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Previous: PICK COMMUNICATIONS CORP, S-8 POS, 1997-08-22 |
Next: HARVARD SCIENTIFIC CORP, 10QSB, 1997-08-22 |
SCHEDULES OF INVESTMENTS
June 30, 1997 (Unaudited)
ROYCE CAPITAL FUND-MICRO-CAP PORTFOLIO
<TABLE>
COMMON STOCKS-67.0%
Shares Value Shares Value
------ ----- ------ -----
<S> <C> <C> <C> <C> <C>
CONSUMER PRODUCTS-21.6% INDUSTRIAL SERVICES-21.9%
Bassett Furniture Industries 400 $ 11,325 Frozen Food Express Industries 2,000 $ 17,250
ErgoBilt 2,500 16,250 Insituform Technologies, Cl. A* 1,700 10,412
Jean-Phillippe Fragrances* 1,800 11,250 Rush Enterprises* 500 3,125
Johnson Worldwide Associates, Cl. A* 700 9,013 Sevenson Enviromental Services 800 15,600
The Topps Company* 2,000 8,375 Standard Commercial* 606 10,529
----- ------
56,213 56,916
------ ------
RETAIL-1.9%
FINANCIAL INTERMEDIARIES-2.3% Lillian Vernon 300 5,062
Nobel Insurance 400 5,950 -----
-----
FINANCIAL SERVICES-2.3% TECHNOLOGY-6.3%
Old Guard Group 400 6,025 DH Technology* 500 8,125
----- Richardson Electronics 1,000 8,313
-----
16,438
------
INDUSTRIAL PRODUCTS-10.7%
American Buildings Company* 200 5,400
Falcon Products 400 5,375 Total Common Stocks (Cost $ 163,611) 174,492
Puerto Rican Cement Company 200 6,513 -------
Simpson Manufacturing Co.* 400 10,600 TOTAL INVESTMENTS-67.0%
------ (COST $ 163,611) 174,492
27,888 CASH AND OTHER ASSETS
------ LESS LIABILITIES-33.0% 85,803
------
NET ASSETS- 100.0% $ 260,295
-------
-------
</TABLE>
* Non-income producing.
Income Tax Information-The cost of total investments for federal income tax
purposes was $ 163,611.
At June 30, 1997, net unrealized appreciation for all securities amounted to
$10,881, consisting of aggregate gross unrealized appreciation of $13,717 and
aggregate gross unrealized depreciation of $2,836.
ROYCE CAPITAL FUND-PREMIER PORTFOLIO
COMMON STOCKS- 70.6%
<TABLE>
Shares Value Shares Value
------ ----- ------ -----
<S> <C> <C> <C> <C> <C>
CONSUMER PRODUCTS-4.1% INDUSTRIAL SERVICES-5.5%
Gibson Greetings* 200 $ 4,500 Arnold Industries 600 $ 10,200
Oakley* 500 7,031 New England Business Service 200 5,263
----- -----
11,531 15,463
------ ------
CONSUMER SERVICES-4.5% NATURAL RESOURCES-9.0%
Buffets* 1,500 12,656 Tom Brown* 500 10,625
------ CalMat 300 6,450
FINANCIAL INTERMEDIARIES-12.4% Florida Rock Industries 200 8,125
The Commerce Group 100 2,463 -----
Leucadia National Corporation 300 9,281 25,200
Pennsylvania Manufacturers 400 6,200 ------
Trenwick Group 300 11,250 RETAIL-10.7%
Zenith National Insurance 200 5,400 Charming Shoppes* 1,600 8,350
----- Sotheby's Holdings, Cl. A 500 8,437
34,594 Stanhome 400 13,150
------ ------
29,937
------
FINANCIAL SERVICES-10.5%
Arthur J. Gallagher & Co. 300 11,325 TECHNOLOGY- 6.5%
The Pioneer Group, Inc. 300 6,900 Marshall Industries* 200 7,450
Willis Corroon Group plc+ 1,000 11,188 National Computer Systems 400 10,650
------ ------
29,413 18,100
------ ------
HEALTH- 1.4% Total Common Stocks (Cost $ 176,536) 197,344
Haemonetics Corporation* 200 3,825 -------
-----
TOTAL INVESTMENTS-70.6%
INDUSTRIAL PRODUCTS-6.0% (Cost $ 176,536) 197,344
Curtiss-Wright Corporation 100 5,825 CASH AND OTHER ASSETS -------
Woodward Governor Company 300 10,800 LESS LIABILITIES-29.4% 82,374
------ ------
16,625
------
NET ASSETS- 100.0% $ 279,718
-------
-------
</TABLE>
* Non-income producing.
+American Depository Receipt.
Income Tax Information-The cost of total investments for federal income tax
purposes was $ 176,536.
At June 30, 1997, net unrealized appreciation for all securities amounted to
$20,808, consisting of aggregate gross unrealized appreciation of $22,667 and
aggregate gross unrealized depreciation of $1,859.
The accompanying notes are an integral part of the financial statements.
