Exploring Royce Small-Cap Trust's Performance and Investment Strategy
Understanding Royce Small-Cap Trust
Royce Small-Cap Trust (NYSE: RVT) is recognized as one of the oldest and largest small-cap closed-end funds. Its significant position in the market reflects over five decades of experience in small- and micro-cap investments, making it a key player for investors seeking growth potential in lesser-known companies. The trust has consistently maintained an average weekly trading volume of approximately 1,343,647 shares, highlighting its active market engagement and investor interest.
Key Performance Metrics
Recent Closing Prices
As of the latest available data, the net asset value (NAV) of Royce Small-Cap Trust is reported to be 17.06, while the market price stands at 15.18. These figures provide a snapshot of the fund's financial health and performance in the market.
Annual Returns Overview
The average annual total return for Royce Small-Cap Trust indicates varying performance across different time frames:
- One-Month Return: 1.91% NAV, 0.86% MKT
- Year to Date Return: 4.53% NAV, 0.02% MKT
- One-Year Return: 4.58% NAV, 3.40% MKT
- Three-Year Return: 10.33% NAV, 7.12% MKT
- Five-Year Return: 11.24% NAV, 11.98% MKT
- Ten-Year Return: 10.05% NAV, 10.41% MKT
It’s important to note that past performance does not guarantee future results, making ongoing evaluation essential for investors.
Overview of the Investment Portfolio
Portfolio Diagnostics
The Royce Small-Cap Trust primarily invests in small-cap and micro-cap securities, which generally carry more risk than larger-cap companies. The average market capitalization of the portfolio is approximately $3.2 billion, with a weighted average price-to-earnings (P/E) ratio of 18.5x, reflecting the value investors place on these smaller growth opportunities.
Moreover, the weighted average price-to-book (P/B) ratio stands at 2.1x, indicating valuation metrics conducive to potential growth. The total net assets managed amount to around $2.04 billion, solidifying the trust's capacity to explore diverse investment opportunities.
Top Performers and Sector Allocation
The current composition of the portfolio includes key positions such as:
- IES Holdings - 2.1%
- Assured Guaranty - 1.4%
- APi Group - 1.2%
- PAR Technology - 1.2%
- SEI Investments - 1.1%
Sector allocation plays a vital role in the strategy with significant concentrations noted in:
- Industrials - 25.4%
- Financials - 22.5%
- Information Technology - 14.4%
- Consumer Discretionary - 9.7%
- Health Care - 9.3%
Investment Potential and Risks
Royce Small-Cap Trust presents a diverse investment opportunity focused on achieving long-term capital growth by engaging with smaller, emerging companies. However, prospective investors should consider the inherent risks associated with small-cap investments. Market fluctuations can significantly affect share values, which may not always correlate with the overall performance of the underlying assets.
Frequently Asked Questions
What is the primary goal of Royce Small-Cap Trust?
The primary investment goal is long-term capital growth through investments in small- and micro-cap companies.
How does Royce Small-Cap Trust manage risks?
The trust employs a diversified portfolio strategy, which helps mitigate risks associated with individual securities and sectors.
What are the recent annual return rates?
The recent one-year return is reported at 4.58% for NAV and 3.40% for MKT, showcasing solid performance against market benchmarks.
How frequently is the NAV updated?
Daily net asset values (NAVs) are available on the trust's website and through various financial services.
Where can I find more information about the trust?
For additional details, you can contact The Royce Funds directly or visit their website.
About The Author
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