Edgar Filing: ROYCE MICRO-CAP TRUST, INC /MD/

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: 12/31/2014

Date of reporting period: 9/30/2014

Item 1 - Schedule of Investments

SCHEDULE OF INVESTMENTS
ROYCE MICRO-CAP TRUST
SEPTEMBER 30, 2014 (UNAUDITED)

SHARES VALUE COMMON STOCKS – 104.2% Consumer Discretionary – 17.7% Auto Components - 2.2%

China Zenix Auto International ADR 1

50,000 $ 88,500

Drew Industries

85,600 3,611,464

Fuel Systems Solutions 1

76,000 677,160

Global & Yuasa Battery

39,500 1,684,435

Motorcar Parts of America 1

53,900 1,466,619

Spartan Motors

55,500 259,185

Standard Motor Products

26,000 895,180

8,682,543

Automobiles - 0.0%

Winnebago Industries 1

3,100 67,487

Distributors - 0.7%

Core-Mark Holding Company

25,200 1,336,608

Weyco Group

59,600 1,496,556

2,833,164

Diversified Consumer Services - 1.5%

American Public Education 1

55,700 1,503,343

Capella Education

2,700 169,020

Collectors Universe

82,700 1,819,400

Liberty Tax 1

45,100 1,456,730

Lincoln Educational Services

442,200 1,242,582

Spectrum Group International 1,2

6 3,180

6,194,255

Hotels, Restaurants & Leisure - 0.2%

Famous Dave’s of America 1

10,747 289,309

Monarch Casino & Resort 1

31,997 381,084

670,393

Household Durables - 4.2%

Cavco Industries 1

3,091 210,188

Ethan Allen Interiors 3

81,600 1,860,480

Flexsteel Industries

156,600 5,282,118

iRobot Corporation 1

15,000 456,750

Koss Corporation

73,400 148,268

Lifetime Brands

188,494 2,885,843

Skullcandy 1

78,200 609,178

Skyline Corporation 1

183,400 757,442

Stanley Furniture 1

93,468 262,178

Turtle Beach 1,3,4

139,100 1,064,115

Universal Electronics 1

67,900 3,352,223

16,888,783

Internet & Catalog Retail - 1.0%

Blue Nile 1

59,800 1,707,290

dELiA*s 1

23,300 6,431

FTD Companies 1

69,700 2,377,467

Geeknet 1

1,500 13,950

4,105,138

Leisure Products - 1.4%

Arctic Cat

41,064 1,429,848

LeapFrog Enterprises Cl. A 1,3

67,100 401,929

Nautilus 1

186,100 2,227,617

Smith & Wesson Holding Corporation 1

152,400 1,438,656

5,498,050

Media - 1.8%

Rentrak Corporation 1

65,900 4,015,946

Saga Communications Cl. A

12,100 406,318

Value Line

169,000 2,698,930

7,121,194

Multiline Retail - 0.2%

Tuesday Morning 1

47,600 923,678

Specialty Retail - 2.7%

Aeropostale 1

65,000 213,850

America’s Car-Mart 1,3

50,200 1,987,418

Cache 1

340,800 286,954

Destination Maternity

63,700 983,528

Kirkland’s 1

12,300 198,153

Le Chateau Cl. A 1

685,000 844,055

Lewis Group

57,000 285,436

Shoe Carnival 3

41,228 734,271

Stage Stores 3

25,000 427,750

Stein Mart 3

178,900 2,066,295

Systemax 1,3

44,000 548,680

Tandy Leather Factory

44,233 418,002

TravelCenters of America LLC 1

106,363 1,050,866

West Marine 1

86,000 774,000

10,819,258

Textiles, Apparel & Luxury Goods - 1.8%

Crown Crafts

255,759 1,905,405

Culp

44,500 807,675

G-III Apparel Group 1,3

1,600 132,576

J.G. Boswell Company 2

2,490 2,631,930

Marimekko

25,300 311,563

Movado Group 3

44,374 1,467,004

7,256,153

Total 71,060,096

Consumer Staples – 1.7% Beverages - 0.1%

Crimson Wine Group 1,2

58,124 537,647 Food Products - 1.4%

Calavo Growers 3

1,800 81,252

Farmer Bros. 1

55,500 1,606,725

John B. Sanfilippo & Son

3,500 113,260

Seneca Foods Cl. A 1

51,400 1,470,040

Seneca Foods Cl. B 1

42,500 1,266,500

SunOpta 1

48,900 590,223

Waterloo Investment Holdings 1,5

806,207 306,359

5,434,359

Household Products - 0.0%

Orchids Paper Products

2,000 49,120

Personal Products - 0.2%

Inter Parfums 3

24,800 682,000

Total 6,703,126

Energy – 2.4% Energy Equipment & Services - 1.8%

Dawson Geophysical

53,213 967,412

Geospace Technologies 1,3,4

16,200 569,430

Global Geophysical Services 1,2

35,000 536

Gulf Island Fabrication

29,116 500,795

Matrix Service 1,3

12,100 291,852

Newpark Resources 1

103,300 1,285,052

North American Energy Partners

50,000 322,000

Nuverra Environmental Solutions 1,3,4

10,000 147,500

Pioneer Energy Services 1,3

57,500 806,150

Tesco Corporation 3

58,000 1,151,300

Willbros Group 1

111,100 925,463

6,967,490

Oil, Gas & Consumable Fuels - 0.6%

Approach Resources 1,3

12,000 174,000

Harvest Natural Resources 1

13,176 48,356

Resolute Energy 1,3,4

102,100 640,167

Sprott Resource 1

91,800 227,871

StealthGas 1

74,500 678,695

VAALCO Energy 1,3

79,200 673,200

2,442,289

Total 9,409,779

Financials – 16.8% Banks - 1.7%

Bank of N.T. Butterfield & Son

438,100 876,200

BCB Holdings 1

906,207 179,964

Bryn Mawr Bank

25,000 708,250

Chemung Financial

31,000 870,790

Fauquier Bankshares

140,200 2,243,200

First Bancorp (The)

