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: 9/30/2018

 

Item 1 - Schedule of Investments

 

 

SCHEDULE OF INVESTMENTS

ROYCE GLOBAL VALUE TRUST

SEPTEMBER 30, 2018 (UNAUDITED)

			SHARES			VALUE
COMMON STOCKS – 98.0%
Australia – 6.1%
ALS			140,000		$	904,719
Bingo Industries			78,300			177,721
Bravura Solutions			475,000			1,514,190
Cochlear			5,500			797,679
EML Payments 1			229,500			263,772
Hansen Technologies			360,000			970,643
IPH			365,000			1,588,318
Kogan.com			20,200			82,645
Steadfast Group			261,300			538,310
Technology One			285,000			1,149,548
Total						7,987,545
Austria – 0.7%
Mayr-Melnhof Karton			7,500			942,192
Total						942,192
Belgium – 0.8%
Barco			2,100			281,369
Radisson Hospitality 1			180,000			738,236
Total						1,019,605
Brazil – 2.1%
B3-Brasil, Bolsa, Balcao			32,847			190,321
Construtora Tenda 1			23,400			153,545
CVC Brasil Operadora e Agencia de Viagens			17,400			186,600
OdontoPrev			300,000			951,579
T4F Entretenimento			38,000			67,465
Tegma Gestao Logistica			30,000			124,203
TOTVS			183,000			1,137,364
Total						2,811,077
Canada – 8.7%
Agnico Eagle Mines 2			10,000			342,000
Altus Group			38,000			900,538
ATS Automation Tooling Systems 1			9,700			180,385
Canaccord Genuity Group			92,000			491,464
Canadian Western Bank			10,600			279,844
Computer Modelling Group			248,000			1,622,421
E-L Financial			1,200			757,403
FirstService Corporation			10,300			871,998
Franco-Nevada Corporation 2			12,800			800,640
Genworth MI Canada			13,000			428,653
Gluskin Sheff + Associates			23,000			265,676
Hudbay Minerals			17,500			88,375
Major Drilling Group International 1			160,500			602,659
Morneau Shepell			50,000			1,047,884
Pan American Silver 2			31,800			469,368
Parex Resources 1			21,100			358,569
Solium Capital 1			50,000			437,812
Sprott			520,600			1,213,182
Western Forest Products			167,650			273,868
Total						11,432,739
Chile – 0.1%
SMU 1			632,700			191,397
Total						191,397
China – 0.9%
Hua Hong Semiconductor			104,500			225,063
Silergy Corporation			6,100			109,881
TravelSky Technology			300,000			779,858
Total						1,114,802
Denmark – 0.8%
DFDS			10,700			529,761
Nilfisk Holding 1			9,000			458,905
Total						988,666
Egypt – 0.2%
Commercial International Bank (Egypt)			25,600			120,000
ElSewedy Electric			189,000			188,789
Total						308,789
France – 4.1%
Interparfums			14,850			759,493
Neurones			30,039			791,703
Rothschild & Co			33,000			1,398,485
Sartorius Stedim Biotech			9,000			1,238,260
Thermador Groupe			19,000			1,200,062
Total						5,388,003
Germany – 3.1%
Amadeus Fire			8,000			906,548
Carl Zeiss Meditec			13,500			1,136,378
CompuGroup Medical			10,000			577,739
MorphoSys 1			6,000			641,596
PATRIZIA Immobilien			21,400			410,961
STRATEC Biomedical			5,051			379,431
Total						4,052,653
Greece – 0.3%
Sarantis			39,800			342,877
Total						342,877
Hong Kong – 1.0%
HKBN			136,400			233,828
Value Partners Group			1,310,000			1,042,531
Total						1,276,359
India – 1.7%
AIA Engineering			45,000			1,078,908
Edelweiss Financial Services			55,500			147,382
Jubilant Life Sciences			16,300			166,395
SH Kelkar & Company			200,000			567,527
Sterlite Technologies			79,500			318,921
Total						2,279,133
Indonesia – 0.6%
Link Net			249,100			70,209
Mitra Pinasthika Mustika			3,840,400			239,679
Selamat Sempurna			5,500,000			518,572
Total						828,460
Ireland – 0.7%
Irish Residential Properties REIT			166,100			285,033
Keywords Studios			25,000			635,408
Total						920,441
Israel – 0.2%
Nova Measuring Instruments 1, 2			7,900			207,849
Total						207,849
Italy – 1.0%
Cerved Group			49,800			536,861
DiaSorin			7,500			788,934
Total						1,325,795
Japan – 9.3%
Ai Holdings			20,000			463,299
Ain Holdings			4,600			371,255
As One			15,000			1,120,841
Benefit One			3,000			97,958
Cosel			25,000			285,381
Daifuku			5,000			254,797
en-japan			3,900			195,652
EPS Holdings			40,000			852,667
Financial Products Group			34,000			325,577
Fujitec			50,000			670,217
Information Services International-Dentsu			4,900			182,208
Kyowa Exeo			6,000			175,585
Meitec Corporation			25,000			1,203,573
Nihon M&A Center			8,100			243,100
Nishimoto			4,500			209,118
NSD			52,300			1,161,353
Open House			7,850			386,904
Outsourcing			22,300			327,179
Relo Group			40,000			1,175,849
TKC Corporation			23,000			962,551
USS			67,500			1,252,926
Yumeshin Holdings			35,350			353,749
Total						12,271,739
Malaysia – 0.2%
AEON Credit Service			58,400			227,193
Total						227,193
Mexico – 0.6%
Becle			200,000			322,860
Bolsa Mexicana de Valores			250,000			511,515
Total						834,375
Netherlands – 1.0%
