SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934
(Amendment No. )
Filed by the Registrant [ X ]
Filed by a Party other than the Registrant [ ]
Check the appropriate box:
[ ] Preliminary Proxy Statement
[ ] Confidential, for Use of the Commission Only (as permitted by Rule 14a-
6(e)(2))
[ X ] Definitive Proxy Statement
[ ] Definitive Additional Materials
[ ] Soliciting Material Pursuant to Section 240.14a-11(c) or Section
240.14a-12
ROYCE FOCUS TRUST, INC.
(Name of Registrant as Specified In Its Charter)
(Name of Person(s) Filing Proxy Statement if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
[ X ] No fee required.
[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.
1) Title of each class of securities to which transaction applies:
2) Aggregate number of securities to which transaction applies:
3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (Set forth the amount on which
the filing fee is calculated and state how it was determined):
4) Proposed maximum aggregate value of transaction:
5) Total fee paid:
[ ] Fee paid previously with preliminary materials.
[ ] Check box if any part of the fee is offset as provided by Exchange Act
Rule 0-11(a)(2) and identify the filing for which the offsetting fee was
paid previously. Identify the previous filing by registration statement
number, or the Form or Schedule and the date of its filing.
1) Amount Previously Paid:
2) Form, Schedule or Registration Statement No.:
3) Filing Party:
4) Date filed:
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
ROYCE FOCUS TRUST, INC.
To the Stockholders of
ROYCE FOCUS TRUST, INC.
NOTICE IS HEREBY GIVEN that the Annual Meeting of Stockholders of ROYCE
FOCUS TRUST, INC. (the "Fund") will be held at the offices of the Fund, 1414
Avenue of the Americas, New York, New York, on April 26, 2000 at 11:00 a.m.
(E.T.), for the following purposes:
1. To elect a board of six directors, four to be elected by the
holders of both the Fund's Common Stock and its 7.45% Cumulative Preferred
Stock (the "Preferred Stock") voting together as a single class, and two to
be elected only by the holders of the Fund's Preferred Stock.
2. To ratify the selection of Tait, Weller & Baker as independent
public accountants of the Fund for the year ending December 31, 2000.
3. To transact such other business as may come before the meeting or
any adjournment thereof.
The Board of Directors has fixed the close of business on March 16, 2000
as the record date for the determination of those stockholders entitled to
vote at the meeting, and only holders of record at the close of business on
that day will be entitled to vote.
The Fund's Annual Report to Stockholders for the year ended December 31,
1999 was previously mailed to stockholders, and copies of it are available
upon request, without charge, by writing to the Fund at 1414 Avenue of the
Americas, New York, New York 10019, calling toll free at 1-800-221-4268, or e-
mailing the Fund at funds@roycenet.com.
IMPORTANT
To save the Fund the expense of additional proxy solicitation, if you do
not now expect to be present at the meeting, please insert your instructions
on the enclosed Proxy, date and sign it and return it in the enclosed
envelope (which requires no postage if mailed in the United States). The
Proxy is solicited on behalf of the Board of Directors, is revocable and will
not affect your right to vote in person in the event that you attend the
meeting.
By order of the Board of Directors,
John E. Denneen
Secretary
March 28, 2000
ANNUAL MEETING OF STOCKHOLDERS
OF
ROYCE FOCUS TRUST, INC.
1414 Avenue of the Americas
New York, New York 10019
Wednesday, April 26, 2000
_____________________________
PROXY STATEMENT
_____________________________
Accompanying this Proxy Statement is a Notice of Annual Meeting of
Stockholders and a form of Proxy for the meeting, solicited on behalf of the
directors of Royce Focus Trust, Inc. (the "Fund").
The Proxy may be revoked at any time before it is exercised by written
instructions to the Fund or by filing a new Proxy with a later date, and any
stockholder attending the meeting may vote in person, whether or not he or
she has previously filed a Proxy. Shares represented by all properly
executed Proxies received in time for the meeting will be voted. Where a
stockholder has specified a choice on the Proxy with respect to Proposal 2 in
the Notice of Annual Meeting, his or her shares will be voted accordingly.
