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, LP
745 Fifth Avenue
New York, NY 10151

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

Date of fiscal year end: 12/31/2016

Date of reporting period: 3/31/2016

Item 1 - Schedule of Investments

SCHEDULE OF INVESTMENTS ROYCE MICRO-CAP TRUST MARCH 31, 2016 (UNAUDITED)
SHARES VALUE COMMON STOCKS – 105.6% Consumer Discretionary – 15.7% Auto Components - 3.2%

Drew Industries 1

32,800 $ 2,114,288

Fox Factory Holding 2

2,300 36,363

Fuel Systems Solutions 2

71,000 392,630

Motorcar Parts of America 2

83,700 3,178,926

Sebang Global Battery

50,500 1,878,957

Standard Motor Products

61,853 2,143,206

Unique Fabricating

3,500 43,225 9,787,595 Distributors - 1.2%

Fenix Parts 2

444,200 2,043,320

Weyco Group

59,600 1,586,552 3,629,872 Diversified Consumer Services - 2.1%

American Public Education 2

73,200 1,510,116

Capella Education

1,300 68,432

Collectors Universe

96,100 1,595,260

Liberty Tax Cl. A 1

98,900 1,937,451

Lincoln Educational Services 2

100,000 248,000

Universal Technical Institute

270,000 1,163,700 6,522,959 Hotels, Restaurants & Leisure - 1.1%

Century Casinos 2

158,100 973,896

Lindblad Expeditions Holdings 2

234,000 2,325,960 3,299,856 Household Durables - 2.6%

Cavco Industries 1, 2, 3

20,891 1,952,473

Ethan Allen Interiors 1

50,100 1,594,182

Flexsteel Industries 1

16,500 720,720

iRobot Corporation 1, 2

15,000 529,500

Lifetime Brands 1, 3

130,794 1,971,066

Stanley Furniture 2

193,468 512,690

Universal Electronics 2

15,100 936,049 8,216,680 Internet & Catalog Retail - 1.0%

Blue Nile 1

44,400 1,141,524

FTD Companies 1, 2

70,700 1,855,875 2,997,399 Leisure Products - 1.2%

Black Diamond 2

195,926 885,586

Nautilus 2

111,500 2,154,180

Smith & Wesson Holding Corporation 1, 2

26,400 702,768

Sturm, Ruger & Co.

600 41,028 3,783,562 Media - 0.5%

McClatchy Company (The) Cl. A 2

593,136 622,793

New Media Investment Group

52,800 878,592 1,501,385 Specialty Retail - 1.4%

Destination Maternity

228,200 1,560,888

Haverty Furniture

30,300 641,148

Kirkland’s

7,900 138,329

MarineMax 2

5,400 105,138

Shoe Carnival 1

31,628 852,691

Stage Stores 1

15,000 120,900

TravelCenters of America LLC 2

5,400 36,558

West Marine 2

86,000 781,740 4,237,392 Textiles, Apparel & Luxury Goods - 1.4%

Crown Crafts

112,159 1,037,471

Culp

32,900 862,638

J.G. Boswell Company 4

2,490 1,556,250

YGM Trading

1,482,000 918,924 4,375,283 Total 48,351,983 Consumer Staples – 3.0% Beverages - 0.1%

Crimson Wine Group 2, 4

58,124 485,335 Food Products - 2.9%

Binggrae

18,078 1,097,074

Farmer Bros. 1, 2

45,100 1,256,937

John B. Sanfilippo & Son

18,000 1,243,620

Landec Corporation 2

75,610 793,905

Seneca Foods Cl. A 2

51,400 1,785,636

Seneca Foods Cl. B 2

42,500 1,625,200

SunOpta 2

185,681 828,137

Waterloo Investment Holdings 2, 5

806,207 225,738 8,856,247 Total 9,341,582 Energy – 4.8% Energy Equipment & Services - 1.8%

