Enhancing Long-Term Growth with Royce Micro-Cap Trust

Royce Micro-Cap Trust: A Commitment to Micro-Cap Investments

Royce Micro-Cap Trust, Inc. is a closed-end investment company focused on micro-cap securities, with its shares actively traded on the New York Stock Exchange under the ticker symbol RMT. Its primary aim is to achieve long-term capital growth by investing predominantly in companies that typically have a market capitalization of $1 billion or less. This distinctive approach allows investors to gain exposure to a segment of the market that is often overlooked by larger funds and mainstream investors.

Performance Metrics and Insights

Trading Volume and Share Performance

The average weekly trading volume for Royce Micro-Cap Trust stands at a notable 529,390 shares. This level demonstrates a healthy interest in the fund and reflects investor confidence in its strategy and performance.

Net Asset Value (NAV) and Market Price

As of Nov 30, 2024, the Net Asset Value (NAV) of the fund is recorded at 11.80, with a market price of 10.32. It's essential to monitor these figures as they indicate the fund’s overall market performance and can significantly influence investor decisions.

Annual Total Returns

Recent Performance Trends

Understanding the annual total return is crucial for potential investors. As of the same date, the fund has shown impressive performance, with a one-month return of 11.32% on NAV and 10.73% on market price. Year-to-date figures also underscore the fund's robust strategy, revealing a return of 19.30% on NAV and 18.23% on market price.

Long-Term Performance

Looking at the longer-term picture, Royce Micro-Cap Trust has achieved a one-year return of 32.77%, demonstrating its effectiveness in navigating the small-cap terrain. Over a five-year horizon, the returns were robust, with NAV at 14.13% and market price at 13.80%.

Portfolio Composition and Sector Allocation

Diagnostics and Major Holdings

The fund's portfolio is thoughtfully diversified, with an average market cap of approximately $854.6 million. The weighted average price-to-book (P/B) ratio stands at 2.2x, indication of the value companies in the portfolio.

The top positions include notable companies such as Transcat, Sprott, and PAR Technology, showcasing a variety of industries in its holdings. Understanding the allocation of investments helps in grasping the risk and potential return dynamics at play.

Sectors Driving Growth

Royce Micro-Cap Trust maintains strategic exposure in several sectors, with the top five being Information Technology at 23.3%, Industrials also at 23.3%, Financials at 16.1%, Health Care at 11.8%, and Consumer Discretionary at 5.7%. This sector distribution is pivotal as it allows management to capture growth across the micro-cap space effectively.

Important Considerations for Investors

Investing in Royce Micro-Cap Trust comes with unique risks and rewards. As the fund invests primarily in smaller companies, the volatility and risk may be higher compared to larger-cap investments. Therefore, potential investors should evaluate the fund's objectives, associated risks, fees, and expenses before making an investment decision.

Connecting with Royce Micro-Cap Trust

For those seeking more information on Royce Micro-Cap Trust, daily NAVs are published on the company's website, and investors can reach out to The Royce Funds at (800) 221-4268. Their commitment to transparency and investor education is evident in the resources available online.

Frequently Asked Questions

What is Royce Micro-Cap Trust's investment focus?

Royce Micro-Cap Trust primarily invests in micro-cap companies to achieve long-term capital growth.

How has the fund performed recently?

The fund reported a year-to-date return of 19.30% on NAV as of Nov 30, 2024.

What are the top sectors in the fund's portfolio?

The top sectors include Information Technology, Industrials, and Financials, highlighting its diverse exposure.

What are the risks associated with investing in micro-cap funds?

Investing in micro-cap funds can involve increased volatility and specific market risks due to the smaller nature of the companies.

How can I find out the current NAV of the fund?

Investors can check the daily NAVs published on Royce's official website or various financial platforms.

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Disclaimer: The content of this article is solely for general informational purposes only; it does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice; the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. The author's interpretation of publicly available data shapes the opinions presented here; as a result, they should not be taken as advice to purchase, sell, or hold any securities mentioned or any other investments. The author does not guarantee the accuracy, completeness, or timeliness of any material, providing it "as is." Information and market conditions may change; past performance is not indicative of future outcomes. If any of the material offered here is inaccurate, please contact us for corrections.