I understand the anger of someone who depends on the quarterly distributions. If you don't need the regular income, what Royce has done probably makes sense. It's kind of like them keeping all your distributions for a while so this money can be invested to earn more later. That is to say, they can't buy cheap stocks at a bargain unless they have the money (your distributions) to do so. Their gamble is that they can sell these stocks later at a good profit.
I know you are right. But, I own BBT which dropped their dividend 68%, I own PWE which dropped their dividend, & I own RVT which suspended their dividend. This is part of my retirement portfolio which is slowly turning to "shit". I am by no means desperate. I've got other things to fall back on. I really feel sorry for the people that are "hung out to dry".
It sounds like we will get a dividend at End of Year based on actual dividend income received by RVT, but will get no capital gains (or any return of capital) until the capital loss credit is used up or at least greatly reduced.
Although I am also hurting from these dividend cuts, I feel strong with RVT. I own a couple of the RVT funds and have enjoyed good returns over many years.
One thing to keep in mind is that the Royce family has a good percentage of their assets in these funds.
Hopefully they will continue to perform as they have in the past.
The way I understand this suspension is that we are not going to get any more dividends until a later date. If the fund has any cash left, it will distribute it in Dec of each year. Until then, no more dividends. This really hurts.