-----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, RVaoBwDAztDkgCcQCBw1nbq8U0ooT7vzCSv6gRyBuFPqI7LroG9eU9O7zY4UgNyD CMsCukCYZ3dvVeZDbm0Xew== 0000949377-03-000763.txt : 20031001 0000949377-03-000763.hdr.sgml : 20031001 20031001165938 ACCESSION NUMBER: 0000949377-03-000763 CONFORMED SUBMISSION TYPE: N-CSRS/A PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030630 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-CSRS/A SEC ACT: 1940 Act SEC FILE NUMBER: 811-04875 FILM NUMBER: 03921328 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-CSRS/A 1 ncsrs-a63415.txt AMENDED SEMIANNUAL 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, 2003 - June 30, 2003 ITEM 1: REPORTS TO SHAREHOLDERS ROYCE VALUE TRUST, INC. - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS JUNE 30, 2003 (UNAUDITED) - -------------------------------------------------------------------------------- COMMON STOCKS - 91.1% SHARES VALUE ------ ----- CONSUMER PRODUCTS - 7.0% Apparel and Shoes - 2.5% Jones Apparel Group (a) 81,500 $ 2,384,690 K-Swiss Cl. A 119,000 4,107,880 Nautica Enterprises (a) 83,700 1,073,871 Oshkosh B'Gosh Cl. A 104,300 2,816,100 Polo Ralph Lauren Cl. A 150,000 3,868,500 Timberland Company Cl. A (a) 10,000 528,600 WEYCO GROUP 112,664 5,183,671 Wolverine World Wide 94,400 1,818,144 --------------- 21,781,456 --------------- Collectibles - 0.2% The Boyds Collection (a) 234,200 1,103,082 Enesco Group (a) 117,200 867,280 --------------- 1,970,362 --------------- Food/Beverage/Tobacco - 0.6% 800 JR Cigar (a,e) 172,400 2,241,200 Hain Celestial Group (a) 37,800 604,422 Hershey Creamery 709 1,772,500 Lancaster Colony 16,900 653,354 --------------- 5,271,476 --------------- Home Furnishing/Appliances - 1.1% Bassett Furniture Industries 116,675 1,549,444 Falcon Products (a,c) 782,600 3,310,398 La-Z-Boy (d) 68,200 1,526,316 Lifetime Hoan (d) 295,327 2,250,392 Natuzzi ADR (b) 62,200 498,844 --------------- 9,135,394 --------------- Publishing - 0.5% Martha Stewart Living Omnimedia Cl. A (a,d) 6,000 56,340 Scholastic Corporation (a) 130,000 3,871,400 --------------- 3,927,740 --------------- Sports and Recreation - 0.7% Callaway Golf 35,000 462,700 Coachmen Industries 67,700 809,015 Fleetwood Enterprises (a,d) 234,300 1,733,820 Monaco Coach (a) 141,050 2,162,296 Thor Industries 22,100 902,122 --------------- 6,069,953 --------------- Other Consumer Products - 1.4% Blyth 54,700 1,487,840 Burnham Corporation Cl. B 18,000 859,500 Fossil (a) 15,000 353,400 Lazare Kaplan International (a) 103,600 600,880 Matthews International Cl. A 196,000 4,852,960 Oakley (a) 243,100 2,861,287 Scotts (The) Cl. A (a) 20,000 990,000 --------------- 12,005,867 --------------- TOTAL (Cost $42,721,425) 60,162,248 =============== CONSUMER SERVICES - 5.1% Leisure/Entertainment - 0.5% Ascent Media Group Cl. A (a,d) 380,900 472,316 Corus Entertainment Cl. B (a,d) 22,000 370,920 Gemstar-TV Guide International (a) 215,100 1,094,859 Hasbro 50,000 874,500 Magna Entertainment Cl. A (a) 198,800 994,000 Shuffle Master (a,d) 5,000 146,950 TiVo (a) 17,000 209,950 --------------- 4,163,495 --------------- Restaurants/Lodgings - 1.4% Benihana Cl. A (a,d) 57,500 759,000 CEC Entertainment (a) 30,000 1,107,900 Four Seasons Hotels (d) 80,000 3,460,800 IHOP CORPORATION (d) 161,700 5,104,869 Jack in the Box (a) 10,000 223,000 Prime Hospitality (a,d) 106,100 711,931 Ryan's Family Steak Houses (a,d) 48,900 684,600 --------------- 12,052,100 --------------- Retail Stores - 2.3% Big Lots (a) 307,200 4,620,288 Charming Shoppes (a,d) 803,400 3,992,898 Claire's Stores 127,700 3,238,472 Payless ShoeSource (a) 289,600 3,620,000 Stein Mart (a) 192,800 1,154,872 Urban Outfitters (a,d) 83,800 3,008,420 --------------- 19,634,950 --------------- Other Consumer Services - 0.9% ITT Educational Services (a) 120,000 3,510,000 Sotheby's Holdings Cl. A (a,d) 540,200 4,019,088 Strayer Education 10,000 794,500 --------------- 8,323,588 --------------- TOTAL (Cost $42,102,506) 44,174,133 =============== FINANCIAL INTERMEDIARIES - 9.3% Banking - 2.3% BOK Financial (a) 125,561 4,842,888 Farmers & Merchants Bank of Long Beach 1,266 4,665,210 First National Bank Alaska 2,130 3,197,130 Mechanics Bank 200 3,500,000 Mercantile Bankshares 20,000 787,600 NetBank 70,000 921,200 Oriental Financial Group 79,750 2,048,777 --------------- 19,962,805 --------------- Insurance - 6.3% Argonaut Group (a) 187,000 2,305,710 ERIE INDEMNITY COMPANY CL. A 169,900 7,008,375 Everest Re Group 12,600 963,900 Fidelity National Financial 12,843 395,051 First American 31,700 835,295 Leucadia National 51,500 1,911,680 Markel Corporation (a) 4,200 1,075,200 Montpelier Re Holdings (a) 53,000 1,674,800 NYMAGIC 85,200 1,726,152 Navigators Group (a) 83,200 2,481,024 PICO Holdings (a) 154,300 2,005,900 PMA Capital Cl. A (d) 231,700 2,912,469 PXRE