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: 12/31/2017

Date of reporting period: 9/30/2017

Item 1 – Schedule of Investments

SCHEDULE OF INVESTMENTS ROYCE MICRO-CAP TRUST SEPTEMBER 30, 2017 (UNAUDITED)
SHARES VALUE COMMON STOCKS – 102.7% Consumer Discretionary – 13.1% Auto Components - 1.5%

Fox Factory Holding 1

5,300 $ 228,430

Motorcar Parts of America 1

54,800 1,614,408

Sebang Global Battery

50,500 1,574,060

Standard Motor Products

50,860 2,453,995

Stoneridge 1

7,500 148,575

Unique Fabricating

12,200 103,090 6,122,558 Distributors - 0.6%

Fenix Parts 1,2

440,800 295,336

Uni-Select

33,800 730,313

Weyco Group

54,300 1,541,034 2,566,683 Diversified Consumer Services - 1.8%

American Public Education 1

73,200 1,540,860

Collectors Universe 3

108,200 2,593,554

Liberty Tax Cl. A

142,900 2,057,760

Universal Technical Institute 1

270,000 936,900 7,129,074 Hotels, Restaurants & Leisure - 1.3%

Century Casinos 1

222,500 1,826,725

Del Taco Restaurants 1

8,200 125,788

Lindblad Expeditions Holdings 1

234,000 2,503,800

Lindblad Expeditions Holdings
(Warrants) 1

18,100 34,933

Red Lion Hotels 1

90,000 778,500 5,269,746 Household Durables - 3.4%

AV Homes 1

82,000 1,406,300

Cavco Industries 1,3,4

20,241 2,986,560

Ethan Allen Interiors 3

18,100 586,440

Flexsteel Industries 3

16,100 816,270

Lifetime Brands 3,4

119,294 2,183,080

PICO Holdings 1,3,4

142,000 2,371,400

Skyline Corporation 1

63,700 770,133

Stanley Furniture

193,468 228,292

Universal Electronics 1

6,100 386,740

ZAGG 1

121,600 1,915,200 13,650,415 Internet & Direct Marketing Retail - 0.6%

FTD Companies 1

67,200 876,288

Gaia Cl. A 1,3,4

125,000 1,500,000 2,376,288 Leisure Products - 1.0%

American Outdoor Brands 1,3

27,100 413,275

Clarus Corporation 1

194,926 1,461,945

Nautilus 1

118,500 2,002,650 3,877,870 Media - 0.5%

Entravision Communications Cl. A

126,200 719,340

McClatchy Company (The) Cl. A 1

69,313 512,223

New Media Investment Group

66,200 979,098 2,210,661 Specialty Retail - 1.2%

AutoCanada

115,200 2,198,286

Barnes & Noble Education 1

80,000 520,800

Destination Maternity 1

212,000 354,040

Destination XL Group 1

50,000 95,000

Haverty Furniture

30,000 784,500

Kirkland’s 1

11,000 125,730

MarineMax 1

7,600 125,780

Shoe Carnival 3

21,028 470,607

Stage Stores 3

15,000 27,600

TravelCenters of America LLC 1

5,400 22,950 4,725,293 Textiles, Apparel & Luxury Goods - 1.2%

Crown Crafts

112,159 729,034

Culp

32,900 1,077,475

J.G. Boswell Company 2

2,490 1,705,650

YGM Trading

1,482,000 1,422,884 4,935,043 Total 52,863,631 Consumer Staples – 2.7% Beverages - 0.2%

Crimson Wine Group 1,2

58,124 616,114 Food Products - 2.4%

Farmer Bros. 1,3,4

62,600 2,056,410

John B. Sanfilippo & Son 3

17,800 1,198,118

Landec Corporation 1,3

75,610 979,149

Seneca Foods Cl. A 1

73,087 2,521,502

Seneca Foods Cl. B 1

40,400 1,397,840

SunOpta 1

176,281 1,533,645 9,686,664 Household Products - 0.1%

Central Garden & Pet 1

12,000 466,080 Total 10,768,858 Energy – 5.6% Energy Equipment & Services - 2.9%

Aspen Aerogels 1

94,985 413,185

CARBO Ceramics 1,3,4

70,000 604,100

CES Energy Solutions

25,000 126,428

Dawson Geophysical 1

73,654 333,653

Era Group 1

309,800 3,466,662

Geospace Technologies 1,3

9,500 169,290

Independence Contract Drilling 1

134,400 510,720

Matrix Service 1,3

33,700 512,240

Newpark Resources 1

11,200 112,000

North American Energy Partners

50,000 217,500

Pioneer Energy Services 1,3

245,600 626,280

SEACOR Marine Holdings 1

205,457 3,213,347

TerraVest Capital

84,000 623,394

Tesco Corporation 1,3

58,000 316,100

Trican Well Service 1

53,300 194,789 11,439,688 Oil, Gas & Consumable Fuels - 2.7%

Ardmore Shipping 1

182,700 1,507,275

Cross Timbers Royalty Trust

67,631 988,089

Dorchester Minerals L.P.

