• 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
    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 2/28/24
    • Investor Class (HJPSX)
      • NAV

        $16.43

      • $ Change

        $0.09

      • % Change

        0.55%

      • YTD

        0.00%

    • Institutional Class (HJSIX)
      • NAV

        $16.18

      • $ Change

        $0.08

      • % Change

        0.50%

      • YTD

        0.00%

    Average Annualized Total Return

    as of 1/31/24
    Name 1 Mo YTD 1 yr 3 yr 5 yr 10 yr Since Inception (8/31/07)
    Investor Class (HJPSX) -1.52% -1.52% 7.57% -2.11% 3.60% 7.73% 7.89%
    Institutional Class (HJSIX) -1.48% -1.48% 8.00% -1.73% 4.00% 8.08% 8.10%
    Russell/Nomura Small Cap Index -0.25% -0.25% 10.08% -0.16% 3.05% 5.37% 4.73%
    Tokyo Stock Price Index 3.98% 3.98% 17.81% 2.81% 6.48% 6.22% 3.63%

    Please swipe to view table

    as of 12/31/23
    Name QTR YTD 1 yr 3 yr 5 yr 10 yr Since Inception (8/31/07)
    Investor Class (HJPSX) 9.52% 16.29% 16.29% -2.47% 4.77% 8.08% 8.03%
    Institutional Class (HJSIX) 9.70% 16.74% 16.74% -2.09% 5.18% 8.42% 8.24%
    Russell/Nomura Small Cap Index 8.06% 15.39% 15.39% -0.36% 4.21% 5.36% 4.77%
    Tokyo Stock Price Index 8.00% 20.04% 20.04% 1.09% 6.99% 5.43% 3.40%

    Please swipe to view table

    Hypothetical Growth of $10,000

    as of 1/31/2024

    Value of $10,000 invested between 1/31/2023 and 1/31/2024

    Japan Small Cap Fund (HJPSX) $10,757
    Japan Small Cap Fund (HJSIX) $10,800
    Russell/Nomura Small Cap Index $11,008
    Tokyo Stock Price Index $11,781

    Value of $10,000 invested between 1/31/2021 and 1/31/2024

    Japan Small Cap Fund (HJPSX) $9,379
    Japan Small Cap Fund (HJSIX) $9,491
    Russell/Nomura Small Cap Index $9,952
    Tokyo Stock Price Index $10,882

    Value of $10,000 invested between 1/31/2019 and 1/31/2024

    Japan Small Cap Fund (HJPSX) $11,933
    Japan Small Cap Fund (HJSIX) $12,168
    Russell/Nomura Small Cap Index $11,620
    Tokyo Stock Price Index $13,709

    Value of $10,000 invested between 1/31/2014 and 1/31/2024

    Japan Small Cap Fund (HJPSX) $21,064
    Japan Small Cap Fund (HJSIX) $21,746
    Russell/Nomura Small Cap Index $16,592
    Tokyo Stock Price Index $18,304

    Value of $10,000 invested between 8/31/2007 and 1/31/2024

    Japan Small Cap Fund (HJPSX) $34,791
    Japan Small Cap Fund (HJSIX) $35,917
    Russell/Nomura Small Cap Index $21,002
    Tokyo Stock Price Index $17,990

    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

      2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
    Investor Class (HJPSX)
    8.75 11.59 8.52 49.58 -12.51 19.95 13.43 -4.65 -16.34 16.29
    Institutional Class (HJSIX)
    8.75 11.81 8.62 50.27 -12.13 20.42 13.88 -4.30 -15.99 16.74
    Russell/Nomura Small Cap Index
    -0.50 15.49 7.74 35.34 -18.12 18.34 4.97 -2.81 -11.78 15.39
    Tokyo Stock Price Index
    -2.95 10.97 3.69 26.56 -14.30 19.67 13.38 0.96 -14.87 20.04
    Year
    Investor Class (HJPSX)
    Institutional Class (HJSIX)
    Russell/Nomura Small Cap Index
    Tokyo Stock Price Index
    2013 33.17% 33.17% 25.28% 26.48%
    2012 12.76% 12.76% 6.37% 8.06%
    2011 -4.17% -4.17% -2.34% -11.82%
    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 12/31/23
    Investor Class (HJPSX)
    Type 3 yr 5 yr 10 yr
    Alpha -2.08 0.65 2.80
    Beta 0.99 1.02 0.96
    Upside Capture 85.86 100.47 102.64
    Downside Capture 97.15 97.86 87.79
    Institutional Class (HJSIX)
    Type 3 yr 5 yr 10 yr
    Alpha -1.69 1.04 3.12
    Beta 0.99 1.02 0.96
    Upside Capture 86.97 101.42 103.42
    Downside Capture 96.28 96.97 86.87

