Royce Closed-End Funds Suspend Managed Distribution Policy

Royce Focus Trust to Suspend Managed Distribution Policy

At a meeting held today, the Board of Directors of Royce Focus Trust approved the suspension of the Fund’s 5% quarterly distribution policy for Common Stockholders in light of current market conditions and other factors. The 5% managed quarterly distribution policy, adopted in 2004, was designed to spread capital gain distribution more evenly over the year, rather than occurring just at year-end, and the rate was set based on an historic approximate average of distributed net realized gains.

At April 30, 2009, the Fund had approximately $9 million of net realized losses and $19 million of net unrealized depreciation, for a combined 29% of the Fund’s net assets applicable to Common Stockholders.  The Fund intends the suspension to continue until such time as it can again regularly distribute net realized gains, which should occur after it has utilized the Fund’s capital loss carryforwards.  Until such time, the Fund will distribute any net investment income on an annual basis in December.

The Board believes that this decision is in the best interests of the Common Stockholders. It will allow the Fund to retain assets, which Royce & Associates, LLC, the Fund’s investment adviser, deems crucial as it seeks to continue taking advantage of what it believes are excellent opportunities in the current small-cap marketplace. The Board also considered the potentially adverse tax consequences that could occur if this policy were to continue.  In certain circumstances, returns of capital could be taxable for federal income tax purposes, and all or a portion of the Fund’s capital loss carryforwards from prior years could effectively be forfeited.

The suspension of distributions does not apply to the Preferred issues of the above common stock.

Read more on Royce Focus Trust and closed-end fund investing.

Royce Micro-Cap Trust to Suspend Managed Distribution Policy

At a meeting held today, the Board of Directors of Royce Micro-Cap Trust approved the suspension of the Fund's 9% quarterly distribution policy for Common Stockholders in light of current market conditions and other factors.  The 9% managed quarterly distribution policy, adopted in 2002, was designed to spread capital gain distribution more evenly over the year, rather than occurring just at year-end, and the rate was set based on an historic approximate average of distributed net realized gains.  

At April 30, 2009, the Fund had approximately $41 million of net realized losses and $11 million of net unrealized depreciation, for a combined 30% of the Fund's net assets applicable to Common Stockholders.  The Fund intends the suspension to continue until such time as it can again regularly distribute net realized gains, which should occur after it has utilized the Fund's capital loss carryforwards.  Until such time, the Fund will distribute any net investment income on an annual basis in December.

The Board believes that this decision is in the best interests of the Common Stockholders. It will allow the Fund to retain assets, which Royce & Associates, LLC, the Fund's investment adviser, deems crucial as it seeks to continue taking advantage of what it believes are excellent opportunities in the current small-cap marketplace. The Board also considered the potentially adverse tax consequences that could occur if this policy were to continue.  In certain circumstances, returns of capital could be taxable for federal income tax purposes, and all or a portion of the Fund's capital loss carryforwards from prior years could effectively be forfeited.

The suspension of distributions does not apply to the Preferred issues of the above common stock.

Read more on Royce Micro-Cap Trust and closed-end fund investing.

Royce Value Trust to Suspend Managed Distribution Policy

At a meeting held today, the Board of Directors of Royce Value Trust approved the suspension of the Fund's 9% quarterly distribution policy for Common Stockholders in light of current market conditions and other factors.  The 9% managed quarterly distribution policy, adopted in 1997, was designed to spread capital gain distribution more evenly over the year, rather than occurring just at year-end, and the rate was set based on an historic approximate average of distributed net realized gains.  

At April 30, 2009, the Fund had approximately $106 million of net realized losses and $68 million of net unrealized depreciation, for a combined 29% of the Fund's net assets applicable to Common Stockholders.  The Fund intends the suspension to continue until such time as it can again regularly distribute net realized gains, which should occur after it has utilized the Fund's capital loss carryforwards.  Until such time, the Fund will distribute any net investment income on an annual basis in December.

The Board believes that this decision is in the best interests of the Common Stockholders. It will allow the Fund to retain assets, which Royce & Associates, LLC, the Fund's investment adviser, deems crucial as it seeks to continue taking advantage of what it believes are excellent opportunities in the current small-cap marketplace. The Board also considered the potentially adverse tax consequences that could occur if this policy were to continue.  In certain circumstances, returns of capital could be taxable for federal income tax purposes, and all or a portion of the Fund's capital loss carryforwards from prior years could effectively be forfeited.

The suspension of distributions does not apply to the Preferred issues of the above common stock.

Read more on Royce Value Trust and closed-end fund investing.