40,200 670,134

First Internet Bancorp

28,500 459,420

Peapack-Gladstone Financial

53,606 938,105

6,946,063

Capital Markets - 7.8%

ASA Gold and Precious Metals

206,150 2,424,324

Cowen Group 1

353,900 1,327,125

Diamond Hill Investment Group

31,879 3,922,711

Equity Trustees

42,229 706,196

Fiera Capital Cl. A

78,000 905,397

INTL FCStone 1,3,4

26,310 455,689

JZ Capital Partners

253,999 1,745,907

Manning & Napier Cl. A

37,000 621,230

Medley Management Cl. A 1

118,500 1,999,095

MVC Capital 3,4

387,400 4,168,424

OHA Investment Corporation

187,830 1,160,789

Queen City Investments 2

948 1,042,800

RHJ International 1

348,000 1,715,531

Silvercrest Asset Management
Group Cl. A

234,700 3,196,614

Sprott

622,200 1,577,792

U.S. Global Investors Cl. A

651,254 2,311,952

Urbana Corporation

237,600 396,725

Westwood Holdings Group 3

31,600 1,791,404

31,469,705

Consumer Finance - 1.2%

EZCORP Cl. A 1

194,400 1,926,504

J.G. Wentworth Company Cl. A 1

160,000 1,982,400

Regional Management 1

51,400 922,630

4,831,534

Diversified Financial Services - 1.4%

Banca Finnat Euramerica

1,310,000 777,495

GAIN Capital Holdings

25,000 159,250

HF2 Financial Management Cl. A 1

292,160 3,038,464

PICO Holdings 1,3

45,700 911,715

Warsaw Stock Exchange

52,900 603,854

5,490,778

Insurance - 2.0%

Hallmark Financial Services 1

138,000 1,422,780

Independence Holding Company

105,380 1,400,500

National Western Life Insurance Cl. A 3,4

8,033 1,984,232

State Auto Financial 3

109,264 2,241,005

United Fire Group 3

38,603 1,072,005

8,120,522

Real Estate Investment Trusts (REITs) - 0.4%

BRT Realty Trust 1

228,681 1,715,108

Real Estate Management & Development - 2.1%

AV Homes 1

36,400 533,260

Consolidated-Tomoka Land

47,016 2,307,075

Forestar Group 1,3

53,000 939,160

Griffin Land & Nurseries

47,746 1,370,310

Tejon Ranch 1,3,4

112,162 3,145,023

Tejon Ranch (Warrants) 1

16,567 33,300

8,328,128

Thrifts & Mortgage Finance - 0.2%

Alliance Bancorp, Inc. of Pennsylvania

41,344 656,129

Total 67,557,967

Health Care – 8.1% Biotechnology - 1.2%

Achillion Pharmaceuticals 1

2,262 22,575

ARIAD Pharmaceuticals 1

134,102 724,151

ArQule 1

70,000 78,400

Celsion Corporation 1

115,555 342,043

ChemoCentryx 1

70,000 315,000

Coronado Biosciences 1

360,000 756,000

Infinity Pharmaceuticals 1

100,300 1,346,026

Rigel Pharmaceuticals 1

152,392 295,640

Synthetic Biologics 1

226,000 402,280

ZIOPHARM Oncology 1,3,4

210,000 554,400

4,836,515

Health Care Equipment & Supplies - 4.1%

Allied Healthcare Products 1

131,772 263,544

AngioDynamics 1,3

91,163 1,250,756

Atrion Corporation

13,497 4,116,720

Cerus Corporation 1

40,000 160,400

CryoLife

54,473 537,649

Cynosure Cl. A 1

6,500 136,500

Derma Sciences 1

