N-Q 1 e91686.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: 12/31/2009

Date of reporting period: 9/30/2009


Item 1 - Schedule of Investments

SCHEDULE OF INVESTMENTS
ROYCE MICRO-CAP TRUST
SEPTEMBER 30, 2009 (UNAUDITED)

    SHARES     VALUE  
COMMON STOCKS – 106.6%            
             
Consumer Products – 7.0%            
Apparel, Shoes and Accessories - 2.1%            

K-Swiss Cl. A a

   47,400   $ 416,646  

Movado Group

   167,140     2,428,544  

Steven Madden a

   10,300     379,143  

True Religion Apparel a,b

   12,300     318,939  

Weyco Group

   48,000     1,099,200  

Yamato International

   40,000     179,135  
       
          4,821,607  
       
Consumer Electronics - 0.6%            

DTS a

   50,000     1,369,000  
       
Food/Beverage/Tobacco - 1.5%            

Heckmann Corporation a,b

   200,000     916,000  

Seneca Foods Cl. A a

   51,400     1,408,360  

Seneca Foods Cl. B a

   42,500     1,192,550  
       
          3,516,910  
       
Health, Beauty and Nutrition - 0.2%            

NutriSystem

   37,700     575,302  
       
Home Furnishing and Appliances - 2.6%            

American Woodmark

   72,000     1,392,480  

Ethan Allen Interiors

   66,600     1,098,900  

Flexsteel Industries

   172,500     1,447,275  

Lumber Liquidators a,b

   29,900     648,531  

Natuzzi ADR a

   409,800     1,122,852  

Universal Electronics a

   21,000     428,820  
       
          6,138,858  
       
Total         16,421,677  
       
Consumer Services – 3.9%            
Online Commerce - 0.5%            

Alloy a

   36,002     243,733  

CryptoLogic

   88,300     521,853  

Knot (The) a

   10,000     109,200  

1-800-FLOWERS.COM Cl. A a

   59,140     204,033  
       
          1,078,819  
       
Restaurants and Lodgings - 0.0%            

Benihana Cl. A a

   16,300     93,399  
       
Retail Stores - 3.3%            

America’s Car-Mart a

   92,800     2,222,560  

Build-A-Bear Workshop a,b

   7,600     37,012  

Charming Shoppes a,b

   316,200     1,552,542  

China Nepstar Chain Drugstore ADR

   34,700     210,976  

dELiA*s a

   75,000     161,250  

DSW Cl. A a,b

   18,500     295,445  

Le Chateau Cl. A

   27,900     323,131  

Stein Mart a,b

   178,900     2,273,819  

West Marine a

   86,000     675,960  
       
          7,752,695  
       
Other Consumer Services - 0.1%            

Shutterfly a,b

   10,000     166,300  
       
Total         9,091,213  
       
Diversified Investment Companies – 0.9%            
Closed-End Funds - 0.9%            

Central Fund of Canada Cl. A

   131,700     1,745,025  

Urbana Corporation a

   237,600     366,170  
       
Total         2,111,195  
       
Financial Intermediaries – 9.0%            
Banking - 4.3%            

Alliance Bancorp, Inc. of Pennsylvania

   50,420     438,150  

B of I Holding a,b

   100,000     842,000  

BCB Holdings a

   806,207     1,578,340  

Cass Information Systems

   15,000     447,900  

Centrue Financial

   66,600     251,748  

CFS Bancorp

   75,000     355,500  

Chemung Financial

   40,000     818,000  

Commercial National Financial

   20,000     316,600  

Fauquier Bankshares

   135,800     1,967,742  

Financial Institutions

   36,000     358,920  

First Bancorp

   40,200     747,720  

HopFed Bancorp

   61,000     625,250  

LCNB Corporation

   30,000     329,700  

Wilber Corporation (The)

