Royce Micro-Cap Trust, Inc. (NYSE-RMT) declares Third Quarter Common Stock Distribution of $0.21 Per Share

Rhea-AI Summary

Royce Micro-Cap Trust (NYSE-RMT) announced a quarterly distribution of $0.21 per share on its Common Stock, payable on September 24, 2021, to stockholders of record as of September 13, 2021. This aligns with its 7% annual distribution policy based on the rolling average of the prior four quarter-end net asset values (NAVs). The distribution may include a return of capital, which does not reflect the fund's performance. The fund's estimated allocations show that a portion of the distribution is derived from realized gains.

Positive

• Quarterly distribution of $0.21 per share indicates continuous income generation.
• Distribution policy ensures a stable annual return of 7% based on NAV.
• Estimated allocations show a significant proportion of distribution from long-term capital gains (80%).

Negative

• Net investment income is $0.00, indicating reliance on capital gains for distributions.
• A portion of the distribution may be a return of capital, which could concern investors regarding the sustainability of income.

NEW YORK, Sept. 1, 2021 /PRNewswire/ -- Royce Micro-Cap Trust, Inc. (NYSE-RMT) has declared a quarterly distribution of $0.21 per share on its Common Stock.  The distribution, optionally payable in additional shares of Common Stock, or in cash by specific stockholder election, is to be paid on September 24, 2021 to stockholders of record at the close of business on September 13, 2021 (ex-dividend on September 10, 2021).  The price of shares issued for reinvestment will be determined on September 20, 2021.

The Fund has adopted a Distribution Policy of paying quarterly distributions on its Common Stock. Distributions are being made at the annual rate of 7% of the rolling average of the prior four calendar quarter-end net asset values (NAVs), with the fourth quarter distribution being the greater of 1.75% of the rolling average or the minimum distribution required by IRS regulations. The policy, including the annual rate, is subject to change at the discretion of the Fund's Board of Directors.

The Fund estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Fund's investment performance and should not be confused with 'yield' or 'income'.

The Fund's estimated sources of the distribution to be paid on September 24, 2021 and for 2021 year-to-date are as follows:

Estimated Allocations as of August 31, 2021
FUND	DISTRIBUTION PER SHARE	NET INVESTMENT INCOME	NET REALIZED SHORT-TERM GAINS	NET REALIZED LONG-TERM GAINS	RETURN OF CAPITAL
RMT	$0.21	$0.00 (0%)	$0.0425 (20%)	$0.1670 (80%)	$0.0005 (0%)

 

Estimated Allocations for 2021 through August 31, 2021
FUND	DISTRIBUTION PER SHARE	NET INVESTMENT INCOME	NET REALIZED SHORT-TERM GAINS	NET REALIZED LONG-TERM GAINS	RETURN OF CAPITAL
RMT	$0.56	$0.00 (0%)	$0.1133 (20%)	$0.4453 (80%)	$0.0014 (0%)

You should not draw any conclusions about the Fund's investment performance from the amount of the current distribution or from the terms of the Fund's Distribution Policy.  The amounts and sources of distributions reported herein are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.

Fund Performance and Distribution Rate Information:

Fund	Average Annual Total Return (in relation to NAV for the 5-year period ending on 8/31/2021)1	Annualized Current Distribution Rate (expressed as a percentage of NAV as of 8/31/2021)2	Cumulative total return (in relation to NAV for the fiscal year through 8/31/2021)3	Cumulative fiscal year Distribution Rate (as a percentage of NAV as 8/31/2021)4
RMT	17.25%	6.16%	19.03%	4.11%

¹  Average Annual Total Return in relation to NAV represents the compound average of the Annual NAV Total Returns of the Fund for the five year period ended August 31, 2021.  Annual NAV Total Return is the percentage change in the Fund's NAV over a year, assuming reinvestment of distributions paid.

²  The annualized Current Distribution Rate is the current fiscal period's distribution rate annualized as a percentage of the Fund's NAV as of August 31, 2021.

³  Cumulative Total Return is the percentage change in the Fund's NAV from December 31, 2020 to August 31, 2021 assuming reinvestment of distributions paid.

⁴  The Cumulative Fiscal Year Distribution Rate is the dollar value of distributions for the fiscal year period (January 1, 2021 to August 31, 2021), as a percentage of the Fund's NAV as of August 31, 2021.

About Royce Micro-Cap Trust, Inc.

Royce Micro-Cap Trust, Inc. is a closed-end diversified management investment company whose shares of Common Stock are listed and traded on the New York Stock Exchange. The Fund's investment goal is long-term capital growth, which it seeks by investing primarily in equity securities of micro-cap companies.

For further information on The Royce Funds^sm, please visit our web site at: www.royceinvest.com.

 

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SOURCE Royce Micro-Cap Trust

FAQ

What is the latest distribution announced for RMT?

Royce Micro-Cap Trust has declared a quarterly distribution of $0.21 per share.

When will the distribution for RMT be paid?

The distribution will be paid on September 24, 2021, to stockholders of record on September 13, 2021.

What is the annual distribution rate policy for RMT?

RMT has a distribution policy of paying quarterly distributions at an annual rate of 7% based on the rolling average of the prior four calendar quarter-end NAVs.

What portion of the distribution for RMT is from capital gains?

For the latest distribution, 80% is estimated to come from long-term realized gains.