UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANYInvestment Company Act File Number: 811-05379
Name of Fund: Royce Focus Trust, Inc.
Fund Address: 745 Fifth Avenue
New York, NY 10151Name and address of agent for service:
John E. Denneen, Esq.
Royce & Associates, LLC
745 Fifth Avenue
New York, NY 10151Registrant’s telephone number, including area code: (212) 508-4500
Date of fiscal year end: 12/31/2014
Date of reporting period: 9/30/2014
Item 1 - Schedule of Investments
SCHEDULE OF INVESTMENTS
SHARES VALUE COMMON STOCKS – 96.6% Consumer Discretionary – 8.4% Automobiles - 2.7%
ROYCE FOCUS TRUST
SEPTEMBER 30, 2014 (UNAUDITED)Thor Industries
105,000 $ 5,407,500
Household Durables - 1.1%Garmin
40,000 2,079,600
Specialty Retail - 4.6%Buckle (The)
100,000 4,539,000GameStop Corporation Cl. A
110,000 4,532,000
9,071,000
Total 16,558,100
Consumer Staples – 6.6% Food Products - 4.8%Cal-Maine Foods
30,000 2,679,900Industrias Bachoco ADR
75,000 4,480,500Sanderson Farms
25,000 2,198,750
9,359,150
Personal Products - 1.8%Nu Skin Enterprises Cl. A
80,000 3,602,400
Total 12,961,550
Energy – 13.0% Energy Equipment & Services - 10.1%Helmerich & Payne
35,000 3,425,450Pason Systems
150,000 4,193,491TGS-NOPEC Geophysical
220,000 5,598,662Trican Well Service
320,000 3,743,024Unit Corporation 1
50,000 2,932,500
19,893,127
Oil, Gas & Consumable Fuels - 2.9%Exxon Mobil
60,000 5,643,000
Total 25,536,127
Financials – 16.4% Capital Markets - 11.3%Ashmore Group
1,000,000 4,993,142Federated Investors Cl. B
95,000 2,789,200Franklin Resources
130,000 7,099,300Sprott
1,750,000 4,437,698Value Partners Group
4,000,000 2,931,158
22,250,498
Diversified Financial Services - 2.1%Berkshire Hathaway Cl. B 1
30,000 4,144,200
Real Estate Management & Development - 3.0%Kennedy-Wilson Holdings
240,000 5,750,400
Total 32,145,098
Health Care – 5.8% Biotechnology - 4.7%Myriad Genetics 1
240,000 9,256,800
Pharmaceuticals - 1.1%Medicines Company (The) 1
100,000 2,232,000
Total 11,488,800
Industrials – 8.6% Construction & Engineering - 1.2%Jacobs Engineering Group 1
50,000 2,441,000
Machinery - 4.6%AGCO Corporation
60,000 2,727,600Lincoln Electric Holdings
25,000 1,728,375Semperit AG Holding
100,000 4,610,134
9,066,109
Marine - 1.2%Clarkson
60,000 2,285,822
Road & Rail - 1.6%Patriot Transportation Holding 1
90,000 3,052,800
Total 16,845,731
Information Technology – 19.1% Semiconductors & Semiconductor Equipment - 5.0%Cirrus Logic 1
250,000 5,212,500MKS Instruments
140,000 4,673,200
9,885,700
Software - 2.4%Microsoft Corporation
100,000 4,636,000
Technology Hardware, Storage & Peripherals - 11.7%Apple
84,000 8,463,000SanDisk Corporation
60,000 5,877,000Western Digital
90,000 8,758,800
23,098,800
Total 37,620,500
Materials – 18.7% Chemicals - 4.0%Mosaic Company (The)
90,000 3,996,900Westlake Chemical
45,000 3,896,550
7,893,450
Metals & Mining - 13.7%Alamos Gold
160,000 1,275,771Franco-Nevada Corporation
50,000 2,444,000Fresnillo
180,000 2,217,733Globe Specialty Metals
220,000 4,001,800Hochschild Mining 1
600,000 1,316,050Major Drilling Group International
250,000 1,473,280Pan American Silver
200,000 2,196,000Pretium Resources 1
100,000 522,345Randgold Resources ADR
45,000 3,041,550Reliance Steel & Aluminum
60,000 4,104,000Schnitzer Steel Industries Cl. A
65,000 1,563,250Seabridge Gold 1
350,000 2,814,000
26,969,779
Paper & Forest Products - 1.0%Stella-Jones
75,000 1,964,820
Total 36,828,049
TOTAL COMMON STOCKS(Cost $151,032,622)
189,983,955
REPURCHASE AGREEMENT – 3.5% Fixed Income Clearing Corporation,0.00% dated 9/30/14, due 10/1/14,
maturity value $6,831,000 (collateralized
by obligations of various U.S. Government
Agencies, 1.25% due 11/30/18, valued at $6,970,688)
(Cost $6,831,000)
6,831,000
TOTAL INVESTMENTS – 100.1%(Cost $157,863,622)
196,814,955 LIABILITIES LESS CASHAND OTHER ASSETS – (0.1)%
(106,006 )
NET ASSETS – 100.0% $ 196,708,949
1 Non-income producing.
TAX INFORMATION: The cost of total investments for Federal income tax purposes was $157,863,622. At September 30, 2014, net unrealized appreciation for all securities was $38,951,333, consisting of aggregate gross unrealized appreciation of $52,272,467 and aggregate gross unrealized depreciation of $13,321,134.
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, 2014. For a detailed breakout of common stocks by sector classification, please refer to the Schedule of Investments.
Level 1 Level 2 Level 3 Total Common Stocks $ 189,983,955 $ – $ – $ 189,983,955 Cash Equivalents – 6,831,000 – 6,831,000Repurchase 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.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 Focus Trust, Inc.
/s/ Charles M. Royce Charles M. Royce President, Royce Focus Trust, Inc. Date: November 24, 2014
By: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/ Charles M. Royce Charles M. Royce President, Royce Focus Trust, Inc. Date: November 24, 2014By:
/s/ John D. Diederich John D. Diederich Treasurer, Royce Focus Trust, Inc. Date: November 24, 2014