N-Q 1 e93556.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: 12/31/2010

Date of reporting period: 3/31/2010


Item 1 - Schedule of Investments

SCHEDULE OF INVESTMENTS
ROYCE MICRO-CAP TRUST
MARCH 31, 2010 (UNAUDITED)

    SHARES   VALUE  

COMMON STOCKS – 111.6%

            
             

Consumer Products – 9.0%

            

Apparel, Shoes and Accessories - 2.2%

            

K-Swiss Cl. A a

   47,400   $ 495,804  

Luk Fook Holdings (International)

   928,300     936,161  

Movado Group a

   159,139     1,795,088  

Steven Madden a

   10,300     502,640  

True Religion Apparel a

   25,800     783,288  

Weyco Group

   48,000     1,128,960  

Yamato International

   40,000     149,749  
       
 
          5,791,690  
       
 

Consumer Electronics - 0.6%

            

DTS a

   50,000     1,702,000  
       
 

Food/Beverage/Tobacco - 2.6%

            

Asian Citrus Holdings

   1,060,000     868,616  

Binggrae Company

   17,962     751,691  

Cal-Maine Foods

   22,500     762,525  

Heckmann Corporation a,b

   200,000     1,160,000  

HQ Sustainable Maritime Industries a

   72,800     436,800  

Seneca Foods Cl. A a

   51,400     1,496,768  

Seneca Foods Cl. B a

   42,500     1,245,675  
       
 
          6,722,075  
       
 

Health, Beauty and Nutrition - 0.3%

            

NutriSystem

   44,700     796,107  
       
 

Home Furnishing and Appliances - 3.3%

            

American Woodmark

   72,000     1,396,080  

Ethan Allen Interiors

   66,600     1,373,958  

Flexsteel Industries

   172,500     2,344,275  

Koss Corporation

   73,400     417,646  

Lumber Liquidators Holdings a

   23,900     637,413  

Natuzzi ADR a

   409,800     1,844,100  

Universal Electronics a

   31,000     692,540  
       
 
          8,706,012  
       
 

Total

         23,717,884  
       
 

Consumer Services – 3.9%

            

Media and Broadcasting - 0.4%

            

Ascent Media Cl. A a

   41,500     1,130,875  
       
 

Online Commerce - 0.3%

            

Alloy a

   36,002     295,216  

CryptoLogic

   88,300     336,423  
       
 
          631,639  
       
 

Retail Stores - 3.2%

            

America’s Car-Mart a

   92,800     2,238,336  

Charming Shoppes a

   266,200     1,453,452  

DSW Cl. A a,b

   3,500     89,355  

Le Chateau Cl. A

   27,900     384,581  

Lewis Group

   57,000     442,149  

PetMed Express

   33,600     744,912  

QKL Stores a

   38,740     249,873  

Stein Mart a

   178,900     1,615,467  

West Marine a

   86,000     933,100  

Wet Seal (The) Cl. A a

   50,000     238,000  
       
 
          8,389,225  
       
 

Total

         10,151,739  
       
 

Diversified Investment Companies – 1.1%

            

Closed-End Funds - 1.1%

            

ASA

   10,000     745,300  

Central Fund of Canada Cl. A

   131,700     1,843,800  

Urbana Corporation a

   237,600     371,963  
       
 

Total

         2,961,063  
       
 

Financial Intermediaries – 9.4%

            

Banking - 4.3%

            

Alliance Bancorp, Inc. of Pennsylvania

   50,420     421,007  

Banca Finnat Euramerica

   480,000     361,758  

BCB Holdings a

   806,207     1,315,175  

BofI Holding a,b

   140,000     1,950,200  

Cass Information Systems

   15,000     467,250  

Centrue Financial a

   66,600     229,770  

CFS Bancorp

   75,000     332,250  

Chemung Financial

   40,000     800,000  

Commercial National Financial

   20,000     341,000  

Fauquier Bankshares

   135,800     2,017,988  

Financial Institutions

   36,000     526,320  

First Bancorp

   40,200     640,788  

HopFed Bancorp

   55,000     660,000  

LCNB Corporation

   30,000     360,000  

Mechanics Bank

   5     56,750  

Wilber Corporation (The)

