000 | 7,508,986 | ||||
11,551,544 | ||||||
Metals & Mining - 4.4% |
||||||
Allied Nevada Gold 1,2 |
23,600 | 711,068 | ||||
AuRico Gold 1 |
258,300 | 2,112,894 | ||||
Central Steel & Wire 4 |
6,062 | 4,032,745 | ||||
Cliffs Natural Resources |
22,300 | 859,888 | ||||
Endeavour Mining 1 |
300,000 | 624,309 | ||||
Fresnillo |
25,000 | 775,720 | ||||
Globe Specialty Metals |
45,600 | 627,000 | ||||
Hecla Mining |
300,000 | 1,749,000 | ||||
Hochschild Mining |
250,000 | 1,942,513 | ||||
Kimber Resources 1 |
560,000 | 212,800 |
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. | 2012 Annual Report to Stockholders | 23 |
Royce Value Trust | December 31, 2012 |
Schedule of Investments |
SHARES | VALUE | ||||||
Materials (continued) | |||||||
Metals & Mining (continued) | |||||||
Maharashtra Seamless |
330,000 | $ | 1,627,119 | ||||
Major Drilling Group International |
399,600 | 3,936,946 | |||||
Medusa Mining |
250,000 | 1,441,982 | |||||
Pretium Resources 1 |
39,000 | 515,190 | |||||
Randgold Resources ADR |
33,000 | 3,275,250 | |||||
Reliance Steel & Aluminum 2,3 |
160,720 | 9,980,712 | |||||
Schnitzer Steel Industries Cl. A 2 |
100,000 | 3,033,000 | |||||
Silvercorp Metals 2 |
116,500 | 596,480 | |||||
Sims Metal Management ADR |
219,167 | 2,160,987 | |||||
Synalloy Corporation |
178,800 | 2,345,856 | |||||
Worthington Industries |
185,000 | 4,808,150 | |||||
47,369,609 | |||||||
Paper & Forest Products - 0.0% | |||||||
Qunxing Paper Holdings 5 |
3,296,000 | 175,541 | |||||
Total (Cost $70,926,378) | 87,311,861 | ||||||
Telecommunication Services 0.7% | |||||||
Wireless Telecommunication Services - 0.7% | |||||||
Telephone and Data Systems |
338,270 | 7,489,298 | |||||
Total (Cost $8,279,046) | 7,489,298 | ||||||
Miscellaneous 7 3.8% | |||||||
Total (Cost $41,383,240) | 41,610,785 | ||||||
TOTAL COMMON STOCKS | |||||||
(Cost $899,794,982) |
1,144,747,346 | ||||||
PREFERRED STOCK 0.1% | |||||||
Seneca Foods Conv. 1,5 |
|||||||
(Cost $796,469) |
55,000 | 1,504,800 | |||||
REPURCHASE AGREEMENT 6.9% | |||||||
Fixed Income Clearing Corporation, | |||||||
0.10% dated 12/31/12, due 1/2/13, |
|||||||
maturity value $74,647,415 (collateralized |
|||||||
by obligations of various U.S. Government |
|||||||
Agencies, 0.25% due 9/6/13, valued at $76,140,056) |
|||||||
(Cost $74,647,000) |
74,647,000 | ||||||
TOTAL INVESTMENTS 112.8% | |||||||
(Cost $975,238,451) |
1,220,899,146 | ||||||
LIABILITIES LESS CASH | |||||||
AND OTHER ASSETS (12.8)% |
(138,472,650 | ) | |||||
NET ASSETS 100.0% | $ | 1,082,426,496 | |||||
| New additions in 2012. |
1 | Non-income producing. |
2 | All or a portion of these securities were pledged as collateral in connection with the revolving credit agreement at December 31, 2012. Total market value of pledged securities at December 31, 2012, was $343,415,150. |
3 | At December 31, 2012, a portion of these securities were rehypothecated in connection with the Funds revolving credit agreement in the aggregate amount of $146,902,041. |
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 0.2% of net assets. These securities have been valued at their fair value under procedures approved by the Funds Board of Directors. These securities are defined as Level 3 securities due to the use of significant unobservable inputs in the determination of fair value. See Notes to Financial Statements. |
6 | At December 31, 2012, the Fund owned 5% or more of the Companys 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. |
7 | Includes securities first acquired in 2012 and less than 1% of net assets. |
Bold indicates the Funds 20 largest equity holdings in terms of December 31, 2012, market value. |
|