If no directions are given, the stockholder's shares will be voted in favor
of the Proposal. Unless authority to vote for all nominees or for an
individual nominee pursuant to Proposal 1 is specifically withheld, the Proxy
will be voted for the election of all of the persons nominated by the Board
of Directors to become directors. The cost of soliciting proxies will be
borne by the Fund, which will reimburse brokerage firms, custodians, nominees
and fiduciaries for their expenses in forwarding proxy materials to the
beneficial owners of the Fund's shares. Some officers and employees of the
Fund and/or Royce & Associates, Inc. ("Royce"), the Fund's investment
adviser, may solicit Proxies personally and by telephone, if deemed
desirable.
On March 16, 2000, the record date for the meeting, there were 8,584,506
shares of Common Stock and 800,000 shares of Preferred Stock of the Fund
outstanding. Stockholders entitled to vote are those of record on that date.
Shares of both the Common Stock and the Preferred Stock are entitled to one
vote on each item of business at the meeting. Stockholders vote at the
Annual Meeting by casting ballots (in person or by proxy)
which are tabulated
by one or two persons, appointed by the Board of Directors before the
meeting, who serve as Inspectors and Judges of Voting at the meeting and who
have executed an Inspectors and Judges Oath. Neither abstentions nor broker
non-votes are counted in the tabulation of such votes.
The following persons were known to the Fund to be beneficial owners or
owners of record of 5% or more of its outstanding shares of Common Stock and
Preferred Stock as of the record date.
Class Amount and Nature Percentage
Name and Address of Owner of Stock of Ownership of Class
- ------------------------- -------- ----------------- ----------
Charles M. Royce Common 908,860 shares-- 10.6%
1414 Avenue of the Americas Beneficial (sole voting
New York, NY 10019 and investment power)
Yale University Common 752,838 shares-- 8.8%
451 College Street Beneficial (sole voting
P.O. Box 1074 Yale Station and investment power)
New Haven, CT 06520
Wachovia Corporation Common 572,582 shares-- 6.7%
100 North Main Street Beneficial (sole voting
Winston Salem, NC 27150 and investment power)
Cede & Co.* Common 7,772,770 shares-Record* 90.5%
Depository Trust Company
7 Hanover Square-23rd Floor Preferred 787,749 shares-Record* 98.2%
New York, NY 10004
*Shares held by brokerage firms, banks and other financial
intermediaries on behalf of their beneficial owners are registered in the
name of Cede & Co.
SUMMARY OF VOTING RIGHTS ON PROXY PROPOSALS
Common Preferred
Proposal Stockholders Stockholders
- -------- ------------ ------------
1 Common and Preferred Stockholders, Preferred Stockholders,
voting together as a single class, elect voting as a separate class,
4 directors elect 2 additional directors
2 Common and Preferred Stockholders, voting together as a single class
1. ELECTION OF DIRECTORS (Proposal 1)
Six directors are proposed for election at the meeting, each director to
hold office until the next Annual Meeting of Stockholders and until his
successor shall have been elected and qualified. The holders of both the
Common Stock and the Preferred Stock, voting together as a single class, are
entitled to elect four directors. The holders of the Preferred Stock, voting
as a separate class, are entitled to elect the remaining two directors. The
Fund's Board of Directors has nominated the following six persons, each of
whom has served as a director since October 31, 1996 (except for William L.
Koke, who has served as a director since August 1997, and Donald R. Dwight,
who has served as a director since June 1998), to become directors of the
Fund. Certain information concerning them is set forth below. Each of these
persons has agreed to serve if elected, and the Fund's management has no
reason to believe that any of them will be unavailable for election as a
director. However, if any of them become unwilling or unable to serve, the
persons named in the accompanying form of Proxy will vote for the election of
such other persons, if any, as the Board of Directors may nominate.
Positions With
Name Age The Fund Elected By
---- --- -------------- ----------
Charles M. Royce 60 Director, President Common and
and Treasurer Preferred
Donald R. Dwight 68 Director Common and
Preferred
Positions With
Name Age The Fund Elected By
---- --- -------------- ----------
Richard M. Galkin 61 Director Common and
Preferred
Stephen L. Isaacs 60 Director Preferred only
William L. Koke 65 Director Common and
Preferred
David L. Meister 60 Director Preferred only
A total of 5 meetings of the Board of Directors were held during the
year ended December 31, 1999, and each director attended 75% or more of the
meetings held during the period in which he served.
