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

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT
OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act File Number: 811-04875

Name of Registrant: Royce Value Trust, Inc.

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

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

Registrant’s telephone number, including area code: (212) 508-4500
Date of fiscal year end: December 31
Date of reporting period: January 1, 2015 – December 31, 2015


Item 1. Reports to Shareholders.

                  DECEMBER 31, 2015                       2015 Annual     Review and Report to Stockholders                                               Royce Global Value Trust           Royce Micro-Cap Trust             Royce Value Trust                                                                                                                             roycefunds.com                        

A Few Words on Closed-End Funds

Royce & Associates, LLC manages three closed-end funds: Royce Value Trust, which invests primarily in small-cap securities; Royce Micro-Cap Trust, which invests primarily in micro-cap securities; and Royce Global Value Trust, which invests in both U.S. and non-U.S. small-cap stocks. A closed-end fund is an investment company whose shares are listed and traded on a stock exchange. Like all investment companies, including open-end mutual funds, the assets of a closed-end fund are professionally managed in accordance with the investment objectives and policies approved by the fund’s Board of Directors. A closed-end fund raises cash for investment by issuing a fixed number of shares through initial and other public offerings that may include shelf offerings and periodic rights offerings. Proceeds from the offerings are invested in an actively managed portfolio of securities. Investors wanting to buy or sell shares of a publicly traded closed-end fund after the offerings must do so on a stock exchange, as with any publicly traded stock. Shares of closed-end funds frequently trade at a discount to their net asset value. This is in contrast to open-end mutual funds, which sell and redeem their shares at net asset value on a continuous basis.

A Closed-End Fund Can Offer Several Distinct Advantages        
A closed-end fund does not issue redeemable securities or offer its securities on a continuous basis, so it does not need to liquidate securities or hold uninvested assets to meet investor demands for cash redemptions.
       
In a closed-end fund, not having to meet investor redemption requests or invest at inopportune times can be effective for value managers who attempt to buy stocks when prices are depressed and sell securities when prices are high.
       
A closed-end fund may invest in less liquid portfolio securities because it is not subject to potential stockholder redemption demands. This is potentially beneficial for Royce-managed closed-end funds, which invest primarily in small- and micro-cap securities.
       
The fixed capital structure allows permanent leverage to be employed as a means to enhance capital appreciation potential.
       
Royce Value Trust and Royce Micro-Cap Trust distribute capital gains on a quarterly basis. Each of these Funds has adopted a quarterly distribution policy for its common stock.
     
We believe that the closed-end fund structure can be an appropriate investment for a long-term investor who understands the benefits of a more stable pool of capital.
Why Dividend Reinvestment Is Important

A very important component of an investor’s total return comes from the reinvestment of distributions. By reinvesting distributions, our investors can maintain an undiluted investment in a Fund. To get a fair idea of the impact of reinvested distributions, please see the charts on pages 12 and 13. For additional information on the Funds’ Distribution Reinvestment and Cash Purchase Options and the benefits for stockholders, please see page 14 or visit our website at www.roycefunds.com.

Managed Distribution Policy

The Board of Directors of each of Royce Value Trust and Royce Micro-Cap Trust has authorized a managed distribution policy (“MDP”). Under the MDP, Royce Value Trust and Royce Micro-Cap Trust pay quarterly distributions at an annual rate of 7% of the average of the prior four quarter-end net asset values, with the fourth quarter being the greater of these annualized rates or the distribution required by IRS regulations. With each distribution, the Fund will issue a notice to its stockholders and an accompanying press release that provides detailed information regarding the amount and composition of the distribution (including whether any portion of the distribution represents a return of capital) and other information required by a Fund’s MDP. You should not draw any conclusions about a Fund’s investment performance from the amount of distributions or from the terms of a Fund’s MDP. A Fund’s Board of Directors may amend or terminate the MDP at any time without prior notice to stockholders; however, at this time there are no reasonably foreseeable circumstances that might cause the termination of any of the MDPs.


This page is not part of the 2015 Annual Report to Stockholders


       
Table of Contents                       Annual Review               Letter to Our Stockholders   2           Performance   5                   Annual Report to Stockholders               Managers’ Discussions of Fund Performance              

Royce Global Value Trust

  6          

Royce Micro-Cap Trust

  8          

Royce Value Trust

  10           History Since Inception   12           Distribution Reinvestment and Cash Purchase Options   14           Schedules of Investments and Other Financial Statements              

Royce Global Value Trust

  15          

Royce Micro-Cap Trust

  29          

Royce Value Trust

  44           Directors and Officers   61           Notes to Performance and Other Important Information   62           Results of Stockholders Meeting   64  



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Letter to Our Stockholders

GOODBYE TO ALL THAT
It was the sort of year that, when you first look at the final equity market returns, might seem unexceptional, almost quiet. It is only when plugged into the context of the long, mostly bullish market since March 2009 that 2015’s more muted results begin to make more sense—one could even be forgiven for wondering why the losses for the major domestic stock indexes were not steeper than they were at the end of December, considering the heights to which most indexes ascended following the end of the Financial Crisis. Yet the mostly single-digit losses that marked 2015 were the first negative calendar-year returns for small-caps since 2011 (as measured by the Russell 2000 Index). For their part, large-caps, as measured by the Russell 1000 and S&P 500 Indexes, had low single-digit positive returns.
      An equally important contextual piece is the larger macro situation—and few stock market cycles have been shaped as deeply as the current period has been by forces beyond the companies themselves. So while factors such as interest rates, commodity prices, technological innovation, consumer confidence, and the like always influence the movement of share prices to some extent, the fragility of the global economy in the years following the crisis has resulted in levels of central bank and other government interventions not seen since The Great Depression. These actions were almost assuredly necessary to keep the economy afloat. At the same time, however, these policies—particularly zero interest rates and quantitative easing—had significant unintended consequences. And only now, a full seven years after
the tumult, is the situation in the U.S. slouching toward something resembling the Old Normal—that is, a business cycle in which access to credit is more constrained, borrowing has a cost (however low) and both financial health and profitable execution are likely to matter to investors. To be sure, the road back has proved both longer and more winding than any of us could have foreseen at almost any point over the last seven years. At this writing in January of 2016 we know the path in front of us will have its own share of formidable challenges as we embark on the latest leg of the journey.
     As equity investors, we find ourselves in a curious, ambiguous place. The number of risks affecting share prices (among other things) is long and somewhat chilling: Weak commodity prices, flagging currency in China, elevated credit concerns, and geopolitical instability. By year-end, the spread between the U.S. 10-Year note and the Two-Year note—which, when it inverts, often signals recession—had narrowed to a point near the bottom of its six-year range at about 122 basis points. Still far from inverted, it is worth keeping an eye on. We also saw widening credit spreads, a growing number of defaults, and additional signs of a potential credit crunch, especially in the energy industry. Our concerns over credit only intensified in light of the market’s mild reaction to the Fed’s hike on December 16. The situation is of particular interest and concern to us as small-cap specialists. As has been the case historically, a significant deterioration in access to capital would likely have a larger negative impact on small-caps, especially those carrying excess leverage. Of course, this development could also produce an advantage for more conservatively capitalized small-cap businesses—and we own plenty across our value, core, and growth


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strategies. This is one facet of what we believe is a strong case for disciplined, contrarian, bottom-up small-cap approaches that put a premium on managing risk. More widespread success for these kinds of approaches would be a welcome departure from 2015, to which we are happy to say, “Goodbye and good riddance.”

“A WILD RIDE TO NOWHERE”
Our own Charlie Dreifus described 2015 as “a wild ride to nowhere.” We can think of no more fitting way to characterize the year, which was distinguished by high volatility and broadly divergent sector and industry results. The market’s indecision and frustration displayed itself with 19 crossings back and forth over the flat line for the S&P 500. There were single-digit gains in 2015 for a few global and domestic indexes—and single-digit losses for several more. The important exceptions to the downward trend were the Nasdaq Composite, U.S. large-caps, and European issues—small-caps in particular. The Nasdaq Composite was the clear domestic leader in 2015, while the large-cap Russell 1000 and S&P 500 just barely escaped a volatile and bearish December to finish with modestly positive results.
     Within our chosen specialty of small-cap stocks, there were strong returns within the Russell 2000 for Health Care and discrete, more growth-oriented pockets of Information Technology that were accompanied by losses for each of the index’s eight remaining equity sectors, including Energy, Materials, Industrials, and Consumer Discretionary. Along with Information Technology, those four sectors have been among our largest portfolios weightings and/or
substantial overweights versus all three of our closed-end Funds’ respective benchmarks over the last few years. One can get a sense of how confounding 2015 was by noting the confluence of losses for Energy and Consumer Discretionary in the Russell 2000, which defied the historical trend of low energy prices creating widespread demand for discretionary purchases. Indeed, traditional retail stocks were a particular source of red ink for the sector, in spite of consumer confidence remaining high and select, mostly large online companies scoring significant successes. In fact, the 4.4% decline for the Russell 2000 masks just how challenging it was to find strong small-cap performers, especially outside the bio-pharma complex. The difficulty becomes clearer in the context of the small-cap index’s decline of 10.1% on an equal-weighted basis in 2015. (Similarly, the S&P 500 was also down on an equal-weighted basis, falling 2.2% for the calendar year.)
     Looking within small-cap from a style perspective reveals another year in which the Russell 2000 Growth Index, which was down 1.4%, outpaced the Russell 2000 Value Index, which lost 7.5%. Yet small-cap value actually fared better than its growth sibling during the third-quarter correction, losing 10.7% versus 13.1%. Perhaps more interestingly—to us, at least—small-cap value led from the July 17, 2015 high for small-cap non-earners through year-end, falling 8.0% compared to an 11.3% decline for small-cap growth. Down and flat markets have historically favored value, as well as other valuation-focused approaches, so it was reassuring to see that pattern recur, however briefly, in 2015. The last decade, after all, has belonged to small-cap growth. The Russell 2000 Growth beat the Russell 2000

Equity Indexes As of December 31, 2015 (%)        
The Calendar Year Was a Wild Ride To Nowhere—2015 saw single-digit losses for a number of global and domestic indexes. The important exceptions to these mostly modest equity declines came from U.S. large-caps, the Nasdaq Composite, international small-caps, and European issues (especially small-caps).
       
Longer-Term Perspective—Returns Moving Lower Toward More Historically Typical Levels—Three- and five-year returns remained higher than their long-term rolling averages but were down noticeably from where they were for the same periods through 6/30/15. Large-cap led for the three- and five-year periods ended 12/31/15, followed for both periods by the Russell Midcap, Russell Microcap, and Russell 2000. The Russell 2000 Growth outpaced the Russell 2000 Value for the three- and five-year periods ended 12/31/15.

      1-YR   3-YR   5-YR   10-YR   Russell 2000   -4.41   11.65   9.19   6.80   Russell 2000 Value   -7.47   9.06   7.67   5.57   Russell 2000 Growth   -1.38   14.28   10.67   7.95   S&P 500   1.38   15.13   12.57   7.31   Russell 1000   0.92   15.01   12.44   7.40   Nasdaq Composite   5.73   18.37   13.55   8.55   Russell Midcap   -2.44   14.18   11.44   8.00   Russell Microcap   -5.16   12.70   9.23   5.13   Russell Global ex-U.S. Small Cap   0.50   4.32   1.87   4.40   Russell Global ex-U.S. Large Cap   -5.02   2.07   1.40   3.25   Russell Europe Small Cap   9.37   10.97   6.69   5.76     For details on The Royce Funds’ performance in the period, please turn to the Managers’ Discussions that begin on page 8.
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LETTER TO OUR STOCKHOLDERS

Value for the third consecutive year as of the end of 2015, and finished ahead in seven of the last 10 calendar years, resulting in a historically wide margin of outperformance on a trailing 10-year basis through the end of 2015. As long-time believers in mean reversion, we suspect that leadership from value will be the more likely relative performance pattern going forward. (Certainly that has been the case through January—the Russell 2000 Value Index has thus far held up better than its growth counterpart.)

WHERE ARE WE NOW?
The question is: Where are we now? We first want to stress that while the equity and other capital markets are under pressure, not all the news is grim. Several notable bright spots are present that militate against the rising wave of recessionary anxieties: job growth in the U.S. remains steady, while real incomes, as well as expectations, have risen. Perhaps more important is the fact that household formations picked up in 2015 and many expect them to rise again in 2016. The economy also received a probable boost late in December when the government passed a budget deal that increased spending and put business tax credits in place. These moves, which could add as much as 0.7% to U.S. GDP in 2016, could also help areas as diverse as technology, defense, consumer, and nonresidential construction. With so much of the global spotlight on China, it’s also worth mentioning that the U.S. economy remains by far the world’s largest—and has little dependence on that of China.
     That being said, many investors are understandably anxious over the “4 Cs” of commodities, currency, credit, and China—worries that were intense even before the massive sell-off that opened 2016. As mentioned, we peg the troubled state of the credit markets as the greatest concern for small-cap investors, especially in the near term. Yet we also believe that these uncertain conditions offer fertile ground for disciplined stock pickers (though January’s ground probably felt more like quicksand for many). The driving force behind each of our distinct investment strategies—value, growth,
and core—is a bottom-up approach, the result of our firm conviction that deep knowledge of companies and their industry dynamics ultimately matters more than the larger macro picture. While the last five years have not been kind to these approaches, we think the seismic shifts in the markets of late are another sign that the next five years will be different.
     In addition to the tightening credit climate, we think that the world is moving out of an intensely macro-focused phase into a more historically typical period that will feature lower equity returns. Long-term returns for the Russell 2000 have shifted from spectacular highs to levels more in line with their historical averages. We think returns for the next three-to-five years will be positive, but lower than, or close to, their long-term average. In this environment, we expect leadership to come from companies with low leverage, high returns on invested capital, and other financial and/or operational strengths, which should bode well for many of our holdings in more cyclical areas. So while there may be additional pain for many small-caps in the initial phase of a significant credit or other market-rocking event, we think financially self-supporting companies should emerge in far better condition than their more highly leveraged and/or less profitable peers. Earnings will matter. Their increasing importance should cause a shift in small-cap leadership away from unprofitable or money-losing businesses toward profitable ones. We see earnings growth, as opposed to P/E expansion, driving market returns as stocks seek to regain their balance later in 2016.
     To be sure, we saw evidence of positive change during January 2016. As equity prices were falling at an alarming rate, our three closed-end portfolios held up very well. In fact, each outpaced their respective benchmarks in January. In addition, Royce Value Trust outperformed the Russell 2000 on an NAV basis for the one-year period ended January 31, 2016. While not wanting to make too much of a short-term period, these developments bolster our optimism for better times ahead.


Sincerely,
    Charles M. Royce   Christopher D. Clark   Francis D. Gannon Chief Executive Officer,   President and Co-Chief Investment Officer,   Co-Chief Investment Officer, Royce & Associates, LLC   Royce & Associates, LLC   Royce & Associates, LLC           January 31, 2016        
4 | This page is not part of the 2015 Annual Report to Stockholders
 

Performance

    NAV Average Annual Total Returns As of December 31, 2015 (%)                                   SINCE   INCEPTION       1-YR   3-YR   5-YR   10-YR   15-YR   20-YR   25-YR   INCEPTION   DATE   Royce Global Value Trust   -3.44   N/A   N/A   N/A   N/A   N/A   N/A   -3.21   10/17/13   Royce Micro-Cap Trust   -11.72   9.73   7.43   6.12   9.30   10.01   N/A   10.33   12/14/93   Royce Value Trust   -8.09   7.51   5.22   5.19   7.57   9.30   11.12   10.03   11/26/86   INDEX                                       Russell 2000 Index   -4.41   11.65   9.19   6.80   7.28   8.03   10.50   N/A   N/A   Russell Microcap Index   -5.16   12.70   9.23   5.13   7.99   N/A   N/A   N/A   N/A   Russell Global Small Cap Index   -1.78   6.91   4.35   5.10   7.65   N/A   N/A   N/A   N/A  
Important Performance and Risk Information
All performance information in this Review and Report reflects past performance, is presented on a total return basis, net of the Fund’s investment advisory fee, and reflects the reinvestment of distributions. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, so that shares may be worth more or less than their original cost when sold. Current performance may be higher or lower than performance quoted. Current month-end performance may be obtained at www.roycefunds.com. The Funds are closed-end registered investment companies whose respective shares of common stock may trade at a discount to the net asset value. Shares of each Fund’s common stock are also subject to the market risk of investing in the underlying portfolio securities held by each Fund. Certain immaterial adjustments were made to the net assets of Royce Micro-Cap Trust at 12/31/12, as well as 12/31/14, for financial reporting purposes, and as a result the net asset value originally calculated on that date and the total return based on that net asset value differs from the adjusted net asset value and total return reported in the Financial Highlights. All indexes referenced are unmanaged and capitalization-weighted. Each index’s returns include net reinvested dividends and/or interest income. Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group. The Russell 2000 Index is an index of domestic small-cap stocks that measures the performance of the 2,000 smallest publicly traded U.S. companies in the Russell 3000 Index. The Russell Microcap Index includes 1,000 of the smallest securities in the small-cap Russell 2000 Index, along with the next smallest eligible securities as determined by Russell. The Russell Global Small Cap Index is an unmanaged, capitalization-weighted index of global small-cap stocks. The performance of an index does not represent exactly any particular investment, as you cannot invest directly in an index. Index returns include net reinvested dividends and/or interest income. Royce Value, Micro-Cap and Global Value Trust shares of common stock trade on the NYSE. Royce Fund Services, Inc (“RFS”) is a member of FINRA and has filed this Review and Report with FINRA on behalf of each Fund. RFS is not an underwriter or distributor of any of the Funds.

This page is not part of the 2015 Annual Report to Stockholders | 5


 
MANAGER’S DISCUSSION Royce Global Value Trust (RGT)
Chuck Royce   FUND PERFORMANCE
Royce Global Value Trust (NYSE: RGT) fell 3.4% on an NAV (net asset value) basis and lost 6.1% on a market price basis in 2015, lagging its unleveraged benchmark, the Russell Global Small Cap Index, which declined 1.8% for the same period. The Fund struggled on a relative basis through much of the year. For the year-to-date period ended June 30, 2015, RGT gained 5.6% on an NAV basis and 3.4% on a market price basis versus a gain of 6.4% for the Russell Global Small Cap for the same period. Stocks then suffered a sweeping correction in the third quarter, with many global and domestic indexes enduring double-digit losses. The Fund underperformed in the third quarter, down 12.4% on an NAV basis and 15.6% on a market price basis versus a decline of 11.6% for the Russell Global Small Cap Index. During the fourth quarter, RGT participated fully when stocks first rebounded in October, slipped behind its benchmark in November, and held its value better when markets turned down again in December. For the fourth quarter as a whole, the Fund increased 4.3% based on NAV and advanced 7.7% based on market price while the Russell Global Small Cap rose 4.4%.

WHAT WORKED... AND WHAT DIDN’T In many cases, the most important factor for our holdings was what did not happen—economies across the globe failed to accelerate with the kind of speed that would drive investors toward the more cyclical areas where we have been most actively investing. This effect was particularly noticeable for holdings in Materials, Information Technology, and Energy—three economically sensitive sectors that also posted the most significant net losses in 2015. A certain pace of growth must be present to key more robust performance for many cyclical businesses, and we simply did not see enough of it in 2015. Against this backdrop, we continued to focus on companies that in our analyses showed a combination of attractive valuation, balance sheet strength, and/or promising growth prospects.
     Net losses for the Information Technology sector were spread across a number of positions and industry groups. The largest net losses for the latter came from software, electronic equipment, instruments & components, and semiconductors & semiconductor equipment companies. However, the portfolio’s most significant detractor at the industry level was the metals & mining group. On the positive side, Health Care made a notable positive contribution, driven by strong net gains in the health care equipment & supplies group.
     At the position level, New World Department Store China posted the largest net losses, its sales slowed by the decelerating economy on the mainland. We held a small position at year-end. Dundee Corporation is a holding company based in Toronto that is involved in investment advisory, corporate finance, energy, resources, agriculture, real estate, and infrastructure. The company also holds investment portfolios in these areas. Its stock was hurt by significant exposure to the weakened commodity markets in 2015. Liking its long-term prospects, we built our stake in 2015. We acted similarly, though on a larger scale, with top-10 holding Genworth MI Canada. Shares of this residential mortgage insurer often move with energy prices, and ongoing concerns about mortgage losses in the energy-dominated western Canada continued to push its price down. True to our contrarian nature, we suspect the bulk of those losses have already been priced in.
      RGT’s top contributor was Japan’s Relo Holdings, which provides corporate fringe benefit outsourcing services, including maintenance and management services for expatriates’ homes. We like its niche business, history of raising dividends, and steady company growth throughout 2015. We took gains at various times through the year. Italy’s De’Longhi owns a collection of consumer brands in the domestic appliance market, such as coffee makers, food processors, electric ovens, kettles, toasters, and more. Growing revenues and expanding margins, driven in part by the increasing popularity of its home espresso machines, helped draw investors to its shares. We held a good-sized position at year-end.
     On a relative basis, the Fund was hurt most by Information Technology, mostly by ineffective stock selection in the software and semiconductors & semiconductor equipment industries. Conversely, stock selection was a strength both in Industrials and Health Care versus the Russell Global Small Cap.

  Top Contributors to Performance
For 2015(%)1
          Relo Holdings   0.70           De’Longhi   0.58           Santen Pharmaceutical   0.45           Value Partners Group   0.41           VZ Holding   0.38           1 Includes dividends      
  Top Detractors from Performance
For 2015(%)2
          New World Department Store China   -0.68           Dundee Corporation Cl. A   -0.55           Genworth MI Canada   -0.47           Stallergenes   -0.40           Coronation Fund Managers   -0.34           2 Net of dividends      
CURRENT POSITIONING AND OUTLOOK We expect reversals in a number of trends that should help benefit many portfolio holdings over the next few years. Our own research and regular meetings with confident management teams have made us comfortable with a contrarian, pro-cyclical bias for the portfolio. Moreover, we suspect that the protracted leadership of growth over value stocks is likely to reverse in 2016 and that companies with better balance sheets will do well in an environment of elevated corporate bond spreads. We also expect the combined effects of these reversals to put the market’s focus squarely on the attributes we emphasize, which we think are overdue for recovery.
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PERFORMANCE AND PORTFOLIO REVIEW   SYMBOLS  MARKET PRICE RGT NAV XRGTX
  Performance Average Annual Total Return (%) Through 12/31/15     JUL-DEC 20151   1-YR   SINCE INCEPTION (10/17/13)   RGT (NAV)   -8.58   -3.44   -3.21   1Not Annualized            

Market Price Performance History Since Inception (10/17/13)
Cumulative Performance of Investment1
      1-YR     5-YR   10-YR   15-YR   20-YR   SINCE INCEPTION (10/17/13)   RGT   -6.1%     N/A   N/A   N/A   N/A   -14.3%  

1
Reflects the cumulative performance experience of a continuous common stockholder who purchased one share at inception ($8.975 IPO) and reinvested all distributions.
2
Reflects the actual month-end market price movement of one share as it has traded on NYSE.


The Morningstar Style Map is the Morningstar Style BoxTM with the center 75% of fund holdings plotted as the Morningstar Ownership ZoneTM The Morningstar Style Box is designed to reveal a fund’s investment strategy. The Morningstar Ownership Zone provides detail about a portfolio’s investment style by showing the range of stock sizes and styles. The Ownership Zone is derived by plotting each stock in the portfolio within the proprietary Morningstar Style Box. Over time, the shape and location of a fund's ownership zone may vary. See page 58 for additional information.


Top 10 Positions     % of Net Assets           Santen Pharmaceutical   1.8   Consort Medical   1.7   Virbac   1.7   Mayr-Melnhof Karton   1.7   Clarkson   1.7   Genworth MI Canada   1.6   VZ Holding   1.6   Spirax-Sarco Engineering   1.5   Shimano   1.5   Relo Holdings   1.4  

Portfolio Sector Breakdown     % of Net Assets           Industrials   24.3   Financials   23.4   Information Technology   16.7   Consumer Discretionary   14.8   Health Care   12.4   Materials   10.4   Energy   2.7   Consumer Staples   2.3   Outstanding Line of Credit, Net of Cash and Cash Equivalents   -7.0  

Calendar Year Total Returns (%)           YEAR   RGT   2015   -3.4   2014   -6.2  

Portfolio Country Breakdown1,2     % of Net Assets             United Kingdom   15.2   Japan   15.0   United States   12.7   Canada   8.5   France   8.1   Switzerland   7.1   Hong Kong   5.7   Germany   5.7   1
Represents countries that are 3% or more of net assets.
2
Securities are categorized by the country of their headquarters.


Portfolio Diagnostics           Fund Net Assets   $91 million   Number of Holdings   272   Turnover Rate   65%   Net Asset Value   $8.81   Market Price   $7.45   Net Leverage1   7%   Average Market Capitalization2   $1,367 million   Weighted Average P/E Ratio3,4   18.7x   Weighted Average P/B Ratio3   2.3x   Active Share5   97%  
Net leverage is the percentage, in excess of 100%, of the total value of equity type investments, divided by net assets.
Geometric Average. This weighted calculation uses each portfolio holding’s market cap in a way designed to not skew the effect of very large or small holdings; instead, it aims to better identify the portfolio’s center, which Royce believes offers a more accurate measure of average market cap than a simple mean or median.
Harmonic Average. This weighted calculation evaluates a portfolio as if it were a single stock and measures it overall. It compares the total market value of the portfolio to the portfolio’s share in the earnings or book value, as the case may be, of its underlying stocks.
The Fund’s P/E ratio calculation excludes companies with zero or negative earnings (7% of portfolio holdings as of 12/31/15).
Active Share is the sum of the absolute values of the different weightings of each holding in the Fund versus each holding in the benchmark, divided by two.

Important Performance and Risk Information

All performance information reflects past performance, is presented on a total return basis, net of the Fund’s investment advisory fee, and reflects the reinvestment of distributions. Past performance is no guarantee of future results. Current performance may be higher or lower than performance quoted. Returns as of the most recent month-end may be obtained at www.roycefunds.com. The market price of the Fund’s shares will fluctuate, so that shares may be worth more or less than their original cost when sold. The Fund invests primarily in securities of small- and micro-cap companies, which may involve considerably more risk than investments in securities of larger-cap companies. The Fund’s broadly diversified portfolio does not ensure a profit or guarantee against loss. From time to time, the Fund may invest a significant portion of its net assets in foreign securities, which may involve political, economic, currency and other risks not encountered in U.S. investments. Regarding the “Top Contributors” and “Top Detractors” tables shown on page 10, the sum of all contributors to, and all detractors from, performance for all securities in the portfolio would approximate the Fund’s year-to-date performance for 2015.

2015 Annual Report to Stockholders  |  7
 
MANAGER’S DISCUSSION Royce Micro-Cap Trust (RMT)
Chuck Royce   FUND PERFORMANCE
Royce Micro-Cap Trust (NYSE: RMT) was down 11.7% on an NAV (net asset value) basis and fell 16.1% on a market price basis in 2015. These results trailed those for each of its unleveraged benchmarks, the small-cap Russell 2000 Index, which lost 4.4%, and the Russell Microcap Index, which declined 5.2% for the same period. The Fund struggled versus its benchmarks throughout the year. For the year-to-date period ended June 30, 2015, RMT was down 0.5% on an NAV basis and fell 4.2% based on its market price while the Russell 2000 Index gained 4.8% and the Russell Microcap Index increased 6.0% for the same period. During the widespread correction in the third quarter, the Fund lost 13.8% on an NAV basis and lost 14.0% on a market price basis, compared to declines of 11.9% for the Russell 2000 and 13.8% for the Russell Microcap. Stock prices then revived somewhat in the fourth quarter, when RMT increased 2.9% on an NAV basis and 1.8% on a market price basis versus respective gains of 3.6% and 3.7% for the Russell 2000 and Microcap Indexes.
For a sense of how challenging the year was for small and micro-cap stocks (and the active managers who pick them), consider that the Russell 2000 lost 10.1% on an equal-weighted basis in 2015. This shows just how hard it was to find stocks that grew appreciably by year-end, especially in the more economically sensitive, cyclical areas of the market that have been our primary focus over the last few years. In this climate, we continued to focus on companies that in our analyses showed a combination of attractive valuation, balance sheet strength, and/or promising growth prospects. The Fund outperformed the Russell 2000 on an NAV basis for the 15-, 20-year, and since inception (12/14/93) periods ended December 31, 2015 while also beating the Russell Microcap on an NAV basis for the 10- and 15-year periods ended December 31, 2015. (Returns for the Russell Microcap only go back to 2000.) RMT’s average annual NAV total return since inception was 10.3%.