   137,908     903,297  
       
 
          11,383,553  
       
 

Insurance - 0.9%

            

Greenlight Capital Re Cl. A a

   9,700     258,796  

Independence Holding

   95,800     909,142  

Presidential Life

   132,100     1,317,037  
       
 
          2,484,975  
       
 

Real Estate Investment Trusts - 0.5%

            

Colony Financial

   49,717     994,340  

Vestin Realty Mortgage II a

   214,230     370,618  
       
 
          1,364,958  
       
 

Securities Brokers - 3.1%

            

Cowen Group Cl. A a

   342,834     1,940,441  

Diamond Hill Investment Group

   24,479     1,679,259  

FBR Capital Markets a

   326,600     1,486,030  

International Assets Holding Corporation a

   17,310     259,131  

Sanders Morris Harris Group

   199,000     1,231,810  

Thomas Weisel Partners Group a

   376,200     1,474,704  
       
 
          8,071,375  
       
 

Securities Exchanges - 0.6%

            

Bolsa Mexicana de Valores a

   948,500     1,503,638  
       
 

Total

         24,808,499  
       
 

Financial Services – 9.7%

            

Diversified Financial Services - 0.4%

            

Encore Capital Group a

   32,000     526,400  

World Acceptance a,b

   19,300     696,344  
       
 
          1,222,744  
       
 

Information and Processing - 0.3%

            

Value Line

   32,487     750,125  
       
 

Insurance Brokers - 0.2%

            

Western Financial Group

   148,000     498,361  
       
 

Investment Management - 5.3%

            

BKF Capital Group a

   130,200     119,784  

Cohen & Steers

   27,900     696,384  

Dundee Corporation Cl. A a

   140,200     1,910,469  

Endeavour Financial a,b

   618,200     1,479,078  

Endeavour Financial (Warrants) a

   50,000     49,230  

Epoch Holding Corporation

   196,500     2,218,485  

Evercore Partners Cl. A

   13,200     396,000  

JZ Capital Partners

   293,999     1,298,277  

MVC Capital

   136,200     1,848,234  

Queen City Investments

   948     968,865  

Sceptre Investment Counsel

   78,000     441,589  

Sprott Resource a

   70,000     323,931  

U.S. Global Investors Cl. A

   91,500     904,935  

VZ Holding

   15,000     1,276,792  
       
 
          13,932,053  
       
 

Special Purpose Acquisition Corporation - 0.4%

            

Westway Group

   220,000     992,200  
       
 

Specialty Finance - 0.2%

            

NGP Capital Resources

   68,080     580,041  
       
 

Other Financial Services - 2.9%

            

Hilltop Holdings a

   101,400     1,191,450  

Kennedy-Wilson Holdings a

   631,766     6,412,425  
       
 
          7,603,875  
       
 

Total

         25,579,399  
       
 

Health – 9.9%

            

Commercial Services - 0.6%

            

PAREXEL International a

   40,000     932,400  

PDI a

   96,800     727,936  
       
 
          1,660,336  
       
 

Drugs and Biotech - 1.6%

            

Adolor Corporation a

   460,500     828,900  

American Oriental Bioengineering a,b

   99,000     403,920  

China Nuokang Bio-Pharmaceutical ADR a

   21,147     131,111  

Hi-Tech Pharmacal a

   17,700     391,878  

Simcere Pharmaceutical Group ADR a

   25,700     218,707  

Sinovac Biotech a

   53,900     318,549  

Strategic Diagnostics a

   150,000     285,000  

Theragenics Corporation a

   306,900     509,454  

3SBio ADR a

   53,500     662,330  

ViroPharma a

   37,000     504,310  
       
 
          4,254,159  
       
 

Health Services - 2.3%

            

Advisory Board (The) a

   51,700     1,628,550  

eResearch Technology a

   127,000     877,570  

Gentiva Health Services a

   23,000     650,440  

HMS Holdings a

   11,900     606,781  

On Assignment a

   41,100     293,043  

PharMerica Corporation a

   40,000     728,800  

Psychemedics Corporation

   37,500     286,875  

Res-Care a

   76,120     912,679  

U.S. Physical Therapy a

   10,000     174,000  
       
 
          6,158,738  
       
 