   126,850     1,065,540  
       
          10,143,110  
       
Insurance - 1.0%            

Greenlight Capital Re Cl. A a

   13,500     253,800  

Hilltop Holdings a

   121,400     1,488,364  

Independence Holding

   95,800     563,304  
       
          2,305,468  
       
Real Estate Investment Trusts - 0.2%            

Vestin Realty Mortgage II a

   184,391     532,890  
       
Securities Brokers - 3.0%            

Cowen Group a

   123,600     880,032  

Diamond Hill Investment Group a

   8,000     463,760  

FBR Capital Markets a,b

   366,600     2,173,938  

International Assets Holding a,b

   12,000     198,120  

Sanders Morris Harris Group

   199,000     1,176,090  

Thomas Weisel Partners Group a

   376,200     2,008,908  
       
          6,900,848  
       
Securities Exchanges - 0.5%            

Bolsa Mexicana de Valores a

   948,500     1,173,590  
       
Total         21,055,906  
       
Financial Services – 8.6%            
Diversified Financial Services - 0.8%            

Encore Capital Group a

   32,000     430,400  

FCStone Group a

   18,000     86,760  

World Acceptance a,b

   56,251     1,418,088  
       
          1,935,248  
       
Information and Processing - 0.4%            

Value Line

   32,487     1,002,874  
       
Insurance Brokers - 0.1%            

Western Financial Group

   148,000     312,408  
       
Investment Management - 4.3%            

BKF Capital Group a

   130,200     131,502  

Dundee Corporation Cl. A a,b

   140,200     1,461,385  

Endeavour Financial b

   393,200     613,313  

Epoch Holding Corporation

   196,500     1,719,375  

Evercore Partners Cl. A

   13,600     397,392  

JZ Capital Partners

   210,666     870,308  

MVC Capital

   136,200     1,195,836  

Queen City Investments a

   948     1,042,800  

Sceptre Investment Counsel

   78,000     404,334  

U.S. Global Investors Cl. A

   91,500     1,128,195  

VZ Holding

   15,000     1,088,488  
       
          10,052,928  
       
Special Purpose Acquisition Corporation - 2.8%            

Prospect Acquisition a

   500,000     4,950,000  

Prospect Acquisition (Units) a

   50,000     514,000  

Shellproof a

   39,192     18,790  

Westway Group

   220,000     990,000  
       
          6,472,790  
       
Specialty Finance - 0.2%            

NGP Capital Resources

   68,080     494,261  
       
Total         20,270,509  
       
Health – 8.4%            
Commercial Services - 0.5%            

PAREXEL International a

   40,000     543,600  

PDI a,b

   104,800     479,984  
       
          1,023,584  
       
Drugs and Biotech - 1.1%            

Anadys Pharmaceuticals a

   65,400     172,002  

Hi-Tech Pharmacal a

   24,200     543,048  

Simcere Pharmaceutical Group ADR a,b

   25,700     204,572  

Sinovac Biotech a,b

   25,000     207,250  

Strategic Diagnostics a

   150,000     264,000  

Theragenics Corporation a

   306,900     491,040  

ViroPharma a

   77,000     740,740  
       
          2,622,652  
       
Health Services - 2.3%            

Advisory Board (The) a

   51,700     1,299,738  

Air Methods a,b

   8,007     260,788  

Computer Programs and Systems

   3,800     157,358  

eResearch Technology a

   127,000     889,000  

Gentiva Health Services a

   23,000     575,230  

HMS Holdings a,b

   11,900     454,937  

On Assignment a

   41,100     240,435  

PharMerica Corporation a,b

   40,000     742,800  

Psychemedics Corporation

   37,500     232,500  

Res-Care a

   28,980     411,806  

U.S. Physical Therapy a

   10,000     150,700  
       
          5,415,292  
       
Medical Products and Devices - 4.5%            

Allied Healthcare Products a

   226,798     1,065,951  

Atrion Corporation

   5,500     794,200  

CAS Medical Systems a,b

   62,600     95,152  

Cynosure Cl. A a

   18,500     215,525  

Exactech a,b

   121,000     1,904,540  

Kensey Nash a

   20,000     579,000  

Medical Action Industries a

   125,250     1,511,767  

MEDTOX Scientific a

   20,000     182,000  

NMT Medical a

   228,500     470,710  

Palomar Medical Technologies a

   8,000     129,680  

Syneron Medical a

   69,200     789,572  

Utah Medical Products

   42,300     1,240,236  

Young Innovations

   61,450     1,616,749  
       
          10,595,082  
       
Total         19,656,610  
       
Industrial Products – 20.5%            
Automotive - 0.9%            

Norstar Founders Group a,c

   771,500     36,335  

SORL Auto Parts a

   48,810     251,372  

US Auto Parts Network a,b

   280,900     1,530,905  

Wonder Auto Technology a

   26,000     312,000  
       
          2,130,612  
       
Building Systems and Components - 2.4%            

AAON

   73,000     1,465,840  

Apogee Enterprises

   57,900     869,658  

Drew Industries a,b

   90,000     1,952,100  

LSI Industries

   79,812     530,750  

NCI Building Systems a,b

   42,000     134,400  

Preformed Line Products

   16,000     640,800  
       
          5,593,548  
       
Construction Materials - 2.0%            

Ash Grove Cement

   8,000     1,352,000  

Louisiana-Pacific Corporation a

   25,000     166,750  

Monarch Cement

   52,303     1,642,314  

Trex Company a,b

   90,000     1,638,000  
       
          4,799,064  
       
Industrial Components - 1.6%            

Deswell Industries b

   574,371     2,211,328  

Graham Corporation

   34,500     536,475  

Powell Industries a

   26,800     1,028,852  
       
          3,776,655  
       
Machinery - 5.7%            

Burnham Holdings Cl. A

   95,000     1,016,500  

Columbus McKinnon a

   10,100     153,015  

Eastern Company (The)