106,127 1,597,211

Dorian LPG 1

50,000 341,000

Hugoton Royalty Trust

287,574 532,012

Panhandle Oil and Gas Cl. A

5,500 130,900

Permian Basin Royalty Trust

176,333 1,535,860

Sabine Royalty Trust

59,548 2,447,423

San Juan Basin Royalty Trust

143,407 1,124,311

StealthGas 1

229,664 760,188 10,964,269 Total 22,403,957 Financials – 11.8% Banks - 2.3%

Bank of N.T. Butterfield & Son

43,810 1,605,198

Blue Hills Bancorp

50,000 960,000

Bryn Mawr Bank

25,000 1,095,000

Caribbean Investment Holdings 1

735,647 115,828

Chemung Financial

31,000 1,460,100

Fauquier Bankshares

133,200 2,644,020

Live Oak Bancshares 3,4

30,900 724,605

Midway Investments 1,5

735,647 0

Peapack-Gladstone Financial

20,606 695,246 9,299,997 Capital Markets - 7.9%

ASA Gold and Precious Metals

171,150 2,028,128

Canaccord Genuity Group

224,100 770,498

Diamond Hill Investment Group 3,4

3,584 761,062

Dundee Corporation Cl. A 1

413,200 1,059,699

EQT Holdings

43,150 599,089

Fiera Capital Cl. A

78,000 902,681

GAIN Capital Holdings

25,000 159,750

Gluskin Sheff + Associates

67,400 1,015,524

Hamilton Lane Cl. A 3

32,300 867,255

INTL FCStone 1,3,4

41,727 1,598,979

JZ Capital Partners

209,999 1,400,661

Manning & Napier Cl. A

136,600 539,570

Medley Management Cl. A

153,400 943,410

MVC Capital 3

351,100 3,514,511

OHA Investment

154,620 191,729

Pzena Investment Management Cl. A

6,100 66,429

Queen City Investments 2

948 1,303,500

Silvercrest Asset Management
Group Cl. A

203,300 2,958,015

Sprott

1,414,533 2,392,037

U.S. Global Investors Cl. A

646,254 1,376,521

Urbana Corporation

237,600 609,353

Value Line

136,074 2,397,624

Virtu Financial Cl. A 3,4

107,800 1,746,360

Warsaw Stock Exchange

52,900 646,572

Westaim Corporation 1

20,000 47,766

Westwood Holdings Group 3

12,400 834,148

ZAIS Group Holdings Cl. A 1,3,4

262,960 959,804 31,690,675 Consumer Finance - 0.5%

EZCORP Cl. A 1,3,4

201,000 1,909,500

J.G. Wentworth Company Cl. A 1,2

135,000 20,250 1,929,750 Diversified Financial Services - 0.1%

Banca Finnat Euramerica

568,000 282,626

Waterloo Investment Holdings 1,5

806,000 241,800 524,426 Insurance - 1.0%

Hallmark Financial Services 1,3,4

114,000 1,323,540

State Auto Financial

59,264 1,554,495

Trupanion 1,3,4

52,300 1,381,243 4,259,278 Total 47,704,126 Health Care – 14.2% Biotechnology - 5.4%