30,000 249,900

DynaVox Cl. A 1,2

20,000 1,160

Exactech 1

137,200 3,140,508

Invacare Corporation 3

131,200 1,549,472

STRATEC Biomedical

14,000 726,582

Symmetry Medical 1

11,900 120,071

Synergetics USA 1,3

219,285 747,762

Syneron Medical 1

69,200 693,384

Trinity Biotech ADR Cl. A

42,200 770,994

Utah Medical Products

42,300 2,062,548

16,527,950

Health Care Providers & Services - 2.3%

Addus HomeCare 1

71,400 1,399,440

Bio-Reference Laboratories 1,3

14,900 418,094

CorVel Corporation 1,3

40,000 1,362,000

Cross Country Healthcare 1

277,900 2,581,691

PDI 1

65,383 156,919

PharMerica Corporation 1,3

40,000 977,200

Psychemedics Corporation

77,900 1,108,517

U.S. Physical Therapy

33,257 1,176,966

9,180,827

Health Care Technology - 0.3%

Computer Programs and Systems

13,000 747,370

HealthStream 1

24,227 581,690

1,329,060

Life Sciences Tools & Services - 0.2%

Affymetrix 1

90,000 718,200

Total 32,592,552

Industrials – 24.4% Aerospace & Defense - 2.0%

Astronics Corporation 1

6,444 307,250

Astronics Corporation Cl. B 1,2

765 36,328

Breeze-Eastern Corporation 1

24,233 250,327

CPI Aerostructures 1

99,209 977,209

Ducommun 1

104,200 2,856,122

Innovative Solutions and Support 1

142,828 744,848

Kratos Defense & Security Solutions 1

72,324 474,445

SIFCO Industries

45,800 1,378,580

Sparton Corporation 1

35,700 880,005

7,905,114

Air Freight & Logistics - 0.1%

Echo Global Logistics 1

25,200 593,460

Building Products - 3.0%

AAON 3,4

146,475 2,491,540

American Woodmark 1,3

51,800 1,909,348

Apogee Enterprises

57,900 2,304,420

Burnham Holdings Cl. A 2

118,109 2,161,394

Griffon Corporation 3

36,300 413,457

Insteel Industries

39,000 801,840

Trex Company 1,3,4

51,400 1,776,898

11,858,897

Commercial Services & Supplies - 1.4%

CompX International Cl. A

107,500 1,107,250

Heritage-Crystal Clean 1

208,163 3,093,302

Team 1,3

35,000 1,326,850

5,527,402

Construction & Engineering - 3.5%

Ameresco Cl. A 1

295,700 2,025,545

Integrated Electrical Services 1

880,178 7,261,468

Layne Christensen 1,3

82,500 801,075

MYR Group 1,3,4

107,100 2,578,968

Orbit Garant Drilling 1

1,512,500 1,553,083

14,220,139

Electrical Equipment - 1.6%

AZZ

16,494 688,954

Encore Wire 3

15,000 556,350

Global Power Equipment Group

111,049 1,654,630

Jinpan International

30,843 244,276

LSI Industries

93,012 564,583

Orion Energy Systems 1

100,000 535,000

Powell Industries

27,600 1,127,736

Preformed Line Products

18,143 957,225

Vicor 1

30,000 282,000

6,610,754

Industrial Conglomerates - 0.6%

Raven Industries 3

93,400 2,278,960

Machinery - 6.2%

Alamo Group

14,200 582,200

CIRCOR International 3

15,100 1,016,683

Columbus McKinnon

24,350 535,456

Douglas Dynamics

50,000 975,000

Eastern Company (The)