Medical Products and Devices - 5.4%

            

Allied Healthcare Products a

   226,798     850,492  

Atrion Corporation

   5,500     786,720  

CAS Medical Systems a

   62,600     118,940  

Exactech a

   121,000     2,537,370  

Kensey Nash a

   20,000     471,800  

Medical Action Industries a

   125,250     1,536,817  

Mesa Laboratories

   48,267     1,236,118  

NMT Medical a

   198,500     899,205  

Somanetics Corporation a

   75,247     1,440,228  

STRATEC Biomedical Systems

   14,000     496,459  

Syneron Medical a

   69,200     756,356  

Utah Medical Products

   42,300     1,189,899  

Young Innovations

   61,450     1,730,432  
       
 
          14,050,836  
       
 

Total

         26,124,069  
       
 

Industrial Products – 23.2%

            

Automotive - 1.0%

            

Norstar Founders Group a,c

   771,500     36,268  

SORL Auto Parts a

   53,277     492,279  

US Auto Parts Network a

   240,900     1,811,568  

Wonder Auto Technology a,b

   10,900     115,322  

Xinyi Glass Holdings

   212,400     193,682  
       
 
          2,649,119  
       
 

Building Systems and Components - 2.7%

            

AAON

   73,000     1,651,260  

Apogee Enterprises

   57,900     915,399  

Drew Industries a

   90,000     1,981,800  

LSI Industries

   79,812     544,318  

NCI Building Systems a

   8,400     92,736  

Preformed Line Products

   16,000     610,400  

WaterFurnace Renewable Energy

   45,200     1,272,355  
       
 
          7,068,268  
       
 

Construction Materials - 1.8%

            

Ash Grove Cement

   8,000     1,360,000  

Monarch Cement

   52,303     1,542,939  

Trex Company a

   90,000     1,916,100  
       
 
          4,819,039  
       
 

Industrial Components - 2.0%

            

Bel Fuse Cl. A

   67,705     1,253,897  

Deswell Industries

   564,371     2,370,358  

Graham Corporation

   48,500     872,515  

Powell Industries a

   26,800     871,804  
       
 
          5,368,574  
       
 

Machinery - 6.6%

            

Burckhardt Compression Holding

   2,100     414,264  

Burnham Holdings Cl. A

   113,000     1,514,200  

Columbus McKinnon a

   15,100     239,637  

Duoyuan Printing a

   50,400     544,320  

Eastern Company (The)

   39,750     538,215  

FreightCar America

   51,000     1,232,160  

Hardinge

   260,000     2,340,000  

Hollysys Automation Technologies a

   166,492     1,916,323  

Hurco Companies a

   46,666     785,389  

Jinpan International

   36,924     768,019  

K-Tron International a

   5,926     888,722  

Rofin-Sinar Technologies a

   37,000     836,940  

Sun Hydraulics

   65,425     1,699,742  

Tennant Company

   92,300     2,528,097  

Williams Controls a

   125,000     1,000,000  
       
 
          17,246,028  
       
 

Metal Fabrication and Distribution - 2.9%

            

Central Steel & Wire

   1,088     734,400  

CompX International Cl. A

   107,500     966,425  

Encore Wire

   15,000     312,000  

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

   15,100     436,239  

Friedman Industries

   2,025     11,583  

Fushi Copperweld a

   29,483     330,799  

Horsehead Holding Corporation a

   28,800     340,992  

Ladish Company a

   45,000     907,200  

NN a

   114,300     628,650  

Olympic Steel

   22,000     718,300  

RBC Bearings a

   6,500     207,155  

RTI International Metals a

   69,900     2,120,067  
       
 
          7,713,810  
       
 

Miscellaneous Manufacturing - 2.6%

            