    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 12/31/23
    Type 3 yr 5 yr 10 yr
    Investor Class (HJPSX) -0.27 0.24 0.52
    Institutional Class (HJSIX) -0.24 0.27 0.55
    Russell/Nomura Small Cap Index -0.14 0.22 0.35
    Japan Stock Category Average 0.08 0.43 0.41

    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 12/31/23
    Type 3 yr 5 yr 10 yr
    Investor Class (HJPSX) 14.71 16.49 14.21
    Institutional Class (HJSIX) 14.71 16.49 14.21
    Russell/Nomura Small Cap Index 14.02 15.18 13.64
    Japan Stock Category Average 13.38 14.49 12.90

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

    Fund Expenses

    • Investor Class (HJPSX)
      • Gross expense ratio

        1.52%

    • Institutional Class (HJSIX)
      • Gross expense ratio

        1.12%

    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.

    Each Morningstar category average represents a universe of funds with similar objectives. The Morningstar Style Box reveals the fund's investment style as of 12/31/23. 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 12/31/23
    Inception Date (HJPSX) 8/31/07
    Inception Date (HJSIX) 6/15/15
    Total Fund Assets $111 Million
    Active Share vs. Russell/Nomura Small Cap Index 94%
    Portfolio Turnover 37%
    Median Market Cap $0.7 Billion
    Median Price/Earnings 14.1x
    Median Price/Book 1.1x

    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 12/31/23
    Fund Russell/Nomura Small Cap Index Difference
    Industrials 39.1% 25.4% +13.7%
    Consumer Discretionary 13.4% 15.8% -2.5%
    Information Technology 13.3% 14.1% -0.8%
    Materials 8.8% 11.3% -2.5%
    Health Care 5.3% 6.6% -1.3%
    Consumer Staples 4.7% 10.3% -5.5%
    Financials 3.8% 8.5% -4.7%
    Communication Services 3.2% 4.3% -1.2%
    Real Estate 2.5% 1.5% +0.9%
    Energy 1.0% 0.5% +0.5%
    Utilities 0.7% 1.7% -1.0%
    Cash & Other 4.5% % %

    Portfolio Holdings

    Top 10 Holdings

    as of 12/31/23
    % of Net Assets
    Top 10 Holdings Ticker Current Vs. 3Q23 Vs. 4Q22 10-Year Holdings History (%) Time Held
    Towa Corp. 6315 2.59% -0.50% +1.19%
    4 Years
    Daihen Corp. 6622 2.55% +0.65% +1.57%
    8 Years
    Nojima Corp. 7419 2.41% +0.70% +0.28%
    4 Years
    Takasago Thermal Engineering Corp. 1969 2.33% +0.33% +0.98%
    1 Year
    Nihon Kohden Corp. 6849 2.30% +0.48% +0.22%
    2 Years
    Tsukishima Holdings Co., Ltd. 6332 2.14% +0.13% +0.62%
    1 Year
    The Musashino Bank, Ltd. 8336 2.13% +0.03% -0.22%
    3 Years
    Tadano Ltd. 6395 2.08% -0.06% +0.48%
    2 Years
    Tokyo Ohka Kogyo Co., Ltd. 4186 2.06% +0.19% +0.66%
    4 Years
    Amada Co., Ltd. 6113 2.04% +0.05% +0.42%
    1 Year
    Total as % of Net Assets 22.63%