   39,750     632,025  

Flow International a

   40,000     103,600  

FreightCar America

   11,000     267,300  

Hardinge

   260,000     1,612,000  

Hollysys Automation Technologies a

   185,192     1,757,472  

Hurco Companies a

   56,666     967,855  

Jinpan International

   26,112     835,845  

K-Tron International a

   8,426     802,240  

Sun Hydraulics

   65,425     1,377,851  

Tennant Company

   92,300     2,682,238  

Williams Controls a

   125,000     1,122,500  
       
          13,330,441  
       
Metal Fabrication and Distribution - 3.0%            

Central Steel & Wire

   1,088     707,200  

CompX International Cl. A

   107,500     780,450  

Encore Wire

   15,000     335,100  

Foster (L.B.) Company Cl. A a

   11,100     339,438  

Friedman Industries

   2,025     12,150  

Fushi Copperweld a,b

   36,583     309,492  

Haynes International a

   3,100     98,642  

Ladish Company a

   45,000     680,850  

NN a

   114,300     530,352  

Olympic Steel

   22,000     631,180  

RTI International Metals a

   101,900     2,538,329  
       
          6,963,183  
       
Miscellaneous Manufacturing - 1.9%            

AZZ a

   2,000     80,340  

PMFG a

   143,800     1,849,268  

Quixote Corporation a,b

   183,400     456,666  

Raven Industries

   58,400     1,561,032  

Synalloy Corporation

   58,200     552,318  
       
          4,499,624  
       
Pumps, Valves and Bearings - 0.2%            

CIRCOR International

   14,000     395,640  
       
Specialty Chemicals and Materials - 2.3%            

Aceto Corporation

   72,219     476,645  

Balchem Corporation

   42,250     1,111,175  

Hawkins

   69,866     1,632,070  

Park Electrochemical

   15,400     379,610  

Rogers Corporation a

   58,400     1,750,248  
       
          5,349,748  
       
Textiles - 0.4%            

Interface Cl. A

   27,000     224,100  

J.G. Boswell Company

   1,490     715,200  
       
          939,300  
       
Other Industrial Products - 0.1%            

Research Frontiers a,b

   50,000     206,000  
       
Total         47,983,815  
       
Industrial Services – 12.6%            
Advertising and Publishing - 0.2%            

Voyager Learning a,b

   125,000     571,250  
       
Commercial Services - 4.8%            

Acacia Research-Acacia Technologies a

   72,290     629,646  

ATC Technology a

   25,200     497,952  

CBIZ a

   47,000     350,620  

Diamond Management & Technology Consultants

   138,100     945,985  

Forrester Research a

   54,900     1,462,536  

Global Sources a

   33,330     228,977  

Heidrick & Struggles International

   10,000     232,600  

Heritage-Crystal Clean a,b

   118,283     1,508,109  

Kforce a

   55,000     661,100  

Rentrak Corporation a

   13,300     237,538  

Spherion Corporation a

   436,600     2,711,286  

Team a

   79,400     1,345,830  

Waste Services a

   79,352     366,606  
       
          11,178,785  
       
Engineering and Construction - 2.1%            

Cavco Industries a

   9,400     333,700  

Exponent a

   58,400     1,645,128  

Insituform Technologies Cl. A a,b

   34,300     656,502  

Integrated Electrical Services a

   132,000     1,062,600  

Layne Christensen a,b

   11,700     374,985  

Skyline Corporation

   32,100     724,176  

Sterling Construction a

   11,700     209,547  
       
          5,006,638  
       
