• Overview

    Category
    Sector & Specialty - Japan

    Hennessy Japan Small Cap Fund

    Actively managed, the Fund maintains a relatively concentrated portfolio of Japanese small-cap companies.

    Investor

    HJPSX

    Institutional

    HJSIX

    Morningstar style box

    Morningstar style box

    Overall morningstar rating

    • Investor
    • HJPSX
    • Institutional
    • HJSIX

    Among 35 Japan Stock Funds (Based on risk-adjusted returns, as of 6/30/21)

    Portfolio Manager Commentary
    Portfolio Manager Commentary

    Why Invest

    • Opportunity to invest in the potential rebound of Japan's economy
    • Growth-oriented, small-cap Japanese companies that may be overlooked by other investors
    • Asia-based management enables rigorous due diligence and research process leading to an in-depth understanding of the Japanese market and culture

    Investment Approach

    From a universe of Japanese stocks with market capitalization in the bottom 20%, the Hennessy Japan Small Cap Fund seeks companies with time-tested business models and exceptional management trading at attractive valuations. Focusing on sustainable growth while limiting the downside, the Portfolio Managers seek companies that exhibit:

    - A well-capitalized balance sheet with little debt

    - Durable competitive advantage

    - High return on equity

    - Above average earnings growth rate, which is sustainable and predictable

    - Strong cash flow generation 

    - Value gap between intrinsic value and market price

    The portfolio is limited to the Managers’ best ideas and is unconfined to benchmarks.

    Portfolio Managers

    The Fund is sub-advised by Tokyo-based SPARX Asset Management Co., Ltd.  Since its founding in 1989, SPARX has grown to become the largest independent asset manager in Japan.

    CMA designates Chartered Member of the Security Analysts Association of Japan.

    “Our extensive research allows us to uncover hidden opportunities among small-cap Japanese companies.”

    - Tad Fujimura

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  • Insights & News

  • Performance

    Daily Pricing & Performance

    as of 9/27/21
    • Investor Class (HJPSX)
      • NAV

        $18.86

      • $ Change

        -$0.15

      • % Change

        -0.79%

      • YTD

        4.49%

    • Institutional Class (HJSIX)
      • NAV

        $18.67

      • $ Change

        -$0.15

      • % Change

        -0.80%

      • YTD

        4.77%

    Average Annualized Total Return

    as of 8/31/21
    Name 1 Mo YTD 1 yr 3 yr 5 yr 10 yr Since Inception (8/31/07)
    Investor Class (HJPSX) -0.66% -0.39% 20.07% 5.53% 12.95% 12.79% 9.99%
    Institutional Class (HJSIX) -0.67% -0.17% 20.50% 5.95% 13.36% 13.04% 10.16%
    Russell/Nomura Small Cap Index 2.40% 3.89% 15.69% 2.81% 8.36% 8.47% 5.96%
    Tokyo Stock Price Index 3.07% 3.28% 19.49% 6.96% 9.23% 8.22% 3.98%

    Please swipe to view table

    as of 6/30/21
    Name QTR YTD 1 yr 3 yr 5 yr 10 yr Since Inception (8/31/07)
    Investor Class (HJPSX) -2.37% -1.88% 21.42% 4.76% 12.73% 12.46% 10.00%
    Institutional Class (HJSIX) -2.29% -1.68% 21.87% 5.21% 13.18% 12.70% 10.17%
    Russell/Nomura Small Cap Index -0.75% 2.25% 19.29% 1.63% 8.41% 8.28% 5.91%
    Tokyo Stock Price Index -0.77% 1.30% 23.78% 6.34% 10.06% 7.56% 3.89%

    Please swipe to view table

    Hypothetical Growth of $10,000

    as of 8/31/2021

    Value of $10,000 invested between 8/31/2020 and 8/31/2021

    Japan Small Cap Fund (HJPSX) $12,006
    Japan Small Cap Fund (HJSIX) $12,050
    Russell/Nomura Small Cap Index $11,569
    Tokyo Stock Price Index $11,981

    Value of $10,000 invested between 8/31/2018 and 8/31/2021

    Japan Small Cap Fund (HJPSX) $11,754
    Japan Small Cap Fund (HJSIX) $11,893
    Russell/Nomura Small Cap Index $10,685
    Tokyo Stock Price Index $12,271

    Value of $10,000 invested between 8/31/2016 and 8/31/2021

    Japan Small Cap Fund (HJPSX) $18,382
    Japan Small Cap Fund (HJSIX) $18,720
    Russell/Nomura Small Cap Index $14,687
    Tokyo Stock Price Index $15,592