ROYCE CAPITAL FUND
STATEMENT OF ASSETS AND LIABILITIES AT JUNE 30, 1997 (UNAUDITED)
<TABLE>
Micro-Cap Premier
Portfolio Portfolio
--------- ---------
<S> <C> <C>
ASSETS:
Investments at value (identified cost $163,611 and $176,536, respectively) $174,492 $197,344
Cash 78,479 80,826
Receivable for dividends - 426
Prepaid expenses and other assets 9,390 9,391
----- -----
TOTAL ASSETS 262,361 287,987
------- -------
LIABILITIES:
Payable for investments purchased - 6,202
Accrued expenses 2,066 2,067
----- -----
TOTAL LIABILITIES 2,066 8,269
----- -----
NET ASSETS $260,295 $279,718
------- -------
------- -------
ANALYSIS OF NET ASSETS:
Undistributed net investment (loss) $ (1,953) $ (1,377)
Accumulated net realized gain on investments 1,435 10,355
Net unrealized appreciation on investments 10,881 20,808
Capital shares 50 50
Additional paid-in capital 249,882 249,882
------- -------
NET ASSETS $260,295 $279,718
------- -------
------- -------
SHARES OUTSTANDING:
(unlimited number of $.001 par value shares authorized for each Fund) 50,000 50,000
------ ------
------ ------
NET ASSET VALUE:
(offering and redemption price per share) $5.21 $5.59
---- ----
---- ----
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
Micro-Cap Portfolio Premier Portfolio
------------------- -----------------
Six Months ended Period ended Six Months ended Period ended
June 30, 1997 December 31, June 30, 1997 December 31,
(unaudited) 1996 (unaudited) 1996
---------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C>
INVESTMENT OPERATIONS:
Net investment (loss) ($1,953) ($68) ($1,377) ($68)
Net realized gain on investments 1,435 0 10,355 0
Net change in unrealized appreciation on investments 10,351 530 18,321 2,487
------ --- ------ -----
Net increase in net assets from investment operations 9,833 462 27,299 2,419
CAPITAL SHARE TRANSACTIONS:
Net increase in net assets from capital share transactions 0 250,000 0 250,000
- ------- - -------
NET INCREASE IN NET ASSETS 9,833 250,462 27,299 252,419
NET ASSETS:
Beginning of period 250,462 0 252,419 0
------- - ------- -
End of period $260,295(1) $250,462(1) $279,718(2) $252,419(2)
------- ------- ------- -------
------- ------- ------- -------
CAPITAL SHARE TRANSACTIONS:
Net increase in shares outstanding 0 50,000 0 50,000
- ------ - ------
</TABLE>
(1) Includes undistributed net investment income; $(1,953) at June 30, 1997.
The Fund commenced operations on December 27, 1996.
(2) Includes undistributed net investment income; $(1,377) at June 30, 1997.
The Fund commenced operations on December 27, 1996.
The accompanying notes are an integral part of the financial statements.
ROYCE CAPITAL FUND
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
<TABLE>
Micro-Cap Premier
Portfolio Portfolio
--------- ---------
<S> <C> <C>
INVESTMENT INCOME:
Income:
Dividends $522 $1,202
--- -----
Total Income 522 1,202
--- -----
Expenses:
Investment advisory fees 1,865 1,296
Custodian and transfer agent fees 6,071 6,055
Administrative and office facilities expenses 85 86
Professional fees 987 987
Trustees' fees 8 8
Organizational expenses 1,058 1,059
Other expenses 530 531
Total Expenses 10,604 10,022
Fees waived by investment adviser (1,865) (1,296)
Expenses reimbursed by investment adviser (6,264) (6,147)
------- -------
Total Expenses 2,475 2,579
----- -----
Net Investment Income (Loss) (1,953) (1,377)
------- -------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments 1,435 10,355
Net change in unrealized appreciation on investments 10,351 18,321
------ ------
Net realized and unrealized gain on investments 11,786 28,676
------ ------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $9,833 $27,299
----- ------
----- ------
</TABLE>
The accompanying notes are an integral part of the financial statements.
FINANCIAL HIGHLIGHTS
This table is presented to show selected data for a share outstanding
throughout each period, and to assist shareholders in in evaluating the Fund's
performance for the periods presented.
<TABLE>
Net Asset Value Net Investment Net realized and Distributions from Distributions from Net Asset Value
Beginning Income unrealized gain on net investment net realized gain End
of Period (Loss) investments income on investments of Period
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Micro-Cap Portfolio (a)
- -----------------------
1997 $5.01 (0.04) 0.24 0.00 0.00 $5.21
1996 $5.00 0.00 0.01 0.00 0.00 $5.01
Premier Portfolio (b)
- ---------------------
1996 $5.05 (0.03) 0.57 0.00 0.00 $5.59
1995 $5.00 0.00 0.05 0.00 0.00 $5.05
Ratio of expenses Ratio of net Average
Total Net Assets to average investment income to Portfolio Commission Rate
Return End of Year net assets average net assets Turnover Rate Paid+
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Micro-Cap Portfolio (a)
- -----------------------
1997 4.0% $260,295 1.99% -1.57% 76% $0.0574
1996 0.2% $250,462 1.99% -1.99% 0% $0.0499
Premier Portfolio (b)
- ---------------------
1996 10.7% $279,718 1.99% -1.06% 37% $0.0649
1995 1.0% $252,419 1.99% -1.99% 0% $0.0667
- --------------------------
</TABLE>
(a) Expense ratios and net investment income are shown after fee waivers and
expense reimbursements by the investment adviser. For the periods ended
June 30, 1997 and December 31, 1996, the expense ratios before the waivers
and reimbursements would have been 8.53% and 22.49%, respectively.
