ROYCE MICRO-CAP TRUST, INC. — Regulatory Filings 2015

Nov 20, 2015

N-Q 1 e38015_rmt-nq.htm

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act File Number: 811-08030

Name of Fund:	Royce Micro-Cap Trust, Inc.
Fund Address:	745 Fifth Avenue
	New York, NY 10151

Name and address of agent for service: John E. Denneen, Esq. Royce & Associates, LLC 745 Fifth Avenue New York, NY 10151

Registrant’s telephone number, including area code: (212) 508-4500

Date of fiscal year end: 12/31/2015

Date of reporting period: 9/30/2015

page

Item 1 - Schedule of Investments

SCHEDULE OF INVESTMENTS
ROYCE MICRO-CAP TRUST
SEPTEMBER 30, 2015 (UNAUDITED)

	SHARES
COMMON
STOCKS – 104.8%
Consumer
Discretionary – 15.4%
Auto Components
- 2.6%
Drew
Industries 1 , 2	38,400	$ 2,097,024
Fuel
Systems Solutions 3	152,000	734,160
Global
& Yuasa Battery	50,500	1,739,388
Motorcar
Parts of America 3	50,000	1,567,000
Standard
Motor Products	61,853	2,157,433
		8,295,005
Distributors
- 0.8%
Core-Mark
Holding Company	16,800	1,099,560
Weyco
Group	59,600	1,611,584
		2,711,144
Diversified
Consumer Services - 1.8%
American
Public Education 3	73,200	1,716,540
Capella
Education	1,300	64,376
Collectors
Universe	90,500	1,364,740
Liberty
Tax Cl. A 2	108,264	2,521,469
Lincoln
Educational Services 3	266,700	136,017
		5,803,142
Hotels, Restaurants
& Leisure - 0.0%
Nathan’s Famous	2,100	79,842
Household
Durables - 2.6%
Cavco
Industries 3	21,691	1,476,940
Ethan
Allen Interiors 2	69,700	1,840,777
Flexsteel
Industries 2	24,400	762,500
iRobot
Corporation 1 , 2 , 3	15,000	437,100
Lifetime
Brands 1 , 2	130,794	1,828,500
Skyline
Corporation 3	183,400	528,192
Stanley
Furniture 3	93,468	275,731
Universal
Electronics 3	30,300	1,273,509
		8,423,249
Internet
& Catalog Retail - 1.2%
Blue
Nile 1 , 2 , 3	66,300	2,223,702
FTD
Companies 3	48,700	1,451,260
		3,674,962
Leisure Products
- 1.4%
Arctic
Cat	11,500	255,070
LeapFrog
Enterprises Cl. A 2 , 3	446,000	318,221
Nautilus 3	192,500	2,887,500
Smith
& Wesson Holding Corporation 2 , 3	53,600	904,232
Sturm,
Ruger & Co.	1,100	64,559
		4,429,582
Media - 1.3%
Rentrak
Corporation 3	24,800	1,340,936
Sizmek 3	5,800	34,742
Value
Line	169,000	2,617,810
		3,993,488
Specialty
Retail - 1.7%
Aeropostale 3	165,000	102,300
America’s Car-Mart 1 , 2 , 3	18,100	598,929
Destination
Maternity	190,600	1,757,332
Kirkland’s	7,900	170,166
Le
Chateau Cl. A 3	685,000	189,921
Lewis
Group	57,000	255,382
MarineMax 3	2,800	39,564
Shoe
Carnival 2	31,628	752,746
Stage
Stores 2	25,000	246,000
Systemax 1 , 2 , 3	74,000	554,260
TravelCenters
of America LLC 3	2,900	29,957
West
Marine 3	86,000	755,080
		5,451,637
Textiles,
