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: 12/31/2018

 

Date of reporting period: 3/31/2018

 

Item 1 - Schedule of Investments

 

 

 
 
SCHEDULE OF INVESTMENTS
ROYCE MICRO-CAP TRUST
MARCH 31, 2018 (UNAUDITED)

    SHARES     VALUE  
COMMON STOCKS – 103.8%              
               
Consumer Discretionary – 12.4%              
Auto Components - 1.4%              

Fox Factory Holding 1

   5,300     $ 184,970  

Motorcar Parts of America 1

   54,800       1,174,364  

Sebang Global Battery

   50,500       1,528,159  

Standard Motor Products

   50,860       2,419,410  

Stoneridge 1

   7,500       207,000  

Unique Fabricating

   12,200       102,968  
             
            5,616,871  
             
Distributors - 0.6%              

Fenix Parts 1,2

   440,800       167,725  

Uni-Select

   33,800       524,702  

Weyco Group

   54,300       1,824,480  
             
            2,516,907  
             
Diversified Consumer Services - 1.8%              

American Public Education 1

   54,798       2,356,314  

Aspen Group 1

   141,520       999,131  

Collectors Universe 3

   108,200       1,699,822  

Liberty Tax Cl. A

   142,900       1,443,290  

Universal Technical Institute 1

   270,000       793,800  
             
            7,292,357  
             
Hotels, Restaurants & Leisure - 1.4%              

Century Casinos 1

   222,500       1,659,850  

Del Taco Restaurants 1

   8,200       84,952  

Lindblad Expeditions Holdings 1

   254,000       2,608,580  

Lindblad Expeditions Holdings (Warrants) 1

   18,100       27,150  

Red Lion Hotels 1

   115,500       1,126,125  
             
            5,506,657  
             
Household Durables - 3.0%              

AV Homes 1

   82,000       1,521,100  

Cavco Industries 1,3,4

   20,241       3,516,874  

Ethan Allen Interiors 3

   18,100       415,395  

Flexsteel Industries 3

   16,100       637,238  

Lifetime Brands 3

   119,294       1,479,245  

PICO Holdings 3,4

   142,000       1,625,900  

Skyline Corporation 1

   63,700       1,401,400  

Universal Electronics 1

   6,100       317,505  

ZAGG 1

   121,600       1,483,520  
             
            12,398,177  
             
Internet & Direct Marketing Retail - 0.7%              

FTD Companies 1

   67,200       244,608  

Gaia Cl. A 1,3,4

   125,000       1,937,500  

Yatra Online 1

   105,000       694,050  
             
            2,876,158  
             
Leisure Products - 0.7%              

Clarus Corporation 1

   174,926       1,180,751  

Nautilus 1

   118,500       1,593,825  
             
            2,774,576  
             
Media - 0.4%              

McClatchy Company (The) Cl. A 1

   69,313       641,145  

New Media Investment Group

   66,200       1,134,668  
             
            1,775,813  
             
Multiline Retail - 0.0%              

Tuesday Morning 1,3

   36,700       144,965  
             
Specialty Retail - 1.3%              

AutoCanada

   115,200       1,988,627  