The Board of Directors has an Audit Committee, comprised of Donald R.
Dwight, Richard M. Galkin, Stephen L. Isaacs, William L. Koke and David L.
Meister, which is responsible for, among other things, recommending the
selection and nomination of the Fund's independent auditors and for
conducting post-audit reviews of its financial condition with the auditors.
Mr. Galkin serves as Chairman of the Audit Committee. The Audit Committee
has adopted a written charter which sets forth its composition, purposes and
responsibilities and is attached as Exhibit A to this Proxy Statement. The
Audit Committee held two meetings during the year ended December 31, 1999.
The Board of Directors does not have any other compensation or nominating
committees.
There are no family relationships between any of the Fund's directors
and officers.
As of the record date, the Fund's directors beneficially owned the
following shares of its Common Stock:
Name of Director Amount Percentage of Class
---------------- ------ -------------------
Charles M. Royce ..............908,860 shares 10.6%
Donald R. Dwight ................. 500 shares -
Richard M. Galkin ...............1,030 shares -
Stephen L. Isaacs .................615 shares -
William L. Koke ...................500 shares -
David L. Meister........................None -
Mr. Royce has sole voting power and sole investment power as to the
shares beneficially owned by him. As of the record date, all directors and
officers of the Fund as a group (11 persons) beneficially owned 1,078,368
shares of the Fund's Common Stock, constituting 12.6% of the outstanding
shares, and no shares of its Preferred Stock.
Business Experience
Set forth below is certain information as to the principal business
experience of the Fund's directors during at least the past five years.
Charles M. Royce is the President, Secretary, Treasurer and sole
director and sole voting shareholder of Royce, the Fund's investment adviser.
He has served as Royce's President, Treasurer and Chief Investment Officer
for more than 25 years. Mr. Royce also manages three private investment
partnerships through Royce Management Company ("RMC"), a registered
investment adviser, of which he is the managing general partner.
Donald R. Dwight is President of Dwight Partners, Inc., corporate
communications consultants. From 1982 until March 1998, he served as
Chairman of Newspapers of New England, Inc. and is now its Chairman Emeritus.
He is also a trustee of the registered investment companies constituting the
Eaton Vance funds. Mr. Dwight's prior experience includes having served as
Lieutenant Governor of the Commonwealth of Massachusetts and as President and
Publisher of Minneapolis Star and Tribune Company.
Richard M. Galkin is a private investor and the President of Richard M.
Galkin Associates, Inc., tele-communications consultants. His prior business
experience includes having served as President of Manhattan Cable Television
(a subsidiary of Time Inc.), President of Havermills Inc. (another Time Inc.
subsidiary), President of Rhode Island Cable Television and Senior Vice
President of Satellite Television Corp. (a subsidiary of Comstat).
Stephen L. Isaacs has been President of The Center for Health and Social
Policy since September 1996 and President of Stephen L. Isaacs Associates,
consultants. He was a Director of the Columbia University Development Law
and Policy Program and a Professor at Columbia University until August 1996.
William L. Koke is a financial planner and President of Shoreline
Financial Consultants. His prior business experience includes having served
as Director of Financial Relations of SONAT, Inc. (formerly Southern Natural
Resources, Inc.), Treasurer of Ward Foods, Inc. and President of CFC, Inc.
David L. Meister became Chief Executive Officer of Seniorlife.com in
December 1999. For seven years prior thereto, he was a consultant to the
communications industry. His prior business experience includes having
served as President of Financial News Network, Senior Vice President of HBO,
President of Time-Life Films and Head of Broadcasting for Major League
Baseball.
Mr. Royce is also President and Treasurer of Royce Micro-Cap Trust, Inc.
("OTCM"), Royce Value Trust, Inc. ("RVT"), The Royce Fund ("TRF") and Royce
Capital Fund ("RCF"), registered management investment companies. Messrs.
