Insights on Royce Micro-Cap Trust's Latest Performance Review
Royce Micro-Cap Trust Overview
Royce Micro-Cap Trust, Inc. is a distinguished closed-end investment company that focuses on micro-cap assets. This fund has a commitment to long-term capital growth, targeting companies with market capitalizations of one billion dollars or less at the time of investment. With its shares traded on the New York Stock Exchange under the ticker symbol RMT, the Trust is aimed at investors seeking exposure to smaller, potentially high-growth firms.
Performance Metrics
The fund has showcased a strong average weekly trading volume of approximately 660,208 shares. Investors can look at the closing prices as of the specified date, highlighting the NAV at 10.76 and the market price at 9.47. These figures provide insight into the fund's overall health and stability. Although past performance does not guarantee future results, these metrics signify a consistent presence in the market.
Annual Returns
From an annual perspective, the fund reports varied returns that depict its stability and potential for growth. For the one-month period, the NAV return stood at 1.89%, while the market percentage was slightly higher at 2.38%. Year-to-date returns reflect a NAV increase of 2.23%, with the market return at 1.32%. Looking back over a one-year time span, the fund achieved a NAV return of 4.46% compared to 3.60% for market returns. Over a three-year period, the Trust produced impressive evidence of steady gains, showing NAV returns of 10.51% against market returns of 9.98%. This trend continues with five-year and ten-year returns reflecting consistent yield, making the fund a reliable option for investors.
Key Portfolio Diagnostics
When evaluating the fund’s core metrics, several worth noting include an average market capitalization of $740.7 million and a net asset value totaling $565.8 million. The wealth of data accumulated indicates a weighted average price-to-book ratio of 1.8x, further emphasizing the appeal of the Trust to investors looking for value. The net leverage of 2.3% is modest, showcasing the Trust’s cautious approach to leveraging assets in pursuit of growth.
Composition of the Portfolio
The portfolio is diversified across various sectors, with a noticeable focus on industrials, which comprise 29.0% of net assets. Information technology comes next at 20.7%, followed by financials with 17.3%. Other sectors such as health care and consumer discretionary are also represented, making for a well-rounded investment strategy. The top positions in the portfolio, including CECO Environmental, American Superconductor, and Bel Fuse, illustrate the type of companies that the Royce Micro-Cap Trust invests in. This diversification approach ensures that the fund can potentially benefit from various growth rates across industries and sectors.
Recent Developments
Royce Micro-Cap Trust remains committed to staying informed about market trends and evolving investment landscapes. As a testament to its growth and adaptability, daily net asset values are readily accessible through ticker symbol lookup services. For investors, this transparency reinforces the Trust's credibility and encourages informed decision-making.
Investor Considerations
Potential investors in Royce Micro-Cap Trust are advised to examine the fund’s objectives, risks, fees, and expenses meticulously. The fund’s nature as a closed-end investment company means that shares may trade at a discount to their NAV, which is an essential factor to consider when evaluating overall investment strategies.
Frequently Asked Questions
What is Royce Micro-Cap Trust?
Royce Micro-Cap Trust, Inc. focuses on investing in micro-cap firms with market capitalizations of one billion dollars or less to achieve long-term capital growth.
How are the returns for Royce Micro-Cap Trust calculated?
Returns are calculated based on the funds' net asset values (NAVs) and market prices, reflecting total returns after advisory fees and distribution reinvestments.
What sectors does the Trust primarily invest in?
The Trust has significant investments in industrials, information technology, financials, as well as health care and consumer discretionary sectors.
How does the Royce Micro-Cap Trust define its investment strategy?
The Trust aims for a diversified portfolio to mitigate risks while focusing on long-term capital appreciation through select micro-cap equity securities.
What is the current average market cap of the Trust's holdings?
The average market cap of the Trust’s holdings is approximately $740.7 million, indicating its focus on smaller companies.
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