39,750 635,205

Foster (L.B.) Company 3

59,200 2,719,648

Graham Corporation

100,550 2,890,813

Hurco Companies

57,266 2,156,638

Kadant

27,900 1,089,495

Luxfer Holdings ADR

45,100 778,426

164,300 4,390,096

PMFG 1

223,245 1,116,225

Standex International 3

15,700 1,163,998

Sun Hydraulics

19,900 748,041

Tennant Company 3,4

59,000 3,958,310

24,756,234

Marine - 0.2%

Clarkson

21,000 800,038

Professional Services - 2.4%

Acacia Research

58,800 910,224

CBIZ 1

47,000 369,890

Exponent 3

8,200 581,216

Franklin Covey 1

100,000 1,959,000

GP Strategies 1

5,200 149,344

Heidrick & Struggles International

102,468 2,104,693

ICF International 1

15,700 483,403

Kforce 3

71,000 1,389,470

Mistras Group 1

4,100 83,640

Resources Connection

17,200 239,768

RPX Corporation 1

104,900 1,440,277

9,710,925

Road & Rail - 1.9%

Contrans Group Cl. A

35,000 468,458

Marten Transport

5,200 92,612

Patriot Transportation Holding 1

111,681 3,788,220

Universal Truckload Services

134,200 3,254,350

7,603,640

Trading Companies & Distributors - 1.2%

Aceto Corporation

72,219 1,395,271

Houston Wire & Cable

162,075 1,941,659

Lawson Products 1

50,269 1,120,496

MFC Industrial

70,000 497,700

4,955,126

Transportation Infrastructure - 0.3%

Touax

53,197 1,068,329

Total 97,889,018

Information Technology – 20.7% Communications Equipment - 1.5%

Bel Fuse Cl. A

67,705 1,595,807

CalAmp Corporation 1

28,800 507,456

Ceragon Networks 1

29,700 70,686

ClearOne 1

25,000 210,750

Comtech Telecommunications

21,900 813,585

Extreme Networks 1

245,000 1,173,550

KVH Industries 1

8,900 100,748

Oplink Communications

35,251 592,922

PCTEL

44,100 334,719

Sandvine Corporation 1

22,700 56,144

Sierra Wireless 1

4,700 125,678

UTStarcom Holdings 1

110,400 337,824

5,919,869

Electronic Equipment, Instruments & Components - 7.1%

Agilysys 1

170,587 2,000,985

Deswell Industries

544,371 1,192,172

DTS 1

73,900 1,865,975

Identiv 1

28,100 376,821

Inficon Holding

3,600 1,097,308

LRAD Corporation 1

401,756 1,088,759

Maxwell Technologies 1

7,594 66,220

Mercury Systems 1

10,900 120,009

Mesa Laboratories

52,589 3,038,592

Newport Corporation 1,3,4

194,523 3,446,948

Orbotech 1

73,500 1,145,130

PC Connection

71,416 1,533,301

Perceptron

9,000 88,110

Pulse Electronics 1

251,793 339,921

Richardson Electronics

330,900 3,305,691

Rofin-Sinar Technologies 1

71,100 1,639,566

Rogers Corporation 1,3,4

54,200 2,967,992

TTM Technologies 1,3

139,400 949,314

Vishay Precision Group 1

154,000 2,300,760

28,563,574

Internet Software & Services - 3.1%

Frontier Services Group 1

9,130,000 1,458,006

GTT Communications 1

232,660 2,770,981

Marchex Cl. B

95,000 394,250

MecklerMedia Corporation 1,2

75,000 63,757

QuinStreet 1

218,600 907,190

RealNetworks 1

225,200 1,565,140

Reis

25,000 589,750

Stamps.com 1

3,100 98,456

Support.com 1

860,463 1,858,600

Textura Corporation 1

66,700 1,760,880

United Online 1

34,200 374,490

World Energy Solutions 1

100,000 491,000

12,332,500

IT Services - 1.8%

Cass Information Systems 3

29,150 1,206,810

Computer Task Group 3

139,900 1,552,890

ExlService Holdings 1

2,800 68,348

Forrester Research 3

54,900 2,023,614

Hackett Group (The)