    Value of $10,000 invested between 8/31/2011 and 8/31/2021

    Japan Small Cap Fund (HJPSX) $33,330
    Japan Small Cap Fund (HJSIX) $34,070
    Russell/Nomura Small Cap Index $22,177
    Tokyo Stock Price Index $22,097

    Value of $10,000 invested between 8/31/2007 and 8/31/2021

    Japan Small Cap Fund (HJPSX) $37,938
    Japan Small Cap Fund (HJSIX) $38,780
    Russell/Nomura Small Cap Index $22,108
    Tokyo Stock Price Index $17,321

    This data illustrates the performance of a hypothetical $10,000 investment made in the Fund for the period noted, and it assumes reinvestment of dividends and capital gains. This chart does not imply future performance.

    Calendar Year Total Returns

      2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
    Investor Class (HJPSX)
    -4.17 12.76 33.17 8.75 11.59 8.52 49.58 -12.51 19.95 13.43
    Institutional Class (HJSIX)
    -4.17 12.76 33.17 8.75 11.81 8.62 50.27 -12.13 20.42 13.88
    Russell/Nomura Small Cap Index
    -2.34 6.37 25.28 -0.50 15.49 7.74 35.34 -18.12 18.34 4.97
    Tokyo Stock Price Index
    -11.82 8.06 26.48 -2.95 10.97 3.69 26.56 -14.30 19.67 13.38
    Year
    Investor Class (HJPSX)
    Institutional Class (HJSIX)
    Russell/Nomura Small Cap Index
    Tokyo Stock Price Index
    2010 23.99% 23.99% 17.73% 14.44%
    2009 13.88% 13.88% 6.60% 4.69%
    2008 -22.31% -22.31% -16.28% -25.50%

    Please swipe to view table

    Returns-Based Statistics
    Relative to Russell/Nomura Small Cap Index

    as of 6/30/21
    Investor Class (HJPSX)
    Type 3 yr 5 yr 10 yr
    Alpha 3.19 4.04 4.42
    Beta 1.01 1.00 0.93
    Upside Capture 110.64 109.45 105.13
    Downside Capture 97.07 88.66 81.48
    Institutional Class (HJSIX)
    Type 3 yr 5 yr 10 yr
    Alpha 3.62 4.45 4.64
    Beta 1.01 1.00 0.93
    Upside Capture 111.61 110.48 105.65
    Downside Capture 96.12 87.60 80.76

    Alpha measures the fund’s excess return relative to the return of the benchmark. Beta measures the volatility of the fund compared to that of the benchmark. The beta of the benchmark is 1.00. Capture ratios measure the fund’s overall performance in up markets (positive return periods) and down markets (negative return periods).

    Sharpe Ratio

    as of 6/30/21
    Type 3 yr 5 yr 10 yr
    Investor Class (HJPSX) 0.28 0.79 0.88
    Institutional Class (HJSIX) 0.30 0.82 0.90
    Russell/Nomura Small Cap Index 0.11 0.56 0.61
    Japan Stock Category Average 0.35 0.67 0.59

    Sharpe Ratio is a measure of risk-adjusted return, reflecting the average return earned in excess of the risk-free rate per unit of volatility.

    Standard Deviation

    as of 6/30/21
    Type 3 yr 5 yr 10 yr
    Investor Class (HJPSX) 17.83 15.11 13.70
    Institutional Class (HJSIX) 17.82 15.12 13.70
    Russell/Nomura Small Cap Index 16.64 14.11 13.44
    Japan Stock Category Average 15.60 12.83 13.48

    Standard deviation is a statistical measure of the historical volatility of a mutual fund or portfolio.

    Fund Expenses

    • Investor Class (HJPSX)
      • Gross expense ratio

        1.55%

    • Institutional Class (HJSIX)
      • Gross expense ratio

        1.13%

    Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted.

    Morningstar Proprietary Ratings reflect risk-adjusted performance as of 6/30/21. The Morningstar Rating for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Institutional Class (HJSIX) received 2 stars for the three-year, 5 stars for the five-year and 5 stars for the ten-year periods ended 6/30/21 / Investor Class (HJPSX) received 2 stars for the three-year, 4 stars for the five-year and 5 stars for the ten-year periods ended 6/30/21 among 35, 29 and 21 Japan Stock Funds, respectively. Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in distribution percentage. The 10-year Morningstar Rating is an extended performance rating based on the historically adjusted returns prior to the inception date of the Institutional Class share class (6/15/15) and reflects the historical performance, fees, and expenses of the Investor share class.

