#USA #New York #Royce Micro-Cap #investment trust #small-cap

Royce Micro-Cap Trust: Investment Insights for 2025

As of January 31, 2025, Royce Micro-Cap Trust (NYSE: RMT) continues to demonstrate resilience and growth in the increasingly competitive investment landscape, characterized by an average trading volume of approximately 480,662 shares per week. With over five decades of expertise in small- and micro-cap investments, the fund's adviser is well-positioned to navigate its portfolio towards long-term capital growth.

Key Performance Indicators

The performance data for Royce Micro-Cap Trust is noteworthy. As of the end of January, the net asset value (NAV) stood at $11.17, while the market price was at $9.90. This pricing reflects the complex interplay of market demand and the overall valuation of micro-cap stocks, which often experience higher volatility than their larger counterparts, indicating both opportunity and risk.

The Fund’s average annual total returns reveal a positive trend across various periods:

• - One Month: NAV at 1.73%, Market at 1.54%
• - One Year: NAV at 19.19%, Market at 18.89%
• - Three Years: NAV at 7.63%, Market at 6.84%
• - Five Years: NAV at 12.72%, Market at 12.74%
• - Ten Years: NAV at 10.05%, Market at 9.94%

This historical data indicates a stable growth trajectory, reflecting the Fund's strategic focus and investment decisions.

Portfolio Composition and Strategy

The Royce Micro-Cap Trust primarily invests in companies with market capitalizations of $1 billion or less. The current portfolio showcases a diversified alignment across multiple sectors. As of January 2025, the top five sectors include:

• - Industrials: 23.2%
• - Information Technology: 22.4%
• - Financials: 15.9%
• - Health Care: 12.3%
• - Consumer Discretionary: 7.5%

Such diversification is critical in mitigating risks typically associated with micro-cap investments, allowing the fund to capitalize on sectoral growth opportunities.

The top ten positions within the fund highlight a variety of industries, with notable holdings such as:

• - Universal Technical Institute: 1.7%
• - Richardson Electronics: 1.5%
• - Sprott: 1.4%
• - BioLife Solutions: 1.3%

This cautious yet robust composition underlines the Trust’s methodology focused on identifying promising micro-cap stocks.

Risk Factors and Investment Considerations

Investing in the Royce Micro-Cap Trust comes with inherent risks, particularly attributed to its focus on smaller companies which may be more susceptible to market fluctuations compared to established larger firms. It is crucial for potential investors to deliberate on the risk-reward balance before committing funds.

Conclusion

Overall, Royce Micro-Cap Trust exemplifies a calculated approach towards small-cap investments as it targets long-term capital appreciation. As the market evolves, the Trust remains a potentially compelling option for investors interested in the niche of micro-cap stocks. Future investors are advised to review the Fund's goals, risks, fees, and performance comprehensively before making investment decisions, ensuring they align with individual financial objectives.

For more detailed insights and the latest updates, stakeholders can visit Royce Invest or contact The Royce Funds at (800) 221-4268.