WHAT WORKED... AND WHAT DIDN’T
Seven of the portfolio’s 10 sectors were in the red at year-end (versus eight of 10 in negative territory for the Russell 2000). Financials detracted most by a wide margin, hampered mostly by net losses in the capital markets industry. This group includes asset managers, a business we believe we know well and in which we have many years of investment experience. So while we were disappointed in overall results for the group in 2015, we nonetheless think highly of both the recovery potential and long-term prospects for our holdings in the industry. Two of RMT’s five biggest detractors came from that group. Dundee Corporation is a holding company based in Toronto that is involved in investment advisory, corporate finance, energy, resources, agriculture, real estate, and infrastructure. The company also holds investment portfolios in these areas. Its stock was hurt by significant exposure to the weakened commodity markets in 2015. Based in Greenwich, CT., Fifth Street Asset Management is a credit-focused asset manager that also specializes in providing credit solutions to small- and mid-sized businesses. The volatile market of the second half challenged its business and slowed revenues. We built positions in both companies through much of the year.
Industrials was also a sore spot in 2015, with net losses coming from several industry groups. It is a large and highly diverse sector—home to RMT’s two biggest contributors—Frontier Services Group and Integrated Electrical Services, and its second-largest detractor, Universal Truckload Services. Frontier Services Group is a Hong Kong-based company with a base of operations in Nairobi that provides logistical services in Africa and benefited in part from the investor perception that asset growth can help fund FSG’s plan to expand its logistics network.
The largest detractor to relative performance versus the Russell 2000 on a sector basis in 2015 was Financials. Several developments negatively impacted results, including an underweight in banks, an overweight and poor stock selection in capital markets, and ineffective stock picking in the consumer finance and diversified financial services industries. Information Technology, where we were hurt by stock selection misses in the Internet software & services industry, also detracted from calendar-year results relative to the small-cap index. We received a relative advantage from our underweight in Energy as well as modest stock selection success in Health Care and Industrials.

      Top Contributors to Performance
For 2015 (%)1
          Frontier Services Group   0.59   Integrated Electrical Services   0.54   Diamond Hill Investment Group   0.34   Envivio   0.32   Hackett Group (The)   0.28   1 Includes dividends    
      Top Detractors from Performance
For 2015 (%)2
          Dundee Corporation Cl. A   -0.43   Universal Truckload Services   -0.41   Fifth Street Asset Management Cl. A   -0.39   Qumu Corporation   -0.38   LeapFrog Enterprises Cl. A   -0.35   2 Net of dividends    
CURRENT POSITIONING AND OUTLOOK
We expect reversals in a number of trends that should help benefit many portfolio holdings over the next few years. Our own research and regular meetings with confident management teams have made us comfortable with a contrarian, pro-cyclical bias for the portfolio. Moreover, we suspect that the protracted leadership of growth over value stocks is likely to reverse in 2016 and believe that companies with better balance sheets will do well in an environment of elevated corporate bond spreads. We also expect the combined effects of these reversals to put the market’s focus squarely on the attributes we emphasize, which we think are overdue for recovery.
8 | 2015 Annual Report to Stockholders
 
PERFORMANCE AND PORTFOLIO REVIEW   SYMBOLS    MARKET PRICE RMT NAV XOTCX
  Performance Average Annual Total Return (%) Through 12/31/15       JUL-DEC 20151   1-YR   3-YR   5-YR   10-YR   15-YR   20-YR   SINCE INCEPTION (12/14/93)   RMT (NAV)   -11.26   -11.72   9.73   7.43   6.12   9.30   10.01   10.33   1 Not Annualized
 
Market Price Performance History Since Inception (12/14/93)
Cumulative Performance of Investment1     1-YR   5-YR   10-YR   15-YR   20-YR   SINCE INCEPTION (12/14/93)   RMT   -16.1%   39.9%   41.1%   277.1%   533.4%   616.8%   1 Reflects the cumulative performance experience of a continuous common stockholder who purchased one share at inception ($7.50 IPO), reinvested all distributions and fully participated in the primary subscription of the Fund’s 1994 rights offering. 2 Reflects the actual month-end market price movement of one share as it has traded on NYSE and, prior to 12/1/03, on the Nasdaq.

The Morningstar Style Map is the Morningstar Style BoxTM with the center 75% of fund holdings plotted as the Morningstar Ownership ZoneTM. The Morningstar Style Box is designed to reveal a fund’s investment strategy. The Morningstar Ownership Zone provides detail about a portfolio’s investment style by showing the range of stock sizes and styles. The Ownership Zone is derived by plotting each stock in the portfolio within the proprietary Morningstar Style Box. Over time, the shape and location of a fund’s ownership zone may vary. See page 58 for additional information.

Top 10 Positions     % of Net Assets           Integrated Electrical Services   2.0   SurModics   1.8   Seneca Foods   1.3   Atrion Corporation   1.2   Zealand Pharma   1.1   Newport Corporation   1.0   Orbotech   0.9   Care.com   0.9   Cross Country Healthcare   0.9   FRP Holdings   0.9  

Portfolio Sector Breakdown     % of Net Assets           Information Technology   26.2   Financials   18.6   Industrials   16.1   Health Care   16.1   Consumer Discretionary   15.1   Materials   5.6   Consumer Staples   3.0   Energy   2.7   Utilities   0.3   Telecommunication Services   0.1   Miscellaneous   4.9   Preferred Stock   0.4   Outstanding Line of Credit, Net of Cash and Cash Equivalents   -9.1  

Calendar Year Total Returns (%)           YEAR   RMT   2015   -11.7   2014   3.5   2013   44.5   2012   17.3   2011   -7.7   2010   28.5   2009   46.5   2008   -45.5   2007   0.6   2006   22.5   2005   6.8   2004   18.7   2003   55.5   2002   -13.8   2001   23.4  

Portfolio Diagnostics           Fund Net Assets   $312 million   Number of Holdings   358   Turnover Rate   39%   Net Asset Value   $8.59   Market Price   $7.26   Net Leverage1   9%   Average Market Capitalization2   $306 million   Weighted Average P/E Ratio3,4   17.3x   Weighted Average P/B Ratio3   1.6x   Active Share5   95%   U.S. Investments (% of Net Assets)   92.6%   Non-U.S. Investments (% of Net Assets)   16.5%   1
Net leverage is the percentage, in excess of 100%, of the total value of equity type investments, divided by net assets.
  2 Geometric Average. This weighted calculation uses each portfolio holding’s market cap in a way designed to not skew the effect of very large or small holdings; instead, it aims to better identify the portfolio’s center, which Royce believes offers a more accurate measure of average market cap than a simple mean or median.   3
Harmonic Average. This weighted calculation evaluates a portfolio as if it were a single stock and measures it overall. It compares the total market value of the portfolio to the portfolio’s share in the earnings or book value, as the case may be, of its underlying stocks.
  4
The Fund’s P/E ratio calculation excludes companies with zero or negative earnings (28% of portfolio holdings as of 12/31/15).
  5
Active Share is the sum of the absolute values of the different weightings of each holding in the Fund versus each holding in the benchmark, divided by two.

Important Performance and Risk Information   All performance information reflects past performance, is presented on a total return basis, net of the Fund’s investment advisory fee, and reflects the reinvestment of distributions. Past performance is no guarantee of future results. Current performance may be higher or lower than performance quoted. Returns as of the most recent month-end may be obtained at www.roycefunds.com. Certain immaterial adjustments were made to the net assets of Royce Micro-Cap Trust at 12/31/12 and 12/31/14 for financial reporting purposes, and as a result the net asset value originally calculated on that date and the total return based on that net asset value differs from the adjusted net asset value and total return reported in the Financial Highlights. The market price of the Fund’s shares will fluctuate, so that shares may be worth more or less than their original cost when sold. The Fund normally invests in micro-cap companies, which may involve considerably more risk than investments in securities of larger-cap companies. The Fund’s broadly diversified portfolio does not ensure a profit or guarantee against loss. From time to time, the Fund may invest a significant portion of its net assets in foreign securities, which may involve political, economic, currency and other risks not encountered in U.S. investments. Regarding the “Top Contributors” and “Top Detractors” tables shown on page 8, the sum of all contributors to, and all detractors from, performance for all securities in the portfolio would approximate the Fund’s year-to-date performance for 2015.
2015 Annual Report to Stockholders | 9
 
    MANAGER’S DISCUSSION Royce Value Trust (RVT)    
Chuck Royce
FUND PERFORMANCE Royce Value Trust (NYSE: RVT) fell 8.1% on an NAV (net asset value) basis and 9.6% on a market price basis in 2015, behind both of its unleveraged small-cap benchmarks. For the same period, the Russell 2000 was down 4.4% while the S&P SmallCap 600 slid 2.0%. For the year-to-date period ended June 30, 2015, RVT gained 1.7% on an NAV basis and 0.3% based on its market price versus respective gains of 4.8% and 4.2% for the Russell 2000 and S&P SmallCap 600. The third quarter saw a significant correction for equities. In this challenging environment, the Fund was down 12.4% on an NAV basis and 14.6% on a market price basis. For the same period, the Russell 2000 fell 11.9% and the S&P SmallCap 600 was down 9.3%. Stocks then rallied in the fourth quarter through most of October and November. For the quarter as a whole, RVT advanced 3.2% based on NAV and 5.6% based on market price while the Russell 2000 increased 3.6% and the S&P SmallCap 600 rose 3.7%.
  For a sense of how challenging the year was for small-cap stocks (and the active managers who pick them), consider that the Russell 2000 lost 10.1% on an equal-weighted basis in 2015. This shows just how hard it was to find stocks that grew appreciably by year-end, especially in the more economically sensitive, cyclical areas of the market that have been our primary focus over the last few years. In this climate, we continued to focus on companies that in our analyses showed a combination of attractive valuation, balance sheet strength, and/or promising growth prospects. On an NAV and market price basis, the Fund outperformed the Russell 2000 for the 15-, 20-, 25-year, and since inception (11/26/86) periods ended December 31, 2015 while trailing the S&P SmallCap 600. RVT’s average annual NAV total return for the since inception period was 10.0%.
    WHAT WORKED... AND WHAT DIDN’T Six of the Fund’s 10 equity sectors finished the year in negative territory, which compares favorably to the eight of 10 detracting sectors in the Russell 2000. Industrials, where we were substantially overweight at the end of 2015, detracted most on an absolute basis. It also hurt relative performance, but our disadvantage resulted from greater exposure to the sector—stock selection was a net positive versus the benchmark. On an industry level, the sector’s largest net losses in Industrials came from machinery stocks, which was also a significant overweight. Long-time holding Kennametal makes tools and tooling systems, focusing on the metalworking, mining, oil, and energy industries, all of which faced sluggish industry conditions in 2015.
The Financials, Energy, Information Technology, Consumer Discretionary, and Materials sectors also posted notable net losses. At the industry level, significant detractors other than machinery included electronic equipment, instruments & components, energy equipment & services, and capital markets. Slumping commodity prices and slowing industrial activity on a near-global scale were major factors behind poor performance for these areas. Modest net gains came from Health Care and Consumer Staples.
  At the position level, RVT’s biggest detractor was Dundee Corporation, a holding company based in Toronto that is involved in investment advisory, corporate finance, energy, resources, agriculture, real estate, and infrastructure. The Company also holds investment portfolios in these areas. Its stock was hurt by its large exposure to the commodity markets. Confident in its long-term potential, we added shares in 2015. We did the same with our position in Tejon Ranch. Based in Lebec, CA., Tejon is a diversified real estate development and agribusiness company that is also one of the largest private landowners in the Golden State. Reduced revenues in its commodity-based farming and mineral resources businesses, as well as increased expenses across several business units, drove investors away from its shares.
  The largest detractor to relative performance on a sector basis in 2015 was Information Technology, where poor stock selection in the electronic equipment, instruments & components and semiconductors & semiconductor equipment industries hurt most. The combination of an underweight in banks, an overweight in capital markets, and poor stock selection in insurance all hampered relative results in Financials. Health Care’s modest net gain in the portfolio was mitigated by our significant underweight in the sector (particularly in biotech)—it detracted from results relative to the Russell 2000. We were pleased, however, with our stock-picking strength in Materials and Consumer Discretionary—two highly challenged sectors in which we sought to high-grade positions in 2015.

Top Contributors to Performance
For 2015 (%)1               Hackett Group (The)   0.59     American Woodmark   0.35     On Assignment   0.30     MarketAxess Holdings   0.30     John Bean Technologies   0.24     1 Includes dividends      
Top Detractors from Performance
For 2015 (%)2               Dundee Corporation Cl. A   -0.37     Tejon Ranch   -0.28     Kennametal   -0.25     Greenlight Capital Re Cl. A   -0.25     UTi Worldwide   -0.25     2 Net of dividends      
CURRENT POSITIONING AND OUTLOOK
We expect reversals in a number of trends that should help benefit many portfolio holdings over the next few years. Our own research and regular meetings with confident management teams have made us comfortable with a contrarian, pro-cyclical bias for the portfolio. Moreover, we suspect that the protracted leadership of growth over value stocks is likely to reverse in 2016 and believe that companies with better balance sheets will do well in an environment of elevated corporate bond spreads. We also expect the combined effects of these reversals to put the market’s focus squarely on the attributes we emphasize, which we think are overdue for recovery.

10 | 2015 Annual Report to Stockholders
 
PERFORMANCE AND PORTFOLIO REVIEW   SYMBOLS  MARKET PRICE RVT NAV XRVTX

Performance                         Average Annual Total Return (%) Through 12/31/15                     JUL-DEC 20151   1-YR   3-YR   5-YR   10-YR   15-YR   20-YR   25-YR   SINCE INCEPTION (11/26/86)   RVT (NAV)   -9.62   -8.09   7.51   5.22   5.19   7.57   9.30   11.12   10.03   1 Not Annualized                  

Market Price Performance History Since Inception (11/26/86) Cumulative Performance of Investment through 12/31/151     1-YR   5-YR   10-YR   15-YR   20-YR   SINCE INCEPTION (11/26/86)   RVT   -9.6%   28.8%   35.3%   198.7%   489.3%   1221.7%    
1 Reflects the cumulative performance of an investment made by a stockholder who purchased one share at inception ($10.00 IPO), reinvested all distributions and fully participated in primary subscriptions of the Fund’s rights offerings. 2 Reflects the actual month-end market price movement of one share as it has traded on the NYSE.

The Morningstar Style Map is the Morningstar Style BoxTM with the center 75% of fund holdings plotted as the Morningstar Ownership ZoneTM. The Morningstar Style Box is designed to reveal a fund’s investment strategy. The Morningstar Ownership Zone provides detail about a portfolio’s investment style by showing the range of stock sizes and styles. The Ownership Zone is derived by plotting each stock in the portfolio within the proprietary Morningstar Style Box. Over time, the shape and location of a fund’s ownership zone may vary. See page 58 for additional information.


Top 10 Positions     % of Net Assets           HEICO Corporation   1.1   Nautilus   1.0   Hackett Group (The)   1.0   Ash Grove Cement Cl. B   1.0   SEI Investments   1.0   On Assignment   1.0   Woodward   1.0   Coherent   1.0   MarketAxess Holdings   0.9   Reliance Steel & Aluminum   0.9  

Portfolio Sector Breakdown     % of Net Assets           Industrials   28.1   Information Technology   20.7   Financials   19.3   Consumer Discretionary   12.6   Materials   7.6   Health Care   5.2   Energy   3.7   Consumer Staples   2.4   Telecommunication Services   0.5   Utilities   0.1   Miscellaneous   5.0   Outstanding Line of Credit, Net of Cash and Cash Equivalents   -5.2  

Calendar Year Total Returns (%)           YEAR   RVT   2015   -8.1   2014   0.8   2013   34.1   2012   15.4   2011   -10.1   2010   30.3   2009   44.6   2008   -45.6   2007   5.0   2006   19.5   2005   8.4   2004   21.4   2003   40.8   2002   -15.6   2001   15.2  

Portfolio Diagnostics           Fund Net Assets   $1,072 million   Number of Holdings   493   Turnover Rate   35%   Net Asset Value   $13.56   Market Price   $11.77   Net Leverage1   5%   Average Market Capitalization2   $1,166 million   Weighted Average P/E Ratio3,4   18.1x   Weighted Average P/B Ratio3   1.8x   Active Share5   90%   U.S. Investments (% of Net Assets)   86.7%   Non-U.S. Investments (% of Net Assets)   18.5%  
1
Net leverage is the percentage, in excess of 100%, of the total value of equity type investments, divided by net assets.
  2
Geometric Average. This weighted calculation uses each portfolio holding’s market cap in a way designed to not skew the effect of very large or small holdings; instead, it aims to better identify the portfolio’s center, which Royce believes offers a more accurate measure of average market cap than a simple mean or median.
  3
Harmonic Average. This weighted calculation evaluates a portfolio as if it were a single stock and measures it overall. It compares the total market value of the portfolio to the portfolio’s share in the earnings or book value, as the case may be, of its underlying stocks.
  4
The Fund’s P/E ratio calculation excludes companies with zero or negative earnings (12% of portfolio holdings as of 12/31/15).
  5
Active Share is the sum of the absolute values of the different weightings of each holding in the Fund versus each holding in the benchmark, divided by two.

Important Performance and Risk Information  
All performance information reflects past performance, is presented on a total return basis, net of the Fund’s investment advisory fee, and reflects the reinvestment of distributions. Past performance is no guarantee of future results. Current performance may be higher or lower than performance quoted. Returns as of the most recent month-end may be obtained at www.roycefunds.com. The market price of the Fund’s shares will fluctuate, so that shares may be worth more or less than their original cost when sold. The Fund invests primarily in securities of small- and micro-cap companies, which may involve considerably more risk than investing in larger-cap companies. The Fund’s broadly diversified portfolio does not ensure a profit or guarantee against loss. Regarding the “Top Contributors” and “Top Detractors” tables shown on page 6, the sum of all contributors to, and all detractors from, performance for all securities in the portfolio would approximate the Fund’s year-to date performance for 2015.

2015 Annual Report to Stockholders | 11

History Since Inception

The following table details the share accumulations by an initial investor in the Funds who reinvested all distributions and participated fully in primary subscriptions for each of the rights offerings. Full participation in distribution reinvestments and rights offerings can maximize the returns available to a long-term investor. This table should be read in conjunction with the Performance and Portfolio Reviews of the Funds.

HISTORY       AMOUNT INVESTED   PURCHASE PRICE1   SHARES   NAV VALUE2   MARKET VALUE2     Royce Global Value Trust 10/17/13   Initial Purchase   $ 8,975   $ 8.975     1,000   $ 9,780   $ 8,975     12/11/14   Distribution $0.15           7.970     19     9,426     8,193     12/10/15   Distribution $0.10           7.230     14                 12/31/15     $ 8,975           1,033   $ 9,101   $ 7,696    
Royce Micro-Cap Trust
12/14/93   Initial Purchase   $ 7,500   $ 7.500     1,000   $ 7,250   $ 7,500     10/28/94   Rights Offering     1,400     7.000     200                 12/19/94   Distribution $0.05           6.750     9     9,163     8,462     12/7/95   Distribution $0.36           7.500     58     11,264     10,136     12/6/96   Distribution $0.80           7.625     133     13,132     11,550     12/5/97   Distribution $1.00           10.000     140     16,694     15,593     12/7/98   Distribution $0.29           8.625     52     16,016     14,129     12/6/99   Distribution $0.27           8.781     49     18,051     14,769     12/6/00   Distribution $1.72           8.469     333     20,016     17,026     12/6/01   Distribution $0.57           9.880     114     24,701     21,924     2002   Annual distribution total $0.80           9.518     180     21,297     19,142     2003   Annual distribution total $0.92           10.004     217     33,125     31,311     2004   Annual distribution total $1.33           13.350     257     39,320     41,788     2005   Annual distribution total $1.85           13.848     383     41,969     45,500     2006   Annual distribution total $1.55           14.246     354     51,385     57,647     2007   Annual distribution total $1.35           13.584     357     51,709     45,802     2008   Annual distribution total $1.193           8.237     578     28,205     24,807     3/11/09   Distribution $0.223           4.260     228     41,314     34,212     12/2/10   Distribution $0.08           9.400     40     53,094     45,884     2011   Annual distribution total $0.533           8.773     289     49,014     43,596     2012   Annual distribution total $0.51           9.084     285     57,501     49,669     2013   Annual distribution total $1.38           11.864     630     83,110     74,222     2014   Annual distribution total $2.90           10.513     1,704     86,071     76,507     2015   Annual distribution total $1.26           7.974     1,256                 12/31/15     $ 8,900           8,846   $ 75,987   $ 64,222    
1 The purchase price used for annual distribution totals is a weighted average of the distribution reinvestment prices for the year. 2 Values are stated as of December 31 of the year indicated, after reinvestment of distributions, other than for initial purchase. 3 Includes a return of capital.
12  | 2015 Annual Report to Stockholders
HISTORY       AMOUNT INVESTED   PURCHASE PRICE1   SHARES   NAV VALUE2   MARKET VALUE2     Royce Value Trust 11/26/86   Initial Purchase   $ 10,000   $ 10.000     1,000   $ 9,280   $ 10,000     10/15/87   Distribution $0.30           7.000     42                 12/31/87   Distribution $0.22           7.125     32     8,578     7,250     12/27/88   Distribution $0.51           8.625     63     10,529     9,238     9/22/89   Rights Offering     405     9.000     45                 12/29/89   Distribution $0.52           9.125     67     12,942     11,866     9/24/90   Rights Offering     457     7.375     62                 12/31/90   Distribution $0.32           8.000     52     11,713     11,074     9/23/91   Rights Offering     638     9.375     68                 12/31/91   Distribution $0.61           10.625     82     17,919     15,697     9/25/92   Rights Offering     825     11.000     75                 12/31/92   Distribution $0.90           12.500     114     21,999     20,874     9/27/93   Rights Offering     1,469     13.000     113                 12/31/93   Distribution $1.15           13.000     160     26,603     25,428     10/28/94   Rights Offering     1,103     11.250     98                 12/19/94   Distribution $1.05           11.375     191     27,939     24,905     11/3/95   Rights Offering     1,425     12.500     114                 12/7/95   Distribution $1.29           12.125     253     35,676     31,243     12/6/96   Distribution $1.15           12.250     247     41,213     36,335     1997   Annual distribution total $1.21           15.374     230     52,556     46,814     1998   Annual distribution total $1.54           14.311     347     54,313     47,506     1999   Annual distribution total $1.37           12.616     391     60,653     50,239     2000   Annual distribution total $1.48           13.972     424     70,711     61,648     2001   Annual distribution total $1.49           15.072     437     81,478     73,994     2002   Annual distribution total $1.51           14.903     494     68,770     68,927     1/28/03   Rights Offering     5,600     10.770     520                 2003   Annual distribution total $1.30           14.582     516     106,216     107,339     2004   Annual distribution total $1.55           17.604     568     128,955     139,094     2005   Annual distribution total $1.61           18.739     604     139,808     148,773     2006   Annual distribution total $1.78           19.696     693     167,063     179,945     2007   Annual distribution total $1.85           19.687     787     175,469     165,158     2008   Annual distribution total $1.723           12.307     1,294     95,415     85,435     3/11/09   Distribution $0.323           6.071     537     137,966     115,669     12/2/10   Distribution $0.03           13.850     23     179,730     156,203     2011   Annual distribution total $0.783           13.043     656     161,638     139,866     2012   Annual distribution total $0.80           13.063     714     186,540     162,556     2013   Annual distribution total $2.194           16.647     1,658     250,219     220,474     2014   Annual distribution total $1.82           14.840     1,757     252,175     222,516     2015   Annual distribution total $1.24           12.725     1,565                 12/31/15       $ 21,922           17,093   $ 231,781   $ 201,185    

1 The purchase price used for annual distribution totals is a weighted average of the distribution reinvestment prices for the year. 2 Values are stated as of December 31 of the year indicated, after reinvestment of distributions, other than for initial purchase. 3 Includes a return of capital. 4 Includes Royce Global Value Trust spin-off of $1.40 per share.
2015 Annual Report to Stockholders |  13

Distribution Reinvestment and Cash Purchase Options

Why should I reinvest my distributions?
By reinvesting distributions, a stockholder can maintain an undiluted investment in the Fund. The regular reinvestment of distributions has a significant impact on stockholder returns. In contrast, the stockholder who takes distributions in cash is penalized when shares are issued below net asset value to other stockholders.   How does the reinvestment of distributions from the Royce closed-end funds work?
The Funds automatically issue shares in payment of distributions unless you indicate otherwise. The shares are generally issued at the lower of the market price or net asset value on the valuation date.   How does this apply to registered stockholders?
If your shares are registered directly with a Fund, your distributions are automatically reinvested unless you have otherwise instructed the Funds’ transfer agent, Computershare, in writing, in which case you will receive your distribution in cash. A registered stockholder also may have the option to receive the distribution in the form of a stock certificate.   What if my shares are held by a brokerage firm or a bank?
If your shares are held by a brokerage firm, bank, or other intermediary as the stockholder of record, you should contact your brokerage firm or bank to be certain that it is automatically reinvesting distributions on your behalf. If they are unable to reinvest distributions on behalf, you should have your shares registered in your name in order to participate.   What other features are available for registered stockholders?
The Distribution Reinvestment and Cash Purchase Plans also allow registered stockholders to make optional cash purchases of shares of a Fund’s common stock directly through Computershare on a monthly basis, and to deposit certificates representing your RVT and RMT shares with Computershare for safekeeping. (RGT does not issue shares in certificated form). Plan participants are subject to a $0.75 service fee for each voluntary cash purchase under the Plans. The Funds’ investment adviser absorbed all commissions on optional cash purchases under the Plans through December 31, 2015.
  How do the Plans work for registered stockholders?
Computershare maintains the accounts for registered stockholders in the Plans and sends written confirmation of all transactions in the account. Shares in the account of each participant will be held by Computershare in non-certificated form in the name of the participant, and each participant will be able to vote those shares at a stockholder meeting or by proxy. A participant may also send stock certificates for RVT and RMT held by them to Computershare to be held in non-certificated form. RGT does not issue shares in certificated form. There is no service fee charged to participants for reinvesting distributions. If a participant elects to sell shares from a Plan account, Computershare will deduct a $2.50 service fee from the sale transaction. The Funds’ investment adviser absorbed all commissions on optional sales under the Plans through December 31, 2015. If a nominee is the registered owner of your shares, the nominee will maintain the accounts on your behalf.   How can I get more information on the Plans?
You can call an Investor Services Representative at (800) 221-4268 or you can request a copy of the Plan for your Fund from Computershare. All correspondence (including notifications) should be directed to: [Name of Fund] Distribution Reinvestment and Cash Purchase Plan, c/o Computershare, PO Box 43078, Providence, RI 02940-3078, telephone (800) 426-5523 (from 9:00 A.M. to 5:00 P.M.).
14 | 2015 Annual Report to Stockholders
Royce Global Value Trust   December 31, 2015
  Schedule of Investments Common Stocks – 107.0%     SHARES       VALUE                 AUSTRALIA 1.3%            

ALS

  10,785     $ 29,422

†Austal

  78,100       88,894

†Genworth Mortgage Insurance Australia

  215,900       430,388

Imdex 1

  473,700       68,611

Medusa Mining 1

  82,600       21,727

†Platinum Asset Management

  37,000       216,069

TFS Corporation

  143,945       165,231

Webjet

  35,600       142,154   Total (Cost $1,328,337)           1,162,496                 AUSTRIA 2.2%            

Mayr-Melnhof Karton

  12,309       1,531,756

Semperit AG Holding

  11,000       369,268

†UBM Development

  2,200       86,945   Total (Cost $1,992,208)           1,987,969                 BELGIUM 0.6%            

BHF Kleinwort Benson Group 1

  55,000       341,510

Van de Velde

  3,436       234,236   Total (Cost $439,862)           575,746                 BRAZIL 2.2%            

Brasil Brokers Participacoes 1

  205,000       67,637

CETIP - Mercados Organizados

  113,000       1,067,176

T4F Entretenimento 1

  184,500       144,445

TOTVS

  98,000       764,196   Total (Cost $3,191,202)           2,043,454                 CANADA 8.5%            

Agnico Eagle Mines 2

  20,000       525,600

AirBoss of America

  7,600       95,954

†Altus Group

  13,000       182,171

†Cameco Corporation 2

  24,500       302,085

Canyon Services Group

  24,200       71,182

†Chorus Aviation Cl. A

  17,100       69,206

†Cogeco Cable

  1,500       66,962

Computer Modelling Group

  108,000       700,903

†Dream Global Real Estate Investment Trust

  12,300       76,981

†Dundee Corporation Cl. A 1

  120,000       395,461

†Exco Technologies

  5,000       61,140

FLYHT Aerospace Solutions 1

  140,000       23,271

Franco-Nevada Corporation 2

  10,200       466,650

†Genworth MI Canada

  75,000       1,441,787

†Gluskin Sheff + Associates

  28,200       424,518

†goeasy

  8,300       113,670

†Intertape Polymer Group

  8,400       113,461

Magellan Aerospace

  27,400       318,812

Major Drilling Group International

  110,500       349,780

†Morguard Real Estate Investment Trust

  7,700       75,792

†Morneau Shepell

  11,600       121,391

Pan American Silver 2

  63,700       414,050

†RDM Corporation

  30,400       86,342

†Richelieu Hardware

  2,100       102,989

†Richmont Mines 1

  23,700       76,077

†Solium Capital 1

  28,900       146,202

Sprott

  280,600       482,639

†TMX Group

  14,000       362,116

Total Energy Services

  7,100       69,579   Total (Cost $11,695,157)           7,736,771                 CHINA 1.9%            