Food, Tobacco and Agriculture - 1.1%            

Cal-Maine Foods b

   22,500     602,325  

Farmer Bros.

   42,400     877,680  

Hanfeng Evergreen a

   25,000     141,503  

Origin Agritech a

   180,688     879,950  

Zhongpin a,b

   12,300     181,056  
       
          2,682,514  
       
Industrial Distribution - 1.0%            

Houston Wire & Cable

   67,375     744,494  

Lawson Products

   63,800     1,110,758  

Toshin Group

   20,000     374,311  
       
          2,229,563  
       
Printing - 0.7%            

Bowne & Co.

   68,989     531,215  

Courier Corporation

   30,450     461,317  

CSS Industries

   18,043     356,710  

Multi-Color Corporation

   24,664     380,566  
       
          1,729,808  
       
Transportation and Logistics - 2.6%            

Forward Air

   50,700     1,173,705  

Frozen Food Express Industries

   157,000     460,010  

Marten Transport a

   8,550     145,863  

Pacer International a

   35,000     135,100  

Patriot Transportation Holding a,b

   19,000     1,434,500  

Transat A.T. Cl. B a

   37,000     583,692  

Universal Truckload Services

   134,200     2,215,642  
       
          6,148,512  
       
Other Industrial Services - 0.1%            

American Ecology

   6,000     112,200  
       
Total         29,659,270  
       
Natural Resources – 11.2%            
Energy Services - 4.3%            

CE Franklin a,b

   67,650     464,079  

Dawson Geophysical a

   53,213     1,456,972  

Dril-Quip a

   22,500     1,116,900  

Gulf Island Fabrication

   29,116     545,634  

ION Geophysical a

   93,500     329,120  

Lufkin Industries

   1,000     53,180  

North American Energy Partners a

   50,000     300,000  

OYO Geospace a,b

   7,130     184,168  

Pason Systems

   139,200     1,618,680  

Pioneer Drilling a

   57,500     422,050  

T-3 Energy Services a

   29,150     574,255  

Tesco Corporation a

   50,000     399,000  

Willbros Group a

   159,200     2,424,616  

World Energy Solutions a

   72,920     239,178  
       
          10,127,832  
       
Oil and Gas - 0.4%            

Approach Resources a

   12,000     108,960  

GeoMet a,b

   75,000     126,750  

GeoResources a,b

   30,000     331,500  

Rosetta Resources a

   30,000     440,700  
       
          1,007,910  
       
Precious Metals and Mining - 3.5%            

Alamos Gold a

   47,100     414,404  

Allied Nevada Gold a

   123,700     1,211,023  

Aurizon Mines a,b

   197,000     858,920  

Brush Engineered Materials a

   27,000     660,420  

Chesapeake Gold a

   20,000     79,018  

Exeter Resource a,b

   210,000     961,800  

Gammon Gold a

   83,836     713,444  

Golden Star Resources a,b

   168,100     566,497  

Horsehead Holding Corporation a

   13,800     161,736  

Midway Gold a

   345,000     241,676  

Minefinders Corporation a

   36,000     350,640  

New Gold a

   141,200     535,148  

Northgate Minerals a

   270,000     723,600  

Seabridge Gold a

   16,700     477,620  

Victoria Gold a

   200,000     83,127  

Vista Gold a,b

   50,000     119,000  
       
          8,158,073  
       
Real Estate - 3.0%            

Avatar Holdings a

   45,104     856,976  

Consolidated-Tomoka Land

   29,100     1,114,530  

Kennedy-Wilson a,b

   21,500     797,650  

PICO Holdings a

   45,700     1,524,095  

Pope Resources L.P.