Apparel & Luxury Goods - 2.0%
Crown
Crafts	159,359	1,308,337
Culp	32,900	1,055,103
J.G.
Boswell Company 4	2,490	1,630,950
Movado
Group 2	44,374	1,146,180
YGM
Trading	1,422,000	1,287,657
		6,428,227
Total		49,290,278
Consumer
Staples – 2.8%
Beverages
- 0.2%
Crimson
Wine Group 3 , 4	58,124	525,441
Food Products
- 2.6%
Binggrae	18,078	1,147,397
Farmer
Bros. 2 , 3	47,200	1,286,200
John
B. Sanfilippo & Son	21,700	1,112,342
Landec
Corporation 3	75,610	882,369
Limoneira
Company	6,400	107,072
Seneca
Foods Cl. A 3	51,400	1,354,390
Seneca
Foods Cl. B 3	42,500	1,360,000
SunOpta 3	168,281	817,846
Waterloo
Investment Holdings 3 , 5	806,207	306,358
		8,373,974
Total		8,899,415
Energy
– 2.1%
Energy Equipment
& Services - 0.9%
Canadian
Energy Services & Technology	25,000	115,586
Dawson
Geophysical 3	93,654	356,822
Geospace
Technologies 1 , 2 , 3	9,500	131,195
Gulf
Island Fabrication	103,216	1,086,865
Matrix
Service 2 , 3	25,300	568,491
North
American Energy Partners	50,000	109,000
Pioneer
Energy Services 1 , 2 , 3	57,500	120,750
Tesco
Corporation 2	58,000	414,120
		2,902,829
Oil, Gas
& Consumable Fuels - 1.2%
Ardmore
Shipping	15,500	187,240
Dorchester
Minerals L.P.	94,127	1,361,076
Permian
Basin Royalty Trust	266,333	1,627,295
Resolute
Energy 1 , 2 , 3	102,100	39,615
StealthGas 3	132,203	593,591
		3,808,817
Total		6,711,646
Financials
– 20.0%
Banks - 2.3%
Bank
of N.T. Butterfield & Son	438,100	775,437
BCB
Holdings 3	543,900	45,253
Blue
Hills Bancorp	50,000	692,500
Bryn
Mawr Bank	25,000	776,750
Chemung
Financial 2	31,000	883,500
Fauquier
Bankshares 2	140,200	2,164,688
First
Bancorp (The)	40,200	767,820
Peapack-Gladstone
Financial	53,606	1,134,839
		7,240,787
Capital Markets
- 10.5%
ASA
Gold and Precious Metals	206,150	1,612,093
BHF
Kleinwort Benson Group 3	230,000	1,372,606
Cowen
Group 3	100,000	456,000
Diamond
Hill Investment Group 1 , 2	17,479	3,251,793
Dundee
Corporation Cl. A 3	220,000	1,421,057
Equity
Trustees	43,150	690,761
FBR
& Co.	51,684	1,055,387
Fiera
Capital Cl. A	78,000	696,710
Fifth
Street Asset Management Cl. A	269,503	2,013,187
INTL
FCStone 1 , 2 , 3	41,727	1,030,240
JZ
Capital Partners	253,999	1,552,388
Medley
Management Cl. A	163,400	1,081,708
MVC
Capital 1 , 2	387,400	3,180,554
Newtek
Business Services	58,500	961,155
OHA
Investment	230,820	976,369
Queen
City Investments 3 , 4	948	1,327,200
Silvercrest
Asset Management
Group
Cl. A	228,600	2,471,166
Sprott	1,268,333	2,252,491
U.S.
Global Investors Cl. A	676,254	1,169,919
Urbana
Corporation	237,600	357,869
Westwood
Holdings Group 2	34,700	1,885,945
ZAIS
Group Holdings Cl. A 1 , 2 , 3	292,160	2,752,147
		33,568,745
Consumer Finance
- 0.6%
