UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act File Number: 811-22532

 

Name of Fund:  Royce Global Value Trust, Inc.
Fund Address:  745 Fifth Avenue
  New York, NY 10151

 

Name and address of agent for service:

John E. Denneen, Esq.

Royce & Associates, LP

745 Fifth Avenue

New York, NY 10151

 

Registrant’s telephone number, including area code: (212) 508-4500

 

Date of fiscal year end: 12/31/2018

 

Date of reporting period: 3/31/2018

 

Item 1 - Schedule of Investments

 

 

 
 
SCHEDULE OF INVESTMENTS
ROYCE GLOBAL VALUE TRUST
MARCH 31, 2018 (UNAUDITED)

    SHARES     VALUE  
COMMON STOCKS – 96.4%              
               
Australia – 4.2%              

ALS

   155,000     $ 888,917  

Austal

   75,000       104,945  

Bingo Industries

   60,700       131,452  

Bravura Solutions

   450,000       942,528  

Cochlear

   5,500       771,726  

Decmil Group 1

   60,000       54,256  

Hansen Technologies

   335,000       1,069,794  

HT&E

   53,400       78,939  

Imdex 1

   83,800       76,736  

IPH

   260,000       678,101  

NetComm Wireless 1

   30,000       27,286  

Seeing Machines 1

   2,199,217       153,374  

Tassal Group

   23,000       67,276  

Technology One

   130,000       522,499  
             
Total           5,567,829  
             
               
Austria – 0.9%              

Mayr-Melnhof Karton

   7,500       1,137,760  
             
Total           1,137,760  
             
               
Brazil – 2.3%              

B3

   32,847       265,546  

Construtora Tenda 1

   20,000       159,627  

Direcional Engenharia 1

   40,900       75,322  

Industrias Romi

   51,900       155,474  

International Meal Company Alimentacao

   25,000       64,366  

Minerva

   26,250       60,189  

MRV Engenharia e Participacoes

   21,700       106,809  

OdontoPrev

   225,000       1,017,508  

T4F Entretenimento

   50,400       161,820  

TOTVS

   113,000       986,091  
             
Total           3,052,752  
             
               
Canada – 9.2%              

Agnico Eagle Mines 2

   10,000       420,700  

AGT Food and Ingredients

   5,800       75,136  

Altus Group

   28,000       708,938  

Calfrac Well Services 1

   20,000       91,435  

Canaccord Genuity Group

   92,000       494,866  

Centric Health 1

   340,800       121,681  

Computer Modelling Group

   208,000       1,499,841  

Corsa Coal 1

   90,000       125,044  

E-L Financial

   1,200       752,591  

Exco Technologies

   20,000       141,111  

FirstService Corporation

   10,300       753,754  

Franco-Nevada Corporation 2,3

   12,800       875,392  

Genworth MI Canada

   13,000       413,707  

Gluskin Sheff + Associates

   23,000       260,286  

Hudbay Minerals

   13,000       92,300  

Leucrotta Exploration 1

   41,900       52,686  

Magellan Aerospace

   14,000       212,334  

Major Drilling Group International 1

   199,000       1,028,711  

Morneau Shepell

   50,000       1,003,221  

Newalta Corporation 1

   75,000       72,185  

North American Energy Partners

   22,000       116,600  

Pan American Silver 2

   31,800       513,570  

Rocky Mountain Dealerships

   16,000       152,257  

Sandstorm Gold 1

   20,800       99,008  

Solium Capital 1

   66,000       572,220  

Sprott

   520,600       1,256,697  

TORC Oil & Gas

   22,400       114,751  

Western Forest Products

   50,150       100,818  
             
Total           12,121,840  
             
               
Chile – 0.1%              

SMU 1

   318,400       97,539  
             
Total           97,539  
             
               
China – 1.6%              

A-Living Services 1

   30,000       43,654  

China Communications Services

   303,600       182,148  

China Lesso Group Holdings

   150,100       114,663  

Chinasoft International

   130,900       118,343  

Delong Holdings 1

   50,000       155,742  

Fufeng Group

   275,100       164,403  

Hopefluent Group Holdings

   92,300       44,461  

Hua Hong Semiconductor

   51,600       103,282  

TravelSky Technology

   300,000       878,921  

Xingda International Holdings

   360,400       122,640  

Xtep International Holdings

   295,800       164,716  
             
Total           2,092,973  
             
               
Cyprus – 0.0%              

TCS Group Holding GDR

   2,200       48,290  
             
Total           48,290  
             
               
Denmark – 1.2%              

