First Quarter Report. March 31, Royce Global Value Trust. Royce Micro-Cap Trust. Royce Value Trust RGT RMT RVT

Transcription

1 First Quarter Report March 3, 208 RGT Royce Global Value Trust RMT Royce Micro-Cap Trust RVT Royce Value Trust

2 A Few Words on Closed-End Funds Royce & Associates, LP manages three closed-end funds: Royce Global Value Trust, which invests primarily in both U.S. and non-u.s. small-cap securities, Royce Micro-Cap Trust, which invests primarily in micro-cap securities; and Royce Value Trust, which invests primarily in small-cap securities. A closed-end fund is an investment company whose shares are listed and traded on a stock exchange. Like all investment companies, including open-end mutual funds, the assets of a closed-end fund are professionally managed in accordance with the investment objectives and policies approved by the fund s Board of Directors. A closed-end fund raises cash for investment by issuing a fixed number of shares through initial and other public offerings that may include shelf offerings and periodic rights offerings. Proceeds from the offerings are invested in an actively managed portfolio of securities. Investors wanting to buy or sell shares of a publicly traded closed-end fund after the offerings must do so on a stock exchange, as with any publicly traded stock. Shares of closed-end funds frequently trade at a discount to their net asset value. This is in contrast to openend 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, with significant investments in small- and micro-cap securities. The fixed capital structure allows permanent leverage to be employed as a means to enhance capital appreciation potential. Royce Micro-Cap Trust and Royce Value Trust distribute capital gains and income, if any, on a quarterly basis. Each of these Funds has adopted a managed 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 5, 7 and 9. For additional information on the Funds Distribution Reinvestment and Cash Purchase Options and the benefits for stockholders, please visit our website at Managed Distribution Policy The Board of Directors of each of Royce Micro-Cap Trust and Royce Value Trust has authorized a managed distribution policy ( MDP ). Under the MDP, Royce Micro-Cap Trust and Royce Value Trust pay quarterly distributions at an annual rate of 7% of the average of the prior four quarter-end net asset values, with the fourth quarter being the greater of these annualized rates or the distribution required by IRS regulations. With each distribution, the Fund will issue a notice to its stockholders and an accompanying press release that provides detailed information regarding the amount and composition of the distribution (including whether any portion of the distribution represents a return of capital) and other information required by a Fund s MDP. You should not draw any conclusions about a Fund s investment performance from the amount of distributions or from the terms of a Fund s MDP. A Fund s Board of Directors may amend or terminate the MDP at any time without prior notice to stockholders; however, at this time there are no reasonably foreseeable circumstances that might cause the termination of any of the MDPs.

3 Performance Table Average Annual NAV Total Returns (%) Through March 3, 208 ROYCE GLOBAL VALUE TRUST ROYCE MICRO-CAP TRUST ROYCE VALUE TRUST RUSSELL GLOBAL SMALL CAP RUSSELL MICROCAP First Quarter One-Year Three-Year Five-Year N/A Year N/A Year N/A Year N/A N/A Year N/A N/A 0.43 N/A N/A Year N/A N/A.00 N/A N/A 9.8 Since Inception N/A N/A N/A Inception Date 0/7/3 2/4/93 /26/86 N/A N/A N/A Not annualized. Important Performance and Risk Information All performance information in this Report reflects past performance, is presented on a total return basis net of each Fund s investment advisory fee and all other Fund operating expenses, 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 The Funds are closed-end registered investment companies whose respective shares of common stock may trade at a discount to their net asset value. Shares of each Fund s common stock are also subject to the market risks of investing in the underlying portfolio securities held by each Fund. All indexes referenced are unmanaged and capitalization weighted. Each index s returns include net reinvested dividends and/or interest income. Frank Russell Company ( Russell ) is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and / or Russell ratings or underlying data and no party may rely on any Russell Indexes and / or Russell ratings and / or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell s express written consent. Russell does not promote, sponsor or endorse the content of this communication. The Russell Global Small Cap Index is an unmanaged, capitalization-weighted index of global small-cap stocks. The Russell Microcap Index includes,000 of the smallest securities in the Russell 2000 Index along with the next smallest eligible securities as determined by Russell. 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 performance of an index does not represent exactly any particular investment, as you cannot invest directly in an index. Royce Global Value, Micro-Cap and Value Trust shares trade on the NYSE. Royce Fund Services, LLC ( RFS ) is a member of FINRA and may file this material with FINRA on behalf of each Fund. RFS is not an underwriter or distributor of any of the Funds. RUSSELL 2000 Table of Contents Stockholder Letter 2 Fund Performance 3 Royce Global Value Trust 4 Royce Micro-Cap Trust 6 Royce Value Trust 8 Royce Closed-End Funds First Quarter 208 Report