Barnes & Noble Education 1

   80,000       551,200  

Destination Maternity 1

   212,000       549,080  

Destination XL Group 1

   50,000       87,500  

Haverty Furniture

   30,000       604,500  

Kirkland’s 1

   11,000       106,590  

MarineMax 1

   7,600       147,820  

Sears Hometown and Outlet Stores 1

   269,700       809,100  

Shoe Carnival 3

   21,028       500,467  

Stage Stores 3

   15,000       32,700  
             
            5,377,584  
             
Textiles, Apparel & Luxury Goods - 1.1%              

Crown Crafts

   112,159       656,130  

Culp

   32,900       1,005,095  

J.G. Boswell Company 2

   2,490       1,718,100  

YGM Trading

   1,482,000       1,126,813  
             
            4,506,138  
             
Total           50,786,203  
             
               
Consumer Staples – 2.6%              
Beverages - 0.2%              

Crimson Wine Group 1,2

   58,124       574,265  

Primo Water 1

   40,400       473,084  
             
            1,047,349  
             
Food & Staples Retailing - 0.1%              

Centric Health 1

   807,600       288,350  
             
Food Products - 2.2%              

AGT Food and Ingredients

   25,800       334,227  

Farmer Bros. 1,3,4

   62,600       1,890,520  

John B. Sanfilippo & Son 3,4

   17,800       1,030,086  

Landec Corporation 1,3

   75,610       986,711  

Seneca Foods Cl. A 1

   81,087       2,246,110  

Seneca Foods Cl. B 1

   40,400       1,125,140  

SunOpta 1

   176,281       1,251,595  
             
            8,864,389  
             
Household Products - 0.1%              

Central Garden & Pet 1

   12,000       516,000  
             
Total           10,716,088  
             
               
Energy – 7.0%              
Energy Equipment & Services - 3.4%              

Aspen Aerogels 1

   94,985       405,586  

CARBO Ceramics 1,3,4

   70,000       507,500  

CES Energy Solutions

   25,000       114,100  

Dawson Geophysical 1

   73,654       496,428  

Era Group 1

   329,800       3,083,630  

Geospace Technologies 1,3

   9,500       93,765  

Hornbeck Offshore Services 1,3,4

   460,000       1,338,600  

Independence Contract Drilling 1

   134,400       508,032  

Mammoth Energy Services 1

   9,900       317,394  

Matrix Service 1,3

   33,700       461,690  

Nabors Industries

   34,000       237,660  

Newpark Resources 1

   11,200       90,720  

North American Energy Partners

   50,000       265,000  

Pioneer Energy Services 1,3

   245,600       663,120  

Precision Drilling 1

   108,600       300,822  

SEACOR Marine Holdings 1

   205,457       3,907,792  

TerraVest Industries

   109,000       835,891  

Total Energy Services

   25,700       274,285  

Trican Well Service 1

   53,300       124,112  
             
            14,026,127  
             
Oil, Gas & Consumable Fuels - 3.6%              

Ardmore Shipping 1

   199,300       1,514,680  

Cross Timbers Royalty Trust

   67,631       987,413  

Dorchester Minerals L.P.