Group 176,551 3,495,710 Philadelphia Consolidated Holding (a) 35,000 1,414,000 The Phoenix Companies (d) 81,900 739,557 PROASSURANCE CORPORATION (a) 202,070 5,453,869 RLI 118,724 3,906,020 Reinsurance Group of America (d) 30,000 963,000 Trenwick Group (a,d) 212,260 65,801 Wesco Financial 9,850 3,073,200 38 ROYCE VALUE TRUST, INC. - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS JUNE 30, 2003 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ----- FINANCIAL INTERMEDIARIES (CONTINUED) Insurance (continued) WHITE MOUNTAINS INSURANCE GROUP (d) 16,900 $ 6,675,500 Zenith National Insurance (d) 106,900 3,046,650 --------------- 54,128,863 --------------- Securities Brokers - 0.6% E*TRADE Group (a) 575,000 4,887,500 Knight Trading Group (a) 115,000 715,300 --------------- 5,602,800 --------------- Other Financial Intermediaries - 0.1% Chicago Mercantile Exchange (d) 10,000 696,300 --------------- TOTAL (Cost $50,876,045) 80,390,768 =============== FINANCIAL SERVICES - 6.2% Information and Processing - 2.1% BARRA (a) 42,200 1,506,540 eFunds Corporation (a) 167,675 1,933,293 FACTSET RESEARCH SYSTEMS (d) 140,000 6,167,000 Fair Isaac 5,190 267,025 Global Payments 61,500 2,183,250 Moody's Corporation 50,000 2,635,500 National Processing (a,d) 20,000 321,600 SEI Investments 93,200 2,982,400 --------------- 17,996,608 --------------- Insurance Brokers - 1.0% Brown & Brown 20,000 650,000 Crawford & Co. Cl. A 297,350 1,442,147 Crawford & Co. Cl. B 75,300 369,723 Gallagher (Arthur J.) & Company 106,200 2,888,640 Hilb, Rogal & Hamilton 105,550 3,592,922 --------------- 8,943,432 --------------- Investment Management - 2.7% Affiliated Managers Group (a,d) 60,000 3,657,000 Alliance Capital Management Holding L.P. 139,000 5,073,500 BKF Capital Group (a) 94,000 2,052,020 BlackRock Cl. A (a,d) 35,000 1,576,400 Eaton Vance 80,200 2,534,320 Federated Investors Cl. B 35,000 959,700 Neuberger Berman (d) 105,000 4,190,550 Nuveen Investments Cl. A 119,200 3,247,008 --------------- 23,290,498 --------------- Other Financial Services - 0.4% PRG-Schultz International (a,d) 284,200 1,676,780 Van der Moolen Holding ADR (b) 119,000 1,642,200 --------------- 3,318,980 --------------- TOTAL (Cost $37,351,067) 53,549,518 =============== HEALTH - 8.1% Commercial Services - 1.5% IDEXX Laboratories (a) 104,100 3,506,088 PAREXEL International (a,d) 277,700 3,873,915 Pharmaceutical Product Development (a) 10,000 287,300 Quintiles Transnational (a) 130,300 1,848,957 Sybron Dental Specialties (a,d) 21,000 495,600 The TriZetto Group (a) 190,200 1,148,808 Young Innovations (a) 77,550 2,210,175 --------------- 13,370,843 --------------- Drugs and Biotech - 2.3% Abgenix (a,d) 38,000 398,620 Affymetrix (a,d) 96,600 $ 1,903,986 Antigenics (a,d) 38,500 443,520 Applera Corporation - Celera Genomics Group (a) 199,200 2,055,744 Biopure Corporation Cl. A (a,d) 43,200 263,952 BioSource International (a) 1,600 11,040 Celgene Corporation (a) 40,000 1,216,000 Cephalon (a) 4,900 201,684 Cerus Corporation (a) 21,700 163,401 Chiron Corporation (a) 21,800 953,096 DUSA Pharmaceuticals (a) 79,700 200,047 Endo Pharmaceuticals Holdings (a) 120,000 2,030,400 Genzyme Corporation - General Division (a) 28,000 1,170,400 Human Genome Sciences (a) 90,000 1,144,800 IDEC Pharmaceuticals (a,d) 28,100 955,400 Invitrogen Corporation (a) 40,000 1,534,800 Lexicon Genetics (a) 256,200 1,719,102 Millennium Pharmaceuticals (a) 50,000 786,500 Perrigo Company 169,900 2,657,236 Shire Pharmaceuticals Group ADR (a,b) 20,853 410,804 --------------- 20,220,532 --------------- Health Services - 1.3% Accredo Health (a) 8,705 189,769 Albany Molecular Research (a) 65,000 981,500 First Consulting Group (a) 315,900 1,475,253 Gene Logic (a,d) 138,100 824,457 Gentiva Health Services (a) 30,150 271,350 Health Management Associates Cl. A 27,400 505,530 +IMPATH (a,d) 93,000 1,315,020 Lincare Holdings (a) 24,600 775,146 Manor Care (a) 58,300 1,458,083 MedQuist (a) 73,893 1,495,594 On Assignment (a) 293,200 1,172,800 Quovadx (a) 168,400 503,516 --------------- 10,968,018 --------------- Personal Care - 0.6% Ocular Sciences (a,d) 177,500 3,523,375 Regis 57,200 1,661,660 --------------- 5,185,035 --------------- Surgical Products and Devices - 2.4% Allied Healthcare Products (a) 60,000 214,200 ARROW INTERNATIONAL 151,100 6,671,065 CONMED Corporation (a) 38,500 703,010 Datascope 34,000 1,009,460 Diagnostic Products 25,000 1,026,250 Haemonetics (a) 92,900 1,737,230 Invacare 100,000 3,300,000 Novoste (a) 66,500 399,000 STERIS (a) 48,600 1,122,174 Varian Medical Systems (a) 60,800 3,500,256 Zoll Medical (a) 20,200 677,912 --------------- 20,360,557 --------------- TOTAL (Cost $60,623,736) 70,104,985 =============== INDUSTRIAL PRODUCTS - 13.4% Building Systems and Components - 1.1% Decker Manufacturing 6,022 198,726 Preformed Line Products