EZCORP
Cl. A 1 , 2 , 3	201,000	1,240,170
J.G.
Wentworth Company Cl. A 3	160,000	788,800
		2,028,970
Diversified
Financial Services - 0.6%
Banca
Finnat Euramerica	1,310,000	724,756
GAIN
Capital Holdings	25,000	182,000
PICO
Holdings 1 , 2 , 3	45,700	442,376
Warsaw
Stock Exchange	52,900	531,364
		1,880,496
Insurance
- 2.9%
eHealth 1 , 2 , 3	100,000	1,281,000
Hallmark
Financial Services 3	114,000	1,309,860
Independence
Holding Company	105,380	1,365,725
National
Western Life Insurance Cl. A 1 , 2	7,033	1,566,249
State
Auto Financial 1 , 2	97,264	2,218,592
United
Fire Group 2	38,603	1,353,035
		9,094,461
Real Estate
Investment Trusts (REITs) - 0.5%
BRT
Realty Trust 3	230,331	1,633,047
Real Estate
Management & Development - 2.6%
AV
Homes 3	75,300	1,018,056
Forestar
Group 1 , 2 , 3	53,000	696,950
FRP
Holdings 1 , 2 , 3	88,381	2,663,803
Griffin
Industrial Realty	47,746	1,180,759
Hopefluent
Group Holdings	1,400,000	362,395
Marcus
& Millichap 3	1,800	82,782
Tejon
Ranch 1 , 2 , 3	112,162	2,446,253
Tejon
Ranch (Warrants) 3	13,146	2,103
		8,453,101
Total		63,899,607
Health
Care – 11.8%
Biotechnology
- 1.8%
Aquinox
Pharmaceuticals 3	18,622	262,011
ARIAD
Pharmaceuticals 1 , 2 , 3	114,102	666,356
Celsion
Corporation 3	115,555	192,977
ChemoCentryx 3	55,000	332,750
Fortress
Biotech 3	147,400	383,240
Sangamo
BioSciences 3	137,048	772,951
Zealand
Pharma 3	141,100	3,109,565
		5,719,850
Health Care
Equipment & Supplies - 4.6%
Allied
Healthcare Products 3	21,471	24,692
Analogic
Corporation	17,200	1,411,088
AngioDynamics 2 , 3	42,163	556,130
Atrion
Corporation 2	9,994	3,747,350
Cerus
Corporation 1 , 2 , 3	140,000	635,600
Cynosure
Cl. A 3	1,500	45,060
Derma
Sciences 3	74,958	353,052
Exactech 1 , 2 , 3	137,200	2,391,396
Inogen 3	5,400	262,170
Invacare
Corporation 2	44,300	641,021
STRATEC
Biomedical	14,000	814,153
Symmetry
Surgical 3	2,975	26,478
Syneron
Medical 3	69,200	494,780
TearLab
Corporation 3	100,000	201,000
Trinity
Biotech ADR Cl. A	81,600	933,504
Utah
Medical Products	38,100	2,052,447
		14,589,921
Health Care
Providers & Services - 3.7%
Aceto
Corporation 2	93,519	2,567,096
Addus
HomeCare 3	44,400	1,383,060
CorVel
Corporation 1 , 2 , 3	40,000	1,292,000
Cross
Country Healthcare 3	216,600	2,947,926
Landauer	32,343	1,196,368
National
Research Cl. A	40,033	477,994
PharMerica
Corporation 1 , 2 , 3	40,000	1,138,800
Psychemedics
Corporation	37,500	377,625
U.S.
Physical Therapy	12,600	565,614
		11,946,483
Health Care
Technology - 0.6%
Computer
Programs and Systems 2	24,000	1,011,120
HealthStream 3	24,227	528,391
Vocera
Communications 3	33,100	377,671
		1,917,182
Pharmaceuticals
- 1.1%
Agile
Therapeutics 1 , 2 , 3	80,000	539,200
