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: 9/30/2018
Item 1 - Schedule of Investments
SCHEDULE OF INVESTMENTS |
ROYCE MICRO-CAP TRUST |
SEPTEMBER 30, 2018 (UNAUDITED) |
SHARES | VALUE | ||||||
COMMON STOCKS 100.9% | |||||||
Communication Services 2.8% | |||||||
Diversified Telecommunication Services - 0.2% | |||||||
ORBCOMM 1 |
87,100 | $ | 945,906 | ||||
Entertainment - 0.5% | |||||||
Chicken Soup For The Soul Entertainment |
195,000 | 1,989,000 | |||||
Interactive Media & Services - 1.5% | |||||||
171,787 | 3,798,211 | ||||||
QuinStreet 1 |
210,850 | 2,861,234 | |||||
6,659,445 | |||||||
Media - 0.6% | |||||||
comScore 1 |
64,195 | 1,170,275 | |||||
McClatchy Company (The) Cl. A 1 |
69,313 | 589,854 | |||||
New Media Investment Group |
66,200 | 1,038,678 | |||||
2,798,807 | |||||||
Total | 12,393,158 | ||||||
Consumer Discretionary 11.7% | |||||||
Auto Components - 1.5% | |||||||
Fox Factory Holding 1 |
5,300 | 371,265 | |||||
Motorcar Parts of America 1 |
54,800 | 1,285,060 | |||||
Sebang Global Battery |
50,500 | 1,709,511 | |||||
Standard Motor Products |
50,860 | 2,503,329 | |||||
Stoneridge 1 |
13,700 | 407,164 | |||||
Unique Fabricating |
12,200 | 98,820 | |||||
6,375,149 | |||||||
Distributors - 0.6% | |||||||
Uni-Select |
33,800 | 575,436 | |||||
Weyco Group 2 |
54,300 | 1,910,274 | |||||
2,485,710 | |||||||
Diversified Consumer Services - 1.1% | |||||||
Aspen Group 1 |
141,520 | 962,336 | |||||
Collectors Universe 2 |
108,200 | 1,601,360 | |||||
Liberty Tax Cl. A 3 |
142,900 | 1,664,785 | |||||
Universal Technical Institute 1 |
270,000 | 718,200 | |||||
4,946,681 | |||||||
Hotels, Restaurants & Leisure - 1.6% | |||||||
Century Casinos 1 |
222,500 | 1,659,850 | |||||
Del Taco Restaurants 1 |
8,200 | 96,842 | |||||
Lindblad Expeditions Holdings 1 |
254,000 | 3,776,980 | |||||
Lindblad Expeditions Holdings (Warrants) 1 |
18,100 | 74,391 | |||||
Red Lion Hotels 1 |
115,500 | 1,443,750 | |||||
7,051,813 | |||||||
Household Durables - 1.7% | |||||||
19,641 | 4,969,173 | ||||||
Ethan Allen Interiors 2 |
18,100 | 375,575 | |||||
Flexsteel Industries 2 |
16,100 | 478,814 | |||||
Lifetime Brands 2 |
119,294 | 1,300,305 | |||||
Universal Electronics 1 |
6,100 | 240,035 | |||||
ZAGG 1 |
3,700 | 54,575 | |||||
7,418,477 | |||||||
Internet & Direct Marketing Retail - 1.6% | |||||||
FTD Companies 1 |
67,200 | 176,736 | |||||
125,000 | 1,925,000 | ||||||
Leaf Group 1 |
64,500 | 645,000 | |||||
Real Matters 1 |
255,000 | 898,270 | |||||
Stamps.com 1 |
11,700 | 2,646,540 | |||||
Yatra Online 1 |
105,000 | 585,900 | |||||
6,877,446 | |||||||
Leisure Products - 0.8% | |||||||
Clarus Corporation |
174,926 | 1,932,932 | |||||
Nautilus 1 |
118,500 | 1,653,075 | |||||
3,586,007 | |||||||
Multiline Retail - 0.0% | |||||||
36,700 | 117,440 | ||||||
Specialty Retail - 1.6% | |||||||
AutoCanada |
237,700 | 2,508,304 | |||||
Barnes & Noble Education 1 |