Company 131,600 1,928,598 SIMPSON MANUFACTURING (a,d) 190,400 6,968,640 --------------- 9,095,964 --------------- 39 ROYCE VALUE TRUST, INC. - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS JUNE 30, 2003 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ----- INDUSTRIAL PRODUCTS (CONTINUED) Construction Materials - 1.8% ASH GROVE CEMENT COMPANY CL. B 50,518 $ 5,961,124 ElkCorp 25,000 562,500 FLORIDA ROCK INDUSTRIES 153,800 6,348,864 Oregon Steel Mills (a) 247,900 718,910 Synalloy Corporation (a,c) 345,000 1,873,350 --------------- 15,464,748 --------------- Industrial Components - 1.8% Bel Fuse Cl. A 53,200 1,090,600 Belden (d) 95,800 1,522,262 C & D Technologies 50,000 718,000 Donaldson Company 26,000 1,155,700 Kaydon Corporation 171,200 3,560,960 Penn Engineering & Manufacturing 251,600 3,434,340 Penn Engineering & Manufacturing Cl. A 77,600 942,064 PerkinElmer 135,000 1,864,350 Powell Industries (a) 57,400 840,336 Woodhead Industries 45,400 568,408 --------------- 15,697,020 --------------- Machinery - 3.5% Cognex Corporation (a) 163,400 3,651,990 COHERENT (a) 233,700 5,534,016 Federal Signal (d) 58,600 1,029,602 Graco 26,550 849,600 Lincoln Electric Holdings 237,880 4,855,131 National Instruments (a,d) 41,100 1,552,758 Nordson Corporation 172,200 4,106,970 Oshkosh Truck 13,000 771,160 PAXAR Corporation (a) 370,100 4,071,100 Woodward Governor 83,600 3,594,800 --------------- 30,017,127 --------------- Paper and Packaging - 0.4% Peak International (a) 408,400 1,816,972 Sealed Air (a) 34,000 1,620,440 --------------- 3,437,412 --------------- Pumps, Valves and Bearings - 0.7% Baldor Electric 62,900 1,295,740 ConBraCo Industries 7,630 587,510 Denison International ADR (a,b) 79,400 1,528,450 Franklin Electric 23,600 1,313,340 NN 127,100 1,609,086 --------------- 6,334,126 --------------- Specialty Chemicals and Materials - 1.2% Arch Chemicals 38,200 729,620 CFC International (a) 123,500 666,900 Commercial Metals 5,000 88,950 Hawkins 301,278 3,018,806 MACDERMID 211,631 5,565,895 --------------- 10,070,171 --------------- Textiles - 0.4% Fab Industries (a) 209,800 1,930,160 Unifi (a) 285,100 1,767,620 --------------- 3,697,780 --------------- Other Industrial Products - 2.5% BHA Group Holdings 187,252 3,709,462 Brady Corporation Cl. A 129,400 4,315,490 Diebold 100,000 4,325,000 IMPCO Technologies (a) 15,500 95,480 KIMBALL INTERNATIONAL CL. B 334,880 5,224,128 Maxwell Technologies (a,d) 21,500 123,840 Myers Industries 52,727 500,907 Peerless Mfg. (a,c) 158,600 1,752,530 Quantum Fuel Systems Technologies Worldwide (a,d) 15,500 34,565 Steelcase Cl. A (d) 82,500 970,200 Trinity Industries (d) 20,000 370,200 --------------- 21,421,802 --------------- TOTAL (Cost $83,669,214) 115,236,150 =============== INDUSTRIAL SERVICES - 13.4% Advertising/Publishing - 0.7% Catalina Marketing (a,d) 60,000 1,059,000 Cordiant Communications Group ADR (a,b) 100,000 28,000 Grey Global Group 3,817 2,948,671 Interpublic Group of Companies (a) 155,000 2,073,900 --------------- 6,109,571 --------------- Commercial Services - 5.0% ABM Industries (d) 119,200 1,835,680 ALLIED WASTE INDUSTRIES (a) 569,800 5,726,490 Carlisle Holdings (a) 204,900 676,170 Central Parking (d) 171,400 2,118,504 Convergys Corporation (a) 156,000 2,496,000 Core Laboratories (a) 125,200 1,352,160 Cornell Companies (a) 124,400 1,883,416 Covance (a) 132,700 2,401,870 Hewitt Associates Cl. A (a) 40,000 942,000 +Hudson Highland Group (a,d) 11,174 212,418 iGATE Corporation (a) 144,500 501,415 Iron Mountain (a) 127,450 4,727,120 Korn/Ferry International (a) 189,400 1,534,140 Learning Tree International (a,d) 53,400 834,642 MPS Group (a) 539,300 3,710,384 Manpower 55,800 2,069,622 Metro One Telecommunications (a,d) 25,000 129,000 Monster Worldwide (a) 149,000 2,939,770 New Horizons Worldwide (a) 136,500 584,220 RemedyTemp Cl. A (a,d) 78,500 724,555 Renaissance Learning (a,d) 10,000 219,000 Spherion Corporation (a) 109,000 757,550 TRC Companies (a,d) 53,000 782,280 United Stationers (a) 23,000 831,910 Wackenhut Corrections (a) 21,100 289,281 Watson Wyatt & Company Holdings Cl. A (a) 45,000 1,043,100 West Corporation (a) 75,000 1,998,750 --------------- 43,321,447 --------------- Engineering and Construction - 0.5% EMCOR Group (a) 15,000 740,400 Jacobs Engineering Group (a) 20,000 843,000 McDermott International (a) 71,000 449,430 Washington Group International (a) 100,000 2,196,000 --------------- 4,228,830 --------------- Food/Tobacco Processors - 0.9% FARMER BROS. 15,000 5,089,350 MGP Ingredients 321,200 2,805,682 --------------- 7,895,032 --------------- 40 ROYCE VALUE TRUST, INC. - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS JUNE 30, 2003 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ----- INDUSTRIAL SERVICES (CONTINUED) Industrial Distribution - 1.1% Central Steel & Wire 3,699 $ 1,387,125 RITCHIE BROS. AUCTIONEERS (a) 155,200 5,976,752 Strategic Distribution (a) 115,000 1,870,015 --------------- 9,233,892 --------------- Printing - 1.5% Bowne & Co. 383,100 4,991,793 Ennis Business Forms 62,700 912,285 Moore Wallace (a) 90,700 1,331,476 NEW ENGLAND BUSINESS SERVICE 178,300 5,349,000 --------------- 12,584,554 --------------- Transportation and Logistics - 3.1% Airborne 100,000 2,090,000 AirNet Systems (a) 219,000 886,950 Atlas Air Worldwide Holdings (a,d) 210,000 308,700 Brink's Company (The) 137,278 2,000,140 C. H. Robinson Worldwide 40,000 1,422,400 CNF 62,600 1,588,788 Continental Airlines Cl. B (a,d) 150,000 2,245,500 EGL (a,d) 198,525 3,017,580 Forward Air (a,d) 148,000 3,754,760 Frozen Food Express Industries (a) 306,635 968,967 Hub Group Cl. A (a) 77,000 676,060 Landstar System (a) 33,800 2,124,330 Patriot Transportation Holding (a) 136,300 3,842,297 UTI Worldwide 45,000 1,403,550 --------------- 26,330,022 --------------- Other Industrial Services - 0.6% Landauer 117,900 4,931,757 Republic Services (a) 18,600 421,662 --------------- 5,353,419 --------------- TOTAL (Cost $90,768,813) 115,056,767 =============== NATURAL RESOURCES - 6.6% Energy Services - 2.7% Carbo Ceramics (d) 105,600 3,933,600 ENSCO International 6,443 173,317 Global Industries (a) 119,500 575,990 Hanover Compressor Company (a) 175,000 1,977,500 Helmerich & Payne 98,400 2,873,280 Input/Output (a) 540,100 2,905,738 Precision Drilling (a) 37,500 1,416,000 TETRA Technologies (a) 49,000 1,452,850 Tidewater 21,600 634,392 Universal Compression Holdings (a) 115,000 2,398,900 Willbros Group (a) 485,600 5,045,384 --------------- 23,386,951 --------------- Oil and Gas - 2.0% Tom Brown (a) 76,000 2,112,040 +Chesapeake Energy (d) 73,000 737,300 Cimarex Energy (a) 138,170 3,281,537 Denbury Resources (a) 352,600 4,735,418 EOG Resources 5,000 209,200 EnCana Corporation 21,638 830,250 Husky Energy 85,000 1,097,179 PetroCorp (a) 154,900 1,727,135 Prima Energy (a) 17,500 365,400 Toreador Resources (a) 100,300 301,903 Veritas DGC (a) 123,000 1,414,500 Vintage Petroleum 48,300 544,824 --------------- 17,356,686 --------------- Precious Metals and Mining - 0.7% AngloGold ADR (b,d) 111,900 3,569,610 Glamis Gold (a) 115,000 1,319,050 Gold Fields ADR (b) 57,800 704,004 MK Gold (a) 517,900 393,604 Stillwater Mining (a) 60,000 308,400 --------------- 6,294,668 --------------- Real Estate - 1.2% Alico 52,000 1,283,880 Chelsea Property Group 55,000 2,217,050 Consolidated-Tomoka Land 13,564 340,728 Public Storage 45,000 1,524,150 Trammell Crow Company (a) 432,400 4,587,764 --------------- 9,953,572 --------------- TOTAL (Cost $41,719,336) 56,991,877 =============== TECHNOLOGY - 20.2% Aerospace/Defense - 0.9% Curtiss-Wright (d) 58,300 3,684,560 Ducommun (a) 117,200 1,652,520 Herley Industries (a) 32,000 543,360 Integral Systems (a) 74,800 1,487,024 --------------- 7,367,464 --------------- Components and Systems - 5.4% Adaptec (a,d) 99,500 774,110 Advanced Digital Information (a) 79,000 789,210 American Power Conversion 231,200 3,604,408 Analogic Corporation 5,000 243,800 Catapult Communications (a) 75,100 797,562 Dionex Corporation (a) 89,000 3,537,750 Excel Technology (a) 168,500 3,846,855 Imation Corporation 35,700 1,350,174 InFocus Corporation (a) 79,000 372,880 KEMET Corporation (a,d) 135,000 1,363,500 Kronos (a) 35,850 1,821,538 Methode Electronics Cl. A 50,000 537,500 Newport Corporation (a,d) 102,600 1,518,480 Pemstar (a,d) 220,000 921,800 Perceptron (a) 397,400 2,384,400 Radiant Systems (a) 47,500 320,150 Rainbow Technologies (a) 116,900 983,129 REMEC (a,d) 214,200 1,490,832 Scitex (a) 245,700 624,078 Storage Technology (a) 90,000 2,316,600 Symbol Technologies 304,900 3,966,749 TTM Technologies (a) 280,500 1,315,545 Technitrol (a) 285,900 4,302,795 Tektronix (a) 65,000 1,404,000 Vishay Intertechnology (a) 83,900 1,107,480 Zebra Technologies Cl. A (a) 62,500 4,699,375 --------------- 46,394,700 --------------- Distribution - 2.5% Anixter International (a,d) 41,900 981,717 Arrow Electronics (a) 316,100 4,817,364 AVNET (a,d) 405,355 5,139,901 Benchmark Electronics (a) 45,400 1,396,504 41 ROYCE VALUE TRUST, INC. - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS JUNE 30, 2003 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES VALUE ------ ----- TECHNOLOGY (CONTINUED) Distribution (continued) Brightpoint (a) 11,286 $ 138,818 Insight Enterprises (a) 71,500 719,290 Plexus (a) 274,600 3,166,138 TECH DATA (a) 200,500 5,355,355 --------------- 21,715,087 --------------- Internet Software and Services - 0.8% CNET Networks (a) 265,400 1,653,442 CryptoLogic (a) 202,000 1,510,960 CyberSource Corporation (a) 10,000 27,400 DoubleClick (a) 166,700 1,541,975 EarthLink (a) 122,700 968,103 +Overture Services (a,d) 5,000 90,650 RealNetworks (a) 85,400 579,012 +Satyam