4 Stockholder Letter Dear Stockholder, April 23, 208 While Q8 ended with the global equity markets essentially flat, there was plenty of significant movement, as the sudden reappearance of increased volatility created a number of wild days 4 featured triple-digit moves up or down in the Dow compared to 58 during all of 207. Additionally, the Russell 2000 moved % or more in 33% of its trading days during the quarter compared to 8% in all of 207. Under these more volatile conditions, small-caps slightly outpaced their large-caps counterparts, with the Russell 2000 Index showing a 0.% loss in the first quarter versus a decline of 0.7% for the Russell 000 Index. Within the U.S. small-cap market, the Russell 2000 Value Index fell 2.6% versus a gain of 2.3% for the Russell 2000 Growth Index. Much of the increased volatility was driven by tariff and trade war talk between the U.S. and China, which sent global share prices plummeting (and bonds rising) during March and into April. The possibility that major players in social media might soon be facing greater regulation also shook investors confidence. From our perspective as small-cap specialists, the return of volatility is another component of the normalizing environment that s been slowly developing over the last couple of years as well as a force that s created plenty of buying opportunities for us in the small-cap space. So while we expect and welcome increased levels of volatility, we are also not as concerned with the other headline items tariffs, rising rates, and inflation at least over the long run. Regarding the first, we anticipate that cooler heads will ultimately prevail, creating some kind of arrangement that works, particularly among the U.S., China, Europe, and Japan. But tariffs and trade wars are undoubtedly a destabilizing force, as we saw in late March and early April. Markets crave some degree of certainty, and anything that creates less is an obvious negative. So while we have concerns about tariffs, we have also pursued potential opportunities when headlines have created what we think are attractive dislocations between share prices and company fundamentals and/or long-term prospects. We also believe that much of the anxiety surrounding both rising rates and inflation misses some very important points. First, rising rates are healthy in the context of where rates have spent most of the last decade. Increases, which have so far been slow and incremental, are another element in the gradual normalization of the economy and capital markets. Since the Fed first began to raise rates, we ve seen it as a sign that the economy is strong. We have a similar view of inflation in a growing economy, there should be some inflation. So the real issue as we see it is not rising rates or inflation per se, but the anticipated rate of change. If each climbs at a more expected pace, then we do not see either as likely to significantly slow or reverse moderate advances for equities. If one or the other rises quickly and unexpectedly, then it becomes an issue. But in that case we d be talking about a shock to the system which is very different from what we are seeing now with both rates and inflation. As for the prospects for our own small-cap strategies, we suspect that the longer economic growth remains strong and earnings for cyclical companies continue to improve or in some cases, recover the more likely we think it is that these companies will resume market leadership. And our own research shows that companies in cyclical industries continue to enjoy some of the strongest earnings prospects. In this context, then, our long-term view remains cautiously optimistic. While we continue to expect lower overall returns for stocks than we ve experienced over the last five years, we also anticipate that small-cap leadership will come from companies in economically sensitive industries that blend profitability, relatively attractive valuation, and global exposure. Sincerely, Charles M. Royce Christopher D. Clark Francis D. Gannon Chairman of the Board CEO and Co-Chief Investment Officer Co-Chief Investment Officer Royce & Associates, LP Royce & Associates, LP Royce & Associates, LP 2 Royce Closed-End Funds First Quarter 208 Report

