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: 9/30/2016

Item 1 - Schedule of Investments

SCHEDULE OF INVESTMENTS
ROYCE MICRO-CAP TRUST
SEPTEMBER 30, 2016 (UNAUDITED)

SHARES VALUE COMMON STOCKS – 101.2% Consumer Discretionary – 14.0% Auto Components - 2.9%

Drew Industries 1,2

17,700 $ 1,734,954

Fox Factory Holding 3

27,500 631,675

Motorcar Parts of America 3

80,700 2,322,546

Sebang Global Battery

50,500 1,699,185

Standard Motor Products

71,360 3,408,153

Unique Fabricating

3,500 42,840 9,839,353 Distributors - 0.9%

Fenix Parts 3

422,300 1,672,308

Weyco Group

56,600 1,520,842 3,193,150 Diversified Consumer Services - 1.5%

American Public Education 3

73,200 1,450,092

Collectors Universe

116,100 2,151,333

Liberty Tax Cl. A 2

98,900 1,263,942

Universal Technical Institute

270,000 480,600 5,345,967 Hotels, Restaurants & Leisure - 1.1%

Century Casinos 3

222,500 1,537,475

Lindblad Expeditions Holdings 3

234,000 2,106,000 3,643,475 Household Durables - 2.6%

Cavco Industries 1,2,3

19,291 1,910,773

Ethan Allen Interiors 2

45,200 1,413,404

Flexsteel Industries 2

16,500 853,380

iRobot Corporation 2,3

15,000 659,700

Lifetime Brands 2

124,294 1,672,997

Stanley Furniture

193,468 346,308

Universal Electronics 3

15,100 1,124,346

ZAGG 3

110,000 891,000 8,871,908 Internet & Direct Marketing Retail - 0.8%

Blue Nile 1,2

37,900 1,304,518

FTD Companies 3

67,200 1,382,304 2,686,822 Leisure Products - 1.2%

Black Diamond 3

195,926 1,007,060

Nautilus 3

111,200 2,526,464

Smith & Wesson Holding Corporation 2,3

22,400 595,616

Sturm, Ruger & Co.

600 34,656 4,163,796 Media - 0.6%

McClatchy Company (The) Cl. A 3

69,313 1,118,019

New Media Investment Group

66,200 1,026,100 2,144,119 Specialty Retail - 1.1%

Destination Maternity

228,200 1,615,656

Haverty Furniture

32,600 653,304

Kirkland’s 3

11,000 133,980

MarineMax 3

5,400 113,130

Shoe Carnival 2

21,028 560,606

Stage Stores 2

15,000 84,150

TravelCenters of America LLC 3

5,400 38,664

West Marine 3

86,000 711,220 3,910,710 Textiles, Apparel & Luxury Goods - 1.3%

Crown Crafts

104,059 1,052,037

Culp

32,900 979,433

J.G. Boswell Company 4

2,490 1,593,600

YGM Trading

1,482,000 787,200 4,412,270 Total 48,211,570 Consumer Staples – 2.5% Beverages - 0.2%

Crimson Wine Group 3,4

58,124 503,354 Food Products - 2.3%

Farmer Bros. 1,2,3

49,100 1,745,505

John B. Sanfilippo & Son

19,000 975,270

Landec Corporation 3

75,610 1,013,930

Seneca Foods Cl. A 3

35,400 999,696

Seneca Foods Cl. B 3

42,500 1,555,500

SunOpta 3

207,981 1,468,346

Waterloo Investment Holdings 3,5

806,207 241,862 8,000,109 Total 8,503,463 Energy – 5.1% Energy Equipment & Services - 2.1%

Aspen Aerogels 3

94,985 566,111

Canadian Energy Services & Technology

25,000 98,899

CARBO Ceramics 3

39,000 426,660

Dawson Geophysical 3

73,654 561,980

Era Group 3

307,409 2,474,642

Geospace Technologies 2,3

9,500 185,060

Matrix Service 2,3

52,000 975,520

Newpark Resources 3

11,200 82,432

North American Energy Partners

50,000 125,000

Pioneer Energy Services 2,3

57,500 232,300

TerraVest Capital

84,000 477,000

Tesco Corporation 2,3

58,000 473,280

Unit Corporation 3

31,000 576,600 7,255,484 Oil, Gas & Consumable Fuels - 3.0%

Ardmore Shipping

52,700 371,008

Cross Timbers Royalty Trust

67,631 1,238,324

Dorchester Minerals L.P.

