#USA #New York #investment growth #Royce Small-Cap Trust #Closed-End Fund

Royce Small-Cap Trust: A Pioneer in Closed-End Funds

Royce Small-Cap Trust (NYSE: RVT) stands out as the oldest and largest closed-end fund focusing on small-cap investments. As of January 31, 2025, this fund has garnered significant attention in the investment community due to its strategic approach to achieving long-term capital growth.

Fund Performance Overview

The performance metrics for Royce Small-Cap Trust are promising and reflect its robust management practices. For instance, the fund’s Net Asset Value (NAV) stood at $17.36, while its market value was slightly lower at $16.28. When it comes to returns, the fund has demonstrated noteworthy figures:

• - One-Month Return: NAV at 2.18% and Market at 3.04%
• - One-Year Return: NAV at 18.26% and Market at 23.41%
• - Three-Year Return: NAV at 6.63% and Market at 5.83%
• - Five-Year Return: NAV at 10.79% and Market at 11.67%
• - Ten-Year Return: NAV at 10.14% and Market at 10.67%

These results indicate that investing in Royce Small-Cap Trust has been beneficial for investors, particularly over longer time frames.

Investment Strategy and Focus

Royce Small-Cap Trust specializes in securities of small-cap and micro-cap companies, an investment style that can present additional risks compared to larger-cap firms. Despite these risks, the fund’s strategy is centered around broad diversification, aiming to mitigate potential losses. As of now, the fund’s total net assets amount to $2.04 billion with an average market capitalization of approximately $3.13 billion. Furthermore, the fund manager's experience spans over 50 years, underlining the expertise behind the investment decisions.

The portfolio displays an average Price-to-Earnings (P/E) ratio of 17.5x and an average Price-to-Book (P/B) ratio of 2.2x. Such ratios emphasize the assessment of value in the investments made, offering insights into the expected performance relative to other market segments.

Top Holdings and Sector Allocation

The Trust’s portfolio is consistently evolving, with the top positions often reflecting critical industries. Here are the top ten positions as of January 31, 2025:
1. Assured Guaranty - 1.6% of net assets
2. PAR Technology - 1.4%
3. SEI Investments - 1.4%
4. IES Holdings - 1.3%
5. Enovis Corporation - 1.0%
6. E-L Financial - 1.0%
7. Brady Corporation Cl. A - 1.0%
8. Arcosa - 1.0%
9. Alamos Gold Cl. A - 1.0%
10. Air Lease Cl. A - 0.9%

The fund’s sector allocations also provide an interesting perspective; it is heavily invested in various areas:

• - Industrials: 22.7%
• - Financials: 22.4%
• - Information Technology: 16.6%
• - Health Care: 9.7%
• - Consumer Discretionary: 9.1%

Conclusion

Royce Small-Cap Trust continues to be a significant player in the closed-end fund marketplace, primarily due to its strong historical performance and strategic focus on small-cap investments. Investors should consider their investment goals, risks, and expenses when thinking about adding this fund to their portfolio. The fund is traded on the New York Stock Exchange under the symbol RVT.

For investors interested in exploring more about Royce Small-Cap Trust, daily NAV updates and more information are available on the Royce Funds website. Always engage in careful consideration before making investment decisions, as past performance is not always indicative of future results.