Royce Global Value Trust (NYSE: RGT) as of Dec 31, 2023

Rhea-AI Summary

Royce Global Value Trust is a closed-end fund that invests in global equities using a disciplined value approach. The fund's adviser has over 50 years of small- and micro-cap investment experience. The average weekly trading volume is approximately 159,168 shares. As of 12/31/23, the net asset value (NAV) is 11.72, and the market price (MKT) is 9.75. The average annual total return as of 12/31/23 is 16.15% for NAV and 14.50% for MKT over one year. However, the three-year and five-year returns are negative. The fund invests primarily in securities of small-cap and mid-cap companies, which involve more risk than investing in larger-cap companies. The average market cap is $2005.9M, with weighted average P/E of 21.5x and weighted average P/B of 2.5x. The fund's net assets are $74.6M with net leverage of 2.6%. The top five sectors include industrials, financials, information technology, materials, and consumer discretionary. The fund's recent developments focus on long-term growth of capital and investing in equity securities of companies located in at least three countries outside of the United States.

Financial Analyst

The disclosed performance metrics of the Royce Global Value Trust, such as the average annual total return, are crucial for evaluating the fund's historical effectiveness in capital appreciation. Notably, the fund's one-year NAV return of 16.15% and market return of 14.50% suggest a robust performance in a potentially volatile market. However, the negative three-year returns indicate challenges faced during that period. The fund's investment strategy, focusing on small- and micro-cap equities, inherently carries more risk due to the volatility associated with these market segments. The fund's geometric and harmonic average calculations for market cap and P/E ratios provide a nuanced view of portfolio valuation, which can be more informative than simple averages when assessing investment quality.

Market Research Analyst

Understanding the fund's portfolio composition is essential for assessing the diversification and potential risk exposure. With 37.3% of net assets invested in Industrials and 22.3% in Financials, the fund shows a significant concentration in these sectors, which could either be a strategic allocation or a potential risk if these sectors underperform. The fund's top holdings, such as Vistry Group and EVI Industries, reflect its commitment to the value investment approach. Additionally, the fund's strategy to invest in a minimum of three countries outside the United States highlights its global investment approach and could appeal to investors seeking international exposure.

Economist

The fund's exposure to small-cap and mid-cap companies, as well as a significant portion of its assets in foreign securities, align with a higher risk-return profile that may be influenced by macroeconomic factors. The weighted average P/E and P/B ratios provide insights into the fund's valuation against market trends and can be indicative of the fund's growth potential in relation to its price. Economic indicators such as currency fluctuations, political stability and international trade relations can significantly impact the fund's performance, especially considering its global investment focus.

NEW YORK, Jan. 29, 2024 /PRNewswire/ -- 

• A closed-end fund that invests in global equities using a disciplined value approach
• Average weekly trading volume of approximately 159,168 shares
• Fund's adviser has more than 50 years of small- and micro-cap investment experience

CLOSING PRICES AS OF 12/31/23
NAV	11.72
MKT	9.75

 

AVERAGE ANNUAL TOTAL RETURN AS OF 12/31/23	NAV (%)	MKT (%)
One-Month*	8.92	7.53
One-Year	16.15	14.50
Three-Year	-0.47	-2.82
Five-Year	9.13	8.61
10-Year	5.53	4.88

*Not Annualized

Important Performance and Expense Information

All performance information reflects past performance, is presented on a total return basis, and reflects the reinvestment of distributions. Past performance is no guarantee of future results. Current performance may be higher or lower than performance quoted. Returns as of the most recent month-end may be obtained at www.royceinvest.com. The market price of the Fund's shares will fluctuate, so that shares may be worth more or less than their original cost when sold.

The Fund invests primarily in securities of small-cap and mid-cap companies, which may involve considerably more risk than investing in larger-cap companies. The Fund's broadly diversified portfolio does not ensure a profit or guarantee against loss. From time to time, the Fund may invest a significant portion of its net assets in foreign securities, which may involve political, economic, currency and other risks not encountered in U.S. investments.

