At a Glance

Overview

Investment Objective

Long-term growth of capital

Portfolio Approach

Broadly diversified portfolio, disciplined value approach

Primary Market Cap Range

Micro-cap stocks, up to $750 million

Manager Tenure

Chuck Royce since 1993, assistants Chris Flynn and James Harvey since 2009

As of 6/30/2014

  • Micro-Cap
    $365.0M,
    Avg. Market Cap
  • Broadly Diversified
    398
    Holdings
  • Domestic
    90.4%
    U.S. (9.7% Non-US)
  • 12/14/1993Inception Date
    20+
    Years of History
  • Daily Price 13.76+$0.02 (+0.15%) MKT $12.37-$0.03 (0.00%)
    $437.3M
    Net Assets

Portfolio Manager

  • Jim Harvey
    Assistant Portfolio Manager
    since 2009



Performance

Average Annual Total Returns (%)

Outperformed Russell 2000 for the 1-Year, 3-Year, 5-Year, 10-Year, 15-Year, 20-Year and since inception (12/14/1993) periods as of 6/30/2014
QTR YTD 1YR 3YR 5YR 10YR 15YR 20YR SINCE INCEPT. DATE
RMT 5.08 3.8732.3017.6122.548.3212.3611.9211.02 12/14/1993
XOTCX 1.71 3.0631.3216.0920.679.0911.6512.0411.78 12/14/1993
Russell 2000 2.05 3.1923.6414.5720.218.708.019.819.37 N/A
JUL YTD 1YR 3YR 5YR 10YR 15YR 20YR SINCE INCEPT. DATE
RMT -3.95 -0.2319.5517.3619.638.8712.0311.5010.76 12/14/1993
XOTCX -5.42 -2.5215.0714.1217.579.1311.2711.6511.42 12/14/1993
Russell 2000 -6.05 -3.068.5613.5916.568.787.769.389.00 N/A
AUG YTD 1YR 3YR 5YR 10YR 15YR 20YR SINCE INCEPT. DATE
RMT 2.07 1.8322.3424.9019.258.8212.1011.5110.83 12/14/1993
XOTCX 3.77 1.1519.1422.9517.409.7811.6711.8011.59 12/14/1993
Russell 2000 3.67 0.5013.4422.9416.369.238.189.459.16 N/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.roycefunds.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 100% of all 10-Year periods; 64% of all 5-Year periods; 63% of all 3-Year periods; and 70% of all 1-Year periods.

For 99% of the periods, 10-year average annual total returns were greater than 5%; For 53% of the periods, 10-year average annual total returns were greater than 10%.

Monthly Rolling Average Annual Return Periods 15 Years Through 6/30/2014

periods beating
the index(%)
fund
avg(%)
index
avg(%)
10-year
61/61
100 9.0 6.9
5-year
78/121
64 9.4 7.1
3-year
92/145
63 10.1 7.4
1-year
118/169
70 14.2 9.8

Absolute Return Focus: Ten-Year Monthly Rolling Returns PeriodsNumber of 10-Year Average Annual Return Periods Since the Fund’s Inception Through 6/30/2014

The Fund averaged a 11.0% return over all 127 10-year monthly rolling return periods.

Market Cycle Performance

The Fund outperformed the Russell 2000 from the 3/9/00 and 4/29/11 index peaks through 6/30/14 and in one of the two previous full market cycle periods.
Peak-Peak - 03/09/2000 - 07/13/2007
Micro-Cap Trust175.9%
Russell 200054.8%

Peak-Peak - 07/13/2007 - 04/29/2011
Micro-Cap Trust-0.5%
Russell 20006.6%

Peak-Current - 04/29/2011 - 06/30/2014
Micro-Cap Trust50.1%
Russell 200044.2%

Calendar Year Total Returns (%)

 

