#USA #New York #Royce Micro-Cap Trust #RMT #small-cap investment

Royce Micro-Cap Trust Update

As of November 30, 2024, Royce Micro-Cap Trust (NYSE: RMT) has reported an average weekly trading volume of approximately 529,390 shares. This statistic highlights the increasing interest and confidence among investors in micro-cap equities, which are often perceived as higher-risk investments but can yield substantial returns over time.

Strong Performance Metrics

The fund is advised by a team with over 50 years of experience in small- and micro-cap investments. As of the end of November, the trust has demonstrated impressive returns:

• - One-Month NAV: 11.32%
• - Year to Date NAV: 19.30%
• - One-Year NAV: 32.77%

These figures indicate a strong upward trajectory, particularly in the one-year return, which suggests that the fund is effectively navigating the nuances of the micro-cap market.

Closing Prices

At the close of trading on November 30, the net asset value (NAV) was recorded at $11.80, whereas the market price stood at $10.32. This disparity illustrates a common phenomenon seen in closed-end funds where market prices can fluctuate in relation to their NAV.

Portfolio Overview

The portfolio is heavily diversified, focusing on companies with a market capitalization of $1 billion or less. The fund's objective remains long-term capital growth. Presently, the average market capitalization of its holdings is approximately $854.6 million, with a weighted average price-to-book (P/B) ratio of 2.2x. The fund boasts net assets totaling $603.1 million, further emphasizing its robust financial health.

Top Holdings

In terms of individual positions, the top ten companies held represent a diverse range of sectors:

• - Transcat (1.8%)
• - Sprott (1.7%)
• - PAR Technology (1.6%)
• - Additional notable holdings include Richardson Electronics, Universal Technical Institute, and Applied Optoelectronics. Each of these companies shows potential for growth, reflecting Royce’s strategic approach to investment.

Sector Allocation

The trust exhibits a balanced sector distribution, with significant allocations in:

• - Information Technology (23.3%)
• - Industrials (23.3%)
• - Financials (16.1%)
• - Health Care (11.8%)

This strategic allocation aids in mitigating risk across the portfolio while targeting sectors poised for growth.

Closing Thoughts

Investors considering Royce Micro-Cap Trust should evaluate their investment goals alongside the inherent risks associated with micro-cap companies. The diverse portfolio and extensive market experience of its management team are significant factors to consider. For those interested in exploring further, the latest daily net asset values (NAVs) can be accessed online. Always remember that past performance is not indicative of future results, and investment decisions should be made carefully, accounting for all associated risks, fees, and expenses.

In conclusion, with the turbidity often found in the micro-cap market, Royce Micro-Cap Trust continues to present itself as a formidable option for investors seeking exposure and potential growth in this unique investment avenue.