   153,963       2,478,804  

Dorian LPG 1

   148,138       1,109,554  

GeoPark 1

   61,971       768,440  

Hallador Energy

   24,000       164,880  

Hugoton Royalty Trust

   287,574       201,302  

Leucrotta Exploration 1

   489,800       615,885  

Pacific Ethanol 1

   134,300       402,900  

Panhandle Oil and Gas Cl. A

   5,500       106,150  

Permian Basin Royalty Trust

   176,333       1,701,613  

Sabine Royalty Trust

   59,548       2,617,135  

San Juan Basin Royalty Trust

   143,407       1,132,915  

StealthGas 1

   229,664       920,953  
             
            14,722,624  
             
Total           28,748,751  
             
               
Financials – 14.8%              
Banks - 2.5%              

Bank of N.T. Butterfield & Son

   43,810       1,966,193  

Blue Hills Bancorp

   50,000       1,042,500  

Bryn Mawr Bank

   25,000       1,098,750  

Caribbean Investment Holdings 1

   735,635       206,465  

Chemung Financial

   31,000       1,440,570  

Fauquier Bankshares

   133,200       2,789,208  

Live Oak Bancshares 3

   30,900       859,020  

Midway Investments 1,5

   735,647       0  

Peapack-Gladstone Financial

   20,606       688,034  
             
            10,090,740  
             
Capital Markets - 9.4%              

ASA Gold and Precious Metals

   171,150       1,783,383  

Ashford 1

   5,600       535,976  

Banca Finnat Euramerica

   568,000       313,592  

Canaccord Genuity Group

   203,300       1,093,545  

Diamond Hill Investment Group 3

   3,584       740,311  

Donnelley Financial Solutions 1

   50,000       858,500  

Dundee Corporation Cl. A 1

   413,200       593,333  

EQT Holdings

   4,926       81,743  

Fiera Capital Cl. A

   78,000       665,363  

Founders Advantage Capital

   53,400       89,114  

GAIN Capital Holdings 3

   25,000       168,750  

Gluskin Sheff + Associates

   67,400       762,752  

GMP Capital

   332,800       715,532  

Great Elm Capital Group 1

   425,200       1,700,800  

Hamilton Lane Cl. A 3

   32,300       1,202,529  

INTL FCStone 1,3,4

   63,727       2,719,868  

JZ Capital Partners 1

   209,999       1,399,446  

Manning & Napier Cl. A

   136,600       478,100  

Medley Management Cl. A

   153,400       874,380  

MVC Capital

   341,430       3,390,400  

OHA Investment

   59,761       83,666  

Pzena Investment Management Cl. A

   6,100       67,893  

Queen City Investments 2

   948       1,118,640  

Silvercrest Asset Management Group Cl. A

   203,300       3,090,160  

Sprott

   1,414,533       3,414,598  

U.S. Global Investors Cl. A 3

   439,454       1,111,819  

Urbana Corporation

   237,600       610,437  

Value Line

   136,074       2,490,154  

Virtu Financial Cl. A 3

   107,800       3,557,400  

Warsaw Stock Exchange

   52,900       639,004  

Westaim Corporation 1

   45,000       98,847  

Westwood Holdings Group 3

   12,400       700,476  

ZAIS Group Holdings Cl. A 1,3

   262,960       1,064,988  
             
            38,215,499  
             
Consumer Finance - 0.7%              

Currency Exchange International 1

   7,000       149,959  

EZCORP Cl. A 1,3,4

   201,000       2,653,200  
             
            2,803,159  
             
Diversified Financial Services - 0.1%              

Waterloo Investment Holdings 1,5

   806,000       241,800  
             
Insurance - 1.3%              

Atlas Financial Holdings 1

   22,000       227,700  

Hallmark Financial Services 1,3,4

   114,000       1,016,880  

Heritage Insurance Holdings

   6,600       100,056  

State Auto Financial

   59,264       1,693,172  

Trupanion 1,3

   82,300       2,459,947  
             
            5,497,755  
             
Investment Companies - 0.8%              

Social Capital Hedosophia Holdings 1

   340,168       3,411,885  
             
Total           60,260,838  
             
               
Health Care – 13.7%              
Biotechnology - 4.8%              

Abeona Therapeutics 1,3

   142,221       2,040,871  

Aquinox Pharmaceuticals 1,3

   145,397       2,047,190  

ARCA biopharma 1

   326,147       162,878  

Arcturus Therapeutics 1

   106,436       585,398  

BioCryst Pharmaceuticals 1

   144,000       686,880  

CareDx 1

   56,000       446,320  

Idera Pharmaceuticals 1

   464,490       854,662  

Invitae Corporation 1

   156,412       733,572  

Keryx Biopharmaceuticals 1,3

   117,725       481,495  

Kindred Biosciences 1

   126,000       1,089,900  

Knight Therapeutics 1

   187,000       1,124,889  

Mirati Therapeutics 1

   61,100       1,875,770  

Sangamo Therapeutics 1

   39,850       757,150  

Stemline Therapeutics 1