TAX INFORMATION: The cost of total investments for Federal income tax purposes was $971,980,024. At December 31, 2012, net unrealized appreciation for all securities was $248,919,122, consisting of aggregate gross unrealized appreciation of $342,393,387 and aggregate gross unrealized depreciation of $93,474,265. The primary difference between book and tax basis cost is the timing of the recognition of losses on securities sold. |
|
24 | 2012 Annual Report to Stockholders | THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. |
Royce Value Trust | December 31, 2012 |
Statement of Assets and Liabilities |
ASSETS: | |||||
Investments at value | |||||
Non-Affiliated Companies (cost $895,158,885) |
$ | 1,143,169,398 | |||
Affiliated Companies (cost $5,432,566) |
3,082,748 | ||||
Total investments at value | 1,146,252,146 | ||||
Repurchase agreements (at cost and value) | 74,647,000 | ||||
Cash and foreign currency | 591,935 | ||||
Receivable for investments sold | 10,598,415 | ||||
Receivable for dividends and interest | 961,580 | ||||
Prepaid expenses and other assets | 472,346 | ||||
Total Assets |
1,233,523,422 | ||||
LIABILITIES: | |||||
Revolving credit agreement | 150,000,000 | ||||
Payable for investments purchased | 343,091 | ||||
Payable for investment advisory fee | 476,587 | ||||
Payable for interest expense | 21,000 | ||||
Accrued expenses | 256,248 | ||||
Total Liabilities |
151,096,926 | ||||
Net Assets |
$ | 1,082,426,496 | |||
ANALYSIS OF NET ASSETS: | |||||
Paid-in capital - $0.001 par value per share; 70,275,231 shares outstanding (150,000,000 shares authorized) | $ | 820,368,882 | |||
Undistributed net investment income (loss) | 2,818,184 | ||||
Accumulated net realized gain (loss) on investments and foreign currency | 13,591,177 | ||||
Net unrealized appreciation (depreciation) on investments and foreign currency | 245,648,253 | ||||
Net Assets (net asset value per share - $15.40) |
$ | 1,082,426,496 | |||
Investments at identified cost |
$ | 900,591,451 |
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. | 2012 Annual Report to Stockholders | 25 |
Royce Value Trust | Year Ended December 31, 2012 |
Statement of Operations |
INVESTMENT INCOME: | |||||
Income: | |||||
Dividends 1 |
$ | 22,870,207 | |||
Interest |
105,418 | ||||
Rehypothecation income |
38,430 | ||||
Securities lending |
526,743 | ||||
Total income | 23,540,798 | ||||
Expenses: | |||||
Investment advisory fees |
5,838,929 | ||||
Stockholder reports |
403,494 | ||||
Custody and transfer agent fees |
345,803 | ||||
Interest expense |
252,048 | ||||
Administrative and office facilities |
149,691 | ||||
Professional fees |
145,456 | ||||
Directors fees |
129,647 | ||||
Other expenses |
118,684 | ||||
Total expenses |
7,383,752 | ||||
Compensating balance credits |
(71 | ) | |||
Fees waived by investment adviser |
(50,000 | ) | |||
Net expenses |
7,333,681 | ||||
Net investment income (loss) |
16,207,117 | ||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: |
|||||
Net realized gain (loss): |
|||||
Investments |
63,037,316 | ||||
Foreign currency transactions |
(139,763 | ) | |||
Net change in unrealized appreciation (depreciation): |
|||||
Investments and foreign currency translations |
75,703,358 | ||||
Other assets and liabilities denominated in foreign currency |
(476 | ) | |||
Net realized and unrealized gain (loss) on investments and foreign currency |
138,600,435 | ||||
NET INCREASE (DECREASE) IN NET ASSETS FROM INVESTMENT OPERATIONS |
154,807,552 | ||||
DISTRIBUTIONS TO PREFERRED STOCKHOLDERS |
(11,357,495 | ) | |||
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON STOCKHOLDERS |
|||||
FROM INVESTMENT OPERATIONS |
$ | 143,450,057 |
1 Net of foreign withholding tax of $620,073. |
26 | 2012 Annual Report to Stockholders | THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. |
Royce Value Trust | |