AMG Advanced Metallurgical Group			2,700			125,205
Euronext			4,900			322,290
Intertrust			50,000			925,938
Total						1,373,433
New Zealand – 1.3%
Fisher & Paykel Healthcare			70,000			698,313
Trade Me Group			300,000			1,038,023
Total						1,736,336
Norway – 2.0%
Atea			24,800			402,224
TGS-NOPEC Geophysical			55,000			2,241,560
Total						2,643,784
Philippines – 0.0%
Pryce Corporation			221,100			23,530
Total						23,530
Poland – 0.3%
Warsaw Stock Exchange			33,000			397,865
Total						397,865
Portugal – 0.5%
Sonae SGPS			599,400			621,121
Total						621,121
Russia – 0.3%
Globaltrans Investment GDR			42,000			441,000
Total						441,000
Singapore – 0.7%
Midas Holdings 1, 3			400,000			42,134
XP Power			24,000			925,936
Total						968,070
South Africa – 0.8%
Coronation Fund Managers			59,000			224,840
JSE			15,000			168,857
PSG Group			25,000			404,844
Transaction Capital			223,300			279,337
Total						1,077,878
South Korea – 0.2%
Hansol Chemical			2,400			172,874
Koh Young Technology			1,200			117,917
Total						290,791
Sweden – 2.6%
Addtech Cl. B			18,960			404,485
Bravida Holding			120,000			984,315
Hexpol			110,000			1,212,953
Lagercrantz Group			60,000			594,099
Resurs Holding			24,100			180,464
Total						3,376,316
Switzerland – 4.3%
Burkhalter Holding			10,000			789,688
Inficon Holding			1,000			511,005
Kardex			4,300			729,957
LEM Holding			500			588,955
Partners Group Holding			1,800			1,427,858
VZ Holding			5,600			1,666,191
Total						5,713,654
Taiwan – 0.5%
Chailease Holding Company			107,366			376,254
Chroma ATE			41,800			200,560
TCI			6,208			99,831
Total						676,645
Thailand – 0.2%
Muangthai Capital			166,800			248,859
Total						248,859
Ukraine – 0.3%
MHP GDR			30,000			372,000
Total						372,000
United Kingdom – 9.7%
Abcam			28,000			522,611
Ashmore Group			431,500			2,047,199
Biffa			66,400			218,095
Clarkson			40,600			1,428,787
Consort Medical			57,500			891,852
Diploma			35,000			645,965
dotdigital group			117,499			153,914
Elementis			200,000			700,187
Ferroglobe 2			41,100			335,787
Ferroglobe (Warranty Insurance Trust) 1, 3			41,100			0
FLEX LNG 1			107,100			194,757
Hilton Food Group			9,600			120,622
ITE Group			750,000			703,836
Jupiter Fund Management			36,000			190,177
Kainos Group			32,100			175,306
Polypipe Group			95,000			441,058
RPC Group			31,900			330,549
Spirax-Sarco Engineering			19,000			1,807,816
Staffline Group			10,300			166,739
Stallergenes Greer 1			10,800			385,585
Subsea 7			12,800			189,356
Victrex			22,500			979,505
Warpaint London			45,400			158,291
Total						12,787,994
United States – 29.9%
Air Lease Cl. A 2			36,460			1,672,785
Brooks Automation 2			18,100			634,043
Camping World Holdings Cl. A 2, 4			38,500			820,820
CIRCOR International 1, 2			32,200			1,529,500
Cognex Corporation 2			10,748			599,953
Coherent 1, 2			3,000			516,570
comScore 1			24,000			437,520
Diodes 1, 2			20,500			682,445
Dorian LPG 1			4,475			35,666
EnerSys 2			11,000			958,430
Expeditors International of Washington 2			13,300			977,949
FLIR Systems 2			51,500			3,165,705
Innospec 2, 4			12,457			956,075
Kadant 2			7,800			841,230
KBR 2			58,700			1,240,331
Kirby Corporation 1, 2, 4			32,900			2,706,025
KKR & Co. Cl. A 2			50,000			1,363,500
Lazard Cl. A			32,600			1,569,038
Lindsay Corporation 2			13,700			1,373,288
Littelfuse			4,000			791,560
ManpowerGroup 2			8,800			756,448
MBIA 1, 2, 4			80,300			858,407
Nanometrics 1, 2, 2			35,600			1,335,712
National Instruments 2			15,200			734,616
Popular 2			13,100			671,375
Quaker Chemical 2, 4			6,069			1,227,212
Raven Industries			40,000			1,830,000
Rogers Corporation 1, 2, 4			4,800			707,136
SEACOR Holdings 1, 2			20,200			998,082
SEACOR Marine Holdings 1			20,309			459,593
SEI Investments 2			27,600			1,686,360
Signet Jewelers			5,500			362,615
Standard Motor Products			11,200			551,264
Sun Hydraulics 2			15,139			829,314
Tennant Company 2			11,600			881,020
Valmont Industries 2			5,400			747,900
Virtu Financial Cl. A 2			74,300			1,519,435
World Fuel Services 2			12,000			332,160
Total						39,361,082
Uruguay – 0.2%
Arcos Dorados Holdings Cl. A 2			46,800			292,500
Total						292,500
TOTAL COMMON STOCKS
(Cost $105,194,607)						129,154,547
REPURCHASE AGREEMENT – 7.8%
Fixed Income Clearing Corporation,
0.42% dated 9/28/18, due 10/1/18,
maturity value $10,234,358 (collateralized
by obligations of various U.S. Government
Agencies, 3.75% due 11/15/43, valued at $10,439,771)
(Cost $10,234,000)						10,234,000
TOTAL INVESTMENTS – 105.8%
(Cost $115,428,607)						139,388,547
LIABILITIES LESS CASH
AND OTHER ASSETS – (5.8)%						(7,648,375	)
NET ASSETS – 100.0%					$	131,740,172

