-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PNo79AEL1aSb+TB8MOdCUc2SgG6ZhDXhEUp32bkhQkYu2O3ZoL9vosvFl7IeNXfJ aSEWdrop1uT6nRI+iuUW6w== 0000949377-03-000762.txt : 20031001 0000949377-03-000762.hdr.sgml : 20031001 20031001165706 ACCESSION NUMBER: 0000949377-03-000762 CONFORMED SUBMISSION TYPE: N-CSR/A PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20021231 FILED AS OF DATE: 20031001 EFFECTIVENESS DATE: 20031001 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ROYCE VALUE TRUST INC CENTRAL INDEX KEY: 0000804116 IRS NUMBER: 133356097 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSR/A SEC ACT: 1940 Act SEC FILE NUMBER: 811-04875 FILM NUMBER: 03921318 BUSINESS ADDRESS: STREET 1: 1414 AVE OF THE AMERICAS 9TH FL CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 2123557311 MAIL ADDRESS: STREET 1: 1414 AVENUE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10019 N-CSR/A 1 royce_63414-ncsra.txt AMENDED ANNUAL REPORT UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED AMENDED REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number: 811-04875 Name of Registrant: Royce Value Trust, Inc. Address of Registrant: 1414 Avenue of the Americas New York, NY 10019 Name and address of agent for service: John E. Denneen, Esquire 1414 Avenue of the Americas New York, NY 10019 Registrant's telephone number, including area code: (212) 486-1445 Date of fiscal year end: December 31 Date of reporting period: January 1, 2002 - December 31, 2002 ITEM 1: REPORTS TO SHAREHOLDERS ROYCE VALUE TRUST, INC. - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS DECEMBER 31, 2002 - -------------------------------------------------------------------------------- COMMON STOCKS - 94.2% SHARES VALUE ------ ----- CONSUMER PRODUCTS - 7.4% Apparel and Shoes - 2.6% Jones Apparel Group (a) 81,500 $ 2,888,360 K-Swiss Cl. A 119,000 2,583,490 Nautica Enterprises (a) 85,700 952,127 Oshkosh B'Gosh Cl. A 104,300 2,925,615 Polo Ralph Lauren Cl. A (a) 150,000 3,264,000 Timberland Company Cl. A (a) 15,000 534,150 Weyco Group 127,664 4,381,428 Wolverine World Wide 99,400 1,501,934 ------------ 19,031,104 ------------ Collectibles - 0.3% The Boyds Collection (a,d) 210,100 1,397,165 Enesco Group (a) 117,200 829,776 ------------ 2,226,941 ------------ Food/Beverage/Tobacco - 0.6% 800 JR Cigar (a,e) 172,400 2,241,200 Hain Celestial Group (a) 37,800 574,560 Hershey Creamery 709 1,311,650 ------------ 4,127,410 ------------ Home Furnishing/Appliances - 1.0% Bassett Furniture Industries 116,675 1,670,786 Falcon Products (a) 377,000 1,526,850 La-Z-Boy (d) 68,200 1,635,436 Lifetime Hoan 295,327 1,408,710 Natuzzi ADR (b) 62,200 631,952 ------------ 6,873,734 ------------ Publishing - 0.6% Marvel Enterprises (a) 304,400 2,733,512 Scholastic Corporation (a) 35,000 1,258,250 ------------ 3,991,762 ------------ Sports and Recreation - 1.2% Callaway Golf 35,000 463,750 Coachmen Industries 67,700 1,069,660 Fleetwood Enterprises (a,d) 234,300 1,839,255 Monaco Coach (a) 123,950 2,051,372 Sturm, Ruger & Co. 258,400 2,472,888 Thor Industries (d) 22,100 760,903 ------------ 8,657,828 ------------ Other Consumer Products - 1.1% Burnham Corporation Cl. B 18,000 648,000 Fossil (a) 15,000 305,100 Lazare Kaplan International (a) 103,600 563,584 Matthews International Cl. A 196,000 4,376,876 Oakley (a) 175,000 1,797,250 Scotts (The) Cl. A (a) 10,000 490,400 ------------ 8,181,210 ------------ TOTAL (Cost $39,087,482) 53,089,989 ============ CONSUMER SERVICES - 5.4% Leisure/Entertainment - 0.8% Ascent Media Group Cl. A (a) 380,900 426,608 Corus Entertainment Cl. B (a) 22,000 262,900 Hasbro 50,000 577,500 Hearst-Argyle Television (a) 11,000 265,210 +Magna Entertainment Cl. A (a,d) 140,800 872,960 Shuffle Master (a,d) 15,000 286,650 Ticketmaster Cl. B (a) 121,200 2,571,864 +TiVo (a,d) 70,000 366,100 ------------ 5,629,792 ------------ Restaurants/Lodgings - 1.0% +Benihana Cl. A (a,d) 2,500 33,750 Four Seasons Hotels 80,000 2,260,000 IHOP Corporation (a) 161,700 3,880,800 Prime Hospitality (a) 106,100 864,715 Ryan's Family Steak Houses (a) 40,900 464,215 ------------ 7,503,480 ------------ Retail Stores - 2.5% Big Lots (a) 307,200 4,064,256 Charming Shoppes (a,d) 753,400 3,149,212 Claire's Stores 127,700 2,818,339 PAYLESS SHOESOURCE (a) 93,200 4,797,004 Stein Mart (a) 192,800 1,176,080 Urban Outfitters (a) 83,800 1,975,166 ------------ 17,980,057 ------------ Other Consumer Services - 1.1% ITT Educational Services (a) 120,000 2,826,000 SOTHEBY'S HOLDINGS CL. A (a) 500,200 4,501,800 Strayer Education 10,000 575,000 ------------ 7,902,800 ------------ TOTAL (Cost $39,910,757) 39,016,129 ============ FINANCIAL INTERMEDIARIES - 10.0% Banking - 2.2% BOK Financial (a) 121,904 3,948,471 Farmers & Merchants Bank of Long Beach 1,266 4,000,560 First National Bank Alaska 2,130 2,886,150 Mechanics Bank 200 3,320,000 Oriental Financial Group 63,800 1,568,204 ------------ 15,723,385 ------------ Insurance - 7.4% Argonaut Group 187,000 2,758,250 Erie Indemnity Company Cl. A (d) 107,900 3,912,454 Everest Re Group 25,300 1,399,090 Fidelity National Financial 13,275 435,818 First American 31,700 703,740 Leucadia National 57,900 2,160,249 Markel Corporation (a) 4,200 863,100 NYMAGIC (a) 60,200 1,170,890 Navigators Group (a) 83,200 1,909,440 +PICO Holdings (a) 151,100 2,029,273 PMA Capital Cl. A (d) 241,700 3,463,561 PXRE Group 176,551 4,325,499 The Phoenix Companies 81,900 622,440 PROASSURANCE (a) 430,170 9,033,570 RLI 118,724 3,312,400 Reinsurance Group of America (d) 30,000 812,400 Trenwick Group (d) 212,260 152,827 Wesco Financial 11,990 3,716,301 WHITE MOUNTAINS INSURANCE GROUP (d) 25,600 8,268,800 Zenith National Insurance 106,900 2,514,288 ------------ 53,564,390 ------------ Securities Brokers - 0.4% E*TRADE Group (a) 575,000 2,794,500 ------------ TOTAL (Cost $48,682,808) 72,082,275 ============ FINANCIAL SERVICES - 6.3% Information and Processing - 2.0% +Advent Software (a,d) 33,000 449,790 BARRA (a,d) 42,200 1,279,926 eFunds Corporation (a) 177,675 1,618,619 +FactSet Research Systems (d) 140,000 3,957,800 26 ROYCE VALUE TRUST, INC. - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS DECEMBER 31, 2002 - -------------------------------------------------------------------------------- SHARES VALUE ------ ----- FINANCIAL SERVICES (CONTINUED) Information and Processing (continued) Fair, Isaac and Co. 5,190 $ 221,613 Global Payments 61,500 1,968,615 Moody's Corporation 50,000 2,064,500 National Processing (a) 20,000 321,000 SEI Investments 93,200 2,533,176 ------------ 14,415,039 ------------ Insurance Brokers - 1.4% Brown & Brown 20,000 646,400 Crawford & Co. Cl. A 297,350 1,219,135 Crawford & Co. Cl. B 75,300 376,500 Gallagher (Arthur J.) & Company 106,200 3,120,156 HILB, ROGAL & HAMILTON 115,350 4,717,815 ------------ 10,080,006 ------------ Investment Management - 2.7% Affiliated Managers Group (a,d) 60,000 3,018,000 Alliance Capital Management Holding L.P. (d) 139,000 4,309,000 BKF Capital Group (a) 94,000 1,659,100 BlackRock Cl. A (a) 35,000 1,379,000 Eaton Vance (d) 80,200 2,265,650 Federated Investors Cl. B 15,000 380,550 John Nuveen Company Cl. A 119,200 3,021,720 +Neuberger Berman 105,000 3,516,450 ------------ 19,549,470 ------------ Other Financial Services - 0.2% PRG-Schultz International (a) 123,800 1,101,820 ------------ TOTAL (Cost $33,842,910) 45,146,335 ============ HEALTH - 8.3% Commercial Services - 1.6% IDEXX Laboratories (a) 104,100 3,466,530 PAREXEL International (a) 277,700 3,051,923 Pharmaceutical Product Development (a) 10,000 292,700 Quintiles Transnational (a) 180,300 2,181,630 Sybron Dental Specialties (a) 21,000 311,850 The TriZetto Group (a) 190,200 1,167,828 Young Innovations (a) 57,550 1,339,188 ------------ 11,811,649 ------------ Drugs and Biotech - 2.1% Abgenix (a) 38,000 280,060 Affymetrix (a) 86,600 1,982,274 +Albany Molecular Research (a,d) 40,000 591,640 Antigenics (a,d) 38,500 394,240 Applera Corporation- Celera Genomics Group (a,d) 199,200 1,902,360 Biopure Corporation Cl. A (a,d) 43,200 160,704 BioSource International (a) 1,600 9,582 Celgene Corporation (a) 40,000 858,800 Cerus Corporation (a,d) 21,700 466,550 Chiron Corporation (a,d) 21,800 819,680 Gene Logic (a) 308,100 1,937,949 Genzyme Corporation - General Division (a) 28,000 827,960 IDEC Pharmaceuticals (a) 28,100 932,077 Lexicon Genetics (a) 256,200 1,211,826 Millennium Pharmaceuticals (a) 24,000 190,560 Perrigo (a,d) 169,900 2,064,285 Shire Pharmaceuticals Group ADR (a,b,d) 20,853 393,913 ------------ 15,024,460 ------------ Health Services - 0.9% Covance (a) 132,700 3,263,093 Gentiva Health Services (a) 30,150 265,621 Health Management Associates Cl. A 27,400 490,460 Lincare Holdings (a) 24,600 777,852 Manor Care (a) 38,300 712,763 MedQuist (a) 73,893 1,497,072 ------------ 7,006,861 ------------ Personal Care - 0.6% Ocular Sciences (a,d) 177,500 2,754,800 Regis 57,200 1,486,628 ------------ 4,241,428 ------------ Surgical Products and Devices - 3.1% ARROW INTERNATIONAL (d) 180,600 7,345,002 CONMED (a) 38,500 754,215 Datascope 37,000 917,637 Diagnostic Products Corporation 25,000 965,500 Haemonetics (a,d) 92,900 1,993,634 Invacare 100,000 3,330,000 Novoste (a,d) 66,500 480,130 STERIS (a) 48,600 1,178,550 Varian Medical Systems (a) 75,800 3,759,680 Zoll Medical (a) 20,200 720,534 ------------ 21,444,882 ------------ TOTAL (Cost $54,015,112) 59,529,280 ============ INDUSTRIAL PRODUCTS - 14.1% Building Systems and Components - 1.2% Decker Manufacturing 6,022 218,298 Preformed Line Products Company 131,600 2,193,772 SIMPSON MANUFACTURING (a) 190,400 6,264,160 ------------ 8,676,230 ------------ Construction Materials - 1.9% ASH GROVE CEMENT COMPANY CL. B 50,518 6,377,897 FLORIDA ROCK INDUSTRIES 158,800 6,042,340 Oregon Steel Mills (a) 247,900 996,558 ------------ 13,416,795 ------------ Industrial Components - 1.5% Bel Fuse Cl. A (a) 6,300 114,030 Belden (d) 47,800 727,516 Donaldson Company 26,000 936,000 Kaydon Corporation 161,200 3,419,052 Penn Engineering & Manufacturing 251,600 2,679,540 Penn Engineering & Manufacturing Cl. A 77,600 869,120 PerkinElmer 135,000 1,113,750 Powell Industries (a) 32,400 553,360 Woodhead Industries 45,400 513,020 ------------ 10,925,388 ------------ Machinery - 3.4% COHERENT (a) 233,700 4,662,315 Federal Signal (d) 58,600 1,138,012 Graco 26,550 760,658 LINCOLN ELECTRIC HOLDINGS 237,880 5,506,922 National Instruments (a,d) 41,100 1,335,339 Nordson Corporation 172,200 4,275,726 Oshkosh Truck 5,000 307,500 PAXAR (a) 175,100 2,582,725 Woodward Governor 83,600 3,636,600 ------------ 24,205,797 ------------ Paper and Packaging - 0.4% Peak International (a) 408,400 1,547,836 Sealed Air (a) 34,000 1,268,200 ------------ 2,816,036 ------------ 27 ROYCE VALUE TRUST, INC. - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS DECEMBER 31, 2002 - -------------------------------------------------------------------------------- SHARES VALUE ------ ----- INDUSTRIAL PRODUCTS (CONTINUED) Pumps, Valves and Bearings - 0.8% Baldor Electric (d) 62,900 $ 1,242,275 ConBraCo Industries (a) 7,630 572,250 Denison International ADR (a,b) 89,400 1,430,400 Franklin Electric 23,600 1,133,036 NN 127,100 1,269,729 ------------ 5,647,690 ------------ Specialty Chemicals and Materials - 1.2% Arch Chemicals 38,200 697,150 CFC International (a) 123,500 549,575 Hawkins 301,278 2,708,489 MACDERMID 211,631 4,835,768 ------------ 8,790,982 ------------ Textiles - 0.3% Fab Industries (a) 67,700 551,755 Unifi (a) 265,100 1,391,775 ------------ 1,943,530 ------------ Other Industrial Products - 3.4% BHA Group Holdings (a) 187,252 3,211,372 Brady Corporation Cl. A 79,400 2,647,990 Diebold 100,000 4,122,000 IMPCO Technologies (a,d) 15,500 72,695 KIMBALL INTERNATIONAL CL. B 334,880 4,772,040 Maxwell Technologies (a,d) 26,500 160,325 Myers Industries 52,727 564,179 Peerless Mfg. (a,c) 158,600 1,316,380 Steelcase Cl. A 82,500 904,200 Trinity Industries (d) 20,000 379,200 VELCRO INDUSTRIES 525,800 4,811,070 Wescast Industries Cl. A 56,000 1,394,400 ------------ 24,355,851 ------------ TOTAL (Cost $73,264,335) 100,778,299 ============ INDUSTRIAL SERVICES - 12.9% Advertising/Publishing - 0.8% Catalina Marketing (a,d) 60,000 1,110,000 Grey Global Group 3,817 2,332,569 Interpublic Group of Companies 180,000 2,534,400 ------------ 5,976,969 ------------ Commercial Services - 4.2% ABM Industries 119,200 1,847,600 ALLIED WASTE INDUSTRIES (a) 594,800 5,948,000 Carlisle Holdings (a) 204,900 563,475 Central Parking 89,200 1,682,312 +Convergys Corporation (a) 144,000 2,181,600 Cornell Companies (a,d) 124,400 1,119,600 iGATE Corporation (a) 139,500 365,490 Iron Mountain (a) 127,450 4,207,125 Korn/Ferry International (a) 87,400 653,752 Learning Tree International (a,d) 53,400 731,580 MPS Group (a) 294,300 1,630,422 Manpower 55,800 1,780,020 +Metro One Telecommunications (a,d) 25,000 161,250 New Horizons Worldwide (a) 136,500 539,175 On Assignment (a) 78,800 671,376 RemedyTemp Cl. A (a) 78,500 1,099,000 +Renaissance Learning (a,d) 10,000 189,000 Spherion Corporation (a) 109,000 730,300 +TRC Companies (a,d) 52,000 682,760 TMP Worldwide (a) 149,000 1,685,190 West Corporation (a) 75,000 1,245,000 ------------ 29,714,027 ------------ Engineering and Construction - 0.4% Clayton Homes (d) 25,000 304,500 EMCOR Group (a) 15,000 795,150 Jacobs Engineering Group (a,d) 20,000 712,000 McDermott International (a) 71,000 310,980 Washington Group International (a) 50,000 797,500 ------------ 2,920,130 ------------ Food/Tobacco Processors - 1.3% FARMER BROS. 22,000 6,798,000 MGP Ingredients 321,200 2,505,360 ------------ 9,303,360 ------------ Industrial Distribution - 1.0% Central Steel & Wire 3,699 1,764,423 RITCHIE