Statement of Changes in Net Assets Applicable to Common Stockholders |
Year ended | Year ended | |||||||||
12/31/12 | 12/31/11 | |||||||||
INVESTMENT OPERATIONS: |
||||||||||
Net investment income (loss) |
$ | 16,207,117 | $ | 6,739,838 | ||||||
Net realized gain (loss) on investments and foreign currency |
62,897,553 | 35,713,778 | ||||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currency |
75,702,882 | (143,670,265 | ) | |||||||
Net increase (decrease) in net assets from investment operations |
154,807,552 | (101,216,649 | ) | |||||||
DISTRIBUTIONS TO PREFERRED STOCKHOLDERS: |
||||||||||
Net investment income |
(2,356,525 | ) | (2,024,508 | ) | ||||||
Net realized gain on investments and foreign currency |
(9,000,970 | ) | (10,955,492 | ) | ||||||
Total distributions to Preferred Stockholders |
(11,357,495 | ) | (12,980,000 | ) | ||||||
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON STOCKHOLDERS |
||||||||||
FROM INVESTMENT OPERATIONS |
143,450,057 | (114,196,649 | ) | |||||||
DISTRIBUTIONS TO COMMON STOCKHOLDERS: |
||||||||||
Net investment income |
(11,444,608 | ) | (5,275,650 | ) | ||||||
Net realized gain on investments and foreign currency |
(43,713,673 | ) | (28,548,829 | ) | ||||||
Return of capital |
| (18,288,444 | ) | |||||||
Total distributions to Common Stockholders |
(55,158,281 | ) | (52,112,923 | ) | ||||||
CAPITAL STOCK TRANSACTIONS: |
||||||||||
Reinvestment of distributions to Common Stockholders |
27,494,847 | 27,070,308 | ||||||||
Total capital stock transactions |
27,494,847 | 27,070,308 | ||||||||
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON STOCKHOLDERS |
115,786,623 | (139,239,264 | ) | |||||||
NET ASSETS APPLICABLE TO COMMON STOCKHOLDERS: |
||||||||||
Beginning of year |
966,639,873 | 1,105,879,137 | ||||||||
End of year (including undistributed net investment income (loss) of $2,818,184 at 12/31/12 and |
||||||||||
$2,529,467 at 12/31/11) |
$ | 1,082,426,496 | $ | 966,639,873 |
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. | 2012 Annual Report to Stockholders | 27 |
Royce Value Trust | |
Statement of Cash Flows |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||
Net increase (decrease) in net assets from investment operations |
$ | 154,807,552 | |||
Adjustments to reconcile net increase (decrease) in net assets from operations to net cash provided by operating activities: |
|||||
Purchases of long-term investments |
(297,587,829 | ) | |||
Proceeds from sales and maturities of long-term investments |
381,488,198 | ||||
Net purchases, sales and maturities of short-term investments |
9,436,000 | ||||
Net (increase) decrease in dividends and interest receivable and other assets |
228,801 | ||||
Net increase (decrease) in interest expense payable, accrued expenses and other liabilities |
(28,453 | ) | |||
Net change in unrealized appreciation (depreciation) on investments |
(75,703,358 | ) | |||
Net realized gain on investments and foreign currency |
(62,897,553 | ) | |||
Cash provided by operating activities |
109,743,358 | ||||
CASH FLOW FROM FINANCING ACTIVITIES: |
|||||
Net increase (decrease) in revolving credit agreement |
150,000,000 | ||||
Liquidation of Preferred Stock |
(220,000,000 | ) | |||
Distributions paid to Preferred Stockholders |
(11,645,944 | ) | |||
Distributions paid to Common Stockholders |
(55,158,281 | ) | |||
Reinvestment of distributions to Common Stockholders |
27,494,847 | ||||
Cash used for financing activities |
(109,309,378 | ) | |||
INCREASE (DECREASE) IN CASH: |
433,980 | ||||
Cash and foreign currency at beginning of year |
157,955 | ||||
Cash and foreign currency at end of year |
$ | 591,935 |
28 | 2012 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 Funds performance for the periods presented.