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 September 30, 2018. Total market value of pledged securities at September 30, 2018, was $18,084,315.
3	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.
4	At September 30, 2018, a portion of these securities were rehypothecated in connection with the Fund’s revolving credit agreement in the aggregate amount of $6,742,204.

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 $115,540,923. At September 30, 2018, net unrealized appreciation for all securities was $23,847,624, consisting of aggregate gross unrealized appreciation of $29,916,215 and aggregate gross unrealized depreciation of $6,068,591. 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 September 30, 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		$129,112,413		$              –		$42,134		$129,154,547
Cash Equivalents		–		10,234,000		–		10,234,000

Certain securities have transferred in and out of Level 1 and Level 2 measurements during the reporting period. The Fund recognizes transfers between levels as of the end of the reporting period. For the nine months ended September 30, 2018, securities valued at $55,954,286 were transferred from Level 2 to Level 1 within the fair value hierarchy.

Level 3 Reconciliation:

Balance as of

Realized

Unrealized

12/31/17

Purchases

Sales

Gain (Loss)

Gain (Loss)

Balance as of 9/30/18

Common Stocks

$0

$126,098

$84,433

$8,774

$(8,305)

$42,134

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 September 30, 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 September 30, 2018, the Fund has outstanding borrowings of $8,000,000. During the period ended September 30, 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: November 26, 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: November 26, 2018

 

By:

 

/s/ Peter K. Hoglund

Peter K. Hoglund

Treasurer, Royce Global Value Trust, Inc.

Date: November 26, 2018