145,500 867,180

Higher One Holdings 1

17,500 43,225

Innodata 1

402,139 1,226,524

Sykes Enterprises 1

6,300 125,874

7,114,465

Semiconductors & Semiconductor Equipment - 3.9%

Advanced Energy Industries 1,3

36,200 680,198

Amtech Systems 1

179,600 1,921,720

Audience 1

8,700 64,380

Brooks Automation

187,300 1,968,523

CEVA 1

98,122 1,318,760

Entropic Communications 1

235,247 625,757

Exar Corporation 1

233,208 2,087,212

Integrated Silicon Solution

26,967 370,527

IXYS Corporation

18,800 197,400

Kulicke & Soffa Industries 1

67,900 966,217

MoSys 1

182,275 441,105

Nanometrics 1

50,800 767,080

PDF Solutions 1

6,050 76,290

Photronics 1

164,800 1,326,640

Rubicon Technology 1,3,4

76,899 326,821

Rudolph Technologies 1,3

52,500 475,125

Silicon Image 1

160,600 809,424

Silicon Motion Technology ADR

18,200 490,308

Ultra Clean Holdings 1

68,800 615,760

Xcerra Corporation 1

22,400 219,296

15,748,543

Software - 2.0%

Actuate Corporation 1

240,800 939,120

American Software Cl. A

141,496 1,247,995

BSQUARE Corporation 1

193,875 758,051

Ellie Mae 1

10,300 335,780

Envivio 1

470,000 864,800

ePlus 1

38,599 2,163,474

SeaChange International 1

274,000 1,907,040

8,216,260

Technology Hardware, Storage & Peripherals - 1.3%

Avid Technology 1,2

47,800 482,780

Intevac 1

262,200 1,748,874

Qumu Corporation 1

202,200 2,628,600

TransAct Technologies

78,600 529,764

5,390,018

Total 83,285,229

Materials – 7.4% Chemicals - 2.7%

Balchem Corporation 3,4

63,375 3,585,124

Hawkins 3

29,697 1,067,904

KMG Chemicals

58,300 949,124

Landec Corporation 1

75,610 926,223

Quaker Chemical

57,500 4,122,175

10,650,550

Construction Materials - 0.8%

Ash Grove Cement 2

8,000 1,696,000

Monarch Cement

52,303 1,522,017

3,218,017

Containers & Packaging - 0.3%

UFP Technologies 1

50,836 1,117,375

Metals & Mining - 3.6%

AuRico Gold

91,250 318,462

Central Steel & Wire 2

788 606,760

Comstock Mining 1

375,000 453,750

Exeter Resource 1

196,500 117,900

Geodrill 1

252,300 146,431

Haynes International 3

48,801 2,244,358

Hecla Mining

44,518 110,405

Horsehead Holding Corporation 1,3

11,900 196,707

Imdex 1

633,900 388,508

MAG Silver 1

74,750 556,887

Major Drilling Group International

336,000 1,980,088

Materion Corporation

50,000 1,533,500

Midway Gold 1

345,000 358,800

Olympic Steel

103,100 2,120,767

Pretium Resources 1

120,000 626,814

RTI International Metals 1,3,4

25,000 616,500

Universal Stainless & Alloy Products 1

82,300 2,169,428

14,546,065

Paper & Forest Products - 0.0%

Qunxing Paper Holdings 1,5

1,500,000 19,318

Total 29,551,325

Utilities – 0.0% Independent Power & Renewable Electricity Producer - 0.0%

Alterra Power 1

450,000 122,550

Total 122,550

Miscellaneous6 – 5.0% Total 20,033,949

TOTAL COMMON STOCKS

(Cost $350,021,952)

418,205,591

PREFERRED STOCK – 0.3%

Seneca Foods Conv. 1,2

45,409 1,253,288

(Cost $578,719)

1,253,288

REPURCHASE AGREEMENT – 6.4% Fixed Income Clearing Corporation,

0.00% dated 9/30/14, due 10/1/14,

maturity value $25,716,000 (collateralized

by obligations of various U.S. Government

Agencies, 1.68% due 11/19/18, valued at

$26,232,544)

(Cost $25,716,000)

25,716,000

TOTAL INVESTMENTS – 110.9%

(Cost $376,316,671)