5 RGT Royce Global Value Trust Royce Global Value Trust advanced 0.7% on an NAV ( net asset value ) basis and.4% on a market price basis for the first quarter, outperforming its unleveraged benchmark, the Russell Global Small Cap Index, which declined 0.3% for the same period. Financials made by far the biggest positive contribution, followed by Information Technology, while Materials, Industrials, and Consumer Discretionary detracted most from quarterly results. Capital markets (Financials) was the topcontributing industry group, thanks in large part to a very strong performance from electronic market maker Virtu Financial, while construction & engineering (Industrials) and metals & mining (Materials) were the leading detractors at the industry level a pullback that was unexpected given the strength of global economic growth. Relative to the Russell Global Small Cap, the portfolio s most sizable advantage came from superior stock selection in Financials, where our position in Virtu again proved a significant positive, while stock picking was also a strength in Energy. Conversely, stock selection was a negative factor in two Health Care industries, health care equipment & services and pharmaceuticals, as well as in Information Technology s IT services group. RMT Royce Micro-Cap Trust Royce Micro-Cap Trust increased 0.6% on an NAV basis and.0% on a market price basis for the first quarter, beating one of its unleveraged benchmarks, the small-cap Russell 2000 Index, which fell 0.%, while trailing the Russell Microcap Index, which gained 0.7%, on an NAV basis by a very small margin for the same period. On a sector basis, Information Technology led, followed by Health Care. These were also the two bestperforming sectors in the Russell Industrials, Materials, and Consumer Discretionary had the largest negative effect, which surprised us in that these cyclical areas typically do well during periods of solid economic growth such as we currently have. We therefore used lower stock prices to build or initiate names that we liked in these areas. The top-contributing industries were electronic equipment, instruments & components (Information Technology) and biotechnology (Health Care) while machinery (Industrials) and metals & mining (Materials) detracted most. The portfolio s biggest relative advantages versus the Russell 2000 came from two of its smallest sectors. In Real Estate, we benefited from superior stock selection as well as our lower weighting in REITs, while in Energy, stock selection, particularly in the energy equipment & services group, drove the performance edge. By contrast, ineffective stock selection in the Materials sector s metals & mining group hurt relative results as did our lower weighting in Health Care. RVT Royce Value Trust Royce Value Trust fell 0.4% on an NAV basis and 2.0% on a market price basis for the first quarter, trailing each of its unleveraged benchmarks: the small-cap Russell 2000 was down 0.% while the S&P SmallCap 600 Index rose 0.5% during the same period. Four of the Fund s equity sectors made a negative impact on quarterly results. Consumer Discretionary made the largest detraction by a wide margin, followed by Industrials, Materials, and Consumer Staples. The biggest positive contributions came from Health Care and Real Estate. At the industry level, the biggest negative impacts came from two groups in Industrials, machinery and construction & engineering. In light of ongoing economic growth, this cyclical weakness in the quarter was a surprise to us while also presenting us with attractive opportunities. Aerospace & defense (Industrials) bucked this trend to be the top-contributing industry group, followed by real estate management & development (Real Estate). Relative to the Russell 2000, the largest disadvantage came from ineffective stock selection in Information Technology, where growth issues significantly outpaced their value counterparts. Lower exposure to the strong-performing Health Care sector also hurt as did stock picking in Consumer Discretionary. On a positive note, the portfolio benefited on a relative basis from stock picking and our lower weighting in Real Estate as well as savvy stock selection in Energy. The thoughts concerning recent market movements and future prospects for small-company stocks are solely those of Royce & Associates, LP and, of course, there can be no assurance with regard to future market movements. Micro-, small-, and/or mid-cap stocks may involve considerably more risk than larger-cap stocks. The Funds may also invest to varying degrees in foreign securities, which may involve political, economic, currency, and other risks not encountered in U.S. investments. Past performance is no guarantee of future results. Cyclical and Defensive are defined as follows: Cyclical: Consumer Discretionary, Energy, Financials, Industrials, Information Technology, and Materials; Defensive: Consumer Staples, Health Care, Real Estate, Telecommunication Services, and Utilities. Frank Russell Company ( Russell ) is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and / or Russell ratings or underlying data and no party may rely on any Russell Indexes and / or Russell ratings and / or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell s express written consent. Russell does not promote, sponsor or endorse the content of this communication. The Russell Global Small Cap Index is an unmanaged, capitalization-weighted index of global small-cap stocks. The Russell 2000 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,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 000 Index measures the performance of the large-cap segment of the U.S. equity universe and includes the largest,000 companies in the Russell 3000 Index. The S&P SmallCap 600 is an index of U.S. small-cap stocks selected by Standard & Poor s based on market size, liquidity, and industry grouping, among other factors. 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. Royce has not independently verified the above-described information. Royce Closed-End Funds First Quarter 208 Report 3

