Royce Value Trust (RVT)
19

At a Glance

Why invest in Value Trust?

  • The first small-cap closed-end fund, managed since its inception in 1986 by the same portfolio manager—a recognized pioneer of small-cap investing
  • Core approach that combines multiple investment themes and offers wide exposure to small-cap stocks (generally market caps up to $3 billion) by investing in companies with high returns on invested capital or those with strong fundamentals and/or prospects trading at what Royce believes are attractive valuations
  • Average annual total return of 10.7% since inception (11/26/86) through 6/30/18

As of 06/30/18

  • Small-Cap
    Core Approach
    $1.91B
    Avg. Market Cap
  • Active Share
    91%
  • Lead Manager
    Tenure
    31+
    Years on Fund
  • Domestic
    19%
    2017 Annual
    Turnover Rate
  • Daily Price 17.55-$0.22 (-1.24%) MKT $16.09-$0.13 (-0.01%)
    $1.49B
    Net Assets

Portfolio Management

"Our task is to scour the large and diverse universe of small-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

Performance

Average Annual Total Returns (%)

Outperformed Russell 2000 for the 3-Year, 20-Year, 30-Year and since inception (11/26/86) periods as of 06/30/18.
QTR YTD 1YR 3YR 5YR 10YR 20YR 30YR SINCE INCEPT. DATE
RVT 3.42 1.3616.9313.7711.778.348.9811.0010.16 11/26/86
XRVTX 3.22 2.7814.3712.0311.458.819.1510.9710.74 11/26/86
Russell 2000 7.75 7.6617.5710.9612.4610.608.0310.979.76 N/A
JUL YTD 1YR 3YR 5YR 10YR 20YR 30YR SINCE INCEPT. DATE
RVT 0.51 1.8714.6115.6610.918.409.4811.0810.15 11/26/86
XRVTX 2.08 4.9215.8214.0910.558.899.5511.0010.79 11/26/86
Russell 2000 1.74 9.5418.7312.0411.3310.398.5811.009.79 N/A
AUG YTD 1YR 3YR 5YR 10YR 20YR 30YR SINCE INCEPT. DATE
RVT 1.32 3.2220.5617.0111.217.929.9311.1210.18 11/26/86
XRVTX -0.85 4.0317.9913.9110.428.369.6611.0310.74 11/26/86
Russell 2000 0.05 9.5922.3212.8311.719.818.8111.039.78 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 invests primarily in securities of small-cap and 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. From time to time, the Fund may invest a significant portion of its net assets in foreign securities, which may involve political, economic, currency, and other risks not encountered in U.S. investments.

Rolling Returns

For 96% of the periods, 10-year average annual total returns were greater than 5%.

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% 140 54
> 5% and ≤ 10% 109 42
> 0% and ≤ 5% 11 4
≤ 0% 0 0

The Fund averaged a 10.5% return over all 260 10-year monthly rolling return periods.

Market Cycle Performance

The Fund outperformed the Russell 2000 from the 6/23/15 index peak through current (6/30/18).
Peak-Peak - 07/13/07 - 04/29/11
Value Trust6.2%
Russell 20006.6%

Peak-Peak - 04/29/11 - 06/23/15
Value Trust31.3%
Russell 200058.5%

Peak-Current - 06/23/15 - 06/30/18
Value Trust37.1%
Russell 200032.3%

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 11/26/86 and 06/30/18

Value Trust$251,253.30
Russell 2000$189,369.54

Market Price Performance History

Risk

Down Market Performance Comparisonas of 06/30/18

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

Russell 2000 Down Quarters

QUARTER ENDRUSSELL 2000 (%)VALUE TRUST (%)SPREAD (%)
03/31/18-0.1-0.4-0.3
03/31/16-1.5+4.4+5.9
09/30/15-11.9-12.4-0.5
09/30/14-7.4-7.5-0.1
06/30/12-3.5-8.6-5.1
09/30/11-21.9-25.2-3.3
06/30/11-1.6-2.6-1.0
06/30/10-9.9-10.4-0.5
03/31/09-15.0-13.5+1.5
12/31/08-26.1-32.9-6.8
09/30/08-1.1-8.3-7.2
03/31/08-9.9-10.7-0.8
12/31/07-4.6-2.6+2.0
09/30/07-3.1-1.8+1.3
06/30/06-5.0-3.9+1.1
03/31/05-5.3-3.5+1.8
09/30/04-2.9-2.1+0.8

