N-Q 1 e48177_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:
Fund Address:		 Royce Micro-Cap Trust, Inc.
745 Fifth Avenue
New York, NY 10151

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

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

Date of fiscal year end: 12/31/2017

Date of reporting period: 3/31/2017

Item 1 - Schedule of Investments


SCHEDULE OF INVESTMENTS
ROYCE MICRO-CAP TRUST
MARCH 31, 2017 (UNAUDITED)

    SHARES   VALUE
                 
COMMON STOCKS – 102.9%                
                 
Consumer Discretionary – 15.3%                
Auto Components - 2.6%                

Fox Factory Holding 1

     5,300     $ 152,110  

LCI Industries 2

     17,700       1,766,460  

Motorcar Parts of America 1

     88,700       2,725,751  

Sebang Global Battery

     50,500       1,666,324  

Standard Motor Products

     60,160       2,956,262  

Stoneridge 1

     4,700       85,258  

Unique Fabricating

     6,800       81,804  
               
              9,433,969  
               
Distributors - 0.9%                

Fenix Parts 1

     447,300       693,315  

Uni-Select

     33,800       898,978  

Weyco Group

     56,600       1,589,328  
               
              3,181,621  
               
Diversified Consumer Services - 2.1%                

American Public Education 1

     73,200       1,676,280  

Collectors Universe

     116,100       3,030,210  

Liberty Tax Cl. A

     148,900       2,121,825  

Universal Technical Institute 1

     270,000       931,500  
               
              7,759,815  
               
Hotels, Restaurants & Leisure - 1.2%                

Century Casinos 1

     222,500       1,682,100  

Del Taco Restaurants 1

     8,200       108,732  

Lindblad Expeditions Holdings 1

     234,000       2,096,640  

Lindblad Expeditions Holdings

                