Years ended December 31, | |||||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 14.18 | $ | 16.73 | $ | 12.87 | $ | 9.37 | $ | 19.74 | |||||||||||||||
INVESTMENT OPERATIONS: | |||||||||||||||||||||||||
Net investment income (loss) |
0.23 | 0.10 | 0.24 | 0.17 | 0.14 | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency |
2.02 | (1.62 | ) | 3.85 | 3.87 | (8.50 | ) | ||||||||||||||||||
Total investment operations |
2.25 | (1.52 | ) | 4.09 | 4.04 | (8.36 | ) | ||||||||||||||||||
DISTRIBUTIONS TO PREFERRED STOCKHOLDERS: | |||||||||||||||||||||||||
Net investment income |
(0.04 | ) | (0.03 | ) | (0.20 | ) | (0.18 | ) | (0.01 | ) | |||||||||||||||
Net realized gain on investments and foreign currency |
(0.13 | ) | (0.16 | ) | | | (0.20 | ) | |||||||||||||||||
Return of capital |
| | | (0.02 | ) | | |||||||||||||||||||
Total distributions to Preferred Stockholders |
(0.17 | ) | (0.19 | ) | (0.20 | ) | (0.20 | ) | (0.21 | ) | |||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON STOCKHOLDERS FROM INVESTMENT OPERATIONS |
2.08 | (1.71 | ) | 3.89 | 3.84 | (8.57 | ) | ||||||||||||||||||
DISTRIBUTIONS TO COMMON STOCKHOLDERS: | |||||||||||||||||||||||||
Net investment income |
(0.17 | ) | (0.08 | ) | (0.03 | ) | | (0.06 | ) | ||||||||||||||||
Net realized gain on investments and foreign currency |
(0.63 | ) | (0.43 | ) | | | (1.18 | ) | |||||||||||||||||
Return of capital |
| (0.27 | ) | | (0.32 | ) | (0.48 | ) | |||||||||||||||||
Total distributions to Common Stockholders |
(0.80 | ) | (0.78 | ) | (0.03 | ) | (0.32 | ) | (1.72 | ) | |||||||||||||||
CAPITAL STOCK TRANSACTIONS: | |||||||||||||||||||||||||
Effect of reinvestment of distributions by Common Stockholders |
(0.06 | ) | (0.06 | ) | (0.00 | ) | (0.02 | ) | (0.08 | ) | |||||||||||||||
Total capital stock transactions |
(0.06 | ) | (0.06 | ) | (0.00 | ) | (0.02 | ) | (0.08 | ) | |||||||||||||||
NET ASSET VALUE, END OF PERIOD | $ | 15.40 | $ | 14.18 | $ | 16.73 | $ | 12.87 | $ | 9.37 | |||||||||||||||
MARKET VALUE, END OF PERIOD | $ | 13.42 | $ | 12.27 | $ | 14.54 | $ | 10.79 | $ | 8.39 | |||||||||||||||
TOTAL RETURN:1 | |||||||||||||||||||||||||
Market Value | 16.22 | % | (10.46 | )% | 35.05 | % | 35.39 | % | (48.27 | )% | |||||||||||||||
Net Asset Value | 15.41 | % | (10.06 | )% | 30.27 | % | 44.59 | % | (45.62 | )% | |||||||||||||||
RATIOS BASED ON AVERAGE NET ASSETS APPLICABLE TO |
|||||||||||||||||||||||||
COMMON STOCKHOLDERS: |
|||||||||||||||||||||||||
Investment advisory fee expense 2 |
0.56 | % | 0.86 | % | 0.11 | % | 0.00 | % | 1.27 | % | |||||||||||||||
Other operating expenses |
0.15 | % | 0.12 | % | 0.12 | % | 0.16 | % | 0.12 | % | |||||||||||||||
Total expenses (net) 3 |
0.71 | % | 0.98 | % | 0.23 | % | 0.16 | % | 1.39 | % | |||||||||||||||
Expenses net of fee waivers and excluding interest expense |
0.68 | % | 0.98 | % | 0.23 | % | 0.16 | % | 1.39 | % | |||||||||||||||
Expenses prior to fee waivers and balance credits |
0.71 | % | 0.98 | % | 0.23 | % | 0.16 | % | 1.39 | % | |||||||||||||||
Expenses prior to fee waivers |
0.71 | % | 0.98 | % | 0.23 | % | 0.16 | % | 1.39 | % | |||||||||||||||
Net investment income (loss) |
1.57 | % | 0.63 | % | 1.69 | % | 1.66 | % | 0.94 | % | |||||||||||||||
SUPPLEMENTAL DATA: |
|||||||||||||||||||||||||
Net Assets Applicable to Common Stockholders, |
|||||||||||||||||||||||||
End of Period (in thousands) |
$ | 1,082,426 | $ | 966,640 | $ | 1,105,879 | $ | 849,777 | $ | 603,234 | |||||||||||||||
Liquidation Value of Preferred Stock, | |||||||||||||||||||||||||
