Royce Value Trust (NYSE: RVT) as of Jan 31, 2024
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The provided financial metrics of Royce Value Trust, a small-cap and micro-cap focused closed-end fund, indicate a diversified investment approach with a primary objective of long-term capital growth. The fund's average annual total returns across various time frames, such as one-month, one-year, three-year, five-year and ten-year periods, are critical for assessing the fund's performance relative to the market and other investment vehicles. The discrepancy between the fund's Net Asset Value (NAV) and market price (MKT) suggests a trading discount, which could be of interest to investors seeking value opportunities.
Furthermore, the fund's investment in small-cap and micro-cap companies carries inherently higher risks due to potential volatility and liquidity concerns. However, such investments can also offer higher growth potential, which aligns with the fund's long-term capital growth goal. The fund's exposure to foreign securities adds another layer of risk but also provides geographical diversification, which can be beneficial in spreading risk across different markets.
The portfolio diagnostics provide insight into the fund's valuation metrics, such as the Weighted Average P/E and P/B Ratios, which are essential for evaluating the fund's investment strategy and stock selection criteria. A P/E ratio below the broader market average could signal undervaluation, while a higher ratio might suggest overvaluation. Similarly, the P/B ratio offers insights into how the market values the company's assets compared to its book value.
Analyzing the sector allocation of Royce Value Trust's portfolio reveals a strategic focus on Industrials, Financials, Information Technology, Health Care, and Consumer Discretionary sectors. This allocation reflects the fund's belief in the growth potential of these sectors. The prominence of industrials and financials could be indicative of the fund's conviction in the foundational segments of the economy, while a significant allocation to information technology and health care suggests a forward-looking approach that aims to capitalize on innovation and demographic trends.
Investors should consider the fund's top 10 positions as they represent the highest conviction bets and can significantly influence the fund's performance. The fund's ability to maintain a diversified portfolio despite focusing on small-cap and micro-cap companies is noteworthy and can be seen as a risk management strategy. It's important for investors to monitor changes in these top holdings and sector weightings as they can have a material impact on the fund's performance.
The performance of small-cap and micro-cap funds like Royce Value Trust can be influenced by macroeconomic factors such as interest rates, inflation and economic growth rates. These companies are often more sensitive to domestic economic changes and their performance can serve as an early indicator of economic trends. The fund's average market cap and performance metrics can provide investors with a gauge for the overall health and sentiment towards the small-cap sector.
It's also pertinent to note the impact of foreign investments in the portfolio. In times of global economic uncertainty or currency fluctuations, the fund's performance may be affected. Conversely, during periods of global economic stability and growth, such investments could be beneficial. Investors should be aware of the macroeconomic environment when considering the potential performance of the fund.
- Oldest and largest small-cap closed-end fund
- Average weekly trading volume of approximately 1,201,306 shares
- Fund's adviser has more than 50 years of small- and micro-cap investment experience
CLOSING PRICES AS OF 01/31/24 | |
NAV | 15.98 |
MKT | 14.36 |
AVERAGE ANNUAL TOTAL RETURN AS OF 01/31/24 | NAV (%) | MKT (%) |
One-Month* | -2.68 | -1.37 |
One-Year | 7.28 | 6.29 |
Three-Year | 3.10 | 3.93 |
Five-Year | 9.90 | 10.00 |
10-Year | 8.28 | 8.61 |
*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 invests primarily in securities of small-cap and 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. 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
PORTFOLIO DIAGNOSTICS | |
Average Market Cap1 | |
Weighted Average P/E2 | 15.5x |
Weighted Average P/B2 | 2.0x |
Net Assets |
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 (
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) |
Enovis Corporation | 1.5 |
Fabrinet | 1.5 |
Alamos Gold Cl. A | 1.3 |
Assured Guaranty | 1.2 |
Air Lease Cl. A | 1.1 |
SEI Investments | 1.1 |
IES Holdings | 1.1 |
MKS Instruments | 1.1 |
Ziff Davis | 1.1 |
Impinj | 1.0 |
TOP FIVE SECTORS | % OF NET ASSETS (SUBJECT TO CHANGE) |
Industrials | 24.2 |
Financials | 19.3 |
Information Technology | 16.7 |
Health Care | 10.8 |
Consumer Discretionary | 9.6 |
Recent Developments
Royce Value Trust is a closed-end diversified management investment company whose shares of Common Stock (RVT) are listed and traded on the New York Stock Exchange. Its primary investment goal is long-term capital growth, which it seeks by investing at least
Daily net asset values (NAVs) for Royce Value Trust are now available on our website and online through most ticker symbol lookup services and on broker terminals under the symbol XRVTX. For more information, please call The Royce Funds at (800) 221-4268 or visit our website at www.royceinvest.com.
An investor in Royce Value 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 Value Trust, Inc.
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