80,000 | 460,800 | |||||
Destination Maternity 1 |
212,000 | 987,920 | |||||
Destination XL Group 1 |
50,000 | 125,000 | |||||
Haverty Furniture |
38,400 | 848,640 | |||||
Kirklands 1 |
11,000 | 110,990 | |||||
Lazydays Holdings 1 |
30,000 | 226,500 | |||||
MarineMax 1 |
7,600 | 161,500 | |||||
269,700 | 768,645 | ||||||
Shoe Carnival 2 |
18,416 | 709,016 | |||||
Stage Stores 2 |
15,000 | 29,550 | |||||
6,936,865 | |||||||
Textiles, Apparel & Luxury Goods - 1.2% | |||||||
Crown Crafts |
112,159 | 639,306 | |||||
Culp |
32,900 | 796,180 | |||||
J.G. Boswell Company 3 |
2,490 | 1,620,990 | |||||
YGM Trading |
2,564,600 | 2,260,469 | |||||
5,316,945 | |||||||
Total | 51,112,533 | ||||||
Consumer Staples 2.6% | |||||||
Beverages - 0.3% | |||||||
58,124 | 514,397 | ||||||
Primo Water 1 |
40,400 | 729,220 | |||||
1,243,617 | |||||||
Food Products - 2.2% | |||||||
AGT Food and Ingredients |
25,800 | 352,150 | |||||
62,600 | 1,652,640 | ||||||
John B. Sanfilippo & Son 2 |
17,800 | 1,270,564 | |||||
75,610 | 1,088,784 | ||||||
RiceBran Technologies 1 |
50,000 | 143,500 | |||||
81,087 | 2,732,632 | ||||||
Seneca Foods Cl. B 1 |
40,400 | 1,292,800 | |||||
SunOpta 1 |
176,281 | 1,295,665 | |||||
9,828,735 | |||||||
Household Products - 0.1% | |||||||
Central Garden & Pet 1 |
12,000 | 432,480 | |||||
Total | 11,504,832 | ||||||
Energy 8.1% | |||||||
Energy Equipment & Services - 5.0% | |||||||
Aspen Aerogels 1 |
94,985 | 434,081 | |||||
70,000 | 507,500 | ||||||
CES Energy Solutions |
25,000 | 82,453 | |||||
Computer Modelling Group |
437,700 | 2,863,442 | |||||
Dawson Geophysical 1 |
77,336 | 478,710 | |||||
329,800 | 4,073,030 | ||||||
9,500 | 130,150 | ||||||
460,000 | 2,704,800 | ||||||
Independence Contract Drilling 1 |
134,400 | 663,936 | |||||
Mammoth Energy Services |
4,500 | 130,950 | |||||
28,700 | 707,455 | ||||||
Nabors Industries |
34,000 | 209,440 | |||||
Newpark Resources 1 |
11,200 | 115,920 | |||||
North American Construction Group |
50,000 | 490,000 | |||||
245,600 | 724,520 | ||||||
Precision Drilling 1 |
108,600 | 375,756 | |||||
Profire Energy 1 |
175,000 | 558,250 | |||||
197,257 | 4,463,926 | ||||||
TerraVest Industries |
209,000 | 1,755,623 | |||||
Total Energy Services |
25,700 | 216,082 | |||||
Trican Well Service 1 |
53,300 | 95,322 | |||||
21,781,346 | |||||||
Oil, Gas & Consumable Fuels - 3.1% | |||||||
Ardmore Shipping 1 |
199,300 | 1,295,450 | |||||
Cross Timbers Royalty Trust |
67,631 | 998,234 | |||||
Dorchester Minerals L.P. |
153,963 | 3,140,845 | |||||
Dorian LPG 1 |
163,138 | 1,300,210 | |||||
GeoPark 1 |
61,971 | 1,264,208 | |||||
Hallador Energy |
24,000 | 149,280 | |||||
Leucrotta Exploration 1 |
489,800 | 712,905 | |||||
Panhandle Oil and Gas Cl. A |
5,500 | 101,475 | |||||
Permian Basin Royalty Trust |
176,333 | 1,403,611 | |||||
Sabine Royalty Trust 2 |
59,548 | 2,509,948 | |||||
StealthGas 1 |
229,664 | 817,604 | |||||