(Warrants) 1

     18,100       34,390  

Red Lion Hotels 1

     90,000       634,500  
               
              4,556,362  
               
Household Durables - 3.1%                

AV Homes 1

     82,000       1,348,900  

Cavco Industries 1,2,3

     19,291       2,245,473  

Ethan Allen Interiors 2

     45,200       1,385,380  

Flexsteel Industries 2

     16,100       811,440  

iRobot Corporation 1,2

     15,000       992,100  

Lifetime Brands 2

     124,294       2,498,309  

Stanley Furniture

     193,468       150,905  

Universal Electronics 1

     15,100       1,034,350  

ZAGG 1

     119,700       861,840  
               
              11,328,697  
               
Internet & Direct Marketing Retail - 0.6%                

FTD Companies 1

     67,200       1,353,408  

Gaia Cl. A 1,2,3

     100,000       995,000  
               
              2,348,408  
               
Leisure Products - 1.1%                

American Outdoor Brands 1,2,3

     27,100       536,851  

Black Diamond 1

     194,926       1,062,347  

Nautilus 1

     139,600       2,547,700  
               
              4,146,898  
               
Media - 0.6%                

Entravision Communications Cl. A

     126,200       782,440  

McClatchy Company (The) Cl. A 1

     69,313       670,257  

New Media Investment Group

     66,200       940,702  
               
              2,393,399  
               
Specialty Retail - 1.7%                

AutoCanada

     115,200       1,943,894  

Barnes & Noble Education 1

     80,000       767,200  

Destination Maternity 1

     212,000       903,120  

Destination XL Group 1

     50,000       142,500  

Haverty Furniture

     30,000       730,500  

Kirkland’s 1

     11,000       136,400  

MarineMax 1

     7,600       164,540  

Shoe Carnival 2

     21,028       516,658  

Stage Stores 2

     15,000       38,850  

TravelCenters of America LLC 1

     5,400       32,940  

West Marine 1

     86,000       820,440  
               
              6,197,042  
               
Textiles, Apparel & Luxury Goods - 1.4%                

Crown Crafts

     112,159       925,312  

Culp

     32,900       1,026,480  

J.G. Boswell Company 4

     2,490       1,728,085  

YGM Trading

     1,482,000       1,487,435  
               
              5,167,312  
               
Total             56,513,523  
               
                 
Consumer Staples – 2.5%                
Beverages - 0.1%                

Crimson Wine Group 1,4

     58,124       570,777  
               
Food Products - 2.3%                

Farmer Bros. 1,2,3

     61,000       2,156,350  

John B. Sanfilippo & Son 2

     17,800       1,302,782  

Landec Corporation 1,2

     75,610       907,320  

Seneca Foods Cl. A 1

     27,678       999,176  

Seneca Foods Cl. B 1

     40,400       1,515,000  

SunOpta 1

     207,981       1,445,468  
               
              8,326,096  
               
Household Products - 0.1%                

Central Garden & Pet 1

     12,000       444,840  
               
Total             9,341,713  
               
                 
Energy – 5.4%                
Energy Equipment & Services - 2.3%                

Aspen Aerogels 1

     94,985       394,188  

Canadian Energy Services & Technology

     25,000       137,045  

CARBO Ceramics 1

     34,000       443,360  

Dawson Geophysical 1

     73,654       409,516  

Era Group 1

     287,409       3,811,043  

Geospace Technologies 1,2

     9,500       154,185  

Independence Contract Drilling 1

     127,800       704,178  

Matrix Service 1,2

     53,700       886,050  

Newpark Resources 1

     11,200       90,720  

North American Energy Partners

     50,000       247,500  

Pioneer Energy Services 1,2

     57,500       230,000  

TerraVest Capital

     84,000       591,225  

Tesco Corporation 1,2

     58,000       466,900  
               
              8,565,910  
               
                 
Oil, Gas & Consumable Fuels - 3.1%                

Ardmore Shipping

     182,700       1,470,735  

Cross Timbers Royalty Trust

     67,631       990,794  

Dorchester Minerals L.P.

     106,127       1,825,384  

Dorian LPG 1

     50,000       526,500  

Hugoton Royalty Trust

     287,574       546,391  

Panhandle Oil and Gas Cl. A

     5,500       105,600  

Permian Basin Royalty Trust

     176,333       1,648,714  

Sabine Royalty Trust

     59,548       2,119,909  

San Juan Basin Royalty Trust

     143,407       1,038,267  

StealthGas 1

     229,664       916,359  
               
              11,188,653  
               
Total             19,754,563  
               
                 
Financials – 12.2%                
Banks - 2.3%                

Bank of N.T. Butterfield & Son

     43,810       1,397,977  

Blue Hills Bancorp

     50,000       892,500  

Bryn Mawr Bank

     25,000       987,500  

Caribbean Investment Holdings 1

     735,647       124,428  

Chemung Financial

     31,000       1,224,500  

Fauquier Bankshares

     133,200       2,417,580  

Live Oak Bancshares

     30,900       668,985  

Peapack-Gladstone Financial

     20,606       609,732  
               
              8,323,202  
               
                 
Capital Markets - 8.0%                

ASA Gold and Precious Metals

     171,150       2,064,069  

Canaccord Genuity Group 1

     224,100       857,743  

Diamond Hill Investment Group 2

     4,479       871,389  

Dundee Corporation Cl. A 1

     413,200       1,264,597  

EQT Holdings

     43,150       583,509  

Fiera Capital Cl. A

     78,000       808,242  

GAIN Capital Holdings

     25,000       208,250  

Gluskin Sheff + Associates

     67,400       890,997  

INTL FCStone 1,2

     41,727       1,583,957  

JZ Capital Partners

     209,999       1,452,355  

Manning & Napier Cl. A

     136,600       778,620  

Medley Management Cl. A

     153,400       1,273,220  

MVC Capital 2,3

     360,300       3,239,097  

OHA Investment

     154,620       238,115  

Pzena Investment Management Cl. A

     6,100       60,024  

Queen City Investments 4

     948       1,256,100  

Silvercrest Asset Management

                

