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 AvenueNew York, NY 10151
Name and address of agent for service: John E. Denneen, Esq. Royce & Associates, LLC 745 Fifth Avenue New York, NY 10151 Registrants telephone number, including area code: (212) 508-4500 Date of fiscal year end: 12/31/2014 Date of reporting period: 3/31/2014
Item 1 Schedule of Investments
SCHEDULE OF INVESTMENTS
SHARES VALUE COMMON STOCKS 100.6% Consumer Discretionary 14.6% Auto Components - 1.9%
ROYCE MICRO-CAP TRUST
MARCH 31, 2014 (UNAUDITED)China Zenix Auto International ADR 1
50,000 $ 129,000Drew Industries
85,600 4,639,520Fuel Systems Solutions 1
76,000 817,760Motorcar Parts of America 1
51,000 1,355,070Spartan Motors
42,300 217,422Standard Motor Products
30,400 1,087,408
8,246,180
Distributors - 0.6%Core-Mark Holding Company
13,500 980,100Weyco Group
59,600 1,610,392
2,590,492
Diversified Consumer Services - 0.5%American Public Education 1
5,500 192,940Capella Education
2,700 170,505Collectors Universe
79,200 1,490,544Lincoln Educational Services
64,000 241,280Spectrum Group International 1,2
6,925 4,224
2,099,493
Hotels, Restaurants & Leisure - 0.1%Monarch Casino & Resort 1
24,497 453,930
Household Durables - 3.4%Cavco Industries 1
3,091 242,489Ethan Allen Interiors 3
81,600 2,076,720Flexsteel Industries
125,700 4,728,834iRobot Corporation 1
15,000 615,750Koss Corporation
73,400 367,000Lifetime Brands
51,600 921,576Parametric Sound 1,3,4
68,600 964,516Skyline Corporation 1
183,400 1,109,570Stanley Furniture 1
93,468 256,102Universal Electronics 1
92,100 3,535,719
14,818,276
Internet & Catalog Retail - 0.5%dELiA*s 1
23,300 19,572FTD Companies 1
69,700 2,217,157Geeknet 1
1,500 21,030
2,257,759
Leisure Products - 0.9%Arctic Cat
21,664 1,035,323LeapFrog Enterprises Cl. A 1,3
67,100 503,250Nautilus 1
227,800 2,193,714Smith & Wesson Holding Corporation 1
20,700 302,634
4,034,921
Media - 1.5%Rentrak Corporation 1
56,500 3,405,820Saga Communications Cl. A
12,100 601,249Value Line
169,000 2,528,240
6,535,309
Multiline Retail - 0.2%Tuesday Morning 1
61,400 868,810
Specialty Retail - 3.4%Aeropostale 1
65,000 326,300Americas Car-Mart 1,3,4
83,500 3,066,120Cache 1
237,900 782,691Destination Maternity
73,200 2,005,680Kirklands 1
7,300 134,977Le Chateau Cl. A 1
685,000 1,648,213Lewis Group
57,000 313,463Shoe Carnival 3
41,228 949,893Stage Stores 3
25,000 611,250Stein Mart 3
178,900 2,506,389Systemax 1,3
44,000 656,040Tandy Leather Factory 1
34,333 331,657West Marine 1
101,600 1,155,192
14,487,865
Textiles, Apparel & Luxury Goods - 1.6%Crown Crafts
197,800 1,574,488Culp
34,600 683,004G-III Apparel Group 1,3
1,600 114,528J.G. Boswell Company 2
2,490 2,282,085Marimekko
25,300 359,127Movado Group 3
44,374 2,021,236
7,034,468
Total 63,427,503
Consumer Staples 2.1% Beverages - 0.1%Crimson Wine Group 1,2
58,124 513,816
Food Products - 1.8%Calavo Growers 3
1,800 64,044Farmer Bros. 1
55,000 1,083,500Griffin Land & Nurseries
47,746 1,443,839John B. Sanfilippo & Son
3,500 80,570Seneca Foods Cl. A 1,3
51,400 1,618,072Seneca Foods Cl. B 1
42,500 1,363,400SunOpta 1
128,900 1,522,309Waterloo Investment Holdings 1,5
806,207 306,359
7,482,093
Household Products - 0.0%Orchids Paper Products
2,000 61,200
Personal Products - 0.2%Inter Parfums 3
24,800 898,008
Total 8,955,117
Energy 3.4% Energy Equipment & Services - 2.7%Dawson Geophysical
53,213 1,490,496Geospace Technologies 1,3
9,500 628,615Global Geophysical Services 1
35,000 4,197Gulf Island Fabrication
29,116 629,197Matrix Service 1,3
12,100 408,738Newpark Resources 1
64,500 738,525North American Energy Partners
50,000 360,000Nuverra Environmental Solutions 1,3
10,000 202,900Pason Systems
125,000 3,161,465Pioneer Energy Services 1,3
57,500 744,625SAExploration Holdings 1