    Each Morningstar category average represents a universe of funds with similar objectives. The Morningstar Style Box reveals the fund's investment style as of 6/30/21. The vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend, or growth). ©Morningstar, Inc. All Rights Reserved. Past performance is no guarantee of future results.

    The performance shown for Institutional Class shares / HJSIX prior to 6/15/15 represents the performance of Investor Class shares of the Fund and includes expenses that are not applicable to and are higher than those of Institutional Class shares.

    The Russell/Nomura Small Cap Index represents the universe of small capitalization companies in the Japanese equity markets. The Tokyo Stock Price Index (TOPIX) is a market capitalization-weighted index of all companies listed on the First Section of the Tokyo Stock Exchange. One cannot invest directly in an index.

    The returns of the Russell/Nomura Small Cap and TOPIX indices are presented in U.S. Dollar terms.

    Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell® is a trademark of Russell. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes or Russell ratings or underlying data, and no party may rely on any Russell Indexes or Russell ratings or underlying data contained in this communication. No further distribution of Russell data is permitted without Russell’s express written consent. Russell does not promote, sponsor, or endorse the content of this communication.

    Fund holdings and sector allocations are subject to change and should not be considered a recommendation to buy or sell any security.

  • Portfolio

    Portfolio Characteristics

    as of 6/30/21
    Inception Date (HJPSX) 8/31/07
    Inception Date (HJSIX) 6/15/15
    Total Fund Assets $104 Million
    Active Share vs. Russell/Nomura Small Cap Index 95%
    Portfolio Turnover 31%
    Median Market Cap $1.0 Billion
    Median Price/Earnings 15.4x
    Median Price/Book 1.4x

    Price/Earnings measures a stock’s price per share compared to earnings. Price/Book measures a stock’s price per share to book value. Portfolio Turnover and Price/Earnings shown reflect the trailing 12-month period.

    Sector Weighting

    as of 6/30/21
    Fund Russell/Nomura Small Cap Index Difference
    Industrials 32.6% 26.2% +6.4%
    Information Technology 21.1% 14.4% +6.7%
    Consumer Discretionary 12.7% 16.9% -4.2%
    Materials 7.8% 10.6% -2.9%
    Financials 4.4% 8.3% -3.9%
    Consumer Staples 4.4% 8.1% -3.7%
    Real Estate 2.2% 1.8% +0.5%
    Energy 2.2% 1.0% +1.2%
    Utilities 1.8% 1.2% +0.6%
    Health Care 1.7% 6.4% -4.7%
    Communication Services 1.0% 5.1% -4.2%
    Cash & Other 8.1%

    Portfolio Holdings

    Top 10 Holdings

    as of 6/30/21
    % of Net Assets
    Top 10 Holdings Ticker Current Vs. 1Q21 Vs. 2Q20 10-Year Holdings History (%) Time Held
    Musashi Seimitsu Industry Co. Ltd. 7220 2.38% +0.40% +0.88%
    1 Year
    SBS Holdings, Inc. 2384 2.26% +0.22% +0.07%
    11 Years
    Iwatani Corp. 8088 2.20% -0.25% +0.61%
    1 Year
    Digital Garage, Inc. 4819 2.14% +0.04% +0.25%
    5 Years
    Takeei Corp. 2151 2.13% +0.22% -0.20%
    6 Years
    Mirait Holdings Corp. 1417 2.09% +0.07% +0.02%
    4 Years
    Seiren Co., Ltd. 3569 2.02% +0.07% +0.42%
    8 Years
    Hito Communications Holdings, Inc. 4433 1.98% +0.08% +0.33%
    2 Years
    Sanyo Chemical Industries, Ltd. 4471 1.96% +0.13% +0.17%
    2 Years
    Yamaichi Electronics Co., Ltd. 6941 1.94% +1.94% +1.94%
    < 1 Year
    Total as % of Net Assets 21.1%