BROS. AUCTIONEERS (a,d) 155,200 5,020,720 ------------ 6,785,143 ------------ Printing - 1.5% BOWNE & CO. 383,100 4,578,045 Ennis Business Forms 62,700 728,574 Moore Corporation (a) 90,700 825,370 New England Business Service 178,300 4,350,520 ------------ 10,482,509 ------------ Transportation and Logistics - 3.1% Airborne 100,000 1,483,000 AirNet Systems (a) 219,000 1,077,480 Atlas Air Worldwide Holdings (a,d) 165,000 249,150 C. H. Robinson Worldwide 40,000 1,248,000 CNF 62,600 2,080,824 Continental Airlines Cl. B (a,d) 150,000 1,087,500 EGL (a) 198,525 2,828,981 +Forward Air (a) 95,000 1,843,950 Frozen Food Express Industries (a) 306,635 796,331 Hub Group Cl. A (a) 77,000 369,600 Landstar System (a,d) 35,800 2,089,288 Patriot Transportation Holding (a) 136,300 3,775,510 Pittston Brink's Group 137,278 2,536,897 UTI Worldwide (d) 45,000 1,181,250 ------------ 22,647,761 ------------ Other Industrial Services - 0.6% Landauer 117,900 4,097,025 Republic Services (a) 18,600 390,228 ------------ 4,487,253 ------------ TOTAL (Cost $81,661,251) 92,317,152 ============ NATURAL RESOURCES - 6.4% Energy Services - 2.4% Carbo Ceramics 105,600 3,558,720 ENSCO International 6,443 189,746 Global Industries (a) 119,500 498,315 Helmerich & Payne 98,400 2,746,344 Input/Output (a) 540,100 2,295,425 Precision Drilling (a) 37,500 1,220,250 Tidewater 21,600 671,760 +Universal Compression Holdings (a) 115,000 2,199,950 Willbros Group (a) 460,600 3,786,132 ------------ 17,166,642 ------------ 28 ROYCE VALUE TRUST, INC. - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS DECEMBER 31, 2002 - -------------------------------------------------------------------------------- SHARES VALUE ------ ----- NATURAL RESOURCES (CONTINUED) Oil and Gas - 2.0% Tom Brown (a) 76,000 $ 1,907,600 +Cimarex Energy (a) 138,170 2,473,243 DENBURY RESOURCES (a) 402,600 4,549,380 EOG Resources (d) 5,000 199,600 Holly Corporation 20,000 437,000 Husky Energy 75,000 781,952 PetroCorp (a) 155,400 1,592,850 3TEC Energy (a) 124,200 1,762,398 Toreador Resources (a) 100,300 251,753 Vintage Petroleum 48,300 509,565 ------------ 14,465,341 ------------ Precious Metals and Mining - 0.8% AngloGold ADR (b) 111,900 3,833,694 +Glamis Gold (a,d) 70,000 793,800 Gold Fields ADR (b) 57,800 806,888 MK Gold (a) 517,900 220,108 ------------ 5,654,490 ------------ Real Estate - 1.2% Alico 52,000 1,383,200 Chelsea Property Group 55,000 1,832,050 Consolidated-Tomoka Land 13,564 261,107 Public Storage 45,000 1,453,950 Trammell Crow Company (a) 432,400 3,891,600 ------------ 8,821,907 ------------ TOTAL (Cost $36,026,788) 46,108,380 ============ TECHNOLOGY - 18.5% Aerospace/Defense - 1.2% Curtiss-Wright (d) 58,300 3,720,706 Ducommun (a) 182,300 2,889,455 Herley Industries (a) 30,000 522,240 Integral Systems (a) 74,800 1,499,740 ------------ 8,632,141 ------------ Components and Systems - 5.2% Adaptec (a) 99,500 562,175 Advanced Digital Information (a) 90,000 603,900 American Power Conversion (a,d) 231,200 3,502,680 Analogic 5,000 251,440 Cognex Corporation (a) 163,400 3,011,462 DDi Corporation (a) 20,000 4,400 Dionex (a) 96,000 2,852,160 Excel Technology (a) 168,500 3,014,465 Imation Corporation (a) 35,700 1,252,356 InFocus Corporation (a) 79,000 486,640 KEMET (a) 135,000 1,179,900 Kronos (a) 35,850 1,326,092 Newport (a,d) 102,600 1,288,656 Pemstar (a,d) 245,000 553,700 Perceptron (a) 397,400 854,410 Radiant Systems (a) 57,500 553,725 Rainbow Technologies (a) 116,900 838,173 REMEC (a) 214,200 831,096 Scitex (a) 245,700 346,437 Storage Technology (a) 90,000 1,927,800 Symbol Technologies 304,900 2,506,278 TTM Technologies (a) 280,500 928,175 TECHNITROL 285,900 4,614,426 Vishay Intertechnology (a) 73,900 826,202 Zebra Technologies Cl. A (a) 62,500 3,581,250 ------------ 37,697,998 ------------ Distribution - 2.4% Anixter International (a) 41,900 974,175 Arrow Electronics (a) 326,100 4,170,819 Avnet (a) 405,355 4,389,995 Benchmark Electronics (a,d) 45,400 1,301,164 Plexus (a) 269,600 2,367,088 Tech Data (a) 151,500 4,084,440 ------------ 17,287,681 ------------ Internet Software and Services - 0.5% CNET Networks (a) 379,400 1,028,174 CryptoLogic (a,d) 202,000 955,460 DoubleClick (a) 196,700 1,113,322 RealNetworks (a) 85,400 325,374 Vastera (a) 15,000 84,765 ------------ 3,507,095 ------------ IT Services - 3.7% American Management Systems (a) 331,900 3,979,481 Answerthink (a) 655,000 1,637,500 +BearingPoint (a) 340,000 2,346,000 CGI Group Cl. A (a,d) 106,700 466,279 Covansys Corporation (a) 251,600 945,513 DiamondCluster International Cl. A (a) 233,900 734,446 Forrester Research (a) 91,500 1,424,655 Gartner Cl. A (a) 166,000 1,527,200 Keane (a) 467,000 4,198,330 MAXIMUS (a,d) 88,000 2,296,800 Perot Systems Cl. A (a) 115,100 1,233,872 QRS Corporation (a) 57,500 379,500 Sapient Corporation (a,d) 1,099,400 2,253,770 Syntel (a) 65,300 1,371,953 Unisys Corporation (a) 215,000 2,128,500 ------------ 26,923,799 ------------ Semiconductors and Equipment - 2.2% BE Semiconductor Industries (a) 58,000 255,200 Credence Systems (a) 10,600 98,898 Cymer (a,d) 14,500 467,625 DuPont Photomasks (a) 35,000 813,750 Electroglas (a,d) 281,700 433,818 Exar (a) 87,300 1,082,520 Fairchild Semiconductor Cl. A (a) 175,000 1,874,250 Helix Technology 51,900 581,280 +Integrated Circuit Systems (a) 140,600 2,565,950 Intevac (a) 191,850 765,482 Kulicke & Soffa Industries (a,d) 105,800 605,176 Lam Research (a) 45,000 486,000 Lattice Semiconductor (a) 264,000 2,315,280 Mentor Graphics (a) 225,700 1,774,002 National Semiconductor (a) 23,200 348,232 Novellus Systems (a) 12,000 336,960 NVIDIA Corporation (a,d) 35,000 402,850 Veeco Instruments (a,d) 65,000 751,400 ------------ 15,958,673 ------------ Software - 1.8% Adobe Systems 30,000 744,030 ANSYS (a,d) 45,500 919,100 Aspen Technology (a,d) 27,100 76,693 Autodesk 251,000 3,589,300 Business Objects ADR (a,d) 25,500 382,500 29 ROYCE VALUE TRUST, INC. - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS DECEMBER 31, 2002 - -------------------------------------------------------------------------------- SHARES VALUE ------ ----- TECHNOLOGY (CONTINUED) Software (continued) JDA Software Group (a) 149,900 $ 1,448,034 MRO Software (a) 46,000 558,670 MSC.Software (a) 42,600 328,872 Macromedia (a) 61,600 656,040 Manugistics Group (a,d) 49,200 118,080 Novell (a) 90,000 300,600 Phoenix Technologies (a) 40,900 235,993 Progress Software (a) 50,500 653,975 SPSS (a) 107,500 1,503,925 Transaction Systems Architects Cl. A (a) 237,300 1,542,450 ------------ 13,058,262 ------------ Telecommunications - 1.5% ADC Telecommunications (a) 113,000 236,170 +ADTRAN (a,d) 40,000 1,316,000 Allegiance Telecom (a,d) 2,516,700 1,686,189 +Andrew Corporation (a,d) 30,000 308,400 Globecomm Systems (a) 243,700 913,875 IDT Corporation (a) 25,000 432,250 IDT Corporation Cl. B (a) 40,000 620,400 Inet Technologies (a) 65,000 396,500 Level 3 Communications (a,d) 488,400 2,393,160 Liberty Satellite & Technology Cl. A (a,d) 116,530 308,804 PECO II (a) 93,600 59,904 Plantronics (a) 55,100 833,663 Time Warner Telecom Cl. A (a,d) 242,000 510,620 +Tollgrade Communications (a,d) 35,500 416,415 ------------ 10,432,350 ------------ TOTAL (Cost $161,093,372) 133,497,999 ============ MISCELLANEOUS - 4.9% TOTAL (Cost $39,674,965) 35,529,837 ============ TOTAL COMMON STOCKS (Cost $607,259,780) 677,095,675 ============ PREFERRED STOCKS - 0.1% +Aristotle Corporation 11.00% Conv. 4,800 38,160 SVB Capital I 8.25% 20,000 484,000 ------------ TOTAL PREFERRED STOCKS (Cost $531,005) 522,160 ============ PRINCIPAL AMOUNT --------- CORPORATE BONDS - 0.2% Dixie Group 7.00% Conv. Sub. Deb. due 5/15/12 $ 584,000 297,840 Richardson Electronics 7.25% (c) Conv. Sub. Deb. due 12/15/06 1,319,000 1,055,200 ------------ TOTAL CORPORATE BONDS (Cost $1,555,818) 1,353,040 ============ U.S. TREASURY OBLIGATIONS - 4.3% U.S. Treasury Notes 4.25%, due 3/31/03 25,000,000 25,185,550 +7.50%, due 2/15/05 5,000,000 5,606,640 ------------ TOTAL U.S. TREASURY OBLIGATIONS (Cost $30,461,424) 30,792,190 ============ REPURCHASE AGREEMENT - 1.2% State Street Bank & Trust Company, 0.50% dated 12/31/02, due 1/2/03, maturity value $8,646,240 (collateralized by U.S. Treasury Bonds, 6.00% due 2/15/26, valued at $8,820,698) (Cost $8,646,000) 8,646,000 ============ TOTAL INVESTMENTS - 100.0% (Cost $648,454,027) 718,409,065 CASH AND OTHER ASSETS LESS LIABILITIES 2,366,558 PREFERRED STOCK (160,000,000) ------------ NET ASSETS APPLICABLE TO COMMON STOCKHOLDERS $560,775,623 ============ - -------------------------------------------------------------------------------- (a) Non-income producing. (b) American Depository Receipt. (c) At December 31, 2002, the Fund owned 5% or more of the Company's outstanding voting securities thereby making the Company an Affiliated Company as that term is defined in the Investment Company Act of 1940. (d) A portion of these securities were on loan at December 31, 2002. Total market value of loaned securities at December 31, 2002 was $23,072,285. (e) A security for which market quotations are no longer readily available represents 0.3% of investments. This security has been valued at its fair value under procedures established by the Fund's Board of Directors. + New additions in 2002. BOLD INDICATES THE FUND'S LARGEST 20 EQUITY HOLDINGS IN TERMS OF DECEMBER 31, 2002 MARKET VALUE. INCOME TAX INFORMATION: The cost of total investments for Federal income tax purposes was $652,067,259. At December 31, 2002, net unrealized appreciation for all securities was $66,341,806, consisting of aggregate gross unrealized appreciation of $170,833,078 and aggregate gross unrealized depreciation of $104,491,272. The primary differences in book and tax basis cost is the timing of the recognition of losses on securities sold and amortization of discount for book and tax purposes. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. 30 ROYCE VALUE TRUST, INC. - -------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 2002 - -------------------------------------------------------------------------------- ASSETS: Investments at value (identified cost $639,808,027) $709,763,065 Repurchase agreement (at cost and value) 8,646,000 Cash 32 Collateral from brokers on securities loaned 25,147,370 Receivable for investments sold 6,380,230 Receivable for dividends and interest 1,011,806 Prepaid expenses 23,624 - -------------------------------------------------------------------------------- Total Assets 750,972,127 - -------------------------------------------------------------------------------- LIABILITIES: Payable for collateral on securities loaned 25,147,370 Payable for investments purchased 3,821,040 Payable for investment advisory fee 802,926 Preferred dividends accrued but not yet declared 266,225 Accrued expenses 158,943 - -------------------------------------------------------------------------------- Total Liabilities 30,196,504 - -------------------------------------------------------------------------------- PREFERRED STOCK: 7.80% Cumulative Preferred Stock - $0.001 par value, $25 liquidation value per share; 2,400,000 shares outstanding 60,000,000 7.30% Tax-Advantaged Cumulative Preferred Stock - $0.001 par value, $25 liquidation value per share; 4,000,000 shares outstanding 100,000,000 - -------------------------------------------------------------------------------- Total Preferred Stock 160,000,000 - -------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON STOCKHOLDERS $560,775,623 - -------------------------------------------------------------------------------- ANALYSIS OF NET ASSETS APPLICABLE TO COMMON STOCKHOLDERS: Par value of Common Stock - $0.001 per share; 42,417,362 shares outstanding (150,000,000 shares authorized) $ 42,417 Additional paid-in capital 496,006,603 Accumulated net realized loss on investments (3,813,147) Net unrealized appreciation on investments 69,955,038 Preferred dividends accrued but not yet declared (266,224) - -------------------------------------------------------------------------------- Net Assets applicable to Common Stockholders (net asset value per share - $13.22) $560,775,623 - -------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS - -------------------------------------------------------------------------------- Year ended Year ended December 31, December 31, 2002 2001 ------------ ------------ INVESTMENT OPERATIONS: Net investment income (loss) $ (583,347) $ 2,247,245 Net realized gain on investments 62,933,497 53,961,553 Net change in unrealized appreciation on investments (156,381,089) 46,195,029 - -------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from investment operations (94,030,939) 102,403,827 - -------------------------------------------------------------------------------- DISTRIBUTIONS TO PREFERRED STOCKHOLDERS: Net investment income (581,030) (370,182) Net realized gain on investments (11,398,970) (11,609,818) - -------------------------------------------------------------------------------- Total distributions to Preferred Stockholders (11,980,000) (11,980,000) - -------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON STOCKHOLDERS RESULTING FROM INVESTMENT OPERATIONS (106,010,939) 90,423,827 - -------------------------------------------------------------------------------- DISTRIBUTIONS TO COMMON STOCKHOLDERS: Net investment income (2,981,664) (1,768,474) Net realized gain on investments (58,496,049) (55,464,014) - -------------------------------------------------------------------------------- Total distributions to Common Stockholders (61,477,713) (57,232,488) - -------------------------------------------------------------------------------- CAPITAL STOCK TRANSACTIONS: Reinvestment of distributions to Common Stockholders 39,123,307 32,687,267 - -------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON STOCKHOLDERS (128,365,345) 65,878,606 NET ASSETS APPLICABLE TO COMMON STOCKHOLDERS: Beginning of year 689,140,968 623,262,362 - -------------------------------------------------------------------------------- End of year (including undistributed net investment income of $2,116,678 in 2001) $ 560,775,623 $689,140,968 - -------------------------------------------------------------------------------- THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. 