Computer Services ADR (b,d) 20,000 198,600 Stamps.com (a) 80,300 385,440 Vastera (a) 15,000 89,550 --------------- 7,045,132 --------------- IT Services - 4.3% American Management Systems (a) 331,900 4,739,532 Answerthink (a) 655,000 1,264,150 BearingPoint (a) 486,000 4,689,900 CIBER (a) 70,000 491,400 Covansys Corporation (a) 251,600 772,412 DiamondCluster International Cl. A (a) 288,900 1,071,819 Forrester Research (a) 91,500 1,496,940 Gartner Cl. A (a) 166,000 1,258,280 CGI Group Cl. A (a) 106,700 642,334 KEANE (a) 497,000 6,774,110 MAXIMUS (a,d) 113,000 3,122,190 Perot Systems Cl. A (a) 165,100 1,875,536 QRS Corporation (a) 57,500 304,750 Sapient Corporation (a) 1,124,400 3,114,588 Syntel (a) 72,400 1,138,852 Unisys Corporation (a) 325,000 3,991,000 --------------- 36,747,793 --------------- Semiconductors and Equipment - 2.9% Artisan Components (a) 15,000 339,150 BE Semiconductor Industries (a) 58,000 310,300 Credence Systems (a) 10,600 89,782 Cymer (a,d) 14,500 464,145 DSP Group (a) 115,000 2,475,950 DuPont Photomasks (a) 35,000 659,050 Electroglas (a,d) 281,700 369,027 Exar Corporation (a) 92,300 1,461,109 Fairchild Semiconductor Cl. A (a) 183,000 2,340,570 GlobespanVirata (a) 85,000 701,250 Helix Technology (d) 51,900 686,637 Integrated Circuit Systems (a,d) 135,000 4,243,050 Intevac (a,d) 216,650 1,455,888 Kulicke & Soffa Industries (a) 105,800 676,062 Lattice Semiconductor (a) 264,000 2,172,720 Mentor Graphics (a,d) 225,700 3,268,136 National Semiconductor (a) 43,200 851,904 Novellus Systems (a) 12,000 439,452 NVIDIA Corporation (a) 14,000 322,140 ParthusCeva (a) 31,666 258,078 Semitool (a) 50,000 246,500 Veeco Instruments (a,d) 65,000 1,106,950 --------------- 24,937,850 --------------- Software - 1.9% Adobe Systems 30,000 962,100 ANSYS (a) 45,500 1,415,050 Aspen Technology (a,d) 27,100 130,080 Autodesk 251,000 4,056,160 Business Objects ADR (a,b,d) 25,500 559,725 JDA Software Group (a) 149,900 1,677,381 MRO Software (a) 46,000 396,980 MSC.Software (a,d) 42,600 287,124 Macromedia (a) 61,600 1,296,064 Manugistics Group (a,d) 49,200 202,212 Novell (a) 146,000 449,680 Phoenix Technologies (a,d) 40,900 231,085 Progress Software (a) 50,500 1,046,865 SPSS (a) 107,500 1,799,550 Transaction Systems Architects Cl. A (a) 237,300 2,126,208 --------------- 16,636,264 --------------- Telecommunication - 1.5% ADC Telecommunications (a) 113,000 263,064 ADTRAN (a) 40,000 2,040,800 Allegiance Telecom (a,d) 2,016,700 110,918 Anaren (a,d) 30,000 281,100 Andrew Corporation (a) 30,000 276,000 Arris Group (a,d) 70,000 347,200 Comverse Technology (a) 30,000 450,900 Globecomm Systems (a) 233,700 766,536 IDT Corporation (a,d) 25,000 447,500 IDT Corporation Cl. B (a) 40,000 704,000 Inet Technologies (a) 65,000 648,050 Level 3 Communications (a,d) 408,400 2,711,776 Liberty Satellite & Technology Cl. A (a,d) 196,530 510,978 PECO II (a) 93,600 58,781 Plantronics (a) 55,100 1,194,017 Polycom (a,d) 37,000 512,820 Sycamore Networks (a) 38,000 145,540 Time Warner Telecom Cl. A (a) 204,000 1,299,480 --------------- 12,769,460 --------------- TOTAL (Cost $167,662,238) 173,613,750 =============== UTILITIES - 0.1% Southern Union (a) 10,000 169,400 --------------- TOTAL (Cost $132,500) 169,400 =============== MISCELLANEOUS - 1.7% TOTAL (Cost $11,930,853) 14,181,950 =============== TOTAL COMMON STOCKS (Cost $629,557,734) 783,631,546 =============== PREFERRED STOCKS - 0.1% Aristotle Corporation 11.00% Conv. 4,800 33,888 SVB Capital I 8.25% 20,000 499,980 --------------- TOTAL PREFERRED STOCKS (Cost $531,005) 533,868 =============== 42 ROYCE VALUE TRUST, INC. - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS JUNE 30, 2003 (UNAUDITED) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT VALUE ------ ----- CORPORATE BONDS - 0.2% Dixie Group 7.00% Conv. Sub. Deb. due 5/15/12 $ 537,000 $ 322,200 Richardson Electronics 7.25% Conv. Sub. Deb. due 12/15/06 1,319,000 1,081,580 --------------- TOTAL CORPORATE BONDS (Cost $1,544,984) 1,403,780 =============== U.S. TREASURY OBLIGATIONS - 3.2% U.S. Treasury Notes 5.625%, due 2/15/06 25,000,000 27,649,425 --------------- TOTAL U.S. TREASURY OBLIGATIONS (Cost $27,453,124) 27,649,425 =============== REPURCHASE AGREEMENT - 5.4% State Street Bank & Trust Company, 0.30% dated 6/30/03, due 7/1/03, maturity value $46,399,387 (collateralized by U.S. Treasury Notes, 1.75% due 12/31/04, valued at $47,329,137) (Cost $46,399,000) $ 46,399,000 =============== TOTAL INVESTMENTS - 100.0% (Cost $705,485,847) 859,617,619 LIABILITIES LESS CASH AND OTHER ASSETS - (396,423) PREFERRED STOCK (160,000,000) --------------- NET ASSETS APPLICABLE TO COMMON STOCKHOLDERS $ 699,221,196 =============== - -------------------------------------------------------------------------------- (a) Non-income producing. (b) American Depository Receipt. (c) At June 30, 2003, 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 June 30, 2003. Total market value of loaned securities at June 30, 2003 was $33,925,944. (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 2003. BOLD INDICATES THE FUND'S LARGEST 20 EQUITY HOLDINGS IN TERMS OF JUNE 30, 2003 MARKET VALUE. INCOME TAX INFORMATION: The cost of total investments for Federal income tax purposes was $709,157,702. At June 30, 2003, net unrealized appreciation for all securities was $150,459,917, consisting of aggregate gross unrealized appreciation of $228,856,672 and aggregate gross unrealized depreciation of $78,396,755. 