AZZ

   15,000     507,750  

China Automation Group

   460,300     355,114  

Griffon Corporation a

   89,500     1,115,170  

Hana Microelectronics

   500,000     335,550  

PMFG a

   143,800     1,902,474  

Raven Industries

   58,400     1,722,216  

Semperit AG Holding

   12,500     488,091  

Synalloy Corporation

   58,200     472,584  
       
 
          6,898,949  
       
 

Pumps, Valves and Bearings - 0.4%

            

CIRCOR International

   28,000     929,880  
       
 

Specialty Chemicals and Materials - 2.4%

            

Aceto Corporation

   72,219     436,203  

Balchem Corporation

   63,375     1,562,194  

China XD Plastics a,b

   76,000     471,200  

Hawkins

   69,866     1,690,757  

Park Electrochemical

   15,400     442,596  

Rogers Corporation a

   58,400     1,694,184  
       
 
          6,297,134  
       
 

Textiles - 0.7%

            

Interface Cl. A

   27,000     312,660  

J.G. Boswell Company

   2,490     1,511,430  
       
 
          1,824,090  
       
 

Other Industrial Products - 0.1%

            

Research Frontiers a,b

   50,000     141,500  
       
 

Total

         60,956,391  
       
 

Industrial Services – 13.6%

            

Commercial Services - 5.6%

            

Acacia Research-Acacia Technologies a

   68,290     739,581  

ATC Technology a

   25,200     432,432  

CBIZ a

   47,000     308,790  

Diamond Management & Technology Consultants

   138,100     1,084,085  

Exponent a

   58,400     1,665,568  

Forrester Research a

   54,900     1,650,843  

Global Sources a

   30,315     197,351  

Heidrick & Struggles International

   10,000     280,300  

Heritage-Crystal Clean a

   118,283     1,336,598  

Kforce a

   60,000     912,600  

Rentrak Corporation a

   63,300     1,364,115  

SFN Group a

   426,600     3,417,066  

Spectrum Group International a,b

   6,925     12,326  

Team a

   86,500     1,435,035  
       
 
          14,836,690  
       
 

Engineering and Construction - 1.6%

            

Cavco Industries a

   12,491     426,443  

Insituform Technologies Cl. A a

   34,300     912,723  

Integrated Electrical Services a

   132,000     745,800  

Layne Christensen a

   8,200     219,022  

MYR Group a

   28,500     464,835  

Skyline Corporation

   62,100     1,155,060  

Sterling Construction a

   25,000     393,000  
       
 
          4,316,883  
       
 

Food, Tobacco and Agriculture - 1.2%

            

Farmer Bros.

   51,400     963,236  

Hanfeng Evergreen a

   70,800     544,428  

Origin Agritech a,b

   121,488     1,213,665  

Yuhe International a

   39,714     369,340  

Zhongpin a,b

   12,300     156,210  
       
 
          3,246,879  
       
 

Industrial Distribution - 0.7%

            

Houston Wire & Cable

   67,375     780,203  

Lawson Products

   63,269     978,771  
       
 
          1,758,974  
       
 

Printing - 0.8%

            

Bowne & Co.

   68,989     769,917  

Courier Corporation

   30,450     502,729  

CSS Industries

   20,243     406,884  

Domino Printing Sciences

   80,000     470,061  
       
 
          2,149,591  
       
 

Transportation and Logistics - 3.1%

            

Dynamex a

   86,000     1,479,200  

Forward Air

   50,700     1,333,410  

Frozen Food Express Industries a

   157,000     612,300  

Pacer International a

   35,000     210,700  

Patriot Transportation Holding a

   19,000     1,605,120  

Transat A.T. Cl. B a

   31,800     418,302  

Universal Truckload Services a

   134,200     2,359,236  
       
 
          8,018,268  
       
 

Other Industrial Services - 0.6%

            

US Ecology

   92,500     1,489,250  
       
 

Total

         35,816,535  
       
 

Natural Resources – 10.7%

            

Energy Services - 4.5%

            