31 ROYCE VALUE TRUST, INC. - -------------------------------------------------------------------------------- STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2002 - -------------------------------------------------------------------------------- INVESTMENT INCOME: Income: Dividends $ 7,614,855 Interest 2,842,281 - -------------------------------------------------------------------------------- Total income 10,457,136 - -------------------------------------------------------------------------------- Expenses: Investment advisory fees 10,689,280 Stockholder reports 306,974 Administrative and office facilities expenses 210,877 Custody and transfer agent fees 213,265 Directors' fees 115,005 Professional fees 68,790 Other expenses 101,360 - -------------------------------------------------------------------------------- Total expenses 11,705,551 Fees waived by investment advisor (665,068) - -------------------------------------------------------------------------------- Net expenses 11,040,483 - -------------------------------------------------------------------------------- Net investment income (loss) (583,347) - -------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain on investments 62,933,497 Net change in unrealized appreciation on investments (156,381,089) - -------------------------------------------------------------------------------- Net realized and unrealized gain (loss) on investments (93,447,592) - -------------------------------------------------------------------------------- NET DECREASE IN NET ASSETS RESULTING FROM INVESTMENT OPERATIONS (94,030,939) - -------------------------------------------------------------------------------- DISTRIBUTIONS TO PREFERRED STOCKHOLDERS (11,980,000) - -------------------------------------------------------------------------------- NET DECREASE IN NET ASSETS APPLICABLE TO COMMON STOCKHOLDERS RESULTING FROM INVESTMENT OPERATIONS $(106,010,939) - -------------------------------------------------------------------------------- THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. 32 ROYCE VALUE TRUST, INC. - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- This table is presented to show selected data for a share of Common Stock outstanding throughout each period, and to assist stockholders in evaluating the Fund's performance for the periods presented.
Years ended December 31, ------------------------------------------------------------------ 2002 2001 2000 1999 1998 - ---------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $17.31 $16.56 $15.77 $15.72 $16.91 - ---------------------------------------------------------------------------------------------------------------------------------- INVESTMENT OPERATIONS: Net investment income (loss) (0.02) 0.05 0.18 0.26 0.17 Net realized and unrealized gain (loss) on investments (2.25) 2.58 2.58 1.65 0.67 - ---------------------------------------------------------------------------------------------------------------------------------- Total investment operations (2.27) 2.63 2.76 1.91 0.84 - ---------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO PREFERRED STOCKHOLDERS: Net investment income (0.01) (0.01) (0.03) (0.04) (0.03) Net realized gain on investments (0.28) (0.30) (0.30) (0.32) (0.26) - ---------------------------------------------------------------------------------------------------------------------------------- Total distributions to Preferred Stockholders (0.29) (0.31) (0.33) (0.36) (0.29) - ---------------------------------------------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON STOCKHOLDERS RESULTING FROM INVESTMENT OPERATIONS (2.56) 2.32 2.43 1.55 0.55 - ---------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO COMMON STOCKHOLDERS: Net investment income (0.07) (0.05) (0.13) (0.15) (0.16) Net realized gain on investments (1.44) (1.44) (1.35) (1.22) (1.38) - ---------------------------------------------------------------------------------------------------------------------------------- Total distributions to Common Stockholders (1.51) (1.49) (1.48) (1.37) (1.54) - ---------------------------------------------------------------------------------------------------------------------------------- CAPITAL STOCK TRANSACTIONS: Effect of reinvestment of distributions by Common Stockholders (0.02) (0.08) (0.16) (0.13) (0.09) Effect of Preferred Stock offering - - - - (0.11) - ---------------------------------------------------------------------------------------------------------------------------------- Total capital stock transactions (0.02) (0.08) (0.16) (0.13) (0.20) - ---------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $13.22 $17.31 $16.56 $15.77 $15.72 - ---------------------------------------------------------------------------------------------------------------------------------- MARKET VALUE, END OF PERIOD $13.25 $15.72 $14.438 $13.063 $13.75 - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN (a): Market Value (6.9)% 20.0% 22.7% 5.7% 1.5% Net Asset Value (15.6)% 15.2% 16.6% 11.7% 3.3% RATIOS BASED ON AVERAGE NET ASSETS APPLICABLE TO COMMON STOCKHOLDERS: Total expenses (b,c) 1.72% 1.61% 1.43% 1.39% 1.31% Management fee expense 1.56% 1.45% 1.25% 1.18% 1.10% Other operating expenses 0.16% 0.16% 0.18% 0.21% 0.21% Net investment income (loss) (0.09)% 0.35% 1.18% 1.47% 1.11% SUPPLEMENTAL DATA: Net Assets Applicable to Common Stockholders, End of Period (in thousands) $560,776 $689,141 $623,262 $552,928 $516,963 Liquidation Value of Preferred Stock, End of Period (in thousands) $160,000 $160,000 $160,000 $160,000 $160,000 Portfolio Turnover Rate 35% 30% 36% 41% 43% PREFERRED STOCK: Total shares outstanding 6,400,000 6,400,000 6,400,000 6,400,000 6,400,000 Asset coverage per share $112.62 $132.68 $122.38 $111.40 $105.78 Liquidation preference per share $25.00 $25.00 $25.00 $25.00 $25.00 Average market value per share: 7.80% Cumulative (d) $26.37 $25.70 $23.44 $24.98 $25.91 7.30% Tax-Advantaged Cumulative (d) $25.82 $25.37 $22.35 $24.24 $25.43 - ----------------------------------------------------------------------------------------------------------------------------------