†China Lilang

  93,400       68,895

Daphne International Holdings 1

  1,383,000       230,408

Daqo New Energy ADR 1,2

  6,400       106,560

Noah Holdings ADR 1,2

  16,700       466,431

Pacific Online

  593,100       178,369

†TravelSky Technology

  345,000       566,159

Xtep International Holdings

  157,700       83,795   Total (Cost $2,358,843)           1,700,617                 CYPRUS 0.2%            

Globaltrans Investment GDR 1

  42,000       191,455   Total (Cost $212,014)           191,455                 DENMARK 2.5%            

Chr. Hansen Holding

  11,500       719,302

†Coloplast Cl. B

  4,500       363,225

†Columbus

  77,700       75,628

SimCorp

  8,000       451,173

Zealand Pharma 1

  32,400       710,069   Total (Cost $1,687,221)           2,319,397                 FINLAND 2.0%            

BasWare

  1,600       64,725

Nokian Renkaat

  30,500       1,083,366

†Powerflute

  52,900       69,396

Vaisala Cl. A

  24,498       636,736   Total (Cost $1,988,602)           1,854,223                 FRANCE 8.1%            

aufeminin 1

  2,100       55,839

†Cegedim 1

  2,500       86,947

†Chargeurs

  7,700       75,231

†Gaztransport Et Technigaz

  26,000       1,099,578

†HighCo

  9,700       101,591

Lectra

  6,100       80,193

Manutan International

  8,100       431,362

Neurones

  25,950       491,179

Nexity

  16,500       731,107

Prodware

  7,700       66,264

Rothschild & Co

  33,000       842,212

†Thermador Groupe

  7,100       670,428

Vetoquinol

  24,700       1,057,652

Virbac

  6,600       1,572,848   Total (Cost $7,443,064)           7,362,431                 GERMANY 5.7%            

†ADLER Real Estate 1

  17,200       265,266

†Allgeier SE

  4,300       79,145

†Balda

  27,200       67,782

†Bertrandt

  7,000       840,134

†Carl Zeiss Meditec

  17,500       542,106

†CompuGroup Medical

  10,000       366,783

†Fielmann

  7,000       514,747

KUKA

  8,000       719,692

†KWS Saat

  1,800       539,953

†Leifheit

  1,400       75,282
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2015 Annual Report to Stockholders | 15
Royce Global Value Trust     Schedule of Investments (continued)
    SHARES       VALUE                 GERMANY (continued)            

LPKF Laser & Electronics

  15,500     $ 120,524

†msg life 1

  40,700       80,131

mutares

  8,300       158,763

†SQS Software Quality Systems

  7,900       69,299

†STRATEC Biomedical

  8,000       528,414

Tomorrow Focus 1

  29,000       111,787

†VIB Vermoegen

  4,700       87,007

XING

  300       55,298   Total (Cost $4,783,019)           5,222,113                 GREECE 0.3%            

†Aegean Marine Petroleum Network

  5,000       41,800

Hellenic Exchanges - Athens Stock Exchange

  28,000       161,112

StealthGas 1,2

  17,000       58,310   Total (Cost $333,095)           261,222                 HONG KONG 5.7%            

Anxin-China Holdings 1,3

  2,500,000       18,710

China Metal International Holdings

  430,000       131,772

First Pacific

  180,000       119,229

Great Eagle Holdings

  250,000       814,508

I.T

  438,500       116,073

Le Saunda Holdings

  295,460       67,858

Luk Fook Holdings (International)

  120,100       253,947

Midland Holdings 1

  1,400,000       563,986

New World Department Store China

  2,159,700       328,448

Oriental Watch Holdings

  2,223,000       326,453

Pico Far East Holdings

  1,053,300       285,419

†Samson Holding

  589,100       72,754

Television Broadcasts

  81,000       332,874

Texwinca Holdings

  302,000       314,916

Tse Sui Luen Jewellery (International)

  142,400       42,260

Value Partners Group

  1,080,000       1,247,692

†VST Holdings

  366,600       99,038

YGM Trading

  169,400       106,684   Total (Cost $6,663,603)           5,242,621                 INDIA 2.2%            

†Bajaj Finance

  11,000       999,940

†Kewal Kiran Clothing

  6,500       215,660

†Motherson Sumi Systems

  120,000       529,253

†Videocon d2h ADR 1

  27,400       243,312   Total (Cost $1,913,481)           1,988,165                 INDONESIA 0.1%            

Supra Boga Lestari 1

  3,945,000       95,836   Total (Cost $198,065)           95,836                 IRELAND 0.6%            

†Ardmore Shipping 2

  14,100       179,352

†Keywords Studios

  75,000       225,511

†Trinity Biotech ADR Cl. A

  10,000       117,600   Total (Cost $521,325)           522,463                 ISRAEL 0.2%            

†Nova Measuring Instruments 1,2,4

  16,600       162,680   Total (Cost $181,238)           162,680                 ITALY 2.8%            

†Azimut Holding

  20,000       493,744

†Banca Sistema 1

  29,800       125,286

De’Longhi

  25,000       748,348

†DiaSorin

  14,000       732,100

†Recordati

  16,800       438,534   Total (Cost $2,087,759)           2,538,012                 JAPAN 15.0%            

†CRE

  9,400       178,708

†Daifuku

  4,400       74,917

†Descente

  6,100       77,397

EPS Holdings

  10,700       117,605

FamilyMart

  8,200       381,014

Freund Corporation

  9,500       111,243

GCA Savvian

  9,900       101,193

†Horiba

  17,500       675,532

Itoki Corporation

  19,400       138,218

†Leopalace21 Corporation 1

  29,400       158,855

†Meitec Corporation

  33,700       1,152,671

Milbon

  3,100       126,525

MISUMI Group

  81,800       1,126,465

†Nihon Kohden

  18,500       445,803

Nishikawa Rubber

  8,200       132,273

Nitto Kohki

  6,300       134,489

†Outsourcing

  3,200       84,102

†Pasona Group

  9,700       69,238

†Poletowin Pitcrew Holdings

  9,000       85,117

†Pressance Corporation

  4,800       159,061

Relo Holdings

  10,600       1,271,789

Santen Pharmaceutical

  102,000       1,677,435

Shimano

  9,100       1,393,770

SPARX Group

  54,200       127,748

Sun Frontier Fudousan

  14,700       107,706

†Takara Leben

  13,000       72,098

†Tenpos Busters

  3,900       64,511

†TOTO

  20,700       725,771

Trancom

  19,600       1,086,106

†Trend Micro

  20,000       811,305

†USS

  45,000       677,055

Zuiko Corporation

  4,400       171,453   Total (Cost $11,367,976)           13,717,173                 MALAYSIA 0.3%            

CB Industrial Product Holding

  141,000       67,289

Media Prima

  199,500       59,091

†Scientex

  57,800       131,093   Total (Cost $280,444)           257,473                 MEXICO 0.8%            

Bolsa Mexicana de Valores

  250,000       332,037

†Consorcio ARA SAB de CV

  393,300       136,923

Fresnillo

  15,000       156,997

†Grupo SIMEC Ser. B 1

  33,100       73,423   Total (Cost $860,344)           699,380                 NETHERLANDS 0.1%            

†Lucas Bols Holding

  2,700       65,362   Total (Cost $58,086)           65,362  
16 | 2015 Annual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
    December 31, 2015
  Schedule of Investments (continued)       SHARES       VALUE                 NEW ZEALAND 0.8%            

†Fisher & Paykel Healthcare

  75,000     $ 455,262

Trade Me Group

  83,000       235,654   Total (Cost $678,639)           690,916                 NORWAY 1.0%            

Ekornes

  45,000       502,519

†Kongsberg Automotive 1

  134,500       94,353

†Medistim

  13,000       78,588

TGS-NOPEC Geophysical

  15,000       237,273   Total (Cost $1,241,734)           912,733                 PHILIPPINES 0.8%            

Universal Robina

  195,000       769,549   Total (Cost $565,195)           769,549                 POLAND 0.3%            

†Warsaw Stock Exchange

  33,000       302,208   Total (Cost $459,764)           302,208                 SINGAPORE 1.0%            

†ARA Asset Management

  255,000       211,104

†Asian Pay Television Trust

  202,600       91,267

Parkson Retail Asia

  274,300       51,265

†XP Power

  20,100       430,696

†Yoma Strategic Holdings 1

  323,400       104,991   Total (Cost $1,084,408)           889,323                 SOUTH AFRICA 1.6%            

Cashbuild

  17,500       339,027

Coronation Fund Managers

  59,000       201,502

JSE

  15,000       123,850

Metrofile Holdings

  314,100       94,261

†Net 1 UEPS Technologies 1

  10,500       141,855

PSG Group

  36,500       526,431   Total (Cost $1,407,649)           1,426,926                 SOUTH KOREA 0.3%            

Eugene Technology

  12,336       135,585

Huvis Corporation

  3,900       25,693

†ISC

  1,809       43,563

Koh Young Technology

  3,000       97,653   Total (Cost $370,666)           302,494                 SPAIN 0.2%            

Atento 1,2

  21,500       209,410   Total (Cost $304,802)           209,410                 SWEDEN 0.8%            

†Addtech Cl. B

  27,000       458,577

†Dustin Group 1

  15,100       116,380

†Hoist Finance 1

  7,900       82,448

†Proact IT Group

  4,700       77,159   Total (Cost $633,741)           734,564                 SWITZERLAND 7.1%            

†Belimo Holding

  300       733,137

†Burckhardt Compression Holding

  2,075       636,333

†Burkhalter Holding

  4,500       487,400

†dorma+kaba Holding

  800       542,796

Forbo Holding

  675       791,156

†Inficon Holding

  1,700       542,270

†LEM Holding

  1,000       752,239

†Partners Group Holding

  1,600       574,457

†VZ Holding

  4,850       1,428,192   Total (Cost $6,053,580)           6,487,980                 TAIWAN 0.8%            

†Flytech Technology

  37,680       108,413

†Hota Industrial Manufacturing

  17,500       63,976

Kinik Company

  48,500       75,110

Lumax International

  87,400       115,490

Shih Her Technologies

  85,600       89,551

†Sporton International

  15,300       93,412

Taiwan Paiho

  54,200       119,405

UDE Corporation

  63,400       63,520   Total (Cost $867,356)           728,877                 TURKEY 0.4%            

Mardin Cimento Sanayii

  300,000       380,590   Total (Cost $752,323)           380,590                 UNITED ARAB EMIRATES 0.7%            

Aramex

  750,000       640,872   Total (Cost $652,528)           640,872                 UNITED KINGDOM 15.2%            

Ashmore Group

  279,000       1,053,520

†Berendsen

  30,000       474,434

†BrainJuicer Group

  9,400       49,392

†Character Group

  11,400       78,551

Clarkson

  45,600       1,510,809

†Computacenter

  9,000       113,262

Consort Medical

  92,500       1,574,819

†Conviviality

  24,000       78,927

†Diploma

  40,000       447,705

e2v technologies

  150,000       497,238

Elementis

  175,000       589,880

†Exova Group

  175,000       373,816

†Fidessa Group

  30,000       884,567

†Finsbury Food Group

  45,500       75,795

Hargreaves Services

  11,000       41,981

†ITE Group

  250,000       581,054

Jupiter Fund Management

  108,000       714,069

Mattioli Woods

  8,900       84,486

Norcros

  54,360       160,559

Pendragon

  144,600       99,534

†Polypipe Group

  117,000       601,793

†Real Estate Investors

  71,700       73,976

Rotork

  89,000       239,307

Senior

  130,000       439,847

Spirax-Sarco Engineering

  28,989       1,396,487

†Stallergenes Greer 1

  10,800       375,538

Trifast

  82,700       152,276

†Vertu Motors

  66,300       75,249

†Victrex

  18,000       475,019

†Xaar

  65,000       402,473

†Zeal Network

  2,500       105,641   Total (Cost $14,984,922)           13,822,004  
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2015 Annual Report to Stockholders | 17
Royce Global Value Trust   December 31, 2015     Schedule of Investments (continued)     SHARES       VALUE                     UNITED STATES 12.7%              

Brooks Automation 2

  18,100     $ 193,308  

†Century Casinos 1

  2,900       22,562  

Commercial Metals 2

  42,000       574,980  

Diebold 2,4

  28,800       866,592  

Diodes 1,2,4

  20,500       471,090  

EnerSys 2

  11,000       615,230  

Expeditors International of Washington 2

  10,000       451,000  

Fairchild Semiconductor International 1,2

  24,600       509,466  

†FLIR Systems

  14,100       395,787  

Greif Cl. A

  8,700       268,047  

Hallador Energy 2

  18,600       84,816  

Innospec 2,4

  12,457       676,540  

KBR 2

  59,200       1,001,664  

†Kirby Corporation 1

  8,900       468,318  

Nanometrics 1,2,4

  44,500       673,730  

†National Instruments

  19,000       545,110  

Quaker Chemical 2

  8,400       648,984  

Rogers Corporation 1,2,4

  6,000       309,420  

Schnitzer Steel Industries Cl. A 2

  19,100       274,467  

SEACOR Holdings 1,2,4

  6,000       315,360  

†SEI Investments 2

  15,000       786,000  

Sensient Technologies 2,4

  9,500       596,790  

Sun Hydraulics 2

  15,139       480,360  

Tennant Company 2

  6,200       348,812     Total (Cost $13,085,342)           11,578,433                     TOTAL COMMON STOCKS                 (Cost $104,727,594)           97,583,938                     REPURCHASE AGREEMENT 1.9%               Fixed Income Clearing Corporation, 0.03% dated 12/31/15, due 1/4/16, maturity value $1,703,006 (collateralized by obligations of various U.S. Government Agencies, 1.625% due 7/31/20, valued at $1,737,169)                 (Cost $1,703,000)           1,703,000                     TOTAL INVESTMENTS 108.9%                 (Cost $106,430,594)           99,286,938                     LIABILITIES LESS CASH AND OTHER ASSETS – (8.9)%           (8,113,378 )                                 NET ASSETS 100.0%         $ 91,173,560    
 
New additions in 2015.
1
Non-income producing.
2
All or a portion of these securities were pledged as collateral in connection with the revolving credit agreement at December 31, 2015. Total market value of pledged securities at December 31, 2015, was $12,402,589.
3
A security for which market quotations are not readily available represents 0.0% of net assets. This security has been valued at its fair value under procedures approved by the Fund’s Board of Directors. This security is defined as a Level 3 security due to the use of significant unobservable inputs in the determination of fair value. See Notes to Financial Statements.
4
At December 31, 2015, a portion of these securities were rehypothecated in connection with the Fund’s revolving credit agreement in the aggregate amount of $3,933,961.
 

Securities of Global/International Funds are categorized by the country of their headquarters, with the exception of exchange-traded funds.
 

Bold indicates the Fund’s 20 largest equity holdings in terms of December 31, 2015, market value.
 

TAX INFORMATION: The cost of total investments for Federal income tax purposes was $108,211,627. At December 31, 2015, net unrealized depreciation for all securities was $8,924,689, consisting of aggregate gross unrealized appreciation of $7,516,891 and aggregate gross unrealized depreciation of $16,441,580. The primary difference between book and tax basis cost is the timing of the recognition of losses on securities sold and mark-to-market of Passive Foreign Investment Companies.
 
18 | 2015 Annual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
Royce Global Value Trust   December 31, 2015         Statement of Assets and Liabilities           ASSETS:           Investments at value     $ 97,583,938     Repurchase agreements (at cost and value)       1,703,000     Cash and foreign currency       4,162     Receivable for investments sold       628,783     Receivable for dividends and interest       160,417     Prepaid expenses and other assets       42,990     Total Assets       100,123,290     LIABILITIES:           Revolving credit agreement       8,000,000     Payable for investments purchased       755,165     Payable for investment advisory fee       97,446     Payable for directors’ fees       9,953     Payable for interest expense       692     Accrued expenses       68,933     Deferred capital gains tax       17,541     Total Liabilities       8,949,730     Net Assets     $ 91,173,560     ANALYSIS OF NET ASSETS:           Paid-in capital - $0.001 par value per share; 10,344,899 shares outstanding (150,000,000 shares authorized)     $ 116,929,670     Undistributed net investment income (loss)       (224,615 )   Accumulated net realized gain (loss) on investments and foreign currency       (18,359,656 )   Net unrealized appreciation (depreciation) on investments and foreign currency       (7,171,839 )   Net Assets (net asset value per share - $8.81)     $ 91,173,560     Investments at identified cost     $ 104,727,594    
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2015 Annual Report to Stockholders | 19
Royce Global Value Trust     Statement of Changes in Net Assets       YEAR ENDED 12/31/15     YEAR ENDED 12/31/14                       INVESTMENT OPERATIONS:                 Net investment income (loss)   $ 985,324     $ 1,335,060     Net realized gain (loss) on investments and foreign currency     (11,820,601 )     (6,230,541 )   Net change in unrealized appreciation (depreciation) on investments and foreign currency     7,399,963       (1,573,933 )   Net increase (decrease) in net assets from investment operations     (3,435,314 )     (6,469,414 )   DISTRIBUTIONS:                 Net investment income     (1,029,597 )     (1,533,038 )   Net realized gain on investments and foreign currency               Total distributions     (1,029,597 )     (1,533,038 )   CAPITAL STOCK TRANSACTIONS:                 Reinvestment of distributions     353,733       603,492     Total capital stock transactions     353,733       603,492     Net Increase (Decrease) In Net Assets     (4,111,178 )     (7,398,960 )   NET ASSETS:                   Beginning of year     95,284,738       102,683,698     End of year (including undistributed net investment income (loss) of $(224,615) at 12/31/15
and $(199,302) at 12/31/14)
  $ 91,173,560     $ 95,284,738    
20 | 2015 Annual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
Royce Global Value Trust   Year Ended December 31, 2015         Statement of Operations    
INVESTMENT INCOME:         INCOME:         Dividends   $ 2,827,456     Foreign withholding tax     (230,967 )   Interest     29     Rehypothecation income     2,675     Securities lending     247     Total income     2,599,440     EXPENSES:           Investment advisory fees     1,198,138     Custody and transfer agent fees     115,281     Interest expense     98,993     Stockholder reports     84,590     Professional fees     37,180     Directors’ fees     29,648     Administrative and office facilities     15,090     Other expenses     35,196     Total expenses     1,614,116     Net investment income (loss)     985,324     REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY:         NET REALIZED GAIN (LOSS):           Investments     (11,798,475 )   Foreign currency transactions     (22,126 )   NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION):           Investments and foreign currency translations     7,425,832     Other assets and liabilities denominated in foreign currency     (25,869 )   Net realized and unrealized gain (loss) on investments and foreign currency     (4,420,638 )   NET INCREASE (DECREASE) IN NET ASSETS FROM INVESTMENT OPERATIONS   $ (3,435,314 )  
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2015 Annual Report to Stockholders | 21
Royce Global Value Trust   Year Ended December 31, 2015         Statement of Cash Flows    
CASH FLOWS FROM OPERATING ACTIVITIES:         Net increase (decrease) in net assets from investment operations   $ (3,435,314 )   Adjustments to reconcile net increase (decrease) in net assets from investment operations to net cash used for operating activities:          

Purchases of long-term investments

    (71,402,917 )  

Proceeds from sales and maturities of long-term investments

    65,164,724    

Net purchases, sales and maturities of short-term investments

    (1,703,000 )  

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

    (47,563 )  

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

    24,832    

Net change in unrealized appreciation (depreciation) on investments

    (7,425,832 )  

Net realized gain (loss) on investments and foreign currency

    11,820,601     Net cash used for operating activities     (7,004,469 )   CASH FLOWS FROM FINANCING ACTIVITIES:         Net increase (decrease) in revolving credit agreement     8,000,000     Distributions     (1,029,597 )   Reinvestment of distributions     353,733     Net cash provided by financing activities     7,324,136     INCREASE (DECREASE) IN CASH:     319,667     Cash and foreign currency at beginning of year     (315,505 )   Cash and foreign currency at end of year   $ 4,162    
22 | 2015 Annual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
Royce Global Value Trust     Financial Highlights This table is presented to show selected data for a share outstanding throughout each period, and to assist stockholders in evaluating the Fund’s performance for the periods presented.       YEARS ENDED   PERIOD ENDED                    12/31/15   12/31/14   12/31/131   Net Asset Value, Beginning of Period   $ 9.25     $ 10.05     $ 9.78     INVESTMENT OPERATIONS:                         Net investment income (loss)     0.10       0.13       (0.00 )   Net realized and unrealized gain (loss) on investments and foreign currency     (0.43 )     (0.77 )     0.27     Net increase (decrease) in net assets from investment operations     (0.33 )     (0.64 )     0.27     DISTRIBUTIONS:                         Net investment income     (0.10 )     (0.15 )         Net realized gain on investments and foreign currency                     Total distributions     (0.10 )     (0.15 )         CAPITAL STOCK TRANSACTIONS:                         Effect of reinvestment of distributions by Common Stockholders     (0.01 )     (0.01 )         Total capital stock transactions     (0.01 )     (0.01 )         Net Asset Value, End of Period   $ 8.81     $ 9.25     $ 10.05     Market Value, End of Period   $ 7.45     $ 8.04     $ 8.89     TOTAL RETURN: 2                         Net Asset Value     (3.44 )%     (6.23 )%     2.76 % 3 Market Value     (6.06 )%     (7.86 )%     (0.95 )% 3   RATIOS BASED ON AVERAGE NET ASSETS:                         Investment advisory fee expense     1.25 %     1.25 %     1.25 % 4   Other operating expenses     0.43 %     0.24 %     0.37 % 4   Total expenses (net)     1.68 %     1.49 %     1.62 % 4   Expenses excluding interest expense     1.58 %     1.49 %     1.62 % 4   Expenses prior to balance credits     1.68 %     1.49 %     1.62 % 4   Net investment income (loss)     1.03 %     1.30 %     (0.13 )% 4   SUPPLEMENTAL DATA:                         Net Assets End of Period (in thousands)   $ 91,174     $ 95,285     $ 102,684     Portfolio Turnover Rate     65 %     43 %     7 %   REVOLVING CREDIT AGREEMENT:                         Asset coverage     1240 %                   Asset coverage per $1,000     12,397                    
1
The Fund commenced operations on October 18, 2013.
2
The Market Value Total Return is calculated assuming a purchase of Common Stock on the opening of the first business day and a sale on the closing of the last business day of each period. Dividends and distributions are assumed for the purposes of this calculation to be reinvested at prices obtained under the Fund’s Distribution Reinvestment and Cash Purchase Plan. Net Asset Value Total Return is calculated on the same basis, except that the Fund’s net asset value is used on the purchase and sale dates instead of market value.
3
Not annualized
4
Annualized

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2015 Annual Report to Stockholders | 23

Royce Global Value Trust

Notes to Financial Statements

Summary of Significant Accounting Policies
Royce Global Value Trust, Inc. (the “Fund”), is a diversified closed-end investment company that was incorporated under the laws of the State of Maryland on February 14, 2011. The Fund commenced operations on October 18, 2013.
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 “Financial Services-Investment Companies”.

VALUATION OF INVESTMENTS:
Securities are valued as of the close of trading on the New York Stock Exchange (NYSE) (generally 4:00 p.m. Eastern time) on the valuation date. Securities that trade on an exchange, and securities traded on Nasdaq’s Electronic Bulletin Board, are valued at their last reported sales price or Nasdaq official closing price taken from the primary market in which each security trades or, if no sale is reported for such day, at their highest bid price. Other over-the-counter securities for which market quotations are readily available are valued at their highest bid price, except in the case of some bonds and other fixed income securities which may be valued by reference to other securities with comparable ratings, interest rates and maturities, using established independent pricing services. The Fund values its non-U.S. dollar denominated securities in U.S. dollars daily at the prevailing foreign currency exchange rates as quoted by a major bank. Securities for which market quotations are not readily available are valued at their fair value in accordance with the provisions of the 1940 Act, under procedures approved by the Fund’s Board of Directors, and are reported as Level 3 securities. As a general principle, the fair value of a security is the amount which the Fund might reasonably expect to receive for the security upon its current sale. However, in light of the judgment involved in fair valuations, there can be no assurance that a fair value assigned to a particular security will be the amount which the Fund might be able to receive upon its current sale. In addition, if, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and may make the closing price unreliable, the Fund may fair value the security. The Fund uses an independent pricing service to provide fair value estimates for relevant non-U.S. equity securities on days when the U.S. market volatility exceeds a certain threshold. This pricing service uses proprietary correlations it has developed between the movement of prices of non-U.S. equity securities and indices of U.S.-traded securities, futures contracts and other indications to estimate the fair value of relevant non-U.S. securities. When fair value pricing is employed, the prices of securities used by the Fund may differ from quoted or published prices for the same security. Investments in money market funds are valued at net asset value per share.
Various inputs are used in determining the value of the Fund’s investments, as noted above. These inputs are summarized in the three broad levels below:
  Level 1 quoted prices in active markets for identical securities.   Level 2
other significant observable inputs (including quoted prices for similar securities, foreign securities that may be fair valued and repurchase agreements). The table below includes all Level 2 securities. Any Level 2 securities with values based on quoted prices for similar securities would be noted in the Schedule of Investments.
  Level 3
significant unobservable inputs (including last trade price before trading was suspended, or at a discount thereto for lack of marketability or otherwise, market price information regarding other securities, information received from the company and/or published documents, including SEC filings and financial statements, or other publicly available information).
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2015. For a detailed breakout of common stocks by country, please refer to the Schedule of Investments.
    LEVEL 1   LEVEL 2   LEVEL 3   TOTAL   Common Stocks   $21,678,424   $75,886,804   $18,710   $97,583,938   Cash Equivalents                  –      1,703,000            –      1,703,000  

For the year ended December 31, 2015, certain securities have transferred in and out of Level 1, Level 2 and Level 3 measurements. The Fund recognizes transfers between levels as of the end of the reporting period. At December 31, 2015, securities valued at $42,260 were transferred from Level 2 to Level 1 and securities valued at $18,710 were transferred from Level 2 to Level 3 within the fair value hierarchy.

24  |  2015 Annual Report to Stockholders


Royce Global Value Trust

Notes to Financial Statements (continued)

VALUATION OF INVESTMENTS (continued):

Level 3 Reconciliation:

            REALIZED AND UNREALIZED         BALANCE AS OF 12/31/14   TRANSFERS IN   GAIN (LOSS)1   BALANCE AS OF 12/31/15   Common Stocks   $ –   $18,710   $ –   $18,710   1
The net change in unrealized appreciation (depreciation) is included in the accompanying Statement of Operations. Change in unrealized appreciation (depreciation) includes net unrealized appreciation (depreciation) resulting from changes in investment values during the reporting period and the reversal of previously recorded unrealized appreciation (depreciation) when gains or losses are realized. Net realized gain (loss) from investments and foreign currency transactions is included in the accompanying Statement of Operations.

REPURCHASE AGREEMENTS:
      The Fund may enter into repurchase agreements with institutions that the Fund’s investment adviser has determined are creditworthy. The Fund restricts repurchase agreements to maturities of no more than seven days. Securities pledged as collateral for repurchase agreements, which are held until maturity of the repurchase agreements, are marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest). Repurchase agreements could involve certain risks in the event of default or insolvency of the counter-party, including possible delays or restrictions upon the ability of the Fund to dispose of its underlying securities. The remaining contractual maturity of the repurchase agreement held by the Fund at December 31, 2015 is overnight and continuous.

FOREIGN CURRENCY:
      Net realized foreign exchange gains or losses arise from sales and maturities of short-term securities, sales of foreign currencies, expiration of currency forward contracts, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, including investments in securities at the end of the reporting period, as a result of changes in foreign currency exchange rates.

SECURITIES LENDING:
      The Fund loans securities through a lending agent to qualified institutional investors for the purpose of realizing additional income. Collateral for the Fund on all securities loaned is accepted in cash and cash equivalents and invested temporarily by the custodian. The collateral maintained is at least 100% of the current market value of the loaned securities. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund retains the risk of any loss on the securities on loan as well as incurring the potential loss on investments purchased with cash collateral received for securities lending. The Fund’s securities lending income consists of the income earned on investing cash collateral, plus any premium payments received for lending certain securities, less any rebates paid to borrowers and lending agent fees associated with the loan. The lending agent is not affiliated with Royce. No securities were on loan at December 31, 2015.

DISTRIBUTIONS AND TAXES:
      As a qualified regulated investment company under Subchapter M of the Internal Revenue Code, the Fund is not subject to income taxes to the extent that it distributes substantially all of its taxable income for its fiscal year. The Schedule of Investments includes information regarding income taxes under the caption “Tax Information”.
      The Fund pays any dividends and capital gain distributions annually in December. Because federal income tax regulations differ from generally accepted accounting principles, income and capital gain distributions determined in accordance with tax regulations may differ from net investment income and realized gains recognized for financial reporting purposes. Accordingly, the character of distributions and composition of net assets for tax purposes differ from those reflected in the accompanying financial statements.