   6,800       104,040  

Theratechnologies 1

   10,000       72,418  

Zafgen 1

   465,381       3,467,089  

Zealand Pharma 1

   187,900       2,903,415  

Zealand Pharma ADR 1

   10,000       150,200  
             
            19,584,137  
             
Health Care Equipment & Supplies - 4.8%              

Analogic Corporation

   18,200       1,745,380  

AtriCure 1,3

   15,000       307,800  

Atrion Corporation

   6,169       3,894,490  

Chembio Diagnostics 1

   33,300       266,400  

CRH Medical 1

   133,000       336,539  

CryoLife 1

   4,600       92,230  

GenMark Diagnostics 1

   35,900       195,296  

Inogen 1

   5,400       663,336  

Invacare Corporation 3

   54,100       941,340  

Invuity 1

   13,400       51,590  

LeMaitre Vascular

   5,000       181,150  

OraSure Technologies 1,3

   50,000       844,500  

OrthoPediatrics Corporation 1

   33,300       501,498  

STRATEC Biomedical

   14,000       1,266,006  

Surmodics 1

   125,892       4,790,190  

TearLab Corporation 1,2

   8,500       2,210  

Utah Medical Products

   34,000       3,360,900  
             
            19,440,855  
             
Health Care Providers & Services - 2.2%              

AAC Holdings 1

   89,400       1,026,312  

Aceto Corporation

   79,600       604,960  

BioTelemetry 1

   47,700       1,481,085  

Cross Country Healthcare 1

   150,800       1,675,388  

National Research Cl. A

   89,529       2,618,723  

Psychemedics Corporation 3

   37,500       775,500  

U.S. Physical Therapy

   10,000       813,000  
             
            8,994,968  
             
Health Care Technology - 0.7%              

Connecture 1,2

   20,000       7,000  

Tabula Rasa HealthCare 1

   50,000       1,940,000  

Vocera Communications 1

   33,100       775,202  
             
            2,722,202  
             
Life Sciences Tools & Services - 0.4%              

NeoGenomics 1

   125,000       1,020,000  

Quanterix Corporation 1

   45,500       775,320  
             
            1,795,320  
             
Pharmaceuticals - 0.8%              

Agile Therapeutics 1,3,4

   80,000       205,600  

Corium International 1

   4,900       56,203  

Flex Pharma 1

   328,620       1,643,100  

Theravance Biopharma 1

   59,009       1,430,968  
             
            3,335,871  
             
Total           55,873,353  
             
               
Industrials – 21.1%              
Aerospace & Defense - 0.5%              

Astronics Corporation 1

   2,460       91,758  

CPI Aerostructures 1

   11,800       115,050  

FLYHT Aerospace Solutions 1

   191,680       238,047  

Innovative Solutions and Support 1

   142,828       504,183  

Mercury Systems 1,3,4

   20,100       971,232  

SIFCO Industries 1

   45,800       252,903  
             
            2,173,173  
             
Building Products - 1.3%              

Burnham Holdings Cl. A 2

   117,000       1,766,700  

CSW Industrials 1

   20,000       901,000  

DIRTT Environmental Solutions 1

   96,000       368,844  

Insteel Industries

   44,200       1,221,246  

Patrick Industries 1

   17,250       1,066,912  
             
            5,324,702  
             
Commercial Services & Supplies - 2.4%              

Atento

   206,701       1,612,268  

Civeo Corporation 1

   150,000       565,500  

CompX International Cl. A

   78,200       1,079,160  

Heritage-Crystal Clean 1,3,4

   223,477       5,262,883  

Hudson Technologies 1

   50,000       247,000  

InnerWorkings 1

   30,400       275,120  

Team 1,3

   57,500       790,625  
             
            9,832,556  
             
Construction & Engineering - 2.7%              

Ameresco Cl. A 1

   251,400       3,268,200  

IES Holdings 1

   220,000       3,333,000  

Infrastructure and Energy Alternatives 1

   120,000       1,053,000  

Layne Christensen 1,3,4

   50,000       746,000  

Northwest Pipe 1,3

   61,600       1,065,680  

NV5 Global 1,3

   27,400       1,527,550  
             
            10,993,430  
             
Electrical Equipment - 0.9%              

Encore Wire 3

   4,100       232,470  

LSI Industries

   147,412       1,195,511  

Powell Industries

   21,400       574,376  

Power Solutions International 1,2,3,4

   21,100       156,140  

Preformed Line Products

   20,743       1,350,162  

Revolution Lighting Technologies 1,3,4

   81,200       278,516  
             
            3,787,175  
             
Industrial Conglomerates - 0.9%              

Raven Industries 3

   102,559       3,594,693  
             
Machinery - 7.6%              

CIRCOR International 1,3

   55,800       2,380,428  

Eastern Company (The)