    Please swipe to view table

    Total Holdings: 62

    as of 6/30/21
    % of Net Assets
    Equity Holdings Ticker Current Vs. 1Q21 Vs. 2Q20 10-Year Holdings History (%) Time Held
    Musashi Seimitsu Industry Co. Ltd. 7220 2.38% +0.40% +0.88%
    1 Year
    SBS Holdings, Inc. 2384 2.26% +0.22% +0.07%
    11 Years
    Iwatani Corp. 8088 2.20% -0.25% +0.61%
    1 Year
    Digital Garage, Inc. 4819 2.14% +0.04% +0.25%
    5 Years
    Takeei Corp. 2151 2.13% +0.22% -0.20%
    6 Years
    Mirait Holdings Corp. 1417 2.09% +0.07% +0.02%
    4 Years
    Seiren Co., Ltd. 3569 2.02% +0.07% +0.42%
    8 Years
    Hito Communications Holdings, Inc. 4433 1.98% +0.08% +0.33%
    2 Years
    Sanyo Chemical Industries, Ltd. 4471 1.96% +0.13% +0.17%
    2 Years
    Yamaichi Electronics Co., Ltd. 6941 1.94% +1.94% +1.94%
    < 1 Year
    Nihon Unisys, Ltd. 8056 1.93% +0.56% -0.34%
    6 Years
    Nippon Koei Co., Ltd. 1954 1.93% +0.20% -0.22%
    4 Years
    Benefit One, Inc. 2412 1.91% +0.16% -0.29%
    6 Years
    Hanwa Co., Ltd. 8078 1.91% -0.38% -0.21%
    8 Years
    Transcosmos, Inc. 9715 1.89% +0.28% -0.51%
    2 Years
    Mimaki Engineering Co., Ltd. 6638 1.86% +0.57% +1.00%
    5 Years
    Tocalo Co., Ltd. 3433 1.83% -0.22% -0.35%
    9 Years
    Rengo Co., Ltd. 3941 1.79% +0.53% +1.79%
    < 1 Year
    Senko Group Holdings Co., Ltd. 9069 1.79% -0.09% -0.14%
    2 Years
    Macnica Fuji Electronics Holdings 3132 1.78% +0.17% -0.29%
    3 Years
    EF-ON, Inc. 9514 1.77% -0.35% -0.16%
    3 Years
    Saizeriya Co., Ltd. 7581 1.77% +0.45% +0.34%
    3 Years
    Kito Corp. 6409 1.76% -0.33% -0.34%
    8 Years
    Sato Holdings Corp. 6287 1.75% -0.26% -0.27%
    4 Years
    Fuji Corp. 6134 1.70% -0.53% -0.05%
    1 Year
    Ship Healthcare Holdings, Inc. 3360 1.67% -0.51% -0.19%
    5 Years
    Benesse Holdings, Inc. 9783 1.67% +0.79% +1.67%
    < 1 Year
    Daihen Corp. 6622 1.64% -0.23% -0.61%
    5 Years
    Mitsubishi Logisnext Co., Ltd. 7105 1.63% -0.39% -0.12%
    4 Years
    Japan Pile Corp. 5288 1.63% -0.23% -0.42%
    6 Years
    Tokyo Ohka Kogyo Co., Ltd. 4186 1.62% +0.27% +0.05%
    2 Years
    Siix Corp. 7613 1.58% +0.45% +1.09%
    1 Year
    AEON Financial Service Co., Ltd. 8570 1.56% -0.36% +0.02%
    1 Year
    Elecom Co., Ltd. 6750 1.56% +0.03% -0.51%
    8 Years
    Bell System24 Holdings, Inc. 6183 1.55% -0.27% -0.58%
    5 Years
    Nishimoto Co., Ltd. 9260 1.47% -0.43% +0.02%
    3 Years
    Towa Corp. 6315 1.47% -0.03% -0.55%
    2 Years
    Cosmos Pharmaceutical Corp. 3349 1.44% +0.27% -0.61%
    2 Years
    Creek & River Co., Ltd. 4763 1.41% +0.16% +1.41%
    < 1 Year
    NGK Spark Plug Co. Ltd. 5334 1.40% +0.09% +1.40%
    1 Year
    Star Mica Holdings Co. Ltd. 2975 1.30% -0.02% -0.42%
    2 Years
    The Musashino Bank, Ltd. 8336 1.25% -0.05% +1.25%
    < 1 Year
    Nojima Corp. 7419 1.24% +0.38% -1.01%
    2 Years
    Rorze Corp. 6323 1.24% +0.30% +0.48%
    1 Year
    Tanseisha Co., Ltd. 9743 1.23% +0.56% +1.23%
    < 1 Year
    Poletowin Pitcrew Holdings, Inc. 3657 1.23% -0.14% +1.23%
    1 Year
    Nihon Flush Co., Ltd. 7820 1.20% -0.21% -0.86%
    3 Years
    Nichiha Corp. 7943 1.04% -0.04% +1.04%
    1 Year
    Nippon Signal Company Ltd. 6741 0.96% -0.24% -0.97%
    3 Years
    Septeni Holdings Co., Ltd. 4293 0.96% -0.08% +0.46%
    1 Year
    Tosei Corp. 8923 0.93% -0.13% -0.34%
    2 Years
    METAWATER Co., Ltd. 9551 0.92% -0.66% -1.21%
    3 Years
    LIFENET Insurance Co. 7157 0.88% -0.48% -1.58%
    4 Years
    Pacific Industrial Co., Ltd. 7250 0.83% -0.68% -1.10%
    3 Years
    Matsuoka Corp. 3611 0.83% -0.24% -0.98%
    2 Years
    Yoshimura Food Holdings 2884 0.81% -0.30% +0.81%
    1 Year
    Kyoei Steel, Ltd. 5440 0.75% +0.75% +0.75%
    < 1 Year
    Aruhi Corp. 7198 0.75% +0.75% +0.75%
    < 1 Year
    Nippn Corp. 2001 0.71% -0.23% +0.71%
    1 Year
    Sac's Bar Holdings, Inc. 9990 0.60% +0.60% +0.60%
    < 1 Year
    KAWADA TECHNOLOGIES, Inc. 3443 0.46% -1.04% -1.36%
    2 Years
    #N/A 0 0.00% 0.00% 0.00%
    < 1 Year
    Total as % of Net Assets 91.9%
    Cash & Other Holdings % of Net Assets
    Cash & Other 8.1%
    Total as % of Net Assets 8.1%