CAPITAL GAINS TAXES:
      The Fund is subject to a tax imposed on short-term capital gains on securities of issuers domiciled in certain countries. The Fund records an estimated deferred tax liability for these securities that have been held for less than one year. This amount, if any, is reported as deferred capital gains tax in the accompanying Statement of Assets and Liabilities, assuming those positions were disposed of at the end of the period, and accounted for as a reduction in the market value of the security.

INVESTMENT TRANSACTIONS AND RELATED INVESTMENT INCOME:
      Investment transactions are accounted for on the trade date. Dividend income is recorded on the ex-dividend date. Non-cash dividend income is recorded at the fair market value of the securities received. Interest income is recorded on an accrual basis. Premium and discounts on debt securities are amortized using the effective yield-to-maturity method. Realized gains and losses from investment transactions are determined on the basis of identified cost for book and tax purposes.

2015 Annual Report to Stockholders  |  25


Royce Global Value Trust

Notes to Financial Statements (continued)

EXPENSES:
      The Fund incurs direct and indirect expenses. Expenses directly attributable to the Fund are charged to the Fund’s operations, while expenses applicable to more than one of the Royce Funds are allocated equitably. Certain personnel, occupancy costs and other administrative expenses related to the Funds are allocated by Royce & Associates, LLC (“Royce”) under an administration agreement and are included in administrative and office facilities and professional fees.

COMPENSATING BALANCE CREDITS:
      The Fund has an arrangement with its custodian bank, whereby a portion of the custodian’s fee is paid indirectly by credits earned on the Fund’s cash on deposit with the bank. This deposit arrangement is an alternative to purchasing overnight investments. Conversely, the Fund pays interest to the custodian on any cash overdrafts, to the extent they are not offset by credits earned on positive cash balances.

Capital Stock:
      The Fund issued 48,927 and 75,721 shares of Common Stock as reinvestment of distributions for the years ended December 31, 2015 and December 31, 2014, respectively.

Borrowings:
      The Fund has entered into a revolving credit agreement (the credit agreement) with BNP Paribas Prime Brokerage Inc. (BNPP). The Fund pays a commitment fee of 0.50% per annum on the unused portion of the credit agreement. The credit agreement has a 360-day rolling term that resets daily; however, if the Fund exceeds certain net asset value triggers, the credit agreement may convert to a 60-day rolling term that resets daily. The Fund is required to pledge portfolio securities as collateral in an amount up to two times the loan balance outstanding and has granted a security interest in the securities pledged to, and in favor of, BNPP as security for the loan balance outstanding. If the Fund fails to meet certain requirements, or maintain other financial covenants required under the credit agreement, the Fund may be required to repay immediately, in part or in full, the loan balance outstanding under the credit agreement necessitating the sale of portfolio securities at potentially inopportune times. The credit agreement also permits, subject to certain conditions, BNPP to rehypothecate portfolio securities pledged by the Fund up to the amount of the loan balance outstanding. The Fund continues to receive payments in lieu of dividends and interest on rehypothecated securities. The Fund also has the right under the credit agreement to recall the rehypothecated securities from BNPP on demand. If BNPP fails to deliver the recalled security in a timely manner, the Fund is compensated by BNPP for any fees or losses related to the failed delivery or, in the event a recalled security is not returned by BNPP, the Fund, upon notice to BNPP, may reduce the loan balance outstanding by the amount of the recalled security failed to be returned. The Fund receives a portion of the fees earned by BNPP in connection with the rehypothecation of portfolio securities.
       As of December 31, 2015, the Fund has outstanding borrowings of $8,000,000. During the year ended December 31, 2015, the Fund borrowed an average daily balance of $7,693,151 at a weighted average borrowing cost of 1.27%. The maximum amount outstanding during the year ended December 31, 2015 was $8,000,000. As of December 31, 2015, the aggregate value of rehypothecated securities was $3,933,961. During the year ended December 31, 2015, the Fund earned $2,675 in fees from rehypothecated securities.

Investment Advisory Agreement:
      The Investment Advisory Agreement between Royce and the Fund provides for fees to be paid at an annual rate of 1.25% of the Fund’s average daily net assets. For the year ended December 31, 2015, the Fund accrued and paid Royce investment advisory fees totaling $1,198,138.

Purchases and Sales of Investment Securities:
      For the year ended December 31, 2015, the costs of purchases and proceeds from sales of investment securities, other than short-term securities, amounted to $72,146,832 and $65,666,166, respectively.
      Cross trades were executed by the Fund pursuant to Rule 17a-7 under the 1940 Act. Cross trading is the buying or selling of portfolio securities between funds to which R&A serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7. Cross trades for the year ended December 31, 2015, were as follows:

PURCHASES   SALES   REALIZED GAIN (LOSS)   $10,074,569   $1,041,581   $(148,026)  

Tax Information:
      Distributions during the years ended December 31, 2015 and 2014, were characterized as follows for tax purposes:

ORDINARY INCOME   LONG-TERM CAPITAL GAINS   2015   2014   2015   2014   $1,029,597   $1,533,038   $  –   $  –  

26  |  2015 Annual Report to Stockholders


Royce Global Value Trust

Tax Information (continued):

      The tax basis components of distributable earnings at December 31, 2015, were as follows:

    UNDISTRIBUTED LONG-TERM       QUALIFIED LATE YEAR     UNDISTRIBUTED   CAPITAL GAINS OR   NET UNREALIZED   ORDINARY AND   TOTAL ORDINARY   (CAPITAL LOSSES   APPRECIATION   POST-OCTOBER LOSS   DISTRIBUTABLE INCOME   NOT SUBJECT TO EXPIRATION)   (DEPRECIATION)1   DEFERRALS2   EARNINGS   $23,117   $(16,563,303)   $(8,952,873)   $(263,051)   $(25,756,110)   1 Includes timing differences on foreign currency, recognition of losses on securities sold and mark-to-market of Passive Foreign Investment Companies. 2
Under the current tax law, capital losses and qualified late year ordinary losses incurred after October 31 may be deferred and treated as occurring on the first day of the following fiscal year.

      For financial reporting purposes, capital accounts and distributions to stockholders are adjusted to reflect the tax character of permanent book/tax differences. For the year ended December 31, 2015, the Fund recorded the following permanent reclassifications, which relate primarily to current publicly traded partnerships, foreign currency transactions, foreign capital gains tax and gains from the sale of Passive Foreign Investment Companies. Results of operations and net assets were not affected by these reclassifications.

UNDISTRIBUTED NET   ACCUMULATED NET INVESTMENT INCOME   REALIZED GAIN (LOSS)   $18,961   $(18,961)  

      Management has analyzed the Fund’s tax positions taken on federal income tax returns for all open tax years (2013-2015) and has concluded that as of December 31, 2015, no provision for income tax is required in the Fund’s financial statements.

2015 Annual Report to Stockholders  |  27


Royce Global Value Trust

Report of Independent Registered Public Accounting Firm

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

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statement of operations, of changes in net assets, and of cash flows and the financial highlights present fairly, in all material respects, the financial position of Royce Global Value Trust, Inc. (the “Fund”) at December 31, 2015, the results of its operations, the changes in its net assets, its cash flows and its financial highlights for the year then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit, which included confirmation of securities at December 31, 2015 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. The statement of changes in net assets for the year ended December 31, 2014 and the financial highlights for each of the fiscal periods presented in the period ended December 31, 2014 were audited by other independent accountants whose report dated February 23, 2015 expressed an unqualified opinion on those statements.

PricewaterhouseCoopers LLP Baltimore, Maryland February 23, 2016

28 | 2015 Annual Report to Stockholders


Royce Micro-Cap Trust   December 31, 2015
  Schedule of Investments           Common Stocks – 108.7%               SHARES     VALUE               CONSUMER DISCRETIONARY 15.1%           AUTO COMPONENTS - 2.6%          

Drew Industries 1,2

  32,800   $ 1,997,192

Fuel Systems Solutions 3

  86,000     420,540

Global & Yuasa Battery

  50,500     1,753,292

Motorcar Parts of America 3

  45,100     1,524,831

Standard Motor Products

  61,853     2,353,507                     8,049,362           DISTRIBUTORS - 1.3%          

†Fenix Parts 3

  351,200     2,384,648

Weyco Group

  59,600     1,594,896                     3,979,544           DIVERSIFIED CONSUMER SERVICES - 2.2%          

American Public Education 3

  73,200     1,362,252

Capella Education

  1,300     60,086

Collectors Universe

  96,100     1,489,550

Liberty Tax Cl. A 1

  108,264     2,579,931

Lincoln Educational Services 3

  100,000     199,000

†Universal Technical Institute

  270,000     1,258,200                     6,949,019           HOTELS, RESTAURANTS & LEISURE - 0.9%          

†Century Casinos 3

  196,822     1,531,275

†Lindblad Expeditions Holdings 3

  122,400     1,359,864                     2,891,139           HOUSEHOLD DURABLES - 2.4%          

Cavco Industries 3

  20,391     1,698,774

Ethan Allen Interiors 1

  50,100     1,393,782

Flexsteel Industries 1

  20,900     923,362

iRobot Corporation 1,2,3

  15,000     531,000

Lifetime Brands 1

  130,794     1,734,328

Stanley Furniture 3

  93,468     260,776

Universal Electronics 3

  15,100     775,385                     7,317,407           INTERNET & CATALOG RETAIL - 1.2%          

Blue Nile 1,2,3

  59,400     2,205,522

FTD Companies 3

  61,500     1,609,455                     3,814,977           LEISURE PRODUCTS - 0.9%          

Nautilus 3

  128,600     2,150,192

Smith & Wesson Holding Corporation 1,3

  31,700     696,766

Sturm, Ruger & Co.

  1,100     65,571                     2,912,529           MEDIA - 0.7%          

†New Media Investment Group

  52,800     1,027,488

Rentrak Corporation 3

  24,800     1,178,744                     2,206,232           SPECIALTY RETAIL - 1.5%          

Destination Maternity

  245,500     2,140,760

Kirkland’s

  7,900     114,550

MarineMax 3

  5,400     99,468

Shoe Carnival 1

  31,628     733,770

Stage Stores 1

  15,000     136,650

Systemax 1,2,3

  74,000     636,400

TravelCenters of America LLC 3

  2,900     27,260

West Marine 3

  86,000     730,140                     4,618,998           TEXTILES, APPAREL & LUXURY GOODS - 1.4%          

Crown Crafts

  135,459     1,150,047

Culp

  32,900     837,963

J.G. Boswell Company 4

  2,490     1,556,250

YGM Trading

  1,482,000     933,332                     4,477,592   Total (Cost $44,856,058)         47,216,799               CONSUMER STAPLES 3.0%           BEVERAGES - 0.2%          

Crimson Wine Group 3,4

  58,124     501,610           FOOD PRODUCTS - 2.8%          

Binggrae 3

  18,078     1,050,086

Farmer Bros. 1,3

  45,100     1,455,377

John B. Sanfilippo & Son

  21,700     1,172,451

Landec Corporation 3

  75,610     894,466

Limoneira Company

  6,400     95,616

Seneca Foods Cl. A 3

  51,400     1,489,572

Seneca Foods Cl. B 3

  42,500     1,356,600

SunOpta 3

  162,081     1,108,634

Waterloo Investment Holdings 3,5

  806,207     225,738                     8,848,540   Total (Cost $6,932,220)         9,350,150               ENERGY 2.7%           ENERGY EQUIPMENT & SERVICES - 1.6%          

Canadian Energy Services & Technology

  25,000     70,102

Dawson Geophysical 3

  73,654     254,843

†Era Group 3

  212,435     2,368,650

Geospace Technologies 1,3

  9,500     133,665

Gulf Island Fabrication

  103,216     1,079,639

Matrix Service 1,3

  25,300     519,662

Newpark Resources 3

  8,000     42,240

North American Energy Partners

  50,000     86,500

Pioneer Energy Services 1,2,3

  57,500     124,775

Tesco Corporation 1

  58,000     419,920                     5,099,996           OIL, GAS & CONSUMABLE FUELS - 1.1%          

Ardmore Shipping

  15,500     197,160

†Dorchester Minerals L.P.

  106,127     1,049,596

Permian Basin Royalty Trust

  266,333     1,347,645

StealthGas 3

  186,085     638,272                     3,232,673   Total (Cost $13,283,624)         8,332,669               FINANCIALS 18.6%           BANKS - 2.3%          

Bank of N.T. Butterfield & Son

  438,100     854,295

BCB Holdings 3

  526,221     65,939

Blue Hills Bancorp

  50,000     765,500

Bryn Mawr Bank

  25,000     718,000

Chemung Financial 1

  31,000     857,460

Fauquier Bankshares 1

  140,200     2,147,864

First Bancorp (The)

  40,200     822,894

Peapack-Gladstone Financial

  53,606     1,105,356                     7,337,308           CAPITAL MARKETS - 9.1%          

ASA Gold and Precious Metals

  206,150     1,478,095

BHF Kleinwort Benson Group 3

  160,000     993,482

Cowen Group 3

  100,000     383,000

Diamond Hill Investment Group 1

  11,179     2,112,831

Dundee Corporation Cl. A 3

  435,000     1,433,548
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2015 Annual Report to Stockholders | 29
Royce Micro-Cap Trust
  Schedule of Investments (continued)                           SHARES     VALUE               FINANCIALS (continued)           CAPITAL MARKETS (continued)          

EQT Holdings

  43,150   $ 643,961

Fiera Capital Cl. A

  78,000     639,243

†Fifth Street Asset Management Cl. A

  259,503     845,980

INTL FCStone 1,3

  41,727     1,396,185

JZ Capital Partners

  247,999     1,401,518

Manning & Napier Cl. A

  170,600     1,448,394

Medley Management Cl. A

  153,400     872,846

MVC Capital 1

  372,400     2,744,588

Newtek Business Services

  58,500     837,720

OHA Investment

  204,620     777,556

Queen City Investments 4

  948     1,232,400

Silvercrest Asset Management Group Cl. A

  213,600     2,539,704

Sprott

  1,268,333     2,181,566

U.S. Global Investors Cl. A

  646,254     756,117

Urbana Corporation

  237,600     353,730

Westwood Holdings Group 1

  18,300     953,247

ZAIS Group Holdings Cl. A 1,2,3

  265,818     2,461,475                     28,487,186           CONSUMER FINANCE - 0.4%          

EZCORP Cl. A 1,2,3

  201,000     1,002,990

J.G. Wentworth Company Cl. A 3

  135,000     243,000                     1,245,990           DIVERSIFIED FINANCIAL SERVICES - 1.6%          

Banca Finnat Euramerica

  910,000     426,671

GAIN Capital Holdings

  25,000     202,750

PICO Holdings 1,2,3

  153,700     1,586,184

Value Line

  169,000     2,269,670

Warsaw Stock Exchange

  52,900     484,449                     4,969,724           INSURANCE - 2.0%          

†eHealth 1,2,3

  100,000     998,000

Hallmark Financial Services 3

  114,000     1,332,660

Independence Holding Company

  100,080     1,386,108

State Auto Financial 1

  73,264     1,508,506

United Fire Group 1

  29,603     1,134,091                     6,359,365           REAL ESTATE INVESTMENT TRUSTS (REITS) - 0.5%          

BRT Realty Trust 3

  230,331     1,460,298           REAL ESTATE MANAGEMENT & DEVELOPMENT - 2.7%          

AV Homes 3

  87,400     1,119,594

Forestar Group 1,2,3

  53,000     579,820

FRP Holdings 1,3

  83,981     2,850,315

Griffin Industrial Realty

  47,746     1,245,693

Hopefluent Group Holdings

  1,400,000     384,106

Marcus & Millichap 3

  1,800     52,452

Tejon Ranch 1,2,3

  112,162     2,147,902

Tejon Ranch (Warrants) 3

  13,146     92                     8,379,974   Total (Cost $67,156,570)         58,239,845               HEALTH CARE 16.1%           BIOTECHNOLOGY - 4.1%          

†Abeona Therapeutics 3

  299,643     1,006,800

Aquinox Pharmaceuticals 1,2,3

  18,622     232,403

ARIAD Pharmaceuticals 1,2,3

  114,102     713,138

†Avalanche Biotechnologies 3

  168,246     1,601,702

ChemoCentryx 3

  33,300     269,730

Fortress Biotech 3

  147,400     411,246

†Invitae Corporation 3

  144,936     1,189,925

Keryx Biopharmaceuticals 3

  271,725     1,372,211

Sangamo BioSciences 3

  191,785     1,750,997

†Stemline Therapeutics 3

  159,179     1,004,419

Zealand Pharma 3

  151,000     3,309,274                     12,861,845           HEALTH CARE EQUIPMENT & SUPPLIES - 7.0%          

†Analogic Corporation

  17,200     1,420,720

AngioDynamics 1,3

  106,061     1,287,580

Atrion Corporation 1

  9,760     3,720,512

Cerus Corporation 1,2,3

  140,000     884,800

Cynosure Cl. A 3

  1,500     67,005

Derma Sciences 3

  74,958     342,558

Exactech 1,2,3

  127,200     2,308,680

Inogen 3

  5,400     216,486

Invacare Corporation 1

  44,300     770,377

STRATEC Biomedical

  14,000     924,724

†SurModics 3

  282,000     5,716,140

Symmetry Surgical 3

  2,975     27,370

Syneron Medical 3

  69,200     533,532

TearLab Corporation 3

  85,000     118,150

Trinity Biotech ADR Cl. A

  100,500     1,181,880

Utah Medical Products

  38,100     2,230,374                     21,750,888           HEALTH CARE PROVIDERS & SERVICES - 3.8%          

Aceto Corporation 1

  79,600     2,147,608

Addus HomeCare 3

  29,500     686,760

CorVel Corporation 1,2,3

  40,000     1,756,800

Cross Country Healthcare 3

  175,400     2,874,806

Landauer

  33,743     1,110,820

National Research Cl. A

  40,033     642,129

PharMerica Corporation 1,2,3

  40,000     1,400,000

Psychemedics Corporation

  37,500     380,250

U.S. Physical Therapy

  12,600     676,368                     11,675,541           HEALTH CARE TECHNOLOGY - 0.1%          

Vocera Communications 3

  33,100     403,820           PHARMACEUTICALS - 1.1%          

Agile Therapeutics 1,2,3

  80,000     780,800

Lipocine 3

  90,467     1,169,738

Repros Therapeutics 3

  129,000     156,090

Theravance Biopharma 3

  83,509     1,368,713                     3,475,341   Total (Cost $40,357,258)         50,167,435               INDUSTRIALS 16.1%           AEROSPACE & DEFENSE - 0.4%          

CPI Aerostructures 3

  9,500     92,435

FLYHT Aerospace Solutions 3

  1,916,800     318,613

Innovative Solutions and Support 3

  142,828     394,205

SIFCO Industries 3

  45,800     435,100                     1,240,353           AIR FREIGHT & LOGISTICS - 0.2%          

Frontier Services Group 3

  3,009,086     687,591           BUILDING PRODUCTS - 1.6%          

AAON 1

  21,200     492,264

Apogee Enterprises

  15,900     691,809

Burnham Holdings Cl. A 4

  117,000     1,924,650
30 | 2015 Annual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
December 31, 2015
  Schedule of Investments (continued)                           SHARES     VALUE               INDUSTRIALS (continued)           BUILDING PRODUCTS (continued)          

Insteel Industries

  60,500   $ 1,265,660

Patrick Industries 3

  16,900     735,150                     5,109,533           COMMERCIAL SERVICES & SUPPLIES - 1.9%          

†Atento 3

  159,501     1,553,540

CompX International Cl. A

  107,500     1,225,500

Heritage-Crystal Clean 1,2,3

  235,077     2,491,816

Team 1,3

  17,500     559,300                     5,830,156           CONSTRUCTION & ENGINEERING - 3.9%          

Ameresco Cl. A 3

  275,700     1,723,125

Integrated Electrical Services 3

  568,594     6,294,335

Layne Christensen 1,2,3

  50,000     263,000

MYR Group 1,2,3

  92,300     1,902,303

Northwest Pipe 3

  101,800     1,139,142

Orbit Garant Drilling 3

  1,492,500     787,400                     12,109,305           ELECTRICAL EQUIPMENT - 1.2%          

Encore Wire 1

  18,400     682,456

LSI Industries

  93,012     1,133,816

Orion Energy Systems 3

  170,000     368,900

Powell Industries

  28,400     739,252

†Power Solutions International 1,2,3

  7,100     129,575

Preformed Line Products

  17,243     725,930                     3,779,929           INDUSTRIAL CONGLOMERATES - 0.5%          

Raven Industries 1

  93,400     1,457,040           MACHINERY - 3.7%          

CIRCOR International 1

  1,100     46,365

Columbus McKinnon

  5,300     100,170

Eastern Company (The)

  39,750     745,312

Foster (L.B.) Company 1

  99,300     1,356,438

Graham Corporation 1

  81,150     1,364,943

Hurco Companies

  57,266     1,520,985

Kadant

  34,300     1,392,923

Luxfer Holdings ADR

  59,712     587,566

NN

  103,900     1,656,166

Pfeiffer Vacuum Technology

  6,000     611,343

Sun Hydraulics

  8,200     260,186

Tennant Company 1,2

  33,500     1,884,710

Twin Disc

  7,000     73,640                     11,600,747           MARINE - 0.1%          

Clarkson

  13,000     430,713           PROFESSIONAL SERVICES - 1.5%          

Acacia Research 1

  63,700     273,273

CBIZ 3

  47,000     463,420

Franklin Covey 3

  68,400     1,145,016

Heidrick & Struggles International

  46,300     1,260,286

Kforce 1

  3,200     80,896

Mistras Group 3

  4,100     78,269

Navigant Consulting 3

  5,100     81,906

Resources Connection

  20,000     326,800

RPX Corporation 3

  104,900     1,153,900                     4,863,766           ROAD & RAIL - 0.6%          

Marten Transport

  3,300     58,410

†Patriot Transportation Holding 1,3

  29,460     683,472

Universal Truckload Services 1

  77,600     1,089,504                     1,831,386           TRADING COMPANIES & DISTRIBUTORS - 0.3%          

Houston Wire & Cable

  172,075     908,556           TRANSPORTATION INFRASTRUCTURE - 0.2%          

Touax 3

  53,197     578,121   Total (Cost $46,088,814)         50,427,196               INFORMATION TECHNOLOGY 26.2%           COMMUNICATIONS EQUIPMENT - 1.6%          

Alliance Fiber Optic Products 3

  72,000     1,091,520

Applied Optoelectronics 1,2,3

  7,500     128,700

Bel Fuse Cl. A

  67,705     985,785

CalAmp Corporation 3

  5,500     109,615

Ceragon Networks 3

  29,700     35,937

†Clearfield 3

  78,500     1,052,685

ClearOne

  25,000     323,250

Extreme Networks 3

  124,000     505,920

KVH Industries 3

  8,900     83,838

Oclaro 3

  152,300     530,004

PCTEL

  34,100     155,155

Sandvine Corporation 3

  22,700     58,074                     5,060,483           ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS - 9.2%          

Agilysys 3

  170,587     1,704,164

Deswell Industries

  524,371     749,851

DTS 3

  73,500     1,659,630

Electro Rent

  171,800     1,580,560

ePlus 3

  2,700     251,802

Fabrinet 3

  2,200     52,404

†FARO Technologies 1,2,3

  60,000     1,771,200

HollySys Automation Technologies

  56,700     1,257,606

Inficon Holding

  3,600     1,148,336

LRAD Corporation 3

  853,456     1,698,377

Mercury Systems 3

  47,500     872,100

Mesa Laboratories 1,2

  27,900     2,776,050

Newport Corporation 1,2,3

  204,423     3,244,193

Orbotech 1,2,3

  134,000     2,965,420

PC Connection

  43,716     989,730

Perceptron 3

  8,500     66,215

Richardson Electronics

  330,900     1,876,203

Rofin-Sinar Technologies 3

  85,100     2,278,978

Rogers Corporation 1,3

  1,600     82,512

Vishay Precision Group 3

  158,000     1,788,560                     28,813,891           INTERNET SOFTWARE & SERVICES - 4.8%          

Actua Corporation 3

  52,096     596,499

Care.com 1,2,3

  401,654     2,875,843

†IZEA 3,4

  798,700     315,486

Marchex Cl. B

  85,000     330,650

QuinStreet 3

  392,400     1,683,396

RealNetworks 3

  244,000     1,037,000

Reis

  25,000     593,250

SciQuest 3

  108,000     1,400,760

†Solium Capital 3

  186,300     942,473

Stamps.com 3

  9,900     1,085,139

Support.com 3

  880,658     889,465

Textura Corporation 1,2,3

  71,600     1,545,128
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2015 Annual Report to Stockholders | 31
Royce Micro-Cap Trust
  Schedule of Investments (continued)                                   SHARES       VALUE                     INFORMATION TECHNOLOGY (continued)               INTERNET SOFTWARE & SERVICES (continued)              

United Online 3

  132,800     $ 1,565,712                             14,860,801                 IT SERVICES - 2.2%              

Cass Information Systems 1

  29,150       1,500,059  

Computer Task Group 1

  333,633       2,208,650  

Hackett Group (The)

  111,100       1,785,377  

Innodata 3

  437,275       1,246,234  

Sykes Enterprises 3

  2,900       89,262                             6,829,582                 SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 4.1%              

Amtech Systems 3

  160,284       1,003,378  

Brooks Automation 1

  131,200       1,401,216  

Cascade Microtech 3

  105,200       1,709,500  

GSI Technology 3

  60,000       223,200  

Intermolecular 3

  240,000       556,800  

IXYS Corporation

  18,800       237,444  

Kulicke & Soffa Industries 3

  88,000       1,026,960  

MoSys 1,2,3

  402,275       438,480  

Nanometrics 3

  50,800       769,112  

Nova Measuring Instruments 3

  117,900       1,155,420  

Photronics 3

  186,000       2,315,700  

Rudolph Technologies 3

  2,900       41,238  

Sigma Designs 3

  62,700       396,264  

Silicon Motion Technology ADR

  35,300       1,107,008  

Ultra Clean Holdings 3

  57,000       291,840  

Xcerra Corporation 3

  26,200       158,510                             12,832,070                 SOFTWARE - 3.1%              

American Software Cl. A

  122,752       1,249,615  

BSQUARE Corporation 3

  83,675       509,581  

†Computer Modelling Group

  276,500       1,794,443  

Gigamon 3

  3,600       95,652  

Model N 3

  95,000       1,060,200  

PSI 3

  34,000       478,291  

Rubicon Project 3

  60,500       995,225  

SeaChange International 3

  295,300       1,990,322  

TiVo 3

  151,600       1,308,308                             9,481,637                 TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS - 1.2%              

Intevac 3

  251,700       1,185,507  

Kortek

  135,007       1,332,127  

Silicon Graphics International 3

  106,400       627,760  

TransAct Technologies

  78,600       674,388                             3,819,782     Total (Cost $83,689,269)           81,698,246                     MATERIALS 5.6%               CHEMICALS - 1.3%              

Balchem Corporation 1

  11,775       715,920  

FutureFuel Corporation

  85,262       1,151,037  

Quaker Chemical 1

  27,400       2,116,924                             3,983,881                 CONSTRUCTION MATERIALS - 0.7%              

Ash Grove Cement 4

  8,000       1,664,000  

Monarch Cement 4

  16,303       489,090                             2,153,090                 CONTAINERS & PACKAGING - 0.5%              

UFP Technologies 3

  62,236       1,482,461                 METALS & MINING - 3.1%              

Alamos Gold Cl. A

  236,044       776,180  

Ampco-Pittsburgh

  92,252       946,506  

Central Steel & Wire 4

  788       429,476  

Comstock Mining 3

  938,634       375,360  

Exeter Resource 3

  1,271,700       413,303  

Haynes International 1

  19,000       697,110  

Hecla Mining

  44,518       84,139  

Horsehead Holding Corporation 1,2,3

  11,900       24,395  

Imdex 3

  525,666       76,137  

MAG Silver 3

  96,050       678,113  

Major Drilling Group International

  796,857       2,522,392  

Materion Corporation

  50,000       1,400,000  

Olympic Steel

  70,000       810,600  

Pretium Resources 3

  90,000       452,699  

Universal Stainless & Alloy Products 3

  6,100       56,669  

Victoria Gold 3

  890,000       99,696                             9,842,775     Total (Cost $18,953,830)           17,462,207                     TELECOMMUNICATION SERVICES 0.1%               DIVERSIFIED TELECOMMUNICATION SERVICES - 0.1%              

ORBCOMM 3

  45,800       331,592     Total (Cost $283,906)           331,592                     UTILITIES 0.3%               GAS UTILITIES - 0.1%              

Shizuoka Gas

  40,000       255,668                 INDEPENDENT POWER & RENEWABLE ELECTRICITY PRODUCER - 0.0%              

Alterra Power 3

  450,000       149,599                 WATER UTILITIES - 0.2%              

GWR Global Water Resources

  106,000       580,675     Total (Cost $936,784)           985,942                     MISCELLANEOUS6 4.9%                 Total (Cost $16,516,798)           15,224,770                     TOTAL COMMON STOCKS                 (Cost $339,055,131)           339,436,851                     PREFERRED STOCK - 0.4%              