Lipocine 3	90,467	1,070,224
Repros
Therapeutics 3	129,000	958,470
Theravance
Biopharma 3	83,509	917,764
		3,485,658
Total		37,659,094
Industrials
– 17.3%
Aerospace
& Defense - 0.6%
Breeze-Eastern
Corporation 3	24,233	338,777
CPI
Aerostructures 3	15,700	138,317
FLYHT
Aerospace Solutions 3	800,200	113,929
Innovative
Solutions and Support 3	142,828	387,064
Kratos
Defense & Security Solutions 3	72,324	305,207
SIFCO
Industries	45,800	506,548
		1,789,842
Air Freight
& Logistics - 0.2%
Frontier
Services Group 3	4,229,086	762,292
Building Products
- 1.8%
AAON 1 , 2	30,300	587,214
Apogee
Enterprises	31,900	1,424,335
Burnham
Holdings Cl. A 4	117,000	2,029,950
Insteel
Industries	60,500	972,840
Patrick
Industries 3	16,900	667,381
		5,681,720
Commercial
Services & Supplies - 1.3%
CompX
International Cl. A	107,500	1,181,425
Heritage-Crystal
Clean 1 , 2 , 3	235,077	2,414,241
Team 2 , 3	17,500	562,100
		4,157,766
Construction
& Engineering - 3.6%
Ameresco
Cl. A 3	295,700	1,738,716
Integrated
Electrical Services 3	570,682	4,405,665
Layne
Christensen 1 , 2 , 3	50,000	325,000
MYR
Group 1 , 2 , 3	96,800	2,536,160
Northwest
Pipe 3	98,100	1,281,186
Orbit
Garant Drilling 3	1,512,500	1,020,045
		11,306,772
Electrical
Equipment - 1.0%
Encore
Wire 2	18,400	601,128
Global
Power Equipment Group	55,649	204,232
LSI
Industries	99,012	835,661
Orion
Energy Systems 3	100,000	180,000
Powell
Industries	28,400	854,840
Preformed
Line Products	17,243	640,578
		3,316,439
Industrial
Conglomerates - 0.6%
Raven
Industries 2	103,400	1,752,630
Machinery
- 4.3%
ARC
Group Worldwide 2 , 3	39,250	70,650
CIRCOR
International 2	1,100	44,132
Columbus
McKinnon	5,300	96,248
Douglas
Dynamics	50,000	993,000
Eastern
Company (The)	39,750	643,950
Foster
(L.B.) Company 2	46,400	569,792
Graham
Corporation 1 , 2	86,150	1,520,548
Hurco
Companies	57,266	1,502,660
Kadant	34,300	1,338,043
Luxfer
Holdings ADR	27,812	300,091
NN	113,900	2,107,150
Pfeiffer
Vacuum Technology	21,000	2,419,989
Sun
Hydraulics	8,200	225,254
Tennant
Company 1 , 2	33,500	1,882,030
Twin
Disc	7,000	86,870
		13,800,407
Marine - 0.1%
Clarkson	13,000	401,293
Professional
Services - 2.1%
Acacia
Research 2	116,300	1,056,004
CBIZ 3	47,000	461,540
Franklin
Covey 2 , 3	68,400	1,098,504
Heidrick
& Struggles International	73,468	1,428,953
Kforce 2	3,200	84,096
Mistras
Group 3	4,100	52,685
Navigant
Consulting 3	5,100	81,141
Resources
Connection	60,160	906,611
RPX
Corporation 3	104,900	1,439,228
		6,608,762
Road &
Rail - 0.8%
Marten
Transport	3,300	53,361
Patriot
Transportation Holding 1 , 2 , 3	29,460	708,513
Universal
Truckload Services 1 , 2	120,800	1,880,856
		2,642,730