Abeona Therapeutics 1,3,4

227,221 3,874,118

Aquinox Pharmaceuticals 1,3,4

145,397 2,063,183

ARCA biopharma 1

234,847 258,332

BioCryst Pharmaceuticals 1

144,000 754,560

Invitae Corporation 1

156,412 1,465,580

Keryx Biopharmaceuticals 1

117,725 835,848

Kindred Biosciences 1

126,000 989,100

Knight Therapeutics 1

187,000 1,296,374

Mirati Therapeutics 1

251,100 2,937,870

Progenics Pharmaceuticals 1

6,500 47,840

Sangamo Therapeutics 1

175,650 2,634,750

Zafgen 1

332,491 1,170,368

Zealand Pharma 1

187,900 3,625,944 21,953,867 Health Care Equipment & Supplies - 4.9%

Analogic Corporation

18,200 1,524,250

AtriCure 1,3

15,000 335,550

Atrion Corporation 3

6,169 4,145,568

CRH Medical 1

133,000 346,424

Exactech 1,3,4

105,600 3,479,520

Inogen 1

5,400 513,540

Invacare Corporation 3

44,300 697,725

LeMaitre Vascular

5,000 187,100

OraSure Technologies 1,3

50,000 1,125,000

STRATEC Biomedical

14,000 837,589

Surmodics 1

124,192 3,849,952

TearLab Corporation 1

8,500 10,880

Utah Medical Products

34,000 2,500,700 19,553,798 Health Care Providers & Services - 2.3%

Aceto Corporation

79,600 893,908

BioTelemetry 1

47,700 1,574,100

Cross Country Healthcare 1

150,800 2,145,884

National Research Cl. A

89,529 3,375,243

Psychemedics Corporation 3

37,500 691,125

U.S. Physical Therapy

10,000 614,500 9,294,760 Health Care Technology - 0.3%

Connecture 1

20,000 13,400

Vocera Communications 1

33,100 1,038,347 1,051,747 Pharmaceuticals - 1.3%

Agile Therapeutics 1,3,4

80,000 356,800

Alcobra 1

745,055 752,505

Flex Pharma 1

310,210 1,057,816

Lipocine 1

294,242 1,168,141

Theravance Biopharma 1

59,009 2,020,468 5,355,730 Total 57,209,902 Industrials – 20.1% Aerospace & Defense - 0.7%

Astronics Corporation 1

5,060 150,535

CPI Aerostructures 1

11,800 110,330

FLYHT Aerospace Solutions 1

191,680 380,979

Innovative Solutions and Support 1

142,828 519,894

Mercury Systems 1,3

29,700 1,540,836

SIFCO Industries 1

45,800 261,060 2,963,634 Building Products - 1.2%

Burnham Holdings Cl. A 2

117,000 1,755,000

DIRTT Environmental Solutions 1

171,000 751,016

Insteel Industries

44,200 1,154,062

Patrick Industries 1

11,500 967,150 4,627,228 Commercial Services & Supplies - 2.2%

Atento 1

142,501 1,653,011

CompX International Cl. A

102,844 1,568,371

Heritage-Crystal Clean 1,3

230,477 5,012,875

Team 1,3,4

57,500 767,625 9,001,882 Construction & Engineering - 2.4%

Aecon Group

40,500 570,294

Ameresco Cl. A 1

251,400 1,960,920

IES Holdings 1

220,000 3,806,000

Layne Christensen 1,3,4

50,000 627,500

Northwest Pipe 1,3,4

61,600 1,171,632

NV5 Global 1,3,4

27,400 1,497,410 9,633,756 Electrical Equipment - 1.0%

Encore Wire 3

4,100 183,578

LSI Industries

154,212 1,019,341

Orion Energy Systems 1

170,000 190,400

Powell Industries

21,400 641,786

Power Solutions International 1,2,3,4

21,100 179,772

Preformed Line Products

20,743 1,396,004

Revolution Lighting Technologies 1

81,200 527,800 4,138,681 Industrial Conglomerates - 0.8%

Raven Industries 3

102,559 3,322,912 Machinery - 7.9%

Chart Industries 1

1,100 43,153

CIRCOR International 3

56,900 3,097,067

Eastern Company (The)

39,750 1,140,825

Exco Technologies

73,300 569,246

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

95,300 2,168,075

FreightCar America

81,000 1,584,360

Global Brass and Copper Holdings

5,000 169,000

Graham Corporation 3

75,150 1,565,375

Harsco Corporation 1

4,400 91,960

Hurco Companies

36,866 1,533,626

Kadant

49,800 4,907,790

Kornit Digital 1

37,000 566,100

Lindsay Corporation 3,4

27,600 2,536,440

Luxfer Holdings ADR 3

59,712 743,414

Lydall 1

1,800 103,140

45,300 1,313,700

Sun Hydraulics

74,000 3,996,000

Tennant Company

34,400 2,277,280

Titan International

212,200 2,153,830

Westport Fuel Systems 1

377,900 1,235,733 31,796,114 Marine - 1.0%

Clarkson

109,900 4,213,278 Professional Services - 1.3%

Acacia Research 1,3

190,000 864,500

CBIZ 1

47,000 763,750

Franklin Covey 1

40,100 814,030

GP Strategies 1

7,600 234,460

Heidrick & Struggles International

46,300 979,245

Kforce 3

4,700 94,940

Resources Connection

11,200 155,680

RPX Corporation 1

96,000 1,274,880 5,181,485 Road & Rail - 0.7%

Marten Transport

5,500 113,025

Patriot Transportation Holding 1,3

55,764 1,087,398

Universal Logistics Holdings 3

77,600 1,586,920 2,787,343 Trading Companies & Distributors - 0.9%

Central Steel & Wire 2

788 338,840

EnviroStar 3,4

64,400 1,780,660

Houston Wire & Cable 1

249,918 1,312,069 3,431,569 Total 81,097,882 Information Technology – 20.5% Communications Equipment - 0.8%

