Royce Micro-Cap Trust Announces Quarterly Distribution for Shareholders

Royce Micro-Cap Trust, Inc., listed on the New York Stock Exchange under the ticker symbol RMT, recently declared a third-quarter distribution of $0.18 per share on its common stock. This decision reflects the Fund's commitment to providing returns to its shareholders. The distribution will be payable on September 25, 2025, to those shareholders recorded as of the close of business on September 12, 2025. Interestingly, shareholders also have the option to receive their distribution in either additional shares of common stock or cash based on their preference.

The price per share for the reinvestment plan will be determined on September 19, 2025. This approach allows shareholders to opt for a strategy that aligns best with their investment goals. By reinvesting their dividends back into the Fund, shareholders may potentially capitalize on the compounding growth of their investments.

Royce Micro-Cap Trust has established a distribution policy that emphasizes quarterly payouts based on a fixed annual rate, targeting 7% of the rolling average of the prior four calendar quarter-end net asset values (NAVs). This rate assures investors of a stable income stream while promoting the long-term growth of their investments.

The distribution for this quarter comprises a 100% return of capital, indicating that the payout stems wholly from the capital contributions rather than income generated from investments. It's worth noting that such distributions are not necessarily reflective of the Fund's ongoing investment performance, and investors are encouraged to consider the broader investment landscape when evaluating their returns.

As of August 31, 2025, the estimated allocations for the quarter ends in terms of net investment income, short and long-term gains, and capital return, all culminate in the declared distribution. Investors have been updated about the estimated sources of this distribution, reinforcing Royce Micro-Cap Trust’s transparent approach in investor communication.

Performance Insights

According to reports, Royce Micro-Cap Trust achieved an average annual total return of 12.70% over the last five years up to August 31, 2025. The annualized current distribution rate stands at 6.24%, showcasing the Fund's sustainability and its historical performance in delivering value to shareholders. The cumulative total return for the current fiscal year, calculated up to the same date, has been around 9.64%, with a fiscal year distribution rate of 4.77%, reflecting the Fund's focus on micro-cap companies.

Investing in micro-cap companies, those defined by a market capitalization smaller than the largest entity within the Russell Microcap Index, remains the cornerstone of Royce Micro-Cap Trust's investment strategy. This segment is often characterized by higher volatility but also the potential for significant growth.

Conclusion

As the Fund moves forward, both potential and existing investors are encouraged to stay informed about trends affecting micro-cap investments and to consider the implications of distributions on their overall investment strategy. The quarterly distribution of $0.18 per share is not only a testament to Royce Micro-Cap Trust's investment philosophy but also a critical factor in attracting new investors looking for consistent cash flow coupled with the potential for capital appreciation.

For those interested in long-term investment opportunities, Royce Micro-Cap Trust, Inc. consistently aims to balance risk and return through its focused investment strategy in micro-cap equities. Shareholders can look forward to the upcoming distribution while remaining vigilant about market conditions and tax implications that might affect their holdings.