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Overview
Hennessy Japan Small Cap Fund
Actively managed, the Fund maintains a relatively concentrated portfolio of Japanese small-cap companies.
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
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Performance
Daily Pricing & Performance
as of 3/22/23-
Investor Class (HJPSX)
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NAV
$14.83
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$ Change
$0.04
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% Change
0.27%
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YTD
4.07%
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Institutional Class (HJSIX)
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NAV
$14.61
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$ Change
$0.04
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% Change
0.27%
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YTD
4.13%
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Average Annualized Total Return
as of 2/28/23Name 1 Mo YTD 1 yr 3 yr 5 yr 10 yr Since Inception (8/31/07) Investor Class (HJPSX) -2.97% 3.30% -8.34% 4.01% -0.94% 9.28% 7.66% Institutional Class (HJSIX) -2.95% 3.35% -8.01% 4.42% -0.54% 9.59% 7.85% Russell/Nomura Small Cap™ Index -3.46% 0.96% -7.11% 3.08% -3.04% 5.64% 4.14% Tokyo Stock Price Index -3.63% 2.11% -8.25% 3.93% -0.11% 5.61% 2.52% as of 12/31/22Name QTR YTD 1 yr 3 yr 5 yr 10 yr Since Inception (8/31/07) Investor Class (HJPSX) 8.46% -16.34% -16.34% -3.28% -1.03% 9.55% 7.52% Institutional Class (HJSIX) 8.54% -15.99% -15.99% -2.90% -0.63% 9.86% 7.71% Russell/Nomura Small Cap™ Index 11.30% -11.78% -11.78% -3.45% -2.70% 6.23% 4.11% Tokyo Stock Price Index 13.28% -14.87% -14.87% -0.82% 0.01% 5.99% 2.40% Hypothetical Growth of $10,000
as of 2/28/2023Value of $10,000 invested between 2/28/2022 and 2/28/2023
Japan Small Cap Fund (HJPSX) $9,166 Japan Small Cap Fund (HJSIX) $9,199 Russell/Nomura Small Cap™ Index $9,289 Tokyo Stock Price Index $9,175 Value of $10,000 invested between 2/29/2020 and 2/28/2023
Japan Small Cap Fund (HJPSX) $11,251 Japan Small Cap Fund (HJSIX) $11,385 Russell/Nomura Small Cap™ Index $10,952 Tokyo Stock Price Index $11,241 Value of $10,000 invested between 2/28/2018 and 2/28/2023
Japan Small Cap Fund (HJPSX) $9,538 Japan Small Cap Fund (HJSIX) $9,733 Russell/Nomura Small Cap™ Index $8,426 Tokyo Stock Price Index $9,960 Value of $10,000 invested between 2/28/2013 and 2/28/2023
Japan Small Cap Fund (HJPSX) $24,285 Japan Small Cap Fund (HJSIX) $24,977 Russell/Nomura Small Cap™ Index $17,016 Tokyo Stock Price Index $17,278 Value of $10,000 invested between 8/31/2007 and 2/28/2023
Japan Small Cap Fund (HJPSX) $31,382 Japan Small Cap Fund (HJSIX) $32,276 Russell/Nomura Small Cap™ Index $18,420 Tokyo Stock Price Index $14,717 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
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Investor Class (HJPSX) 33.17 8.75 11.59 8.52 49.58 -12.51 19.95 13.43 -4.65 -16.34 Institutional Class (HJSIX) 33.17 8.75 11.81 8.62 50.27 -12.13 20.42 13.88 -4.30 -15.99 Russell/Nomura Small Cap™ Index 25.28 -0.50 15.49 7.74 35.34 -18.12 18.34 4.97 -2.81 -11.78 Tokyo Stock Price Index 26.48 -2.95 10.97 3.69 26.56 -14.30 19.67 13.38 0.96 -14.87 Year Investor Class (HJPSX) Institutional Class (HJSIX) Russell/Nomura Small Cap™ Index Tokyo Stock Price Index 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% Returns-Based Statistics
Relative to Russell/Nomura Small Cap™ Indexas of 12/31/22Investor Class (HJPSX)Type 3 yr 5 yr 10 yr Alpha 0.68 1.86 3.42 Beta 1.06 1.01 0.96 Upside Capture 100.37 101.83 104.28 Downside Capture 99.62 94.15 86.58 Institutional Class (HJSIX)Type 3 yr 5 yr 10 yr Alpha 1.08 2.26 3.70 Beta 1.06 1.01 0.96 Upside Capture 101.33 102.98 104.94 Downside Capture 98.90 93.38 85.75 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 12/31/22Type 3 yr 5 yr 10 yr Investor Class (HJPSX) -0.13 -0.06 0.65 Institutional Class (HJSIX) -0.11 -0.03 0.67 Russell/Nomura Small Cap™ Index -0.17 -0.18 0.44 Japan Stock Category Average 0.00 -0.02 0.49 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 12/31/22Type 3 yr 5 yr 10 yr Investor Class (HJPSX) 19.11 16.78 14.49 Institutional Class (HJSIX) 19.11 16.79 14.49 Russell/Nomura Small Cap™ Index 17.07 15.78 14.06 Japan Stock Category Average 16.32 14.94 13.54 Standard deviation is a statistical measure of the historical volatility of a mutual fund or portfolio.