End of Period (in thousands) |
$ | 220,000 | $ | 220,000 | $ | 220,000 | $ | 220,000 | |||||||||||||||||
Portfolio Turnover Rate |
25 | % | 26 | % | 30 | % | 31 | % | 25 | % | |||||||||||||||
PREFERRED STOCK: |
|||||||||||||||||||||||||
Total shares outstanding |
8,800,000 | 8,800,000 | 8,800,000 | 8,800,000 | |||||||||||||||||||||
Asset coverage per share |
$ | 134.88 | $ | 150.67 | $ | 121.57 | $ | 93.55 | |||||||||||||||||
Liquidation preference per share |
$ | 25.00 | $ | 25.00 | $ | 25.00 | $ | 25.00 | |||||||||||||||||
Average month-end market value per share |
$ | 25.37 | $ | 25.06 | $ | 23.18 | $ | 22.51 | |||||||||||||||||
REVOLVING CREDIT AGREEMENT: |
|||||||||||||||||||||||||
Asset coverage |
822 | % | |||||||||||||||||||||||
Asset coverage per $1,000 |
$ | 8,216 |
1 | The Market Value Total Return is calculated assuming a purchase of Common Stock on the opening of the first business day and a sale on the closing of the last business day of each period. Dividends and distributions are assumed for the purposes of this calculation to be reinvested at prices obtained under the Funds Distribution Reinvestment and Cash Purchase Plan. Net Asset Value Total Return is calculated on the same basis, except that the Funds net asset value is used on the purchase and sale dates instead of market value. |
2 | The investment advisory fee is calculated based on average net assets over a rolling 60-month basis, while the above ratios of investment advisory fee expenses are based on the average net assets applicable to Common Stockholders over a 12-month basis. |
3 | Expense ratios based on total average net assets including liquidation value of Preferred Stock were 0.60%, 0.82%, 0.18%, 0.12% and 1.13% for the years ended December 31, 2012, 2011, 2010, 2009 and 2008, respectively. |
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. | 2012 Annual Report to Stockholders | 29 |
Royce Value Trust | |
Notes to Financial Statements |
Summary of Significant Accounting Policies:
Royce Value
Trust, Inc. (the "Fund"), was incorporated under the laws of the State of Maryland
on July 1, 1986, as a diversified closed-end investment company. 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.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Common Stocks | $ | 892,590,687 | $ | 251,893,592 | $ | 263,067 | $ | 1,144,747,346 | ||||||||||||
Preferred Stocks | | | 1,504,800 | 1,504,800 | ||||||||||||||||
Cash Equivalents | | 74,647,000 | | 74,647,000 |
Realized and Unrealized | ||||||||||||||||||||
Balance as of 12/31/11 | Sales | Gain (Loss) 1 | Balance as of 12/31/12 | |||||||||||||||||
Common Stocks | $ | 1,701,029 | $ | 456,781 | $ | (981,181 | ) | $ | 263,067 | |||||||||||
Preferred Stocks | 1,278,090 | | 226,710 | 1,504,800 |
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. |
30 | 2012 Annual Report to Stockholders |
Royce Value Trust | |
Notes to Financial Statements (continued) |
2012 Annual Report to Stockholders | 31 |
Royce Value Trust | |
Notes to Financial Statements (continued) |
32 | 2012 Annual Report to Stockholders |
Royce Value Trust | |
Notes to Financial Statements (continued) |
Distributions to Stockholders: | |||||||||||||||||||||||||
The tax character of distributions paid to common stockholders | The tax character of distributions paid to preferred stockholders | ||||||||||||||||||||||||
during 2012 and 2011 was as follows: | during 2012 and 2011 was as follows: | ||||||||||||||||||||||||
Distributions paid from: | 2012 | 2011 | Distributions paid from: | 2012 | 2011 | ||||||||||||||||||||