69,200 649,096Tesco Corporation 1,3
58,000 1,073,000Willbros Group 1
131,100 1,654,482
11,745,336
Oil, Gas & Consumable Fuels - 0.7%Approach Resources 1,3
12,000 250,920Harvest Natural Resources 1
13,176 49,542Resolute Energy 1,3
102,100 735,120Sprott Resource 1
91,800 206,768StealthGas 1
74,500 847,065VAALCO Energy 1,3
100,800 861,840
2,951,255
Total 14,696,591
Financials 15.9% Banks - 1.6%Bank of N.T. Butterfield & Son
438,100 867,438BCB Holdings 1
906,207 196,402Bryn Mawr Bank
25,000 718,250Chemung Financial
31,000 840,720Fauquier Bankshares
140,200 2,143,658First Bancorp (The)
40,200 655,260First Internet Bancorp
21,800 496,386Peapack-Gladstone Financial
53,606 1,179,332
7,097,446
Capital Markets - 7.1%ASA Gold and Precious Metals
206,150 2,758,287Cowen Group 1
353,900 1,560,699Diamond Hill Investment Group
31,379 4,124,456Equity Trustees
42,229 885,593Fiera Capital
78,000 1,009,661INTL FCStone 1,3,4
26,310 494,891JZ Capital Partners
253,999 1,876,076Manning & Napier Cl. A
37,000 620,490MVC Capital
131,200 1,777,760NGP Capital Resources
182,336 1,232,591Queen City Investments 2
948 1,075,980RHJ International 1
348,000 1,751,560Silvercrest Asset Management Group Cl. A
231,500 4,234,135Sprott
622,200 2,031,788U.S. Global Investors Cl. A
651,254 2,090,525Urbana Corporation
237,600 406,209Virtus Investment Partners 1,3
6,200 1,073,654Westwood Holdings Group 3
29,800 1,868,162
30,872,517
Consumer Finance - 1.2%EZCORP Cl. A 1
194,400 2,097,576JGWPT Holdings Cl. A 1
100,000 1,826,000Regional Management 1
51,400 1,267,524
5,191,100
Diversified Financial Services - 1.2%Banca Finnat Euramerica
1,310,000 965,262GAIN Capital Holdings
25,000 270,250HF2 Financial Management Cl. A 1
207,700 2,131,002PICO Holdings 1,3
45,700 1,187,743Warsaw Stock Exchange
52,900 687,725
5,241,982
Insurance - 1.8%Hallmark Financial Services 1
138,000 1,146,780Independence Holding Company
105,380 1,414,200National Western Life Insurance Cl. A 3
8,033 1,964,068State Auto Financial 3
109,264 2,328,416United Fire Group 3
38,603 1,171,601
8,025,065
Real Estate Investment Trusts (REITs) - 0.4%BRT Realty Trust 1
228,681 1,630,496
Real Estate Management & Development - 2.5%AV Homes 1
36,400 658,476Consolidated-Tomoka Land
55,750 2,245,610Forestar Group 1,3
53,000 943,400Kennedy-Wilson Holdings
127,000 2,858,770Tejon Ranch 1,3
112,162 3,794,440Tejon Ranch (Warrants) 1
16,567 60,470ZipRealty 1
25,000 82,000
10,643,166
Thrifts & Mortgage Finance - 0.1%Alliance Bancorp, Inc. of Pennsylvania
41,344 634,630
Total 69,336,402
Health Care 8.7% Biotechnology - 1.8%Achillion Pharmaceuticals 1
340,000 1,118,600Amicus Therapeutics 1
211,400 437,598ARIAD Pharmaceuticals 1
154,102 1,242,062ArQule 1
70,000 143,500Celsion Corporation 1
115,555 389,421ChemoCentryx 1
70,000 464,100Coronado Biosciences 1
360,000 712,800Idenix Pharmaceuticals 1
168,408 1,015,500Rigel Pharmaceuticals 1
152,392 591,281Synthetic Biologics 1
226,000 580,820ZIOPHARM Oncology 1,3,4
210,000 961,800
7,657,482
Health Care Equipment & Supplies - 4.4%Allied Healthcare Products 1
131,772 299,122AngioDynamics 1,3
104,800 1,650,600Atrion Corporation
12,357 3,782,972CryoLife
41,973 418,051Cynosure Cl.A 1
3,500 102,550Derma Sciences 1
30,000 380,400DynaVox Cl. A 1,2
20,000 1,800Exactech 1
170,800 3,853,248Invacare Corporation 3
102,100 1,947,047Medical Action Industries 1
125,250 872,993STRATEC Biomedical
14,000 608,294Symmetry Medical 1
11,900 119,714Synergetics USA 1,3
185,085 564,509Syneron Medical 1
69,200 861,540Trinity Biotech ADR Cl. A
42,200 1,022,506Utah Medical Products
42,300 2,446,209
18,931,555
Health Care Providers & Services - 1.8%Addus HomeCare 1
45,900 1,057,995Bio-Reference Laboratories 1,3,4
19,500 539,760CorVel Corporation 1,3,4