Growth of Investment

Value of $10,000 invested between 12/14/1993 and 6/30/2014

Micro-Cap Trust$98,444.21
Russell 2000$62,943.33

Portfolio Impactas of 6/30/2014

SECTOR NAMEAVERAGE WEIGHT(%)TOTAL RETURN(%)CONTRIBUTION TO RETURN(%)
Health Care8.219.91.7
Industrials25.11.40.3
Materials5.95.10.3
Energy3.07.40.2
Financials15.00.60.1
Utilities0.217.30.0
Consumer Staples1.71.10.0
Telecommunication Services0.0-2.60.0
Consumer Discretionary13.6-2.3-0.3
Information Technology19.1-2.2-0.5
Cash8.20.00.0
Unassigned---0.2
Total--1.7

Top Contributors

INDUSTRYSECTORGAIN(%)
BiotechnologyHealth Care1.0
Health Care Equipment & SuppliesHealth Care0.6
MachineryIndustrials0.6
Building ProductsIndustrials0.3
Energy Equipment & ServicesEnergy0.2

Top Detractors

INDUSTRYSECTORGAIN(%)
Electrical EquipmentIndustrials-0.4
Specialty RetailConsumer Discretionary-0.3
Semiconductors & Semiconductor EquipmentInformation Technology-0.2
Consumer FinanceFinancials-0.2
Technology Hardware Storage & PeripheralsInformation Technology-0.2

Top Contributors

COMPANYINDUSTRYSECTORGAIN(%)
Idenix PharmaceuticalsBiotechnologyHealth Care0.7
Medical Action IndustriesHealth Care Equipment & SuppliesHealth Care0.6
Achillion PharmaceuticalsBiotechnologyHealth Care0.3
WaterFurnace Renewable EnergyBuilding ProductsIndustrials0.3
NNMachineryIndustrials0.2

Top Detractors

COMPANYINDUSTRYSECTORGAIN(%)
PowerSecure InternationalElectrical EquipmentIndustrials-0.1
Le Chateau Cl. ASpecialty RetailConsumer Discretionary-0.1
Flexsteel IndustriesHousehold DurablesConsumer Discretionary-0.1
Universal Truckload ServicesRoad & RailIndustrials-0.1
Regional ManagementConsumer FinanceFinancials-0.1
SECTOR NAMEAVERAGE WEIGHT(%)TOTAL RETURN(%)CONTRIBUTION TO RETURN(%)
Health Care8.223.31.9
Financials14.63.20.5
Energy3.114.70.4
Materials5.75.70.3
Consumer Discretionary13.21.60.3
Consumer Staples2.05.60.1
Utilities0.135.50.0
Telecommunication Services0.01.40.0
Information Technology19.30.00.0
Industrials25.2-0.6-0.3
Cash8.50.00.0
Unassigned---0.2
Total--3.1

Top Contributors

INDUSTRYSECTORGAIN(%)
BiotechnologyHealth Care1.2
MachineryIndustrials0.8
MediaConsumer Discretionary0.6
Electronic Equipment, Instruments & ComponentsInformation Technology0.6
Health Care Equipment & SuppliesHealth Care0.4

Top Detractors

INDUSTRYSECTORGAIN(%)
Specialty RetailConsumer Discretionary-0.6
Electrical EquipmentIndustrials-0.4
Road & RailIndustrials-0.3
SoftwareInformation Technology-0.3
Consumer FinanceFinancials-0.3

Top Contributors

COMPANYINDUSTRYSECTORGAIN(%)
Idenix PharmaceuticalsBiotechnologyHealth Care0.7
Medical Action IndustriesHealth Care Equipment & SuppliesHealth Care0.6
Rentrak CorporationMediaConsumer Discretionary0.4
Achillion PharmaceuticalsBiotechnologyHealth Care0.3
Furiex PharmaceuticalsLife Sciences Tools & ServicesHealth Care0.3

Top Detractors

COMPANYINDUSTRYSECTORGAIN(%)
Regional ManagementConsumer FinanceFinancials-0.2
PMFGMachineryIndustrials-0.2
CacheSpecialty RetailConsumer Discretionary-0.2
Patriot Transportation HoldingRoad & RailIndustrials-0.2
Universal Truckload ServicesRoad & RailIndustrials-0.2
SECTOR NAMEAVERAGE WEIGHT(%)TOTAL RETURN(%)CONTRIBUTION TO RETURN(%)
Industrials25.629.07.5
Health Care8.082.25.4
Information Technology19.924.15.2
Financials15.631.95.2
Consumer Discretionary12.322.02.7
Materials5.716.31.0
Energy3.330.81.0
Consumer Staples2.225.10.6
Utilities0.133.40.0
Telecommunication Services0.0-2.70.0
Cash7.10.00.0
Unassigned--2.7
Total--31.3