Chr. Hansen Holding

   5,500       475,213  

Coloplast Cl. B

   4,000       339,010  

Columbus

   16,400       39,039  

DFDS

   4,000       224,717  

SimCorp

   7,500       522,737  
             
Total           1,600,716  
             
               
Egypt – 0.2%              

Commercial International Bank

   23,800       120,260  

Egyptian Financial Group-Hermes Holding
Company

   70,800       102,025  

Oriental Weavers

   82,300       74,177  
             
Total           296,462  
             
               
Finland – 0.0%              

Ferratum

   1,300       41,140  
             
Total           41,140  
             
               
France – 4.2%              

Albioma

   3,100       73,465  

Interparfums

   13,500       622,053  

Neurones

   25,500       841,084  

Rothschild & Co

   33,000       1,215,471  

Sartorius Stedim Biotech

   9,500       859,970  

Synergie

   1,200       75,526  

Thermador Groupe

   9,500       1,346,209  

Vetoquinol

   8,000       543,519  
             
Total           5,577,297  
             
               
Georgia – 0.1%              

BGEO Group

   3,400       169,885  
             
Total           169,885  
             
               
Germany – 2.6%              

Carl Zeiss Meditec

   17,500       1,117,491  

CompuGroup Medical

   8,000       433,323  

Deutsche EuroShop

   1,700       62,327  

FinTech Group 1

   1,800       61,040  

HolidayCheck Group 1

   19,150       64,318  

JDC Group 1

   4,000       43,460  

MorphoSys 1

   6,000       613,725  

PSI Software

   2,600       55,198  

STRATEC Biomedical

   9,000       813,861  

VIB Vermoegen

   7,300       197,042  
             
Total           3,461,785  
             
               
Greece – 0.1%              

JUMBO

   4,700       84,164  

Sarantis

   2,900       51,112  
             
Total           135,276  
             
               
Hong Kong – 1.4%              

China Resources Cement Holdings

   100,000       87,261  

Dah Sing Financial Holdings

   19,900       126,389  

HKBN

   150,000       177,196  

I.T

   378,400       176,558  

International Housewares Retail

   380,000       70,633  

Oriental Watch Holdings

   232,950       68,400  

Perfect Shape Beauty Technology

   600,000       86,418  

Pico Far East Holdings

   526,500       201,945  

Texhong Textile Group

   47,600       67,064  

Value Partners Group

   736,800       695,596  

Xinyi Glass Holdings

   51,900       79,195  
             
Total           1,836,655  
             
               
India – 1.9%              

AIA Engineering

   27,000       598,704  

Asian Granito India

   8,700       61,552  

Borosil Glass Works

   5,800       74,402  

Dewan Housing Finance

   27,500       221,334  

Edelweiss Financial Services

   10,200       37,929  

Jubilant Life Sciences

   2,600       33,442  

Manappuram Finance

   27,550       46,155  

Mphasis

   2,400       30,812  

Multi Commodity Exchange of India

   5,300       55,045  

Phillips Carbon Black

   3,800       63,818  

Radico Khaitan

   24,000       124,214  

Redington India

   30,000       67,819  

SH Kelkar & Company

   175,000       694,817  

Sterlite Technologies

   35,000       171,232  

Vakrangee

   72,000       249,552  
             
Total           2,530,827  
             
               
Indonesia – 0.5%              

Mitra Pinasthika Mustika

   1,000,000       59,234  

Selamat Sempurna

   5,500,000       537,527  
             
Total           596,761  
             
               
Ireland – 0.5%              

Irish Residential Properties REIT

   40,000       68,597  

Keywords Studios

   25,000       524,253  
             
Total           592,850  
             
               
Israel – 0.6%              

Frutarom Industries

   7,500       689,444  

Nova Measuring Instruments 1,2

   3,700       100,381  
             
Total           789,825  
             
               
Italy – 0.8%              

Anima Holding

   7,400       50,360  

Anima Holding (Rights) 1

   7,400       2,823  

DiaSorin

   8,500       765,958  

Openjobmetis 1

   15,900       224,835  
             
Total           1,043,976  
             
               
Japan – 7.8%              

Ai Holdings

   45,000       1,260,936  

As One

   15,000       972,010  

EPS Holdings

   2,500       51,178  

Financial Products Group

   8,700       113,439  

H.I.S.

