RGT: Deep Discount On Global Small-Caps But Unappealing Distribution Policy

Summary

  • Royce Global Trust (RGT) offers unique global small-cap exposure in a closed-end fund wrapper.
  • The fund trades at a deep discount, but it is no bargain, as this is a regular occurrence.
  • One of the reasons for this is that the fund does not offer an attractive distribution policy, which is often a key feature of CEFs.
  • This idea was discussed in more depth with members of my private investing community, CEF/ETF Income Laboratory. Learn More »
world map with globe

Eduardo Garlant

Written by Nick Ackerman, co-produced by Stanford Chemist

Royce Investment Partners invests in the niche category of small-cap stocks, and they offer several closed-end funds that target this area of the market. That makes them fairly unique in the space, as they are

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This article was written by

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Nick Ackerman is a former financial advisor using his experience to provide coverage on closed-end funds and exchange-traded funds. Nick has previously held Series 7 and Series 66 licenses and has been investing personally for over 14 years.

He contributes to the investing group CEF/ETF Income Laboratory along with leader Stanford Chemist, and Juan de la Hoz and Dividend Seeker. They help members benefit from income and arbitrage strategies in CEFs and ETFs by providing expert-level research. The service includes: managed portfolios targeting safe 8%+ yields, actionable income and arbitrage recommendations, in-depth analysis of CEFs and ETFs, and a friendly community of over a thousand members looking for the best income ideas. These are geared towards both active and passive investors. The vast majority of their holdings are also monthly-payers, which is great for faster compounding as well as smoothing income streams. Learn More.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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