The Fund commenced operations on December 27, 1996.
(b) Expense ratios and net investment income are shown after fee waivers and
expense reimbursements by the investment adviser. For the periods ended
June 30, 1997 and December 31, 1996, the expense ratios before the waivers
and reimbursements would have been 7.73% and 22.02%, respectively.
The Fund commenced operations on December 27, 1996.
+ For fiscal years beginning on or after October 1, 1995, the Fund is required
to disclose its average commission rate paid per share for purchases and
sales of investments.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
The Micro-Cap Portfolio and Premier Portfolio (the "Fund" or
"Funds") are two series of Royce Capital Fund (the "Trust"), a
diversified open-end management investment company. The Trust
was established as a business trust under the laws of Delaware
effective January 11, 1996. The Funds commenced operations on
December 27, 1996.
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
a. Valuation of investments:
Securities listed on an exchange or on the Nasdaq National
Market System are valued on the basis of the last reported sale
prior to the time the valuation is made or, if no sale is
reported for such day, at their bid price for exchange-listed
securities and at the average of their bid and asked prices for
Nasdaq securities. Quotations are taken from the market where
the security is primarily traded. Other over-the-counter
securities for which market quotations are readily available are
valued at their bid price. Securities for which market
quotations are not readily available are valued at their fair
value under procedures established and supervised by the Board of
Trustees. Bonds and other fixed income securities may be valued
by reference to other securities with comparable ratings,
interest rates and maturities, using established independent
pricing services.
b. Investment transactions and related investment income:
Investment transactions are accounted for on the trade date
and dividend income is recorded on the ex-dividend date.
Interest income is recorded on the accrual basis. Realized gains
and losses from investment transactions and unrealized
appreciation and depreciation are determined on the basis of
identified cost for book and tax purposes.
c. Expenses:
Expenses directly attributable to each fund are charged to
that Fund's operations while expenses applicable to all Fund's
are allocated in an equitable manner.
d. Taxes:
The Funds intend to qualify as regulated investment
companies under Subchapter M of the Internal Revenue Code. The
Funds are not subject to income taxes to the extent that each
Fund distributes substantially all of its taxable income for its
fiscal year. The Schedule of Investments includes information
regarding income taxes under the caption "Income Tax
Information".
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
e. Distributions:
Dividend and capital gain distributions are recorded on the
ex-dividend date and paid annually in December. These
distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting
principles. Permanent book and tax basis differences relating to
shareholder distributions will result in reclassification to paid-
in capital and may affect net investment income per share.
Undistributed net investment income may include temporary book
and tax basis differences which will reverse in a subsequent
period. Any taxable income or gain remaining at fiscal year end
is distributed in the following year.
f. Repurchase agreements:
The Funds enter into repurchase agreements with respect to
portfolio securities solely with State Street Bank and Trust
Company ("SSB&T"), the custodian of their assets. Each Fund
restricts repurchase agreements to maturities of no more than
seven days. Securities pledged as collateral for repurchase
agreements are held by SSB&T until maturity of the repurchase
agreements. Repurchase agreements could involve certain risks in
the event of default or insolvency of SSB&T, including possible
delays or restrictions upon the ability of each Fund to dispose
of its underlying securities.
g. Organizational expenses:
Costs incurred by the Funds in connection with its
organization and initial registration of shares of $10,000 per
portfolio have been deferred and are being amortized on a
straight line basis over a five-year period from the date of
commencement of operations.
2. INVESTMENT ADVISER:
Under the Trust's investment advisory agreement with Royce &
Associates, Inc. ("Royce") (formerly Quest Advisory Corp.),
Royce is paid a monthly fee at an annual rate of 1.5% and 1.0% of
the average net assets of Micro-Cap Portfolio, and Premier
Portfolio, respectively. For the six months ended June 30, 1997,
Royce voluntarily waived total advisory fees of $1,865 for Micro-
Cap Portfolio and $1,296 for Premier Portfolio.
3. PURCHASES AND SALES OF INVESTMENT SECURITIES:
For the six months ended June 30, 1997, the cost of
purchases and the proceeds from sales of investment securities,
other than short-term securities, were as follows:
Micro-Cap Portfolio Premier Portfolio
------------------- -----------------
[S] [C] [C]
Purchases $195,154 $148,547
Sales $100,232 $ 45,142
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