106,127 1,635,417

Dorian LPG 3

50,000 300,000

Hugoton Royalty Trust

287,574 678,675

Panhandle Oil & Gas Cl. A

5,500 96,415

Permian Basin Royalty Trust

266,333 1,856,341

Sabine Royalty Trust

59,548 2,188,984

San Juan Basin Royalty Trust

203,407 1,200,101

StealthGas 3

220,085 761,494 10,326,759 Total 17,582,243 Financials – 12.2% Banks - 2.0%

Bank of N.T. Butterfield & Son

43,810 1,084,736

Blue Hills Bancorp

50,000 751,000

Bryn Mawr Bank

25,000 799,750

Caribbean Investment Holdings 3

735,647 76,281

Chemung Financial

31,000 898,690

Fauquier Bankshares

133,200 1,930,068

Live Oak Bancshares

30,900 445,578

Peapack-Gladstone Financial

45,606 1,022,030 7,008,133 Capital Markets - 8.2%

ASA Gold and Precious Metals

171,150 2,531,309

Cowen Group 3

100,000 363,000

Diamond Hill Investment Group 2

4,479 827,674

Dundee Corporation Cl. A 3

413,200 2,125,919

EQT Holdings

43,150 649,671

Fiera Capital Cl. A

78,000 725,333

GAIN Capital Holdings

25,000 154,500

INTL FCStone 2,3

41,727 1,621,094

JZ Capital Partners

247,999 1,552,327

Manning & Napier Cl. A

136,600 968,494

Medley Management Cl. A

153,400 1,290,094

MVC Capital 1,2

360,300 2,986,887

OHA Investment

204,620 642,507

Queen City Investments 4

948 1,092,096

Silvercrest Asset Management Group Cl. A

203,300 2,413,171

Sprott

1,414,533 2,609,223

U.S. Global Investors Cl. A

646,254 1,189,107

Urbana Corporation

237,600 400,241

Value Line

146,660 2,381,758

Warsaw Stock Exchange

52,900 517,547

Westwood Holdings Group 2

12,400 658,564

ZAIS Group Holdings Cl. A 1,2,3

262,960 604,808 28,305,324 Consumer Finance - 0.7%

EZCORP Cl. A 1,2,3

201,000 2,223,060

J.G. Wentworth Company Cl. A 3,4

135,000 44,550 2,267,610 Diversified Financial Services - 0.6%

Banca Finnat Euramerica

860,000 300,356

PICO Holdings 1,2,3

147,100 1,734,309 2,034,665 Insurance - 0.7%

Hallmark Financial Services 3

114,000 1,173,060

State Auto Financial 2

59,264 1,411,076 2,584,136 Total 42,199,868 Health Care – 14.4% Biotechnology - 4.4%