(a) 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 reported. Dividends and distributions, if any, are assumed for the purposes of this calculation, to be reinvested at prices obtained under the Fund's Distribution Reinvestment and Cash Purchase Plan. Net Asset Value Total Return is calculated on the same basis, except that the Fund's net asset value is used on the purchase and sale dates instead of market value. (b) Expense ratios based on total average net assets including liquidation value of Preferred Stock were 1.38%, 1.30%, 1.12%, 1.06% and 1.06% for the periods ended December 31, 2002, 2001, 2000, 1999 and 1998, respectively. (c) Expense ratios based on average net assets applicable to Common Stockholders before waiver of fees by the investment adviser would have been 1.82%, 1.65%, 1.51%, 1.48% and 1.34% for the periods ended December 31, 2002, 2001, 2000, 1999 and 1998, respectively. (d) The average of month-end market values during the period. 33 ROYCE VALUE TRUST, INC. - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- 1. 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. VALUATION OF INVESTMENTS: Securities listed on an exchange or on the Nasdaq National Market System (NMS) are valued on the basis of the last reported sale prior to the time the valuation is made or, if no sale is reported for such day, at their bid price for exchange-listed securities and at the average of their bid and asked prices for Nasdaq NMS securities. Quotations are taken from the market where the security is primarily traded. Other over-the-counter securities for which market quotations are readily available are valued at their bid price. Securities for which market quotations are not readily available are valued at their fair value under procedures established by the Fund's Board of Directors. Bonds and other fixed income securities may be valued by reference to other securities with comparable ratings, interest rates and maturities, using established independent pricing services. INVESTMENT TRANSACTIONS AND RELATED INVESTMENT INCOME: Investment transactions are accounted for on the trade date. Dividend income is recorded on the ex-dividend date and any non-cash dividend income is recorded at the fair market value of the securities received. Interest income is recorded on the accrual basis. Realized gains and losses from investment transactions are determined on the basis of identified cost for book and tax purposes. EXPENSES: The Fund incurs direct and indirect expenses. Expenses directly attributable to the Fund are charged to the Fund's operations, while expenses applicable to more than one of the Royce Funds are allocated in an equitable manner. Allocated personnel and occupancy costs related to The Royce Funds are included in administrative and office facilities expenses. The Fund has adopted a deferred fee agreement that allows the Fund's Directors to defer the receipt of all or a portion of Directors' Fees otherwise payable. The deferred fees remain invested in certain Royce Funds until distributed in accordance with the agreement. TAXES: As a qualified regulated investment company under Subchapter M of the Internal Revenue Code, the Fund is not subject to income taxes to the extent that it distributes substantially all of its taxable income for its fiscal year. The Schedule of Investments includes information regarding income taxes under the caption "Income Tax Information". DISTRIBUTIONS: The Fund currently has a policy of paying quarterly distributions on the Fund's Common Stock. Distributions are currently being made at the annual rate of 9% of the rolling average of the prior four calendar quarter-end NAVs of the Fund's Common Stock, with the fourth quarter distribution being the greater of 2.25% of the rolling average or the distribution required by IRS regulations. Distributions to Preferred Stockholders are recorded on an accrual basis and paid quarterly. Distributions are determined in accordance with income tax regulations that may differ from accounting principles generally accepted in the United States of America. Permanent book and tax basis differences relating to stockholder distributions will result in reclassifications within the capital accounts. Undistributed net investment income may include temporary book and tax basis differences, which will reverse in a subsequent period. Any taxable income or gain remaining undistributed at fiscal year end is distributed in the following year. REPURCHASE AGREEMENTS: The Fund enters into repurchase agreements with respect to its portfolio securities solely with State Street Bank and Trust Company ("SSB&T"), the custodian of its assets. The Fund restricts repurchase agreements to maturities of no more than seven days. Securities pledged as collateral for repurchase agreements, which are held by SSB&T until maturity of the repurchase agreements, are marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest). Repurchase agreements could involve certain risks in the event of default or insolvency of SSB&T, including possible delays or restrictions upon the ability of the Fund to dispose of the underlying securities. 34 ROYCE VALUE TRUST, INC. - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) - -------------------------------------------------------------------------------- 2. SECURITIES LENDING: The Fund loans securities to qualified institutional investors for the purpose of realizing additional income. This income is included in interest income. Collateral on all securities loaned for the Fund is accepted in cash and is invested temporarily, typically, and specifically at December 31, 2002, in a registered money market fund, by the custodian. The collateral is equal to at least 100% of the current market value of the loaned securities. 3. CAPITAL STOCK: The Fund currently has two issues of Preferred Stock outstanding: 7.80% Cumulative Preferred Stock and 7.30% Tax-Advantaged Cumulative Preferred Stock. Both issues of Preferred Stock have a liquidation preference of $25.00 per share. Under the Investment Company Act of 1940, the Fund is required to maintain an asset coverage of at least 200% for the Preferred Stock. In addition, pursuant to the Rating Agency Guidelines established by Moody's, the Fund is required to maintain a certain discounted asset coverage. The Fund has met these requirements since issuing Preferred Stock. The Fund is required to allocate long-term capital gain distributions and other types of income proportionately to distributions made to holders of shares of Common Stock and Preferred Stock. To the extent that distributions are not paid from long-term capital gains, net investment income or net short-term capital gains, they will represent a return of capital. The Fund issued 2,615,641 and 2,167,201 shares of Common Stock as reinvestment of distributions by Common Stockholders for the years ended December 31, 2002 and 2001, respectively. 