Ordinary income | $ | 17,311,826 | $ | 6,285,946 | Ordinary income | $ | 3,655,160 | $ | 2,412,205 | ||||||||||||||||
Long-term capital gain | 37,846,455 | 27,538,533 | Long-term capital gain | 7,990,784 | 10,567,795 | ||||||||||||||||||||
Return of capital | | 18,288,444 | $ | 11,645,944 | $ | 12,980,000 | |||||||||||||||||||
$ | 55,158,281 | $ | 52,112,923 | ||||||||||||||||||||||
As of December 31, 2012, the tax basis components of distributable earnings included in stockholders equity were as follows: |
Net unrealized appreciation (depreciation) | $ | 248,906,706 | ||||
Undistributed ordinary income | 2,542,673 | |||||
Undistributed capital gains | 10,608,235 | |||||
$ | 262,057,614 | |||||
Undistributed Net | Accumulated Net | Paid-in | |||||
Investment Income | Realized Gain (Loss) | Capital | |||||
$(2,057,417) | $2,101,976 | $(44,559) | |||||
Shares | Market Value | Cost of | Cost of | Realized | Dividend | Shares | Market Value | |||||||||
Affiliated Company | 12/31/11 | 12/31/11 | Purchases | Sales | Gain (Loss) | Income | 12/31/12 | 12/31/12 | ||||||||
Timberland Bancorp | 444,200 | $1,710,170 | | | | | 444,200 | $3,082,748 | ||||||||
$1,710,170 | $3,082,748 |
2012 Annual Report to Stockholders | 33 |
Royce Value Trust | |
Report of Independent Registered Public Accounting Firm |
34 | 2012 Annual Report to Stockholders |
Royce Micro-Cap Trust | December 31, 2012 |
Schedule of Investments |
SHARES | VALUE | |||||
COMMON STOCKS 109.3% | ||||||
Consumer Discretionary 10.4% | ||||||
Auto Components - 1.7% |
||||||
China XD Plastics 1 |
102,400 | $ | 393,216 | |||
China Zenix Auto International ADR |
50,000 | 149,500 | ||||
Drew Industries 2 |
109,900 | 3,544,275 | ||||
Fuel Systems Solutions 1 |
76,000 | 1,117,200 | ||||
Spartan Motors |
41,000 | 202,130 | ||||
5,406,321 | ||||||
Distributors - 0.4% |
||||||
Weyco Group |
48,000 | 1,121,280 | ||||
Diversified Consumer Services - 0.1% |
||||||
Lincoln Educational Services |
64,000 | 357,760 | ||||
Spectrum Group International 1,3 |
6,925 | 11,773 | ||||
369,533 | ||||||
Household Durables - 3.1% |
||||||
Cavco Industries 1 |
3,091 | 154,488 | ||||
Ethan Allen Interiors 2 |
81,600 | 2,097,936 | ||||
Flexsteel Industries |
172,500 | 3,700,125 | ||||
Koss Corporation |
73,400 | 353,054 | ||||
Natuzzi ADR 1 |
409,800 | 786,816 | ||||
Skullcandy 1 |
29,700 | 231,363 | ||||
Universal Electronics 1 |
137,400 | 2,658,690 | ||||
9,982,472 | ||||||
Internet & Catalog Retail - 0.1% |
||||||
Geeknet 1 |
1,500 | 24,150 | ||||
U.S. Auto Parts Network 1 |
140,900 | 257,847 | ||||
281,997 | ||||||
Leisure Equipment & Products - 0.1% |
||||||
Leapfrog Enterprises Cl. A 1,2 |
32,800 | 283,064 | ||||
Sturm, Ruger & Co. 2 |
3,200 | 145,280 | ||||
428,344 | ||||||
Media - 0.6% |
||||||
Rentrak Corporation 1 |
101,400 | 1,976,286 | ||||
Specialty Retail - 2.7% |
||||||
Americas Car-Mart 1,2,4 |
92,800 | 3,760,256 | ||||
Lewis Group |
57,000 | 464,947 | ||||
Oriental Watch Holdings |
372,400 | 131,119 | ||||
Shoe Carnival 2 |
30,728 | 629,617 | ||||
Stage Stores 2 |
14,600 | 361,788 | ||||
Stein Mart 2 |
178,900 | 1,348,906 | ||||
Systemax 2 |
84,000 | 810,600 | ||||
West Marine 1 |
86,000 | 924,500 | ||||
Wet Seal (The) Cl. A 1 |
87,679 | 241,994 | ||||
8,673,727 | ||||||
Textiles, Apparel & Luxury Goods - 1.6% |
||||||
G-III Apparel Group 1,2 |
8,100 | 277,263 | ||||
J.G. Boswell Company 3 |
2,490 | 2,031,815 | ||||
K-Swiss Cl. A 1 |
72,400 | 243,264 | ||||
Marimekko |