   39,750       1,132,875  

Exco Technologies

   85,400       602,543  

Foster (L.B.) Company 1,3,4

   95,300       2,244,315  

FreightCar America 1

   86,500       1,159,100  

Global Brass and Copper Holdings

   5,000       167,250  

Graham Corporation 3,4

   75,150       1,609,713  

Harsco Corporation 1

   4,400       90,860  

Hurco Companies

   36,866       1,692,149  

Kadant

   49,800       4,706,100  

Kornit Digital 1

   39,800       513,420  

Lindsay Corporation 3

   32,600       2,980,944  

Luxfer Holdings 3

   59,712       764,314  

Lydall 1

   1,800       86,850  

NN

   45,300       1,087,200  

Sun Hydraulics

   74,000       3,963,440  

Tennant Company

   34,400       2,328,880  

Titan International

   212,200       2,675,842  

Westport Fuel Systems 1

   377,900       827,601  
             
            31,013,824  
             
Marine - 1.2%              

Clarkson

   109,900       4,659,987  
             
Professional Services - 1.5%              

Acacia Research 1,3

   190,000       665,000  

CBIZ 1

   47,000       857,750  

Franklin Covey 1

   40,100       1,078,690  

GP Strategies 1

   7,600       172,140  

Heidrick & Struggles International

   46,300       1,446,875  

IBI Group 1

   84,500       475,511  

Kforce 3

   2,800       75,740  

Resources Connection

   11,200       181,440  

RPX Corporation

   96,000       1,026,240  
             
            5,979,386  
             
Road & Rail - 0.7%              

Marten Transport

   5,500       125,400  

Patriot Transportation Holding 1,3

   55,764       1,034,980  

Universal Logistics Holdings 3

   77,600       1,641,240  
             
            2,801,620  
             
Trading Companies & Distributors - 1.4%              

Central Steel & Wire 2

   788       370,368  

EnviroStar 3,4

   74,400       2,920,200  

Houston Wire & Cable 1

   331,418       2,427,637  
             
            5,718,205  
             
Total           85,878,751  
             
               
Information Technology – 21.6%              
Communications Equipment - 0.6%              

ADTRAN 3

   23,300       362,315  

Clearfield 1

   61,300       790,770  

EMCORE Corporation 1

   8,300       47,310  

Harmonic 1

   147,000       558,600  

Oclaro 1

   32,600       311,656  

PCTEL

   34,100       244,838  
             
            2,315,489  
             
Electronic Equipment, Instruments & Components - 7.4%              

Airgain 1,3

   8,200       63,468  

Bel Fuse Cl. A

   67,705       1,117,132  

eMagin Corporation 1

   125,000       181,250  

eMagin Corporation (Warrants) 1,5

   50,000       0  

ePlus 1

   3,000       233,100  

Fabrinet 1

   2,200       69,036  

FARO Technologies 1,3,4

   76,800       4,485,120  

Firan Technology Group 1

   25,000       57,244  

HollySys Automation Technologies

   51,900       1,282,968  

Inficon Holding

   3,220       1,980,999  

LightPath Technologies Cl. A 1

   50,000       110,000  

Littelfuse

   1,264       263,139  

LRAD Corporation 1

   853,456       1,962,949  

Mesa Laboratories 3

   45,400       6,739,176  

Novanta 1

   37,600       1,960,840  

Orbotech 1,3,4

   87,000       5,409,660  

PC Connection

   43,716       1,092,900  

Perceptron 1

   8,500       72,675  

Richardson Electronics

   316,900       2,519,355  

Rogers Corporation 1,3

   600       71,724  

Vishay Precision Group 1

   10,000       311,500  
             
            29,984,235  
             
Internet Software & Services - 4.9%              

Amber Road 1

   25,000       222,500  

Care.com 1,3,4

   171,787       2,794,974  

comScore 1,2

   64,195       1,534,261  

Etsy 1,3

   80,300       2,253,218  

IZEA 1,3,4

   85,870       314,284  

Leaf Group 1

   64,500       454,725  

MINDBODY Cl. A 1

   38,900       1,513,210  

QuinStreet 1

   264,550       3,378,304  

Real Matters 1

   255,000       1,442,892  

Reis 3

   25,000       536,250  

Solium Capital 1

   317,500       2,752,726  

Stamps.com 1

   12,300       2,472,915  

Support.com 1

   105,600       291,456  
             
            19,961,715  
             
IT Services - 0.6%              

Computer Task Group 1,3

   150,838       1,235,363  

Conduent 1

   30,000       559,200  

Hackett Group (The)