Group Cl. A

     203,300       2,703,890  

Sprott

     1,414,533       2,372,003  

U.S. Global Investors Cl. A

     646,254       1,008,156  

Urbana Corporation

     237,600       562,800  

Value Line

     144,774       2,491,561  

Virtu Financial Cl. A

     61,800       1,050,600  

Warsaw Stock Exchange

     52,900       592,135  

Westaim Corporation 1

     20,000       40,305  

Westwood Holdings Group 2

     12,400       662,284  

ZAIS Group Holdings Cl. A 1,2,3

     262,960       709,992  
               
              29,624,010  
               
Consumer Finance - 0.4%                

EZCORP Cl. A 1,2,3

     201,000       1,638,150  

J.G. Wentworth Company Cl. A 1,4

     135,000       45,900  
               
              1,684,050  
               
                 
Diversified Financial Services - 0.7%                

Banca Finnat Euramerica

     568,000       224,683  

PICO Holdings 1,2,3

     147,100       2,059,400  

Waterloo Investment Holdings 1,5

     806,207       241,862  
               
              2,525,945  
               
                 
Insurance - 0.8%                

Hallmark Financial Services 1,2

     114,000       1,259,700  

State Auto Financial

     59,264       1,626,797  
               
              2,886,497  
               
Total             45,043,704  
               
                 
Health Care – 13.8%                
Biotechnology - 4.5%                

Abeona Therapeutics 1

     312,221       1,561,105  

Aquinox Pharmaceuticals 1,2,3

     145,397       2,426,676  

ARCA biopharma 1

     31,200       78,000  

BioCryst Pharmaceuticals 1

     144,000       1,209,600  

Invitae Corporation 1

     156,412       1,729,917  

Keryx Biopharmaceuticals 1

     117,725       725,186  

Kindred Biosciences 1

     126,000       888,300  

Knight Therapeutics 1

     187,000       1,461,014  

Progenics Pharmaceuticals 1

     6,500       61,360  

Sangamo Therapeutics 1

     281,785       1,465,282  

Zafgen 1

     381,491       1,777,748  

Zealand Pharma 1

     199,700       3,221,614  
               
              16,605,802  
               
                 
Health Care Equipment & Supplies - 4.8%                

Analogic Corporation

     18,200       1,381,380  

Atrion Corporation 2

     6,914       3,237,135  

Cerus Corporation 1,2

     140,000       623,000  

CRH Medical 1

     133,000       1,087,123  

Exactech 1,2,3

     112,300       2,829,960  

Inogen 1

     5,400       418,824  

Invacare Corporation 2

     44,300       527,170  

STRATEC Biomedical

     14,000       840,105  

Surmodics 1

     151,992       3,655,407  

Syneron Medical 1

     69,200       730,060  

TearLab Corporation 1

     8,500       24,140  

Trinity Biotech ADR Cl. A 1

     6,200       36,952  

Utah Medical Products

     36,200       2,255,260  
               
              17,646,516  
               
                 
Health Care Providers & Services - 2.6%                

Aceto Corporation

     79,600       1,258,476  

BioTelemetry 1

     49,700       1,438,815  

Cross Country Healthcare 1

     157,100       2,255,956  

Landauer

     30,400       1,482,000  

National Research Cl. A

     40,033       788,650  

PharMerica Corporation 1

     40,000       936,000  

Psychemedics Corporation

     37,500       751,875  

U.S. Physical Therapy

     10,000       653,000  
               
              9,564,772  
               
                 
Health Care Technology - 0.3%                

Connecture 1

     20,000       21,400  

Vocera Communications 1

     33,100       821,873  
               
              843,273  
               
Pharmaceuticals - 1.6%                

Agile Therapeutics 1,2

     80,000       256,400  

Alcobra 1

     745,055       849,363  

Flex Pharma 1

     240,000       1,056,000  

Lipocine 1

     355,404       1,386,076  

Theravance Biopharma 1

     66,009       2,430,451  
               
              5,978,290  
               
Total             50,638,653  
               
                 
Industrials – 20.2%                
Aerospace & Defense - 0.7%                

Astronics Corporation 1

     4,400       139,612  

Astronics Corporation Cl. B 1,4

     660       20,856  

CPI Aerostructures 1

     11,800       79,650  

FLYHT Aerospace Solutions 1

     1,916,800       403,582  

Innovative Solutions and Support 1

     142,828       431,341  

Mercury Systems 1,2,3

     29,700       1,159,785  

SIFCO Industries 1

     45,800       375,560  
               
              2,610,386  
               
                 
Building Products - 1.4%                

Burnham Holdings Cl. A 4

     117,000       1,860,300  

DIRTT Environmental Solutions 1

     171,000       898,816  

Insteel Industries

     44,200       1,597,388  

Patrick Industries 1

     11,500       815,350  
               
              5,171,854  
               
                 
Commercial Services & Supplies - 2.1%                

Atento 1

     246,001       2,250,909  

CompX International Cl. A

     107,500       1,650,125  

Heritage-Crystal Clean 1,2

     241,677       3,310,975  

Team 1,2

     17,500       473,375  
               
              7,685,384  
               
Construction & Engineering - 2.4%                

Aecon Group

     40,500       522,905  

Ameresco Cl. A 1

     261,900       1,715,445  

IES Holdings 1

     234,000       4,235,400  

Layne Christensen 1,2

     50,000       442,000  

Northwest Pipe 1,2

     61,600       967,736  

NV5 Global 1,2

     27,400       1,030,240  
               
              8,913,726  
               
                 
Electrical Equipment - 1.3%                

Encore Wire 2

     4,100       188,600  

LSI Industries

     154,212       1,555,999  

Orion Energy Systems 1

     170,000       336,600  

Powell Industries

     21,400       737,016  

Power Solutions International 1,2,3

     17,700       178,593  

Preformed Line Products

     20,743       1,081,748  

Revolution Lighting Technologies 1

     81,200       607,376  
               
              4,685,932  
               
                 
Industrial Conglomerates - 0.9%                

Raven Industries 2

     114,559       3,327,939  
               
Machinery - 7.4%                

Chart Industries 1

     1,100       38,434  

CIRCOR International 2

     26,100       1,551,384  

Columbus McKinnon

     1,500       37,230  

Eastern Company (The)

