Royce Value Trust to be Added

By on June 27, 2016

Concerns following Great Britain’s decision to exit the EU have created opportunities to purchase equities significantly lower than a few days ago. Royce Value Trust (RVT) is a Closed-End Fund (CEF) trading at a discount to Net Asset Value (NAV) of approximately 15%. RVT has a reasonable annual expense ratio of 0.68% according to the Closed-End Fund Association (link).

Value stocks have been underperforming the past few years. RVT is concentrated in the small cap value area. The chart below indicates its relative underperfomance versus the S&P 500 over the past year.

I will place a limit order to purchase RVT at $11.30 and will allocate approximately 4% of the SMA Portfolio to this holding if that price is reached.

Disclosure: I do not currently have a position in RVT.

RVT vs SPY

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