   27,700       444,862  

Innodata 1

   354,275       382,617  
             
            2,622,042  
             
Semiconductors & Semiconductor Equipment - 4.9%              

Alpha & Omega Semiconductor 1

   3,300       50,985  

Amtech Systems 1,3

   92,184       674,787  

Brooks Automation

   91,500       2,477,820  

CyberOptics Corporation 1

   43,000       774,000  

Everspin Technologies 1

   5,900       44,545  

FormFactor 1

   22,869       312,162  

Intermolecular 1

   240,000       314,400  

Kopin Corporation 1

   242,200       755,664  

Kulicke & Soffa Industries 1

   77,200       1,930,772  

Nanometrics 1

   64,600       1,737,740  

NeoPhotonics Corporation 1,3

   51,300       351,405  

Nova Measuring Instruments 1

   68,000       1,844,840  

PDF Solutions 1

   189,700       2,211,902  

Photronics 1

   231,900       1,913,175  

Rudolph Technologies 1

   52,100       1,443,170  

Silicon Motion Technology ADR

   34,100       1,640,892  

Ultra Clean Holdings 1,3

   49,900       960,575  

Veeco Instruments 1,3

   17,500       297,500  

Xcerra Corporation 1

   15,600       181,740  
             
            19,918,074  
             
Software - 2.1%              

Agilysys 1

   170,587       2,033,397  

American Software Cl. A

   120,352       1,564,576  

BSQUARE Corporation 1

   83,675       355,619  

Computer Modelling Group

   337,700       2,435,078  

Monotype Imaging Holdings

   15,000       336,750  

PSI Software

   23,000       488,287  

RealNetworks 1

   100,171       306,523  

Redknee Solutions 1

   150,000       122,250  

Rubicon Project 1

   75,000       135,000  

SeaChange International 1

   284,200       770,182  

Varonis Systems 1

   2,600       157,300  
             
            8,704,962  
             
Technology Hardware, Storage & Peripherals - 1.1%              

AstroNova

   5,300       82,150  

Cray 1

   19,700       407,790  

Intevac 1

   301,800       2,082,420  

Kortek

   135,007       1,785,113  

USA Technologies 1

   12,300       110,700  
             
            4,468,173  
             
Total           87,974,690  
             
               
Materials – 5.7%              
Chemicals - 2.2%              

Balchem Corporation

   11,775       962,606  

FutureFuel Corporation

   85,262       1,022,292  

LSB Industries 1

   135,800       832,454  

OMNOVA Solutions 1

   25,000       262,500  

Quaker Chemical 3

   24,400       3,614,372  

Rayonier Advanced Materials

   50,000       1,073,500  

Trecora Resources 1

   89,600       1,218,560  
             
            8,986,284  
             
Construction Materials - 0.3%              

Monarch Cement 2

   16,303       1,219,464  

U.S. Concrete 1

   2,500       151,000  
             
            1,370,464  
             
Containers & Packaging - 0.3%              

UFP Technologies 1

   36,445       1,075,127  
             
Metals & Mining - 2.9%              

Alamos Gold Cl. A

   186,044       967,513  

Ampco-Pittsburgh 1

   79,002       703,118  

Haynes International 3

   27,400       1,016,814  

Hudbay Minerals

   62,200       441,620  

Imdex 1

   750,666       687,387  

MAG Silver 1

   154,050       1,501,987  

Major Drilling Group International 1

   921,657       4,764,416  

Olympic Steel