     39,750       850,650  

Exco Technologies

     136,000       1,173,004  

Foster (L.B.) Company 2

     99,300       1,241,250  

FreightCar America

     81,000       1,014,930  

Global Brass and Copper Holdings

     7,600       261,440  

Graham Corporation 2,3

     78,050       1,795,150  

Harsco Corporation 1

     4,400       56,100  

Hurco Companies

     36,866       1,146,533  

Kadant

     54,600       3,240,510  

Kornit Digital 1

     35,700       681,870  

Lindsay Corporation 2

     29,400       2,590,728  

Luxfer Holdings ADR 2

     59,712       726,098  

Lydall 1

     1,800       96,480  

NN

     50,300       1,267,560  

Pfeiffer Vacuum Technology

     6,000       755,934  

Sun Hydraulics

     86,900       3,137,959  

Tennant Company

     36,600       2,658,990  

Titan International

     237,600       2,456,784  

Westport Fuel Systems 1

     377,900       362,784  
               
              27,141,802  
               
                 
Marine - 1.0%                

Clarkson

     109,900       3,580,038  
               
Professional Services - 1.5%                

Acacia Research 1,2

     190,000       1,092,500  

BG Staffing

     2,400       34,344  

CBIZ 1

     47,000       636,850  

Franklin Covey 1

     40,100       810,020  

GP Strategies 1

     7,600       192,280  

Heidrick & Struggles International

     46,300       1,220,005  

Kforce 2

     4,700       111,625  

Resources Connection

     8,800       147,400  

RPX Corporation 1

     100,000       1,200,000  
               
              5,445,024  
               
                 
Road & Rail - 0.6%                

Marten Transport

     3,300       77,385  

Patriot Transportation Holding 1,2

     55,764       1,268,631  

Universal Logistics Holdings 2

     77,600       1,113,560  
               
              2,459,576  
               
                 
Trading Companies & Distributors - 0.9%                

Central Steel & Wire 4

     788       324,656  

EnviroStar

     64,400       1,220,380  

Houston Wire & Cable 1

     249,918       1,686,946  
               
              3,231,982  
               
Total             74,253,643  
               
                 
Information Technology – 20.5%                
Communications Equipment - 1.5%                

ADTRAN

     23,300       483,475  

Applied Optoelectronics 1,2,3

     3,500       196,525  

Bel Fuse Cl. A

     67,705       1,498,989  

CalAmp Corporation 1

     3,100       52,049  

Clearfield 1

     61,300       1,008,385  

EMCORE Corporation

     8,300       74,700  

Harmonic 1

     147,000       874,650  

Oclaro 1

     123,600       1,213,752  

PCTEL

     34,100       242,792  
               
              5,645,317  
               
Electronic Equipment, Instruments & Components - 5.7%                

Agilysys 1

     170,587       1,612,047  

Airgain 1

     3,500       53,060  

ePlus 1

     1,500       202,575  

Fabrinet 1

     2,200       92,466  

FARO Technologies 1,2

     81,700       2,920,775  

Firan Technology Group 1

     25,000       74,257  

HollySys Automation Technologies

     62,900       1,064,897  

Inficon Holding

     3,420       1,696,940  

LRAD Corporation

     853,456       1,288,719  

Mesa Laboratories 2,3

     32,472       3,984,314  

Netlist 1

     63,600       62,964  

Novanta 1

     37,600       998,280  

Orbotech 1,2,3

     102,800       3,315,300  

PC Connection

     43,716       1,302,300  

Perceptron 1

     8,500       70,890  

Richardson Electronics

     316,900       1,907,738  

Rogers Corporation 1,2

     600       51,522  

Vishay Precision Group 1

     10,000       158,000  
               
              20,857,044  
               
                 
Internet Software & Services - 3.5%                

Actua Corporation 1

     36,876       518,108  

Care.com 1,2

     207,587       2,596,913  

comScore 1,4

     64,195       1,386,612  

IZEA 1

     120,770       507,234  

MINDBODY Cl. A 1

     43,200       1,185,840  

QuinStreet 1

     525,550       2,049,645  

RealNetworks 1

     130,171       630,028  

Reis

     25,000       447,500  

Solium Capital 1

     259,700       1,484,167  

Stamps.com 1

     14,500       1,716,075  

Support.com 1

     105,600       231,792  
               
              12,753,914  
               
                 
IT Services - 1.2%                

Computer Task Group 2

     150,838       832,626  

Hackett Group (The)