6 Royce Global Value Trust Q8 Highlights Listed on the NYSE (Symbol: RGT) Average weekly trading volume of approximately 36,200 shares The Fund s officers, employees, and their families currently own more than 247,700 shares, or approximately 2% of the Fund s outstanding common stock Annualized operating expenses (including advisory fee) relative to average net assets were.66% for the three months ended 3/3/8 RGT Average Annual Total Returns (%) Through 3/3/8 NAV MARKET VALUE RUSSELL GLOBAL SMALL CAP First Quarter One-Year Three-Year Since Inception (0/7/3) Not annualized. All performance information in this Report reflects past performance, is presented on a total return basis net of the Fund s investment advisory fee and all other Fund operating expenses, 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 The Fund invests primarily in securities of small- and mid-cap companies, which may involve considerably more risk than investments in securities of larger-cap companies. The Fund s broadly diversified portfolio does not ensure a profit or guarantee against loss. 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. 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. Frank Russell Company ( Russell ) is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and / or Russell ratings or underlying data and no party may rely on any Russell Indexes and / or Russell ratings and / or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell s express written consent. Russell does not promote, sponsor or endorse the content of this communication. The Russell Global Small Cap Index is an unmanaged, capitalization-weighted index of global small-cap stocks. Fund Information and Portfolio Diagnostics 207 Turnover Rate 34% Weighted Average P/E Ratio,2 9.9x Weighted Average P/B Ratio 2.7x Net Assets $32M Number of Holdings 30 Market Price $0.97 Net Asset Value $2.57 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 of its underlying stocks. 2 The Fund s P/E Ratio calculation uses trailing 2-month earnings and excludes companies with zero or negative earnings (7% of portfolio holdings as of 3/3/8). Top 0 Positions % of Net Assets SEI Investments 2.0 FLIR Systems 2.0 Kirby Corporation.9 Virtu Financial Cl. A.9 TGS-NOPEC Geophysical.7 Clarkson.3 Lazard Cl. A.3 Air Lease Cl. A.2 Spirax-Sarco Engineering.2 VZ Holding.2 Portfolio Sector Breakdown % of Net Assets Information Technology Financials Health Care Materials Consumer Discretionary Energy Real Estate Consumer Staples Telecommunication Services Utilities Cash and Cash Equivalents, Net of Outstanding Line of Credit Portfolio Country Breakdown % of Net Assets,2 Industrials United States 27.8 United Kingdom.3 Canada 9.2 Japan 7.8 France 4.2 Australia 4.2 Switzerland 3.8 ¹ Represents countries that are 3% or more of net assets. ² Securities are categorized by the country of their headquarters Royce Global Value Trust may repurchase up to 5% of the issued and outstanding shares of its common stock during the year ending December 3, 208. 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. The Board of Directors of Royce Global Value Trust is authorized to offer its common stockholders an opportunity to subscribe for additional shares of 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 offering are within the Board s discretion. 4 Royce Closed-End Funds First Quarter 208 Report