4. INVESTMENT ADVISORY AGREEMENT: As compensation for its services under the Investment Advisory Agreement, Royce & Associates, LLC ("Royce") receives a fee comprised of a Basic Fee ("Basic Fee") and an adjustment to the Basic Fee based on the investment performance of the Fund in relation to the investment record of the S&P 600 SmallCap Index ("S&P 600"). The Basic Fee is a monthly fee equal to 1/12 of 1% (1% on an annualized basis) of the average of the Fund's month-end net assets attributable to common stockholders plus liquidation value of Preferred Stock for the rolling 60-month period ending with such month. The Basic Fee for each month is increased or decreased at the rate of 1/12 of .05% for each percentage point that the investment performance of the Fund exceeds, or is exceeded by, the percentage change in the investment record of the S&P 600 for the performance period by more than two percentage points. The maximum increase or decrease in the Basic Fee for any month may not exceed 1/12 of .5%. Accordingly, for each month, the maximum monthly fee rate as adjusted for performance is 1/12 of 1.5% and is payable if the investment performance of the Fund exceeds the percentage change in the investment record of the S&P 600 by 12 or more percentage points for the performance period, and the minimum monthly fee rate as adjusted for performance is 1/12 of .5% and is payable if the percentage change in the investment record of the S&P 600 exceeds the investment performance of the Fund by 12 or more percentage points for the performance period. Notwithstanding the foregoing, Royce is not entitled to receive any fee for any month when the investment performance of the Fund for the rolling 36-month period ending with such month is negative. In the event that the Fund's investment performance for such a performance period is less than zero, Royce will not be required to refund to the Fund any fee earned in respect of any prior performance period. Royce has voluntarily committed to waive the portion of its investment advisory fee attributable to an issue of the Fund's Preferred Stock for any month in which the Fund's average annual NAV total return since issuance of the Preferred Stock fails to exceed the applicable Preferred Stock dividend rate. For the year ended December 31, 2002, the Fund accrued and paid Royce advisory fees totaling $10,024,212, which is net of $665,068 voluntarily waived by Royce. 5. DISTRIBUTIONS TO STOCKHOLDERS: The tax character of distributions paid to stockholders during 2002 and 2001 was as follows: --------------------------------------------------------------------- Distributions paid from: 2002 2001 ---- ---- Ordinary income $ 6,028,029 16,631,761 Long-term capital gain 67,429,684 52,580,727 ---------- ---------- $73,457,713 $69,212,488 =========== =========== --------------------------------------------------------------------- As of December 31, 2002, the tax basis components of distributable earnings included in stockholders' equity were as follows: ---------------------------------------------- Post October Loss $ (199,915) Unrealized appreciation 66,341,806 Accrued preferred distributions (266,224) ----------- $65,875,667 =========== ---------------------------------------------- 35 ROYCE VALUE TRUST, INC. - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) - -------------------------------------------------------------------------------- 6. PURCHASES AND SALES OF INVESTMENT SECURITIES: For the year ended December 31, 2002, the cost of purchases and proceeds from sales of investment securities, other than short-term securities, amounted to $290,458,749 and $274,219,404, respectively. 7. TRANSACTIONS IN SHARES OF AFFILIATED COMPANIES: An "Affiliated Company", as defined in the Investment Company Act of 1940, is a company in which a Fund owns 5% or more of the company's outstanding voting securities. The Fund effected the following transactions in shares of such companies during the year ended December 31, 2002:
- ------------------------------------------------------------------------------------------------------------------------------------ Purchases Sales ------------------- -------------------- Affiliated Company Shares Cost Shares Cost Realized Gain (Loss) Dividend Income ------------------ ------ ---- ------ ---- -------------------- --------------- Open Plan Systems -- -- 376,000 $ 927,874 $ (924,114) -- PCD 5,300 $ 2,756 482,900 2,705,721 (2,659,433) -- Patriot Transportation Holdings -- -- 30,000 558,200 100,805 -- Peerless Mfg. -- -- -- -- -- -- Richardson Electronics 10,000 106,750 190,300 1,375,899 (190,330) $22,036 Richardson Electronics 7.25% Conv. due 12/15/06 -- -- -- -- -- -- RockShox -- -- 1,141,400 537,508 (69,534) -- - ------------------------------------------------------------------------------------------------------------------------------------
8. PREFERRED STOCK PRESENTATION To reflect recent accounting guidance from the Securities and Exchange Commission, the Statement of Assets and Liabilities has been modified to present the liquidation value of Preferred Stock below Liabilities and above Net Assets Applicable to Common Stockholders. As revised, Preferred Stock is no longer included as a component of net assets of the Fund. Likewise, the Statement of Operations, the Statement of Changes in Net Assets, and the Financial Highlights have been revised to show distributions to Preferred Stockholders as a component of the net decrease in net assets applicable to Common Stockholders resulting from investment operations. These modifications do not change the amount of net assets applicable to Common Stockholders, the net asset value per share of Common Stock, or the total return per share of Common Stock. 36 ROYCE VALUE TRUST, INC. - -------------------------------------------------------------------------------- REPORT OF INDEPENDENT AUDITORS - -------------------------------------------------------------------------------- TO THE BOARD OF DIRECTORS AND STOCKHOLDERS OF ROYCE VALUE TRUST, INC. We have audited the accompanying statement of assets and liabilities of Royce Value Trust, Inc., including the schedule of investments, as of December 31, 2002, and the related statement of operations for the year then ended, and the statement of changes in net assets for the two years in the period then ended and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2002, by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above and audited by us present fairly, in all material respects, the financial position of Royce Value Trust, Inc. at December 31, 2002, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with generally accepted accounting principles. TAIT, WELLER & BAKER Philadelphia, PA January 15, 2003, except for Note 8, as to which the date is September 12, 2003. 