Top Contributors

INDUSTRYSECTORGAIN(%)
MachineryIndustrials2.9
BiotechnologyHealth Care2.5
Electronic Equipment, Instruments & ComponentsInformation Technology2.2
Capital MarketsFinancials1.8
Real Estate Management & DevelopmentFinancials1.6

Top Detractors

INDUSTRYSECTORGAIN(%)
Specialty RetailConsumer Discretionary-0.3
Consumer FinanceFinancials-0.1
Diversified Telecommunication ServicesTelecommunication Services0.0
Internet & Catalog RetailConsumer Discretionary0.0
Hotels, Restaurants & LeisureConsumer Discretionary0.0

Top Contributors

COMPANYINDUSTRYSECTORGAIN(%)
Rentrak CorporationMediaConsumer Discretionary1.0
Idenix PharmaceuticalsBiotechnologyHealth Care0.8
Altisource Asset ManagementReal Estate Management & DevelopmentFinancials0.6
NNMachineryIndustrials0.6
Universal ElectronicsHousehold DurablesConsumer Discretionary0.6

Top Detractors

COMPANYINDUSTRYSECTORGAIN(%)
Computer Task GroupIT ServicesInformation Technology-0.3
Support.comInternet Software & ServicesInformation Technology-0.2
CacheSpecialty RetailConsumer Discretionary-0.2
SeaChange InternationalSoftwareInformation Technology-0.1
Le Chateau Cl. ASpecialty RetailConsumer Discretionary-0.1
SECTOR NAMEAVERAGE WEIGHT(%)TOTAL RETURN(%)CONTRIBUTION TO RETURN(%)
Industrials23.965.816.8
Financials16.779.413.9
Health Care6.8155.18.9
Consumer Discretionary11.366.97.8
Information Technology19.631.97.8
Consumer Staples2.564.81.6
Utilities0.1-48.3-0.1
Telecommunication Services0.0-40.6-0.3
Energy3.616.8-0.3
Materials6.8-1.3-0.6
Cash8.60.20.0
Unassigned--0.9
Total--56.5

Top Contributors

INDUSTRYSECTORGAIN(%)
Capital MarketsFinancials5.2
BiotechnologyHealth Care4.2
Real Estate Management & DevelopmentFinancials3.9
Building ProductsIndustrials3.7
MachineryIndustrials3.3

Top Detractors

INDUSTRYSECTORGAIN(%)
Metals & MiningMaterials-3.0
Internet & Catalog RetailConsumer Discretionary-0.8
Energy Equipment & ServicesEnergy-0.6
Technology Hardware Storage & PeripheralsInformation Technology-0.4
Diversified Telecommunication ServicesTelecommunication Services-0.3

Top Contributors

COMPANYINDUSTRYSECTORGAIN(%)
Virtus Investment PartnersCapital MarketsFinancials1.9
BofI HoldingThrifts & Mortgage FinanceFinancials1.6
Integrated Electrical ServicesConstruction & EngineeringIndustrials1.5
Kennedy-Wilson HoldingsReal Estate Management & DevelopmentFinancials1.5
Epoch Holding CorporationCapital MarketsFinancials1.3

Top Detractors

COMPANYINDUSTRYSECTORGAIN(%)
PMFGMachineryIndustrials-0.7
Extorre Gold MinesMetals & MiningMaterials-0.7
Vista GoldMetals & MiningMaterials-0.6
U.S. Auto Parts NetworkInternet & Catalog RetailConsumer Discretionary-0.4
LamprellEnergy Equipment & ServicesEnergy-0.4
SECTOR NAMEAVERAGE WEIGHT(%)TOTAL RETURN(%)CONTRIBUTION TO RETURN(%)
Industrials22.6181.837.7
Information Technology18.6160.630.7
Financials16.5145.723.2
Consumer Discretionary11.2190.221.0
Health Care6.8271.513.8
Materials7.096.29.5
Energy3.9107.94.5
Consumer Staples2.788.42.4
Diversified Investment Companies0.241.50.4
Telecommunication Services0.2-11.9-0.1
Utilities0.1-80.9-0.2
Cash10.10.40.1
Unassigned--12.8
Total--155.9