ADTRAN 3

23,300 559,200

CalAmp Corporation 1

3,100 72,075

Clearfield 1

61,300 833,680

EMCORE Corporation 1

8,300 68,060

Harmonic 1

147,000 448,350

Oclaro 1

131,700 1,136,571

PCTEL

34,100 214,830 3,332,766 Electronic Equipment, Instruments & Components - 6.0%

Airgain 1

4,800 43,632

Bel Fuse Cl. A

67,705 1,800,953

ePlus 1

3,000 277,350

Fabrinet 1

2,200 81,532

FARO Technologies 1,3

76,800 2,937,600

Firan Technology Group 1

25,000 69,125

HollySys Automation Technologies

62,900 1,359,269

Inficon Holding

3,220 2,093,241

LRAD Corporation 1

853,456 1,817,861

Mesa Laboratories 3

32,900 4,912,628

Netlist 1

63,600 46,746

Novanta 1

37,600 1,639,360

Orbotech 1,3,4

87,000 3,672,270

PC Connection

43,716 1,232,354

Perceptron 1

8,500 67,065

Richardson Electronics

316,900 1,891,893

Rogers Corporation 1,3

600 79,968

Vishay Precision Group 1

10,000 244,000 24,266,847 Internet Software & Services - 4.1%

Actua Corporation 1

36,876 564,203

Care.com 1,3,4

181,787 2,888,595

comScore 1,2

64,195 1,829,557

IZEA 1,3,4

85,870 609,677

MINDBODY Cl. A 1

38,900 1,005,565

QuinStreet 1

505,550 3,715,793

Reis

25,000 450,000

Solium Capital 1

309,700 2,556,530

Stamps.com 1

12,300 2,492,595

Support.com 1

105,600 248,160 16,360,675 IT Services - 0.5%

Computer Task Group 1,3

150,838 808,492

Hackett Group (The)