Teekay Offshore Partners L.P. |
56,000 | 131,040 | |||||
13,824,810 | |||||||
Total | 35,606,156 | ||||||
Financials 12.9% | |||||||
Banks - 2.4% | |||||||
Bank of N.T. Butterfield & Son |
43,810 | 2,271,987 | |||||
Blue Hills Bancorp |
50,000 | 1,205,000 | |||||
Bryn Mawr Bank |
25,000 | 1,172,500 | |||||
Caribbean Investment Holdings 1 |
735,635 | 177,383 | |||||
Chemung Financial |
31,000 | 1,315,330 | |||||
Fauquier Bankshares 2 |
133,200 | 3,371,292 | |||||
Live Oak Bancshares 2 |
30,900 | 828,120 | |||||
735,647 | 0 | ||||||
10,341,612 | |||||||
Capital Markets - 7.7% | |||||||
ASA Gold and Precious Metals |
171,150 | 1,518,100 | |||||
Ashford 1 |
10,000 | 758,700 | |||||
B. Riley Financial |
4,600 | 104,190 | |||||
Bolsa Mexicana de Valores |
1,068,000 | 2,185,194 | |||||
Canaccord Genuity Group |
203,300 | 1,086,029 | |||||
Diamond Hill Investment Group 2 |
3,584 | 592,758 | |||||
Donnelley Financial Solutions 1 |
50,000 | 896,000 | |||||
Dundee Corporation Cl. A 1 |
413,200 | 563,026 | |||||
Fiera Capital Cl. A |
78,000 | 753,641 | |||||
GAIN Capital Holdings 2 |
25,000 | 162,500 | |||||
GMP Capital |
332,800 | 587,453 | |||||
Great Elm Capital Group 1 |
515,200 | 1,674,400 | |||||
Hamilton Lane Cl. A 2 |
32,300 | 1,430,244 | |||||
60,527 | 2,924,665 | ||||||
JZ Capital Partners 1 |
50,000 | 302,389 | |||||
Manning & Napier Cl. A |
136,600 | 402,970 | |||||
MVC Capital |
219,900 | 2,122,035 | |||||
OHA Investment |
59,761 | 90,538 | |||||
Pzena Investment Management Cl. A |
6,100 | 58,194 | |||||
Queen City Investments 3 |
948 | 1,137,600 | |||||
Silvercrest Asset Management Group Cl. A |
203,300 | 2,815,705 | |||||
Sprott |
1,414,533 | 3,296,361 | |||||
U.S. Global Investors Cl. A 2 |
439,454 | 667,970 | |||||
Urbana Corporation |
237,600 | 498,506 | |||||
Value Line 2 |
131,974 | 3,286,153 | |||||
86,200 | 1,762,790 | ||||||
Vostok New Ventures SDR 1 |
100,000 | 776,380 | |||||
Warsaw Stock Exchange |
52,900 | 637,790 | |||||
Westaim Corporation 1 |
45,000 | 111,834 | |||||
Westwood Holdings Group 2 |
12,400 | 641,576 | |||||
33,845,691 | |||||||
Consumer Finance - 0.5% | |||||||
Currency Exchange International 1 |
7,000 | 165,455 | |||||
201,000 | 2,150,700 | ||||||
2,316,155 | |||||||
Diversified Financial Services - 0.1% | |||||||
806,000 | 241,800 | ||||||
Insurance - 1.2% | |||||||
114,000 | 1,254,000 | ||||||
Health Insurance Innovations Cl. A 1 |
4,000 | 246,600 | |||||
Heritage Insurance Holdings |
6,600 | 97,812 | |||||
State Auto Financial |
23,500 | 717,690 | |||||
82,300 | 2,940,579 | ||||||
5,256,681 | |||||||
Investment Companies - 1.0% | |||||||
438,850 | 4,349,003 | ||||||
Total | 56,350,942 | ||||||
Health Care 14.5% | |||||||
Biotechnology - 4.0% | |||||||
142,221 | 1,820,429 | ||||||
145,397 | 426,013 | ||||||
Arcturus Therapeutics 1 |
106,436 | 940,894 | |||||
BioCryst Pharmaceuticals 1 |