Trading Companies
& Distributors - 0.7%
Houston
Wire & Cable	162,075	1,027,555
Lawson
Products 3	47,769	1,034,199
MFC
Industrial 3	70,000	200,200
		2,261,954
Transportation
Infrastructure - 0.2%
Touax	53,197	745,048
Total		55,227,655
Information
Technology – 24.3%
Communications
Equipment - 1.3%
Alliance
Fiber Optic Products	48,900	835,701
Applied
Optoelectronics 1 , 2 , 3	7,500	140,850
Bel
Fuse Cl. A	67,705	1,116,455
CalAmp
Corporation 3	5,500	88,495
Ceragon
Networks 3	29,700	46,332
ClearOne	25,000	294,500
Extreme
Networks 3	320,000	1,075,200
KVH
Industries 3	8,900	89,000
Oclaro 3	27,900	64,170
PCTEL	44,100	265,041
Sandvine
Corporation 3	22,700	39,464
		4,055,208
Electronic
Equipment, Instruments & Components - 8.7%
Agilysys 3	170,587	1,896,927
Deswell
Industries	544,371	832,888
DTS 3	73,500	1,962,450
Fabrinet 3	2,200	40,326
FARO
Technologies 1 , 2 , 3	60,000	2,100,000
HollySys
Automation Technologies	80,200	1,401,896
Inficon
Holding	3,600	1,006,444
LRAD
Corporation 3	523,056	873,503
Mercury
Systems 3	47,500	755,725
Mesa
Laboratories 1 , 2	32,689	3,641,555
Newport
Corporation 1 , 2 , 3	204,423	2,810,816
Orbotech 1 , 2 , 3	127,800	1,974,510
PC
Connection	43,716	906,233
Perceptron 3	8,500	64,515
Richardson
Electronics	330,900	1,949,001
Rofin-Sinar
Technologies 3	71,100	1,843,623
Rogers
Corporation 1 , 2 , 3	14,700	781,746
TTM
Technologies 1 , 2 , 3	179,400	1,117,662
Vishay
Precision Group 3	158,000	1,831,220
		27,791,040
Internet Software
& Services - 4.1%
Care.com 1 , 2 , 3	390,854	2,008,989
Marchex
Cl. B	95,000	382,850
QuinStreet 3	372,400	2,066,820
Qumu
Corporation 3	161,800	634,256
RealNetworks 3	244,000	997,960
Reis	25,000	566,250
SciQuest 3	108,000	1,080,000
Stamps.com 3	10,800	799,308
Support.com 3	1,357,663	1,520,583
Textura
Corporation 1 , 2 , 3	76,200	1,969,008
United
Online 3	112,700	1,127,000
		13,153,024
IT Services
- 2.0%
Cass
Information Systems 2	29,150	1,432,140
Computer
Task Group 2	280,133	1,734,023
Hackett
Group (The)	153,000	2,103,750
Innodata 3	437,275	1,018,851
Sykes
Enterprises 3	4,200	107,100
		6,395,864
Semiconductors
& Semiconductor Equipment - 3.7%
Amtech
Systems 3	140,600	604,580
Brooks
Automation 1 , 2	131,200	1,536,352
Cascade
Microtech 3	105,200	1,487,528
Exar
Corporation 3	121,208	721,187
Intermolecular 3	260,000	491,400
IXYS
Corporation	18,800	209,808
Kulicke
& Soffa Industries 3	88,000	807,840
MoSys 1 , 2 , 3	402,275	599,390
Nanometrics 3	50,800	616,712
Nova
Measuring Instruments 3	102,600	987,012
Photronics 3	243,500	2,206,110
Silicon
Motion Technology ADR	32,700	893,037
Ultra
Clean Holdings 3	57,000	327,180
Xcerra
Corporation 3	26,200	164,536