27,700 420,763

Innodata 1

437,275 655,912

Virtusa Corporation 1

8,100 306,018 2,191,185 Semiconductors & Semiconductor Equipment - 5.6%

Amtech Systems 1,3,4

147,984 1,772,848

Brooks Automation

91,500 2,777,940

CyberOptics Corporation 1

43,000 698,750

FormFactor 1

22,869 385,343

Intermolecular 1

240,000 244,800

IXYS Corporation 1

18,800 445,560

Kopin Corporation 1

242,200 1,009,974

Kulicke & Soffa Industries 1

88,000 1,898,160

MoSys 1

68,427 65,286

Nanometrics 1

64,600 1,860,480

NeoPhotonics Corporation 1

51,300 285,228

Nova Measuring Instruments 1

76,000 2,136,360

PDF Solutions 1

97,000 1,502,530

Photronics 1

223,500 1,977,975

Rudolph Technologies 1

2,100 55,230

Sigma Designs 1

249,000 1,568,700

Silicon Motion Technology ADR

34,100 1,637,823

Ultra Clean Holdings 1,3

49,900 1,527,938

Veeco Instruments 1,3

17,500 374,500

Xcerra Corporation 1

11,300 111,305 22,336,730 Software - 2.5%

Agilysys 1

170,587 2,038,515

American Software Cl. A

120,352 1,367,199

BSQUARE Corporation 1

83,675 435,110

Computer Modelling Group

337,700 2,479,128

Model N 1

73,193 1,094,235

Monotype Imaging Holdings

15,000 288,750

PSI Software

34,000 691,175

RealNetworks 1

130,171 624,821

Rubicon Project 1

75,000 291,750

SeaChange International 1

284,200 778,708

Varonis Systems 1

2,600 108,940 10,198,331 Technology Hardware, Storage & Peripherals - 1.0%

Intevac 1

293,400 2,479,230

Kortek

135,007 1,597,193 4,076,423 Total 82,762,957 Materials – 6.1% Chemicals - 2.0%

Balchem Corporation

11,775 957,190

FutureFuel Corporation

85,262 1,342,024

LSB Industries 1

135,800 1,078,252

Quaker Chemical 3

24,400 3,609,980

Trecora Resources 1

89,600 1,191,680 8,179,126 Construction Materials - 0.9%

Ash Grove Cement 2

4,465 2,268,220

Monarch Cement 2

16,303 1,067,846

U.S. Concrete 1

3,400 259,420 3,595,486 Containers & Packaging - 0.2%

UFP Technologies 1

36,445 1,024,105 Metals & Mining - 3.0%

Alamos Gold Cl. A

186,044 1,256,943

Ampco-Pittsburgh

79,002 1,374,635

Comstock Mining 1

1,875,000 292,500

Haynes International 3

26,100 937,251

Imdex 1

400,666 282,854

MAG Silver 1

74,050 831,582

Major Drilling Group International 1

850,357 4,770,586

Olympic Steel

35,000 770,000

Pretium Resources 1

80,000 740,533

Universal Stainless & Alloy Products 1

15,300 319,005

Victoria Gold 1

890,000 335,243 11,911,132 Total 24,709,849 Real Estate – 4.1% Equity Real Estate Investment Trusts (REITs) - 0.6%

BRT Apartments

230,331 2,469,148 Real Estate Management & Development - 3.5%

Altus Group

87,000 2,215,179

FRP Holdings 1,3,4

76,500 3,461,625

Griffin Industrial Realty

43,384 1,577,009

Hopefluent Group Holdings

1,400,000 715,091

Marcus & Millichap 1,3,4

49,567 1,337,813

RMR Group Cl. A

34,900 1,792,115

Tejon Ranch 1,3

129,162 2,725,318 13,824,150 Total 16,293,298 Telecommunication Services – 0.2% Diversified Telecommunication Services - 0.2%

ORBCOMM 1

67,100 702,537 Total 702,537 Utilities – 0.4% Gas Utilities - 0.1%

Shizuoka Gas

40,000 316,730 Independent Power & Renewable Electricity Producer - 0.1%

Alterra Power

45,000 197,996 Water Utilities - 0.2%

Global Water Resources

106,000 998,520 Total 1,513,246 Miscellaneous6 – 3.9% Total 15,607,236 TOTAL COMMON STOCKS

(Cost $335,276,902)

413,637,479 REPURCHASE AGREEMENT – 8.1% Fixed Income Clearing Corporation,

0.12% dated 9/29/17, due 10/2/17,

maturity value $32,651,327 (collateralized

by obligations of various U.S. Government

Agencies, 2.125% due 5/15/25, valued at

$33,305,539)

(Cost $32,651,000)

32,651,000 TOTAL INVESTMENTS – 110.8%

(Cost $367,927,902)

446,288,479 LIABILITIES LESS CASH

AND OTHER ASSETS – (10.8)% (43,391,118 ) NET ASSETS – 100.0% $ 402,897,361
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 September 30, 2017. Total market value of pledged securities at September 30, 2017, was $83,116,756. 4 At September 30, 2017, a portion of these securities were rehypothecated in connection with the Fund’s revolving credit agreement in the aggregate amount of $39,074,097. 5 Securities for which market quotations are not readily available represent 0.1% of net assets. These securities have been valued at their fair value under procedures approved by the Fund’s Board of Directors. These securities are defined as Level 3 securities due to the use of significant unobservable inputs in the determination of fair value. 6 Includes securities first acquired in 2017 and less than 1% of net assets.

TAX INFORMATION: The cost of total investments for Federal income tax purposes was $369,508,185. At September 30, 2017, net unrealized appreciation for all securities was $76,780,294, consisting of aggregate gross unrealized appreciation of $125,700,762 and aggregate gross unrealized depreciation of $48,920,468. 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 September 30, 2017. 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 $402,015,593 $11,380,086 $241,800 $413,637,479 Cash Equivalents – 32,651,000 – 32,651,000

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, 2017, securities valued at $2,304,666 were transferred from Level 1 to Level 2 and securities valued at $20,298,987 were transferred from Level 2 to Level 1 within the fair value hierarchy.

Level 3 Reconciliation:

Realized and Unrealized Balance as of 12/31/16 Sales Gain (Loss) Balance as of 9/30/17 Common Stocks $241,862 $102 $40 $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, 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 9/30/17 Valuation Technique(s) Input(s) Range Average an Increase in Input1 Common Stocks $241,800 Discounted Present Value
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, 2017 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 September 30, 2017, the Fund has outstanding borrowings of $45,000,000. During the period ended September 30, 2017, 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: November 20, 2017

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 20, 2017 By: /s/ Peter K. Hoglund Peter K. Hoglund Treasurer, Royce Micro-Cap Trust, Inc. Date: November 20, 2017