   35,000       717,850  

Pretium Resources 1

   80,000       531,533  

Universal Stainless & Alloy Products 1

   15,300       420,750  

Victoria Gold 1

   890,000       248,690  
             
            12,001,678  
             
Total           23,433,553  
             
               
Real Estate – 4.2%              
Equity Real Estate Investment Trusts (REITs) - 0.3%              

BRT Apartments

   101,331       1,190,639  
             
Real Estate Management & Development - 3.9%              

Altus Group

   87,000       2,202,771  

FRP Holdings 1,3,4

   76,500       4,284,000  

Griffin Industrial Realty

   34,784       1,305,444  

Hopefluent Group Holdings

   400,000       192,679  

Marcus & Millichap 1,3

   49,567       1,787,386  

RMR Group Cl. A

   34,900       2,441,255  

Tejon Ranch 1,3

   154,994       3,581,911  
             
            15,795,446  
             
Total           16,986,085  
             
               
Telecommunication Services – 0.2%              
Diversified Telecommunication Services - 0.2%              

ORBCOMM 1

   67,100       628,727  
             
Total           628,727  
             
               
Utilities – 0.5%              
Gas Utilities - 0.1%              

Shizuoka Gas

   40,000       361,789  
             
Independent Power & Renewable Electricity Producer - 0.0%              

Innergex Renewable Energy

   15,573       159,193  
             
Water Utilities - 0.4%              

AquaVenture Holdings 1

   50,000       621,000  

Global Water Resources

   106,000       950,820  
             
            1,571,820  
             
Total           2,092,802  
             
               
TOTAL COMMON STOCKS              

(Cost $344,745,427)

           423,379,841  
             
               
REPURCHASE AGREEMENT – 7.6%              
Fixed Income Clearing Corporation,              

0.28% dated 3/29/18, due 4/2/18,

              

maturity value $31,258,972 (collateralized

              

by obligations of various U.S. Government

              

Agencies, 0.125% due 7/15/22, valued at $31,888,347)

              

(Cost $31,258,000)

           31,258,000  
             
               
TOTAL INVESTMENTS – 111.4%              

(Cost $376,003,427)

           454,637,841  
               
LIABILITIES LESS CASH              
  AND OTHER ASSETS – (11.4)%           (46,613,702 )
             
               
NET ASSETS – 100.0%         $ 408,024,139  
             

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 Fund’s revolving credit agreement at March 31, 2018. Total market value of pledged securities at March 31, 2018, was $75,622,216.
4 At March 31, 2018, a portion of these securities were rehypothecated in connection with the Fund’s revolving credit agreement in the aggregate amount of $39,295,568.
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.

TAX INFORMATION: The cost of total investments for Federal income tax purposes was $377,407,735. At March 31, 2018, net unrealized appreciation for all securities was $77,230,106, consisting of aggregate gross unrealized appreciation of $127,070,132 and aggregate gross unrealized depreciation of $49,840,026. The primary cause of the difference between book and tax basis cost is the timing of the recognition of losses on securities sold.

