#United States #New York #Royce Micro-Cap Trust #RMT #micro-cap investing

Royce Micro-Cap Trust Update as of February 28, 2025

The Royce Micro-Cap Trust (NYSE: RMT), a key player in the micro-cap investment realm, reported some compelling metrics for the closing price as of February 28, 2025. With an average weekly trading volume reaching approximately 515,632 shares, the trust illustrates an active investor interest, reflecting its solid standing in the market.

Overview of Performance

The trust's recent performance metrics signify its ongoing commitment to delivering value to investors. As of the end of February 2025, the Net Asset Value (NAV) stood at $10.47 per share, while the market price was slightly lower at $9.29 per share. Despite market fluctuations, the Royce Micro-Cap Trust continues to demonstrate resilience with notable annual returns.

Total Returns

Breaking down the effectiveness of investments, here are key figures narrating the trust's performance:

• - One-Month Total Return: -6.27% (NAV), -6.16% (Market)
• - Year-to-Date Total Return: -4.64% (NAV), -4.72% (Market)
• - One-Year Total Return: 7.18% (NAV), 7.73% (Market)
• - Three-Year Total Return: 5.49% (NAV), 5.40% (Market)
• - Five-Year Total Return: 12.77% (NAV), 12.81% (Market)
• - Ten-Year Total Return: 8.82% (NAV), 8.77% (Market)

Notably, these returns are not annualized, reflecting the fund's performance over varying timeframes. While past results cannot guarantee future performance, the figures nonetheless reveal a consistent growth trajectory, resonating with the trust's strategic investment approach focused on micro-cap companies.

Investment Philosophy

With over 50 years dedicated to small- and micro-cap investments, Royce Micro-Cap Trust leans heavily on its seasoned adviser's expertise. The trust aims for long-term capital growth primarily by investing in equities of companies that boast a market capitalization of $1 billion or less. This strategy seeks to capitalize on the potential for dramatic growth within the micro-cap sector.

The investment philosophy embraces a broad diversification strategy; however, investors are reminded that investing in smaller companies carries a heightened level of risk compared to their larger-cap counterparts. Such investments often experience significant volatility, which could lead to either steep gains or losses.

Portfolio Composition

The composition of Royce Micro-Cap Trust’s portfolio showcases its inclination towards diverse sectors:

• - Top Five Sectors:

- Industrials: 23.2%
- Information Technology: 21.9%
- Financials: 16.9%
- Health Care: 12.4%
- Consumer Discretionary: 7.8%

According to their latest reports, the average market capitalization of the underlying holdings is $746.1 million, complemented by a weighted average price-to-book (P/B) ratio of 1.9x, reflecting an ongoing commitment to evaluating investments wisely.

Noteworthy Holdings

The top ten positions in the trust’s portfolio, subject to change, highlight the diversity and potential across sectors:

• - Universal Technical Institute: 1.7%
• - Richardson Electronics: 1.6%
• - Sprott: 1.5%
• - Transcat: 1.3%
• - EZCORP Cl. A: 1.3%
• - Mesa Laboratories: 1.3%
• - BioLife Solutions: 1.3%
• - Major Drilling Group International: 1.2%
• - Lindsay Corporation: 1.2%
• - Powerfleet: 1.2%

Looking Ahead

As Royce Micro-Cap Trust embarks on the next chapter of its investment journey, it remains focused on its core philosophy geared towards cultivating long-term growth in micro-cap investments. Daily net asset values (NAVs) now allow investors to remain updated on their investment status, promoting transparency within its operations.

For those considering an investment in Royce Micro-Cap Trust or evaluating their existing investment strategies, detailed information is available through their website at www.royceinvest.com or by reaching out directly at (800) 221-4268.

In conclusion, investors are advised to review the fund’s objectives, risks, fees, and expenses closely before making investment decisions to ensure their strategies resonate with the potential risks and rewards tied to micro-cap investing.