Seneca Foods Conv. 3,4

  45,409       1,315,499     (Cost $578,719)           1,315,499                     REPURCHASE AGREEMENT 4.6%               Fixed Income Clearing Corporation, 0.03% dated 12/31/15, due 1/4/16, maturity value $14,418,048 (collateralized by obligations of various U.S. Government Agencies, 1.625% due 7/31/20, valued at $14,708,363)   (Cost $14,418,000)           14,418,000                     TOTAL INVESTMENTS 113.7%                 (Cost $354,051,850)           355,170,350                     LIABILITIES LESS CASH AND OTHER ASSETS (13.7)%           (42,763,258 )                                 NET ASSETS 100.0%         $ 312,407,092    
32 | 2015 Annual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
December 31, 2015
  New additions in 2015. 1 All or a portion of these securities were pledged as collateral in connection with the revolving credit agreement at December 31, 2015. Total market value of pledged securities at December 31, 2015, was $82,340,578. 2 At December 31, 2015, a portion of these securities were rehypothecated in connection with the Fund’s revolving credit agreement in the aggregate amount of $29,125,481. 3 Non-income producing. 4 These securities are defined as Level 2 securities due to fair value being based on quoted prices for similar securities. See Notes to Financial Statements. 5 A security for which market quotations are not readily available represents 0.1% of net assets. This security has been valued at its fair value under procedures approved by the Fund’s Board of Directors. This security is defined as a Level 3 security due to the use of significant unobservable inputs in the determination of fair value. See Notes to Financial Statements. 6 Includes securities first acquired in 2015 and less than 1% of net assets.       Bold indicates the Fund’s 20 largest equity holdings in terms of December 31, 2015, market value.       TAX INFORMATION: The cost of total investments for Federal income tax purposes was $355,802,750. At December 31, 2015, net unrealized depreciation for all securities was $632,400, consisting of aggregate gross unrealized appreciation of $64,839,661 and aggregate gross unrealized depreciation of $65,472,061. The primary difference between book and tax basis cost is the timing of the recognition of losses on securities sold, investments in publicly traded partnerships and mark-to-market of Passive Foreign Investment Companies.  
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2015 Annual Report to Stockholders | 33
Royce Micro-Cap Trust   December 31, 2015         Statement of Assets and Liabilities    
ASSETS:         Investments at value   $ 340,752,350     Repurchase agreements (at cost and value)     14,418,000     Cash and foreign currency     50,124     Receivable for investments sold     3,346,488     Receivable for dividends and interest     567,218     Prepaid expenses and other assets     30,554     Total Assets     359,164,734     LIABILITIES:           Revolving credit agreement     45,000,000     Payable for investments purchased     1,423,302     Payable for investment advisory fee     192,194     Payable for directors’ fees     29,609     Payable for interest expense     3,892     Accrued expenses     108,645     Total Liabilities     46,757,642     Net Assets   $ 312,407,092     ANALYSIS OF NET ASSETS:         Paid-in capital - $0.001 par value per share; 36,374,786 shares outstanding (150,000,000 shares authorized)   $ 306,854,627     Undistributed net investment income (loss)     (116,177 )   Accumulated net realized gain (loss) on investments and foreign currency     4,552,877     Net unrealized appreciation (depreciation) on investments and foreign currency     1,115,765     Net Assets (net asset value per share - $8.59)   $ 312,407,092     Investments at identified cost   $ 339,633,850    
34 | 2015 Annual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
Royce Micro-Cap Trust     Statement of Changes in Net Assets
    YEAR ENDED 12/31/15   YEAR ENDED 12/31/14                     INVESTMENT OPERATIONS:                 Net investment income (loss)   $ 917,928     $ (382,932 )   Net realized gain (loss) on investments and foreign currency     21,372,239       94,504,058     Net change in unrealized appreciation (depreciation) on investments and foreign currency     (71,062,194 )     (85,903,074 )   Net increase (decrease) in net assets from investment operations     (48,772,027 )     8,218,052     DISTRIBUTIONS:                 Net investment income     (399,672 )     (1,343,094 )   Net realized gain on investments and foreign currency     (43,520,307 )     (89,530,419 )   Total distributions     (43,919,979 )     (90,873,513 )   CAPITAL STOCK TRANSACTIONS:                 Reinvestment of distributions     17,611,123       37,022,256     Total capital stock transactions     17,611,123       37,022,256     Net Increase (Decrease) In Net Assets     (75,080,883 )     (45,633,205 )   NET ASSETS:                   Beginning of year     387,487,975       433,121,180     End of year (including undistributed net investment income (loss) of $(116,177) at 12/31/15 and $(1,763,387) at 12/31/14)   $ 312,407,092     $ 387,487,975    
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2015 Annual Report to Stockholders | 35
Royce Micro-Cap Trust   Year Ended December 31, 2015         Statement of Operations    
INVESTMENT INCOME:         INCOME:         Dividends   $ 5,352,830     Foreign withholding tax     (90,772 )   Interest     312     Rehypothecation income     258,203     Total income     5,520,573     EXPENSES:           Investment advisory fees     3,350,257     Interest expense     737,528     Stockholder reports     139,562     Custody and transfer agent fees     99,018     Directors’ fees     93,378     Administrative and office facilities     58,985     Professional fees     57,082     Other expenses     66,835     Total expenses     4,602,645     Net investment income (loss)     917,928     REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY:         NET REALIZED GAIN (LOSS):           Investments     21,372,172     Foreign currency transactions     67     NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION):           Investments and foreign currency translations     (71,065,569 )   Other assets and liabilities denominated in foreign currency     3,375     Net realized and unrealized gain (loss) on investments and foreign currency     (49,689,955 )   NET INCREASE (DECREASE) IN NET ASSETS FROM INVESTMENT OPERATIONS   $ (48,772,027 )  
36 | 2015 Annual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
Royce Micro-Cap Trust   Year Ended December 31, 2015         Statement of Cash Flows    
CASH FLOWS FROM OPERATING ACTIVITIES:         Net increase (decrease) in net assets from investment operations   $ (48,772,027 )   Adjustments to reconcile net increase (decrease) in net assets from investment operations to net cash provided by operating activities:          

Purchases of long-term investments

    (146,887,346 )  

Proceeds from sales and maturities of long-term investments

    199,467,869    

Net purchases, sales and maturities of short-term investments

    (11,762,000 )  

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

    (232,001 )  

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

    (149,031 )  

Net change in unrealized appreciation (depreciation) on investments

    71,065,569    

Net realized gain (loss) on investments and foreign currency

    (21,372,239 )   Net cash provided by operating activities     41,358,794     CASH FLOWS FROM FINANCING ACTIVITIES:         Net increase (decrease) in revolving credit agreement     (15,000,000 )   Distributions     (43,919,979 )   Reinvestment of distributions     17,611,123     Net cash used for financing activities     (41,308,856 )   INCREASE (DECREASE) IN CASH:     49,938     Cash and foreign currency at beginning of year     186     Cash and foreign currency at end of year   $ 50,124    
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2015 Annual Report to Stockholders | 37
Royce Micro-Cap Trust     Financial Highlights This table is presented to show selected data for a share of Common Stock outstanding throughout each period, and to assist stockholders in evaluating the Fund’s performance for the periods presented.
    YEARS ENDED           12/31/15   12/31/14   12/31/13   12/31/12   12/31/11   Net Asset Value, Beginning of Period   $ 11.33     $ 14.12     $ 10.93     $ 9.86     $ 11.34     INVESTMENT OPERATIONS:                                         Net investment income (loss)     0.03       (0.01 )     0.01       0.15       0.04     Net realized and unrealized gain (loss) on investments and foreign currency     (1.42 )     0.25       4.64       1.58       (0.82 )   Total investment operations     (1.39 )     0.24       4.65       1.73       (0.78 )   DISTRIBUTIONS TO PREFERRED STOCKHOLDERS:                                           Net investment income                       (0.02 )     (0.02 )   Net realized gain on investments and foreign currency                       (0.09 )     (0.11 )   Total distributions to Preferred Stockholders                       (0.11 )     (0.13 )  

Net Increase (Decrease) in Net Assets Applicable to Common Stockholders from Investment Operations

    (1.39 )     0.24       4.65       1.62       (0.91 )   DISTRIBUTIONS TO COMMON STOCKHOLDERS:                                           Net investment income     (0.01 )     (0.04 )     (0.03 )     (0.08 )     (0.05 )   Net realized gain on investments and foreign currency     (1.25 )     (2.86 )     (1.35 )     (0.43 )     (0.24 )   Return of capital                             (0.24 )   Total distributions to Common Stockholders     (1.26 )     (2.90 )     (1.38 )     (0.51 )     (0.53 )   CAPITAL STOCK TRANSACTIONS:                                         Effect of reinvestment of distributions by Common Stockholders     (0.09 )     (0.13 )     (0.08 )     (0.04 )     (0.04 )   Total capital stock transactions     (0.09 )     (0.13 )     (0.08 )     (0.04 )     (0.04 )   Net Asset Value, End of Period   $ 8.59     $ 11.33     $ 14.12     $ 10.93     $ 9.86     Market Value, End of Period   $ 7.26     $ 10.08     $ 12.61     $ 9.45     $ 8.77     TOTAL RETURN: 1                                         Net Asset Value     (11.64 )%     3.46 %     44.66 %     17.23 %     (7.69 )% Market Value     (16.06 )%     3.06 %     49.42 %     13.95 %     (4.99 )%   RATIOS BASED ON AVERAGE NET ASSETS APPLICABLE TO COMMON STOCKHOLDERS:                                         Investment advisory fee expense 2     0.93 %     0.93 %     0.82 %     1.12 %     0.97 %   Other operating expenses     0.35 %     0.25 %     0.29 %     0.18 %     0.15 %   Total expenses (net) 3     1.28 %     1.18 %     1.11 %     1.30 %     1.12 %   Expenses net of fee waivers and excluding interest expense     1.08 %     1.05 %     0.96 %     1.27 %     1.12 %   Expenses prior to fee waivers and balance credits     1.28 %     1.18 %     1.11 %     1.32 %     1.15 %   Expenses prior to fee waivers     1.28 %     1.18 %     1.11 %     1.32 %     1.15 %   Net investment income (loss)     0.26 %     (0.09 )%     0.08 %     1.46 %     0.40 %   SUPPLEMENTAL DATA:                                         Net Assets Applicable to Common Stockholders, End of Period (in thousands)   $ 312,407   $ 387,488   $ 433,121   $ 318,545   $ 279,292      Liquidation Value of Preferred Stock, End of Period (in thousands)                                   $ 60,000      Portfolio Turnover Rate     39 %   41 %   29 %   28 %   30%   PREFERRED STOCK:                                         Total shares outstanding                                     2,400,000   Asset coverage per share                                   $ 141.37     Liquidation preference per share                                   $ 25.00     Average month-end market value per share                                   $ 25.41     REVOLVING CREDIT AGREEMENT:                                         Asset coverage     794 %   746 %   1062 %   808 %         Asset coverage per $1,000   $ 7,942   $ 7,458   $ 10,625   $ 8,079          
1 The Market Value Total Return is calculated assuming a purchase of Common Stock on the opening of the first business day and a sale on the closing of the last business day of each period. Dividends and distributions are assumed for the purposes of this calculation to be reinvested at prices obtained under the Fund’s Distribution Reinvestment and Cash Purchase Plan. Net Asset Value Total Return is calculated on the same basis, except that the Fund’s net asset value is used on the purchase and sale dates instead of market value. 2 The investment advisory fee is calculated based on average net assets over a rolling 36-month basis, while the above ratios of investment advisory fee expenses are based on the average net assets applicable to Common Stockholders over a 12-month basis. 3 Expense ratios based on total average net assets including liquidation value of Preferred Stock were 1.10% and 0.93% for the years ended December 31, 2012 and 2011, respectively.
38 | 2015 Annual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
Royce Micro-Cap Trust
Notes to Financial Statements   Summary of Significant Accounting Policies
Royce Micro-Cap Trust, Inc. (the “Fund”), is a diversified closed-end investment company that was incorporated under the laws of the State of Maryland on September 9, 1993. The Fund commenced operations on December 14, 1993.
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 “Financial Services-Investment Companies”.
  VALUATION OF INVESTMENTS:
Securities are valued as of the close of trading on the New York Stock Exchange (NYSE) (generally 4:00 p.m. Eastern time) on the valuation date. Securities that trade on an exchange, and securities traded on Nasdaq’s Electronic Bulletin Board, are valued at their last reported sales price or Nasdaq official closing price taken from the primary market in which each security trades or, if no sale is reported for such day, at their highest bid price. Other over-the-counter securities for which market quotations are readily available are valued at their highest bid price, except in the case of some bonds and other fixed income securities which may be valued by reference to other securities with comparable ratings, interest rates and maturities, using established independent pricing services. The Fund values its non-U.S. dollar denominated securities in U.S. dollars daily at the prevailing foreign currency exchange rates as quoted by a major bank. Securities for which market quotations are not readily available are valued at their fair value in accordance with the provisions of the 1940 Act, under procedures approved by the Fund’s Board of Directors, and are reported as Level 3 securities. As a general principle, the fair value of a security is the amount which the Fund might reasonably expect to receive for the security upon its current sale. However, in light of the judgment involved in fair valuations, there can be no assurance that a fair value assigned to a particular security will be the amount which the Fund might be able to receive upon its current sale. In addition, if, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and may make the closing price unreliable, the Fund may fair value the security. The Fund uses an independent pricing service to provide fair value estimates for relevant non-U.S. equity securities on days when the U.S. market volatility exceeds a certain threshold. This pricing service uses proprietary correlations it has developed between the movement of prices of non-U.S. equity securities and indices of U.S.-traded securities, futures contracts and other indications to estimate the fair value of relevant non-U.S. securities. When fair value pricing is employed, the prices of securities used by the Fund may differ from quoted or published prices for the same security. Investments in money market funds are valued at net asset value per share.
Various inputs are used in determining the value of the Fund’s investments, as noted above. These inputs are summarized in the three broad levels below:
    Level 1 quoted prices in active markets for identical securities.     Level 2 other significant observable inputs (including quoted prices for similar securities, foreign securities that may be fair valued and repurchase agreements). The table below includes all Level 2 securities. Level 2 securities with values based on quoted prices for similar securities are noted in the Schedule of Investments.     Level 3 significant unobservable inputs (including last trade price before trading was suspended, or at a discount thereto for lack of marketability or otherwise, market price information regarding other securities, information received from the company and/or published documents, including SEC filings and financial statements, or other publicly available information).
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2015. For a detailed breakout of common stocks by sector classification, please refer to the Schedule of Investments.

    LEVEL 1         LEVEL 2         LEVEL 3           TOTAL            Common Stocks   $ 313,789,996     $ 25,421,117     $ 225,738     $ 339,436,851     Preferred Stocks           1,315,499             1,315,499     Cash Equivalents           14,418,000             14,418,000    
For the year ended December 31, 2015, certain securities have transferred in and out of Level 1 and Level 2 measurements. The Fund recognizes transfers between levels as of the end of the reporting period. At December 31, 2015, securities valued at $643,961 were transferred from Level 2 to Level 1 within the fair value hierarchy.
2015 Annual Report to Stockholders | 39
Royce Micro-Cap Trust
Notes to Financial Statements (continued)
  VALUATION OF INVESTMENTS (continued):
Level 3 Reconciliation:                                                       REALIZED AND UNREALIZED             BALANCE AS OF 12/31/14   SALES   GAIN (LOSS)1   BALANCE AS OF 12/31/15   Common Stocks     $325,702       $1       $(99,963)       $225,738     1 The net change in unrealized appreciation (depreciation) is included in the accompanying Statement of Operations. Change in unrealized appreciation (depreciation) includes net unrealized appreciation (depreciation) resulting from changes in investment values during the reporting period and the reversal of previously recorded unrealized appreciation (depreciation) when gains or losses are realized. Net realized gain (loss) from investments and foreign currency transactions is included in the accompanying Statement of Operations.
    The following table summarizes the valuation techniques used and unobservable inputs approved by the Valuation Committee to determine the fair value of certain, material Level 3 investments. The table does not include Level 3 investments with values derived utilizing prices from prior transactions or third party pricing information with adjustments (e.g. broker quotes, pricing services, net asset values).
    FAIR VALUE AT                           IMPACT TO VALUATION FROM     12/31/15   VALUATION TECHNIQUE(S)   UNOBSERVABLE INPUT(S)   RANGE AVERAGE   AN INCREASE IN INPUT 1   Common Stocks   $ 225,738       Discounted Present Value
Balance Sheet Analysis
      Liquidity Discount       30%-40%       Decrease     1 This column represents the directional change in the fair value of the Level 3 investments that would result in an increase from the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. Significant increases and decreases in these unobservable inputs in isolation could result in significantly higher or lower fair value measurements.
REPURCHASE AGREEMENTS:
    The Fund may enter into repurchase agreements with institutions that the Fund’s investment adviser has determined are creditworthy. The Fund restricts repurchase agreements to maturities of no more than seven days. Securities pledged as collateral for repurchase agreements, which are held until maturity of the repurchase agreements, are marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest). Repurchase agreements could involve certain risks in the event of default or insolvency of the counter-party, including possible delays or restrictions upon the ability of the Fund to dispose of its underlying securities. The remaining contractual maturity of the repurchase agreement held by the Fund at December 31, 2015 is overnight and continuous.
  FOREIGN CURRENCY:
    Net realized foreign exchange gains or losses arise from sales and maturities of short-term securities, sales of foreign currencies, expiration of currency forward contracts, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, including investments in securities at the end of the reporting period, as a result of changes in foreign currency exchange rates.
  TAXES:
    As a qualified regulated investment company under Subchapter M of the Internal Revenue Code, the Fund is not subject to income taxes to the extent that it distributes substantially all of its taxable income for its fiscal year. The Schedule of Investments includes information regarding income taxes under the caption “Tax Information”.
  DISTRIBUTIONS:
    The Fund pays quarterly distributions on the Fund’s Common Stock at the annual rate of 7% of the rolling average of the prior four calendar quarter-end NAVs of the Fund’s Common Stock, with the fourth quarter distribution being the greater of 1.75% of the rolling average or the distribution required by IRS regulations. Prior to November 15, 2012, distributions to Preferred Stockholders were accrued daily and paid quarterly. Distributions to Common Stockholders are recorded on ex-dividend date. Distributable capital gains and/or net investment income were first allocated to Preferred Stockholder distributions, with any excess allocable to Common Stockholders. If capital gains and/or net investment income were allocated to both Preferred and Common Stockholders, the tax character of such allocations was proportional. 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. Distributions are determined in accordance with income tax regulations that may differ from accounting principles generally accepted in the United States of America. Permanent book and tax differences relating to stockholder distributions will result in reclassifications within the capital accounts. Undistributed net investment income may include temporary book and tax basis differences, which will reverse in a subsequent period. Any taxable income or gain remaining undistributed at fiscal year end is distributed in the following year.

40 | 2015 Annual Report to Stockholders
Royce Micro-Cap Trust   Notes to Financial Statements (continued)
INVESTMENT TRANSACTIONS AND RELATED INVESTMENT INCOME:
    Investment transactions are accounted for on the trade date. Dividend income is recorded on the ex-dividend date. Non-cash dividend income is recorded at the fair market value of the securities received. Interest income is recorded on an accrual basis. Premium and discounts on debt securities are amortized using the effective yield-to-maturity method. Realized gains and losses from investment transactions are determined on the basis of identified cost for book and tax purposes.
  EXPENSES:
    The Fund incurs direct and indirect expenses. Expenses directly attributable to the Fund are charged to the Fund’s operations, while expenses applicable to more than one of the Royce Funds are allocated equitably. Certain personnel, occupancy costs and other administrative expenses related to the Funds are allocated by Royce & Associates, LLC (“Royce”) under an administration agreement and are included in administrative and office facilities and professional fees. The Fund has adopted a deferred fee agreement that allows the Directors to defer the receipt of all or a portion of directors’ fees otherwise payable. The deferred fees are invested in certain Royce Funds until distributed in accordance with the agreement.
  COMPENSATING BALANCE CREDITS:
    The Fund has an arrangement with its custodian bank, whereby a portion of the custodian’s fee is paid indirectly by credits earned on the Fund’s cash on deposit with the bank. This deposit arrangement is an alternative to purchasing overnight investments. Conversely, the Fund pays interest to the custodian on any cash overdrafts, to the extent they are not offset by credits earned on positive cash balances.
  Capital Stock:
    The Fund issued 2,189,322 and 3,505,620 shares of Common Stock as reinvestment of distributions for years ended December 31, 2015 and December 31, 2014, respectively.
  Borrowings:
    The Fund has entered into a revolving credit agreement (the credit agreement) with BNP Paribas Prime Brokerage Inc. (BNPP). The Fund pays a commitment fee of 0.50% per annum on the unused portion of the credit agreement. The credit agreement has a 360-day rolling term that resets daily; however, if the Fund exceeds certain net asset value triggers, the credit agreement may convert to a 60-day rolling term that resets daily. The Fund is required to pledge portfolio securities as collateral in an amount up to two times the loan balance outstanding and has granted a security interest in the securities pledged to, and in favor of, BNPP as security for the loan balance outstanding. If the Fund fails to meet certain requirements, or maintain other financial covenants required under the credit agreement, the Fund may be required to repay immediately, in part or in full, the loan balance outstanding under the credit agreement necessitating the sale of portfolio securities at potentially inopportune times. The credit agreement also permits, subject to certain conditions, BNPP to rehypothecate portfolio securities pledged by the Fund up to the amount of the loan balance outstanding. The Fund continues to receive payments in lieu of dividends and interest on rehypothecated securities. The Fund also has the right under the credit agreement to recall the rehypothecated securities from BNPP on demand. If BNPP fails to deliver the recalled security in a timely manner, the Fund is compensated by BNPP for any fees or losses related to the failed delivery or, in the event a recalled security is not returned by BNPP, the Fund, upon notice to BNPP, may reduce the loan balance outstanding by the amount of the recalled security failed to be returned. The Fund receives a portion of the fees earned by BNPP in connection with the rehypothecation of portfolio securities.
     As of December 31, 2015, the Fund has outstanding borrowings of $45,000,000. During the year ended December 31, 2015, the Fund borrowed an average daily balance of $57,698,630 at a weighted average borrowing cost of 1.26%. The maximum amount outstanding during the year ended December 31, 2015 was $60,000,000. As of December 31, 2015, the aggregate value of rehypothecated securities was $29,125,481. During the year ended December 31, 2015, the Fund earned $258,203 in fees from rehypothecated securities.
  Investment Advisory Agreement:
    As compensation for its services under the Investment Advisory Agreement, Royce receives a fee comprised of a Basic Fee (“Basic Fee”) and an adjustment to the Basic Fee based on the investment performance of the Fund in relation to the investment record of the Russell 2000.
    The Basic Fee is a monthly fee equal to 1/12 of 1% (1% on an annualized basis) of the average of the Fund’s month-end net assets applicable to Common Stockholders, plus the liquidation value of outstanding Preferred Stock through October 31, 2015, for the rolling 36-month period ending with such month (the “performance period”). The Basic Fee for each month is increased or decreased at the rate of 1/12 of .05% for each percentage point that the investment performance of the Fund exceeds, or is exceeded by, the percentage change in the investment record of the Russell 2000 for the performance period by more than two percentage points. The performance period for each such month is a rolling 36-month period ending with such month. The maximum increase or decrease in the Basic Fee for any month may not exceed 1/12 of .5%. Accordingly, for each month, the maximum monthly fee rate as adjusted for performance is 1/12

2015 Annual Report to Stockholders | 41
Royce Micro-Cap Trust   Notes to Financial Statements (continued)
Investment Advisory Agreement (continued):
of 1.5% and is payable if the investment performance of the Fund exceeds the percentage change in the investment record of the Russell 2000 by 12 or more percentage points for the performance period, and the minimum monthly fee rate as adjusted for performance is 1/12 of .5% and is payable if the percentage change in the investment record of the Russell 2000 exceeds the investment performance of the Fund by 12 or more percentage points for the performance period.
    For the twelve rolling 36-month periods in 2015, the Fund’s investment performance ranged from 1% to 10% below the investment performance of the Russell 2000. Accordingly, the net investment advisory fee consisted of a Basic Fee of $3,847,073 and a net downward adjustment of $496,816 for the performance of the Fund relative to that of the Russell 2000. For the year ended December 31, 2015, the Fund accrued and paid Royce investment advisory fees totaling $3,350,257.
  Purchases and Sales of Investment Securities:
    For the year ended December 31, 2015, the costs of purchases and proceeds from sales of investment securities, other than short-term securities, amounted to $146,797,402 and $180,593,359, respectively.
    Cross trades were executed by the Fund pursuant to Rule 17a-7 under the 1940 Act. Cross trading is the buying or selling of portfolio securities between funds to which R&A serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7. Cross trades for the year ended December 31, 2015, were as follows:

PURCHASES     SALES   REALIZED GAIN (LOSS)     $27,582,337         $3,448,609       $(1,067,717)    
Tax Information:
    Distributions during the years ended December 31, 2015 and 2014, were characterized as follows for tax purposes:

ORDINARY INCOME   LONG-TERM CAPITAL GAINS   2015       2014       2015       2014     $7,501,533       $15,250,124       $36,418,446       $75,623,389    

    The tax basis components of distributable earnings at December 31, 2015, were as follows:

        UNDISTRIBUTED LONG-TERM           QUALIFIED LATE YEAR         UNDISTRIBUTED   CAPITAL GAINS OR   NET UNREALIZED   ORDINARY AND   TOTAL ORDINARY   (CAPITAL LOSSES   APPRECIATION   POST-OCTOBER LOSS   DISTRIBUTABLE INCOME   NOT SUBJECT TO EXPIRATION)   (DEPRECIATION) 1   DEFERRALS 2   EARNINGS     $510,737       $6,312,289       $(635,134)       $(635,427)       $5,552,465     1
Includes timing differences on foreign currency, recognition of losses on securities sold, publicly traded partnerships and mark-to-market of Passive Foreign Investment Companies.
2
Under the current tax law, capital losses and qualified late year ordinary losses incurred after October 31 may be deferred and treated as occurring on the first day of the following fiscal year.

    For financial reporting purposes, capital accounts and distributions to stockholders are adjusted to reflect the tax character of permanent book/tax differences. For the year ended December 31, 2015, the Fund recorded the following permanent reclassifications, which relate primarily to current investments in publicly traded partnerships and Trusts, foreign currency transactions, dividend redesignations and gains from the sale of Passive Foreign Investment Companies. Results of operations and net assets were not affected by these reclassifications.

UNDISTRIBUTED NET   ACCUMULATED NET         INVESTMENT INCOME   REALIZED GAIN (LOSS)   PAID-IN CAPITAL     $1,128,953       $(684,544)       $(444,409)    
    Management has analyzed the Fund’s tax positions taken on federal income tax returns for all open tax years (2012-2015) and has concluded that as of December 31, 2015, no provision for income tax is required in the Fund’s financial statements.

42 | 2015 Annual Report to Stockholders
Royce Micro-Cap Trust   Report of Independent Registered Public Accounting Firm
To the Board of Directors and Stockholders of Royce Micro-Cap Trust, Inc.:  
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statement of operations, of changes in net assets, and of cash flows and the financial highlights present fairly, in all material respects, the financial position of Royce Micro-Cap Trust, Inc. (the “Fund”) at December 31, 2015, the results of its operations, the changes in its net assets, its cash flows and its financial highlights for the year then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit, which included confirmation of securities at December 31, 2015 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. The statement of changes in net assets for the year ended December 31, 2014 and the financial highlights for each of the fiscal periods presented in the period ended December 31, 2014 were audited by other independent accountants whose report dated February 23, 2015 expressed an unqualified opinion on those statements.