Royce, Dwight, Galkin, Isaacs and Meister are also directors/trustees of
OTCM, RVT, TRF and RCF. Mr. Koke is also a trustee of TRF. Mr. Royce is
also the sole director and Secretary of Royce Fund Services, Inc. ("RFS"),
the distributor of The Royce Fund's shares.
Mr. Royce is an "interested person" of the Fund within the meaning of
Section 2(a)(19) of the Investment Company Act of 1940.
Officers of the Fund
Officers of the Fund are elected each year by the Fund's Board of
Directors at its regular meeting in
March. In addition to Mr. Royce, with respect to whom information is set
forth above, the Fund's officers include the following:
John D. Diederich, 48, Vice President of the Fund since 1996, Director
of Administration of The Royce Funds and President of RFS.
Jack E. Fockler, Jr., 41, Vice President of the Fund since 1996 and a
Managing Director and Vice President of Royce.
W. Whitney George, 41, Vice President of the Fund since 1996 and a
Managing Director, Senior Portfolio Manager and Vice President of Royce.
Daniel A. O'Byrne, 37, Vice President of the Fund since 1996 and a Vice
President of Royce.
John E. Denneen, 33, Secretary of the Fund since 1996 and Associate
General Counsel of Royce.
Remuneration of Directors and Officers
Set forth below is the compensation paid by the Fund and the four other
registered investment companies comprising The Royce Funds to each director
for the year ended December 31, 1999.
Aggregate Compensation Total Compensation From the Fund
Director From the Fund and Other Royce Funds
-------- ---------------------- ---------------------------
Charles M. Royce - -
Donald R. Dwight $3,187.50* $61,750*
Richard M. Galkin 3,500 58,000
Stephen L. Isaacs 3,750 61,750
William L. Koke 3,750 38,750
David L. Meister 3,750 61,750
* Includes $562.50 from the Fund ($9,187 from the Fund and other Royce
Funds) deferred during 1999 at the election of Mr. Dwight under The Royce
Funds' Deferred Compensation Plan for directors/trustees.
Each of the Fund's non-affiliated directors receives a base fee of
$2,500 per year plus $250 for each meeting of the Board of Directors
attended. No director of the Fund received remuneration for services as a
director for the year ended December 31, 1999 in addition to or in lieu of
this standard arrangement.
Vote Required
A quorum consists of stockholders representing a majority of the
outstanding shares of the Fund's Common Stock and/or Preferred Stock, as the
case may be, entitled to vote who are present in person or by proxy, and a
plurality of all of the votes cast at a meeting at which a quorum is present
is sufficient to elect a director.
The Board of Directors recommends a vote FOR all nominees.
2. RATIFICATION OF
SELECTION OF INDEPENDENT PUBLIC ACCOUNTANTS (Proposal 2)
The Board of Directors, including a majority of the directors who are
not "interested persons" of the Fund, has selected Tait, Weller & Baker,
independent accountants, to serve as the Fund's auditors for the year ending
December 31, 2000. Stockholders are asked, through this proposal, to ratify
this selection.
Tait, Weller & Baker has informed the Fund that neither Tait, Weller &
Baker nor any of its partners has any direct or indirect financial interest
in the Fund except as auditors and independent public accountants. A
representative of Tait, Weller & Baker is not expected to be present at the
meeting, but has been given an opportunity to make a statement if he so
desires, and will be available should any matter arise requiring his
participation.
Vote Required
Ratification of the selection of Tait, Weller & Baker as the independent
public accountants of the Fund requires the affirmative vote of a majority of
the outstanding shares of the Fund's Common Stock and Preferred Stock, voting
together as a single class, present or represented at the meeting (assuming
that more than 50% of the shares are present or represented).
The Board of Directors recommends a vote FOR Proposal 2.
3. OTHER BUSINESS
While the meeting has been called to transact any business that may
properly come before it, the Directors know of no other business than the
matters stated in Proposals 1 and 2 in the Notice of the Annual Meeting.
However, if any additional matter properly comes before the meeting and on
all matters incidental to the conduct of the meeting, it is the intention of
the person or persons named in the enclosed Proxy to vote in accordance with
their judgment on such matters.
ADDITIONAL INFORMATION
The address of Royce & Associates, Inc., the Fund's investment adviser,
is 1414 Avenue of the Americas, New York, New York 10019.