7 Royce Global Value Trust RGT Q8 Market Price Performance History Since Inception (0/7/3) Cumulative Performance of Investment Royce Global Value Trust -YR 26.% 5-YR N/A 0-YR N/A 5-YR N/A 20-YR N/A SINCE INCEPTION (0/7/3) 29.8% Adjusted Market Price¹ Actual Market Price² 5 $.65 $ ¹ Reflects the cumulative performance experience of a continuous common stockholder who purchased one share at inception ($8.975 IPO) and reinvested all distribu tions. ² Reflects the actual month-end market price movement of one share as it has traded on NYSE 0 Statement Of Changes In Net Assets THREE MONTHS ENDED 3/3/8 (UNAUDITED) YEAR ENDED 2/3/7 Investment Operations: Net investment income (loss) $ 65,070 $ 24,05 Net realized gain (loss) on investments and foreign currency 4,007,94 6,555,345 Net change in unrealized appreciation (depreciation) on investments and foreign currency (3,063,806) 24,56,52 Net increase (decrease) in net assets from investment operations,009,205 30,952,962 Distributions: Net investment income (,45,697) Net realized gain on investments and foreign currency Total distributions (,45,697) Capital Stock Transactions: Reinvestment of distributions Total capital stock transactions 49,30 49,30 Net Increase (Decrease) in Net Assets,009,205 30,298,395 Net Assets: Beginning of period 30,526,82 00,227,787 End of period $ 3,535,387 $ 30,526,82 Analysis Of Net Assets 3/3/8 (UNAUDITED) 2/3/7 Paid-in capital $ 7,980,744 $ 7,980,744 Undistributed net investment income (loss) (,34,239) (,99,309) Accumulated net realized gain (loss) on investments and foreign currency (9,972,932) (3,980,873) Net unrealized appreciation (depreciation) on investments and foreign currency 24,66,84 27,725,620 Net Assets $ 3,535,387 $ 30,526,82 Royce Closed-End Funds First Quarter 208 Report 5

8 Royce Micro-Cap Trust Q8 Highlights Only closed-end fund focusing on micro-cap securities Listed on the NYSE (Symbol: RMT) Average weekly trading volume of more than 540,800 shares The Fund s officers, employees, and their families currently own more than,50,200 shares, or approximately 4% of the Fund s outstanding common stock Annualized operating expenses (including advisory fee) relative to average net assets were.48% for the three months ended 3/3/8 RMT Average Annual Total Returns (%) Through 3/3/8 NAV MARKET VALUE RUSSELL 2000 RUSSELL MICROCAP First Quarter One-Year Three-Year Five-Year Year Year Year N/A Since Inception (2/4/93) N/A Not annualized. All performance information in this Report reflects past performance, is presented on a total return basis net of the Fund s investment advisory fee and all other Fund operating expenses, 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 The Fund invests primarily in securities of 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. The Fund s investments in foreign securities may involve political, economic, currency, and other risks not encountered in U.S. investments. 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. Frank Russell Company ( Russell ) is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and / or Russell ratings or underlying data and no party may rely on any Russell Indexes and / or Russell ratings and / or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell s express written consent. Russell does not promote, sponsor or endorse the content of this communication. The Russell 2000 is an unmanaged, capitalization-weighted index of domestic smallcap 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,000 of the smallest securities in the small-cap Russell 2000 Index, along with the next smallest eligible securities as determined by Russell. Fund Information and Portfolio Diagnostics 207 Turnover Rate 5% Weighted Average P/B Ratio 2.0x Net Assets $408M Number of Holdings 37 Non-U.S. Investments (% of Net Assets) 20.0% Market Price $9.36 Net Asset Value $0.35 Net Leverage 2 3.8% 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 of its underlying stocks. 2 Net Leverage. This is the percentage, in excess of 00%, of the total value of equity type investments, divided by net assets. Top 0 Positions % of Net Assets Mesa Laboratories.7 Orbotech.3 Heritage-Crystal Clean.3 Surmodics.2 Major Drilling Group International.2 Kadant.2 Clarkson. FARO Technologies. FRP Holdings.0 Sun Hydraulics.0 Portfolio Sector Breakdown % of Net Assets Information Technology 2.6 Industrials Financials Health Care Consumer Discretionary Energy Materials Real Estate Consumer Staples Utilities Telecommunication Services Outstanding Line of Credit, Net of Cash and Cash Equivalents Royce Micro-Cap Trust may repurchase up to 5% of the issued and outstanding shares of its common stock during the year ending December 3, 208. 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. The Board of Directors of Royce Micro-Cap Trust is authorized to offer its common stockholders an opportunity to subscribe for additional shares of 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 offering are within the Board s discretion. 6 Royce Closed-End Funds First Quarter 208 Report