40,000 1,990,400Cross Country Healthcare 1
37,200 300,204Gentiva Health Services 1,3
23,000 209,760PDI 1
65,383 299,454PharMerica Corporation 1,3
40,000 1,119,200Psychemedics Corporation
67,300 1,152,849U.S. Physical Therapy
33,257 1,149,694
7,819,316
Health Care Technology - 0.2%Computer Programs and Systems
5,000 323,000HealthStream 1
24,227 646,861
969,861
Life Sciences Tools & Services - 0.5%Affymetrix 1
90,000 641,700Furiex Pharmaceuticals 1
20,158 1,753,746
2,395,446
Total 37,773,660
Industrials 27.8% Aerospace & Defense - 2.4%Astronics Corporation 1
6,444 408,614Astronics Corporation Cl. B 1,2
420 24,906Breeze-Eastern Corporation 1
24,233 239,422CPI Aerostructures 1
75,409 980,317Ducommun 1
115,800 2,901,948HEICO Corporation 3,4
30,100 1,810,816Innovative Solutions and Support 1
142,828 1,075,495Kratos Defense & Security Solutions 1
72,324 545,323SIFCO Industries
45,800 1,398,274Sparton Corporation 1
35,700 1,045,296
10,430,411
Air Freight & Logistics - 0.2%Echo Global Logistics 1
36,800 674,176Pacer International 1
35,000 313,600
987,776
Building Products - 3.3%AAON 3
97,650 2,721,505American Woodmark 1,3,4
64,800 2,181,168Apogee Enterprises
57,900 1,924,017Burnham Holdings Cl. A 2
118,109 2,214,544Griffon Corporation 3
36,300 433,422Insteel Industries
39,000 767,130Trex Company 1,3
25,700 1,880,212WaterFurnace Renewable Energy
128,300 2,371,026
14,493,024
Commercial Services & Supplies - 1.4%CompX International Cl. A
107,500 1,099,725Heritage-Crystal Clean 1
192,142 3,483,534Team 1,3,4
35,000 1,500,100
6,083,359
Construction & Engineering - 3.2%Ameresco Cl. A 1
295,700 2,235,492Integrated Electrical Services 1,6
934,200 5,801,382Layne Christensen 1,3
24,800 451,112MYR Group 1,3
107,100 2,711,772Orbit Garant Drilling 1
1,512,500 2,189,055Pike Corporation 1,3
31,200 335,712
13,724,525
Electrical Equipment - 2.4%AZZ
16,494 736,952Encore Wire 3
15,000 727,650Global Power Equipment Group
111,049 2,208,765Jinpan International
35,000 263,550LSI Industries
93,012 761,768Orion Energy Systems 1
100,000 725,000Powell Industries 3
35,750 2,316,600PowerSecure International 1
40,500 949,320Preformed Line Products
18,143 1,243,703Vicor 1
30,000 306,000
10,239,308
Industrial Conglomerates - 0.7%Raven Industries 3
93,400 3,058,850
Machinery - 7.1%Alamo Group
14,200 771,486American Railcar Industries
45,415 3,180,412CB Industrial Product Holding
146,800 199,809CIRCOR International 3
15,100 1,107,283Columbus McKinnon 1
9,650 258,523Douglas Dynamics
50,000 871,000Eastern Company (The)
39,750 641,167FAG Bearings India
27,200 859,844Foster (L.B.)Company 3
59,200 2,773,520Graham Corporation
44,800 1,426,880Hurco Companies
52,666 1,405,129Kadant
27,900 1,017,513Luxfer Holdings ADR
40,200 787,116NN
164,300 3,236,710PMFG 1
223,245 1,332,773Sarine Technologies
621,900 1,228,713Standex International 3
20,300 1,087,674Sun Hydraulics
108,287 4,689,910Tennant Company 3
59,000 3,871,580
30,747,042
Marine - 0.3%Clarkson
37,800 1,545,418
Professional Services - 3.4%Acacia Research
58,800 898,464Advisory Board (The) 1,3,4
30,123 1,935,403CBIZ 1
47,000 430,520Exponent 3
40,765 3,059,821Franklin Covey 1
62,400 1,233,648GP Strategies 1,3
23,185 631,327Heidrick & Struggles International
112,468 2,257,233ICF International 1
15,700 625,017Kforce 3
69,600 1,483,872Mistras Group 1
4,100 93,357Resources Connection
17,200 242,348RPX Corporation 1
104,900 1,707,772
14,598,782
Road & Rail - 2.0%Contrans Group Cl. A
35,000 397,332Marten Transport
28,450 612,244Patriot Transportation Holding 1
111,681 4,026,100Universal Truckload Services
134,200 3,878,380
8,914,056
Trading Companies & Distributors - 1.1%Aceto Corporation
72,219 1,450,879Houston Wire & Cable
147,075 1,931,095Lawson Products 1
50,269 807,823MFC Industrial
70,000 555,800