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    Country Allocation

    as of 6/30/21
    • Japan

      91.9%

    • Cash & Other

      8.1%

    Japan 91.9%
    Cash & Other 8.1%
  • Distributions

    The Hennessy Japan Small Cap Fund pays capital gains (if any) once annually, usually in December. Ordinary income distributions (if any) are paid annually, usually in December.

    Date Paid Income Short-Term Gain Long-Term Gain Total Per Share Reinvest Price
    12/29/2020 $0.04183 -- -- $0.04183 $18.01
    12/27/2019 $0.20725 -- -- $0.20725 $15.92
    12/07/2018 -- $0.00020 $0.46558 $0.46578 $14.25
    12/27/2017 $0.05212 -- -- $0.05212 $15.86
    12/07/2017 -- -- $0.27962 $0.27962 $15.28
    12/28/2016 $0.12049 -- -- $0.12049 $10.88
    12/07/2016 -- $0.10008 -- $0.10008 $11.08
    12/09/2015 -- -- $0.34086 $0.34086 $10.05
    12/08/2014 -- $0.21469 $0.69576 $0.91045 $9.42
    12/10/2013 -- $1.75115 $0.76336 $2.51451 $9.35
    12/07/2012 -- -- $2.34302 $2.34302 $8.79
    12/27/2011 $0.04299 -- -- $0.04299 $9.96
    12/29/2009 $0.41788 -- -- $0.41788 $8.76
    12/18/2007 $0.07000 -- -- $0.07000 $10.16

    Please swipe to view table

    Past performance is not a guarantee of future results.

    Download historical distributions and NAVs
    Date Paid Income Short-Term Gain Long-Term Gain Total Per Share Reinvest Price
    12/29/2020 $0.11625 -- -- $0.11625 $17.78
    12/27/2019 $0.26554 -- -- $0.26554 $15.72
    12/27/2018 $0.04450 -- -- $0.04450 $13.14
    12/07/2018 -- $0.00020 $0.45707 $0.45727 $14.11
    12/27/2017 $0.08096 -- -- $0.08096 $15.64
    12/07/2017 -- -- $0.27518 $0.27518 $15.09
    12/28/2016 $0.09525 -- -- $0.09525 $10.71
    12/07/2016 -- $0.33984 -- $0.33984 $10.88
    12/09/2015 -- -- $0.34170 $0.34170 $10.07

    Please swipe to view table

    Past performance is not a guarantee of future results.

    Download historical distributions and NAVs
  • Fund Documents

    Download PDF View Online
    Japan Small Cap Fund Documents
    Fact Sheet
    Portfolio Perspective View
    Portfolio Updates
    Japan Small Cap Fund Portfolio Update - September 2021 View
    Japan Small Cap Fund Portfolio Update - August 2021 View
    Japan Small Cap Fund Portfolio Update - July 2021 View
    Japan Small Cap Fund Portfolio Update - June 2021 View
    Summary Prospectus
    Full Prospectus
    Statement of Additional Information
    Japan Small Cap Fund Shareholder Reports and Quarterly Holdings
    Q1 Holdings
    Semi-Annual Report
    Q3 Holdings
    Annual Report

    Paper copies of the annual and semi-annual reports will no longer be sent by mail unless shareholders specifically request paper copies. You may elect to receive paper copies free of charge by calling U.S. Bank Global Fund Services at 1-800-261-6950 or, if you own shares through a financial intermediary, by contacting your financial intermediary.