Royce Global Value Trust (NYSE: RGT) as of Nov 30, 2023

Rhea-AI Summary

Royce Global Value Trust (NYSE: RGT) 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. As of 11/30/23, the NAV was 10.93 and the MKT was 9.21. The average annual total return as of 11/30/23 ranged from 10.63% to -5.05% over different time periods. The fund primarily invests in small-cap and mid-cap companies, with an average market cap of $1839.6M and net assets of $68.9M. The top 5 sectors in the portfolio include Industrials, Financials, Information Technology, Materials, and Consumer Discretionary.

Positive

• Experienced fund adviser with over 50 years of small- and micro-cap investment experience.
• Average annual total return ranging from 10.63% to -5.05% over different time periods.
• Diversified portfolio with top sectors including Industrials, Financials, Information Technology, Materials, and Consumer Discretionary.

Negative

• The fund's NAV and MKT prices as of 11/30/23 were 10.93 and 9.21 respectively, indicating a potential discount to net asset value.
• The fund's three-year and five-year total returns were negative, which may raise concerns for potential investors.

Financial Analyst

Examining the performance data of Royce Global Value Trust, the discrepancy between NAV and market price is notable. A NAV of $10.93 compared to a market price of $9.21 indicates a potential discount to the intrinsic value of the fund's assets, which could attract value investors. However, this discount also reflects market sentiment, possibly due to concerns over the fund's exposure to small-cap and micro-cap equities, known for their higher volatility compared to larger-cap stocks.

Furthermore, the fund's historical performance shows a negative three-year return, which may raise questions about its investment strategy during a period marked by significant market fluctuations. The five-year and 10-year returns are positive but modest, which could suggest a conservative approach or a difficulty in significantly outperforming the market.

The fund's portfolio diagnostics reveal a weighted average P/E ratio of 20.1x and a P/B ratio of 2.3x. These metrics are useful for investors to gauge if the fund's holdings are priced attractively relative to their earnings and book value. However, the exclusion of companies with zero or negative earnings from the P/E calculation could skew the perception of value.

Given the current economic climate and the fund's performance, stakeholders should weigh the potential for long-term capital growth against the inherent risks associated with the fund's focus on smaller companies and international exposure.

Market Research Analyst

The sector allocation of Royce Global Value Trust, with a heavy emphasis on industrials (38.2%) and financials (22.5%), is indicative of the fund's investment thesis. This concentration suggests a belief in the growth potential of these sectors, which could be influenced by macroeconomic factors such as infrastructure development and financial services' resilience or innovation.

However, the global diversification of the fund, with at least 65% of net assets in companies outside the United States, adds a layer of complexity due to varying economic conditions, regulations and currency fluctuations. This international exposure can offer both diversification benefits and additional risks.

Investors should also consider the fund's net leverage of 5.1%. While leverage can amplify returns, it also increases the potential for higher losses, making the fund's risk profile an important consideration.

The average market cap of $1.839.6M suggests a focus on small- to mid-cap companies, which could offer higher growth potential but also greater risk, particularly in turbulent market conditions. Investors should evaluate whether the fund's strategy aligns with their risk tolerance and investment horizon.

Economist

The performance of Royce Global Value Trust must be contextualized within the broader economic environment. The small- and micro-cap investment focus is significant because these companies can be more sensitive to economic downturns. However, they can also offer substantial growth during economic recoveries, making timing a critical factor in investment decisions.

The fund's international investment strategy is particularly relevant given the current global economic uncertainties, including trade tensions, geopolitical risks and divergent monetary policies. These factors can affect the fund's foreign securities in ways that are distinct from U.S. investments.

Investors should be aware of the inflationary pressures and interest rate changes, as these can impact different sectors unevenly. The fund's significant investment in industrials and financials could be sensitive to such economic shifts, which may influence the fund's performance going forward.

NEW YORK, Dec. 28, 2023 /PRNewswire/ --

• A closed-end fund that invests in global equities using a disciplined value approach
• Average weekly trading volume of approximately 47,282 shares
• Fund's adviser has more than 50 years of small- and micro-cap investment experience

 

CLOSING PRICES AS OF 11/30/23
NAV	10.93
MKT	9.21
AVERAGE ANNUAL TOTAL RETURN AS OF 11/30/23	NAV (%)	MKT (%)
One-Month*	10.63	14.38
Year to Date*	6.63	6.47
One-Year	2.35	-1.90
Three-Year	-1.04	-5.05
Five-Year	5.45	6.04
10-Year	4.84	4.31
*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	$1839.6M
Weighted Average P/E2	20.1x
Weighted Average P/B2	2.3x
Net Assets	$68.9M
Net Leverage	5.1 %

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 11/30/23). 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	3.0
APi Group	2.8
Transcat	2.3
Morningstar	2.2
ESAB Corporation	2.1
SEI Investments	2.0
Alamos Gold Cl. A	2.0
AIA Engineering	2.0
Artisan Partners Asset Management Cl. A	1.8
TOP FIVE SECTORS	% OF NET ASSETS (SUBJECT TO CHANGE)
Industrials	38.2
Financials	22.5
Information Technology	14.2
Materials	8.3
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

What is Royce Global Value Trust's ticker symbol?

Royce Global Value Trust's ticker symbol is RGT on the NYSE.

What is the average annual total return of Royce Global Value Trust?

As of 11/30/23, the average annual total return of Royce Global Value Trust ranged from 10.63% to -5.05% over different time periods.

What are the top sectors in Royce Global Value Trust's portfolio?

The top sectors in Royce Global Value Trust's portfolio include Industrials, Financials, Information Technology, Materials, and Consumer Discretionary.

What is the net asset value (NAV) of Royce Global Value Trust as of 11/30/23?

The NAV of Royce Global Value Trust as of 11/30/23 was 10.93.

What is the market price (MKT) of Royce Global Value Trust as of 11/30/23?

The MKT of Royce Global Value Trust as of 11/30/23 was 9.21.