PORTFOLIO DIAGNOSTICS
Average Market Cap1	$2005.9M
Weighted Average P/E2	21.5x
Weighted Average P/B2	2.5x
Net Assets	$74.6M
Net Leverage	2.6 %

1Geometric Average: This weighted calculation uses each portfolio holding's market cap in a way designed to not skew the effect of very large or small holdings; instead, it aims to better identify the portfolio's center, which Royce believes offers a more accurate measure of average market cap than a simple mean or median.

2Harmonic Average: This weighted calculation evaluates a portfolio as if it were a single stock and measures it overall. It compares the total market value of the portfolio to the portfolio's share in the earnings of its underlying stocks.

The Price-Earnings, or P/E, ratio is calculated by dividing a company's share price by its trailing 12-month earnings-per-share (EPS). The Fund's P/E ratio calculation excludes companies with zero or negative earnings (14% of portfolio holdings as of 12/31/23). The Price-to-Book, or P/B, Ratio is calculated by dividing a company's share price by its book value per share.

The Price-to-Book, or P/B, Ratio is calculated by dividing a company's share price by its book value per share.

Net leverage is the percentage, in excess of 100 %, of the total value of equity type investments, divided by net assets.

Portfolio Composition

TOP 10 POSITIONS	% OF NET ASSETS (SUBJECT TO CHANGE)
Vistry Group	3.2
EVI Industries	2.5
Transcat	2.4
APi Group	2.4
Morningstar	2.1
SEI Investments	2.0
Artisan Partners Asset Management Cl. A	2.0
ESAB Corporation	2.0
Sprott	1.9
Griffon Corporation	1.8

 

TOP FIVE SECTORS	% OF NET ASSETS (SUBJECT TO CHANGE)
Industrials	37.3
Financials	22.3
Information Technology	14.0
Materials	7.8
Consumer Discretionary	7.4

Recent Developments
The investment goal of Royce Global Value Trust is long-term growth of capital. Under normal market circumstances, the Fund will invest at least 80% of its net assets in equity securities, such as common stock and preferred stock, and at least 65% of its net assets in the equity securities of companies located in at least three countries outside of the United States. Royce & Associates, LP manages the Fund.

Daily net asset values (NAVs) for Royce Global Value Trust are now available on our website and online through most ticker symbol lookup services and on broker terminals under the symbol XRGTX. For more information, please call The Royce Funds at (800) 221-4268 or visit our website at www.royceinvest.com.

An investor in Royce Global Value Trust should consider the Fund's investment goals, risks, fees, charges, and expenses carefully before purchasing share's of the Fund's common stock.

Important Disclosure Information
Closed-End Funds are registered investment companies whose shares of common stock may trade at a discount to their net asset value. Shares of each Fund's common stock are also subject to the market risks of investing in the underlying portfolio securities held by the Fund. Royce Fund Services, LLC. ("RFS") is a member of FINRA and has filed this material with FINRA on behalf of each Fund. RFS does not serve as a distributor or as an underwriter to the closed-end funds.

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SOURCE Royce Global Value Trust, Inc.

What is the net asset value (NAV) of Royce Global Value Trust as of 12/31/23?

The net asset value (NAV) of Royce Global Value Trust as of 12/31/23 is 11.72.

What is the market price (MKT) of Royce Global Value Trust as of 12/31/23?

The market price (MKT) of Royce Global Value Trust as of 12/31/23 is 9.75.

What is the average annual total return of Royce Global Value Trust as of 12/31/23?

The average annual total return of Royce Global Value Trust as of 12/31/23 is 16.15% for NAV and 14.50% for MKT over one year.

What are the top five sectors in which Royce Global Value Trust is invested?

The top five sectors in which Royce Global Value Trust is invested include industrials, financials, information technology, materials, and consumer discretionary.

What is the net leverage of Royce Global Value Trust?

The net leverage of Royce Global Value Trust is 2.6%.