Top Contributors

INDUSTRYSECTORGAIN(%)
Electronic Equipment, Instruments & ComponentsInformation Technology11.8
Capital MarketsFinancials11.3
MachineryIndustrials10.7
IT ServicesInformation Technology8.4
Professional ServicesIndustrials7.6

Top Detractors

INDUSTRYSECTORGAIN(%)
Independent Power and Renewable Electricity ProducersUtilities-0.3
Construction MaterialsMaterials-0.1
Diversified Telecommunication ServicesTelecommunication Services-0.1
Containers & PackagingMaterials0.0
AutomobilesConsumer Discretionary0.0

Top Contributors

COMPANYINDUSTRYSECTORGAIN(%)
Sapient CorporationIT ServicesInformation Technology2.5
Epoch Holding CorporationCapital MarketsFinancials2.5
Drew IndustriesAuto ComponentsConsumer Discretionary2.3
Virtus Investment PartnersCapital MarketsFinancials2.3
BofI HoldingThrifts & Mortgage FinanceFinancials2.2

Top Detractors

COMPANYINDUSTRYSECTORGAIN(%)
BCB HoldingsBanksFinancials-0.9
Cowen GroupCapital MarketsFinancials-0.7
Vista GoldMetals & MiningMaterials-0.6
Extorre Gold MinesMetals & MiningMaterials-0.6
Pulse ElectronicsElectronic Equipment, Instruments & ComponentsInformation Technology-0.5

Market Price Performance History

Risk

Down Market Performance Comparisonas of 6/30/2014

The Fund outperformed the Russell 2000 during nine out of 10 downturns of 7.5% or more from the index’s prior historical high over the last 15 years.

Market Downturns (%)

Russell 2000 Down Quarters

QUARTER ENDRUSSELL 2000 (%)MICRO-CAP TRUST (%)SPREAD (%)
6/30/2012-3.5-4.4-0.9
9/30/2011-21.9-20.8+1.1
6/30/2011-1.6-3.2-1.6
6/30/2010-9.9-8.9+1.0
3/31/2009-15.0-11.8+3.2
12/31/2008-26.1-33.7-7.6
9/30/2008-1.1-6.9-5.8
3/31/2008-9.9-10.6-0.7
12/31/2007-4.6-4.5+0.1
9/30/2007-3.1-3.5-0.4
6/30/2006-5.0-3.2+1.8
3/31/2005-5.3-1.8+3.5
9/30/2004-2.9-3.0-0.1
3/31/2003-4.5-6.4-1.9
9/30/2002-21.4-24.6-3.2
6/30/2002-8.4-5.8+2.6
9/30/2001-20.8-17.5+3.3
3/31/2001-6.5-0.2+6.3
12/31/2000-6.9-4.2+2.7
6/30/2000-3.8+2.1+5.9
9/30/1999-6.3-3.1+3.2

Long Term Risk Measurementas of

Over the past 10 years, the Fund outperformed the Russell 2000.
Over the past 5 years, the Fund outperformed the Russell 2000.
Over the past 3 years, the Fund outperformed the Russell 2000.

Go to Relative Risk Spectrum Tool

Morningstar Statistical Measures as of 6/30/2014

Sharpe RatioStandard Deviation
Micro-Cap Trust0.4221.05
Russell 20000.4419.73
Category MedianN/AN/A

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

Composition

Market Cap Exposureas of 6/30/2014

  • Micro-Cap
    $365.0M
    Avg. Market Cap

Diagnosticsas of 6/30/2014

Net Leverage
0.1%
Weighted Avg. P/E,
21.8x
Weighted Avg. P/B
1.7x
2013 Portfolio Turnover
29%
104%