Aspen Aerogels 2

94,985 427,433

Canadian Energy Services & Technology

25,000 61,405

CARBO Ceramics 2

35,000 497,000

Dawson Geophysical 2

73,654 336,599

Era Group 2

226,435 2,123,960

Geospace Technologies 1, 2

9,500 117,230

Matrix Service 1, 2

25,300 447,810

Newpark Resources 2

11,200 48,384

North American Energy Partners

50,000 102,000

Pioneer Energy Services 1, 2

57,500 126,500

TerraVest Capital

84,000 400,354

Tesco Corporation 1, 2

58,000 499,380

Unit Corporation 2

31,000 273,110 5,461,165 Oil, Gas & Consumable Fuels - 3.0%

Ardmore Shipping

103,000 870,350

Cross Timbers Royalty Trust

67,631 1,025,286

Dorchester Minerals L.P.

106,127 1,208,786

Dorian LPG 2

50,000 470,000

Hugoton Royalty Trust 2

279,972 383,562

Panhandle Oil & Gas Cl. A

5,000 86,550

Permian Basin Royalty Trust

266,333 1,640,611

Sabine Royalty Trust

59,548 1,762,621

San Juan Basin Royalty Trust

203,407 1,047,546

StealthGas 2

220,085 776,900 9,272,212 Total 14,733,377 Financials – 17.0% Banks - 2.1%

Bank of N.T. Butterfield & Son

438,100 740,389

Blue Hills Bancorp

50,000 683,500

Bryn Mawr Bank

25,000 643,250

Caribbean Investment Holdings 2

735,647 79,243

Chemung Financial 1

31,000 816,850

Fauquier Bankshares 1

140,200 2,112,814

Live Oak Bancshares

30,900 463,500

Park Sterling

6,300 42,021

Peapack-Gladstone Financial

45,606 770,741 6,352,308 Capital Markets - 8.4%

ASA Gold and Precious Metals

206,150 2,110,976

Cowen Group 2

100,000 381,000

Diamond Hill Investment Group 1

5,579 989,491

Dundee Corporation Cl. A 2

435,000 2,009,625

EQT Holdings

43,150 439,919

Fiera Capital Cl. A

78,000 810,779

INTL FCStone 1, 2

33,127 885,485

JMP Group LLC

142,800 746,844

JZ Capital Partners

247,999 1,419,411

Manning & Napier Cl. A

170,600 1,376,742

Medley Management Cl. A

153,400 843,700

MVC Capital 1

372,400 2,778,104

OHA Investment

204,620 693,662

Queen City Investments 4

948 1,232,400

Silvercrest Asset Management

Group Cl. A

213,600 2,721,264

Sprott

1,454,933 2,845,451

U.S. Global Investors Cl. A

646,254 1,118,019

Urbana Corporation

237,600 347,596

Westwood Holdings Group 1

12,400 727,260

ZAIS Group Holdings Cl. A 1, 2, 3

262,960 1,277,986 25,755,714 Consumer Finance - 0.2%

EZCORP Cl. A 1, 2, 3

201,000 596,970

J.G. Wentworth Company Cl. A 2

135,000 164,700 761,670 Diversified Financial Services - 1.7%

Banca Finnat Euramerica

860,000 373,823

GAIN Capital Holdings

25,000 164,000

PICO Holdings 1, 2, 3

153,700 1,572,351

Value Line

165,672 2,655,722

Warsaw Stock Exchange

52,900 555,768 5,321,664 Insurance - 1.5%

Hallmark Financial Services 2