   1,100       40,138  

IDOM

   7,700       54,579  

Investors Cloud

   4,400       97,517  

Itochu Techno-Solutions

   8,400       173,247  

Kyowa Exeo

   7,000       187,056  

Leopalace21

   11,500       94,087  

Mandom Corporation

   1,200       42,103  

Meitec Corporation

   25,750       1,414,203  

Nihon Kohden

   37,500       1,068,359  

Nitto Kohki

   2,900       80,465  

NS Solutions

   7,000       201,347  

NSD

   3,600       73,216  

Open House

   2,050       126,460  

Pressance

   6,150       92,673  

Relo Group

   40,000       1,121,540  

Santen Pharmaceutical

   30,000       504,278  

Sugi Holdings

   7,000       393,228  

Sun Frontier Fudousan

   13,000       143,698  

Tokai Corporation

   4,300       89,360  

Trancom

   1,400       97,185  

USS

   67,500       1,383,024  

Yumeshin Holdings

   6,950       78,165  

Zenkoku Hosho

   6,100       268,034  
             
Total           10,221,525  
             
               
Malaysia – 0.1%              

CB Industrial Product Holding

   301,200       119,659  
             
Total           119,659  
             
               
Mexico – 0.7%              

Becle 1

   200,000       408,253  

Bolsa Mexicana de Valores

   250,000       477,884  
             
Total           886,137  
             
               
Mongolia – 0.0%              

Mongolian Mining 1

   862,000       18,767  
             
Total           18,767  
             
               
Netherlands – 0.6%              

AMG Advanced Metallurgical Group

   3,300       147,605  

DP Eurasia 1

   24,400       68,602  

Intertrust

   27,000       559,718  
             
Total           775,925  
             
               
New Zealand – 1.5%              

Fisher & Paykel Healthcare

   102,875       988,122  

Trade Me Group

   300,000       962,261  
             
Total           1,950,383  
             
               
Norway – 2.0%              

Kongsberg Automotive 1

   130,000       148,986  

Leroy Seafood Group

   13,000       80,788  

Protector Forsikring

   8,950       96,945  

TGS-NOPEC Geophysical

   92,500       2,256,714  
             
Total           2,583,433  
             
               
Peru – 0.1%              

Ferreycorp

   93,200       73,495  
             
Total           73,495  
             
               
Philippines – 0.1%              

Pryce Corporation

   563,600       64,617  

Robinsons Retail Holdings

   69,200       118,817  
             
Total           183,434  
             
               
Poland – 0.3%              

Enter Air

   6,000       45,420  

Warsaw Stock Exchange

   33,000       398,622  
             
Total           444,042  
             
               
Russia – 0.4%              

Globaltrans Investment GDR

   45,500       539,543  
             
Total           539,543  
             
               
Singapore – 1.3%              

CSE Global

   591,850       181,948  

Duty Free International

   466,600       78,530  

Duty Free International (Warrants) 1

   80,440       736  

Midas Holdings 1,4

   400,000       43,931  

Sheng Siong Group

   141,800       100,778  

XP Power

   24,000       1,075,223  

Yanlord Land Group

   134,300       174,062  
             
Total           1,655,208  
             
               
South Africa – 0.6%              

Coronation Fund Managers

   59,000       402,326  

JSE

   15,000       235,643  

Nampak 1

   77,200       99,065  
             
Total           737,034  
             
               
South Korea – 0.6%              

Com2uSCorp

   600       106,000  

Eugene Technology

   4,400       78,121  

Hansol Chemical

   900       59,054  

Huchems Fine Chemical

   4,200       97,002  

Interojo Company

   2,800       106,998  

KIWOOM Securities

   700       70,760  

Koh Young Technology

   600       56,924  

Modetour Network

   3,000       110,310  

Samjin Pharmaceutical

   2,800       114,739  
             
Total           799,908  
             
               
Spain – 0.4%              

Atento 2

   59,400       463,320  
             
Total           463,320  
             
               
Sri Lanka – 0.2%              

National Development Bank

   212,352       183,656  

Sampath Bank

   27,000       52,026  

Sunshine Holdings

   158,150       58,811  
             
Total           294,493  
             
               
Sweden – 2.5%              

Addtech Cl. B

   18,960       381,926  

Bravida Holding

   120,000       858,962  

Byggmax Group

   12,200       60,788  

Dustin Group

   7,650       68,042  

Green Landscaping Holding 1

   40,000       98,685  

Hexpol

   100,000       927,626  

Knowit

   7,000       142,175  

Lagercrantz Group

   60,000       600,839  

Momentum Group 1

   6,300       75,857  

Proact IT Group

   4,800       83,902  
             
Total           3,298,802  
             
               
Switzerland – 3.8%              

Burkhalter Holding

   10,000       1,172,666  

Forbo Holding

   110       154,290  

LEM Holding

   500       832,812  

Partners Group Holding

   1,800       1,339,623  

VZ Holding

   5,600       1,518,519  
             
Total           5,017,910  
             
               
Taiwan – 0.8%              

Flytech Technology

   16,390       45,402  

Formosa Laboratories

   29,050       63,291  

Gourmet Master

   11,030       144,774  

Sinmag Equipment

   25,000       140,656  

Sitronix Technology

   67,600       203,000  

Sporton International

   41,381       230,320  

Taiwan Paiho

   32,050       90,073  

TCI

   6,185       88,021  

Tehmag Foods

   6,000       47,382  
             
Total           1,052,919  
             
               
Thailand – 0.1%              

Beauty Community

   57,200       39,137  

Erawan Group (The)