     55,500       1,081,695  

Innodata 1

     437,275       962,005  

MoneyGram International 1

     75,103       1,262,481  

Virtusa Corporation 1

     8,100       244,782  
               
              4,383,589  
               
                 
Semiconductors & Semiconductor Equipment - 4.9%                

Amtech Systems 1,2

     160,284       881,562  

Brooks Automation

     117,200       2,625,280  

CyberOptics Corporation 1

     40,300       1,045,785  

FormFactor 1

     22,869       270,998  

Intermolecular 1

     240,000       223,200  

IXYS Corporation 1

     18,800       273,540  

Kopin Corporation 1

     242,200       993,020  

Kulicke & Soffa Industries 1

     88,000       1,788,160  

MoSys 1

     68,427       143,012  

Nanometrics 1

     67,300       2,049,958  

NeoPhotonics Corporation 1

     14,000       126,140  

Nova Measuring Instruments 1

     83,800       1,557,842  

PDF Solutions 1

     25,000       565,500  

Photronics 1

     189,700       2,029,790  

Sigma Designs 1

     89,000       556,250  

Silicon Motion Technology ADR

     34,100       1,594,175  

Ultra Clean Holdings 1

     49,900       841,813  

Veeco Instruments 1

     17,500       522,375  

Xcerra Corporation 1

     11,300       100,457  
               
              18,188,857  
               
                 
Software - 2.2%                

American Software Cl. A

     120,352       1,237,218  

BSQUARE Corporation 1

     83,675       451,845  

Computer Modelling Group

     337,700       2,628,263  

Model N 1

     166,693       1,741,942  

Monotype Imaging Holdings

     15,000       301,500  

PSI

     34,000       462,095  

Rubicon Project 1

     92,200       543,058  

SeaChange International 1

     284,200       704,816  

Varonis Systems 1

     2,600       82,680  
               
              8,153,417  
               
                 
Technology Hardware, Storage & Peripherals - 1.5%                

Intevac 1

     314,500       3,931,250  

Kortek

     135,007       1,744,479  
               
              5,675,729  
               
Total             75,657,867  
               
                 
Materials – 6.5%                
Chemicals - 2.1%                

Balchem Corporation

     11,775       970,496  

FutureFuel Corporation

     85,262       1,209,015  

LSB Industries 1

     135,800       1,273,804  

Quaker Chemical 2

     26,000       3,423,160  

Trecora Resources 1

     89,600       994,560  
               
              7,871,035  
               
                 
Construction Materials - 0.8%                

Ash Grove Cement 4

     7,600       2,090,000  

Monarch Cement 4

     16,303       766,241  

U.S. Concrete 1

     3,400       219,470  
               
              3,075,711  
               
                 
Containers & Packaging - 0.3%                

UFP Technologies 1

     36,445       943,925  
               
Metals & Mining - 3.3%                

Alamos Gold Cl. A

     186,044       1,494,116  

Ampco-Pittsburgh

     79,002       1,109,978  

Comstock Mining 1

     1,875,000       420,000  

Exeter Resource 1

     595,400       1,030,042  

Haynes International 2

     26,100       994,932  

Imdex 1

     400,666       198,971  

MAG Silver 1

     74,050       972,276  

Major Drilling Group International 1

     716,757       3,805,169  

Olympic Steel

     35,000       649,600  

Pretium Resources 1

     80,000       857,841  

Universal Stainless & Alloy Products 1

     15,300       260,100  