114,000 1,311,000

Independence Holding Company

100,080 1,593,273

State Auto Financial 1

61,264 1,351,484

United Fire Group 1

6,000 262,920 4,518,677 Real Estate Investment Trusts (REITs) - 0.5%

BRT Realty Trust 2

230,331 1,600,801 Real Estate Management & Development - 2.6%

AV Homes 2

87,400 992,864

Forestar Group 1, 2

53,000 691,120

FRP Holdings 1, 2, 3

71,800 2,556,080

Griffin Industrial Realty

47,746 1,172,642

Hopefluent Group Holdings

1,400,000 337,487

Marcus & Millichap 2

1,800 45,702

Tejon Ranch 1, 2

115,162 2,368,882

Tejon Ranch (Warrants) 2

13,146 1 8,164,778 Total 52,475,612 Health Care – 15.3% Biotechnology - 4.3%

Abeona Therapeutics 2

376,321 963,382

Aquinox Pharmaceuticals 1, 2

96,167 848,193

ARIAD Pharmaceuticals 1, 2, 3

114,102 729,112

Avalanche Biotechnologies 2

193,346 999,599

BioCryst Pharmaceuticals 2

160,000 452,800

ChemoCentryx 2

32,900 81,921

Fortress Biotech 2

147,400 456,940

Invitae Corporation 2

156,412 1,600,095

Keryx Biopharmaceuticals 2

281,725 1,315,656

Kindred Biosciences 2

148,000 510,600

Progenics Pharmaceuticals 2

6,500 28,340

Sangamo BioSciences 2

191,785 1,160,299

Stemline Therapeutics 2

174,179 811,674

Versartis 2

39,592 317,528

Zealand Pharma 2

151,000 3,112,926 13,389,065 Health Care Equipment & Supplies - 6.7%

Analogic Corporation

17,200 1,358,972

AngioDynamics 1, 2

106,061 1,303,490

Antares Pharma 2

406,900 354,044

Atrion Corporation 1

7,277 2,877,035

Cerus Corporation 1, 2, 3

140,000 830,200

Derma Sciences 2

177,100 549,010

Exactech 1, 2, 3

128,500 2,603,410

Inogen 2

5,400 242,892

Invacare Corporation 1

44,300 583,431

STRATEC Biomedical

14,000 678,882

SurModics 2

282,000 5,191,620

Symmetry Surgical 2

2,975 29,333

Syneron Medical 2

69,200 505,852

TearLab Corporation 2

85,000 53,550

Trinity Biotech ADR Cl. A 2

100,500 1,171,830

Utah Medical Products

38,100 2,382,774 20,716,325 Health Care Providers & Services - 3.1%

Aceto Corporation 1

79,600 1,875,376

BioTelemetry 2

49,700 580,496

CorVel Corporation 1, 2, 3

36,000 1,419,120

Cross Country Healthcare 2

175,400 2,039,902

Landauer

33,743 1,115,881

National Research Cl. A

40,033 622,513

PharMerica Corporation 1, 2, 3

40,000 884,400

Psychemedics Corporation

37,500 515,625

U.S. Physical Therapy

12,600 626,598 9,679,911 Health Care Technology - 0.2%

Connecture 2

20,000 51,200

Vocera Communications 2

33,100 422,025 473,225 Pharmaceuticals - 1.0%

Agile Therapeutics 1, 2, 3

80,000 496,800

Lipocine 2

90,467 918,240

Theravance Biopharma 2

83,509 1,569,969 2,985,009 Total 47,243,535 Industrials – 15.7% Aerospace & Defense - 0.4%