		11,652,672
Software -
3.4%
American
Software Cl. A	122,752	1,156,324
BSQUARE
Corporation 3	98,675	652,242
Computer
Modelling Group	276,500	2,347,504
ePlus 3	17,199	1,359,925
Gigamon 3	3,600	72,036
Model
N 3	65,000	650,650
PSI 3	34,000	456,020
Rubicon
Project 3	60,500	879,065
SeaChange
International 3	274,000	1,726,200
TiVo 3	122,600	1,061,716
VASCO
Data Security International 3	22,200	378,288
		10,739,970
Technology
Hardware, Storage & Peripherals - 1.1%
Avid
Technology 3	7,600	60,496
Intevac 3	251,700	1,157,820
Kortek	135,007	1,631,706
Kortek
(Rights) 3 , 5	27,870	76,417
TransAct
Technologies	78,600	716,046
		3,642,485
Total		77,430,263
Materials
– 6.1%
Chemicals
- 1.4%
Balchem
Corporation 1 , 2	11,775	715,567
Chase
Corporation	3	118
FutureFuel
Corporation	102,000	1,007,760
Hawkins 2	19,866	764,841
Quaker
Chemical 2	27,400	2,111,992
		4,600,278
Construction
Materials - 0.7%
Ash
Grove Cement 4	8,000	1,608,000
Monarch
Cement 4	16,303	489,253
		2,097,253
Containers
& Packaging - 0.5%
UFP
Technologies 3	70,736	1,616,317
Metals &
Mining - 3.5%
Alamos
Gold Cl. A	46,044	170,444
Ampco-Pittsburgh	91,820	1,001,756
Central
Steel & Wire 4	788	489,348
Comstock
Mining 3	615,000	381,300
Exeter
Resource 3	246,500	78,880
Haynes
International 2	49,901	1,888,254
Hecla
Mining	44,518	87,701
Horsehead
Holding Corporation 1 , 2 , 3	11,900	36,176
Imdex 3	602,290	78,323
MAG
Silver 3	96,050	683,876
Major
Drilling Group International	686,857	2,290,381
Materion
Corporation	50,000	1,501,000
Olympic
Steel	100,000	995,000
Pretium
Resources 3	90,000	544,923
Universal
Stainless & Alloy Products 3	73,600	778,688
Victoria
Gold 3	550,000	53,578
		11,059,628
Total		19,373,476
Telecommunication
Services – 0.1%
Diversified
Telecommunication Services - 0.1%
ORBCOMM 3	45,800	255,564
Total		255,564
Utilities
– 0.3%
Gas Utilities
- 0.1%
Shizuoka
Gas	40,000	260,756
Independent
Power & Renewable Electricity Producer - 0.0%
Alterra
Power 3	450,000	141,626
Water Utilities
- 0.2%
GWR
Global Water Resources	106,000	523,447
Total		925,829
Miscellaneous 6 – 4.6%
Total		14,739,998
TOTAL COMMON
STOCKS
(Cost $345,860,806)		334,412,825
PREFERRED
STOCK – 0.4%
Seneca
Foods Conv. 3 , 4
(Cost $578,719)	45,409	1,150,664
REPURCHASE
AGREEMENT – 12.4%
Fixed Income
Clearing Corporation,
0.00%
dated 9/30/15, due 10/1/15,
maturity
value $39,758,000 (collateralized
by
obligations of various U.S. Government
Agencies,
2.00% due 10/31/21, valued at
$40,557,400)
(Cost $39,758,000)		39,758,000
TOTAL INVESTMENTS
– 117.6%
(Cost $386,197,525)		375,321,489
LIABILITIES
LESS CASH
AND OTHER ASSETS – (17.6)%		(56,126,531	)
NET ASSETS
– 100.0%		$ 319,194,958