   48,505     1,168,485  

Tejon Ranch a,b

   54,000     1,386,720  

ZipRealty a

   25,000     105,000  
       
          6,953,456  
       
Total         26,247,271  
       
Technology – 19.5%            
Aerospace and Defense - 2.2%            

Ducommun

   72,100     1,363,411  

HEICO Corporation

   33,600     1,456,896  

Innovative Solutions and Support a

   100,000     501,000  

Integral Systems a

   171,682     1,184,606  

SIFCO Industries a

   45,800     673,260  
       
          5,179,173  
       
Components and Systems - 3.9%            

Frequency Electronics a

   275,000     1,273,250  

Methode Electronics

   206,400     1,789,488  

Newport Corporation a

   55,900     489,684  

OPTEX Company

   35,000     431,237  

Richardson Electronics

   250,900     1,279,590  

Rimage Corporation a

   79,200     1,353,528  

Silicon Graphics International a

   90,000     603,900  

Technitrol

   150,000     1,381,500  

TransAct Technologies a

   78,600     416,580  
       
          9,018,757  
       
Distribution - 0.3%            

Agilysys

   90,000     593,100  

ScanSource a,b

   7,600     215,232  
       
          808,332  
       
Internet Software and Services - 1.0%            

ActivIdentity Corporation a,b

   110,000     304,700  

DealerTrack Holdings a

   31,000     586,210  

iPass

   210,000     289,800  

Marchex Cl. B

   138,200     678,562  

WebMediaBrands a

   525,000     378,000  
       
          2,237,272  
       
IT Services - 4.7%            

AsiaInfo Holdings a

   14,200     283,574  

Computer Task Group a

   256,100     2,076,971  

iGATE Corporation

   258,400     2,217,072  

Sapient Corporation a

   500,000     4,020,000  

Syntel

   43,300     2,066,709  

Yucheng Technologies a

   55,060     394,780  
       
          11,059,106  
       
Semiconductors and Equipment - 2.9%            

Advanced Energy Industries a

   7,600     108,224  

ATMI a

   6,400     116,160  

Coherent a

   34,000     792,880  

Exar Corporation a

   121,208     890,879  

Ikanos Communications a

   75,000     174,750  

Micrel

   80,000     652,000  

Microtune a

   362,000     658,840  

PLX Technology a

   80,000     269,600  

Rofin-Sinar Technologies a

   37,000     849,520  

TTM Technologies a

   114,400     1,312,168  

Virage Logic a,b

   200,000     1,042,000  
       
          6,867,021  
       
Software - 3.0%            

ACI Worldwide a

   69,600     1,053,048  

American Software Cl. A

   63,700     415,961  

Bottomline Technologies a

   28,600     368,940  

Double-Take Software a

   22,400     228,256  

Fundtech a

   51,000     592,620  

Pegasystems

   84,000     2,900,520  

Phoenix Technologies a,b

   32,310     117,931  

PLATO Learning a

   160,000     691,200  

SourceForge a,b

   600,000     756,000  
       
          7,124,476  
       
Telecommunications - 1.5%            

Anaren a

   8,000     136,000  

Atlantic Tele-Network

   14,700     785,274  

Cogo Group a,b

   11,700     71,604  

Diguang International Development a

   230,000     57,500  

Globecomm Systems a

   22,730     165,247  

PC-Tel a

   44,100     275,625  

ViaSat a

   46,812     1,244,263  

Zhone Technologies a

   1,331,600     665,800  
       
          3,401,313  
       
Total         45,695,450  
       
Miscellaneous d – 5.0%            
Total         11,664,315  
       
TOTAL COMMON STOCKS            

(Cost $200,930,450)