Fund Expenses
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Investor Class (HJPSX)
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Gross expense ratio
1.58%
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Institutional Class (HJSIX)
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Gross expense ratio
1.18%
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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 12/31/22. 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.
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Portfolio
Portfolio Characteristics
as of 12/31/22Inception Date (HJPSX) 8/31/07 Inception Date (HJSIX) 6/15/15 Total Fund Assets $91 Million Active Share vs. Russell/Nomura Small Cap™ Index 95% Portfolio Turnover 51% Median Market Cap $0.6 Billion Median Price/Earnings 11.3x Median Price/Book 1.0x 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 12/31/22Fund Russell/Nomura Small Cap™ Index Difference Industrials 33.9% 25.9% +8.0% Information Technology 15.9% 13.7% +2.2% Consumer Discretionary 12.8% 17.8% -5.0% Materials 6.7% 11.1% -4.4% Financials 6.2% 10.5% -4.3% Health Care 5.1% 4.8% +0.3% Communication Services 5.1% 4.3% +0.8% Consumer Staples 3.4% 7.8% -4.4% Real Estate 3.4% 1.8% +1.6% Energy 2.2% 1.2% +1.0% Utilities 0.7% 1.2% -0.4% Cash & Other 4.7% Portfolio Holdings
Top 10 Holdings
as of 12/31/22% of Net Assets Top 10 Holdings Ticker Current Vs. 3Q22 Vs. 4Q21 10-Year Holdings History (%) Time Held Siix Corp. 7613 2.36% +0.28% +0.78% 2 Years The Musashino Bank, Ltd. 8336 2.35% +0.48% +0.79% 2 Years Iwatani Corp. 8088 2.17% +0.62% +0.38% 3 Years Ship Healthcare Holdings, Inc. 3360 2.14% -0.10% +0.35% 6 Years Nojima Corp. 7419 2.13% +0.43% +1.02% 3 Years Japan Pile Corp. 5288 2.10% +0.17% +0.57% 7 Years Nihon Kohden Corp. 6849 2.08% +0.02% +0.30% 1 Year LIFENET Insurance Co. 7157 1.99% -0.07% +1.76% 5 Years Nippon Koei Co., Ltd. 1954 1.98% -0.10% -0.04% 6 Years Nissei ASB Machine Co., Ltd. 6284 1.96% +0.66% +1.96% < 1 Year Total as % of Net Assets 21.26% Total Holdings: 62
as of 12/31/22% of Net Assets Equity Holdings Current Vs. 3Q22 Vs. 4Q21 10-Year Holdings History (%) Time Held Siix Corp. 2.36% +0.28% +0.78% 2 Years The Musashino Bank, Ltd. 2.35% +0.48% +0.79% 2 Years Iwatani Corp. 2.17% +0.62% +0.38% 3 Years Ship Healthcare Holdings, Inc. 2.14% -0.10% +0.35% 6 Years Nojima Corp. 2.13% +0.43% +1.02% 3 Years Japan Pile Corp. 2.10% +0.17% +0.57% 7 Years Nihon Kohden Corp. 2.08% +0.02% +0.30% 1 Year LIFENET Insurance Co. 1.99% -0.07% +1.76% 5 Years Nippon Koei Co., Ltd. 1.98% -0.10% -0.04% 6 Years Nissei ASB Machine Co., Ltd. 1.96% +0.66% +1.96% < 1 Year Nippon Signal Company Ltd. 1.90% +0.34% +0.75% 4 Years AEON Financial Service Co., Ltd. 1.88% +0.01% +0.77% 3 Years Saizeriya Co., Ltd. 1.87% +0.48% -0.25% 5 Years Kyoei Steel, Ltd. 1.82% -0.10% +0.27% 1 Year Musashi Seimitsu Industry Co. Ltd. 1.81% -0.27% +0.06% 3 Years Maxell, Ltd. 1.81% +0.49% +1.81% < 1 Year TRE Holdings Corp. 1.80% -0.11% -0.85% 1 Year Creek & River Co., Ltd. 1.79% -0.37% -0.14% 2 Years Tsubakimoto Chain Co. 