| 1 | At September
30, 2015, a portion of these securities were rehypothecated in connection with the
Fund’s revolving credit agreement in the aggregate amount of $57,855,248. |
| --- | --- |
| 2 | All or a portion
of these securities were pledged as collateral in connection with the revolving
credit agreement at September 30, 2015. Total market value of pledged securities
at September 30, 2015, was $94,445,690. |
| 3 | Non-income
producing. |
| 4 | These securities
are defined as Level 2 securities due to fair value being based on quoted prices
for similar securities. |
| 5 | Securities
for which market quotations are not readily available represent 0.1% of net assets.
These securities have been valued at their fair value under procedures approved
by the Fund’s Board of Directors. These securities are defined as Level 3 securities
due to the use of significant unobservable inputs in the determination of fair value. |
| 6 | Includes securities
first acquired in 2015 and less than 1% of net assets. |

TAX INFORMATION: The cost of total investments for Federal income tax purposes was $387,104,512. At September 30, 2015, net unrealized depreciation for all securities was $11,783,023, consisting of aggregate gross unrealized appreciation of $64,114,285 and aggregate gross unrealized depreciation of $75,897,308. The primary difference between book and tax basis cost is the timing of the recognition of losses on securities sold.

| Valuation
of Investments: |
| --- |
| Investment
transactions are accounted for on the trade date. Securities are valued as of the
close of trading on the New York Stock Exchange (NYSE) (generally 4:00 p.m. Eastern
time) on the valuation date. Securities that trade on an exchange, and securities
traded on Nasdaq’s Electronic Bulletin Board, are valued at their last reported
sales price or Nasdaq official closing price taken from the primary market in which
each security trades or, if no sale is reported for such day, at their highest bid
price. Other over-the-counter securities for which market quotations are readily
available are valued at their highest bid price, except in the case of some bonds
and other fixed income securities which may be valued by reference to other securities
with comparable ratings, interest rates and maturities, using established independent
pricing services. The Fund values its non-U.S. dollar denominated securities in
U.S. dollars daily at the prevailing foreign currency exchange rates as quoted by
a major bank. Securities for which market quotations are not readily available are
valued at their fair value in accordance with the provisions of the 1940 Act, under
procedures approved by the Fund’s Board of Directors, and are reported as Level
3 securities. As a general principle, the fair value of a security is the amount
which the Fund might reasonably expect to receive for the security upon its current
sale. However, in light of the judgment involved in fair valuations, there can be
no assurance that a fair value assigned to a particular security will be the amount
which the Fund might be able to receive upon its current sale. In addition, if,
between the time trading ends on a particular security and the close of the customary
trading session on the NYSE, events occur that are significant and may make the
closing price unreliable, the Fund may fair value the security. The Fund uses an
independent pricing service to provide fair value estimates for relevant non-U.S.
equity securities on days when the U.S. market volatility exceeds a certain threshold.
This pricing service uses proprietary correlations it has developed between the
movement of prices of non-U.S. equity securities and indices of U.S.- traded securities,
futures contracts and other indications to estimate the fair value of relevant non-U.S.
securities. When fair value pricing is employed, the prices of securities used by
the Fund may differ from quoted or published prices for the same security. Investments
in money market funds are valued at net asset value per share. |
| Various inputs
are used in determining the value of the Fund’s investments, as noted above.
These inputs are summarized in the three broad levels below: |