144,000 | 1,098,720 | |||||
CareDx 1 |
56,000 | 1,615,600 | |||||
Idera Pharmaceuticals 1 |
58,061 | 517,324 | |||||
Knight Therapeutics 1 |
187,000 | 1,190,059 | |||||
Mirati Therapeutics 1 |
31,100 | 1,464,810 | |||||
Theratechnologies 1 |
10,000 | 67,201 | |||||
445,381 | 5,206,504 | ||||||
Zealand Pharma 1 |
187,900 | 3,077,594 | |||||
Zealand Pharma ADR 1 |
10,000 | 165,200 | |||||
17,590,348 | |||||||
Health Care Equipment & Supplies - 5.1% | |||||||
15,000 | 525,450 | ||||||
Atrion Corporation 2 |
6,169 | 4,286,221 | |||||
Chembio Diagnostics 1 |
35,500 | 372,750 | |||||
CryoLife 1 |
4,600 | 161,920 | |||||
GenMark Diagnostics 1 |
20,400 | 149,940 | |||||
Inogen 1 |
4,300 | 1,049,716 | |||||
Invacare Corporation 2 |
54,100 | 787,155 | |||||
LeMaitre Vascular |
5,000 | 193,700 | |||||
50,000 | 772,500 | ||||||
OrthoPediatrics Corporation 1 |
33,300 | 1,220,112 | |||||
STRATEC Biomedical |
14,000 | 1,051,680 | |||||
113,700 | 8,487,705 | ||||||
8,500 | 1,326 | ||||||
Utah Medical Products |
33,000 | 3,108,600 | |||||
22,168,775 | |||||||
Health Care Providers & Services - 2.7% | |||||||
AAC Holdings 1 |
89,400 | 682,122 | |||||
Aceto Corporation |
58,300 | 131,758 | |||||
BioTelemetry 1 |
47,700 | 3,074,265 | |||||
CRH Medical 1 |
133,000 | 529,261 | |||||
Cross Country Healthcare 1 |
150,800 | 1,316,484 | |||||
National Research 2 |
89,529 | 3,455,819 | |||||
PetIQ Cl. A 1 |
25,000 | 982,750 | |||||
Psychemedics Corporation 2 |
37,500 | 705,375 | |||||
U.S. Physical Therapy |
10,000 | 1,186,000 | |||||
12,063,834 | |||||||
Health Care Technology - 1.2% | |||||||
47,500 | 3,856,525 | ||||||
Vocera Communications 1 |
33,100 | 1,210,798 | |||||
5,067,323 | |||||||
Life Sciences Tools & Services - 1.0% | |||||||
NeoGenomics 1 |
125,000 | 1,918,750 | |||||
Quanterix Corporation 1 |
115,500 | 2,474,010 | |||||
4,392,760 | |||||||
Pharmaceuticals - 0.5% | |||||||
80,000 | 29,320 | ||||||
Aratana Therapeutics 1 |
9,200 | 53,728 | |||||
Corium International 1 |
4,900 | 46,599 | |||||
Correvio Pharma 1 |
33,800 | 135,876 | |||||
Theravance Biopharma 1 |
59,009 | 1,927,824 | |||||
2,193,347 | |||||||
Total | 63,476,387 | ||||||
Industrials 21.9% | |||||||
Aerospace & Defense - 0.2% | |||||||
Astronics Corporation 1 |
2,460 | 107,010 | |||||
CPI Aerostructures 1 |
21,800 | 182,030 | |||||
Innovative Solutions and Support 1 |
78,828 | 200,223 | |||||
SIFCO Industries 1 |
45,800 | 231,290 | |||||
720,553 | |||||||
Building Products - 1.3% | |||||||
Burnham Holdings Cl. A 3 |
117,000 | 1,732,770 | |||||
CSW Industrials 1 |
20,000 | 1,074,000 | |||||
DIRTT Environmental Solutions 1 |
96,000 | 485,333 | |||||
Insteel Industries |
44,200 | 1,585,896 | |||||
Patrick Industries 1 |
17,250 | 1,021,200 | |||||
5,899,199 | |||||||
Commercial Services & Supplies - 2.6% | |||||||
Acme United |
25,000 | 532,000 | |||||
Atento |
218,701 | 1,640,257 | |||||
Civeo Corporation 1 |