4,745,597
Transportation Infrastructure - 0.3%Touax
53,197 1,473,050
Total 121,041,198
Information Technology 20.5% Communications Equipment - 1.0%Bel Fuse Cl. A
67,705 1,308,738CalAmp Corporation 1
2,300 64,101Ceragon Networks 1
29,700 84,051ClearOne 1
25,000 256,250Extreme Networks 1
245,000 1,421,000KVH Industries 1
8,900 117,124Oplink Communications 1
35,251 633,108PCTEL
44,100 384,993Sandvine Corporation 1
22,700 64,065Sierra Wireless 1
4,700 102,601
4,436,031
Electronic Equipment, Instruments & Components - 7.5%Agilysys 1
170,587 2,285,866Audience 1
8,700 108,750Deswell Industries
544,371 1,126,848DTS 1
73,900 1,460,264Hollysys Automation Technologies 1
189,600 4,083,984Inficon Holding
3,600 1,334,211LRAD Corporation 1
434,956 913,408Maxwell Technologies 1
117,594 1,519,314Measurement Specialties 1
1,600 108,560Mercury Systems 1
10,900 143,989Mesa Laboratories
52,689 4,755,182Newport Corporation 1,3
115,400 2,386,472Orbotech 1
6,500 100,035PC Connection
54,200 1,101,344Pulse Electronics 1
28,620 110,187Richardson Electronics
300,900 3,237,684Rogers Corporation 1,3
54,200 3,383,164TTM Technologies 1,3
139,400 1,177,930Vishay Precision Group 1
154,000 2,676,520Zygo Corporation 1,3
41,700 633,423
32,647,135
Internet Software & Services - 2.2%comScore 1
28,000 918,120GTT Communications 1
207,660 2,186,660Marchex Cl. B
95,000 998,450Mediabistro 1
75,000 182,250Move 1
33,300 384,948QuinStreet 1
171,100 1,136,104RealNetworks 1
225,200 1,707,016Reis 1
25,000 451,250Support.com 1
631,563 1,610,485United Online 1
15,000 173,400
9,748,683
IT Services - 2.8%Cass Information Systems 3,4
29,150 1,502,974Computer Task Group 3
271,500 4,612,785CSE Global
554,700 260,630eClerx Services
1,100 19,610ExlService Holdings 1
2,800 86,548Forrester Research 3
61,700 2,211,945Hackett Group (The)
82,900 495,742Innodata 1
362,139 1,053,825Sapient Corporation 1,3
104,600 1,784,476Sykes Enterprises 1
6,300 125,181
12,153,716
Semiconductors & Semiconductor Equipment - 4.4%Advanced Energy Industries 1,3
30,400 744,800Amtech Systems 1
114,700 1,395,899ATMI 1
46,800 1,591,668Brooks Automation
158,900 1,736,777CEVA 1
98,122 1,723,022Entropic Communications 1
235,247 962,160Exar Corporation 1,3,4
233,208 2,786,836Integrated Silicon Solution 1
26,967 419,337IXYS Corporation
18,800 213,380Kulicke & Soffa Industries 1
67,900 856,219LTX-Credence Corporation 1
22,400 199,584Miraial
22,030 310,576MoSys 1
182,275 827,529Photronics 1
154,100 1,314,473Rubicon Technology 1,3,4
76,899 868,190Rudolph Technologies 1,3
52,500 599,025Silicon Image 1
160,600 1,108,140Silicon Motion Technology ADR
73,800 1,238,364Ultratech 1
5,300 154,707
19,050,686
Software - 1.5%ACI Worldwide 1,3,4
13,600 804,984Actuate Corporation 1
108,300 651,966American Software Cl. A
96,896 985,432BSQUARE Corporation 1
193,875 612,645Ellie Mae 1
10,300 297,052Envivio 1
470,000 1,452,300SeaChange International 1
156,500 1,633,860
6,438,239
Technology Hardware, Storage & Peripherals - 1.1%Intevac 1
270,500 2,623,850Qumu Corporation 1
79,200 1,267,200TransAct Technologies
78,600 903,114
4,794,164
Total 89,268,654
Materials 6.1% Chemicals - 2.3%Balchem Corporation 3,4
63,375 3,303,105Hawkins 3
29,697 1,091,068KMG Chemicals
45,600 715,008Landec Corporation 1
75,610 843,807Quaker Chemical
52,800 4,162,224
10,115,212
Construction Materials - 0.7%Ash Grove Cement 2
8,000 1,536,080Monarch Cement
52,303 1,328,496
2,864,576
Metals & Mining - 3.1%AuRico Gold
91,250 396,938Central Steel & Wire 2
788 586,272Comstock Mining 1
375,000 618,750Exeter Resource 1
196,500 118,883Geodrill 1
177,700 147,882Haynes International 3
48,801 2,635,254Hecla Mining
44,518 136,670Horsehead Holding Corporation 1,3
53,488 899,668Imdex 1
633,900 389,394MAG Silver 1
