Exploring Royce Small-Cap Trust's Financial Performance
Royce Small-Cap Trust Overview
Royce Small-Cap Trust is a prominent closed-end diversified management investment company with a mission focused on long-term capital growth. This esteemed fund primarily invests at least 65% of its assets in equity securities of small- and micro-cap companies, making it a significant player in the small-cap investment landscape.
Key Characteristics
Identified as the oldest and largest small-cap closed-end fund, it has built a solid reputation over the years. The fund boasts an average weekly trading volume of approximately 1,141,987 shares, indicating a robust interest from investors. Moreover, its adviser brings over 50 years of experience specializing in small- and micro-cap investments. This wealth of expertise underpins the trust's investment strategies and risk management, contributing to its enduring success.
Performance Metrics
As of late January, the net asset value (NAV) for Royce Small-Cap Trust was reported at 17.36, alongside a market price (MKT) of 16.28. Notably, the fund achieved impressive returns across various time frames. For instance, the one-month total return was 2.18% for NAV and 3.04% for MKT, showcasing its ability to adapt to market fluctuations. In terms of annual returns, the one-year return was significantly higher at 18.26% for NAV and 23.41% for MKT, evidencing the fund's strong upward trajectory.
The fund demonstrated a three-year return of 6.63% (NAV) and 5.83% (MKT), while its five-year return stood at 10.79% (NAV) and 11.67% (MKT). The ten-year returns were equally compelling with NAV at 10.14% and MKT at 10.67%. These figures exemplify the trust's consistent performance and reliability for long-term investors.
Understanding Portfolio Diagnostics
Royce Small-Cap Trust provides a well-structured portfolio aimed at optimizing performance. The average market capitalization of the securities within the portfolio is approximately $3.13 billion. Additionally, the weighted average price-to-earnings (P/E) ratio is at 17.5, indicating a carefully evaluated selection of stocks that promise growth potential. The portfolio's weighted average price-to-book (P/B) ratio stands at 2.2, further reflecting the fair valuation of the underlying investments.
As of the latest reports, the fund's net assets have exceeded $2.04 billion. Such assets allow the trust to allocate investments across a diversified platform effectively, addressing multiple captures in the small-cap sector.
Portfolio Composition Insights
The Royce Small-Cap Trust comprises a range of sectors demonstrating its extensive diversification. For example, as of late January, the top five sectors included Industrials at 22.7%, Financials at 22.4%, Information Technology at 16.6%, Health Care at 9.7%, and Consumer Discretionary at 9.1%. This strategic sector allocation showcases the fund's approach to balancing risk while pursuing growth.
Furthermore, within its prominent positions, companies like Assured Guaranty and PAR Technology reflect Royce's commitment to investing in high-potential businesses that contribute to the overall growth strategy. This carefully chosen approach to portfolio management underscores the trust's proactive stance in a rapidly changing investment environment.
Recent Developments
The recent developments surrounding Royce Small-Cap Trust are noteworthy. Not only is it listed on the New York Stock Exchange under the ticker RVT, but the daily net asset values are also accessible, facilitating transparency for potential and existing investors. The trust’s commitment to keeping investors informed reflects a strong corporate ethos emphasizing confidence and clarity.
Considerable thought goes into the decision-making processes for investors considering Royce Small-Cap Trust. Understanding the fund's goals, associated risks, and fee structures is vital for ensuring that investment choices align with individual risk tolerance and financial objectives.
Frequently Asked Questions
What is Royce Small-Cap Trust's primary investment focus?
Royce Small-Cap Trust primarily focuses on investing in equity securities of small- and micro-cap companies, aiming for long-term capital growth.
How has the fund performed in the past year?
In the past year, the fund reported an 18.26% return on NAV and a 23.41% return on MKT, demonstrating strong growth.
What sectors does the fund primarily invest in?
The fund's top sectors include Industrials, Financials, Information Technology, Health Care, and Consumer Discretionary, showing a diverse investment approach.
Is Royce Small-Cap Trust a good investment option?
Investment suitability depends on individual financial goals and risk tolerance; historically, it has provided solid returns, appealing to long-term investors.
Where can I find daily net asset values for the fund?
Daily net asset values for Royce Small-Cap Trust can be accessed on their website and through various ticker symbol lookup services.
About The Author
Contact Ryan Hughes privately here. Or send an email with ATTN: Ryan Hughes as the subject to contact@investorshangout.com.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.