150,000 | 622,500 | |||||
CompX International Cl. A |
78,200 | 1,063,520 | |||||
216,077 | 4,613,244 | ||||||
Hudson Technologies 1 |
50,000 | 64,000 | |||||
121,200 | 1,521,060 | ||||||
57,500 | 1,293,750 | ||||||
11,350,331 | |||||||
Construction & Engineering - 3.2% | |||||||
Ameresco Cl. A 1 |
251,400 | 3,431,610 | |||||
Construction Partners Cl. A 1 |
4,200 | 50,820 | |||||
Granite Construction |
13,500 | 616,950 | |||||
206,800 | 4,032,600 | ||||||
Infrastructure and Energy Alternatives 1 |
205,000 | 2,152,500 | |||||
Infrastructure and Energy Alternatives |
|||||||
(Warrants) 1 |
100,000 | 169,000 | |||||
61,600 | 1,216,600 | ||||||
27,400 | 2,375,580 | ||||||
14,045,660 | |||||||
Electrical Equipment - 0.8% | |||||||
American Superconducter 1 |
22,700 | 157,765 | |||||
Encore Wire 2 |
4,100 | 205,410 | |||||
LSI Industries |
147,412 | 678,095 | |||||
Powell Industries |
21,400 | 775,964 | |||||
21,100 | 247,925 | ||||||
Preformed Line Products |
20,743 | 1,457,818 | |||||
81,200 | 230,608 | ||||||
3,753,585 | |||||||
Industrial Conglomerates - 1.0% | |||||||
Raven Industries 2 |
92,700 | 4,241,025 | |||||
Machinery - 8.5% | |||||||
154,800 | 7,353,000 | ||||||
Eastern Company (The) |
39,750 | 1,128,900 | |||||
Exco Technologies |
85,400 | 624,805 | |||||
95,300 | 1,958,415 | ||||||
FreightCar America 1 |
5,500 | 88,385 | |||||
Global Brass and Copper Holdings |
5,000 | 184,500 | |||||
Graham Corporation 2 |
75,150 | 2,116,976 | |||||
Harsco Corporation 1 |
4,400 | 125,620 | |||||
Hurco Companies 2 |
36,866 | 1,662,657 | |||||
Kadant 2 |
48,800 | 5,263,080 | |||||
Kornit Digital 1 |
43,900 | 961,410 | |||||
Lindsay Corporation 2 |
32,600 | 3,267,824 | |||||
Luxfer Holdings 2 |
64,012 | 1,488,279 | |||||
Lydall 1 |
12,800 | 551,680 | |||||
NN |
45,300 | 706,680 | |||||
Sun Hydraulics 2 |
74,000 | 4,053,720 | |||||
Tennant Company |
34,400 | 2,612,680 | |||||
Titan International |
212,200 | 1,574,524 | |||||
Twin Disc 1 |
4,300 | 99,072 | |||||
Westport Fuel Systems 1 |
454,500 | 1,363,500 | |||||
37,185,707 | |||||||
Marine - 1.6% | |||||||
Clarkson |
109,900 | 3,867,580 | |||||
Eagle Bulk Shipping 1 |
540,000 | 3,034,800 | |||||
6,902,380 | |||||||
Professional Services - 0.8% | |||||||
190,000 | 608,000 | ||||||
CBIZ 1 |
47,000 | 1,113,900 | |||||
Franklin Covey 1 |
40,100 | 948,365 | |||||
GP Strategies 1 |
7,600 | 128,060 | |||||
IBI Group 1 |
84,500 | 296,353 | |||||
InnerWorkings 1 |
30,400 | 240,768 | |||||
Kforce 2 |
2,800 | 105,280 | |||||
Resources Connection |
11,200 | 185,920 | |||||
3,626,646 | |||||||
Road & Rail - 0.9% | |||||||
Marten Transport |
5,500 | 115,775 | |||||
55,764 | 1,065,650 | ||||||
Universal Logistics Holdings 2 |
75,200 | 2,767,360 | |||||
3,948,785 | |||||||
Trading Companies & Distributors - 1.0% | |||||||
405 | 12,348 | ||||||
EnviroStar 2,4 |
44,300 | 1,725,485 | |||||
Houston Wire & Cable 1 |