1.77% -0.10% +0.38% 1 Year Sato Holdings Corp. 1.75% +0.02% +0.03% 6 Years Nishimoto Co., Ltd. 1.74% -0.03% +0.15% 4 Years Star Mica Holdings Co. Ltd. 1.73% -0.27% +0.18% 3 Years Sac's Bar Holdings, Inc. 1.73% -0.03% +0.75% 1 Year J Front Retailing Co., Ltd. 1.67% +1.67% +1.67% < 1 Year Macnica Holdings, Inc. 1.67% -0.18% -0.05% 5 Years Sugi Holdings Co., Ltd. 1.65% +1.65% +1.65% < 1 Year SBS Holdings, Inc. 1.63% +0.16% -0.17% 13 Years Penta-Ocean Construction Co., Ltd. 1.63% -0.27% +1.63% < 1 Year Yamaichi Electronics Co., Ltd. 1.63% -0.14% -0.74% 1 Year Amada Co., Ltd. 1.62% +0.15% +1.62% < 1 Year Tosei Corp. 1.62% -0.08% +0.48% 4 Years Transcosmos, Inc. 1.61% -0.32% -0.28% 4 Years Benesse Holdings, Inc. 1.61% -0.04% +0.24% 2 Years Tadano Ltd. 1.60% +0.79% +0.56% 1 Year Tanseisha Co., Ltd. 1.57% -0.04% +0.27% 2 Years Glory Ltd. 1.55% +0.50% +0.62% 1 Year Benefit One, Inc. 1.53% +0.15% -0.38% 8 Years Tsukishima Kikai Co., Ltd. 1.52% +0.99% +1.52% < 1 Year ValueCommerce Co., Ltd. 1.49% +0.22% +1.49% < 1 Year Macromill, Inc. 1.44% +0.02% +0.83% 1 Year Mimaki Engineering Co., Ltd. 1.40% -0.33% -0.61% 7 Years Tokyo Ohka Kogyo Co., Ltd. 1.40% -0.32% -0.07% 3 Years Towa Corp. 1.40% +0.03% -0.78% 3 Years Nittoku Co., Ltd. 1.39% +0.11% +1.39% < 1 Year Rengo Co., Ltd. 1.38% +0.33% -0.20% 2 Years Takasago Thermal Engineering Corp. 1.35% +0.90% +1.35% < 1 Year Nichiha Corp. 1.34% -0.10% -0.09% 2 Years Aeon Fantasy Co., Ltd. 1.34% -0.26% +1.34% < 1 Year Kufu Co., Inc. 1.17% +1.07% +1.17% < 1 Year Mitsubishi Logisnext Co., Ltd. 1.11% +0.19% -0.62% 6 Years Hanwa Co., Ltd. 1.09% -0.42% -0.87% 10 Years Digital Garage, Inc. 1.05% +0.22% -0.92% 7 Years KAWADA TECHNOLOGIES, Inc. 1.02% -0.01% +0.45% 4 Years Keihan Holdings Co., Ltd. 1.00% +1.00% +1.00% < 1 Year IMAGICA GROUP, Inc. 0.99% -0.18% +0.99% < 1 Year Daihen Corp. 0.98% -0.71% -0.55% 7 Years Tocalo Co., Ltd. 0.89% -0.60% -0.91% 10 Years PeptiDream, Inc. 0.87% +0.87% +0.87% < 1 Year EF-ON, Inc. 0.74% -0.25% -0.16% 5 Years Matsuoka Corp. 0.62% +0.15% +0.04% 4 Years WingArc1st, Inc. 0.60% -0.43% +0.60% < 1 Year Money Forward, Inc. 0.50% +0.50% +0.50% < 1 Year Total as % of Net Assets 95.3% Cash & Other Holdings % of Net Assets Cash & Other 4.7% Total as % of Net Assets 4.7% Country Allocation
as of 12/31/22-
Japan
95.3%
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Cash & Other
4.7%
Japan 95.3% Cash & Other 4.7% -
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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 12/28/2022 $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 Past performance is not a guarantee of future results.
Download historical distributions and NAVsDate Paid Income Short-Term Gain Long-Term Gain Total Per Share Reinvest Price 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 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 - February 2023 View Japan Small Cap Fund Portfolio Update - December 2022 View Japan Small Cap Fund Portfolio Update - November 2022 View Japan Small Cap Fund Portfolio Update - October 2022 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.