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

Various inputs are used in determining the value of the Fund’s investments, as noted above. These inputs are summarized in the three broad levels below:
  Level 1  –  quoted prices in active markets for identical securities.
  Level 2  –  other significant observable inputs (including quoted prices for similar securities, foreign securities that may be fair valued and repurchase agreements). The table below includes all Level 2 securities. Level 2 securities with values based on quoted prices for similar securities are noted in the Schedule of Investments.
  Level 3  –  significant unobservable inputs (including last trade price before trading was suspended, or at a discount thereto for lack of marketability or otherwise, market price information regarding other securities, information received from the company and/or published documents, including SEC filings and financial statements, or other publicly available information).
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used to value the Fund’s investments as of March 31, 2018. 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   $394,882,286     $28,255,755       $241,800     $423,379,841  
Cash Equivalents   –     31,258,000       –     31,258,000  

Certain securities have transferred in and out of Level 1 and Level 2 measurements during the reporting period. The Fund recognizes transfers between levels as of the end of the reporting period. For the three months ended March 31, 2018, securities valued at $1,333,278 were transferred from Level 1 to Level 2 within the fair value hierarchy.

Level 3 Reconciliation:

    Balance as of       Realized   Unrealized    
    12/31/17   Purchases   Gain (Loss)   Gain (Loss)   Balance as of 3/31/18
 
Common Stocks   $241,800   $0   $–   $–   $241,800

The following table summarizes the valuation techniques used and unobservable inputs approved by the Valuation Committee to determine the fair value of certain 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
      3/31/18   Valuation Technique(s)   Input(s)   Range Average   an Increase in Input1
 
          Discounted Present Value            
Common Stocks     $241,800   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, 2018 is overnight and continuous.

Borrowings:
The Fund is party to a revolving credit agreement (the credit agreement) with BNP Paribas Prime Brokerage International, Limited (BNPPI). As of March 31, 2018, the Fund has outstanding borrowings of $45,000,000. During the period ended March 31, 2018, the Fund borrowed an average daily balance of $45,000,000. The Fund pays a commitment fee of 0.50% per annum on the unused portion of the credit agreement. The credit agreement has a 360-day rolling term that resets daily; however, if the Fund exceeds certain net asset value triggers, the credit agreement may convert to a 60-day rolling term that resets daily. The Fund is required to pledge portfolio securities as collateral in an amount up to two times the loan balance outstanding or as otherwise required by applicable regulatory standards and has granted a security interest in the securities pledged to, and in favor of, BNPPI as security for the loan balance outstanding. If the Fund fails to meet certain requirements, or maintain other financial covenants required under the credit agreement, the Fund may be required to repay immediately, in part or in full, the loan balance outstanding under the credit agreement which may necessitate the sale of portfolio securities at potentially inopportune times. BNPPI may terminate the credit agreement upon certain ratings downgrades of its corporate parent, which would result in the Fund’s entire loan balance becoming immediately due and payable. The occurrence of such ratings downgrades may necessitate the sale of portfolio securities at potentially inopportune times. The credit agreement also permits, subject to certain conditions, BNPPI to rehypothecate portfolio securities pledged by the Fund up to the amount of the loan balance outstanding. The Fund continues to receive payments in lieu of dividends and interest on rehypothecated securities. The Fund also has the right under the credit agreement to recall the rehypothecated securities from BNPPI on demand. If BNPPI fails to deliver the recalled security in a timely manner, the Fund is compensated by BNPPI for any fees or losses related to the failed delivery or, in the event a recalled security is not returned by BNPPI, the Fund, upon notice to BNPPI, may reduce the loan balance outstanding by the value of the recalled security failed to be returned. The Fund receives a portion of the fees earned by BNPPI in connection with the rehypothecation of portfolio securities.

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

 
 

Item 2 - Controls and Procedures

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

 

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

 

Item 3 - Exhibits

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

 

SIGNATURES

 

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

 

Royce Micro-Cap Trust, Inc.

By:

 

/s/ Christopher D. Clark

Christopher D. Clark

President, Royce Micro-Cap Trust, Inc.

Date: May 29, 2018

 

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 29, 2018

 

By:

 

 

/s/ Peter K. Hoglund

Peter K. Hoglund

Treasurer, Royce Micro-Cap Trust, Inc.

Date: May 29, 2018