74,750 515,775Major Drilling Group International
316,000 2,446,820Materion Corporation
50,000 1,696,500Midway Gold 1
345,000 362,250Olympic Steel
3,100 88,970Pretium Resources 1
120,000 696,879RTI International Metals 1,3
25,000 694,500Universal Stainless & Alloy Products 1
30,900 1,043,493
13,474,898
Paper & Forest Products - 0.0%Qunxing Paper Holdings 5
1,500,000 19,339
Total 26,474,025
Telecommunication Services 0.0% Diversified Telecommunication Services - 0.0%Premiere Global Services 1
67 808
Total 808
Utilities 0.1% Independent Power & Renewable Electricity Producer - 0.1%Alterra Power 1
450,000 122,117China Hydroelectric ADS 1
73,100 248,540
Total 370,657
Miscellaneous 7 1.4% Total 5,887,211
TOTAL COMMON STOCKS(Cost $301,588,773)
437,231,826
PREFERRED STOCK 0.3%Seneca Foods Conv. 1,2
(Cost $578,719)
45,409 1,441,736
REPURCHASE AGREEMENT 9.3% Fixed Income Clearing Corporation,0.00% dated 3/31/14, due 4/1/14,
maturity value $40,164,000 (collateralized
by obligations of various U.S. Government
Agencies, 2.125% due 12/31/15, valued at
$40,970,475)
(Cost $40,164,000)
40,164,000
TOTAL INVESTMENTS 110.2%(Cost $342,331,492)
478,837,562
LIABILITIES LESS CASHAND OTHER ASSETS (10.2)%
(44,164,140 )
NET ASSETS 100.0% $ 434,673,422
1 Non-income producing. 2These securities are defined as Level 2 securities due to fair value being based on quoted prices for similar securities. 3All or a portion of these securities were pledged as collateral in connection with the revolving credit agreement at March 31, 2014. Total market value of pledged securities at March 31, 2014, was $98,357,501. 4At March 31, 2014, a portion of these securities were rehypothecated in connection with the Funds revolving credit agreement in the aggregate amount of $16,784,311. 5Securities for which market quotations are not readily available represent 0.1% of net assets. These securities have been valued at their fair value under procedures approved by the Funds Board of Directors. These securities are defined as Level 3 securities due to the use of significant unobservable inputs in the determination of fair value. 6At March 31, 2014, the Fund owned 5% or more of the Companys outstanding voting securities thereby making the Company an Affiliated Company as that term is defined in the Investment Company Act of 1940. 7 Includes securities first acquired in 2014 and less than 1% of net assets.TAX INFORMATION: The cost of total investments for Federal income tax purposes was $343,115,643. At March 31, 2014, net unrealized appreciation for all securities was $135,721,919, consisting of aggregate gross unrealized appreciation of $152,481,753 and aggregate gross unrealized depreciation of $16,759,834. 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 Nasdaqs 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 in accordance with the provisions of the 1940 Act, under procedures approved by the Funds 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 Funds 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 Funds investments as of March 31, 2014. 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 $ 413,419,553 $ 23,486,575 $ 325,698 $ 437,231,826 Preferred Stocks 1,441,736 1,441,736 Cash Equivalents 40,164,000 40,164,000For the three months ended March 31, 2014, certain securities have transferred in and out of Level 1 and Level 2 measurements as a result of the fair value pricing procedures for international equities. The Fund recognizes transfers between levels as of the end of the reporting period. At March 31, 2014, securities valued at $15,068,355 were transferred from Level 1 to Level 2 within the fair value hierarchy.
Level 3 Reconciliation:
Realized and Unrealized Balance as of 12/31/13 Gain (Loss) Balance as of 3/31/14 Common Stocks $ 139,469 $ 186,229 $ 325,698Repurchase Agreements:
The Fund may enter into repurchase agreements with institutions that the Funds investment adviser has determined are creditworthy. The Fund restricts repurchase agreements to maturities of no more than seven days. Securities pledged as collateral for repurchase agreements, which are held until maturity of the repurchase agreements, are marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest). Repurchase agreements could involve certain risks in the event of default or insolvency of the counter-party, including possible delays or restrictions upon the ability of the Fund to dispose of its underlying securities.Borrowings:
As of March 31, 2014, the Fund has outstanding borrowings of $45,000,000. During the period ended March 31, 2014, 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 and has granted a security interest in the securities pledged to, and in favor of, BNPP as security for the loan balance outstanding. If the Fund fails to meet certain requirements, or maintain other financial covenants required under the credit agreement, the Fund may be required to repay immediately, in part or in full, the loan balance outstanding under the credit agreement necessitating the sale of portfolio securities at potentially inopportune times. The credit agreement also permits, subject to certain conditions, BNPP to rehypothecate portfolio securities pledged by the Fund up to the amount of the loan balance outstanding. The Fund continues to receive payments in lieu of dividends and interest on rehypothecated securities. The Fund also has the right under the credit agreement to recall the rehypothecated securities from BNPP on demand. If BNPP fails to deliver the recalled security in a timely manner, the Fund will be compensated by BNPP for any fees or losses related to the failed delivery or, in the event a recalled security will not be returned by BNPP, the Fund, upon notice to BNPP, may reduce the loan balance outstanding by the amount of the recalled security failed to be returned. The Fund will receive a portion of the fees earned by BNPP in connection with the rehypothecation of portfolio securities.Transactions in Affiliated Companies:
Shares Market Value Cost of Cost of Realized Dividend Shares Market Value Affiliated Company 12/31/13 12/31/13 Purchases Sales Gain (Loss) Income 3/31/14 3/31/14 Integrated Electrical Services 934,200 $5,035,338 934,200 $5,801,382 $5,035,338 $5,801,382
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 companys outstanding voting securities at any time during the period. The Fund effected the following transactions in shares of such companies for the three months ended March 31, 2014:Other information regarding the Fund is available in the Funds most recent Report to Stockholders. This information is available through The Royce Funds (www.roycefunds.com) and on the Securities and Exchange Commissions website (www.sec.gov).
Item 2 - Controls and Procedures
(a) The Registrants principal executive and principal financial officers have concluded, based on their evaluation of the Registrants 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 Registrants 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 Registrants 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 Registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) during the Registrants 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.
/s/ Charles M. Royce Charles M. Royce President, Royce Micro-Cap Trust, Inc. Date: May 27, 2014
By: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 27, 2014 By: /s/ John D. Diederich John D. Diederich Treasurer, Royce Micro-Cap Trust, Inc. Date: May 27, 2014