9 Royce Micro-Cap Trust RMT Q8 Market Price Performance History Since Inception (2/4/93) Cumulative Performance of Investment Royce Micro-Cap Trust -YR 20.5% 5-YR 74.3% 0-YR 37.0% 5-YR 45.6% 20-YR 469.6% SINCE INCEPTION (2/4/93) 007.9% Adjusted Market Price¹ Actual Market Price² 00 $83.0 $ ¹ Reflects the cumulative performance experience of a continuous common stockholder who purchased one share at inception ($7.50 IPO), reinvested all distribu tions and fully participated in the primary subscription of the Fund's 994 rights offering. ² Reflects the actual month-end market price movement of one share as it has traded on NYSE and, prior to 2//03, on the Nasdaq. Statement Of Changes In Net Assets THREE MONTHS ENDED 3/3/8 (UNAUDITED) YEAR ENDED 2/3/7 Investment Operations: Net investment income (loss) $ 447,709 $ 2,26,05 Net realized gain (loss) on investments and foreign currency 3,420,252 25,657,03 Net change in unrealized appreciation (depreciation) on investments and foreign currency (,635,320) 33,36,932 Net increase (decrease) in net assets from investment operations 2,232,64 60,920,086 Distributions: Net investment income (755,452) (2,282,52) Net realized gain on investments and foreign currency (4,824,558) (24,35,45) Return of capital Total distributions (,460,966) (7,040,976) (26,47,963) Capital Stock Transactions: Reinvestment of distributions 2,927,558,702,040 Total capital stock transactions 2,927,558,702,040 Net Increase (Decrease) in Net Assets (,880,777) 46,204,63 Net Assets: Beginning of period 409,904,96 363,700,753 End of period $ 408,024,39 $ 409,904,96 Amounts are subject to change and recharacterization at year end. Analysis Of Net Assets 3/3/8 (UNAUDITED) 2/3/7 Paid-in capital $ 332,046,23 $ 329,8,673 Undistributed net investment income (loss) (554,822) (,002,53) Accumulated net realized gain (loss) on investments and foreign currency 4,938,695,58,443 Net unrealized appreciation (depreciation) on investments and foreign currency 78,635,0 80,270,33 Quarterly distributions (7,040,976) Net Assets $ 408,024,39 $ 409,904,96 Royce Closed-End Funds First Quarter 208 Report 7