   130,000       32,517  

Plan B Media

   300,000       56,357  
             
Total           128,011  
             
               
Turkey – 0.2%              

Soda Sanayii

   82,200       114,243  

Tat Gida Sanayi

   72,350       104,629  
             
Total           218,872  
             
               
Ukraine – 0.3%              

MHP GDR

   30,000       409,648  
             
Total           409,648  
             
               
United Arab Emirates – 0.1%              

ADES International Holding 1

   8,100       122,966  
             
Total           122,966  
             
               
United Kingdom – 11.3%              

Abcam

   25,000       435,058  

Arrow Global Group

   8,200       40,290  

Ashmore Group

   279,000       1,492,226  

Berkeley Energia 1

   61,600       40,131  

Biffa

   61,400       172,488  

Character Group

   3,600       24,117  

Clarkson

   40,600       1,721,524  

Connect Group

   88,150       69,208  

Consort Medical

   57,500       903,560  

Conviviality 1,4

   61,200       8,586  

Diploma

   25,000       400,440  

dotdigital group

   142,200       168,727  

Elementis

   200,000       829,998  

Equiniti Group

   255,000       1,070,230  

Ferroglobe 1

   41,100       441,003  

Ferroglobe (Warranty Insurance Trust) 1,4

   41,100       0  

Go-Ahead Group

   4,200       103,429  

Hilton Food Group

   16,100       187,535  

Huntsworth

   113,900       151,812  

Interserve 1

   100,000       113,215  

ITE Group

   380,341       833,933  

Jupiter Fund Management

   36,000       238,480  

Macfarlane Group

   45,500       51,083  

Pendragon

   139,300       45,358  

Polypipe Group

   60,000       293,055  

Rank Group

   20,000       57,974  

Real Estate Investors

   90,000       70,105  

Restore

   13,600       103,684  

River and Mercantile Group

   22,400       103,096  

Rotork

   195,000       778,101  

RPC Group

   23,000       250,245  

Severfield

   70,000       72,122  

SIG

   100,000       189,991  

Spirax-Sarco Engineering

   19,000       1,535,909  

Staffline Group

   11,000       144,487  

Stallergenes Greer 1

   10,800       383,194  

STV Group

   16,100       72,996  

Victrex

   22,500       811,529  

WANdisco 1

   8,000       94,404  

Xaar

   90,000       424,033  
             
Total           14,927,356  
             
               
United States – 27.8%              

Air Lease Cl. A

   36,460       1,553,925  

Brooks Automation 2

   18,100       490,148  

Century Casinos 1

   5,000       37,300  

CIRCOR International 1

   23,500       1,002,510  

Cognex Corporation

   10,748       558,789  

Coherent 1

   3,000       562,200  

Copart 1

   19,800       1,008,414  

Diebold Nixdorf 2

   28,800       443,520  

Diodes 1

   20,500       624,430  

Dorian LPG 1

   4,475       33,518  

EnerSys 2,3

   11,000       763,070  

Expeditors International of Washington 2

   13,300       841,890  

FLIR Systems 2

   51,500       2,575,515  