445,174,879 LIABILITIES LESS CASH

AND OTHER ASSETS – (10.9)% (43,605,129 )

NET ASSETS – 100.0% $ 401,569,750

1 Non-income producing. 2

These securities are defined as Level 2 securities due to fair value being based on quoted prices for similar securities. 3

All or a portion of these securities were pledged as collateral in connection with the revolving credit agreement at September 30, 2014. Total market value of pledged securities at September 30, 2014, was $73,039,653. 4

At September 30, 2014, a portion of these securities were rehypothecated in connection with the Fund's revolving credit agreement in the aggregate amount of $24,611,436. 5

Securities for which market quotations are not readily available represent 0.1% of net assets. These securities have been valued at their fair value under procedures approved by the Fund's Board of Directors. These securities are defined as Level 3 securities due to the use of significant unobservable inputs in the determination of fair value. 6

Includes securities first acquired in 2014 and less than 1% of net assets.

TAX INFORMATION: The cost of total investments for Federal income tax purposes was $377,125,751. At September 30, 2014, net unrealized appreciation for all securities was $68,049,128, consisting of aggregate gross unrealized appreciation of $104,215,271 and aggregate gross unrealized depreciation of $36,166,143. The primary difference between book and tax basis cost is the timing of the recognition of losses on securities sold.

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

Various inputs are used in determining the value of the Fund’s investments, as noted above. These inputs are summarized in the three broad levels below:

Level 1 – quoted prices in active markets for identical securities. Level 2 –

other significant observable inputs (including quoted prices for similar securities, foreign securities that may be fair valued and repurchase agreements). The table below includes all Level 2 securities. Level 2 securities with values based on quoted prices for similar securities are noted in the Schedule of Investments. Level 3 –

significant unobservable inputs (including last trade price before trading was suspended, or at a discount thereto for lack of marketability or otherwise, market price information regarding other securities, information received from the company and/or published documents, including SEC filings and financial statements, or other publicly available information).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used to value the Fund’s investments as of September 30, 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 $ 408,615,641 $ 9,264,273 $ 325,677 $ 418,205,591 Preferred Stocks – 1,253,288 – 1,253,288 Cash Equivalents – 25,716,000 – 25,716,000

For the nine months ended September 30, 2014, certain securities have transferred in and out of Level 1 and Level 2 measurements. The Fund recognizes transfers between levels as of the end of the reporting period. At September 30, 2014, securities valued at $64,293 were transferred from Level 1 to Level 2 within the fair value hierarchy.

Level 3 Reconciliation:

Balance as of 12/31/13 Unrealized Gain (Loss) Balance as of 9/30/14 Common Stocks $ 139,469 $ 186,208 $ 325,677

Repurchase Agreements:
The Fund may enter into repurchase agreements with institutions that the Fund’s investment adviser has determined are creditworthy. The Fund restricts repurchase agreements to maturities of no more than seven days. Securities pledged as collateral for repurchase agreements, which are held until maturity of the repurchase agreements, are marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest). Repurchase agreements could involve certain risks in the event of default or insolvency of the counter-party, including possible delays or restrictions upon the ability of the Fund to dispose of its underlying securities.

Borrowings:
As of September 30, 2014, the Fund has outstanding borrowings of $45,000,000 with BNP Paribas Prime Brokerage Inc. (BNPP). During the period ended September 30, 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:
An “Affiliated Company” as defined in the Investment Company Act of 1940, is a company in which a fund owns 5% or more of the company’s outstanding voting securities at any time during the period. The Fund effected the following transactions in shares of such companies for the nine months ended September 30, 2014:

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 9/30/14 9/30/14 Integrated Electrical Services 1 934,200 $5,035,338 $1,038,268 $469,325 $1,174,545 – $5,035,338 $1,174,545 –
1 Not an Affiliated Company at September 30, 2014.

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

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

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

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

SIGNATURES

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

Royce Micro-Cap Trust, Inc.
By:

/s/ Charles M. Royce Charles M. Royce President, Royce Micro-Cap Trust, Inc. Date: November 24, 2014

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

By:

/s/ Charles M. Royce Charles M. Royce President, Royce Micro-Cap Trust, Inc. Date: November 24, 2014

By:

/s/ John D. Diederich John D. Diederich Treasurer, Royce Micro-Cap Trust, Inc. Date: November 24, 2014