Long Term Risk Measurementas of 06/30/18

Over the past 5 years, the Fund produced lower volatility than 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 06/30/18

Sharpe RatioStandard Deviation
Value Trust0.4921.58
Russell 20000.6019.57
Category MedianN/AN/A

Sharpe Ratio Standard Deviation
Value Trust
Russell 2000
Category Median
Best Quartile Breakpoint

Composition

Morningstar Style Map™as of 03/31/18

mstar-XRVTX

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 06/30/18

  XRVTX Russell 2000
Average Market Cap
1.91B
1.82B
Net Leverage
0.1%
-
Market Price
$15.80
-
Net Asset Value
$17.34
-
91%
-
2017 Portfolio Turnover
19%
-
Weighted Average P/E,
21.7x
19.6x
Weighted Average P/B
2.2x
2.3x
U.S. Investments (% of Net Assets)
83.2%
-
Non-U.S. Investments (% of Net Assets)
16.9%
-

Portfolio Allocation

  • Total
    Holdings
    372


SECTORS
XRVTX (%) RUSSELL
2000 (%)
Industrials
30.8
14.9
Information Technology
19.3
14.9
Financials
14.9
17.9
Consumer Discretionary
8.8
13.3
Materials
8.5
4.3
Energy
7.0
5.0
Health Care
4.4
15.6
Real Estate
3.7
7.3
Consumer Staples
1.6
2.8
Telecommunication Services
0.5
0.7
Utilities
0.4
3.3
Outstanding Line of Credit, Net of Cash and Cash Equivalents
-0.1
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
FLIR Systems
2.1
HEICO Corporation
1.9
Quaker Chemical
1.4
Copart
1.2
Sun Hydraulics
1.2
Reliance Steel & Aluminum
1.1
Cognex Corporation
1.1
TGS-NOPEC Geophysical
1.0
SEACOR Marine Holdings
1.0
ANSYS
1.0
RBC Bearings
0.9
FirstService Corporation
0.9
E-L Financial
0.9
Kirby Corporation
0.9
Landstar System
0.9
FRP Holdings
0.8
Tejon Ranch
0.8
Brooks Automation
0.8
IPG Photonics
0.8
Clarkson
0.8
Top 20 as % of Net Assets
21.5

SECTORS
XRVTX (%) RUSSELL
2000 (%)
Industrials
30.8
14.9
Information Technology
19.3
14.9
Financials
14.9
17.9
Consumer Discretionary
8.8
13.3
Materials
8.5
4.3
Energy
7.0
5.0
Health Care
4.4
15.6
Real Estate
3.7
7.3
Consumer Staples
1.6
2.8
Telecommunication Services
0.5
0.7
Utilities
0.4
3.3
Outstanding Line of Credit, Net of Cash and Cash Equivalents
-0.1
-
POSITIONS% OF NET ASSETS
(SUBJECT TO CHANGE)
FLIR Systems
2.1
HEICO Corporation
1.9
Quaker Chemical
1.4
Copart
1.2
Sun Hydraulics
1.2
Reliance Steel & Aluminum
1.1
Cognex Corporation
1.1
TGS-NOPEC Geophysical
1.0
SEACOR Marine Holdings
1.0
ANSYS
1.0
RBC Bearings
0.9
FirstService Corporation
0.9
E-L Financial
0.9
Kirby Corporation
0.9
Landstar System
0.9
FRP Holdings
0.8
Tejon Ranch
0.8
Brooks Automation
0.8
IPG Photonics
0.8
Clarkson
0.8
Top 20 as % of Net Assets
21.5

Portfolio Holdings

View the complete list of holdings for this fund as of 06/30/18. Unaudited schedule of portfolio holdings is presented for informational purposes only.