Abeona Therapeutics 3

374,821 2,248,926

Adverum Biotechnologies 3

92,346 379,542

Aquinox Pharmaceuticals 1,2,3

162,622 2,172,630

ARIAD Pharmaceuticals 1,2,3

76,102 1,041,836

BioCryst Pharmaceuticals 3

160,000 705,600

Invitae Corporation 3

156,412 1,370,169

Keryx Biopharmaceuticals 3

157,725 837,520

Kindred Biosciences 3

148,000 735,560

Progenics Pharmaceuticals 3

6,500 41,145

Sangamo BioSciences 3

191,785 887,964

Stemline Therapeutics 3

78,679 852,094

Zafgen 3

504,075 1,668,488

Zealand Pharma 3

143,600 2,141,898 15,083,372 Health Care Equipment & Supplies - 5.8%

Analogic Corporation

18,200 1,612,520

AngioDynamics 2,3

36,061 632,510

Antares Pharma 3

406,900 683,592

Atrion Corporation 1,2

6,914 2,949,512

Cerus Corporation 1,2,3

140,000 869,400

Derma Sciences 3

177,100 827,057

Exactech 1,2,3

112,300 3,035,469

Inogen 3

5,400 323,460

Invacare Corporation 2

44,300 494,831

STRATEC Biomedical

14,000 806,851

Surmodics 3

130,492 3,926,504

Syneron Medical 3

69,200 495,472

TearLab Corporation 3

85,000 55,250

Trinity Biotech ADR Cl. A 3

100,500 1,328,610

Utah Medical Products

36,200 2,164,760 20,205,798 Health Care Providers & Services - 2.6%

Aceto Corporation

79,600 1,511,604

BioTelemetry 3

49,700 922,929

Cross Country Healthcare 3

157,100 1,850,638

Landauer

31,800 1,414,464

National Research Cl. A

40,033 652,138

PharMerica Corporation 3

40,000 1,122,800

Psychemedics Corporation

37,500 744,000

U.S. Physical Therapy

10,000 627,000 8,845,573 Health Care Technology - 0.2%

Connecture 3

20,000 37,600

Vocera Communications 3

33,100 559,390 596,990 Pharmaceuticals - 1.4%

Agile Therapeutics 2,3

80,000 558,400

Lipocine 3

355,404 1,585,102

Theravance Biopharma 3

74,509 2,700,206 4,843,708 Total 49,575,441 Industrials – 17.8%

Aerospace & Defense - 0.7%

Astronics Corporation 3

4,400 198,220

CPI Aerostructures 3

9,500 65,170

FLYHT Aerospace Solutions 3

1,916,800 306,817

Innovative Solutions and Support 3

142,828 454,193

Mercury Systems 3

31,400 771,498

SIFCO Industries 3

45,800 459,832 2,255,730 Building Products - 1.5%

Burnham Holdings Cl. A 4

117,000 1,977,300

DIRTT Environmental Solutions 3

96,000 364,404

Insteel Industries

47,100 1,706,904

Patrick Industries 3

16,900 1,046,448 5,095,056 Commercial Services & Supplies - 2.0%

Atento 3

237,901 2,017,400

CompX International Cl. A

107,500 1,244,850

Heritage-Crystal Clean 1,2,3

241,677 3,209,471

Team 2,3

17,500 572,425 7,044,146 Construction & Engineering - 2.6%

Ameresco Cl. A 3

261,900 1,377,594

IES Holdings 3

278,504 4,954,586

Layne Christensen 2,3

50,000 425,500

Northwest Pipe 3

108,600 1,282,566

NV5 Global 3

31,800 1,027,458 9,067,704 Electrical Equipment - 1.1%

Encore Wire 2

4,100 150,757

LSI Industries

143,012 1,606,025

Orion Energy Systems 3

170,000 226,100

Powell Industries

21,400 857,070

Power Solutions International 2,3

7,100 72,775

Preformed Line Products

20,743 874,732 3,787,459 Industrial Conglomerates - 0.8%

Raven Industries 2

117,159 2,698,172 Machinery - 6.2%

Chart Industries 3

1,100 36,113

CIRCOR International 2

26,100 1,554,516

Columbus McKinnon

5,300 94,552

Eastern Company (The)

39,750 796,192

Foster (L.B.) Company 2

99,300 1,192,593

FreightCar America

32,000 460,160

Graham Corporation 2

81,150 1,549,965

Hurco Companies

36,866 1,034,829

Kadant

57,700 3,006,747

Lindsay Corporation

24,400 1,805,112

Luxfer Holdings ADR

59,712 692,062

Lydall 3

4,900 250,537

53,600 978,200

Pfeiffer Vacuum Technology

6,000 570,167

Sun Hydraulics

86,900 2,804,263

Tennant Company

36,600 2,371,680

Titan International

198,000 2,003,760

Twin Disc 3

11,700 140,166 21,341,614 Marine - 0.4%

Clarkson

47,100 1,277,871 Professional Services - 1.5%

Acacia Research 2,3

190,000 1,238,800

CBIZ 3

47,000 525,930

Franklin Covey 3

40,100 714,181

GP Strategies 3

7,600 187,112

Heidrick & Struggles International

46,300 858,865

Kforce 2

4,700 96,303

Navigant Consulting 3

5,100 103,122

Resources Connection

17,400 259,956

RPX Corporation 3

100,000 1,069,000 5,053,269 Road & Rail - 0.5%

Marten Transport

3,300 69,300

Patriot Transportation Holding 2,3

29,460 626,025

Universal Logistics Holdings 1,2

77,600 1,041,392 1,736,717 Trading Companies & Distributors - 0.5%

Central Steel & Wire 4

788 323,080

Houston Wire & Cable

249,918 1,546,992 1,870,072 Total 61,227,810 Information Technology – 20.3% Communications Equipment - 1.6%