STOCKHOLDER PROPOSALS
Proposals of stockholders intended to be presented at the Fund's 2001
Annual Meeting of Stockholders must be received by the Fund by November 28,
2000, for inclusion in the Fund's Proxy Statement and form of Proxy for that
meeting. The Fund's Bylaws generally require advance notice be given to the
Fund in the event a stockholder desires to nominate a person for election to
the Board of Directors or to transact any other business from the floor at an
annual meeting of stockholders. Notice of any such nomination or other
business must be received in writing at the Fund's principal executive office
not less than 15 calendar days before the annual meeting.
PLEASE FILL IN, DATE AND SIGN THE PROXY AND RETURN IT IN THE ACCOMPANYING
POSTAGE-PAID ENVELOPE.
RCGT-PS-00
EXHIBIT A
ROYCE FOCUS TRUST, INC.
AUDIT COMMITTEE CHARTER
1. The Audit Committee of the Board of Directors shall be composed entirely
of independent directors.
2. The purposes of the Audit Committee are:
(a) to oversee the Fund's accounting and financial reporting policies and
practices, its internal controls and, as appropriate, the internal
controls of certain of its service providers;
(b) to oversee the quality and objectivity of the Fund's financial
statements and the independent audit thereof; and
(c) to act as a liaison between the Fund's independent auditors and the
full Board of Directors.
The function of the Audit Committee is oversight; it is management's
responsibility to maintain appropriate systems for accounting and
internal control, and the auditors' responsibility to plan and carry out
a proper audit.
3. To carry out its purposes, the Audit Committee shall have the following
duties and powers:
(a) to recommend the selection, retention or termination of auditors and,
in connection therewith, to evaluate the independence of the
auditors, including whether the auditors provide any consulting
services to the manager, and to receive the auditors' specific
representations as to their independence;
(b) to meet with the Fund's independent auditors, including private
meetings, as necessary (i) to review the arrangements for and scope
of the annual audit and any special audits; (ii) to discuss any
matters of concern relating to the Fund's financial statements,
including any adjustments to such statements recommended by the
auditors, or other results of the audit(s); (iii) to consider the
auditors' comments with respect to the Fund's financial policies,
procedures and internal accounting controls and management's
responses thereto; and (iv) to review the form of opinion the
auditors propose to render to the Board and shareholders;
(c) to consider the effect upon the Fund of any changes in accounting
principles or practices proposed by management or the auditors;
(d) to review the fees charged by the auditors for audit and non-audit
services;
(e) to investigate improprieties or suspected improprieties in Fund
operations; and
(f) to report its activities to the full Board on a regular basis and to
make such recommendations with respect to the above and other matters
as the Committee may deem necessary or appropriate.
4. The Committee shall meet on a regular basis and is empowered to
hold special meetings as circumstances require.
5. The Committee shall regularly meet with the President and the Treasurer
of the Fund and with internal auditors, if any, for the management company.
6. The Committee shall have the resources and authority appropriate to
discharge its responsibilities, including the authority to retain special
counsel and other experts or consultants at the expense of the Fund.
7. The Committee shall review this Charter at least annually and recommend
any changes to the full Board of Directors.
COMMON STOCK ROYCE FOCUS TRUST, INC. COMMON STOCK
1414 Avenue of the Americas
New York, NY 10019
This Proxy is solicited on behalf of the Board of Directors.
The undersigned, a Common Stockholder of Royce Focus Trust, Inc., hereby
appoints Charles M. Royce and John E. Denneen, or either of them, acting in
absence of the other, as Proxies, each with the power to appoint his
substitute, and hereby authorizes them to represent and to vote, as
designated on the reverse, all shares of Common Stock of the Fund held of
record by the undersigned on March 16, 2000, at the Annual Meeting of
Stockholders to be held on April 26, 2000, or at any adjournment thereof.
This Proxy, when properly executed, will be voted in the manner directed by
the undersigned stockholder. If no direction is made, this Proxy will be
voted FOR Proposals 1 and 2.
Please vote, date and sign on reverse and return promptly in the enclosed
envelope.