PricewaterhouseCoopers LLP Baltimore, Maryland February 23, 2016
2015 Annual Report to Stockholders | 43
Royce Value Trust
  Schedule of Investments             Common Stocks – 105.2%                 SHARES       VALUE                 CONSUMER DISCRETIONARY 12.6%             AUTO COMPONENTS - 1.4%            

Drew Industries

  94,616     $ 5,761,168

Gentex Corporation

  302,970       4,850,550

Global & Yuasa Battery

  28,500       989,481

MRF

  800       482,523

Selamat Sempurna

  1,816,700       627,466

Standard Motor Products

  50,391       1,917,378                         14,628,566             AUTOMOBILES - 1.3%            

Thor Industries 1

  168,010       9,433,761

Winnebago Industries

  211,400       4,206,860                         13,640,621             DISTRIBUTORS - 1.1%            

Core-Mark Holding Company

  115,200       9,439,488

Weyco Group

  97,992       2,622,266                         12,061,754             DIVERSIFIED CONSUMER SERVICES - 1.7%            

American Public Education 2

  39,400       733,234

Collectors Universe

  62,400       967,200

DeVry Education Group

  52,054       1,317,487

†Liberty Tax Cl. A

  144,740       3,449,154

†LifeLock 1,2,3

  142,000       2,037,700

Lincoln Educational Services 2

  430,600       856,894

Regis Corporation 1,2

  210,400       2,977,160

Sotheby’s

  138,200       3,560,032

Universal Technical Institute

  534,032       2,488,589                         18,387,450             HOTELS, RESTAURANTS & LEISURE - 0.2%            

Century Casinos 2

  183,160       1,424,985

Thomas Cook (India)

  120,000       369,030

Tropicana Entertainment 2,4

  16,100       272,895                         2,066,910             HOUSEHOLD DURABLES - 2.2%            

Ethan Allen Interiors

  288,700       8,031,634

Flexsteel Industries

  18,500       817,330

Harman International Industries

  28,600       2,694,406

Mohawk Industries 1,2

  22,400       4,242,336

Natuzzi ADR 2

  2,096,300       3,375,043

NVR 2

  660       1,084,380

Samson Holding

  2,500,000       308,752

Stanley Furniture 2,5

  1,012,235       2,824,136                         23,378,017             INTERNET & CATALOG RETAIL - 0.3%            

Blue Nile 2

  53,500       1,986,455

Manutan International

  12,200       649,706                         2,636,161             LEISURE PRODUCTS - 1.1%            

LeapFrog Enterprises Cl. A 2

  162,000       115,020

Nautilus 2

  656,600       10,978,352

Shimano

  3,500       536,065                         11,629,437             MEDIA - 0.9%            

E.W. Scripps Company Cl. A

  139,260       2,645,940

Harte-Hanks

  136,730       443,005

McClatchy Company (The) Cl. A 2

  557,400       674,454

New Media Investment Group

  46,800       910,728

Pico Far East Holdings

  3,484,400       944,189

Rentrak Corporation 2

  15,400       731,962

T4F Entretenimento 2

  263,617       206,386

Technicolor

  30,000       242,759

Television Broadcasts

  58,400       239,998

Wiley (John) & Sons Cl. A

  55,980       2,520,779                         9,560,200             MULTILINE RETAIL - 0.0%            

New World Department Store China

  1,447,500       220,136

Parkson Retail Asia

  345,800       64,629                         284,765             SPECIALTY RETAIL - 1.4%            

Buckle (The) 1

  130,595       4,019,714

Destination Maternity

  420,376       3,665,679

Genesco 2

  57,115       3,245,846

I.T

  1,127,000       298,322

Oriental Watch Holdings

  967,900       142,138

Systemax 2

  194,000       1,668,400

TravelCenters of America LLC 2

  62,500       587,500

USS

  35,000       526,598

West Marine 2

  131,100       1,113,039                         15,267,236             TEXTILES, APPAREL & LUXURY GOODS - 1.0%            

Crown Crafts

  118,041       1,002,168

Culp

  29,400       748,818

J.G. Boswell Company 4

  3,940       2,462,500

Kewal Kiran Clothing

  2,000       66,357

Movado Group

  79,161       2,035,229

Pacific Textiles Holdings

  350,000       540,160

Stella International Holdings

  150,000       371,102

Van de Velde

  10,000       681,713

Wolverine World Wide 1

  148,500       2,481,435

YGM Trading

  1,082,600       681,798                         11,071,280   Total (Cost $122,068,088)           134,612,397                 CONSUMER STAPLES 2.4%             BEVERAGES - 0.3%            

Compania Cervecerias Unidas ADR

  134,000       2,902,440             FOOD PRODUCTS - 2.0%            

Alico 1

  27,000       1,044,630

Binggrae 2

  14,000       813,210

Cal-Maine Foods

  88,216       4,087,929

Farmer Bros. 2

  40,000       1,290,800

Industrias Bachoco ADR

  41,895       2,062,491

Sanderson Farms 1

  7,500       581,400

Seneca Foods Cl. A 2

  229,255       6,643,810

Seneca Foods Cl. B 2

  13,840       441,773

SunOpta 2

  143,559       981,943

Tootsie Roll Industries 1

  109,859       3,470,446

Waterloo Investment Holdings 2,6

  598,676       167,629                         21,586,061             PERSONAL PRODUCTS - 0.1%            

Inter Parfums

  5,700       135,774

Nu Skin Enterprises Cl. A 1

  31,000       1,174,590                         1,310,364   Total (Cost $22,016,530)           25,798,865                 ENERGY 3.7%             ENERGY EQUIPMENT & SERVICES - 3.1%            

CARBO Ceramics 1

  53,000       911,600
44 | 2015 Annual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
December 31, 2015
  Schedule of Investments (continued)                               SHARES       VALUE                 ENERGY (continued)             ENERGY EQUIPMENT & SERVICES (continued)            

Ensign Energy Services

  134,000     $ 714,693

Era Group 2

  356,000       3,969,400

Gulf Island Fabrication

  32,964       344,804

Helmerich & Payne

  95,660       5,122,593

ION Geophysical 2

  1,078,200       542,442

Oil States International 2

  51,233       1,396,099

Pason Systems

  388,380       5,442,428

SEACOR Holdings 2

  170,469       8,959,851

TGS-NOPEC Geophysical

  181,470       2,870,533

Trican Well Service 2

  897,300       415,026

Unit Corporation 2

  254,579       3,105,864                         33,795,333             OIL, GAS & CONSUMABLE FUELS - 0.6%            

Green Plains

  98,000       2,244,200

Permian Basin Royalty Trust

  161,000       814,660

World Fuel Services

  66,600       2,561,436

WPX Energy 2

  110,000       631,400                         6,251,696   Total (Cost $60,383,624)           40,047,029                 FINANCIALS 19.3%             BANKS - 2.3%            

Bank of N.T. Butterfield & Son

  1,784,161       3,479,114

BCB Holdings 2

  209,426       26,243

Blue Hills Bancorp

  104,180       1,594,996

†Canadian Western Bank

  279,500       4,722,635

Farmers & Merchants Bank of Long Beach 4

  1,200       7,488,000

Fauquier Bankshares

  160,800       2,463,456

First Citizens BancShares Cl. A

  17,026       4,395,602                         24,170,046             CAPITAL MARKETS - 8.8%            

AllianceBernstein Holding L.P.

  24,500       584,325

Ares Management L.P.

  375,900       4,860,387

Artisan Partners Asset Management Cl. A

  223,200       8,048,592

ASA Gold and Precious Metals

  324,821       2,328,967

Ashmore Group

  1,144,000       4,319,809

Azimut Holding

  17,500       432,026

BHF Kleinwort Benson Group 2

  148,761       923,697

CETIP - Mercados Organizados

  430,000       4,060,936

Citadel Capital 2

  11,799,921       2,396,137

Cowen Group 2

  250,824       960,656

Dundee Corporation Cl. A 2

  1,079,900       3,558,823

Eaton Vance 1

  40,500       1,313,415

Edmond de Rothschild (Suisse)

  133       2,204,273

Federated Investors Cl. B

  334,390       9,580,274

GAMCO Investors Cl. A

  20,200       627,008

GCA Savvian

  11,513       117,681

Jupiter Fund Management

  230,000       1,520,704

Lazard Cl. A

  87,435       3,935,449

Manning & Napier Cl. A

  465,492       3,952,027

Medley Management Cl. A

  109,500       623,055

mutares

  9,266       177,241

MVC Capital

  324,200       2,389,354

Newtek Business Services

  65,900       943,688

Partners Group Holding

  1,075       385,963

Rothschild & Co

  196,893       5,025,022

SEI Investments

  198,905       10,422,622

Sprott

  590,000       1,014,815

U.S. Global Investors Cl. A

  520,551       609,045

Value Partners Group

  5,453,000       6,299,687

Virtus Investment Partners

  24,920       2,927,103

VZ Holding

  2,000       588,945

Westwood Holdings Group

  54,573       2,842,708

ZAIS Group Holdings Cl. A 1,2

  492,300       4,558,698                         94,533,132             CONSUMER FINANCE - 0.1%            

EZCORP Cl. A 2

  213,000       1,062,870             DIVERSIFIED FINANCIAL SERVICES - 2.5%            

Banca Finnat Euramerica

  500,000       234,435

First Pacific

  1,020,000       675,631

MarketAxess Holdings

  90,000       10,043,100

Morningstar

  84,600       6,802,686

PICO Holdings 2

  409,400       4,225,008

Sofina

  19,698       2,210,780

TMX Group

  91,000       2,353,754                         26,545,394             INSURANCE - 2.1%            

Alleghany Corporation 2

  2,709       1,294,712

Atlas Financial Holdings 2

  9,500       189,050

eHealth 2

  20,000       199,600

E-L Financial

  16,500       8,299,487

Erie Indemnity Cl. A

  25,000       2,391,000

Greenlight Capital Re Cl. A 2

  240,561       4,500,896

Independence Holding Company

  332,964       4,611,551

ProAssurance Corporation

  17,139       831,756

†WMIH 2

  77,742       201,352                         22,519,404             INVESTMENT COMPANIES - 0.3%            

RIT Capital Partners

  130,500       3,231,286             REAL ESTATE MANAGEMENT & DEVELOPMENT - 2.2%            

AV Homes 2

  66,100       846,741

Forestar Group 2

  122,000       1,334,680

FRP Holdings 2

  212,958       7,227,794

Kennedy-Wilson Holdings

  101,300       2,439,304

Marcus & Millichap 2

  41,680       1,214,555

St. Joe Company (The) 2

  177,000       3,276,270

Sun Frontier Fudousan

  17,600       128,954

Tejon Ranch 2

  358,000       6,855,700

Tejon Ranch (Warrants) 2

  96,561       676                         23,324,674             THRIFTS & MORTGAGE FINANCE - 1.0%            

Genworth MI Canada

  284,395       5,467,159

Timberland Bancorp 5

  444,200       5,512,522

Vestin Realty Mortgage II 2

  53,557       139,248                         11,118,929   Total (Cost $208,767,123)           206,505,735                 HEALTH CARE 5.2%             BIOTECHNOLOGY - 0.9%            

ARIAD Pharmaceuticals 1,2,3

  140,000       875,000

Keryx Biopharmaceuticals 2

  70,000       353,500

Myriad Genetics 1,2

  7,973       344,115

Sangamo BioSciences 2

  120,315       1,098,476

Zealand Pharma 2

  334,307       7,326,579                         9,997,670            
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2015 Annual Report to Stockholders | 45
Royce Value Trust
  Schedule of Investments (continued)                               SHARES       VALUE                 HEALTH CARE (continued)             HEALTH CARE EQUIPMENT & SUPPLIES - 2.2%            

Analogic Corporation

  53,335     $ 4,405,471

Atrion Corporation 1

  17,079       6,510,515

bioMerieux

  4,000       477,001

Cerus Corporation 2

  156,600       989,712

Derma Sciences 2

  87,142       398,239

DiaSorin

  7,000       366,050

IDEXX Laboratories 1,2,3

  114,822       8,372,820

Invacare Corporation

  38,900       676,471

Trinity Biotech ADR Cl. A

  82,800       973,728                         23,170,007             HEALTH CARE PROVIDERS & SERVICES - 0.3%            

Aceto Corporation

  42,255       1,140,040

Addus HomeCare 2

  22,200       516,816

Landauer

  50,000       1,646,000                         3,302,856             HEALTH CARE TECHNOLOGY - 0.2%            

Medidata Solutions 2

  40,000       1,971,600             LIFE SCIENCES TOOLS & SERVICES - 1.1%            

Bio-Rad Laboratories Cl. A 2

  19,858       2,753,510

Bio-Techne

  58,743       5,286,870

PAREXEL International 2

  56,600       3,855,592                         11,895,972             PHARMACEUTICALS - 0.5%            

Lipocine 2

  55,866       722,347

Medicines Company (The) 2

  58,000       2,165,720

Theravance Biopharma 2

  63,291       1,037,340

Vetoquinol

  10,000       428,199

Virbac

  3,000       714,931                         5,068,537   Total (Cost $36,084,199)           55,406,642                 INDUSTRIALS 28.1%             AEROSPACE & DEFENSE - 1.8%            

Ducommun 2

  117,200       1,900,984

FLYHT Aerospace Solutions 2

  1,683,400       279,816

HEICO Corporation

  140,338       7,628,774

HEICO Corporation Cl. A

  80,808       3,975,754

Hexcel Corporation

  47,500       2,206,375

Magellan Aerospace

  122,779       1,428,591

Teledyne Technologies 2

  20,600       1,827,220                         19,247,514             AIR FREIGHT & LOGISTICS - 2.0%            

Expeditors International of Washington

  158,900       7,166,390

Forward Air

  209,750       9,021,347

Hub Group Cl. A 1,2,3

  149,400       4,922,730                         21,110,467             BUILDING PRODUCTS - 0.8%            

American Woodmark 2

  89,635       7,169,007

Burnham Holdings Cl. B 4

  36,000       592,200

Patrick Industries 2

  14,750       641,625

Polypipe Group

  103,000       529,783                         8,932,615             COMMERCIAL SERVICES & SUPPLIES - 2.8%            

Atento 2

  159,200       1,550,608

Brady Corporation Cl. A

  45,900       1,054,782

CompX International Cl. A

  211,100       2,406,540

Copart 2

  178,360       6,779,464

dorma+kaba Holding

  600       407,097

Heritage-Crystal Clean 2

  152,527       1,616,786

InnerWorkings 2

  114,000       855,000

Kimball International Cl. B

  286,180       2,795,979

Ritchie Bros. Auctioneers

  401,794       9,687,253

Societe BIC

  2,000       329,082

Steelcase Cl. A

  155,330       2,314,417                         29,797,008             CONSTRUCTION & ENGINEERING - 2.6%            

EMCOR Group 1,3

  134,400       6,456,576

Integrated Electrical Services 2

  677,482       7,499,726

Jacobs Engineering Group 1,2

  164,900       6,917,555

KBR

  286,192       4,842,368

Northwest Pipe 2

  117,800       1,318,182

Sterling Construction 2

  212,735       1,293,429                         28,327,836             ELECTRICAL EQUIPMENT - 1.2%            

AZZ

  21,600       1,200,312

Franklin Electric

  104,600       2,827,338

Global Power Equipment Group

  631,820       2,198,734

Powell Industries

  94,500       2,459,835

Preformed Line Products

  91,600       3,856,360                         12,542,579             INDUSTRIAL CONGLOMERATES - 0.4%            

A. Soriano

  2,791,000       378,430

Carlisle Companies 1

  11,400       1,011,066

Raven Industries

  226,725       3,536,910                         4,926,406             MACHINERY - 10.2%            

Burckhardt Compression Holding

  8,400       2,575,997

Chen Hsong Holdings

  1,159,000       267,690

China Metal International Holdings

  554,524       169,932

CIRCOR International

  104,004       4,383,769

CLARCOR

  92,500       4,595,400

Columbus McKinnon

  69,775       1,318,748

Deutz

  115,000       460,288

Donaldson Company

  193,559       5,547,401

Federal Signal

  166,280       2,635,538

Graco

  94,276       6,794,471

Graham Corporation

  20,568       345,954

Hurco Companies

  25,952       689,285

Hyster-Yale Materials Handling Cl. A

  18,415       965,867

IDEX Corporation

  67,400       5,163,514

John Bean Technologies

  121,826       6,070,590

Kennametal

  160,100       3,073,920

Lincoln Electric Holdings

  61,360       3,183,970

Lindsay Corporation 1

  80,000       5,792,000

Luxfer Holdings ADR

  28,100       276,504

Lydall 2

  30,680       1,088,526

Mueller Water Products Cl. A

  33,600       288,960

NN

  308,700       4,920,678

Nordson Corporation

  24,296       1,558,588

RBC Bearings 2

  109,600       7,079,064

Semperit AG Holding

  2,940       98,695

Spirax-Sarco Engineering

  7,600       366,115

Sun Hydraulics

  103,118       3,271,934

Tennant Company

  103,900       5,845,414

Valmont Industries 1

  67,855       7,193,987

WABCO Holdings 2

  43,400       4,438,084
46 | 2015 Annual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
December 31, 2015
  Schedule of Investments (continued)                               SHARES       VALUE                 INDUSTRIALS (continued)             MACHINERY (continued)            

Wabtec Corporation

  83,560     $ 5,942,787

†Watts Water Technologies Cl. A

  61,000       3,029,870

Woodward

  208,400       10,349,144                         109,782,684             MARINE - 0.8%            

Clarkson

  198,700       6,583,284

Kirby Corporation 2

  41,100       2,162,682                         8,745,966             PROFESSIONAL SERVICES - 3.0%            

Acacia Research

  55,600       238,524

Advisory Board (The) 1,2,3

  150,277       7,455,242

Franklin Covey 2

  60,000       1,004,400

Heidrick & Struggles International

  66,480       1,809,586

ICF International 2

  27,196       967,090

ManpowerGroup

  83,858       7,068,391

On Assignment 1,2,3

  230,695       10,369,740

Robert Half International

  19,032       897,168

TrueBlue 2

  70,250       1,809,640

Volt Information Sciences 2

  65,000       529,100                         32,148,881             ROAD & RAIL - 1.5%            

Genesee & Wyoming Cl. A 2

  20,000       1,073,800

†Knight Transportation

  122,400       2,965,752

Landstar System

  118,960       6,977,004

†Saia 1,2

  141,890       3,157,052

Trancom

  6,647       368,334

Universal Truckload Services

  78,916       1,107,981                         15,649,923             TRADING COMPANIES & DISTRIBUTORS - 0.8%            

†Houston Wire & Cable

  598,871       3,162,039

Kloeckner & Co

  31,300       271,976

MISUMI Group

  30,000       413,129

MSC Industrial Direct Cl. A 1

  79,993       4,501,206                         8,348,350             TRANSPORTATION INFRASTRUCTURE - 0.2%            

Hopewell Highway Infrastructure

  1,012,000       485,075

Touax 2

  40,040       435,137

Wesco Aircraft Holdings 2

  68,400       818,748                         1,738,960   Total (Cost $210,534,829)           301,299,189                 INFORMATION TECHNOLOGY 20.7%             COMMUNICATIONS EQUIPMENT - 0.6%            

ADTRAN 1,3

  259,273       4,464,681

Alliance Fiber Optic Products 2

  63,200       958,112

Bel Fuse Cl. B

  30,238       522,815

Extreme Networks 2

  80,000       326,400                         6,272,008             ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS - 9.8%            

Agilysys 2

  165,125       1,649,599

Anixter International 1,2,3

  70,895       4,281,349

Benchmark Electronics 2

  125,500       2,594,085

Cognex Corporation 1

  166,400       5,619,328

Coherent 2

  158,536       10,322,279

Dolby Laboratories Cl. A

  57,840       1,946,316

DTS 2

  225,000       5,080,500

ePlus 2

  6,800       634,168

Fabrinet 2

  46,950       1,118,349

FARO Technologies 2

  115,200       3,400,704

FEI Company

  82,100       6,550,759

FLIR Systems

  302,000       8,477,140

HollySys Automation Technologies

  51,082       1,132,999

IPG Photonics 1,2,3

  53,890       4,804,832

Kimball Electronics 2

  214,635       2,358,839

LRAD Corporation 2

  751,544       1,495,573

Mercury Systems 2

  38,200       701,352

Methode Electronics

  29,200       929,436

National Instruments

  261,850       7,512,476

Newport Corporation 2

  541,000       8,585,670

Orbotech 2

  4,000       88,520

PC Connection

  16,301       369,055

Perceptron 2

  357,700       2,786,483

Plexus Corporation 2

  176,100       6,149,412

Richardson Electronics

  573,732       3,253,060

Rofin-Sinar Technologies 2

  226,971       6,078,283

Rogers Corporation 2

  57,066       2,942,894

TTM Technologies 1,2,3

  496,400       3,231,564

Vishay Precision Group 2

  78,826       892,310                         104,987,334             INTERNET SOFTWARE & SERVICES - 1.8%            

Actua Corporation 2

  152,253       1,743,297

Care.com 2

  395,900       2,834,644

†IZEA 2,4

  701,300       277,014

j2 Global

  28,610       2,355,175

QuinStreet 2

  488,232       2,094,515

RealNetworks 2

  376,750       1,601,188

Spark Networks 1,2,3

  394,100       1,517,285

Stamps.com 2

  33,600       3,682,896

Support.com 2

  1,324,295       1,337,538

Textura Corporation 2

  19,000       410,020

Tomorrow Focus 2

  44,900       173,077

United Online 2

  133,971       1,579,518                         19,606,167             IT SERVICES - 2.4%            

Computer Task Group

  223,700       1,480,894

Convergys Corporation 1

  121,000       3,011,690

eClerx Services

  18,000       383,825

Hackett Group (The)

  671,366       10,788,852

Hexaware Technologies

  130,000       478,325

Innodata 2

  314,314       895,795

MAXIMUS

  107,500       6,046,875

Net 1 UEPS Technologies 2

  15,000       202,650

Persistent Systems

  40,000       387,854

Prodware

  20,100       172,976

Sykes Enterprises 2

  24,294       747,769

TravelSky Technology

  200,000       328,208

Unisys Corporation 2

  94,000       1,038,700                         25,964,413             SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 2.7%            

Amtech Systems 2

  141,471       885,609

Brooks Automation

  116,100       1,239,948

Cascade Microtech 2

  61,800       1,004,250

Diodes 2

  270,850       6,224,133

Exar Corporation 2

  157,576       965,941

Intermolecular 2

  165,448       383,839

Kopin Corporation 2

  242,200       658,784
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2015 Annual Report to Stockholders | 47
Royce Value Trust
  Schedule of Investments (continued)                                   SHARES       VALUE                     INFORMATION TECHNOLOGY (continued)               SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (continued)              

Kulicke & Soffa Industries 2

  77,400     $ 903,258  

MKS Instruments

  170,510       6,138,360  

MoSys 1,2,3

  337,000       367,330  

Nanometrics 2

  166,750       2,524,595  

Photronics 2

  157,700       1,963,365  

Teradyne

  130,000       2,687,100  

Tessera Technologies

  65,930       1,978,559  

Ultra Clean Holdings 2

  50,300       257,536  

Veeco Instruments 1,2,3

  28,300       581,848                           28,764,455               SOFTWARE - 2.5%              

American Software Cl. A

  88,490       900,828  

ANSYS 1,2,3

  95,000       8,787,500  

Blackbaud

  31,400       2,068,004  

Computer Modelling Group

  313,200       2,032,620  

Mentor Graphics

  149,923       2,761,582  

Model N 2

  104,000       1,160,640  

Monotype Imaging Holdings

  153,740       3,634,414  

PSI 2

  52,500       738,537  

PTC 2

  25,000       865,750  

SeaChange International 2

  247,069       1,665,245  

SimCorp

  9,300       524,488  

TiVo 2

  133,200       1,149,516  

TOTVS

  50,000       389,896                           26,679,020               TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS - 0.9%              

Diebold 1

  266,600       8,021,994  

Intevac 2

  114,000       536,940  

Kortek

  99,000       976,842  

Silicon Graphics International 2

  93,600       552,240                           10,088,016     Total (Cost $188,389,488)           222,361,413                     MATERIALS 7.6%               CHEMICALS - 2.0%              

C. Uyemura & Co.

  13,100       557,573  

†Dyadic International 2,4

  75,000       135,000  

FutureFuel Corporation

  48,500       654,750  

Hawkins

  86,178       3,082,587  

Innospec

  44,838       2,435,152  

Intrepid Potash 2

  356,498       1,051,669  

Minerals Technologies

  87,093       3,994,085  

Quaker Chemical

  109,669       8,473,027  

Umicore

  12,500       522,516  

Victrex

  12,000       316,680                           21,223,039               CONSTRUCTION MATERIALS - 1.0%              

Ash Grove Cement Cl. B 4

  50,518       10,507,744               CONTAINERS & PACKAGING - 0.8%              

Greif Cl. A

  100,344       3,091,599  

Mayr-Melnhof Karton

  32,700       4,069,251  

UFP Technologies 2

  54,709       1,303,168                           8,464,018               METALS & MINING - 3.8%              

Alamos Gold Cl. A

  464,366       1,526,968  

Ampco-Pittsburgh

  56,516       579,854  

Central Steel & Wire 4

  4,862       2,649,887  

Exeter Resource 2

  475,000       154,375  

Franco-Nevada Corporation

  108,000       4,941,000  

Gold Fields ADR

  865,000       2,396,050  

Haynes International

  113,900       4,178,991  

Hecla Mining

  660,000       1,247,400  

Imdex 2

  700,000       101,388  

Lundin Mining 2

  640,000       1,757,606  

Major Drilling Group International

  406,543       1,286,882  

Pan American Silver

  130,430       847,795  

Pretium Resources 2

  246,000       1,237,378  

Reliance Steel & Aluminum

  171,270       9,918,246  

Seabridge Gold 1,2,3

  282,000       2,337,780  

Synalloy Corporation

  178,800       1,230,144  

Vista Gold 2

  124,000       34,038  

Worthington Industries

  148,000       4,460,720                           40,886,502               PAPER & FOREST PRODUCTS - 0.0%              

TFS Corporation

  251,185       288,330     Total (Cost $77,065,012)           81,369,633                     TELECOMMUNICATION SERVICES 0.5%               WIRELESS TELECOMMUNICATION SERVICES - 0.5%              

Spok Holdings

  18,595       340,661  

Telephone and Data Systems

  208,270       5,392,110     Total (Cost $5,721,184)           5,732,771                     UTILITIES 0.1%               GAS UTILITIES - 0.1%              

Shizuoka Gas

  110,000       703,087  

Toho Gas

  60,000       387,471                           1,090,558               MULTI-UTILITIES - 0.0%              

Just Energy Group 1

  20,600       146,672     Total (Cost $1,234,657)           1,237,230                     MISCELLANEOUS7 5.0%                 Total (Cost $56,093,347)           53,074,549                     TOTAL COMMON STOCKS                 (Cost $988,358,081)           1,127,445,453                     REPURCHASE AGREEMENT 1.0%               Fixed Income Clearing Corporation, 0.03% dated 12/31/15, due 1/4/16, maturity value $10,727,036 (collateralized by obligations of various U.S. Government Agencies, 1.625% due 7/31/20, valued at $10,943,663)   (Cost $10,727,000)           10,727,000                     TOTAL INVESTMENTS 106.2%                 (Cost $999,085,081)           1,138,172,453                     LIABILITIES LESS CASH AND OTHER ASSETS (6.2)%           (66,137,707 )                 NET ASSETS 100.0%         $ 1,072,034,746    
48 | 2015 Annual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
December 31, 2015
 
New additions in 2015.
1
All or a portion of these securities were pledged as collateral in connection with the revolving credit agreement at December 31, 2015. Total market value of pledged securities at December 31, 2015, was $116,154,894.
2
Non-income producing.
3
At December 31, 2015, a portion of these securities were rehypothecated in connection with the Fund’s revolving credit agreement in the aggregate amount of $55,161,255.
4
These securities are defined as Level 2 securities due to fair value being based on quoted prices for similar securities. See Notes to Financial Statements.
5
At December 31, 2015, the Fund owned 5% or more of the Company’s outstanding voting securities thereby making the Company an Affiliated Company as that term is defined in the Investment Company Act of 1940. See Notes to Financial Statements.
6
A security for which market quotations are not readily available represents 0.0% of net assets. This security has been valued at its fair value under procedures approved by the Fund’s Board of Directors. This security is defined as a Level 3 security due to the use of significant unobservable inputs in the determination of fair value. See Notes to Financial Statements.
7
Includes securities first acquired in 2015 and less than 1% of net assets.
     
Bold indicates the Fund’s 20 largest equity holdings in terms of December 31, 2015, market value.
     
TAX INFORMATION: The cost of total investments for Federal income tax purposes was $1,001,534,253. At December 31, 2015, net unrealized appreciation for all securities was $136,638,200, consisting of aggregate gross unrealized appreciation of $278,258,206 and aggregate gross unrealized depreciation of $141,620,006. The primary difference between book and tax basis cost is the timing of the recognition of losses on securities sold, investments in publicly traded partnerships and Trusts and mark-to-market of Passive Foreign Investment Companies.
 
