Royce Micro-Cap Trust (RMT)
20

At a Glance

Why invest in Micro-Cap Trust?

  • One of the only closed-end funds dedicated to investing in micro-cap stocks. Micro-cap stocks' market caps are less than the largest stock in the Russell Microcap® Index.
  • Core approach that combines multiple investment themes and offers wide exposure to micro-cap stocks by investing in companies with strong fundamentals and/or prospects selling at prices that Royce believes do not fully reflect these attributes.
  • Outperformed its benchmark for the 3-, 5-, 10-, 15-, 20-, 25-, 30-year, and since inception (12/14/93) periods ended 9/30/24.

As of 09/30/24

  • Micro-Cap
    Core Approach
    $845.7M
    Avg. Market Cap
  • Active Share
    96%
  • Fund
    Longevity
    30+
    Years of History
  • Domestic
    30%
    2023 Annual
    Turnover Rate
  • Daily Price 11.29+$0.05 (+0.44%) MKT $9.84-$0.06 (-0.01%)
    $554.4M
    Net Assets
  • Invest With Us

Portfolio Management

"Our task is to scour the large and diverse universe of micro-cap companies for businesses that look mispriced and underappreciated, with the caveat being that they must also have a discernible margin of safety. We are looking for stocks trading at a discount to our estimate of their worth as businesses."
—Chuck Royce

Manager Tenure

Manager Tenure

Performance

Average Annual Total Returns (%)

Outperformed Russell 2000 for the 3-Year, 5-Year, 10-Year, 15-Year, 20-Year, 30-Year and since inception (12/14/93) periods as of 09/30/24. Outpaced Russell Microcap for the Year To Date, 3-Year, 5-Year, 10-Year, 15-Year and 20-Year periods as of 09/30/24.
QTR YTD 1YR 3YR 5YR 10YR 15YR 20YR 25YR SINCE INCEPT.
(12/14/93)
RMT 6.54 10.1025.893.3812.859.2011.658.4510.8310.16
XOTCX (NAV) 4.58 9.6023.383.1013.139.6411.359.1210.6510.71
Russell 2000 9.27 11.1726.761.849.398.7810.598.498.278.83
Russell Microcap 8.29 7.3824.63-3.748.457.299.356.83N/AN/A
OCT YTD 1YR 3YR 5YR 10YR 15YR 20YR 25YR SINCE INCEPT.
(12/14/93)
RMT -3.02 6.7729.441.2012.088.6012.008.0810.8310.02
XOTCX (NAV) -2.21 7.1728.750.8812.358.8211.608.9610.6210.60
Russell 2000 -1.44 9.5634.07-0.058.507.9411.008.308.198.75
Russell Microcap 0.68 8.1135.24-4.228.056.7210.126.80N/AN/A
NOV YTD 1YR 3YR 5YR 10YR 15YR 20YR 25YR SINCE INCEPT.
(12/14/93)
RMT 5.58 12.7327.212.4712.919.3012.308.1410.8410.19
XOTCX (NAV) 6.51 14.1528.362.3913.459.6411.889.0410.5710.80
Russell 2000 N/A N/AN/AN/AN/AN/AN/AN/AN/AN/A
Russell Microcap N/A N/AN/AN/AN/AN/AN/AN/AN/AN/A

Important Performance and Expense Information

All performance information reflects past performance, is presented on a total return basis, net of the Fund's investment advisory fee, and reflects the reinvestment of distributions. Past performance is no guarantee of future results Current performance may be higher or lower than performance quoted. Returns as of the recent month-end may be obtained at www.royceinvest.com. The market price of the Fund's shares will fluctuate, so that shares may be worth more or less than their original cost when sold.

The Fund normally invests in micro-cap companies, which may involve considerably more risk than investing in larger-cap companies. The Fund's broadly diversified portfolio does not ensure a profit or guarantee against loss.

Rolling Returns

On a monthly basis, the Fund outperformed the Russell 2000 in 68% of all 10-Year periods; 56% of all 5-Year periods; and 64% of all 1-Year periods.

For 98% of the periods, 10-year average annual total returns were greater than 5%.

Relative Returns: Monthly Rolling Average Annual Return Periods 25 Years Through 09/30/24

periods beating
the index(%)		 fund
avg(%)		 index
avg(%)
10-year
123/181
 68 9.3 8.6
5-year
135/241
 56 10.1 8.6
1-year
186/289
 64 12.5 9.4

Absolute Returns: 10-Year Monthly Rolling Return PeriodsNumber of 10-Year Average Annual Return Periods Since the Fund’s Inception

Return Range Periods % in Range
> 10% 115 46
> 5% and ≤ 10% 130 52
> 0% and ≤ 5% 5 2
≤ 0% 0 0

The Fund averaged a 10.3% return over all 250 10-year monthly rolling return periods.

Market Cycle Performance

The Fund outperformed the Russell 2000 from the 11/8/21 index peak through current (9/30/24) and in one of the two previous full market cycle periods.
Peak-Peak - 06/23/15 - 08/31/18
Micro-Cap Trust39.9%
Russell 200040.4%

Peak-Peak - 08/31/18 - 11/08/21
Micro-Cap Trust64.2%
Russell 200046.2%

Peak-Current - 11/08/21 - 09/30/24
Micro-Cap Trust-0.9%
Russell 2000-4.7%

Royce defines market cycles as those that have retreated at least 15% from a previous market peak and have rebounded to establish a new peak above the previous one. 

Royce defines market cycles as those that have retreated at least 15% from a previous market peak and have rebounded to establish a new peak above the previous one. 

Calendar Year Total Returns (%)

 

Growth of Investment

Value of $10,000 invested between 12/14/93 and 09/30/24

Micro-Cap Trust$229,413.89
Russell 2000$135,340.58

Market Price Performance History

Risk

Down Market Performance Comparisonas of 09/30/24

The Fund outperformed the Russell 2000 during six out of eight downturns of 15% or more from the index’s prior historical high since the Fund’s inception.

Market Downturns (%)

DownMarketImg
Outperformed in 11 out of 17 down quarters.

Russell 2000 Down Quarters

QUARTER ENDRUSSELL 2000 (%)MICRO-CAP TRUST (%)SPREAD (%)
06/30/24-3.3+0.2+3.5
09/30/23-5.1-2.7+2.4
09/30/22-2.2-2.3-0.1
06/30/22-17.2-17.9-0.7
03/31/22-7.5-7.4+0.1
09/30/21-4.4-4.6-0.2
03/31/20-30.6-29.1+1.5
09/30/19-2.4-1.9+0.5
12/31/18-20.2-19.8+0.4
03/31/18-0.1+0.6+0.7
03/31/16-1.5+0.1+1.6
09/30/15-11.9-13.8-1.9
09/30/14-7.4-7.1+0.3
06/30/12-3.5-4.4-0.9
09/30/11-21.9-20.8+1.1
06/30/11-1.6-3.2-1.6
06/30/10-9.9-8.9+1.0

Long Term Risk Measurementas of 09/30/24

Over the past 10 years, the Fund outperformed the Russell 2000 Index with lower volatility.
Over the past 5 years, the Fund outperformed the Russell 2000 Index.
Over the past 3 years, the Fund outperformed the Russell 2000 Index with lower volatility.
From the Fund's inception, the Fund outperformed the Russell 2000 Index with lower volatility.

Go to Relative Risk Spectrum Tool

Morningstar Statistical Measures as of 09/30/24

Sharpe RatioStandard Deviation
Micro-Cap Trust0.4720.27
Russell 20000.4320.35
Category MedianN/AN/A

Sharpe Ratio Standard Deviation
Micro-Cap Trust
Russell 2000
Category Median
Best Quartile Breakpoint

Composition

Morningstar Style Map™as of 06/30/24

mstar-XOTCX

The Morningstar Style Map is the Morningstar Style Box™ with the center 75% of fund holdings plotted as the Morningstar Ownership Zone™. The Morningstar Style Box is designed to reveal a fund's investment strategy. The Morningstar Ownership Zone provides detail about a portfolio's investment style by showing the range of stock sizes and styles. The Ownership Zone is derived by plotting each stock in the portfolio within the proprietary Morningstar Style Box. The shaded area represents the center 75% of the Fund's assets while the plot point in the middle represents the weighted average of its holdings. Over time, the shape and location of a fund's ownership zone may vary.

Portfolio Diagnosticsas of 09/30/24

  XOTCX Russell 2000
Average Market Cap
845.7M
2.63B
Market Price
$9.61
-
Net Asset Value
$10.84
-
Active Share
96%
-
2023 Portfolio Turnover
30%
-
Weighted Average P/B,
2.1x
2.1x
U.S. Investments (% of Net Assets)
74.1%
-
Non-U.S. Investments (% of Net Assets)
23.6%
-

Portfolio Allocation

  • Total
    Holdings
    222

Top 200 holdings represented 99% of the Fund's equity investments as of 09/30/24.

SECTORS		XOTCX (%) RUSSELL
2000 (%)
Information Technology
24.4
12.8
Industrials
22.6
17.0
Financials
14.8
18.1
Health Care
11.4
17.5
Materials
7.5
4.5
Consumer Discretionary
6.3
10.0
Energy
4.4
5.3
Communication Services
3.5
2.7
Real Estate
2.0
6.4
Consumer Staples
0.5
2.8
Utilities
0.2
2.8
Bonds & Preferreds
0.0
-
Cash and Cash Equivalents, Net of Outstanding Line of Credit
2.3
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Transcat
3.2
PAR Technology
2.7
Mesa Laboratories
2.4
Sprott
2.3
Aspen Aerogels
2.1
IES Holdings
1.9
Cellebrite DI
1.9
Major Drilling Group International
1.7
Computer Modelling Group
1.6
Richardson Electronics
1.5
nLIGHT
1.3
BioLife Solutions
1.3
EVI Industries
1.2
Camtek
1.2
IMAX Corporation
1.2
Nova
1.2
Onto Innovation
1.2
Bristow Group
1.1
Powerfleet
1.1
Lindsay Corporation
1.1
Top 20 as % of Net Assets
33.2

SECTORS		XOTCX (%) RUSSELL
2000 (%)
Information Technology
23.8
-
Industrials
22.8
-
Financials
15.7
-
Health Care
11.4
-
Materials
6.0
-
Consumer Discretionary
5.0
-
Energy
4.5
-
Communication Services
3.5
-
Real Estate
1.6
-
Consumer Staples
0.8
-
Utilities
0.2
-
Cash and Cash Equivalents, Net of Outstanding Line of Credit
4.6
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Sprott
2.1
PAR Technology
1.9
Transcat
1.8
Richardson Electronics
1.7
nLIGHT
1.5
Mesa Laboratories
1.5
Major Drilling Group International
1.3
BioLife Solutions
1.3
Computer Modelling Group
1.2
Cellebrite DI
1.1
IMAX Corporation
1.1
Lindblad Expeditions Holdings
1.1
Universal Technical Institute
1.1
Lindsay Corporation
1.1
Distribution Solutions Group
1.1
Nova
1.1
Onto Innovation
1.0
Powerfleet
1.0
IES Holdings
1.0
Silvercrest Asset Management Group Cl. A
1.0
Top 20 as % of Net Assets
26.0

Portfolio Holdings

Unaudited schedules of portfolio holdings are presented for informational purposes only.

View the complete list of holdings (unaudited) for this fund as of the previous quarter-end: 09/30/24.

Geographical Breakdown

Distributions

NAV & Distributions


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Distributions

RECORD
DATE		 EX-DATE PAYABLE
DATE		 INCOME ($) SHORT
TERM
GAINS ($)		 LONG
TERM
GAINS ($)		 RETURN OF
CAPITAL ($)		 TOTAL ($) REINVEST
PRICE ($)
09/13/24 09/13/24 09/23/24 EST 0.0000 EST 0.0390 EST 0.1228 EST 0.0182 0.1800 9.56
06/13/24 06/13/24 06/24/24 EST 0.0000 EST 0.0390 EST 0.1228 EST 0.0182 0.1800 9.11
03/11/24 03/08/24 03/22/24 EST 0.0000 EST 0.0369 EST 0.1160 EST 0.0172 0.1700 9.01
12/11/23 12/08/23 12/22/23 0.0000 0.0468 0.1732 0.0000 0.2200 8.92
09/11/23 09/08/23 09/22/23 0.0000 0.0362 0.1338 0.0000 0.1700 8.50
06/12/23 06/09/23 06/23/23 0.0000 0.0362 0.1338 0.0000 0.1700 8.69
03/13/23 03/10/23 03/24/23 0.0000 0.0383 0.1417 0.0000 0.1800 8.42
12/12/22 12/09/22 12/23/22 0.0159 0.0068 0.2573 0.0000 0.2800 8.63
09/12/22 09/09/22 09/23/22 0.0119 0.0051 0.1930 0.0000 0.2100 8.54
06/13/22 06/10/22 06/24/22 0.0131 0.0056 0.2114 0.0000 0.2300 8.29
03/11/22 03/10/22 03/24/22 0.0131 0.0056 0.2114 0.0000 0.2300 10.49
12/13/21 12/10/21 12/23/21 0.0000 0.0371 0.2429 0.0000 0.2800 10.82
09/13/21 09/10/21 09/24/21 0.0000 0.0279 0.1821 0.0000 0.2100 11.34
06/11/21 06/10/21 06/25/21 0.0000 0.0252 0.1648 0.0000 0.1900 12.03
03/11/21 03/10/21 03/24/21 0.0000 0.0212 0.1388 0.0000 0.1600 11.77
12/11/20 12/10/20 12/24/20 0.0200 0.0213 0.1087 0.0000 0.1500 10.00
09/11/20 09/10/20 09/25/20 0.0200 0.0213 0.1087 0.0000 0.1500 7.92
06/11/20 06/10/20 06/25/20 0.0200 0.0213 0.1087 0.0000 0.1500 7.10
03/12/20 03/11/20 03/24/20 0.0213 0.0227 0.1160 0.0000 0.1600 4.80
12/12/19 12/11/19 12/27/19 0.0064 0.0100 0.1436 0.0000 0.1600 8.39
09/13/19 09/12/19 09/26/19 0.0069 0.0106 0.1526 0.0000 0.1700 8.23
06/13/19 06/12/19 06/24/19 0.0069 0.0106 0.1526 0.0000 0.1700 8.14
03/11/19 03/08/19 03/22/19 0.0073 0.0112 0.1615 0.0000 0.1800 8.42
12/13/18 12/12/18 12/27/18 0.0007 0.0111 0.1982 0.0000 0.2100 7.18
09/14/18 09/13/18 09/26/18 0.0006 0.0095 0.1699 0.0000 0.1800 10.27
06/11/18 06/08/18 06/27/18 0.0006 0.0095 0.1699 0.0000 0.1800 10.26
03/12/18 03/09/18 03/23/18 0.0006 0.0095 0.1699 0.0000 0.1800 9.51
12/13/17 12/12/17 12/27/17 0.0169 0.0245 0.1586 0.0000 0.2000 9.34
09/13/17 09/12/17 09/26/17 0.0143 0.0209 0.1348 0.0000 0.1700 8.91
06/13/17 06/09/17 06/27/17 0.0135 0.0196 0.1269 0.0000 0.1600 8.55
03/14/17 03/10/17 03/24/17 0.0135 0.0196 0.1269 0.0000 0.1600 8.11
12/13/16 12/09/16 12/27/16 0.0201 0.0157 0.1242 0.0000 0.1600 8.22
09/13/16 09/09/16 09/26/16 0.0189 0.0147 0.1164 0.0000 0.1500 7.59
06/13/16 06/09/16 06/27/16 0.0201 0.0157 0.1242 0.0000 0.1600 7.36
03/14/16 03/10/16 03/24/16 0.0214 0.0167 0.1319 0.0000 0.1700 6.98
12/14/15 12/10/15 12/28/15 0.0055 0.0986 0.5058 0.0000 0.6100 7.13
09/14/15 09/10/15 09/25/15 0.0018 0.0323 0.1658 0.0000 0.2000 8.01
06/15/15 06/11/15 06/26/15 0.0020 0.0356 0.1824 0.0000 0.2200 9.46
03/13/15 03/11/15 03/25/15 0.0021 0.0372 0.1907 0.0000 0.2300 9.73
12/15/14 12/11/14 12/26/14 0.0324 0.3352 1.8225 0.0000 2.1900 10.08
09/15/14 09/11/14 09/26/14 0.0035 0.0367 0.1997 0.0000 0.2400 11.75
06/16/14 06/12/14 06/27/14 0.0035 0.0367 0.1997 0.0000 0.2400 12.45
03/13/14 03/11/14 03/25/14 0.0034 0.0352 0.1914 0.0000 0.2300 12.53
12/13/13 12/11/13 12/27/13 0.0222 0.1774 0.7704 0.0000 0.9700 12.29
09/16/13 09/12/13 09/27/13 0.0032 0.0256 0.1112 0.0000 0.1400 11.66
06/14/13 06/12/13 06/27/13 0.0032 0.0256 0.1112 0.0000 0.1400 10.68
03/06/13 03/04/13 03/25/13 0.0030 0.0238 0.1032 0.0000 0.1300 10.60
12/06/12 12/04/12 12/24/12 0.0212 0.0324 0.0764 0.0000 0.1300 9.09
09/06/12 09/04/12 09/24/12 0.0196 0.0299 0.0705 0.0000 0.1200 9.25
06/06/12 06/04/12 06/25/12 0.0212 0.0324 0.0764 0.0000 0.1300 8.61
03/06/12 03/02/12 03/23/12 0.0212 0.0324 0.0764 0.0000 0.1300 9.31
12/06/11 12/02/11 12/23/11 0.0143 0.0000 0.0637 0.0620 0.1400 8.38
09/06/11 09/01/11 09/23/11 0.0143 0.0000 0.0637 0.0620 0.1400 8.19
06/06/11 06/02/11 06/23/11 0.0133 0.0000 0.0592 0.0575 0.1300 9.24
03/07/11 03/03/11 03/23/11 0.0123 0.0000 0.0546 0.0531 0.1200 9.67
12/06/10 12/02/10 12/23/10 0.0630 - 0.0170 - 0.0800 9.40
03/06/09 03/04/09 03/23/09 0.0000 0.0000 0.0000 0.2200 0.2200 4.26

NAV History for

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Fees & Expenses

Annual Fund Operating Expenses (%)

(expenses that you pay each year as a percentage of the value of your investment)

Management fees 1.47
Other expenses 0.29
Total annual Fund operating expenses 1.76

Important Disclosure Information

The Fund is a closed-end registered investment company whose shares of common stock may trade at a discount to their net asset value. Shares of the Fund's common stock are also subject to the market risks of investing in the underlying portfolio securities held by the Fund.

Sector weightings are determined using the Global Industry Classification Standard ("GICS"). GICS was developed by, and is the exclusive property of, Standard & Poor's Financial Services LLC ("S&P") and MSCI Inc. ("MSCI"). GICS is the trademark of S&P and MSCI. "Global Industry Classification Standard (GICS)" and "GICS Direct" are service marks of S&P and MSCI.

The Price-Earnings, or P/E, Ratio is calculated by dividing a company's share price by its trailing 12-month earnings-per-share (EPS). The Portfolio's P/E ratio calculation excludes cash holdings and companies with zero or negative earnings. The Price-to-Book, or P/B, Ratio is calculated by dividing a company's share price by its book value per share. Standard deviation is a statistical measure within which a client account’s total returns have varied over time. The greater the standard deviation, the greater a portfolio’s volatility.
Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and/or Russell ratings or underlying data and no party may rely on any Russell Indexes and/or Russell ratings and/or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell’s express written consent. Russell does not promote, sponsor or endorse the content of this communication. Source: MSCI.  MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein.  The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products.  This report is not approved, endorsed, reviewed or produced by MSCI. None of the MSCI data is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. The Russell 2000 is an unmanaged, capitalization-weighted index of domestic small-cap stocks. It measures the performance of the 2,000 smallest publicly traded U.S. companies in the Russell 3000 index.  The Russell Microcap Index includes 1,000 of the smallest securities in the small-cap Russell 2000 Index, along with the next smallest eligible securities as determined by Russell. The performance of an index does not represent exactly any particular investment, as you cannot invest directly in an index.

† Jim Stoeffel lead manager since 2015 (co-manager 2015), assistant Andrew Palen since 2024 

12/14/1993 12:00:00 AM

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