ADTRAN

27,500 526,350

Applied Optoelectronics 2,3

8,800 195,448

Bel Fuse Cl. A

67,705 1,364,256

CalAmp Corporation 3

3,100 43,245

Clearfield 3

61,300 1,152,440

Harmonic 3

147,000 871,710

KVH Industries 3

800 7,048

Oclaro 3

120,800 1,032,840

PCTEL

34,100 180,389

Sandvine Corporation

35,200 78,344 5,452,070 Electronic Equipment, Instruments & Components - 5.8%

Agilysys 2,3

170,587 1,896,927

ePlus 3

2,700 254,907

Fabrinet 3

2,200 98,098

FARO Technologies 1,2,3

81,700 2,937,115

HollySys Automation Technologies 3

49,200 1,090,764

Inficon Holding

3,420 1,308,907

LRAD Corporation

853,456 1,595,963

Mesa Laboratories 1,2

22,700 2,595,972

NetList 3

63,600 78,864

Novanta 3

41,400 718,290

Orbotech 1,2,3

102,800 3,043,908

PC Connection

43,716 1,154,977

Perceptron 3

8,500 57,120

Richardson Electronics

316,900 2,148,582

Rogers Corporation 2,3

1,600 97,728

Systemax 2

41,662 329,963

Vishay Precision Group 3

41,708 668,579 20,076,664 Internet Software & Services - 3.9%

Actua Corporation 3

158,751 2,055,825

Care.com 1,2,3

231,487 2,305,611

comScore 3

81,905 2,511,207

IZEA 3

65,170 382,548

QuinStreet 3

613,100 1,851,562

RealNetworks 3

204,000 909,840

Reis

25,000 511,500

Solium Capital 3

245,700 1,374,624

Stamps.com 3

11,700 1,105,767

Support.com 3

516,800 434,112 13,442,596 IT Services - 1.1%

Computer Task Group 2

200,538 942,529

Hackett Group (The)