25,300 | 477,940 | ||||
Movado Group 2 |
49,274 | 1,511,726 | ||||
True Religion Apparel 2 |
19,300 | 490,606 | ||||
5,032,614 | ||||||
Total (Cost $24,563,431) |
33,272,574 | |||||
Consumer Staples 3.2% |
||||||
Food & Staples Retailing - 0.5% |
||||||
Arden Group Cl. A |
16,000 | 1,439,520 | ||||
Food Products - 2.5% |
||||||
Asian Citrus Holdings |
1,060,000 | 504,296 | ||||
Calavo Growers 2 |
26,200 | 660,502 | ||||
Farmer Bros. 1 |
41,400 | 597,402 | ||||
Griffin Land & Nurseries |
70,274 | 1,897,398 | ||||
Origin Agritech 1 |
121,488 | 168,868 | ||||
Seneca Foods Cl. A 1,2 |
51,400 | 1,562,560 | ||||
Seneca Foods Cl. B 1 |
42,500 | 1,274,575 | ||||
Waterloo Investment Holdings 1,5 |
806,207 | 117,867 | ||||
Westway Group |
195,000 | 1,300,650 | ||||
8,084,118 | ||||||
Personal Products - 0.2% |
||||||
Inter Parfums 2 |
33,900 | 659,694 | ||||
Total (Cost $8,520,373) |
10,183,332 | |||||
Energy 4.1% |
||||||
Energy Equipment & Services - 3.0% |
||||||
Dawson Geophysical 1 |
53,213 | 1,403,759 | ||||
Geospace Technologies 1,2 |
14,260 | 1,267,286 | ||||
Global Geophysical Services 1 |
35,000 | 134,750 | ||||
Gulf Island Fabrication |
29,116 | 699,658 | ||||
Heckmann Corporation 1,2,4 |
200,000 | 806,000 | ||||
Lamprell |
202,400 | 308,768 | ||||
Matrix Service 1,2 |
50,600 | 581,900 | ||||
North American Energy Partners 1 |
50,000 | 170,000 | ||||
Pason Systems |
139,200 | 2,400,000 | ||||
Pioneer Energy Services 1,2 |
57,500 | 417,450 | ||||
Tesco Corporation 1,2 |
50,000 | 569,500 | ||||
Willbros Group 1 |
131,100 | 702,696 | ||||
9,461,767 | ||||||
Oil, Gas & Consumable Fuels - 1.1% |
||||||
Approach Resources 1,2 |
12,000 | 300,120 | ||||
Resolute Energy 1,2 |
102,100 | 830,073 | ||||
Sprott Resource |
172,600 | 754,811 | ||||
VAALCO Energy 1,2 |
88,600 | 766,390 | ||||
Warren Resources 1 |
290,000 | 814,900 | ||||
3,466,294 | ||||||
Total (Cost $10,191,829) |
12,928,061 | |||||
Financials 17.8% |
||||||
Capital Markets - 6.3% |
||||||
ASA Gold and Precious Metals |
45,000 | 968,850 | ||||
Cowen Group 1 |
600,600 | 1,471,470 | ||||
Diamond Hill Investment Group |
34,479 | 2,339,745 | ||||
Duff & Phelps Cl. A 2 |
93,000 | 1,452,660 | ||||
FBR & Co. 1 |
215,000 | 832,050 |
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. | 2012 Annual Report to Stockholders | 35 |
Royce Micro-Cap Trust | |
Schedule of Investments |
SHARES | VALUE | |||||
Financials (continued) | ||||||
Capital Markets (continued) | ||||||
Fiera Capital |
78,000 | $ | 584,196 | |||
INTL FCStone 1,2 |
26,310 | 458,057 | ||||
JZ Capital Partners |
373,999 | 2,685,432 | ||||
MVC Capital |
151,200 | 1,837,080 | ||||
NGP Capital Resources |
170,752 | 1,232,829 | ||||
Queen City Investments 3 |
948 | 949,934 | ||||
U.S. Global Investors Cl. A |
91,500 | 366,915 | ||||
Urbana Corporation 1 |
237,600 | 226,923 | ||||
Virtus Investment Partners 1,2,4 |
35,000 | 4,232,900 | ||||
Westwood Holdings Group 2 |
8,800 | 359,920 | ||||
19,998,961 | ||||||
Commercial Banks - 1.6% |
||||||
BCB Holdings 1 |
806,207 | 284,847 | ||||
Chemung Financial |
40,000 | 1,200,000 | ||||
Fauquier Bankshares |
140,200 | 1,668,380 | ||||
First Bancorp |
40,200 | 662,094 | ||||
Peapack-Gladstone Financial |
88,868 | 1,251,262 | ||||
5,066,583 | ||||||
Consumer Finance - 0.2% |
||||||
Regional Management 1 |
51,400 | 850,670 | ||||
Diversified Financial Services - 1.3% |
||||||
Banca Finnat Euramerica |
1,310,000 | 465,855 | ||||
Bolsa Mexicana de Valores |
300,000 | 756,597 | ||||
GAIN Capital Holdings |
25,000 | 102,250 | ||||