Victoria Gold 1

     890,000       394,857  
               
              12,187,882  
               
Total             24,078,553  
               
                 
Real Estate – 3.7%                
Equity Real Estate Investment Trusts (REITs) - 0.5%                

BRT Apartments 1

     230,331       1,930,174  
               
Real Estate Management & Development - 3.2%                

Altus Group

     66,000       1,444,223  

Forestar Group 1,2

     53,000       723,450  

FRP Holdings 1,2,3

     58,300       2,332,000  

Griffin Industrial Realty

     43,384       1,342,735  

Hopefluent Group Holdings

     1,400,000       430,547  

Marcus & Millichap 1,2,3

     49,567       1,218,357  

RMR Group Cl. A

     37,100       1,836,450  

Tejon Ranch 1,2,3

     115,162       2,520,896  
               
              11,848,658  
               
Total             13,778,832  
               
                 
Telecommunication Services – 0.2%                
Diversified Telecommunication Services - 0.2%                

ORBCOMM 1

     67,100       640,805  
               
Total             640,805  
               
                 
Utilities – 0.4%                
Gas Utilities - 0.1%                

Shizuoka Gas

     40,000       271,266  
               

Independent Power & Renewable Electricity Producer - 0.0%

                

Alterra Power

     45,000       159,040  
               

Water Utilities - 0.3%

                

Global Water Resources

     106,000       922,200  
               
Total             1,352,506  
               
                 
Miscellaneous6 – 2.2%                
Total             8,058,237  
               
                 
TOTAL COMMON STOCKS                

(Cost $327,915,601)

             379,112,599  
               
                 
PREFERRED STOCK – 0.3%                

Seneca Foods Conv. 1,4

     45,409       1,089,816  
               

(Cost $578,719)

             1,089,816  
               
                 
REPURCHASE AGREEMENT – 8.9%                

Fixed Income Clearing Corporation,
0.09% dated 3/31/17, due 4/3/17,
maturity value $32,693,245 (collateralized
by obligations of various U.S. Government
Agencies, 1.50% due 2/28/23, valued at $33,348,008)
(Cost $32,693,000)

             32,693,000  
               
                 
TOTAL INVESTMENTS – 112.1%                

(Cost $361,187,320)

             412,895,415  
                 
LIABILITIES LESS CASH                

AND OTHER ASSETS – (12.1)%

             (44,619,109 )
               
                 
NET ASSETS – 100.0%           $ 368,276,306  
               

1 Non-income producing.
2 All or a portion of these securities were pledged as collateral in connection with the revolving credit agreement at March 31, 2017. Total market value of pledged securities at March 31, 2017, was $73,031,558.
3 At March 31, 2017, a portion of these securities were rehypothecated in connection with the revolving credit agreement in the aggregate amount of $28,896,191.
4 These securities are defined as Level 2 securities due to fair value being based on quoted prices for similar securities.
5 A security for which market quotations are not readily available represents 0.1% of net assets. This security has been valued at its fair value under procedures approved by the Fund’s Board of Directors. This security is defined as a Level 3 security due to the use of significant unobservable inputs in the determination of fair value.
6 Includes securities first acquired in 2017 and less than 1% of net assets.