10 Royce Value Trust Q8 Highlights RVT Listed on the NYSE (Symbol: RVT) Average weekly trading volume of more than,382,500 shares The Fund s officers, employees, and their families currently own more than 395,200 shares of the Fund s outstanding common stock Annualized operating expenses (including advisory fee) relative to average net assets were 0.65% for the three months ended 3/3/8 Average Annual Total Returns (%) Through 3/3/8 Fund Information and Portfolio Diagnostics 207 Turnover Rate 9% Weighted Average P/E Ratio,2 22.0x Weighted Average P/B Ratio 2.2x Net Assets NAV MARKET VALUE S&P 600 RUSSELL 2000 First Quarter One-Year Three-Year Five-Year Year Year Year Year Year Since Inception (/26/86) Not annualized. All performance information in this Report reflects past performance, is presented on a total return basis net of the Fund s investment advisory fee and all other Fund operating expenses, 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 The Fund invests primarily in securities of small-cap and/or 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. The Fund s investments in foreign securities may involve political, economic, currency, and other risks not encountered in U.S. investments. 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 referenced are unmanaged and capitalization weighted. Frank Russell Company ( Russell ) is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and / or Russell ratings or underlying data and no party may rely on any Russell Indexes and / or Russell ratings and / or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell s express written consent. Russell does not promote, sponsor or endorse the content of this communication. The Russell 2000 is an unmanaged, capitalizationweighted index of domestic small-cap stocks that measures performance of the 2,000 smallest publicly traded U.S. companies in the Russell 3000 Index. The SmallCap 600 Index is a U.S. small-cap stocks selected by Standard & Poor s based on market size, liquidity, and industry grouping, among other factors. $,459M Number of Holdings 437 Non-U.S. Investments (% of Net Assets) 8.% Market Price $5.56 Net Asset Value $7. Net Leverage 3 3.6% 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 of its underlying stocks. 2 The Fund s P/E Ratio calculation uses trailing 2-month earnings and excludes companies with zero or negative earnings (6% of portfolio holdings as of 3/3/8). 3 Net Leverage. This is the percentage, in excess of 00%, of the total value of equity type investments, divided by net assets. 8 Royce Closed-End Funds First Quarter 208 Report Top 0 Positions % of Net Assets FLIR Systems 2. HEICO Corporation.9 Ash Grove Cement.8 Quaker Chemical.3 Copart.3 Sun Hydraulics.3 Cognex Corporation.2 Reliance Steel & Aluminum. Clarkson. Coherent.0 Portfolio Sector Breakdown % of Net Assets Information Technology Financials Materials Consumer Discretionary Energy Health Care Real Estate Consumer Staples Utilities Telecommunication Services Industrials Outstanding Line of Credit, Net of -3.6 Cash and Cash Equivalents Royce Value Trust may repurchase up to 5% of the issued and outstanding shares of its common stock during the year ending December 3, 208. 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. The Board of Directors of Royce Value Trust recently approved offering its common stockholders an opportunity to subscribe for additional shares of common stock through a rights offering 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 offering will be disclosed to stockholders in accordance with applicable requirements

11 Royce Value Trust RVT Q8 Market Price Performance History Since Inception (/26/86) Cumulative Performance of Investment Royce Value Trust -YR 20.0% 5-YR 7.9% 0-YR 2.2% 5-YR 343.9% 20-YR 434.5% SINCE INCEPTION (/26/86) 987.2% Adjusted Market Price¹ Actual Market Price² 250 $ $ Reflects the cumulative performance experience of a continuous common stockholder who purchased one share at inception ($0.00 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. Statement Of Changes In Net Assets THREE MONTHS ENDED 3/3/8 (UNAUDITED) YEAR ENDED 2/3/7 Investment Operations: Net investment income (loss) $ 3,505,44 $ 0,969,682 Net realized gain (loss) on investments and foreign currency 27,03,43 8,750,067 Net change in unrealized appreciation (depreciation) on investments and foreign currency (38,230,326) 46,329,96 Net increase (decrease) in net assets from investment operations (7,622,039) 239,049,665 Distributions: Net investment income (2,062,06) (0,679,02) Net realized gain on investments and foreign currency (22,468,380) (85,44,777) Total distributions (24,530,44) (96,20,798) Capital Stock Transactions: Reinvestment of distributions 0,628,99 4,508,874 Total capital stock transactions 0,628,99 4,508,874 Net Increase (Decrease) in Net Assets (2,523,489) 84,437,74 Net Assets: Beginning of period,480,449,453,296,0,72 End of period $,458,925,964 $,480,449,453 Amounts are subject to change and recharacterization at year end. Analysis Of Net Assets 3/3/8 (UNAUDITED) 2/3/7 Paid-in capital $,06,749,98 $,006,20,990 Undistributed net investment income (loss),780,022 (,725,22) Accumulated net realized gain (loss) on investments and foreign currency 3,322,407 4,29,264 Net unrealized appreciation (depreciation) on investments and foreign currency 433,603,995 47,834,32 Quarterly distributions (24,530,44) Net Assets $,458,925,964 $,480,449,453 Royce Closed-End Funds First Quarter 208 Report 9

12 CE-REP Fifth Avenue New York, NY 05 RGT RMT RVT Royce Global Value Trust Royce Micro-Cap Trust Royce Value Trust First Quarter Report March 3, 208 roycefunds.com