Astronics Corporation 2

1,800 68,670

CPI Aerostructures 2

9,500 69,635

FLYHT Aerospace Solutions 2

1,916,800 243,520

Innovative Solutions and Support 2

142,828 375,638

SIFCO Industries 2

45,800 425,482

Vectrus 2

1,900 43,225 1,226,170 Air Freight & Logistics - 0.2%

Frontier Services Group 2

3,009,086 535,304 Building Products - 1.5%

Burnham Holdings Cl. A 4

117,000 1,931,670

DIRTT Environmental Solutions 2

96,000 399,153

Insteel Industries

47,100 1,439,847

Patrick Industries 2

16,900 767,091 4,537,761 Commercial Services & Supplies - 1.7%

Atento 2

145,701 1,193,291

CompX International Cl. A

107,500 1,128,750

Heritage-Crystal Clean 1, 2

249,777 2,482,784

Team 1, 2

17,500 531,650 5,336,475 Construction & Engineering - 2.7%

Ameresco Cl. A 2

275,700 1,315,089

Integrated Electrical Services 2

343,504 5,039,204

Layne Christensen 1, 2

50,000 359,500

Northwest Pipe 2

108,600 1,001,292

NV5 Holdings 2

26,600 713,678 8,428,763 Electrical Equipment - 1.2%

Encore Wire 1

3,400 132,362

LSI Industries

143,012 1,680,391

Orion Energy Systems 2

170,000 236,300

Powell Industries

23,000 685,630

Power Solutions International 1, 2

7,100 97,980

Preformed Line Products

20,743 757,534 3,590,197 Industrial Conglomerates - 0.7%

Raven Industries 1

129,159 2,069,127 Machinery - 4.2%

Chart Industries 2

2,400 52,128

CIRCOR International 1

1,100 51,029

Columbus McKinnon

5,300 83,528

Eastern Company (The)

39,750 652,695

Federal Signal

3,200 42,432

Foster (L.B.) Company 1

99,300 1,803,288

Graham Corporation 1

81,150 1,615,697

Hurco Companies

57,266 1,889,205

Kadant

36,400 1,643,824

Luxfer Holdings ADR

59,712 633,544

Lydall 2

4,900 159,348

103,900 1,421,352

Pfeiffer Vacuum Technology

6,000 672,977

Sun Hydraulics

8,200 272,158

Tennant Company 1

38,500 1,981,980

Twin Disc 2

11,700 118,521 13,093,706 Marine - 0.1%

Clarkson

13,000 414,501 Professional Services - 1.5%

Acacia Research 1, 2

213,200 808,028

CBIZ 2

47,000 474,230

Franklin Covey 2

40,100 705,359

Heidrick & Struggles International

46,300 1,097,310

Kforce 1

4,700 92,026

Navigant Consulting 2

5,100 80,631

Resources Connection

20,000 311,200

RPX Corporation 2

100,000 1,126,000 4,694,784 Road & Rail - 0.6%

Marten Transport

3,300 61,776

Patriot Transportation Holding 1, 2

29,460 595,681

Universal Truckload Services 1

77,600 1,278,072 1,935,529 Trading Companies & Distributors - 0.7%

Central Steel & Wire 4

788 323,080

Houston Wire & Cable

249,918 1,746,927 2,070,007 Transportation Infrastructure - 0.2%

Touax 2

53,197 541,769 Total 48,474,093 Information Technology – 25.4% Communications Equipment - 2.0%

