Exploring the Performance of Royce Micro-Cap Trust Fund Today
Royce Micro-Cap Trust Overview
Royce Micro-Cap Trust, Inc. focuses on investing in small enterprises, aiming to enhance the value of its shareholders through strategic equity investments. This trust operates as a closed-end diversified investment company, listed on the New York Stock Exchange under the ticker RMT.
Performance Highlights
Recently, the fund exhibited an average weekly trading volume of about 515,632 shares, indicating its active market presence. Investors can gauge its performance through the net asset value (NAV) and market price metrics. As of February 28, the NAV was reported at 10.47, while the market price stood at 9.29.
Annual Total Returns
The fund's annual total return is a critical indicator of its performance over various time spans. For a one-month period, the NAV decreased by 6.27%, with the market price showing a similar decline of 6.16%. Meanwhile, the year-to-date returns indicated a slight downturn of 4.64% for NAV and 4.72% for the market price. However, the one-year performance data shows more promise, with an impressive 7.18% return for NAV compared to 7.73% for market value.
Longer-Term Performance
In the three-year span, Vaughn, the annualized return was at 5.49%, while the five-year metrics indicated a solid growth of 12.77% for the NAV. The ten-year return maintained a respectable 8.82%, demonstrating the potential for long-term investment gains in micro-cap stocks.
Portfolio Diagnostics
The fund specializes in micro-cap investments, with an average market capitalization of around $746.1 million. The weighted average price-to-book (P/B) ratio sits at 1.9x, a metric that indicates the valuation relative to the company's book value. Net assets for the trust reached $540.4 million, highlighting its capacity for investment and growth.
Top Holdings Composition
Royce Micro-Cap Trust's investment strategy emphasizes its top ten positions, accounting for significant portions of the net assets. One of the leading companies in its portfolio is Universal Technical Institute, contributing 1.7% to the net assets. Similarly, other notable holdings include Richardson Electronics at 1.6% and Sprott, which represents 1.5% of the total assets. This diversified portfolio aims to reduce risk while maximizing return.
Sector Allocation
The trust invests heavily in various sectors, with Industrials leading at 23.2% of net assets, followed by Information Technology at 21.9%. Other sectors in the portfolio include Financials, Health Care, and Consumer Discretionary, which together provide balanced exposure to different market segments and assist in mitigating sector-specific risks.
Recent Developments
Currently, Royce Micro-Cap Trust is adapting to market dynamics while pushing for long-term capital growth. The investment approach remains focused on companies with market caps of $1 billion or less, representing the vast opportunities in the micro-cap sector. Daily net asset values (NAV) for the trust can easily be accessed online through brokerage ticker services under the symbol XOTCX, further increasing transparency for investors.
Important Considerations for Investors
Investors considering Royce Micro-Cap Trust should evaluate its investment goals, associated risks, and potential fees before making investment decisions. The fund's performance data underscores the inherent risks of investing in micro-cap stocks, often characterized by higher volatility in comparison to larger competitors. The daily movements in NAV may affect the perceived value of shares, underscoring the importance of informed decision-making.
Frequently Asked Questions
What is the primary objective of Royce Micro-Cap Trust?
The primary goal is long-term capital growth through strategic investments in micro-cap companies, typically those with a market capitalization of $1 billion or less.
How is the fund performing in recent months?
The fund has experienced a decline in both NAV and market price over the recent month, with returns noting -6.27% for NAV and -6.16% for the market price.
What does the NAV indicate?
The NAV reflects the value of the fund’s assets minus liabilities, providing investors with insight into the underlying value of their shares.
How do portfolio holdings affect the fund's performance?
The composition of the portfolio directly impacts performance. The trust's strategy includes a diversified approach with various sector investments to manage risk effectively.
Can daily NAVs be accessed easily?
Yes, daily NAVs for Royce Micro-Cap Trust are available online, aiding in the transparency and ease of monitoring for investors.
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