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 ($) REINVEST
PRICE ($)
06/11/18 06/08/18 06/27/18 EST 0.0336 EST 0.0614 EST 0.2050 EST 0.0000 0.3000 16.20
03/12/18 03/09/18 03/23/18 EST 0.0325 EST 0.0594 EST 0.1981 EST 0.0000 0.2900 15.70
12/13/17 12/12/17 12/27/17 EST 0.0391 EST 0.0314 EST 0.2796 EST 0.0000 0.3500 15.96
09/13/17 09/12/17 09/26/17 EST 0.0313 EST 0.0251 EST 0.2236 EST 0.0000 0.2800 15.12
06/13/17 06/09/17 06/27/17 EST 0.0301 EST 0.0242 EST 0.2157 EST 0.0000 0.2700 14.39
03/14/17 03/10/17 03/24/17 EST 0.0290 EST 0.0233 EST 0.2077 EST 0.0000 0.2600 13.66
12/13/16 12/09/16 12/27/16 0.0356 0.0048 0.2295 0.0000 0.2700 13.62
09/13/16 09/09/16 09/26/16 0.0317 0.0043 0.2040 0.0000 0.2400 12.32
06/13/16 06/09/16 06/27/16 0.0330 0.0045 0.2125 0.0000 0.2500 11.93
03/14/16 03/10/16 03/24/16 0.0343 0.0046 0.2210 0.0000 0.2600 11.55
12/14/15 12/10/15 12/28/15 0.0471 0.0163 0.3066 0.0000 0.3700 11.54
09/14/15 09/10/15 09/25/15 0.0357 0.0123 0.2320 0.0000 0.2800 11.86
06/15/15 06/11/15 06/26/15 0.0369 0.0128 0.2403 0.0000 0.2900 14.07
03/13/15 03/11/15 03/25/15 0.0382 0.0132 0.2486 0.0000 0.3000 14.34
12/15/14 12/11/14 12/26/14 0.0661 0.1304 0.6835 0.0000 0.8800 14.26
09/15/14 09/11/14 09/26/14 0.0240 0.0474 0.2485 0.0000 0.3200 14.88
06/16/14 06/12/14 06/27/14 0.0233 0.0459 0.2408 0.0000 0.3100 15.95
03/13/14 03/11/14 03/25/14 0.0233 0.0459 0.2408 0.0000 0.3100 15.61
12/13/13 12/11/13 12/27/13 0.0104 0.0327 0.1669 0.0000 0.2100 15.74
09/16/13 09/12/13 09/27/13 0.0099 0.0312 0.1589 0.0000 0.2000 16.12
06/14/13 06/12/13 06/27/13 0.0094 0.0296 0.1510 0.0000 0.1900 15.05
03/06/13 03/04/13 03/25/13 0.0094 0.0296 0.1510 0.0000 0.1900 14.81
12/06/12 12/04/12 12/24/12 0.0498 0.0255 0.1647 0.0000 0.2400 12.98
09/06/12 09/04/12 09/24/12 0.0373 0.0191 0.1235 0.0000 0.1800 13.18
06/06/12 06/04/12 06/25/12 0.0394 0.0202 0.1304 0.0000 0.1900 12.18
03/06/12 03/02/12 03/23/12 0.0394 0.0202 0.1304 0.0000 0.1900 14.09
12/06/11 12/02/11 12/23/11 0.0202 0.0039 0.1057 0.0702 0.2000 11.94
09/06/11 09/01/11 09/23/11 0.0213 0.0041 0.1110 0.0737 0.2100 12.03
06/06/11 06/02/11 06/23/11 0.0192 0.0037 0.1004 0.0667 0.1900 14.21
03/07/11 03/03/11 03/23/11 0.0182 0.0035 0.0951 0.0632 0.1800 14.77
12/06/10 12/02/10 12/23/10 0.0300 - - - 0.0300 13.85
03/06/09 03/04/09 03/23/09 0.0000 0.0000 0.0000 0.3200 0.3200 6.07

NAV History for

Fees & Expenses

Annual Fund Operating Expenses (%)

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

Management fees 0.43
Other expenses 0.22
Total annual Fund operating expenses 0.65

Important Disclosure Information

This material is not authorized for distribution unless preceded or accompanied by a current prospectus. Please read the prospectus carefully before investing or sending money. 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 Fund's P/E ratio calculation excludes 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 fund's total returns have varied over time. The greater the standard deviation, the greater a fund'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. 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.

Managed by Chuck Royce since 1986, assistant portfolio managers Chris Flynn, Lauren Romeo, and David Nadel since 2009

11/26/1986 12:00:00 AM

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