55,500 916,860

Innodata 3

437,275 1,075,696

MoneyGram International 3

120,003 852,021 3,787,106 Semiconductors & Semiconductor Equipment - 4.4%

Amtech Systems 1,2,3

160,284 795,009

Applied Micro Circuits 3

97,917 680,523

Brooks Automation

131,200 1,785,632

Daqo New Energy ADR 3

34,900 739,880

FormFactor 3

22,869 248,129

Intermolecular 3

240,000 238,080

IXYS Corporation

18,800 226,540

Kopin Corporation 3

242,200 527,996

Kulicke & Soffa Industries 3

88,000 1,137,840

MoSys 2,3

684,275 513,206

Nanometrics 3

67,300 1,503,482

Nova Measuring Instruments 3

140,100 1,655,982

PDF Solutions 3

25,000 454,250

Photronics 3

189,700 1,955,807

Sigma Designs 3

89,000 693,310

Silicon Motion Technology ADR

28,400 1,470,836

Ultra Clean Holdings 3

57,000 422,370

Xcerra Corporation 3

20,900 126,654 15,175,526 Software - 2.4%

American Software Cl. A

120,352 1,335,907

BSQUARE Corporation 3

83,675 411,681

Computer Modelling Group

337,700 2,525,125

Model N 3

136,693 1,518,659

Monotype Imaging Holdings

15,000 331,650

PSI

34,000 506,067

Rubicon Project 3

92,200 763,416

SeaChange International 3

284,200 849,758 8,242,263 Technology Hardware, Storage & Peripherals - 1.1%

Intevac 3

379,300 2,237,870

Kortek

135,007 1,546,919 3,784,789 Total 69,961,014 Materials – 6.3% Chemicals - 1.6%

Balchem Corporation

11,775 912,916

FutureFuel Corporation

85,262 961,755

Quaker Chemical 2

26,000 2,754,180

Trecora Resources 3

86,600 988,972 5,617,823 Construction Materials - 0.8%

Ash Grove Cement 4

8,000 1,928,000

Monarch Cement 4

16,303 586,908

U.S. Concrete 3

2,600 119,769 2,634,677 Containers & Packaging - 0.3%

UFP Technologies 3

36,445 965,793 Metals & Mining - 3.6%

Alamos Gold Cl. A

186,044 1,531,518

AMG Advanced Metallurgical Group

5,000 104,640

Ampco-Pittsburgh

79,002 876,132

Comstock Mining 3

1,875,000 684,375

Exeter Resource 3

1,195,400 1,506,204

Haynes International 2

25,000 927,750

Imdex 3

525,666 236,061

MAG Silver 3

74,050 1,116,674

Major Drilling Group International 3

706,757 3,420,791

Olympic Steel

35,000 773,500

Pretium Resources 3

80,000 821,373

Universal Stainless & Alloy Products 3

11,600 121,684

Victoria Gold 3

890,000 427,379 12,548,081 Total 21,766,374 Real Estate – 3.7% Equity Real Estate Investment Trusts (REITs) - 0.6%

BRT Realty Trust 3

230,331 1,847,255 Real Estate Management & Development - 3.1%

AV Homes 3

83,500 1,389,440

Forestar Group 2,3

53,000 620,630

FRP Holdings 1,2,3

60,000 1,864,200

Griffin Industrial Realty

44,107 1,397,751

Hopefluent Group Holdings

1,400,000 418,948

Marcus & Millichap 3

49,567 1,296,177

RMR Group Cl. A

25,600 971,264

Tejon Ranch 1,2,3

115,162 2,800,740 10,759,150 Total 12,606,405 Telecommunication Services – 0.1% Diversified Telecommunication Services - 0.1%

ORBCOMM 3

43,000 440,750 Total 440,750 Utilities – 0.2% Gas Utilities - 0.1%

Shizuoka Gas

40,000 315,604 Independent Power & Renewable Electricity Producer - 0.1%

Alterra Power 3

45,000 225,695 Total 541,299 Miscellaneous6 – 4.6% Total 16,042,723 TOTAL COMMON STOCKS

(Cost $320,780,874)

348,658,960 PREFERRED STOCK – 0.3%

Seneca Foods Conv. 3,4

45,409 1,233,762

(Cost $578,719)

1,233,762 REPURCHASE AGREEMENT – 11.5% Fixed Income Clearing Corporation,

0.03% dated 9/30/16, due 10/3/16,

maturity value $39,719,099 (collateralized

by obligations of various U.S. Government

Agencies, 2.00%-2.125% due 11/30/22-12/31/22,

valued at $40,515,450)

(Cost $39,719,000)

39,719,000 TOTAL INVESTMENTS – 113.0%

(Cost $361,078,593)

389,611,722 LIABILITIES LESS CASH

AND OTHER ASSETS – (13.0)%

(44,950,846 ) NET ASSETS – 100.0% $ 344,660,876
1

At September 30, 2016, a portion of these securities were rehypothecated in connection with the Fund’s revolving credit agreement in the aggregate amount of $40,953,478.

All or a portion of these securities were pledged as collateral in connection with the Fund’s revolving credit agreement at September 30, 2016. Total market value of pledged securities at September 30, 2016, was $71,090,358.

3 Non-income producing. 4

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 $362,666,246. At September 30, 2016, net unrealized appreciation for all securities was $26,945,476, consisting of aggregate gross unrealized appreciation of $78,940,934 and aggregate gross unrealized depreciation of $51,995,458. 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, 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 $326,415,191 $22,001,907 $241,862 $348,658,960 Preferred Stocks – 1,233,762 – 1,233,762 Cash Equivalents – 39,719,000 – 39,719,000

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 nine months ended September 30, 2016, securities valued at $694,221 were transferred from Level 1 to Level 2 and securities valued at $787,200 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 9/30/16 Common Stocks $225,738 $16,124 $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 Unobservable Impact to Valuation From 9/30/16 Valuation Technique(s) Input(s) Range Average an Increase in Input1 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 September 30, 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 September 30, 2016, the Fund has outstanding borrowings of $45,000,000. During the period ended September 30, 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: November 21, 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: November 21, 2016 By: /s/ Peter K. Hoglund Peter K. Hoglund Treasurer, Royce Micro-Cap Trust, Inc. Date: November 21, 2016