PICO Holdings 1,2 |
45,700 | 926,339 | ||||
RHJ International 1 |
348,000 | 1,829,420 | ||||
4,080,461 | ||||||
Insurance - 2.6% |
||||||
Hallmark Financial Services 1 |
138,000 | 1,295,820 | ||||
Independence Holding |
105,380 | 1,003,218 | ||||
National Western Life Insurance Company |
14,033 | 2,213,565 | ||||
State Auto Financial 2 |
139,264 | 2,080,604 | ||||
United Fire Group 2 |
73,603 | 1,607,490 | ||||
8,200,697 | ||||||
Real Estate Investment Trusts (REITs) - 0.5% |
||||||
BRT Realty Trust 1 |
228,681 | 1,495,574 | ||||
Real Estate Management & Development - 4.4% |
||||||
Consolidated-Tomoka Land |
62,750 | 1,945,877 | ||||
Forestar Group 1,2,4 |
143,000 | 2,478,190 | ||||
Kennedy-Wilson Holdings |
465,358 | 6,505,705 | ||||
Tejon Ranch 1,2,4 |
112,162 | 3,149,509 | ||||
ZipRealty 1 |
25,000 | 70,000 | ||||
14,149,281 | ||||||
Thrifts & Mortgage Finance - 0.9% |
||||||
Alliance Bancorp, Inc. of Pennsylvania |
41,344 | 525,069 | ||||
BofI Holding 1,2,4 |
85,562 | 2,384,613 | ||||
2,909,682 | ||||||
Total (Cost $46,331,468) |
56,751,909 | |||||
Health Care 7.7% |
||||||
Biotechnology - 1.0% |
||||||
Celsion Corporation 1 |
220,000 | 1,801,800 | ||||
Chelsea Therapeutics International 1 |
710,000 | 539,600 | ||||
Halozyme Therapeutics 1 |
81,622 | 547,684 | ||||
3SBio ADR 1 |
15,000 | 204,600 | ||||
3,093,684 | ||||||
Health Care Equipment & Supplies - 4.2% |
||||||
Allied Healthcare Products 1 |
180,029 | 473,476 | ||||
AngioDynamics 1,2 |
170,000 | 1,868,300 | ||||
Atrion Corporation |
7,557 | 1,481,172 | ||||
CryoLife |
50,573 | 315,070 | ||||
DynaVox Cl. A 1 |
20,000 | 7,400 | ||||
Exactech 1 |
111,000 | 1,881,450 | ||||
Invacare Corporation 2 |
42,500 | 692,750 | ||||
Medical Action Industries 1 |
125,250 | 336,923 | ||||
STRATEC Biomedical |
14,000 | 698,939 | ||||
Syneron Medical 1 |
69,200 | 599,964 | ||||
Theragenics Corporation 1 |
202,377 | 321,779 | ||||
Trinity Biotech ADR |
49,100 | 708,022 | ||||
Utah Medical Products |
42,300 | 1,524,915 | ||||
Young Innovations |
61,450 | 2,421,745 | ||||
13,331,905 | ||||||
Health Care Providers & Services - 1.7% |
||||||
CorVel Corporation 1,2 |
20,000 | 896,600 | ||||
Cross Country Healthcare 1 |
323,200 | 1,551,360 | ||||
Gentiva Health Services 1,2 |
23,000 | 231,150 | ||||
PDI 1 |
65,383 | 496,911 | ||||
PharMerica Corporation 1,2 |
40,000 | 569,600 | ||||
Psychemedics Corporation |
67,300 | 723,475 | ||||
U.S. Physical Therapy |
35,857 | 987,501 | ||||
5,456,597 | ||||||
Life Sciences Tools & Services - 0.3% |
||||||
Affymetrix 1 |
150,000 | 475,500 | ||||
Furiex Pharmaceuticals 1 |
23,758 | 457,579 | ||||
933,079 | ||||||
Pharmaceuticals - 0.5% |
||||||
Hi-Tech Pharmacal 2 |
44,500 | 1,556,610 | ||||
Total (Cost $21,099,889) |
24,371,875 | |||||
Industrials 27.7% |
||||||
Aerospace & Defense - 2.4% |
||||||
AeroVironment 1 |
24,900 | 541,326 | ||||
Astronics Corporation 1 |
40,844 | 934,511 | ||||
CPI Aerostructures 1 |
33,935 | 339,689 | ||||
Ducommun 1 |
78,700 | 1,272,579 | ||||
HEICO Corporation 2 |
65,625 | 2,937,375 | ||||
Innovative Solutions and Support |
177,090 | 609,189 | ||||
Kratos Defense & Security Solutions 1 |
72,324 | 363,790 | ||||
SIFCO Industries |
45,800 | 721,350 | ||||
7,719,809 | ||||||
Air Freight & Logistics - 0.6% |
||||||
Forward Air 2 |
50,700 | 1,775,007 | ||||
Pacer International 1 |
35,000 | 136,500 | ||||
1,911,507 | ||||||
36 | 2012 Annual Report to Stockholders | THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. |
December 31, 2012 | |
SHARES | VALUE | |||||