Investment Opportunities in Post-Earthquake Japan
March 11, 2012

On the one-year anniversary of the earthquake and tsunami in Japan, Chief Investment Officer, Neil Hennessy, recounts his recent visit to the devastated region and makes the case that Japan offers a fantastic investing opportunity - now more than ever.

Small and medium-capitalization companies tend to have limited liquidity and greater price volatility than large-capitalization companies. Investments in foreign securities involve greater volatility and political, economic and currency risk and differences in accounting methods.

Mutual fund investing involves risk. Principal loss in possible. Past performance does not guarantee future results. The Hennessy Select Japan Smaller Companies Fund has experienced recent negative performance. Please visit the performance page for fund performance.

Opinions expressed are those of Neil Hennessy and are subject to change, are not guaranteed and should not be considered investment advice.

View the most recent Top Ten Holdings for the Hennessy Select SPARX Japan Fund. View the most recent Top Ten Holdings for the Hennessy Select SPARX Japan Smaller Companies Fund. Fund holdings and sector allocations are subject to change at any time and should not be considered recommendations to buy or sell any security.

US is represented by the S&P 500, which is an unmanaged index commonly used to measure performance of U.S. stocks. Japam is represented by the Nikkei 225, which is a stock market index for the Tokyo Stock Exchange and is commonly used to measure the performance of Japanese stocks. Brazil is represented by IBOV, or Bolsa de Valores, Mercadorias & Futuros de São Paulo, which is a São Paulo-based stock exchange and is  representative of the performance of stocks in Brazil. Russia is represented by the RTSI$, or Russian Trading System Cash Index, which is a capitalization-weighted index comprised of stocks traded on the Russian Trading System and is commonly used to measure the performance of stocks in Russia. India is represented by the BSE 500, or Bombay Stock Exchange 500 Index, which represents nearly 93% of the total market capitalization on the Bombay Stock Exchange Limited and is commonly used to measure the performance of stocks in India. The SZCOMP, or Shenzhen Composite, is an unmanaged index commonly used to measure performance of Chinese stocks. One cannot invest directly in an index.

The price-to-book ratio compares a stock’s market value to the value of total assets less total liabilities. The price-to-sales ratio is a tool for calculating a stock’s valuation relative to other companies, calculated by dividing a stock’s current price by its revenue per share.  The price-to-earnings ratio reflects the multiple of earnings at which a stock sells. The price-to-cash flow ratio takes the current price divided by cash flow per share for the trailing twelve months.

A Lipper Fund Award is awarded to one fund in each Lipper classification for achieving the strongest trend of consistent risk-adjusted performance against its classification peers over a three, five or ten-year period. The Hennessy Select SPARX Japan Smaller Companies Fund received the Lipper Award for best three-year risk-adjusted performance among 10 Japanese funds for the period ended 11/30/11. Although Lipper makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Lipper. Lipper Analytical Services, Inc. is an independent mutual fund research and rating service. © 2012, All Rights Reserved