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Royce Value Trust, Inc. Common Message Board

  • texasbroker2000 texasbroker2000 Mar 21, 2005 4:13 PM Flag

    Bloom off the Rose

    RVT hasn't been holding up too well over the short term. Is the payout starting to affect the price and are we receiving return of capital vs return on capital?

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    • Good Morning....

      If you read the "BOILERPLATE" statement by RVT [and the other CEF's with the same policies and statements]:

      "A portion of the distribution will be treated as long-term capital gains. Long-term capital gains will be allocated pro-rata to all distributions for the year. The final determination of the source, including potentially a return of capital, of all distributions in 2005 will be made at the end of the year."

      The market changes all the time, so, none of the CEF's have the faintest ideas what the final distribution characteristics mix [of the four components involved] might be....

      Keep in mind that the "VALUE" trading range for RVT has been 17.03 to 19.07 [substantially up from the previous trading range of 14.00 to 16.00] and we have been trading above this for some time now. A pullback is in order ["Traders" problem IMHO]....

      For a lot of us "LONG TERM" holders, who loaded up on RVT at 10.57 during their "RO" [rights offering], the distribution mix has no current meaning [IMHO]....

      Live Long and Prosper....

      • 1 Reply to SKELLY36
      • Thanks Eddy, I too loaded up on the RO but I also continue to reinvest the distributions or should I say payouts.

        Up until now the share price has been able to continue upward...the portfolio value is increasing at a rate high enough to absorb the capital distribution.

        Just looks like we're stuck here and while the RO was a good thing, recent reinvestment at $18.67 is questionable. I'm evaluating whether or not to keep reinvesting.


11.45+0.20(+1.78%)Jun 28 4:02 PMEDT