331,418 | 2,551,919 | |||||
4,289,752 | |||||||
Total | 95,963,623 | ||||||
Information Technology 16.7% | |||||||
Communications Equipment - 0.3% | |||||||
Clearfield 1 |
85,200 | 1,145,940 | |||||
EMCORE Corporation 1 |
8,300 | 39,425 | |||||
PCTEL |
34,100 | 158,565 | |||||
1,343,930 | |||||||
Electronic Equipment, Instruments & Components - 8.1% | |||||||
8,200 | 107,748 | ||||||
Bel Fuse Cl. A |
67,705 | 1,430,607 | |||||
eMagin Corporation 1 |
125,000 | 187,500 | |||||
50,000 | 0 | ||||||
ePlus 1 |
2,100 | 194,670 | |||||
Fabrinet 1 |
2,200 | 101,772 | |||||
75,300 | 4,845,555 | ||||||
Firan Technology Group 1 |
25,000 | 44,904 | |||||
HollySys Automation Technologies |
51,900 | 1,109,103 | |||||
Inficon Holding |
3,220 | 1,645,435 | |||||
LightPath Technologies Cl. A 1 |
100,000 | 201,500 | |||||
Mesa Laboratories 2 |
49,500 | 9,188,190 | |||||
173,200 | 3,846,772 | ||||||
Novanta 1 |
36,200 | 2,476,080 | |||||
62,800 | 3,732,832 | ||||||
PAR Technology 1 |
60,268 | 1,339,155 | |||||
PC Connection 2 |
43,716 | 1,700,115 | |||||
Perceptron 1 |
8,500 | 82,875 | |||||
Richardson Electronics |
316,900 | 2,779,213 | |||||
600 | 88,392 | ||||||
Vishay Precision Group 1 |
10,000 | 374,000 | |||||
35,476,418 | |||||||
IT Services - 0.5% | |||||||
Computer Task Group 1 |
150,838 | 787,374 | |||||
Conduent 1 |
30,000 | 675,600 | |||||
Hackett Group (The) |
27,700 | 558,155 | |||||
2,021,129 | |||||||
Semiconductors & Semiconductor Equipment - 4.9% | |||||||
Adesto Technologies 1 |
97,000 | 577,150 | |||||
Alpha & Omega Semiconductor 1 |
3,300 | 38,379 | |||||
92,184 | 492,262 | ||||||
AXT 1 |
100,000 | 715,000 | |||||
Brooks Automation 2 |
90,300 | 3,163,209 | |||||
CyberOptics Corporation 1 |
45,500 | 919,100 | |||||
Everspin Technologies 1 |
5,900 | 45,312 | |||||
FormFactor 1 |
22,869 | 314,449 | |||||
Kulicke & Soffa Industries 2 |
77,200 | 1,840,448 | |||||
64,600 | 2,423,792 | ||||||
79,900 | 663,170 | ||||||
71,400 | 1,878,534 | ||||||
PDF Solutions 1 |
189,700 | 1,712,991 | |||||
Photronics 1 |
240,800 | 2,371,880 | |||||
Rudolph Technologies 1 |
52,100 | 1,273,845 | |||||
Silicon Motion Technology ADR |
34,100 | 1,831,170 | |||||
61,900 | 776,845 | ||||||
17,500 | 179,375 | ||||||
Xcerra Corporation 1 |
15,600 | 222,612 | |||||
21,439,523 | |||||||
Software - 2.0% | |||||||
Agilysys 1 |
90,000 | 1,467,000 | |||||
Amber Road 1 |
25,000 | 240,500 | |||||
American Software Cl. A |
120,352 | 1,459,870 | |||||
MINDBODY Cl. A 1 |
38,900 | 1,581,285 | |||||
Monotype Imaging Holdings |
15,000 | 303,000 | |||||
Optiva 1 |
3,000 | 113,575 | |||||
RealNetworks 1 |
100,171 | 294,503 | |||||
Rubicon Project 1 |
75,000 | 270,000 | |||||
SeaChange International 1 |
90,700 | 162,353 | |||||
Solium Capital 1 |
317,500 | 2,780,107 | |||||
Support.com 1 |
105,600 | 306,240 | |||||
8,978,433 | |||||||
Technology Hardware, Storage & Peripherals - 0.9% | |||||||