Innospec 2,3

   12,457       854,550  

Kadant

   7,800       737,100  

KBR 2

   58,700       950,353  

Kirby Corporation 1,2,3

   32,900       2,531,655  

Lazard Cl. A

   32,600       1,713,456  

Lindsay Corporation

   13,700       1,252,728  

Littelfuse

   4,000       832,720  

ManpowerGroup

   8,800       1,012,880  

MBIA 1,2,3

   80,300       743,578  

Nanometrics 1,2

   35,600       957,640  

National Instruments 2,3

   15,200       768,664  

Oaktree Capital Group LLC Cl. A

   10,400       411,840  

Popular

   13,100       545,222  

Quaker Chemical 2

   6,069       899,001  

Raven Industries

   40,000       1,402,000  

Rogers Corporation 1,2,3

   4,800       573,792  

SEACOR Holdings 1

   20,200       1,032,220  

SEACOR Marine Holdings 1

   20,309       386,277  

SEI Investments 2,3

   34,500       2,584,395  

Signet Jewelers

   5,500       211,860  

Standard Motor Products

   11,200       532,784  

Sun Hydraulics 2

   15,139       810,845  

Tennant Company 2

   11,600       785,320  

Valmont Industries

   5,400       790,020  

Virtu Financial Cl. A 2

   74,300       2,451,900  

World Fuel Services

   12,000       294,600  
             
Total           36,562,629  
             
               
Uruguay – 0.4%              

Arcos Dorados Holdings Cl. A

   46,800       428,220  

Biotoscana Investments BDR 1

   10,900       51,835  
             
Total           480,055  
             
               
TOTAL COMMON STOCKS              

(Cost $102,098,427)

           126,757,912  
             
               
REPURCHASE AGREEMENT – 9.3%              
Fixed Income Clearing Corporation,              

0.28% dated 3/29/18, due 4/2/18,

              

maturity value $12,291,382 (collateralized

              

by obligations of various U.S. Government

              

Agencies, 0.125% due 7/15/22, valued at $12,538,984)

              

(Cost $12,291,000)

           12,291,000  
             
               
TOTAL INVESTMENTS – 105.7%              

(Cost $114,389,427)

           139,048,912  
               
LIABILITIES LESS CASH              

AND OTHER ASSETS – (5.7)%

           (7,513,525 )
             
               
NET ASSETS – 100.0%         $ 131,535,387  
             

1
Non-income producing.
2
All or a portion of these securities were pledged as collateral in connection with the Fund’s revolving credit agreement at March 31, 2018. Total market value of pledged securities at March 31, 2018, was $14,715,613.
3
At March 31, 2018, a portion of these securities were rehypothecated in connection with the Fund’s revolving credit agreement in the aggregate amount of $5,738,698.
4
Securities for which market quotations are not readily available represent 0.0% of net assets. These securities have been valued at their fair value under procedures approved by the Fund’s Board of Directors. These securities are defined as Level 3 securities due to the use of significant unobservable inputs in the determination of fair value.