         249,857,231  
       
PREFERRED STOCK – 0.5%            

Seneca Foods Conv. a

            

(Cost $578,719)

   45,409     1,271,452  
       
REPURCHASE AGREEMENT – 18.9%            
State Street Bank & Trust Company,            

0.01% dated 9/30/09, due 10/1/09,

            

maturity value $44,250,012 (collateralized

            

by obligations of various U.S. Government

            

Agencies, 3.625% due 10/18/13, valued at

            

$45,357,750)

            

(Cost $44,250,000)

         44,250,000  
       
COLLATERAL RECEIVED FOR SECURITIES LOANED – 4.8%            
Money Market Funds            

Federated Government Obligations Fund

            

(7 day yield-0.1287%)

            

(Cost $11,187,924)

         11,187,924  
       
TOTAL INVESTMENTS – 130.8%            

(Cost $256,947,093)

         306,566,607  
             
LIABILITIES LESS CASH AND OTHER ASSETS – (5.2)%         (12,203,665 )
             
PREFERRED STOCK – (25.6)%         (60,000,000 )
       
NET ASSETS APPLICABLE TO COMMON STOCKHOLDERS – 100.0%       $ 234,362,942  
       

a   Non-income producing.
b  
All or a portion of these securities were on loan at September 30, 2009. Total market value of loaned securities at September 30, 2009 was $10,737,792.
c  
A security for which market quotations are not readily available represents 0.0% of net assets. This security has been valued at its fair value under procedures established by the Fund’s Board of Directors.
d  
Includes securities first acquired in 2009 and less than 1% of net assets applicable to Common Stockholders.

TAX INFORMATION:  The cost of total investments for Federal income tax purposes was $257,430,582. At September 30, 2009, net unrealized appreciation for all securities was $49,136,025, consisting of aggregate gross unrealized appreciation of $79,543,150 and aggregate gross unrealized depreciation of $30,407,125. 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 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 under procedures established by the Fund’s Board of Directors. 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)
 

Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
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, 2009:
    Level 1   Level 2   Level 3   Total  

Equities

   $224,801,829   $26,290,519   $36,335   $251,128,683  

Cash Equivalents

       55,437,924       55,437,924  
 
Level 3 Reconciliation:                  

        Change in                    
        unrealized                    
    Balance as of   appreciation               Realized Gain   Balance as of
    12/31/08   (depreciation)   Purchases   Transfers In   Sales   (Loss)   9/30/09

Equities

   -   $168,034   $23,754   $74,554   $3   $(230,004)   $36,335

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.

Securities Lending:
The Fund loans securities to qualified institutional investors for the purpose of realizing additional income. Collateral on all securities loaned for the Fund is accepted in cash and cash equivalents and invested temporarily by the custodian. The collateral maintained is at least 100% of the current market value of the loaned securities. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund retains the risk of any loss on the securities on loan as well as incurring the potential loss on investments purchased with cash collateral received for securities lending.

Transactions in Affiliated Companies:
An “Affiliated Company” as defined in the Investment Company Act of 1940, is a company in which a fund owns 5% or more of the company’s outstanding voting securities at any time during the period. The Fund effected the following transactions in shares of such companies for the nine months ended September 30, 2009:

    Shares   Market Value   Cost of   Cost of   Realized   Dividend   Shares   Market Value
Affiliated Company   12/31/08   12/31/08   Purchases   Sales   Gain (Loss)   Income   9/30/09   9/30/09
Deswell Industries *   824,371   $1,096,413   -   $710,000   $(352,375)   $31,195        
        $1,096,413           $(352,375)   $31,195        
* Not an Affiliated Company at September 30, 2009.

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).


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.


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/ Charles M. Royce
Charles M. Royce
President, Royce Micro-Cap Trust, Inc.
Date:  November 17, 2009

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/ Charles M. Royce
Charles M. Royce
President, Royce Micro-Cap Trust, Inc.
Date:  November 17, 2009

By:

/s/ John D. Diederich
John D. Diederich
Treasurer, Royce Micro-Cap Trust, Inc.
Date:  November 17, 2009