Insights on Royce Small-Cap Trust (NYSE: RVT)
As of May 31, 2025,
Royce Small-Cap Trust has showcased intriguing performance metrics that merit examination. This closed-end fund, which is well-established and focuses on small-cap investments, provides investors with unique opportunities in the stock market, particularly during fluctuating economic times.
Fund Overview
The Royce Small-Cap Trust has been a notable player in the investment field for its commitment to small-cap companies, investing at least 65% of its assets in equity securities primarily from small- and micro-cap sectors. Its shares trade on the
New York Stock Exchange under the symbol RVT. The Fund reported a closing
Net Asset Value (NAV) of
$16.33 and a market value of
$14.86 as of the end of May 2025.
Performance Review
The performance returns indicate a mixed bag depending on the metric evaluated:
- - One-Month Return: NAV increased by 6.80%, while the market saw a smaller rise of 6.52%.
- - Year-to-Date Results: The NAV reflected a decline of -1.91%, contrasting with a greater dip in market performance at -4.01%.
- - Annual Returns: Over the last year, the fund has seen a growth of 3.93% in NAV and 8.59% in market value.
Long-term performance figures reveal a favorable position for investors, with the five-year annualized return reaching
12.02% (NAV) and
13.18% (market value). Notably, the ten-year averages stand at
8.96% (NAV) and
9.45% (market), showcasing the trust's capacity for sustainable growth over time.
Portfolio Composition
As of the latest data, Royce Small-Cap Trust has total net assets of
$1.94 billion, with an average market capitalization of participating companies around
$2.96 billion.
The fund's
weighted average Price-to-Earnings (P/E) ratio is
17.6x, indicating a valuation that reflects potential growth against the risk of investing in smaller firms. Further scrutiny reveals a
weighted average Price-to-Book (P/B) ratio of
2.0x, offering a glimpse into the investment valuation compared to book value.
Top Sectors: The trust primarily invests in several sectors, with the latest allocations being:
- - Industrials: 23.8%
- - Financials: 23.5%
- - Information Technology: 14.1%
- - Health Care: 10.1%
- - Consumer Discretionary: 9.5%
Their top ten positions are diversified, with IES Holdings and Assured Guaranty leading the pack.
Investment Strategy
The investment approach of Royce Small-Cap Trust is particularly appealing given its long history of navigating the complexities of the financial landscape. The adviser team’s expertise, spanning across 50 years in the field, lends a reliable hand in selecting investment opportunities that may yield substantial growth. Investing in small-cap companies, while riskier, allows the fund to tap into undervalued markets and seek higher returns.
Conclusion
Investors should be intricately aware of potential risks alongside the compelling investment case presented by Royce Small-Cap Trust. With economic uncertainties ahead, maintaining a diversified strategy focused on small and micro-cap enterprises may yield desirable long-term results.
Royce Small-Cap Trust continues to evolve, adapting its approach to meet the ever-changing market dynamics. For more specifics on performance and investments, potential investors are encouraged to visit
Royce Investment's website.
Remember, past performance does not guarantee future success—conduct thorough research before investing in any fund.