| Level 1 | – | quoted prices
in active markets for identical securities. |
| --- | --- | --- |
| Level 2 | – | other significant
observable inputs (including quoted prices for similar securities, foreign securities
that may be fair valued and repurchase agreements). The table below includes all
Level 2 securities. Level 2 securities with values based on quoted prices for similar
securities are noted in the Schedule of Investments. |
| Level 3 | – | significant
unobservable inputs (including last trade price before trading was suspended, or
at a discount thereto for lack of marketability or otherwise, market price information
regarding other securities, information received from the company and/or published
documents, including SEC filings and financial statements, or other publicly available
information). |

| The inputs
or methodology used for valuing securities are not necessarily an indication of
the risk associated with investing in those securities. |
| --- |
| The following
is a summary of the inputs used to value the Fund’s investments as of September
30, 2015. For a detailed breakout of common stocks by sector classification, please
refer to the Schedule of Investments. |

	Level 1	Level 2	Level 3	Total
Common Stocks	$304,542,859	$29,487,191	$382,775	$334,412,825
Preferred
Stocks	–	1,150,664	–	1,150,664
Cash Equivalents	–	39,758,000	–	39,758,000
Level 3 Reconciliation:

| | | | Realized
and | |
| --- | --- | --- | --- | --- |
| | | | Unrealized | |
| | Balance
as of 12/31/14 | Sales | Gain (Loss) | Balance
as of 9/30/15 |
| Common Stocks | $325,702 | $1 | $57,074 | $382,775 |

| Repurchase
Agreements: |
| --- |
| The Fund may
enter into repurchase agreements with institutions that the Fund’s investment
adviser has determined are creditworthy. The Fund restricts repurchase agreements
to maturities of no more than seven days. Securities pledged as collateral for repurchase
agreements, which are held until maturity of the repurchase agreements, are marked-to-market
daily and maintained at a value at least equal to the principal amount of the repurchase
agreement (including accrued interest). Repurchase agreements could involve certain
risks in the event of default or insolvency of the counter-party, including possible
delays or restrictions upon the ability of the Fund to dispose of its underlying
securities. |
| Borrowings: |
| The Fund has
entered into a revolving credit agreement (the credit agreement) with BNP Paribas
Prime Brokerage Inc. (BNPP). As of September 30, 2015, the Fund has outstanding
borrowings of $60,000,000. During the period ended September 30, 2015, the Fund borrowed
an average daily balance of $60,000,000. The Fund pays a commitment fee of 0.50%
per annum on the unused portion of the credit agreement. The credit agreement has
a 360-day rolling term that resets daily; however, if the Fund exceeds certain net
asset value triggers, the credit agreement may convert to a 60-day rolling term
that resets daily. The Fund is required to pledge portfolio securities as collateral
in an amount up to two times the loan balance outstanding and has granted a security
interest in the securities pledged to, and in favor of, BNPP as security for the
loan balance outstanding. If the Fund fails to meet certain requirements, or maintain
other financial covenants required under the credit agreement, the Fund may be required
to repay immediately, in part or in full, the loan balance outstanding under the
credit agreement necessitating the sale of portfolio securities at potentially inopportune
times. The credit agreement also permits, subject to certain conditions, BNPP to
rehypothecate portfolio securities pledged by the Fund up to the amount of the loan
balance outstanding. The Fund continues to receive payments in lieu of dividends
and interest on rehypothecated securities. The Fund also has the right under the
credit agreement to recall the rehypothecated securities from BNPP on demand. If
BNPP fails to deliver the recalled security in a timely manner, the Fund is compensated
by BNPP for any fees or losses related to the failed delivery or, in the event a
recalled security is not returned by BNPP, the Fund, upon notice to BNPP, may reduce
the loan balance outstanding by the amount of the recalled security failed to be
returned. The Fund receives a portion of the fees earned by BNPP in connection with
the rehypothecation of portfolio securities. |

Other information regarding the Fund is available in the Fund’s most recent Report to Stockholders. This information is available through The Royce Funds ( www.roycefunds.com ) and on the Securities and Exchange Commission’s website (www.sec.gov).

page

Item 2 - Controls and Procedures (a) The Registrant’s principal executive and principal financial officers have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report (as required by Rule 30a-3(b) under the Investment Company Act of 1940 (the “Act”)), that the Registrant’s disclosure controls and procedures (as defined by Rule 30a-3(c) under the Act) are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-Q is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-Q is accumulated and communicated to the Registrant’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) during the Registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the internal control over financial reporting.

Item 3 - Exhibits Certifications pursuant to Rule 30a-2(a) under the Act are attached hereto.

page

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Royce Micro-Cap Trust, Inc. By:

| /s/ Christopher
D. Clark |
| --- |
| Christopher
D. Clark |
| President,
Royce Micro-Cap Trust, Inc. |
| Date: November
20, 2015 |

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By:
/s/ Christopher
D. Clark
Christopher
D. Clark
President, Royce Micro-Cap Trust, Inc.
Date: November
20, 2015
By:
/s/ Peter
K. Hoglund
Peter K. Hoglund
Treasurer, Royce Micro-Cap Trust, Inc.
Date: November
20, 2015