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2015 Annual Report to Stockholders | 49
Royce Value Trust   December 31, 2015
  Statement of Assets and Liabilities                   ASSETS:         Investments at value          

Non-Affiliated Companies

  $ 1,119,108,795    

Affiliated Companies

    8,336,658     Repurchase agreements (at cost and value)     10,727,000     Cash and foreign currency     214,267     Receivable for investments sold     3,210,183     Receivable for dividends and interest     1,307,487     Prepaid expenses and other assets     552,797     Total Assets     1,143,457,187     LIABILITIES:         Revolving credit agreement     70,000,000     Payable for investments purchased     562,307     Payable for investment advisory fee     493,311     Payable for directors’ fees     57,368     Payable for interest expense     6,054     Accrued expenses     252,267     Deferred capital gains tax     51,134     Total Liabilities     71,422,441     Net Assets   $ 1,072,034,746     ANALYSIS OF NET ASSETS:         Paid-in capital - $0.001 par value per share; 79,051,762 shares outstanding (150,000,000 shares authorized)   $ 929,036,835     Undistributed net investment income (loss)     (1,047,919 )   Accumulated net realized gain (loss) on investments and foreign currency     5,044,187     Net unrealized appreciation (depreciation) on investments and foreign currency     139,001,643     Net Assets (net asset value per share - $13.56)   $ 1,072,034,746     Investments at identified cost   $ 988,358,081    
50 | 2015 Annual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS

Royce Value Trust

  Statement of Changes in Net Assets
    YEAR ENDED 12/31/15   YEAR ENDED 12/31/14                     INVESTMENT OPERATIONS:                 Net investment income (loss)   $ 9,193,108     $ 9,123,977     Net realized gain (loss) on investments and foreign currency     43,117,817       130,855,526     Net change in unrealized appreciation (depreciation) on investments and foreign currency     (157,435,228 )     (140,388,974 )   Net increase (decrease) in net assets from investment operations     (105,124,303 )     (409,471 )   DISTRIBUTIONS:                 Net investment income     (12,151,910 )     (10,008,114 )   Net realized gain on investments and foreign currency     (83,306,926 )     (123,263,927 )   Total distributions     (95,458,836 )     (133,272,041 )   CAPITAL STOCK TRANSACTIONS:                 Reinvestment of distributions     40,663,247       57,806,861     Total capital stock transactions     40,663,247       57,806,861     Net Increase (Decrease) In Net Assets     (159,919,892 )     (75,874,651 )   NET ASSETS:                   Beginning of year     1,231,954,638       1,307,829,289     End of year (including undistributed net investment income (loss) of $(1,047,919) at 12/31/15 and $2,286,303 at 12/31/14)   $ 1,072,034,746     $ 1,231,954,638    
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2015 Annual Report to Stockholders | 51
Royce Value Trust   Year Ended December 31, 2015
  Statement of Operations
INVESTMENT INCOME:         INCOME:         Dividends          

Non-Affiliated Companies

  $ 17,125,813    

Affiliated Companies

    137,702     Foreign withholding tax     (398,966 )   Interest     44,593     Rehypothecation income     358,817     Securities lending     668     Total income     17,268,627     EXPENSES:           Investment advisory fees     5,891,150     Interest expense     899,029     Stockholder reports     430,339     Custody and transfer agent fees     233,579     Administrative and office facilities     190,523     Directors’ fees     180,221     Professional fees     113,995     Other expenses     136,775     Total expenses     8,075,611     Compensating balance credits     (92 )   Net expenses     8,075,519     Net investment income (loss)     9,193,108     REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY:         NET REALIZED GAIN (LOSS):           Investments     42,996,570     Foreign currency transactions     121,247     NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION):           Investments and foreign currency translations     (157,609,448 )   Other assets and liabilities denominated in foreign currency     174,220     Net realized and unrealized gain (loss) on investments and foreign currency     (114,317,411 )   NET INCREASE (DECREASE) IN NET ASSETS FROM INVESTMENT OPERATIONS   $ (105,124,303 )  
52 | 2015 Annual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
Royce Value Trust   Year Ended December 31, 2015
  Statement of Cash Flows
CASH FLOWS FROM OPERATING ACTIVITIES:           Net increase (decrease) in net assets from investment operations     $ (105,124,303 )   Adjustments to reconcile net increase (decrease) in net assets from investment operations to net cash provided by operating activities:            

Purchases of long-term investments

      (421,650,687 )  

Proceeds from sales and maturities of long-term investments

      448,806,816    

Net purchases, sales and maturities of short-term investments

      18,828,000    

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

      (321,915 )  

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

      (145,507 )  

Net change in unrealized appreciation (depreciation) on investments

      157,609,448    

Net realized gain (loss) on investments and foreign currency

      (43,117,817 )   Net cash provided by operating activities       54,884,035     CASH FLOWS FROM FINANCING ACTIVITIES:           Distributions       (95,458,836 )   Reinvestment of distributions       40,663,247     Net cash used for financing activities       (54,795,589 )   INCREASE (DECREASE) IN CASH:       88,446     Cash and foreign currency at beginning of year       125,821     Cash and foreign currency at end of year     $ 214,267    
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS   2015 Annual Report to Stockholders  |  53

Royce Value Trust

  Financial Highlights
This table is presented to show selected data for a share of Common Stock outstanding throughout each period, and to assist stockholders in evaluating the Fund’s performance for the periods presented.
      YEARS ENDED               12/31/15   12/31/14   12/31/13   12/31/12   12/31/11   Net Asset Value, Beginning of Period     $ 16.24     $ 18.17     $ 15.40     $ 14.18     $ 16.73     INVESTMENT OPERATIONS:                                           Net investment income (loss)       0.12       0.12       0.12       0.23       0.10     Net realized and unrealized gain (loss) on investments and foreign currency       (1.48 )     (0.13 )     4.89       2.02       (1.62 )   Total investment operations       (1.36 )     (0.01 )     5.01       2.25       (1.52 )   DISTRIBUTIONS TO PREFERRED STOCKHOLDERS:                                           Net investment income                         (0.04 )     (0.03 )   Net realized gain on investments and foreign currency                         (0.13 )     (0.16 )   Total distributions to Preferred Stockholders                         (0.17 )     (0.19 )  

Net Increase (Decrease) in Net Assets Applicable to Common Stockholders from Investment Operations

      (1.36 )     (0.01 )     5.01       2.08       (1.71 )   DISTRIBUTIONS TO COMMON STOCKHOLDERS:                                           Net investment income       (0.16 )     (0.14 )     (0.11 )     (0.17 )     (0.08 )   Net realized gain on investments and foreign currency       (1.08 )     (1.68 )     (2.08 )     (0.63 )     (0.43 )   Return of capital                               (0.27 )   Total distributions to Common Stockholders       (1.24 )     (1.82 )     (2.19 )     (0.80 )     (0.78 )   CAPITAL STOCK TRANSACTIONS:                                           Effect of reinvestment of distributions by Common Stockholders       (0.08 )     (0.10 )     (0.05 )     (0.06 )     (0.06 )   Total capital stock transactions       (0.08 )     (0.10 )     (0.05 )     (0.06 )     (0.06 )   Net Asset Value, End of Period     $ 13.56     $ 16.24     $ 18.17     $ 15.40     $ 14.18     Market Value, End of Period     $ 11.77     $ 14.33     $ 16.01     $ 13.42     $ 12.27     TOTAL RETURN:1                                           Net Asset Value       (8.09 )%     0.78 %     34.14 %     15.41 %     (10.06 )%   Market Value       (9.59 )%     0.93 %     35.63 %     16.22 %     (10.46 )%  

RATIOS BASED ON AVERAGE NET ASSETS APPLICABLE TO COMMON STOCKHOLDERS:

                                          Investment advisory fee expense2       0.50 %     0.46 %     0.54 %     0.56 %     0.86 %   Other operating expenses       0.18 %     0.15 %     0.25 %     0.15 %     0.12 %   Total expenses (net)3       0.68 %     0.61 %     0.79 %     0.71 %     0.98 %   Expenses net of fee waivers and excluding interest expense       0.61 %     0.55 %     0.65 %     0.68 %     0.98 %   Expenses prior to fee waivers and balance credits       0.68 %     0.61 %     0.79 %     0.71 %     0.98 %   Expenses prior to fee waivers       0.68 %     0.61 %     0.79 %     0.71 %     0.98 %   Net investment income (loss)       0.78 %     0.72 %     0.70 %     1.57 %     0.63 %   SUPPLEMENTAL DATA:                                           Net Assets Applicable to Common Stockholders, End of Period (in thousands)     $ 1,072,035     $ 1,231,955     $ 1,307,829     $ 1,082,426     $ 966,640     Liquidation Value of Preferred Stock, End of Period (in thousands)                                     $ 220,000     Portfolio Turnover Rate       35 %     40 %     33 %     25 %     26 %   PREFERRED STOCK:                                           Total shares outstanding                                       8,800,000     Asset coverage per share                                     $ 134.88     Liquidation preference per share                                     $ 25.00     Average month-end market value per share                                     $ 25.37     REVOLVING CREDIT AGREEMENT:                                           Asset coverage       1631 %     1860 %     1289 %     822 %           Asset coverage per $1,000     $ 16,315     $ 18,599     $ 12,889     $ 8,216            
1
The Market Value Total Return is calculated assuming a purchase of Common Stock on the opening of the first business day and a sale on the closing of the last business day of each period. Dividends and distributions are assumed for the purposes of this calculation to be reinvested at prices obtained under the Fund’s Distribution Reinvestment and Cash Purchase Plan. Net Asset Value Total Return is calculated on the same basis, except that the Fund’s net asset value is used on the purchase and sale dates instead of market value.
2
The investment advisory fee is calculated based on average net assets over a rolling 60-month basis, while the above ratios of investment advisory fee expenses are based on the average net assets applicable to Common Stockholders over a 12-month basis.
3
Expense ratios based on total average net assets including liquidation value of Preferred Stock were 0.60% and 0.82% for the years ended December 31, 2012 and 2011, respectively.

54 | 2015 Annual Report to Stockholders   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS

Royce Value Trust

Notes to Financial Statements

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

VALUATION OF INVESTMENTS:
Securities are valued as of the close of trading on the New York Stock Exchange (NYSE) (generally 4:00 p.m. Eastern time) on the valuation date. Securities that trade on an exchange, and securities traded on Nasdaq’s Electronic Bulletin Board, are valued at their last reported sales price or Nasdaq official closing price taken from the primary market in which each security trades or, if no sale is reported for such day, at their highest bid price. Other over-the-counter securities for which market quotations are readily available are valued at their highest bid price, except in the case of some bonds and other fixed income securities which may be valued by reference to other securities with comparable ratings, interest rates and maturities, using established independent pricing services. The Fund values its non-U.S. dollar denominated securities in U.S. dollars daily at the prevailing foreign currency exchange rates as quoted by a major bank. Securities for which market quotations are not readily available are valued at their fair value in accordance with the provisions of the 1940 Act, under procedures approved by the Fund’s Board of Directors, and are reported as Level 3 securities. As a general principle, the fair value of a security is the amount which the Fund might reasonably expect to receive for the security upon its current sale. However, in light of the judgment involved in fair valuations, there can be no assurance that a fair value assigned to a particular security will be the amount which the Fund might be able to receive upon its current sale. In addition, if, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and may make the closing price unreliable, the Fund may fair value the security. The Fund uses an independent pricing service to provide fair value estimates for relevant non-U.S. equity securities on days when the U.S. market volatility exceeds a certain threshold. This pricing service uses proprietary correlations it has developed between the movement of prices of non-U.S. equity securities and indices of U.S.-traded securities, futures contracts and other indications to estimate the fair value of relevant non-U.S. securities. When fair value pricing is employed, the prices of securities used by the Fund may differ from quoted or published prices for the same security. Investments in money market funds are valued at net asset value per share.
Various inputs are used in determining the value of the Fund’s investments, as noted above. These inputs are summarized in the three broad levels below:
    Level 1
quoted prices in active markets for identical securities.
    Level 2
other significant observable inputs (including quoted prices for similar securities, foreign securities that may be fair valued and repurchase agreements). The table below includes all Level 2 securities. Level 2 securities with values based on quoted prices for similar securities are noted in the Schedule of Investments.
    Level 3
significant unobservable inputs (including last trade price before trading was suspended, or at a discount thereto for lack of marketability or otherwise, market price information regarding other securities, information received from the company and/or published documents, including SEC filings and financial statements, or other publicly available information).
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2015. For a detailed breakout of common stocks by sector classification, please refer to the Schedule of Investments.
    LEVEL 1   LEVEL 2   LEVEL 3   TOTAL   Common Stocks   $ 1,007,975,908     $ 119,301,916     $ 167,629     $ 1,127,445,453     Cash Equivalents           10,727,000             10,727,000    

For the year ended December 31, 2015, certain securities have transferred in and out of Level 1 and Level 2 measurements. The Fund recognizes transfers between levels as of the end of the reporting period. At December 31, 2015, securities valued at $267,690 were transferred from Level 2 to Level 1 within the fair value hierarchy.

2015 Annual Report to Stockholders | 55

Royce Value Trust

Notes to Financial Statements (continued)

VALUATION OF INVESTMENTS (continued):

Level 3 Reconciliation:

      BALANCE AS OF 12/31/14     SALES     REALIZED AND UNREALIZED
GAIN (LOSS)1
    BALANCE AS OF 12/31/15     Common Stocks     $    270,001     $            1     $(102,371)     $167,629     Preferred Stocks        1,216,350         724,062       (492,288)               –     1 The net change in unrealized appreciation (depreciation) is included in the accompanying Statement of Operations. Change in unrealized appreciation (depreciation) includes net unrealized appreciation (depreciation) resulting from changes in investment values during the reporting period and the reversal of previously recorded unrealized appreciation (depreciation) when gains or losses are realized. Net realized gain (loss) from investments and foreign currency transactions is included in the accompanying Statement of Operations.
REPURCHASE AGREEMENTS:
The Fund may enter into repurchase agreements with institutions that the Fund’s investment adviser has determined are creditworthy. The Fund restricts repurchase agreements to maturities of no more than seven days. Securities pledged as collateral for repurchase agreements, which are held until maturity of the repurchase agreements, are marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest). Repurchase agreements could involve certain risks in the event of default or insolvency of the counter-party, including possible delays or restrictions upon the ability of the Fund to dispose of its underlying securities. The remaining contractual maturity of the repurchase agreement held by the Fund at December 31, 2015 is overnight and continuous.

FOREIGN CURRENCY:
Net realized foreign exchange gains or losses arise from sales and maturities of short-term securities, sales of foreign currencies, expiration of currency forward contracts, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, including investments in securities at the end of the reporting period, as a result of changes in foreign currency exchange rates.

SECURITIES LENDING:
The Fund loans securities through a lending agent to qualified institutional investors for the purpose of realizing additional income. Collateral for the Fund on all securities loaned is accepted in cash and cash equivalents and invested temporarily by the custodian. The collateral maintained is at least 100% of the current market value of the loaned securities. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund retains the risk of any loss on the securities on loan as well as incurring the potential loss on investments purchased with cash collateral received for securities lending. The Fund’s securities lending income consists of the income earned on investing cash collateral, plus any premium payments received for lending certain securities, less any rebates paid to borrowers and lending agent fees associated with the loan. The lending agent is not affiliated with Royce. No securities were on loan at December 31, 2015.

TAXES:
As a qualified regulated investment company under Subchapter M of the Internal Revenue Code, the Fund is not subject to income taxes to the extent that it distributes substantially all of its taxable income for its fiscal year. The Schedule of Investments includes information regarding income taxes under the caption “Tax Information”.

CAPITAL GAINS TAXES:
The Fund is subject to a tax imposed on short-term capital gains on securities of issuers domiciled in certain countries. The Fund records an estimated deferred tax liability for these securities that have been held for less than one year. This amount, if any, is reported as deferred capital gains tax in the accompanying Statement of Assets and Liabilities, assuming those positions were disposed of at the end of the period, and accounted for as a reduction in the market value of the security.

DISTRIBUTIONS:
The Fund pays quarterly distributions on the Fund’s Common Stock at the annual rate of 7% of the rolling average of the prior four calendar quarter-end NAVs of the Fund’s Common Stock, with the fourth quarter distribution being the greater of 1.75% of the rolling average or the distribution required by IRS regulations. Prior to November 15, 2012, distributions to Preferred Stockholders were accrued daily and paid quarterly. Distributions to Common Stockholders are recorded on ex-dividend date. Distributable capital gains and/or net investment income were first allocated to Preferred Stockholder distributions, with any excess allocable to Common Stockholders. If capital gains and/or net investment income were allocated to both Preferred and Common Stockholders, the tax character of such allocations was proportional. 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. Distributions are determined in accordance with income tax regulations that may

56 | 2015 Annual Report to Stockholders

Royce Value Trust

Notes to Financial Statements (continued)


DISTRIBUTIONS (continued):
differ from accounting principles generally accepted in the United States of America. Permanent book and tax differences relating to stockholder distributions will result in reclassifications within the capital accounts. Undistributed net investment income may include temporary book and tax basis differences, which will reverse in a subsequent period. Any taxable income or gain remaining undistributed at fiscal year end is distributed in the following year.

INVESTMENT TRANSACTIONS AND RELATED INVESTMENT INCOME:
Investment transactions are accounted for on the trade date. Dividend income is recorded on the ex-dividend date. Non-cash dividend income is recorded at the fair market value of the securities received. Interest income is recorded on an accrual basis. Premium and discounts on debt securities are amortized using the effective yield-to-maturity method. Realized gains and losses from investment transactions are determined on the basis of identified cost for book and tax purposes.

EXPENSES:
The Fund incurs direct and indirect expenses. Expenses directly attributable to the Fund are charged to the Fund’s operations, while expenses applicable to more than one of the Royce Funds are allocated equitably. Certain personnel, occupancy costs and other administrative expenses related to the Funds are allocated by Royce & Associates, LLC (“Royce”) under an administration agreement and are included in administrative and office facilities and professional fees. The Fund has adopted a deferred fee agreement that allows the Directors to defer the receipt of all or a portion of directors’ fees otherwise payable. The deferred fees are invested in certain Royce Funds until distributed in accordance with the agreement.

COMPENSATING BALANCE CREDITS:
The Fund has an arrangement with its custodian bank, whereby a portion of the custodian’s fee is paid indirectly by credits earned on the Fund’s cash on deposit with the bank. This deposit arrangement is an alternative to purchasing overnight investments. Conversely, the Fund pays interest to the custodian on any cash overdrafts, to the extent they are not offset by credits earned on positive cash balances.

Capital Stock:
The Fund issued 3,183,214 and 3,894,284 shares of Common Stock as reinvestment of distributions for the years ended December 31, 2015 and December 31, 2014, respectively.

Borrowings:
The Fund has entered into a revolving credit agreement (the credit agreement) with BNP Paribas Prime Brokerage Inc. (BNPP). The Fund pays a commitment fee of 0.50% per annum on the unused portion of the credit agreement. The credit agreement has a 360-day rolling term that resets daily; however, if the Fund exceeds certain net asset value triggers, the credit agreement may convert to a 60-day rolling term that resets daily. The Fund is required to pledge portfolio securities as collateral in an amount up to two times the loan balance outstanding and has granted a security interest in the securities pledged to, and in favor of, BNPP as security for the loan balance outstanding. If the Fund fails to meet certain requirements, or maintain other financial covenants required under the credit agreement, the Fund may be required to repay immediately, in part or in full, the loan balance outstanding under the credit agreement necessitating the sale of portfolio securities at potentially inopportune times. The credit agreement also permits, subject to certain conditions, BNPP to rehypothecate portfolio securities pledged by the Fund up to the amount of the loan balance outstanding. The Fund continues to receive payments in lieu of dividends and interest on rehypothecated securities. The Fund also has the right under the credit agreement to recall the rehypothecated securities from BNPP on demand. If BNPP fails to deliver the recalled security in a timely manner, the Fund is compensated by BNPP for any fees or losses related to the failed delivery or, in the event a recalled security is not returned by BNPP, the Fund, upon notice to BNPP, may reduce the loan balance outstanding by the amount of the recalled security failed to be returned. The Fund receives a portion of the fees earned by BNPP in connection with the rehypothecation of portfolio securities.
As of December 31, 2015, the Fund has outstanding borrowings of $70,000,000. During the year ended December 31, 2015, the Fund borrowed an average daily balance of $70,000,000 at a weighted average borrowing cost of 1.27%. The maximum amount outstanding during the year ended December 31, 2015 was $70,000,000. As of December 31, 2015, the aggregate value of rehypothecated securities was $55,161,255. During the year ended December 31, 2015, the Fund earned $358,817 in fees from rehypothecated securities.

Investment Advisory Agreement:
As compensation for its services under the Investment Advisory Agreement, Royce receives a fee comprised of a Basic Fee (“Basic Fee”) and an adjustment to the Basic Fee based on the investment performance of the Fund in relation to the investment record of the S&P SmallCap 600 Index (“S&P 600”).
The Basic Fee is a monthly fee equal to 1/12 of 1% (1% on an annualized basis) of the average of the Fund’s month-end net assets applicable to Common Stockholders, plus the liquidation value of outstanding Preferred Stock, for the rolling 60-month period ending with

2015 Annual Report to Stockholders | 57

Royce Value Trust

Notes to Financial Statements (continued)


Investment Advisory Agreement (continued):
such month (the “performance period”). The Basic Fee for each month is increased or decreased at the rate of 1/12 of .05% for each percentage point that the investment performance of the Fund exceeds, or is exceeded by, the percentage change in the investment record of the S&P 600 for the performance period by more than two percentage points. The performance period for each such month is a rolling 60-month period ending with such month. The maximum increase or decrease in the Basic Fee for any month may not exceed 1/12 of .5%. Accordingly, for each month, the maximum monthly fee rate as adjusted for performance is 1/12 of 1.5% and is payable if the investment performance of the Fund exceeds the percentage change in the investment record of the S&P 600 by 12 or more percentage points for the performance period, and the minimum monthly fee rate as adjusted for performance is 1/12 of .5% and is payable if the percentage change in the investment record of the S&P 600 exceeds the investment performance of the Fund by 12 or more percentage points for the performance period.
Notwithstanding the foregoing, Royce is not entitled to receive any fee for any month when the investment performance of the Fund for the rolling 36-month period ending with such month is negative. In the event that the Fund’s investment performance for such a performance period is less than zero, Royce will not be required to refund to the Fund any fee earned in respect of any prior performance period.
For the twelve rolling 60-month periods in 2015, the Fund’s investment performance ranged from 37% to 52% below the investment performance of the S&P 600. Accordingly, the net investment advisory fee consisted of a Basic Fee of $11,782,299 and a net downward adjustment of $5,891,149 for the performance of the Fund relative to that of the S&P 600. For the year ended December 31, 2015, the Fund accrued and paid Royce investment advisory fees totaling $5,891,150.

Purchases and Sales of Investment Securities:
For the year ended December 31, 2015, the costs of purchases and proceeds from sales of investment securities, other than short-term securities, amounted to $416,979,288 and $441,694,010, respectively.
Cross trades were executed by the Fund pursuant to Rule 17a-7 under the 1940 Act. Cross trading is the buying or selling of portfolio securities between funds to which R&A serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7. Cross trades for the year ended December 31, 2015, were as follows:

PURCHASES     SALES     REALIZED GAIN (LOSS)   $85,028,140     $44,242,674     $17,998,274  
Tax Information:
Distributions during the years ended December 31, 2015 and 2014, were characterized as follows for tax purposes:

ORDINARY INCOME     LONG-TERM CAPITAL GAINS   2015     2014     2015     2014   $16,352,099     $29,761,905     $79,106,737     $103,510,136  

The tax basis components of distributable earnings at December 31, 2015, were as follows:

UNDISTRIBUTED
ORDINARY
INCOME
  UNDISTRIBUTED LONG-TERM
CAPITAL GAINS OR
(CAPITAL LOSSES
NOT SUBJECT TO EXPIRATION)
  NET UNREALIZED
APPRECIATION
(DEPRECIATION)1
  QUALIFIED LATE YEAR
ORDINARY AND
POST-OCTOBER LOSS
DEFERRALS2
  TOTAL
DISTRIBUTABLE
EARNINGS
  $8,993   $7,183,938   $136,552,471   $(747,491)   $142,997,911   1 Includes timing differences on foreign currency, recognition of losses on securities sold, investments in publicly traded partnerships and Trusts and mark-to-market of Passive Foreign Investment Companies. 2 Under the current tax law, capital losses and qualified late year ordinary losses incurred after October 31 may be deferred and treated as occurring on the first day of the following fiscal year.

For financial reporting purposes, capital accounts and distributions to stockholders are adjusted to reflect the tax character of permanent book/tax differences. For the year ended December 31, 2015, the Fund recorded the following permanent reclassifications, which relate primarily to current Real Estate Investment Trusts, publicly traded partnerships and Trusts, foreign currency transactions, foreign capital gains tax, dividend redesignations and gains from the sale of Passive Foreign Investment Companies. Results of operations and net assets were not affected by these reclassifications.

UNDISTRIBUTED NET
INVESTMENT INCOME
  ACCUMULATED NET
REALIZED GAIN (LOSS)
  PAID-IN CAPITAL   $(375,420)   $(18,688)   $394,108  

Management has analyzed the Fund’s tax positions taken on federal income tax returns for all open tax years (2012-2015) and has concluded that as of December 31, 2015, no provision for income tax is required in the Fund’s financial statements.

58 | 2015 Annual Report to Stockholders

Royce Value Trust

Notes to Financial Statements (continued)


Transactions in Affiliated Companies:
An “Affiliated Company” as defined in the Investment Company Act of 1940, is a company in which a fund owns 5% or more of the company’s outstanding voting securities at any time during the period. The Fund effected the following transactions in shares of such companies for the year ended December 31, 2015:

AFFILIATED COMPANY   SHARES
12/31/14
    MARKET VALUE
12/31/14
  COST OF
PURCHASES
  COST OF
SALES
  REALIZED
GAIN (LOSS)
  DIVIDEND
INCOME
  SHARES
12/31/15
  MARKET VALUE
12/31/15
  Stanley Furniture   1,012,235     $2,773,524           1,012,235   $2,824,136   Timberland Bancorp      444,200       4,708,520         $137,702     444,200    5,512,522             $7,482,044               $137,702       $8,336,658  
2015 Annual Report to Stockholders | 59

Royce Value Trust

Report of Independent Registered Public Accounting Firm

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

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statement of operations, of changes in net assets, and of cash flows and the financial highlights present fairly, in all material respects, the financial position of Royce Value Trust, Inc. (the “Fund”) at December 31, 2015, the results of its operations, the changes in its net assets, its cash flows and its financial highlights for the year then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit, which included confirmation of securities at December 31, 2015 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. The statement of changes in net assets for the year ended December 31, 2014 and the financial highlights for each of the fiscal periods presented in the period ended December 31, 2014 were audited by other independent accountants whose report dated February 23, 2015 expressed an unqualified opinion on those statements.

PricewaterhouseCoopers LLP
Baltimore, Maryland
February 23, 2016

60 | 2015 Annual Report to Stockholders

Directors and Officers

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

Charles M. Royce, Director1
Age: 76 | Number of Funds Overseen: 25 | Tenure: Since 1982
Non-Royce Directorships: Director of TICC Capital Corp.
Principal Occupation(s) During Past Five Years: Chief Executive Officer and a Member of the Board of Managers of Royce & Associates, LLC (“Royce”), the Trust’s investment adviser.

Christopher D. Clark, Trustee1, President
Age: 50 | Number of Funds Overseen: 25 | Tenure: Since 2014
Principal Occupation(s) During Past Five Years: President (since July 2014), Co-Chief Investment Officer (since January 2014), Managing Director and, since June 2015, a Member of the Board of Managers of Royce, having been employed by Royce since May 2007.


Patricia W. Chadwick, Director
Age: 67 | Number of Funds Overseen: 25 | Tenure: Since 2009
Non-Royce Directorships: Trustee of ING Mutual Funds and Director of Wisconsin Energy Corp.
Principal Occupation(s) During Past 5 Years: Consultant and President of Ravengate Partners LLC (since 2000).

Richard M. Galkin, Director
Age: 77 | Number of Funds Overseen: 25 | Tenure: Since 1982
Non-Royce Directorships: None
Principal Occupation(s) During Past Five Years: Private investor. Mr. Galkin’s prior business experience includes having served as President of Richard M. Galkin Associates, Inc., telecommunications consultants, President of Manhattan Cable Television (a subsidiary of Time, Inc.), President of Haverhills Inc. (another Time, Inc. subsidiary), President of Rhode Island Cable Television, and Senior Vice President of Satellite Television Corp. (a subsidiary of Comsat).

Stephen L. Isaacs, Director
Age: 76 | Number of Funds Overseen: 25 | Tenure: Since 1989
Non-Royce Directorships: None
Principal Occupation(s) During Past Five Years: Attorney and President of Health Policy Associates, Inc., consultants. Mr. Isaacs’s prior business experience includes having served as President of the Center for Health and Social Policy (from 1996 to 2012); Director of Columbia University Development Law and Policy Program and Professor at Columbia University (until August 1996).

Arthur S. Mehlman, Director
Age: 73 | Number of Funds Overseen: 46 | Tenure: Since 2004
Non-Royce Directorships: Director/Trustee of registered investment companies constituting the 18 Legg Mason Funds.
Principal Occupation(s) During Past Five Years: Director of The League for People with Disabilities, Inc.; Director of University of Maryland Foundation (non-profits). Formerly: Director of Municipal Mortgage & Equity, LLC (from October 2004 to April 1, 2011); Director of University of Maryland College Park Foundation (non-profit) (from 1998 to 2005); Partner, KPMG LLP (international accounting firm) (from 1972 to 2002); Director of Maryland Business Roundtable for Education (from July 1984 to June 2002).