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

TAX INFORMATION: The cost of total investments for Federal income tax purposes was $114,461,942. At March 31, 2018, net unrealized appreciation for all securities was $24,586,970, consisting of aggregate gross unrealized appreciation of $30,316,765 and aggregate gross unrealized depreciation of $5,729,795. The primary cause of the difference between book and tax basis cost is the timing of the recognition of losses on securities sold.

Valuation of Investments:
Investment transactions are accounted for on the trade date. 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 March 31, 2018. 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   $53,724,329     $72,981,066       $52,517     $126,757,912  
Cash Equivalents   –     12,291,000       –     12,291,000  

Certain securities have transferred in and out of Level 1, Level 2 and Level 3 measurements during the reporting period. The Fund recognizes transfers between levels as of the end of the reporting period. For the three months ended March 31, 2018, securities valued at $959,632 were transferred from Level 1 to Level 2, and securities valued at $2,683,567 and $8,586 were transferred from Level 2 to Level 1 and from Level 2 to Level 3, respectively within the fair value hierarchy.

Level 3 Reconciliation:

    Balance as of               Realized   Unrealized     Balance as of
    12/31/17   Purchases   Sales   Transfers In   Gain (Loss)   Gain (Loss)     3/31/18
 
Common Stocks   $0   $126,098   $84,433   $8,586   $8,774   $(6,508)     $52,517

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 March 31, 2018 is overnight and continuous.

Borrowings:
The Fund is party to a revolving credit agreement (the credit agreement) with BNP Paribas Prime Brokerage International, Limited (BNPPI). As of March 31, 2018, the Fund has outstanding borrowings of $8,000,000. During the period ended March 31, 2018, the Fund borrowed an average daily balance of $8,000,000. 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 or as otherwise required by applicable regulatory standards and has granted a security interest in the securities pledged to, and in favor of, BNPPI 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 which may necessitate the sale of portfolio securities at potentially inopportune times. BNPPI may terminate the credit agreement upon certain ratings downgrades of its corporate parent, which would result in the Fund’s entire loan balance becoming immediately due and payable. The occurrence of such ratings downgrades may necessitate the sale of portfolio securities at potentially inopportune times. The credit agreement also permits, subject to certain conditions, BNPPI 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 BNPPI on demand. If BNPPI fails to deliver the recalled security in a timely manner, the Fund is compensated by BNPPI for any fees or losses related to the failed delivery or, in the event a recalled security is not returned by BNPPI, the Fund, upon notice to BNPPI, may reduce the loan balance outstanding by the value of the recalled security failed to be returned. The Fund receives a portion of the fees earned by BNPPI in connection with the rehypothecation of portfolio securities.

Other information regarding the Fund is available in the Fund’s most recent Report to Stockholders. This information is available through The Royce Funds (www.roycefunds.com) and on the Securities and Exchange Commission’s website (www.sec.gov).

 
 

Item 2 - Controls and Procedures

(a) The Registrant’s principal executive and principal financial officers have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report (as required by Rule 30a-3(b) under the Investment Company Act of 1940 (the “Act”)), that the Registrant’s disclosure controls and procedures (as defined by Rule 30a-3(c) under the Act) are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-Q is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-Q is accumulated and communicated to the Registrant’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

 

(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) during the Registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the internal control over financial reporting.

 

Item 3 - Exhibits

Certifications pursuant to Rule 30a-2(a) under the Act are attached hereto.

 

SIGNATURES

 

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 Global Value Trust, Inc.

By:

 

 

/s/ Christopher D. Clark

Christopher D. Clark

President, Royce Global Value Trust, Inc.

Date: May 29, 2018

 

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.

 

By:

 

/s/ Christopher D. Clark

Christopher D. Clark

President, Royce Global Value Trust, Inc.

Date: May 29, 2018

 

By:

 

/s/ Peter K. Hoglund

Peter K. Hoglund

Treasurer, Royce Global Value Trust, Inc.

Date: May 29, 2018