ROYCE SMALL-CAP TRUST Business Summary

Royce Small-Cap Trust, Inc. (RVT) operates as a closed-end equity management investment company, generating revenue primarily through an investment advisory fee—calculated as a percentage of the fund’s average net assets—accrued daily and paid monthly. Its business model focuses on the active management of a diversified portfolio of micro- and small-cap stocks, emphasizing companies with high returns on invested capital and strong free cash flow. The fund’s primary investment segments are categorized by strategy, including Quality-Value, Core, and Opportunistic Value, with significant sector weightings in industrials, financials, and information technology. RVT competes directly with other diversified closed-end funds such as Adams Diversified Equity Fund (ADX), Gabelli Equity Trust (GAB), and General American Investors Company (GAM). Within this landscape, RVT distinguishes itself as a pioneer in the small-cap space, leveraging a "quality-first" fundamental approach to mitigate the volatility typically associated with smaller enterprises. The leadership of RVT is anchored by its founder and Chairman, Charles M. Royce, a seminal figure in small-cap value investing who has managed the fund since its 1986 inception. The executive management team is led by Christopher D. Pappas, President and CEO of Royce Investment Partners, who oversees the firm’s strategic direction and institutional operations. The fund’s core investment team includes veteran portfolio managers Lauren A. Romeo, Steven McBoyle, and Andrew Knuth, each bringing decades of specialized experience in fundamental equity analysis. As a specialist investment subsidiary of Franklin Resources, Inc. (Franklin Templeton), the fund benefits from the global scale and distribution capabilities of a major asset management parent. The Board of Directors, which includes independent members like Christopher C. Grisanti and Patricia W. Chadwick, provides rigorous governance and oversight, maintaining the fund's commitment to long-term shareholder value through disciplined capital allocation.