    Please swipe to view table

    Total Holdings: 64

    as of 12/31/23
    % of Net Assets
    Equity Holdings Ticker Current Vs. 3Q23 Vs. 4Q22 10-Year Holdings History (%) Time Held
    Towa Corp. 6315 2.59% -0.50% +1.19%
    4 Years
    Daihen Corp. 6622 2.55% +0.65% +1.57%
    8 Years
    Nojima Corp. 7419 2.41% +0.70% +0.28%
    4 Years
    Takasago Thermal Engineering Corp. 1969 2.33% +0.33% +0.98%
    1 Year
    Nihon Kohden Corp. 6849 2.30% +0.48% +0.22%
    2 Years
    Tsukishima Holdings Co., Ltd. 6332 2.14% +0.13% +0.62%
    1 Year
    The Musashino Bank, Ltd. 8336 2.13% +0.03% -0.22%
    3 Years
    Tadano Ltd. 6395 2.08% -0.06% +0.48%
    2 Years
    Tokyo Ohka Kogyo Co., Ltd. 4186 2.06% +0.19% +0.66%
    4 Years
    Amada Co., Ltd. 6113 2.04% +0.05% +0.42%
    1 Year
    Japan Pile Corp. 5288 1.94% +0.10% -0.16%
    8 Years
    Saizeriya Co., Ltd. 7581 1.93% -0.38% +0.06%
    6 Years
    Penta-Ocean Construction Co., Ltd. 1893 1.92% -0.13% +0.29%
    1 Year
    Cosmos Pharmaceutical Corp. 3349 1.91% +1.91% +1.91%
    < 1 Year
    Maxell, Ltd. 6810 1.89% -0.04% +0.08%
    1 Year
    Kyudenko Corporation 1959 1.87% +0.51% +1.87%
    < 1 Year
    Keihan Holdings Co., Ltd. 9045 1.84% -0.04% +0.84%
    1 Year
    Nishimoto Co., Ltd. 9260 1.83% +0.09% +0.09%
    5 Years
    Siix Corp. 7613 1.82% +0.01% -0.54%
    3 Years
    Tosei Corp. 8923 1.80% +0.14% +0.18%
    5 Years
    Integrated Design & Engineering Holdings Co., Ltd. 9161 1.72% +0.03% +1.72%
    < 1 Year
    Ship Healthcare Holdings, Inc. 3360 1.70% +0.18% -0.44%
    7 Years
    Maeda Kosen Co., Ltd. 7821 1.69% +0.10% +1.69%
    1 Year
    Mimaki Engineering Co., Ltd. 6638 1.68% +0.31% +0.28%
    8 Years
    Tanseisha Co., Ltd. 9743 1.66% -0.04% +0.09%
    3 Years
    Nishi-Nippon Financial Holdings, Inc. 7189 1.65% +0.01% +1.65%
    < 1 Year
    Mitsubishi Logisnext Co., Ltd. 7105 1.61% +0.05% +0.50%
    7 Years
    J Front Retailing Co., Ltd. 3086 1.60% -0.22% -0.07%
    1 Year
    Nissei ASB Machine Co., Ltd. 6284 1.53% +0.02% -0.43%
    1 Year
    Aeon Fantasy Co., Ltd. 4343 1.50% -0.24% +0.16%
    1 Year
    SBS Holdings, Inc. 2384 1.50% -0.13% -0.13%
    14 Years
    TRE Holdings Corp. 9247 1.49% -0.06% -0.31%
    2 Years
    WingArc1st, Inc. 4432 1.42% +0.30% +0.82%
    1 Year
    Topre Corp. 5975 1.38% +0.19% +1.38%
    < 1 Year
    Onward Holdings Co., Ltd. 8016 1.36% -0.05% +1.36%
    < 1 Year
    Musashi Seimitsu Industry Co. Ltd. 7220 1.36% -0.38% -0.45%
    4 Years
    Nichiha Corp. 7943 1.35% +0.07% +0.01%
    3 Years
    Creek & River Co., Ltd. 4763 1.34% +0.11% -0.45%
    3 Years
    NEC Networks & System Integrated 1973 1.33% +0.29% +1.33%
    1 Year
    Nippon Signal Company Ltd. 6741 1.31% +0.10% -0.59%
    5 Years
    PeptiDream, Inc. 4587 1.27% -0.04% +0.40%
    1 Year
    Macnica Holdings, Inc. 3132 1.23% +0.12% -0.44%
    6 Years
    Tsubakimoto Chain Co. 6371 1.22% -0.77% -0.55%
    2 Years
    Toyobo Co., Ltd. 3101 1.20% +0.45% +1.20%
    < 1 Year
    Tocalo Co., Ltd. 3433 1.19% +0.74% +0.30%
    11 Years
    Raksul, Inc. 4384 1.19% +0.08% +1.19%
    < 1 Year
    Glory Ltd. 6457 1.14% -0.28% -0.41%
    2 Years
    ValueCommerce Co., Ltd. 2491 1.11% +0.20% -0.38%
    1 Year
    Hanwa Co., Ltd. 8078 1.09% +0.10% 0.00%
    11 Years
    Furukawa Co., Ltd. 5715 1.08% +0.37% +1.08%
    < 1 Year
    Kyoei Steel, Ltd. 5440 1.07% -0.86% -0.75%
    2 Years
    IMAGICA GROUP, Inc. 6879 1.05% +0.13% +0.06%
    1 Year
    Gakujo Co., Ltd. 2301 1.05% +1.05% +1.05%
    < 1 Year
    Nittoku Co., Ltd. 6145 1.02% -0.18% -0.37%
    1 Year
    Ariake Japan Co., Ltd. 2815 1.00% -0.12% +1.00%
    < 1 Year
    Macromill, Inc. 3978 1.00% +0.11% -0.44%
    2 Years
    Treasure Factory Co., Ltd. 3093 0.98% +0.98% +0.98%
    < 1 Year
    Iwatani Corp. 8088 0.96% -1.26% -1.21%
    4 Years
    Daicel Corporation 4202 0.84% +0.10% +0.84%
    < 1 Year
    Matsuoka Corp. 3611 0.80% -0.51% +0.18%
    5 Years
    EF-ON, Inc. 9514 0.70% -0.04% -0.04%
    6 Years
    Star Mica Holdings Co. Ltd. 2975 0.67% +0.04% -1.06%
    4 Years
    Trusco Nakayama Corp. 9830 0.62% +0.62% +0.62%
    < 1 Year
    Nabtesco Corp. 6268 0.49% +0.49% +0.49%
    < 1 Year
    Total as % of Net Assets 95.5%
    Cash & Other Holdings % of Net Assets
    Cash & Other 4.5%
    Total as % of Net Assets 4.5%

