Royce Micro-Cap Trust (NYSE: RMT) as of Feb 29, 2024

Rhea-AI Summary

Royce Micro-Cap Trust (RMT) is a closed-end diversified investment company listed on the NYSE. With a focus on long-term capital growth, the fund primarily invests in equity securities of companies with market capitalization of $1 billion or less. The fund's adviser has over 50 years of small- and micro-cap investment experience. As of 02/29/24, the average weekly trading volume was around 511,698 shares. The NAV was $10.57, and the MKT was $9.33. The fund's performance showed positive returns over various periods, with notable holdings in sectors like Information Technology, Industrials, and Financials.

Positive

• The fund's adviser boasts over 50 years of small- and micro-cap investment experience.
• The average weekly trading volume of the Royce Micro-Cap Trust (RMT) was approximately 511,698 shares.
• As of 02/29/24, the NAV was $10.57, and the MKT was $9.33.
• The fund's performance displayed positive returns over different time frames, with notable holdings in sectors like Information Technology, Industrials, and Financials.
• The fund aims for long-term capital growth by primarily investing in equity securities of companies with market capitalization of $1 billion or less.

Negative

• None.

Market Research Analyst

The disclosed average weekly trading volume suggests a moderate level of liquidity, which can be an important consideration for investors who prioritize the ability to enter and exit positions with ease. The volume of 511,698 shares indicates a certain level of investor interest and market activity, which could be relevant for investors looking at the ease of trading these shares.

The performance metrics, such as the one-month, year-to-date and longer-term returns, are essential for evaluating the fund's historical success and potential trajectory. The one-year return of 10.94% for NAV and 8.37% for MKT, along with the five and ten-year returns, are indicative of the fund's performance in a historical context and could influence investor sentiment and decisions. However, it's important to note that past performance is not indicative of future results and these figures should be considered alongside other factors such as market conditions and the fund's current strategy.

Financial Analyst

The net asset value (NAV) and market price (MKT) provide a snapshot of the fund's valuation. The current NAV of $10.57 compared to the market price of $9.33 suggests the shares are trading at a discount, which could be seen as an opportunity or a sign of market skepticism about the fund's prospects. The discrepancy between NAV and market price could be due to various factors, including investor perception, market trends and the inherent risks of micro-cap investing.

The fund's investment in micro-cap companies introduces a higher risk/reward dynamic, which can lead to significant price volatility. Investors should be aware of the increased risk of capital loss, despite the potential for higher returns. The fund's diversified portfolio is designed to mitigate some of this risk, but diversification does not guarantee a profit or protect against loss in a declining market.

Investment Advisor

The Price-to-Book (P/B) ratio of 2.0x is a key indicator of how the market values the net assets of the companies within the portfolio relative to their book value. This metric can help investors understand the fund's investment strategy and the valuation levels of its holdings. A P/B ratio of 2.0x suggests that the companies in the portfolio are valued at twice their book value, which could imply that the market expects future growth or profitability that is not currently reflected on the companies' balance sheets.

Investors should also consider the fund's sector allocation, as it has significant exposure to Information Technology and Industrials. These sectors can be influenced by different economic factors and may have different risk profiles. The concentration in these areas should align with an investor's individual risk tolerance and investment goals.

NEW YORK, March 28, 2024 /PRNewswire/ -- 

• Average weekly trading volume of approximately 511,698 shares
• Fund's adviser has more than 50 years of small- and micro-cap investment experience

CLOSING PRICES AS OF 02/29/24
NAV	10.57
MKT	9.33

 

AVERAGE ANNUAL TOTAL RETURN AS OF 02/29/24	NAV (%)	MKT (%)
One-Month*	4.24	3.55
Year to Date*	0.96	0.97
One-Year	10.94	8.37
Three-Year	0.49	1.17
Five-Year	10.77	10.40
10-Year	8.15	8.14

*Not Annualized

Important Performance and Expense Information

All performance information reflects past performance, is presented on a total return basis, net of the Fund's investment advisory fee, 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 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 normally invests in micro-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.

PORTFOLIO DIAGNOSTICS
Average Market Cap1	$742.7M
Weighted Average P/B2	2.0x
Net Assets	$525.8M

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

Portfolio Composition

TOP 10 POSITIONS	% OF NET ASSETS (SUBJECT TO CHANGE)
Transcat	2.9
PAR Technology	2.4
Sprott	2.0
Mesa Laboratories	1.9
nLIGHT	1.8
Major Drilling Group International	1.7
Cellebrite DI	1.6
Aspen Aerogels	1.6
Camtek	1.6
EVI Industries	1.4

 

TOP FIVE SECTORS	% OF NET ASSETS (SUBJECT TO CHANGE)
Information Technology	23.6
Industrials	20.5
Financials	15.6
Health Care	12.2
Materials	7.8

Recent Developments
Royce Micro-Cap Trust, Inc. is a closed-end diversified investment company whose shares of Common Stock (RMT) are listed and traded on the New York Stock Exchange. The Fund's investment goal is long-term capital growth, which it seeks by investing primarily in equity securities of companies that, at the time of investment, have market capitalization of $1 billion or less.

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

An investor in Royce Micro-Cap Trust should consider the Fund's investment goals, risks, fees, and expenses carefully before investing.

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 Micro-Cap Trust, Inc.

What is the ticker symbol for Royce Micro-Cap Trust?

The ticker symbol for Royce Micro-Cap Trust is RMT.

What was the average weekly trading volume for Royce Micro-Cap Trust?

The average weekly trading volume for Royce Micro-Cap Trust was approximately 511,698 shares.

What were the NAV and MKT values of Royce Micro-Cap Trust as of 02/29/24?

As of 02/29/24, the NAV was $10.57, and the MKT was $9.33 for Royce Micro-Cap Trust.

What is the investment goal of Royce Micro-Cap Trust?

The investment goal of Royce Micro-Cap Trust is long-term capital growth, achieved by investing primarily in equity securities of companies with market capitalization of $1 billion or less.

What sectors have notable holdings in Royce Micro-Cap Trust?

Royce Micro-Cap Trust has notable holdings in sectors like Information Technology, Industrials, and Financials.