TAX INFORMATION: The cost of total investments for Federal income tax purposes was $362,767,603. At March 31, 2017, net unrealized appreciation for all securities was $50,127,812, consisting of aggregate gross unrealized appreciation of $98,175,042 and aggregate gross unrealized depreciation of $48,047,230. The primary cause of the 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 March 31, 2017. 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   $368,821,209       $10,049,528       $241,862       $379,112,599  
Preferred Stocks   –       1,089,816       –       1,089,816  
Cash Equivalents   –       32,693,000       –       32,693,000  

Certain securities have transferred in and out of Level 1 and Level 2 measurements during the reporting period. The Fund recognizes transfers between levels as of the end of the reporting period. For the three months ended March 31, 2017, securities valued at $1,386,612 were transferred from Level 1 to Level 2 and securities valued at $19,208,431 were transferred from Level 2 to Level 1 within the fair value hierarchy.

Level 3 Reconciliation:

        Unrealized        
    Balance as of 12/31/16   Gain (Loss)     Balance as of 3/31/17  
 
Common Stocks   $241,862   $0     $241,862  

The following table summarizes the valuation techniques used and unobservable inputs approved by the Valuation Committee to determine the fair value of certain, material Level 3 investments. The table does not include Level 3 investments with values derived utilizing prices from prior transactions or third party pricing information with adjustments (e.g. broker quotes, pricing services, net asset values).

    Fair Value at
3/31/17		   Valuation Technique(s)   Unobservable
Input(s)		   Range Average   Impact to Valuation From
an Increase in Input 1
 
        Discounted Present Value            
Common Stocks   $241,862   Balance Sheet Analysis   Liquidity Discount   30%-40%   Decrease

1
This column represents the directional change in the fair value of the Level 3 investments that would result in an increase from the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. Significant increases and decreases in these unobservable inputs in isolation could result in significantly higher or lower fair value measurements.

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. The remaining contractual maturity of the repurchase agreement held by the Fund at March 31, 2017 is overnight and continuous.

Borrowings:
The Fund is party to a revolving credit agreement (the credit agreement) with BNP Paribas Prime Brokerage International, Limited (BNPPI). As of March 31, 2017, the Fund has outstanding borrowings of $45,000,000. During the period ended March 31, 2017, the Fund borrowed an average daily balance of $45,000,000. 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 or as otherwise required by applicable regulatory standards and has granted a security interest in the securities pledged to, and in favor of, BNPPI 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 which may necessitate the sale of portfolio securities at potentially inopportune times. BNPPI may terminate the credit agreement upon certain ratings downgrades of its corporate parent, which would result in the Fund’s entire loan balance becoming immediately due and payable. The occurrence of such ratings downgrades may necessitate the sale of portfolio securities at potentially inopportune times. The credit agreement also permits, subject to certain conditions, BNPPI 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 BNPPI on demand. If BNPPI fails to deliver the recalled security in a timely manner, the Fund is compensated by BNPPI for any fees or losses related to the failed delivery or, in the event a recalled security is not returned by BNPPI, the Fund, upon notice to BNPPI, may reduce the loan balance outstanding by the value of the recalled security failed to be returned. The Fund receives a portion of the fees earned by BNPPI 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).


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/ Christopher D. Clark
 
Christopher D. Clark
President, Royce Micro-Cap Trust, Inc.
Date: May 26, 2017

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: May 26, 2017
 
By:
 
 
/s/ Peter K. Hoglund
 
Peter K. Hoglund
Treasurer, Royce Micro-Cap Trust, Inc.
Date: May 26, 2017