AstroNova |
5,300 | 114,480 | |||||
Cray 1 |
19,700 | 423,550 | |||||
Intevac 1 |
547,800 | 2,848,560 | |||||
USA Technologies 1 |
90,500 | 651,600 | |||||
4,038,190 | |||||||
Total | 73,297,623 | ||||||
Materials 5.8% | |||||||
Chemicals - 2.3% | |||||||
Balchem Corporation |
10,575 | 1,185,352 | |||||
LSB Industries 1 |
135,800 | 1,328,124 | |||||
OMNOVA Solutions 1 |
25,000 | 246,250 | |||||
24,400 | 4,933,924 | ||||||
Rayonier Advanced Materials |
50,000 | 921,500 | |||||
Trecora Resources 1 |
89,600 | 1,254,400 | |||||
9,869,550 | |||||||
Construction Materials - 0.3% | |||||||
Monarch Cement 3 |
16,303 | 1,190,119 | |||||
U.S. Concrete 1 |
2,500 | 114,625 | |||||
1,304,744 | |||||||
Containers & Packaging - 0.3% | |||||||
UFP Technologies 1 |
36,445 | 1,339,354 | |||||
Metals & Mining - 2.9% | |||||||
Alamos Gold Cl. A |
186,044 | 854,133 | |||||
Ampco-Pittsburgh 1 |
79,002 | 466,112 | |||||
Haynes International 2 |
27,400 | 972,700 | |||||
Hudbay Minerals |
62,200 | 314,110 | |||||
Imdex 1 |
750,666 | 645,716 | |||||
Impala Platinum Holdings 1 |
500,000 | 972,333 | |||||
MAG Silver 1 |
154,050 | 1,249,346 | |||||
Major Drilling Group International 1 |
921,657 | 3,460,718 | |||||
Olympic Steel |
35,000 | 730,450 | |||||
Pretium Resources 1 |
80,000 | 608,214 | |||||
Sandstorm Gold 1 |
510,000 | 1,902,300 | |||||
Universal Stainless & Alloy Products 1 |
16,500 | 420,915 | |||||
Victoria Gold 1 |
890,000 | 241,164 | |||||
12,838,211 | |||||||
Total | 25,351,859 | ||||||
Real Estate 3.4% | |||||||
Real Estate Management & Development - 3.4% | |||||||
Altus Group |
87,000 | 2,061,758 | |||||
69,000 | 4,284,900 | ||||||
49,567 | 1,720,470 | ||||||
RMR Group Cl. A |
34,900 | 3,238,720 | |||||
154,994 | 3,364,920 | ||||||
Total | 14,670,768 | ||||||
Utilities 0.5% | |||||||
Independent Power & Renewable Electricity Producer - 0.0% | |||||||
Innergex Renewable Energy |
15,573 | 156,496 | |||||
Water Utilities - 0.5% | |||||||
AquaVenture Holdings 1 |
50,000 | 903,500 | |||||
Global Water Resources |
106,000 | 1,122,540 | |||||
2,026,040 | |||||||
Total | 2,182,536 | ||||||
TOTAL COMMON STOCKS | |||||||
(Cost $333,409,910) |
441,910,417 | ||||||
PREFERRED STOCK 0.5% | |||||||
Chicken Soup For The Soul Entertainment |
|||||||
9.75% Ser. A 2 |
80,000 | 2,077,600 | |||||
(Cost $2,000,000) |
2,077,600 | ||||||
REPURCHASE AGREEMENT 3.7% | |||||||
Fixed Income Clearing Corporation, | |||||||
0.42% dated 9/28/18, due 10/1/18, |
|||||||
maturity value $16,430,575 (collateralized |
|||||||
by obligations of various U.S. Government |
|||||||
Agencies, 3.125% due 2/15/43, valued at $16,763,061) |
|||||||
(Cost $16,430,000) |
16,430,000 | ||||||
TOTAL INVESTMENTS 105.1% | |||||||
(Cost $351,839,910) |
460,418,017 | ||||||
LIABILITIES LESS CASH | |||||||
AND OTHER ASSETS (5.1)% |
(22,367,102 | ) | |||||
NET ASSETS 100.0% | $ | 438,050,915 | |||||
1 | Non-income producing. |