ADTRAN

27,500 556,050

Alliance Fiber Optic Products 2

84,400 1,248,276

Applied Optoelectronics 1, 2

7,500 111,825

Bel Fuse Cl. A

67,705 890,321

CalAmp Corporation 2

6,500 116,545

Ceragon Networks 2

29,700 37,719

Clearfield 2

80,200 1,288,814

ClearOne

25,000 290,000

Extreme Networks 2

104,000 323,440

Harmonic 2

97,000 317,190

KVH Industries 2

8,900 84,995

Oclaro 2

152,300 822,420

PCTEL

34,100 162,998

Sandvine Corporation

22,700 48,590 6,299,183 Electronic Equipment, Instruments & Components - 7.8%

Agilysys 1, 2, 3

170,587 1,741,693

DTS 1, 2

73,500 1,600,830

Electro Rent

171,800 1,590,868

ePlus 2

2,700 217,377

Fabrinet 2

2,200 71,170

FARO Technologies 1, 2

86,000 2,770,060

GSI Group 2

6,100 86,376

HollySys Automation Technologies 2

49,200 1,035,660

Inficon Holding

3,600 1,188,706

LRAD Corporation

853,456 1,416,737

Mercury Systems 2

47,500 964,250

Mesa Laboratories 1

26,500 2,553,275

Orbotech 1, 2, 3

127,300 3,027,194

PC Connection

43,716 1,128,310

Perceptron 2

8,500 41,225

Richardson Electronics

330,900 1,707,444

Rogers Corporation 1, 2

1,600 95,792

Systemax 1, 2, 3

74,000 648,980

Vishay Precision Group 2

158,000 2,213,580 24,099,527 Internet Software & Services - 4.4%

Actua Corporation 2

110,257 997,826

Care.com 1, 2, 3

401,654 2,470,172

comScore 2

26,105 784,194

IZEA 2

55,630 386,629

Marchex Cl. B

85,000 378,250

QuinStreet 2

484,300 1,656,306

RealNetworks 2

244,000 990,640

Reis

25,000 588,750

SciQuest 2

94,000 1,304,720

Solium Capital 2

186,300 972,561

Spark Networks 2

75,259 167,075

Stamps.com 2

9,900 1,052,172

Support.com 2

959,358 825,048

United Online 2

85,866 990,894 13,565,237 IT Services - 1.4%

Computer Task Group 1

200,538 1,024,749

Hackett Group (The)

111,100 1,679,832

Innodata 2

437,275 988,242

MoneyGram International 2

99,203 607,122

Sykes Enterprises 2

2,900 87,522 4,387,467 Semiconductors & Semiconductor Equipment - 4.8%

Amtech Systems 1, 2

160,284 1,040,243

Applied Micro Circuits 2

97,917 632,544

Brooks Automation

131,200 1,364,480

Cascade Microtech 1, 2

35,000 721,700

Daqo New Energy ADR 2

49,900 928,639

GSI Technology 2

92,481 379,172

Intermolecular 2

240,000 607,200

IXYS Corporation

18,800 210,936

Kopin Corporation 2

242,200 402,052

Kulicke & Soffa Industries 2

88,000 996,160

MoSys 1, 2, 3

684,275 444,779

Nanometrics 2

70,800 1,121,472

Nova Measuring Instruments 2

140,100 1,458,441

Photronics 2

169,900 1,768,659

Rudolph Technologies 2

2,900 39,614

Sigma Designs 2

62,700 426,360

Silicon Motion Technology ADR

35,300 1,369,993

Ultra Clean Holdings 2

57,000 305,520

Xcerra Corporation 2

64,200 418,584 14,636,548 Software - 3.8%

American Software Cl. A

85,552 769,968

BSQUARE Corporation 2

83,675 495,356

Computer Modelling Group

330,500 2,580,381

Model N 2

111,000 1,195,470

Monotype Imaging Holdings

15,000 358,800

PSI 2

34,000 518,427

QAD Cl. A

1,600 34,000

Rubicon Project 2

60,500 1,105,940

SeaChange International 2

284,200 1,568,784

Textura Corporation 1, 2

86,600 1,613,358

TiVo 2

151,600 1,441,716 11,682,200 Technology Hardware, Storage & Peripherals - 1.2%

Intevac 2

323,600 1,456,200

Kortek

135,007 1,316,306

Silicon Graphics International 2

106,400 757,568 3,530,074 Total 78,200,236 Materials – 6.2% Chemicals - 1.4%

Balchem Corporation

11,775 730,286

FutureFuel Corporation

85,262 1,005,239

Quaker Chemical 1

27,400 2,325,164

Trecora Resources 2

10,000 96,200 4,156,889 Construction Materials - 0.7%

Ash Grove Cement 4

8,000 1,736,000

Monarch Cement 4

16,303 505,556 2,241,556 Containers & Packaging - 0.4%

UFP Technologies 2

53,945 1,201,355 Metals & Mining - 3.7%

Alamos Gold Cl. A

236,044 1,250,420

AMG Advanced Metallurgical Group

5,000 52,537

Ampco-Pittsburgh

102,002 1,418,848

Comstock Mining 2

1,875,000 693,750

Exeter Resource 2

1,391,800 765,490

Haynes International 1

15,000 547,500

Imdex 2

525,666 86,634

MAG Silver 2

96,050 906,712

Major Drilling Group International 2

756,857 3,671,375

Olympic Steel

72,100 1,248,051

Pretium Resources 2

90,000 483,003

Universal Stainless & Alloy Products 2

9,800 99,862

Victoria Gold 2

890,000 150,760 11,374,942 Total 18,974,742 Telecommunication Services – 0.1% Diversified Telecommunication Services - 0.1%