Please sign exactly as your name(s) appear(s) on other side. When shares are
held by joint tenants, both should sign. When signing as attorney, executor,
administrator, trustee or guardian, please give full title as such. If a
corporation, please sign in full corporate name by president or other
authorized officer. If a partnership, please sign in partnership name by
authorized person.
HAS YOUR ADDRESS CHANGED? DO YOU HAVE ANY COMMENTS?
_____________________________________ _____________________________________
_____________________________________ _____________________________________
_____________________________________ _____________________________________
X PLEASE MARK VOTES
AS IN THIS EXAMPLE
_____________________________________________
ROYCE FOCUS TRUST, INC.
COMMON STOCK
_____________________________________________
With- For All
For hold Except
/ / / / / /
1. ELECTION OF DIRECTORS
Charles M. Royce, Donald R. Dwight
Richard M. Galkin and William L. Koke
If you do not wish your shares voted "FOR"
a particular nominee, mark the "For All Except"
box and strike a line through the nominee's name.
Your shares will be voted for the remaining
nominees.
For Against Abstain
/ / / / / /
2. PROPOSAL TO RATIFY THE SELECTION
OF TAIT, WELLER & BAKER AS IN-
DEPENDENT PUBLIC ACCOUNTANTS
3. THE PROXIES ARE AUTHORIZED TO VOTE
UPON SUCH OTHER BUSINESS AS MAY
PROPERLY COME BEFORE THE MEETING.
Please be sure to sign and date this Proxy. Date:
Mark box at the right if an address change
or comment has been noted on the reverse
side of this card.
Stockholder sign here Co-owner sign here RECORD DATE SHARES:
PREFERRED STOCK ROYCE FOCUS TRUST, INC. PREFERRED STOCK
1414 Avenue of the Americas
New York, NY 10019
This Proxy is solicited on behalf of the Board of Directors.
The undersigned, a Preferred Stockholder of Royce Focus Trust, Inc., hereby
appoints Charles M. Royce and John E. Denneen, or either of them, acting in
absence of the other, as Proxies, each with the power to appoint his
substitute, and hereby authorizes them to represent and to vote, as
designated on the reverse, all shares of the 7.45% Cumulative Preferred Stock
of the Fund held of record by the undersigned on March 16, 2000, at the
Annual Meeting of Stockholders to be held on April 26, 2000, or at any
adjournment thereof.
This Proxy, when properly executed, will be voted in the manner directed by
the undersigned stockholder. If no direction is made, this Proxy will be
voted FOR Proposals 1 and 2.
Please vote, date and sign on reverse and return promptly in the enclosed
envelope.
Please sign exactly as your name(s) appear(s) on other side. When shares are
held by joint tenants, both should sign. When signing as attorney, executor,
administrator, trustee or guardian, please give full title as such. If a
corporation, please sign in full corporate name by president or other
authorized officer. If a partnership, please sign in partnership name by
authorized person.
HAS YOUR ADDRESS CHANGED? DO YOU HAVE ANY COMMENTS?
_____________________________________ _____________________________________
_____________________________________ _____________________________________
_____________________________________ _____________________________________
X PLEASE MARK VOTES
AS IN THIS EXAMPLE
_____________________________________________
ROYCE FOCUS TRUST, INC.
PREFERRED STOCK
_____________________________________________
With- For All
For hold Except
/ / / / / /
1. ELECTION OF DIRECTORS
Charles M. Royce, Donald R. Dwight
Richard M. Galkin, Stephen L. Isaacs,
William L. Koke and David L. Meister
If you do not wish your shares voted "FOR"
a particular nominee, mark the "For All Except"
box and strike a line through the nominee's name.
Your shares will be voted for the remaining
nominees.
For Against Abstain
/ / / / / /
2. PROPOSAL TO RATIFY THE SELECTION
OF TAIT, WELLER & BAKER AS IN-
DEPENDENT PUBLIC ACCOUNTANTS
3. THE PROXIES ARE AUTHORIZED TO VOTE
UPON SUCH OTHER BUSINESS AS MAY
PROPERLY COME BEFORE THE MEETING.
Please be sure to sign and date this Proxy. Date:
Mark box at the right if an address change
or comment has been noted on the reverse
side of this card.
Stockholder sign here Co-owner sign here RECORD DATE SHARES: