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royce small cap trust inc elevates shareholders with strategic quarterly distribution 27

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Royce Small-Cap Trust, Inc. Elevates Shareholders with Strategic Quarterly Distribution

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Leo Gonzalez

June 3, 2024 - 18:29 pm

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Royce Small-Cap Trust, Inc. Announces Quarterly Distribution and Provides Insight on Performance Statistics

NEW YORK, June 3, 2024 /PRNewswire/ -- The investment community observed a significant development today as Royce Small-Cap Trust, Inc. (NYSE-RVT), a noteworthy player in the small-cap investment arena, publicized a decisive quarterly distribution. Shareholders are set to receive a substantial sum of $0.28 per share on the Common Stock. Interestingly, this distribution is flexible: shareholders can opt for additional shares of Common Stock or receive a cash payment, based on their preference. The allocation of payments will fall due on June 24, 2024, to stockholders officially recorded at the tight of business on June 13, 2024; consequently, the ex-dividend date is also June 13, 2024. It's important to highlight that the pricing involved in the reinvestment will be determined closer to the payment date on June 20, 2024.

Quarterly Distributions: Royce’s Way of Saying Thanks

The Fund has remained consistent in its commitment to shareholders through its Distribution Policy, which ensures quarterly distributions on its Common Stock are maintained. Intriguingly, the distributions reflect an ambitious annual rate of 7% derived from the average net asset values (NAVs) calculated at the end of the rolling four calendar quarters, with a noteworthy mention—the fourth quarter distribution is the proverbial cherry on top, being the larger of either 1.75% of the rolling average or the statutory minimum as mandated by IRS regulations. It's paramount to bring attention to the fact that this proliferate policy, including the determination of the annual rate, is subject to modification should the Fund's Board of Directors elect to do so.

Decoding the Estimated Distribution Sources

As we look ahead to the distribution set for June 24, 2024, the Fund provides a detailed overview of the estimated sources for this payment and for the accumulative figures for the year-to-date (up until May 31, 2024).

Breakdown of the June 24, 2024, Estimated Allocations:

  • Net Investment Income: $0.0090, which translates to 3%.
  • Net Realized Short-Term Gains: $0.0558, or 20% of the distribution.
  • Net Realized Long-Term Gains: $0.2152, representing a significant 77%.
  • Return of Capital: $0.00, effectively 0%, showcasing that the distribution fully stems from income and realized gains.

Year-to-Date Allocations as of May 31, 2024:

  • Aggregate Distribution Per Share: $0.55.
  • Net Investment Income Contribution: $0.0177 (3%).
  • Net Realized Short-Term Gains: $0.1097 (20%).
  • Net Realized Long-Term Gains: $0.4226 (77%).
  • Return of Capital: $0.00 (0%).

This transparent breakdown proffers a comprehensive perspective on the Fund’s allocation approach but should not be mistaken as an indicator of the Fund's investment performance.

Caution Before Conclusion

The Fund's announcement underscores that the current distribution amount and the terms of the Fund's Distribution Policy should not be used to infer its investment performance. The figures stated are merely estimates and are not meant for tax reporting purposes. The eventual amounts and sources for tax reporting will greatly depend on how the Fund's investment yields fair later in this fiscal year, and may also be susceptible to regulatory changes in tax laws. Shareholders should expect to receive a Form 1099-DIV at the end of the calendar year for precise federal income tax reporting instructions.

Unveiling Fund Performance and Distribution Figures

An observation of the Fund's distribution numbers and performance metrics offers an illuminative understanding of its standing. Here’s a snapshot encapsulating the Fund’s achievements and distribution strategy:

Key Performance and Distribution Metrics:

  • RVT's Average Annual Total Return in relation to NAV over the last five years ending on May 31, 2024, is an impressive 11.93%.
  • The Annualized Current Distribution Rate, as a measure against the NAV as of May 31, 2024, stands at 6.54%.
  • Cumulative Total Return accounting for the change in NAV from December 31, 2023, to May 31, 2024, is 6.31%, considering distributions are reinvested.
  • Cumulative Fiscal Year Distribution Rate, as pertaining to the period from January 1, 2024, to May 31, 2024, relative to the NAV is calculated at 3.21%.

These statistics not only emphasize the Fund's robust return on net asset value but also the generous distribution policy in place.

In-depth Dive into Fund Returns:

Royce Small-Cap Trust makes it clear for investors— the Average Annual Total Return is the compound average of the Fund's annual NAV total returns for the five-year stint that terminates on May 31, 2024. This figure is an important metric as it accounts for the change in the Fund's NAV over a year, post the reinvestment of distributed payments. Moreover, the Annualized Current Distribution Rate mirrors the distribution rate for the present fiscal period and is expressed as a percentage of the Fund's NAV logged on May 31, 2024.

Furthermore, the Cumulative Total Return offers a broader viewpoint, detailing the percentage shift in the Fund's NAV from the finale of the last calendar year to May 31, 2024, inclusive of reinvested distributions. The Cumulative Fiscal Year Distribution Rate gives an understanding of the distribution value during the fiscal period, benchmarked as a percentage of the Fund's NAV as of May 31, 2024.

Royce Small-Cap Trust, Inc.: A Focus on Long-Term Capital Growth

Engulfed within its strategic framework, Royce Small-Cap Trust, Inc., illustriously enlisted and actively trading on the New York Stock Exchange (NYSE), is dedicated to achieving long-term capital growth for its shareholders. From May 1, 2024, the Fund has focused steadfastly on investing no less than 80% of its net assets in equity securities belonging to small-cap firms, particularly those with a market capitalization not exceeding the size of the largest entity within the renowned Russell 2000® Index at the time of the index’s most recent reconstitution.

This strategic investment philosophy endorses the Fund's commitment to targeting growth opportunities within the small-cap market, a sphere known for its potential to offer dynamic expansion prospects and investment excitement.

  • Word Guardrails: Read Royce & Associates' Official Release For shareholders and investors looking for official information and in-depth details, Royce & Associates has made the original press release available here.

With this round of financial disclosures and strategic insights, Royce Small-Cap Trust, Inc. maintains its transparent dialogue with investors, staying true to its goal of fostering both candor and financial growth. The outlook for future distributions and investment performance continues to be closely observed by those vested in the Fund’s potential. For additional information, shareholders and interested parties are keenly encouraged to read the release provided by Royce & Associates for a comprehensive understanding of the Fund's strategic pathways and financial distributions.