CE Franklin a

   90,450     614,156  

Dawson Geophysical a

   53,213     1,555,948  

Dril-Quip a

   22,500     1,368,900  

Gulf Island Fabrication

   29,116     633,273  

ION Geophysical a

   50,000     246,000  

Lamprell

   202,400     743,283  

Lufkin Industries

   1,000     79,150  

North American Energy Partners a

   50,000     479,500  

OYO Geospace a

   7,130     340,885  

Pason Systems

   139,200     1,566,540  

Pioneer Drilling a

   57,500     404,800  

T-3 Energy Services a

   39,150     961,524  

Tesco Corporation a

   50,000     583,500  

Willbros Group a

   159,200     1,911,992  

World Energy Solutions a

   72,920     226,052  
       
 
          11,715,503  
       
 

Oil and Gas - 0.5%

            

Approach Resources a

   12,000     108,960  

China Integrated Energy a

   65,000     681,200  

GeoMet a

   75,000     66,975  

GeoResources a

   30,000     458,100  
       
 
          1,315,235  
       
 

Precious Metals and Mining - 3.1%

            

Alamos Gold a

   47,100     629,298  

Allied Nevada Gold a

   108,700     1,801,159  

Aurizon Mines a

   197,000     937,720  

Brush Engineered Materials a

   27,000     609,390  

Chesapeake Gold a

   20,000     160,488  

Exeter Resource a,b

   140,000     858,200  

Gammon Gold a

   83,836     602,781  

Midway Gold a

   345,000     224,191  

Minefinders Corporation a

   36,000     333,360  

New Gold a

   141,200     615,632  

Northgate Minerals a

   270,000     810,000  

Seabridge Gold a

   16,700     406,812  

Victoria Gold a

   200,000     145,720  

Vista Gold a,b

   50,000     100,500  
       
 
          8,235,251  
       
 

Real Estate - 2.6%

            

Avatar Holdings a

   18,104     393,581  

Consolidated-Tomoka Land

   32,100     1,011,471  

PICO Holdings a

   45,700     1,699,583  

Pope Resources L.P.

   57,205     1,510,784  

Tejon Ranch a

   65,100     1,986,852  

ZipRealty a,b

   25,000     122,500  
       
 
          6,724,771  
       
 

Other Natural Resources - 0.0%

            

China Hydroelectric ADR a,b

   10,000     92,500  
       
 

Total

         28,083,260  
       
 

Technology – 17.7%

            

Aerospace and Defense - 2.4%

            

Applied Signal Technology

   20,000     391,600  

Ducommun

   72,100     1,514,821  

HEICO Corporation

   33,600     1,732,416  

Innovative Solutions and Support a

   100,000     630,000  

Integral Systems a

   138,222     1,331,078  

SIFCO Industries

   45,800     781,806  
       
 
          6,381,721  
       
 

Components and Systems - 2.9%

            

Frequency Electronics a

   275,000     1,452,000  

Methode Electronics

   66,223     655,608  

Newport Corporation a

   80,900     1,011,250  

Richardson Electronics

   250,900     1,994,655  

Rimage Corporation a

   79,200     1,145,232  

Technitrol

   150,000     792,000  

TransAct Technologies a

   78,600     572,208  
       
 
          7,622,953  
       
 

Distribution - 0.4%

            

Agilysys a

   90,000     1,005,300  

ScanSource a

   7,600     218,728  
       
 
          1,224,028  
       
 

Internet Software and Services - 1.2%

            

ActivIdentity Corporation a

   180,000     511,200  

iPass a

   210,000     241,500  

Marchex Cl. B

   95,000     485,450  

Support.com a

   430,000     1,406,100  

WebMediaBrands a

   525,000     519,750  
       
 
          3,164,000  
       
 

IT Services - 4.0%

            

Computer Task Group a

   236,100     1,711,725  

iGATE Corporation

   248,400     2,416,932  

Sapient Corporation

   500,000     4,570,000  

Syntel

   43,300     1,665,751  

Yucheng Technologies a

   50,960     198,744  
       
 
          10,563,152  
       
 

Semiconductors and Equipment - 2.6%

            