2 | All or a portion of these securities were pledged as collateral in connection
with the Funds revolving credit agreement at September 30, 2018. Total market
value of pledged securities at September 30, 2018, was $45,556,195. |
3 | These securities are defined as Level 2 securities due to fair value being
based on quoted prices for similar securities. |
4 | At September 30, 2018, a portion of these securities were rehypothecated in
connection with the Funds revolving credit agreement in the aggregate amount
of $19,785,566. |
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 Funds 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 $352,826,428. At September 30, 2018, net unrealized appreciation for all securities was $107,591,589, consisting of aggregate gross unrealized appreciation of $152,817,311 and aggregate gross unrealized depreciation of $45,225,722. 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 Nasdaqs 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 Funds 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 Funds 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 Funds investments as of September 30, 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 | $433,546,356 | $ 8,109,913 | $254,148 | $441,910,417 | ||||
Preferred Stocks | 2,077,600 | | | 2,077,600 | ||||
Cash Equivalents | | 16,430,000 | | 16,430,000 |
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, 2018, securities valued at $1,664,785 were transferred from Level 1 to Level 2 and securities valued at $14,107,970 were transferred from Level 2 to Level 1 within the fair value hierarchy.
Level 3 Reconciliation: | ||||||||||
Balance as of | Realized | Unrealized | ||||||||
12/31/17 | Purchases | Gain (Loss) | Gain (Loss) | Balance as of 9/30/18 | ||||||
Common Stocks | $241,800 | $0 | $ | $12,348 | $254,148 |
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 | ||||||||
9/30/18 | Valuation Technique(s) | Input(s) | Range Average | an Increase in Input 1 | ||||||
Common Stocks |
$254,148 |
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 Funds 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, 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 September 30, 2018, the Fund has outstanding
borrowings of $22,000,000. During the period ended September 30, 2018, the Fund
borrowed an average daily balance of $43,479,853. 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 Funds 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 Funds most recent Report to Stockholders. This information is available through The Royce Funds (www.roycefunds.com) and on the Securities and Exchange Commissions 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 26, 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: November 26, 2018
By:
/s/ Peter K. Hoglund
Peter K. Hoglund
Treasurer, Royce Micro-Cap Trust, Inc.
Date: November 26, 2018