Portfolio Allocation as of 6/30/2014

  • Diversified
    398
    Holdings


SECTORS
XOTCX(%) RUSSELL 2000(%)
Industrials
25.8
13.8
Information Technology
20.6
17.9
Financials
16.4
23.0
Consumer Discretionary
16.0
13.3
Health Care
8.9
13.3
Materials
7.6
5.1
Energy
2.7
6.4
Consumer Staples
1.6
3.1
Utilities
0.2
3.4
Telecommunication Services
-
0.8
Bonds & Preferreds
0.3
-
Outstanding Line of Credit, Net of Cash and Cash Equivalents
-0.1
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
Integrated Electrical Services
1.4
MVC Capital
1.1
Tennant Company
1.0
Universal Electronics
1.0
Mesa Laboratories
1.0
Exactech
1.0
Seneca Foods Cl. B
1.0
Drew Industries
1.0
NN
1.0
Flexsteel Industries
1.0
Top 10 as % of Net Assets
10.5

Portfolio Holdings

View the complete list of holdings for this fund as of 6/30/2014. Unaudited schedule of portfolio holdings is presented for informational purposes only.

Least Portfolio Overlap

Greatest Portfolio Overlap

Geographical Breakdown

Distributions

NAV & Distributions


Start DateEnd Date
to

Learn more about distributions

Distributions

RECORD
DATE
EX-DATE PAYABLE
DATE
INCOME ($) SHORT
TERM
GAINS ($)
LONG
TERM
GAINS ($)
RETURN OF
CAPITAL ($)
TOTAL ($) REINVEST
PRICE ($)
6/16/2014 6/12/2014 6/27/2014 EST 0.000012 EST 0.047812 EST 0.192212 EST 0.000012 0.2400 12.45
3/13/2014 3/11/2014 3/25/2014 EST 0.000012 EST 0.045812 EST 0.184212 EST 0.000012 0.2300 12.53
12/13/2013 12/11/2013 12/27/2013 0.0222 0.1774 0.7704 0.0000 0.9700 12.29
9/16/2013 9/12/2013 9/27/2013 0.0032 0.0256 0.1112 0.0000 0.1400 11.66
6/14/2013 6/12/2013 6/27/2013 0.0032 0.0256 0.1112 0.0000 0.1400 10.68
3/6/2013 3/4/2013 3/25/2013 0.0030 0.0238 0.1032 0.0000 0.1300 10.60
12/6/2012 12/4/2012 12/24/2012 0.0212 0.0324 0.0764 0.0000 0.1300 9.09
9/6/2012 9/4/2012 9/24/2012 0.0196 0.0299 0.0705 0.0000 0.1200 9.25
6/6/2012 6/4/2012 6/25/2012 0.0212 0.0324 0.0764 0.0000 0.1300 8.61
3/6/2012 3/2/2012 3/23/2012 0.0212 0.0324 0.0764 0.0000 0.1300 9.31
12/6/2011 12/2/2011 12/23/2011 0.0143 0.0000 0.0637 0.0620 0.1400 8.38
9/6/2011 9/1/2011 9/23/2011 0.0143 0.0000 0.0637 0.0620 0.1400 8.19
6/6/2011 6/2/2011 6/23/2011 0.0133 0.0000 0.0592 0.0575 0.1300 9.24
3/7/2011 3/3/2011 3/23/2011 0.0123 0.0000 0.0546 0.0531 0.1200 9.67
12/6/2010 12/2/2010 12/23/2010 0.0630 - 0.0170 - 0.0800 9.40
3/6/2009 3/4/2009 3/23/2009 0.0000 0.0000 0.0000 0.2200 0.2200 4.26

NAV History for

Fees & Expenses

Annual Fund Operating Expenses (%)

As of 12/31/2013

Management fees 0.82
Other expenses 0.29
Total annual Fund operating expenses 1.11

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 Price-to-Book, or P/B, Ratio is calculated by dividing a company's share price by its book value per share. Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group. 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 performance of an index does not represent exactly any particular investment, as you cannot invest directly in an index.

This Fund is a closed-end fund whose shares of common stock trade on the NYSE. Royce Fund Services, Inc. ("RFS") is a member of FINRA and has filed this material with FINRA on behalf of the Fund. RFS does not serve as a distributor or as an underwriter to the Fund.

12/14/1993 12:00:00 AM
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