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    Country Allocation

    as of 12/31/23
    • Japan

      95.5%

    • Cash & Other

      4.5%

    Japan 95.5%
    Cash & Other 4.5%
  • 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
    12/27/2023 $0.13935 -- -- $0.13935 $16.24
    12/28/2022 $0.08640 -- -- $0.08640 $13.90
    12/29/2021 $0.00241 -- -- $0.00241 $17.18
    12/07/2021 -- -- $0.07094 $0.07094 $17.75
    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
    12/27/2023 $0.19653 -- -- $0.19653 $16.00
    12/28/2022 $0.16327 -- -- $0.16327 $13.68
    12/29/2021 $0.08562 -- -- $0.08562 $16.94
    12/07/2021 -- -- $0.07028 $0.07028 $17.58
    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 - January 2024 View
    Japan Small Cap Fund Portfolio Update - December 2023 View
    Japan Small Cap Fund Portfolio Update - November 2023 View
    Japan Small Cap Fund Portfolio Update - October 2023 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

    Currently, paper copies of the annual and semi-annual reports are not 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.

    **Please note the upcoming change to shareholder report delivery.**

    After July 24, 2024, shareholder reports will be sent by mail unless a shareholder has elected or elects to receive reports electronically via e-delivery. To sign up for e-delivery, please visit My Account. https://www.hennessyfunds.com/account or 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.