ORBCOMM 2

18,000 182,340 Total 182,340 Utilities – 0.3% Gas Utilities - 0.1%

Shizuoka Gas

40,000 268,337 Independent Power & Renewable Electricity Producer - 0.0%

Alterra Power 2

450,000 152,454 Water Utilities - 0.2%

GWR Global Water Resources

106,000 624,370 Total 1,045,161 Miscellaneous6 – 2.1% Total 6,296,598 TOTAL COMMON STOCKS

(Cost $327,812,686)

325,319,259 PREFERRED STOCK – 0.5%

Seneca Foods Conv. 2, 4

45,409 1,577,508

(Cost $578,719)

1,577,508 REPURCHASE AGREEMENT – 8.5% Fixed Income Clearing Corporation,

0.03% dated 3/31/16, due 4/1/16,

maturity value $26,304,022 (collateralized

by obligations of various U.S. Government

Agencies, 2.00% due 5/31/21, valued at $26,833,013)

(Cost $26,304,000)

26,304,000 TOTAL INVESTMENTS – 114.6%

(Cost $354,695,405)

353,200,767 LIABILITIES LESS CASH

AND OTHER ASSETS – (14.6)%

(45,011,079 ) NET ASSETS – 100.0% $ 308,189,688
1

All or a portion of these securities were pledged as collateral in connection with the revolving credit agreement at March 31, 2016. Total market value of pledged securities at March 31, 2016, was $75,372,372.

2 Non-income producing. 3

At March 31, 2016, a portion of these securities were rehypothecated in connection with the Fund’s revolving credit agreement in the aggregate amount of $19,495,530.

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

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.

Includes securities first acquired in 2016 and less than 1% of net assets.

TAX INFORMATION: The cost of total investments for Federal income tax purposes was $356,189,490. At March 31, 2016, net unrealized depreciation for all securities was $2,988,723, consisting of aggregate gross unrealized appreciation of $58,775,810 and aggregate gross unrealized depreciation of $61,764,533. 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 March 31, 2016. 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 $317,323,229 $7,770,292 $225,738 $325,319,259 Preferred Stocks – 1,577,508 – 1,577,508 Cash Equivalents – 26,304,000 – 26,304,000

For the three months ended March 31, 2016, 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 March 31, 2016, securities valued at $15,968,750 were transferred from Level 2 to Level 1 within the fair value hierarchy.

Level 3 Reconciliation:
Unrealized Balance as of 12/31/15 Gain (Loss) Balance as of 3/31/16 Common Stocks $225,738 $– $225,738

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
3/31/16 Valuation Technique(s) Unobservable
Input(s) Range Average Impact to Valuation From
an Increase in Input1 Discounted Present Value Common Stocks $225,738 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, 2016 is overnight and continuous.

Borrowings:
The Fund has entered into a revolving credit agreement (the credit agreement) with BNP Paribas Prime Brokerage Inc. (BNPP). As of March 31, 2016, the Fund has outstanding borrowings of $45,000,000. During the period ended March 31, 2016, 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 is compensated by BNPP for any fees or losses related to the failed delivery or, in the event a recalled security is not 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 receives a portion of the fees earned by BNPP 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 20, 2016

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 20, 2016 By: /s/ Peter K. Hoglund Peter K. Hoglund Treasurer, Royce Micro-Cap Trust, Inc. Date: May 20, 2016