ATMI a

   6,400     123,584  

Coherent a

   22,000     703,120  

Exar Corporation a

   121,208     854,517  

Ikanos Communications a

   40,000     120,000  

Inficon Holding

   3,600     485,508  

Mentor Graphics a

   22,400     179,648  

Micrel

   60,000     639,600  

Microtune a

   362,000     988,260  

PLX Technology a

   80,000     421,600  

TTM Technologies a

   114,400     1,015,872  

Virage Logic a

   160,000     1,257,600  
       
 
          6,789,309  
       
 

Software - 3.3%

            

ACI Worldwide a

   69,600     1,434,456  

Actuate Corporation a

   66,200     370,058  

American Software Cl. A

   74,900     435,169  

Bottomline Technologies a

   12,300     207,009  

Double-Take Software a

   29,400     261,954  

Fundtech a

   51,000     714,000  

Geeknet a

   875,000     1,312,500  

Pegasystems

   84,000     3,108,000  

PLATO Learning a

   140,000     778,400  
       
 
          8,621,546  
       
 

Telecommunications - 0.9%

            

Anaren a

   8,000     113,920  

Atlantic Tele-Network

   14,700     660,471  

Cogo Group a

   50,500     352,995  

Diguang International Development a

   230,000     73,600  

Globecomm Systems a

   10,230     78,668  

PC-Tel a

   44,100     272,538  

Zhone Technologies a

   266,320     732,380  
       
 
          2,284,572  
       
 

Total

         46,651,281  
       
 

Miscellaneous d – 3.4%

            

Total

         8,775,181  
       
 

TOTAL COMMON STOCKS

            

(Cost $219,237,056)

         293,625,301  
       
 

PREFERRED STOCK – 0.5%

            

Seneca Foods Conv.

            

(Cost $578,719)

   45,409     1,226,043  
       
 

REPURCHASE AGREEMENT – 10.9%

            
State Street Bank & Trust Company,            

0.005% dated 3/31/10, due 4/1/10,

            

maturity value $28,710,004 (collateralized

            

by obligations of various U.S. Government

            

Agencies, 0.42% due 9/21/10, valued at

            

$29,430,000)

            

(Cost $28,710,000)

         28,710,000  
       
 

COLLATERAL RECEIVED FOR SECURITIES LOANED – 1.7%

            
Money Market Funds            

Federated Government Obligations Fund

            

(7 day yield-0.0150%)

            

(Cost $4,465,210)

         4,465,210  
       
 

TOTAL INVESTMENTS – 124.7%

            

(Cost $252,990,985)

         328,026,554  
             

LIABILITIES LESS CASH AND OTHER ASSETS – (1.9)%

         (4,993,036 )
             

PREFERRED STOCK – (22.8)%

         (60,000,000 )
       
 

NET ASSETS APPLICABLE TO COMMON STOCKHOLDERS – 100.0%

       $ 263,033,518  
       
 
     
a  
Non-income producing.
b  
All or a portion of these securities were on loan at March 31, 2010. Total market value of loaned securities at March 31, 2010 was $4,292,160.
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 2010 and less than 1% of net assets applicable to Common Stockholders.
     
     
   
TAX INFORMATION: The cost of total investments for Federal income tax purposes was $253,469,167. At March 31, 2010, net unrealized appreciation for all securities was $74,557,387, consisting of aggregate gross unrealized appreciation of $98,566,578 and aggregate gross unrealized depreciation of $24,009,191. 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 March 31, 2010:
        Level 1   Level 2   Level 3   Total
   
          

Common stocks

     $ 261,389,315       $ 32,199,718       $ 36,268       $ 293,625,301  
   

Preferred stocks

       –         1,226,043         –         1,226,043  
   

Cash equivalents

       4,465,210         28,710,000         –         33,175,210  
   

    Level 3 Reconciliation:                        
                        Realized and    
        Balance as of               Unrealized   Balance as of
        12/31/09   Purchases   Transfers Out   Sales   Gain (Loss)   3/31/10
   
   

Common stocks

   $73,019   $–   $417,646   $–   $380,895   $36,268
   
     
    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 for the Fund on all securities loaned 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.
     
   
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: May 26, 2010

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: May 26, 2010

By:

/s/John D. Diederich
John D. Diederich
Treasurer, Royce Micro-Cap Trust, Inc.
Date: May 26, 2010