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. 43 ROYCE VALUE TRUST, INC. - -------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 2003 (UNAUDITED) - -------------------------------------------------------------------------------- ASSETS: Investments at value (identified cost $659,086,847) $813,218,619 Repurchase agreement (at cost and value) 46,399,000 Cash 126 Collateral from brokers on securities loaned 36,246,784 Receivable for investments sold 612,103 Receivable for dividends and interest 929,758 - -------------------------------------------------------------------------------- Total Assets 897,406,379 - -------------------------------------------------------------------------------- LIABILITIES: Payable for collateral on securities loaned 36,246,784 Payable for investments purchased 637,532 Payable for investment advisory fee 809,646 Preferred dividends accrued but not yet declared 266,225 Accrued expenses 224,996 - -------------------------------------------------------------------------------- Total Liabilities 38,185,183 - -------------------------------------------------------------------------------- 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 $699,221,196 - -------------------------------------------------------------------------------- ANALYSIS OF NET ASSETS APPLICABLE TO COMMON STOCKHOLDERS: Par value of Common Stock - $0.001 per share; 48,820,755 shares outstanding (150,000,000 shares authorized) $ 48,821 Additional paid-in capital 566,557,501 Accumulated net investment loss (895,291) Accumulated net realized gain on investments 15,009,715 Net unrealized appreciation on investments 154,131,809 Quarterly and accrued distributions (35,631,359) - -------------------------------------------------------------------------------- Net Assets applicable to Common Stockholders (net asset value per share - $14.32) $699,221,196 - -------------------------------------------------------------------------------- THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. 44 ROYCE VALUE TRUST, INC. - -------------------------------------------------------------------------------- STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 2003 (UNAUDITED) - -------------------------------------------------------------------------------- INVESTMENT INCOME: Income: Dividends $ 2,629,376 Interest 851,553 - -------------------------------------------------------------------------------- Total income 3,480,929 - -------------------------------------------------------------------------------- Expenses: Investment advisory fees 4,482,527 Stockholder reports 176,214 Custody and transfer agent fees 104,025 Administrative and office facilities expenses 58,433 Directors' fees 55,391 Professional fees 46,220 Other expenses 70,077 - -------------------------------------------------------------------------------- Total expenses 4,992,887 Fees waived by investment advisor (616,667) - -------------------------------------------------------------------------------- Net expenses 4,376,220 - -------------------------------------------------------------------------------- Net investment income (loss) (895,291) - -------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN ON INVESTMENTS: Net realized gain on investments 18,822,862 Net change in unrealized appreciation on investments 84,176,771 - -------------------------------------------------------------------------------- Net realized and unrealized gain on investments 102,999,633 - -------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS RESULTING FROM INVESTMENT OPERATIONS 102,104,342 - -------------------------------------------------------------------------------- DISTRIBUTIONS TO PREFERRED STOCKHOLDERS (5,990,000) - -------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS APPLICABLE TO COMMON STOCKHOLDERS RESULTING FROM INVESTMENT OPERATIONS $ 96,114,342 - -------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS - -------------------------------------------------------------------------------- Six months ended Year ended June 30, 2003 December 31, (unaudited) 2002 ---------------- ----------- INVESTMENT OPERATIONS: Net investment loss $ (895,291) $ (583,347) Net