37 ITEM 2: CODE(S) OF ETHICS - NOT APPLICABLE TO THIS AMENDED ANNUAL REPORT. ITEM 3: AUDIT COMMITTEE FINANCIAL EXPERT - NOT APPLICABLE TO THIS AMENDED ANNUAL REPORT. ITEM 4: PRINCIPAL ACCOUNTANT FEES AND SERVICES - NOT APPLICABLE TO THIS AMENDED ANNUAL REPORT. ITEM 5: AUDIT COMMITTEE OF LISTED REGISTRANTS. NOT APPLICABLE TO THIS AMENDED ANNUAL REPORT. ITEM 6: RESERVED. ITEM 7: DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES - In June 2003, in response to rules adopted by the Commission, Royce adopted written proxy voting policies and procedures (the "Proxy Voting Procedures") for itself, the Fund, and all The Royce Funds and clients accounts for which Royce is responsible for voting proxies. The Board of Directors of the Fund has delegated all proxy voting decisions to Royce. In voting proxies, Royce is guided by general fiduciary principles. Royce's goal is to act prudently, solely in the best interest of the beneficial owners of the accounts it manages. Royce attempts to consider all factors of its vote that could affect the value of the investment and will vote proxies in the manner it believes will be consistent with efforts to enhance and/or protect stockholder value. Royce personnel are responsible for monitoring receipt of all proxies and ensuring that proxies are received for all securities for which Royce has proxy voting responsibility. Royce divides proxies into "regularly recurring" and "non-regularly recurring" matters. Examples of regularly recurring matters include non-contested elections of directors and non-contested approvals of independent auditors. Regularly recurring matters are usually voted as recommended by the issuer's board of directors or management. Non-regularly recurring matters are brought to the attention of portfolio manager(s) for the applicable account(s) and, after giving consideration to advisories provided by an independent third party research firm, the portfolio manager(s) directs that such matters be voted in a way that he believes should better protect or enhance the value of the investment. If the portfolio manager determines that information relating to a proxy requires additional analysis, is missing, or is incomplete, the portfolio manager will give the proxy to an analyst or another portfolio manager for review and analysis. Under certain circumstances, Royce may vote against a proposal from the issuer's board of directors or management. Royce's portfolio managers decide these issues on a case-by-case basis. A Royce portfolio manager may, on occasion, decide to abstain from voting a proxy or a specific proxy item when such person concludes that the potential benefit of voting is outweighed by the cost or when it is not in the client's best interest to vote. In furtherance of Royce's goal to vote proxies in the best interests of its clients, Royce follows specific procedures outlined in the Proxy Voting Procedures to identify, assess and address material conflicts that may arise between Royce's interests and those of its clients before voting proxies on behalf of such clients. In the event such a material conflict of interest is identified, the proxy will be voted by Royce in accordance with the recommendation given by an independent third party research firm. ITEM 8: RESERVED. ITEM 9: CONTROLS AND PROCEDURES. (a) Disclosure Controls and Procedures. The Principal Executive and Financial Officers concluded that the Registrant's Disclosure Controls and Procedures are effective based on their evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this amended report. (b) Internal Controls. There were no significant changes in Registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. ITEM 10: EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS) Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. ROYCE VALUE TRUST, INC. BY: /s/ Charles M. Royce CHARLES M. ROYCE PRESIDENT Date: October 1, 2003 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this amended report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. ROYCE VALUE TRUST, INC. BY: /s/ Charles M. Royce CHARLES M. ROYCE PRESIDENT Date: October 1, 2003 ROYCE VALUE TRUST, INC. BY: /s/ John D. Diederich JOHN D. DIEDERICH CHIEF FINANCIAL OFFICER Date: October 1, 2003 EX-99.CERT 3 royce_63414-ex99.txt CERTIFICATION EXHIBIT 99.CERT CERTIFICATION CERTIFICATIONS -------------- I, Charles M. Royce, certify that: 1. I have reviewed this amended report on Form N-CSR of Royce Value Trust, Inc.; 2. Based on my knowledge, this amended report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this amended report; 3. Based on my knowledge, the financial statements, and other financial information included in this amended report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this amended report. Date: October 1, 2003 /s/ Charles M. Royce Charles M. Royce President CERTIFICATIONS -------------- I, John D. Diederich, certify that: 1. I have reviewed this amended report on Form N-CSR of Royce Value Trust, Inc.; 2. Based on my knowledge, this amended report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this amended report; 3. Based on my knowledge, the financial statements, and other financial information included in this amended report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this amended report. Date: October 1, 2003 /s/ John D. Diederich John D. Diederich Chief Financial Officer EX-99.906 4 royce_63414-ex99906.txt 906 CERTIFICATION EXHIBIT 99.906 CERT 906 CERTIFICATION CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 Name of Issuer: ROYCE VALUE TRUST, INC. In connection with the amended report on Form N-CSR of the above-named issuer that is accompanied by this certification, the undersigned hereby certifies, to his knowledge, that: 1. The amended report fully complies with the requirements of Section 13(a) or 15 (d) of the Securities Exchange Act of 1934; and 2. The information contained in the Amended Report fairly presents, in all materials respects, the financial condition and results of operations of the issuer. Date: October 1, 2003 /s/ Charles M. Royce Charles M. Royce President CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 Name of Issuer: ROYCE VALUE TRUST, INC. In connection with the amended report on Form N-CSR of the above-named issuer that is accompanied by this certification, the undersigned hereby certifies, to his knowledge, that: 1. The amended report fully complies with the requirements of Section 13(a) or 15 (d) of the Securities Exchange Act of 1934; and 2. The information contained in the Amended Report fairly presents, in all materials respects, the financial condition and results of operations of the issuer. Date: October 1, 2003 /s/ John D. Diederich John D. Diederich Chief Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----