David L. Meister, Director
Age: 76 | Number of Funds Overseen: 25 | Tenure: Since 1982
Non-Royce Directorships: None
Principal Occupation(s) During Past Five Years: Consultant. Chairman and Chief Executive Officer of The Tennis Channel (from June 2000 to March 2005). Mr. Meister’s prior business experience includes having served as Chief Executive Officer of Seniorlife.com, a consultant to the communications industry, President of Financial News Network, Senior Vice President of HBO, President of Time-Life Films, and Head of Broadcasting for Major League Baseball.

G. Peter O’Brien, Director
Age: 70 | Number of Funds Overseen: 46 | Tenure: Since 2001
Non-Royce Directorships: Director/Trustee of registered investment companies constituting the 18 Legg Mason Funds; Director of TICC Capital Corp.
Principal Occupation(s) During Past Five Years: Trustee Emeritus of Colgate University (since 2005); Board Member of Hill House, Inc. (since 1999); Formerly: Trustee of Colgate University (from 1996 to 2005), President of Hill House, Inc. (from 2001 to 2005) and Managing Director/Equity Capital Markets Group of Merrill Lynch & Co. (from 1971 to 1999).

Michael K. Shields, Director
Age: 57 | Number of Funds Overseen: 25 | Tenure: Since 2015
Principal Occupation(s) During Past Five Years: President and Chief Executive Officer of Piedmont Trust Company, a private North Carolina trust company (since May 2012). Mr. Shields’s prior business experience includes owning Shields Advisors, an investment consulting firm (from April 2010 to June 2012).


Francis D. Gannon, Vice President
Age: 48 | Tenure: Since 2014
Principal Occupation(s) During Past Five Years: Co-Chief Investment Officer (since January 2014) and Managing Director of Royce, having been employed by Royce since September 2006.

Daniel A. O’Byrne, Vice President
Age: 53 | Tenure: Since 1994
Principal Occupation(s) During Past Five Years: Principal and Vice President of Royce, having been employed by Royce since October 1986.

Peter K. Hoglund, Treasurer
Age: 49 | Tenure: Since 2015
Principal Occupation(s) During Past Five Years: Principal, Chief Financial Officer, and Chief Administrative Officer of Royce, having been employed by Royce since December 2014. Prior to joining Royce, Mr. Hoglund spent more than 20 years with Munder Capital Management in Birmingham, MI, serving as Managing Director and Chief Financial Officer and overseeing all financial aspects of the firm. He began his career at Munder as a portfolio manager.

John E. Denneen, Secretary and Chief Legal Officer
Age: 48 | Tenure: 1996-2001 and Since 2002
Principal Occupation(s) During Past Five Years: General Counsel and, since June 2015, a Member of the Board of Managers of Royce; Chief Legal and Compliance Officer and Secretary of Royce; Secretary and Chief Legal Officer of The Royce Funds.

Lisa Curcio, Chief Compliance Officer
Age: 56 | Tenure: Since 2004
Principal Occupation(s) During Past Five Years: Chief Compliance Officer of The Royce Funds (since October 2004) and Compliance Officer of Royce (since June 2004).

1 Interested Director.
Director will hold office until their successors have been duly elected and qualified or until their earlier resignation or removal.

2015 Annual Report to Stockholders | 61


Notes to Performance and Other Important Information

The thoughts expressed in this Review and Report concerning recent market movements and future prospects for small company stocks are solely the opinion of Royce at December 31, 2015, and, of course, historical market trends are not necessarily indicative of future market movements. Statements regarding the future prospects for particular securities held in the Funds’ portfolios and Royce’s investment intentions with respect to those securities reflect Royce’s opinions as of December 31, 2015 and are subject to change at any time without notice. There can be no assurance that securities mentioned in this Review and Report will be included in any Royce-managed portfolio in the future. Investments in securities of micro-cap, small-cap and/or mid-cap companies may involve considerably more risk than investments in securities of larger-cap companies. All publicly released material information is always disclosed by the Funds on the website at www.roycefunds.com.

Sector weightings are determined using the Global Industry Classification Standard (“GICS”). GICS was developed by, and is the exclusive property of, Standard & Poor’s Financial Services LLC (“S&P”) and MSCI Inc. (“MSCI”). GICS is the trademark of S&P and MSCI. “Global Industry Classification Standard (GICS)” and “GICS Direct” are service marks of S&P and MSCI.

All indexes referred to are unmanaged and capitalization weighted. Each index’s returns include net reinvested dividends and/or interest income. Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group. The Russell 2000 Index is an index of domestic small-cap stocks. It measures the performance of the 2,000 smallest publicly traded U.S. companies in the Russell 3000 Index. The Russell 2000 Value and Growth indexes consist of the respective value and growth stocks within the Russell 2000 as determined by Russell Investments. The Russell Microcap Index includes 1,000 of the smallest securities in the Russell 2000 Index along with the next smallest eligible securities as determined by Russell. The Russell 1000 Index is an index of domestic large-cap stocks. It measures the performance of the 1,000 largest publicly traded companies in the Russell 3000 Index. The Russell Midcap Index measures the performance of the mid-cap segment of the U.S. equity universe. It includes approximately 800 of the smallest securities in the Russell 1000 Index. The Russell Global Small Cap Index is an unmanaged, capitalization-weighted index of global small-cap stocks. The Russell Global ex-U.S. Large Cap Index is an index of global large-cap stocks, excluding the United States. The Russell Global ex-U.S. Small Cap Index is an index of global small-cap stocks, excluding the United States. The S&P 500 and SmallCap 600 are indexes of U.S. large- and small-cap stocks, respectively, selected by Standard & Poor’s based on market size, liquidity, and industry grouping, among other factors. The Nasdaq Composite is an index of the more than 3,000 common equities listed on the Nasdaq stock exchange. The performance of an index does not represent exactly any particular investment, as you cannot invest directly in an index. Returns for the market indexes used in this report were based on information supplied to Royce by Russell Investments.

The Price-Earnings, or P/E, Ratio is calculated by dividing a company’s share price by its trailing 12-month earnings-per share (EPS). The Price-to-Book, or P/B, Ratio is calculated by dividing a company’s share price by its book value per share. The Morningstar Style Map uses proprietary scores of a stock’s value and growth characteristics to determine its placement in one of the five categories listed on the horizontal axis. These characteristics are then compared to those of other stocks within the same market capitalization band. Each is scored from zero to 100 for both value and growth attributes. The value score is subtracted from the growth score to determine the overall style score. For the vertical, market cap axis, Morningstar subdivides into size groups. Giant-cap stocks are defined as those that account for the top 40% of the capitalization of each style zone; large-cap stocks represent the next 30%; mid-cap stocks the next 20%; small-cap stocks the next 7%; micro-cap stocks the smallest 3%. The Royce Funds is a service mark of The Royce Funds. Distributor: Royce Fund Services, Inc.

Forward-Looking Statements
This material contains forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that involve risks and uncertainties, including, among others, statements as to:

the Funds’ future operating results the prospects of the Funds’ portfolio companies the impact of investments that the Funds have made or may make the dependence of the Funds’ future success on the general economy and its impact on the companies and industries in which the Funds invest, and the ability of the Funds’ portfolio companies to achieve their objectives.

  This Review and Report uses words such as “anticipates,” “believes,” “expects,” “future,” “intends,” and similar expressions to identify forward-looking statements. Actual results may differ materially from those projected in the forward-looking statements for any reason.

  The Royce Funds have based the forward-looking statements included in this Review and Report on information available to us on the date of the report, and we assume no obligation to update any such forward-looking statements. Although The Royce Funds undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make through future stockholder communications or reports.

Authorized Share Transactions
Royce Value Trust, Royce Micro-Cap Trust, and Royce Global Value Trust may each repurchase up to 5% of the issued and outstanding shares of its respective common stock during the year ending December 31, 2015. Any such repurchases would take place at then prevailing prices in the open market or in other transactions. Common stock repurchases would be effected at a price per share that is less than the share’s then current net asset value.

  Royce Value Trust, Royce Micro-Cap Trust, and Royce Global Value Trust are also authorized to offer their common stockholders an opportunity to subscribe for additional shares of their common stock through rights offerings at a price per share that may be less than the share’s then current net asset value. The timing and terms of any such offerings are within each Board’s discretion.

Annual Certifications
As required, the Funds have submitted to the New York Stock Exchange (“NYSE”) for the annual certification of the Funds’ Chief Executive Officer that he is not aware of any violation of the NYSE’s listing standards. The Funds also have included the certification of the Funds’ Chief Executive Officer and Chief Financial Officer required by section 302 of the Sarbanes-Oxley Act of 2002 as exhibits to the Funds’ form N-CSR for the period ended December 31, 2015, filed with the Securities and Exchange Commission.

62 | 2015 Annual Report to Stockholders


Notes to Performance and Other Important Information (continued)

Proxy Voting
A copy of the policies and procedures that The Royce Funds use to determine how to vote proxies relating to portfolio securities and information regarding how each of The Royce Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available, without charge, on The Royce Funds’ website at www.roycefunds.com, by calling (800) 221-4268 (toll-free) and on the website of the Securities and Exchange Commission (“SEC”), at www.sec.gov.

Form N-Q Filing
The Funds file their complete schedules of investments with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s website at www.sec.gov. The Royce Funds’ holdings are also on the Funds’ website approximately 15 to 20 days after each calendar quarter end and remain available until the next quarter’s holdings are posted. The Funds’ Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. To find out more about this public service, call the SEC at (800) 732-0330. The Funds’ complete schedules of investments are updated quarterly, and are available at www.roycefunds.com.

2015 Annual Report to Stockholders | 63


Results of Stockholders Meetings

Royce Value Trust, Inc.

At the 2015 Annual Meeting of Stockholders held on September 24, 2015, the Fund’s stockholders elected three Directors, consisting of:

    VOTES FOR   VOTES WITHHELD   Charles M. Royce   60,125,642   5,450,793   G. Peter O’Brien   60,024,887   5,551,548   David L. Meister   59,781,734   5,794,701  

Royce Micro-Cap Trust, Inc.

At the 2015 Annual Meeting of Stockholders held on September 24, 2015, the Fund’s stockholders elected three Directors, consisting of:

    VOTES FOR   VOTES WITHHELD   Charles M. Royce   30,149,093   405,166   G. Peter O’Brien   30,006,654   547,605   David L. Meister   29,990,136   564,123  

Royce Global Value Trust, Inc.

At the 2015 Annual Meeting of Stockholders held on September 24, 2015, the Fund’s stockholders elected three Directors, consisting of:

    VOTES FOR   VOTES WITHHELD   Charles M. Royce   8,639,282   466,513   G. Peter O’Brien   8,635,385   470,410   David L. Meister   8,576,649   529,146  
64 | 2015 Annual Report to Stockholders
                                                                                       
                                                   












                                  About The Royce Funds   Contact Us                        
Wealth of Experience
With approximately $19 billion in total assets under management, Royce & Associates is committed to the same investment principles that have served us well for more than 40 years. Chuck Royce, our Chief Executive Officer, enjoys one of the longest tenures of any active mutual fund manager. Royce’s investment staff also includes 24 portfolio managers and analysts and seven traders.
  GENERAL INFORMATION
General Royce Funds information including
an overview of our firm and Funds
(800) 221-4268
                       
Multiple Funds, Common Focus
Our goal is to offer both individual and institutional investors the best available micro-cap, small-cap, and/or mid-cap portfolios. We have chosen to concentrate on smaller-company investing by providing investors with a range of funds that take full advantage of this large and diverse sector.
  COMPUTERSHARE
Transfer Agent and Registrar

Speak with a representative about:
• Your account, transactions, and forms
(800) 426-5523
                       
Consistent Discipline
Our approach emphasizes paying close attention to risk and maintaining the same discipline, regardless of market movements and trends. The price we pay for a security must be below our appraisal of its current worth. This requires a thorough analysis of the financial and business dynamics of an enterprise, as though we were purchasing the entire company.
  FINANCIAL ADVISORS AND BROKER-DEALERS
Speak with your regional Royce contact regarding:
• Information about our firm, strategies, and Funds
• Fund Materials
(800) 337-6923
             

Co-Ownership of Funds
It is important that our employees and shareholders share a common financial goal. Our officers, employees, and their families currently have approximately $111 million invested in The Royce Funds and are often among the largest individual shareholders.
            roycefunds.com                                                                      

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

Item 3. Audit Committee Financial Expert.

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

Item 4. Principal Accountant Fees and Services.

(a)   Audit Fees:     Year ended December 31, 2015 - $43,500     Year ended December 31, 2014 - $43,500       (b)   Audit-Related Fees:     Year ended December 31, 2015 - $0     Year ended December 31, 2014 - $0       (c)   Tax Fees:     Year ended December 31, 2015 - $7,200 - Preparation of tax returns     Year ended December 31, 2014 - $7,200 - Preparation of tax returns       (d)   All Other Fees:     Year ended December 31, 2015 - $0     Year ended December 31, 2014 - $0

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

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

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


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

(e)(2)   Not Applicable       (f)   Not Applicable       (g)   Year ended December 31, 2015 - $7,200     Year ended December 31, 2014 - $7,200       (h)   No such services were rendered during 2015 or 2014.

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

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

(b) Not applicable.

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

June 5, 2003, as amended
Through November 6, 2015

Royce & Associates Proxy Voting Guidelines and Procedures

These procedures apply to Royce & Associates, LLC (“Royce”) and all funds and other client accounts for which it is responsible for voting proxies, including all open and closed-end registered investment companies (“The Royce Funds”), limited partnerships, limited liability companies, separate accounts, other accounts for which it acts as investment adviser and any accounts for which it acts as sub-adviser that have delegated proxy voting authority to Royce. Such authority is determined at the inception of each client account and generally: (i) is specifically authorized in the applicable investment management agreement or other written instrument or (ii) where not specifically authorized, is granted to Royce where general investment discretion is given to it in the applicable investment management agreement. The Boards of Trustees/Directors of The Royce Funds (the “Boards”) have delegated all proxy voting decisions to Royce subject to these policies and procedures. Notwithstanding the above, from time to time the Boards may reserve voting authority for specific securities.

Receipt of Proxy Material. Under the oversight of the Head of Administration, a Trade Processing Assistant designated by him is responsible for monitoring receipt of all proxies and


seeking to ensure that proxies are received for all securities for which Royce has proxy voting responsibility. Royce is not responsible for voting proxies it does not receive. The Head of Administration or his designee use Glass Lewis’ ballot reconciliation tool that is directly tied to the daily holdings provided to them by Royce. Proxies are voted electronically and hard copies of any research notes made on the proxy material are stored.

Voting of Proxies. Once proxy material has been received, it is then promptly reviewed by the designated Trade Processing Assistant to evaluate the issues presented. The Head of Administration or his designee, in consultation with a Co-Chief Investment Officer, develops and updates a list of matters Royce treats as “regularly recurring” and is responsible for ensuring that the designated Trade Processing Assistant has an up-to-date list of these matters at all times, including instructions from a Royce Co-Chief Investment Officer on how to vote on those matters on behalf of Royce clients. Examples of “regularly recurring” matters include non-contested elections of directors and non-contested approval of independent auditors. Non-“regularly recurring” matters are brought to the attention of the portfolio manager(s) for the account(s) involved by the designated Administrative Assistant, and, after giving some consideration to advisories from Glass Lewis & Co., an independent third party research firm, the portfolio manager directs that such matters be voted in a way that he or she believes should better protect or enhance the value of the investment. Portfolio Managers may instruct the Head of Administration that they do not want the regularly recurring matters to be voted in accordance with the standing instructions for their accounts and individual voting instructions on all votes, both regularly recurring and non-regularly recurring, will be obtained from such Portfolio Managers.

  a.  
       From time to time, it is possible that one Royce portfolio manager will decide (i) to vote shares held in client accounts he or she manages differently from the vote of another Royce portfolio manager whose client accounts hold the same security or (ii) to abstain from voting on behalf of client accounts he or she manages when another Royce portfolio manager is casting votes on behalf of other Royce client accounts.
             
The designated Trade Processing Assistant reviews all proxy votes collected from Royce’s portfolio managers prior to such votes being cast. If any difference exists among the voting instructions given by Royce’s portfolio managers, as described above, the designated Trade Processing Assistant then presents these proposed votes to the Head of Administration, or his designee, and a Co-Chief Investment Officer. A Co-Chief Investment Officer, after consulting with the relevant portfolio managers, either reconciles the votes or authorizes the casting of differing votes by different portfolio managers. The Head of Administration, or his designee, maintains a log of all votes including when different portfolio managers have cast differing votes, that describes the rationale for allowing such differing votes and contains the initials of both a Co-Chief Investment Officer and Head of Administration, or his designee, allowing such differing votes. The Head of Administration, or his designee, performs a weekly review of all votes cast by Royce to confirm that any conflicting votes were properly handled in accordance with the above-described procedures.

  b.  
       There are many circumstances that might cause Royce to vote against an issuer’s board of directors or “management” proposal. These would include, among others, excessive compensation, unusual management stock options, preferential voting and poison pills. The portfolio managers decide these issues on a case-by-case basis as described above.
          c.  
       A portfolio manager may, on occasion, determine to take no action on a proxy or a specific proxy item and not submit a vote when he or she concludes that the potential benefit of voting is outweighed by the cost, when it is not in the client account’s best interest to vote.
          d.  
       When a client has authorized Royce to vote proxies on its behalf, Royce will generally not accept instructions from the clients regarding how to vote proxies.
          e.  
       If a security is on loan under The Royce Funds’ Securities Lending Program with State Street Bank and Trust Company (“Loaned Securities”), the Head of Administration, or his designee, will recall the Loaned Securities and request that they be delivered within the customary settlement period after the notice, to permit the exercise of their voting rights if the number of shares of the security on loan would have a material effect on The Royce Funds’ voting power at the up-coming stockholder meeting. A material effect is defined for this purpose as any case where the Loaned Securities are 1% or more of a class of a company’s outstanding equity securities. A quarterly report detailing any exceptions that occur in recalling Loaned Securities will be given to the Boards.

Custodian banks are authorized to release all proxy ballots held for Royce client account portfolios to Glass Lewis & Co. for voting, utilizing the Viewpoint proxy voting platform. Substantially all portfolio companies utilize Broadridge to collect their proxy votes.

Under the oversight of the Head of Administration, or his designee, the designated Trade Processing Assistant is responsible for voting all proxies in a timely manner. Votes are returned to Broadridge using Viewpoint as ballots are received, generally two weeks before the scheduled meeting date. The issuer can thus see that the shares were voted, but the actual vote cast is not released to the company until 4:00 pm on the day before the meeting. If proxies must be mailed, they go out at least ten business days before the meeting date.

Conflicts of Interest. The designated Trade Processing Assistant reviews reports generated by Royce’s portfolio management system (“Quest PMS”) that set forth by record date, any security held in a Royce client account which is issued by a (i) public company that is, or a known affiliate of which is, a separate account client of Royce (including sub-advisory relationships), (ii) public company, or a known affiliate of a public company, that has invested in a privately-offered pooled vehicle managed by Royce or (iii) public company, or a known affiliate of a public company, by which the spouse of a Royce employee or an immediate family member of a Royce employee living in the household of such employee is employed, for the purpose of identifying any potential proxy votes that could present a conflict of interest for Royce. The Compliance Department develops and updates the list of such public companies or their known


affiliates and this list is used by Quest PMS to generate these daily reports. This list also contains information regarding the source of any potential conflict relating to such companies. Potential conflicts identified on the “conflicts reports” are brought to the attention of the Compliance Department by the designated Trade Processing Assistant. An R&A Compliance Officer then reviews them to determine if business or personal relationships exist between Royce, its officers, managers or employees and the company that could present a material conflict of interest. Any such identified material conflicts are voted by Royce in accordance with the recommendation given by an independent third party research firm (Glass Lewis & Co.). The Trade Processing Assistant under the supervision of the Head of Administration, maintains a log of all such conflicts identified, the analysis of the conflict and the vote ultimately cast. Each entry in this log is signed by a Co-Chief Investment Officer before the relevant votes are cast.

Recordkeeping. A record of the issues and how they are voted is stored in the Viewpoint system for 7 years. Copies of all physically executed proxy cards, all proxy statements (with it being permissible to rely on proxy statements filed and available on Edgar) and any other documents created or reviewed that are material to making a decision on how to vote proxies are retained by the Trade Processing Assistant in an easily accessible place for a period of not less than six years from the end of the fiscal year during which the last entry was made on such record, the first two years at Royce’s office. In addition, copies of each written client request for information on how Royce voted proxies on behalf of that client, and a copy of any written response by Royce to any (written or oral) client request for information on how Royce voted proxies on behalf of that client will be maintained by Royce’s Head of Administration and/or Royce’s Director of Alternative Investments, or their designee (depending on who received such request) for a period of not less than six years from the end of the fiscal year during which the last entry was made on such record, the first two years at Royce’s office. Royce’s Compliance Department shall maintain a copy of any proxy voting policies and procedures in effect at any time within the last five years.

Disclosure. Royce’s proxy voting procedures will be disclosed to clients upon commencement of a client account. Thereafter, proxy voting records and procedures are generally disclosed to those clients for which Royce has authority to vote proxies as set forth below:
  -  
The Royce Funds – proxy voting records are disclosed annually on Form N-PX (with such voting records also available at www.roycefunds.com). Proxy voting procedures are available in the Statement of Additional Information for the open-end funds, in the annual report on Form N-CSR for the closed-end funds and at www.roycefunds.com.
  -  
Limited Liability Company and Limited Partnership Accounts – proxy voting records are disclosed to members/partners upon request and proxy voting procedures (along with a summary thereof) are provided to members/partners annually (and are available at www.roycefunds.com).
  -  
Separate Accounts – proxy voting records and procedures are disclosed to separate account clients annually.

Royce & Associates, LLC             PROXY VOTING GUIDELINES ON REGULARLY RECURRING MATTERS (revised 4/30/2015)                       Initialed by Co-Chief Investment Officer                 Elect Directors   For         Limit Number of Directors       For     Directors Fees, General (Foreign)   For                       Ratify or appoint Accountants or Auditors   For                                       On positions we own less than 5% of the outstanding shares of the issuer             Where Management and the Proxy Advisor have both voted “For”                           Employee/Non-employee/Director stock option (Incentive) Plans   For         Say on Pay1   For         Frequency of Say on Pay           Abstain                               Differing Recommendations from Management and Proxy Advisor             on positions less than 5% of the outstanding shares of the issuer                           Employee/Non-employee/Director stock option (Incentive) Plans           Abstain Say on Pay           Abstain Frequency of Say on Pay           Abstain                               Limit Directors Liability           Abstain * Eliminate Directors Liability           Abstain *               Reduce Par Value of Stock   For                       Increase Authorized Shares or Shares Outstanding   For                       Classified (Tiered) Board       Against     Eliminate/Declassify classified (Tiered) Board   For                       Deferred Compensation Plan   For                       Name Change of Company   For                       Profit Sharing Plan   For                       CERES (Coalition for Environmentally Responsible             Economies) or Valdez/McBride Principles       Abstain                   Any Other Business       Against                   Adjourn Meeting to Solicit Additional Proxies   For                       Approve Profits/Dividends (Foreigns)   For                       Issue Accounts & Reports (Foreigns)   For                       Approve Auditors Fees   For                      
*except if we own 5% or more of the outstanding shares of the issuer, look at each proposal and ask PM to provide voting instructions.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.
(a)(1) Portfolio Managers of Closed-End Management Investment Companies (information as of December 31, 2015)

Name Title Length of Service Principal Occupation(s) During Past 5 Years Charles M. Royce President and member of the Board of Directors of the Registrant Since 1986 Chief Executive Officer and member of the Board of Managers of Royce & Associates, LLC (“Royce”), investment adviser to the Registrant, Member of the boards of directors/trustees of the Registrant, Royce Micro-Cap Trust, Inc. (“RMT”), Royce Global Value Trust, Inc., The Royce Fund, and Royce Capital Fund (collectively, “The Royce Funds”). Chris E. Flynn Assistant Portfolio Manager* Since April 1, 2007 Assistant Portfolio Manager of the Registrant (since April 1, 2007); and Principal, Portfolio Manager and Senior Analyst at Royce (since 1993). David A. Nadel Assistant Portfolio Manager* Since April 1, 2007 Assistant Portfolio Manager of the Registrant (since April 1, 2007); Director of International Research at Royce (since 2010); Portfolio Manager and Senior Analyst at Royce (since 2006); Senior Portfolio Manager at Neuberger Berman Inc. (2004-2006); and Senior Analyst at Pequot Capital Management, Inc. (2001-2003). Lauren A. Romeo Assistant Portfolio Manager* Since May 1, 2009 Assistant Portfolio of the Registrant (since May 1, 2009); Portfolio Manager and Analyst at Royce (since 2004); Portfolio Manager at Dalton, Grenier, Hartman & Maher (since 2001); an Analyst with Legg Mason Funds Management (2000-2001); and an Analyst with T. Rowe Price Group (1996-2000).
    * Assistant Portfolio Managers may have investment discretion over a portion of the Registrant’s portfolio subject to the supervision of Registrant’s Portfolio Manager.

(a)(2) Other Accounts Managed by Portfolio Manager and Potential Conflicts of Interest (information as of December 31, 2015)

Other Accounts
Name of
Portfolio
Manager
Type of Account Number of
Accounts
Managed
Total
Assets
Managed
Number of
Accounts
Managed for which
Advisory Fee is
Performance-Based
Value of
Managed Accounts for
which Advisory Fee is Performance
Based
Charles M. Royce             Registered investment companies 10 10,590,228,257 2 1,384,441,392   Private pooled investment vehicles 1 23,017,789 1 23,017,789   Other accounts* 12 46,735,901 - -             Chris E. Flynn             Registered investment companies 7 5,058,411,775 2 1,384,441,392   Private pooled investment vehicles - - - -   Other accounts* - - - -             David A. Nadel             Registered investment companies 5 1,259,741,902 1 1,072,034,600   Private pooled investment vehicles - - - -   Other accounts* - - - -             Lauren A. Romeo             Registered investment companies 4 6,765,070,708 1 1,072,034,600   Private pooled investment vehicles 2 457,744,973 - -   Other accounts* - - - -
*Other accounts include all other accounts managed by the Portfolio Manager in either a professional or personal capacity except for personal accounts subject to pre-approval and reporting requirements under the Registrant’s Rule 17j-1 Code of Ethics.

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

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

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

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

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


(a)(3) Description of Portfolio Manager Compensation Structure (information as of December 31, 2014)

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

  -  
BASE SALARY. Each Portfolio Manager is paid a base salary. In setting the base salary, Royce seeks to be competitive in light of the particular Portfolio Manager’s experience and responsibilities.
          -  
PERFORMANCE-RELATED VARIABLE COMPENSATION. Each Portfolio Manager receives quarterly Performance-Related Variable Compensation that is either asset-based, or revenue-based and therefore in part based on the value of the net assets of the account for which he or she is being compensated, determined with reference to each of the registered investment company and other client accounts they are managing. The revenue used to determine the quarterly Performance-Related Variable Compensation received by Charles M. Royce that relates to each of the Registrant and RMT is performance-based fee revenue. For all Portfolio Managers, the Performance-Related Variable Compensation applicable to the registered investment company accounts managed by the Portfolio Manager is subject to downward adjustment or elimination based on a combination of 3-year, 5-year risk and 10-year risk-adjusted pre-tax returns of such accounts relative to all small-cap objective funds with three years of history tracked by Morningstar (as of December 31, 2015 there were 425 such funds tracked by Morningstar), the 5-year absolute returns of such accounts relative to 5-year U.S. Treasury Notes and absolute returns over the prior full market cycle and current cycle to date vs. the accounts’ benchmark. The Performance-Related Variable Compensation applicable to non-registered investment company accounts managed by a Portfolio Manager is not subject to performance-related adjustment.

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

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

Charles M. Royce, in addition to the above-described compensation, also receive variable compensation based on Royce’s retained pre-tax operating profit. This variable compensation, along with the Performance-Related Variable Compensation and Firm-Related Variable Compensation, generally represents the most significant element of Mr. Royce’s compensation. A portion of the above-described compensation payable to Mr. Royce relates to his responsibilities as Royce’s Chief Executive Officer and President of The Royce Funds.


(a)(4) Dollar Range of Equity Securities in Registrant Beneficially Owned by Portfolio Manager (information as of December 31, 2015)

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

Portfolio Manager Dollar Range of Registrant’s Shares Beneficially Owned Charles M. Royce Over $1,000,000 Chris E. Flynn $100,001 to $500,000 David A. Nadel None Lauren A. Romeo $100,001 to $500,000

(b) Not Applicable

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

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

Item 11. Controls and Procedures.

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

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

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

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

(a)(3) Not Applicable

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


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

ROYCE VALUE TRUST, INC.

BY: /s/ Christopher D. Clark           Christopher D. Clark     President         Date: March 2, 2016        

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

ROYCE VALUE TRUST, INC. ROYCE VALUE TRUST, INC.             BY: /s/ Christopher D. Clark     BY: /s/ Peter K. Hoglund   Christopher D. Clark       Peter K. Hoglund   President       Treasurer             Date: March 2, 2016     Date: March 2, 2016