realized gain on investments 18,822,862 62,933,497 Net change in unrealized appreciation on investments 84,176,771 (156,381,089) - -------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from investment operations 102,104,342 (94,030,939) - -------------------------------------------------------------------------------- DISTRIBUTIONS TO PREFERRED STOCKHOLDERS: Net investment income - (581,030) Net realized gain on investments - (11,398,970) Quarterly distributions* (5,990,000) - - -------------------------------------------------------------------------------- Total distributions to Preferred Stockholders (5,990,000) (11,980,000) - -------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON STOCKHOLDERS RESULTING FROM INVESTMENT OPERATIONS 96,114,342 (106,010,939) - -------------------------------------------------------------------------------- DISTRIBUTIONS TO COMMON STOCKHOLDERS: Net investment income - (2,981,664) Net realized gain on investments - (58,496,049) Quarterly distributions* (29,375,135) - - -------------------------------------------------------------------------------- Total distributions to Common Stockholders (29,375,135) (61,477,713) - -------------------------------------------------------------------------------- CAPITAL STOCK TRANSACTIONS: Proceeds from rights offering 54,505,909 - Reinvestment of distributions to Common Stockholders 17,200,457 39,123,307 - -------------------------------------------------------------------------------- Total capital stock transactions 71,706,366 39,123,307 - -------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON STOCKHOLERS 138,445,573 (128,365,345) NET ASSETS APPLICABLE TO COMMON STOCKHOLDERS: Beginning of period 560,775,623 689,140,968 - -------------------------------------------------------------------------------- End of period (including accumulated net investment loss of $895,291 in 2003) $699,221,196 $ 560,775,623 - -------------------------------------------------------------------------------- *To be allocated to net investment income and capital gains at year-end. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. 45 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.
Six months ended Years ended December 31, June 30, 2003 -------------------------------------------- (unaudited) 2002 2001 2000 1999 1998 - ---------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $13.22 $17.31 $16.56 $15.77 $15.72 $16.91 - ---------------------------------------------------------------------------------------------------- INVESTMENT OPERATIONS: Net investment income (loss) (0.02) (0.02) 0.05 0.18 0.26 0.17 Net realized and unrealized gain (loss) on investments 1.97 (2.25) 2.58 2.58 1.65 0.67 - ---------------------------------------------------------------------------------------------------- Total investment operations 1.95 (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) Quarterly distributions* (0.13) - - - - - - ---------------------------------------------------------------------------------------------------- Total distributions to Preferred Stockholders (0.13) (0.29) (0.31) (0.33) (0.36) (0.29) - ---------------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON STOCKHOLDERS RESULTING FROM INVESTMENT OPERATIONS 1.82 (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) Quarterly distributions* (0.65) - - - - - - ---------------------------------------------------------------------------------------------------- Total distributions to Common Stockholders (0.65) (1.51) (1.49) (1.48) (1.37) (1.54) - ---------------------------------------------------------------------------------------------------- CAPITAL STOCK TRANSACTIONS: Effect of reinvestment of distributions by Common Stockholders (0.00) (0.02) (0.08) (0.16) (0.13) (0.09) Effect of rights offering or Preferred Stock offering (0.07) - - - - (0.11) - ---------------------------------------------------------------------------------------------------- Total capital stock transactions (0.07) (0.02) (0.08) (0.16) (0.13) (0.20) - ---------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $14.32 $13.22 $17.31 $16.56 $15.77 $15.72 - ---------------------------------------------------------------------------------------------------- MARKET VALUE, END OF PERIOD $14.94 $13.25 $15.72 $14.438 $13.063 $13.75 - ---------------------------------------------------------------------------------------------------- TOTAL RETURN (a): Market Value 18.4%*** (6.9)% 20.0% 22.7% 5.7% 1.5% Net Asset Value 13.8%*** (15.6)% 15.2% 16.6% 11.7% 3.3% RATIOS BASED ON AVERAGE NET ASSETS APPLICABLE TO COMMON STOCKHOLDERS: Total expenses (b,c) 1.47%** 1.72% 1.61% 1.43% 1.39% 1.31% Management fee expense 1.30%** 1.56% 1.45% 1.25% 1.18% 1.10% Other operating expenses 0.17%** 0.16% 0.16% 0.18% 0.21% 0.21% Net investment income (loss) (0.30)%** (0.09)% 0.35% 1.18% 1.47% 1.11% SUPPLEMENTAL DATA: Net Assets Applicable to Common Stockholders, End of Period (in thousands) $699,221 $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 $160,000 Portfolio Turnover Rate 12% 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 6,400,000 Asset coverage per share $134.25 $112.62 $132.68 $122.38 $111.40 $105.78 Liquidation preference per share $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 Average market value per share: 7.80% Cumulative (d) $26.09 $26.37 $25.70 $23.44 $24.98 $25.91 7.30% Tax-Advantaged Cumulative (d) $25.60 $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 1.16%, 1.38%, 1.30%, 1.12%, 1.06% and 1.06% for the periods ended June 30, 2003 and 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 1.67%, 1.82%, 1.65%, 1.51%, 1.48% and 1.34% for the periods ended June 30, 2003 and December 31, 2002, 2001, 2000, 1999 and 1998, respectively. (d) The average of month-end market values during the period. * To be allocated to net investment income and capital gains at year-end. ** Annualized. *** Not annualized. 46 ROYCE VALUE TRUST, INC. - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - -------------------------------------------------------------------------------- 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 are valued as of the close of trading on the New York Stock Exchange (generally 4:00 p.m. Eastern time) on the valuation date. 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. 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 are 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. 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 June 30, 2003, 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. 47 ROYCE VALUE TRUST, INC. - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) - -------------------------------------------------------------------------------- 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 1,313,310 and 2,615,641 shares of Common Stock as reinvestment of distributions by Common Stockholders for the six months ended June 30, 2003 and the year ended December 31, 2002, respectively. During the quarter ended March 31, 2003, the Fund completed a rights offering of 5,090,083 shares to its stockholders at the rate of one share for each 10 rights held by the stockholders of record on January 28, 2003. These shares were priced at $10.77, which was $0.50 below the last reported sale price on the New York Stock Exchange on March 11, 2003. 34.5% of the offering was subscribed for through primary subscription. The remaining shares were purchased by those stockholders who subscribed with their primary rights and who also elected to purchase additional shares using over-subscription rights. 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 applicable to Common Stockholders plus the 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 six months ended June 30, 2003, the Fund accrued and paid Royce advisory fees totaling $3,865,860, which is net of $616,667 voluntarily waived by Royce. PURCHASES AND SALES OF INVESTMENT SECURITIES: For the six months ended June 30, 2003, the cost of purchases and proceeds from sales of investment securities, other than short-term securities, amounted to $87,757,204 and $87,320,273, respectively. 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 six months ended June 30, 2003:
- ------------------------------------------------------------------------------------------------------ Purchases Sales ------------ ----------- Affiliated Company Shares Cost Shares Cost Realized Gain (Loss) Dividend Income ------------------ ------ ---- ------ ---- -------------------- --------------- Falcon Products 405,600 $1,635,894 -- -- -- -- McLeodUSA -- -- -- -- -- -- Peerless Mfg. -- -- -- -- -- -- Synalloy Corporation 345,000 1,797,450 -- -- -- -- - ------------------------------------------------------------------------------------------------------
48 ROYCE VALUE TRUST, INC. - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) - -------------------------------------------------------------------------------- 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 net asset 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. 49 ITEM 2: CODE(S) OF ETHICS - NOT APPLICABLE TO THIS AMENDED SEMI-ANNUAL REPORT. ITEM 3: AUDIT COMMITTEE FINANCIAL EXPERT - NOT APPLICABLE TO THIS AMENDED SEMI-ANNUAL REPORT. ITEM 4: PRINCIPAL ACCOUNTANT FEES AND SERVICES - NOT APPLICABLE TO THIS AMENDED SEMI-ANNUAL REPORT. ITEM 5: AUDIT COMMITTEE OF LISTED REGISTRANTS. NOT APPLICABLE TO THIS AMENDED SEMI-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 ncsrs-a63415ex99.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 ncsrsa63415ex99-906.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-----