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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 10/21/24-
Investor Class (HJPSX)
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NAV
$16.95
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$ Change
-$0.17
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% Change
-0.99%
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YTD
3.16%
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Institutional Class (HJSIX)
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NAV
$16.74
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$ Change
-$0.17
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% Change
-1.01%
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YTD
3.46%
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Average Annualized Total Return
as of 9/30/24Name 1 Mo YTD 1 yr 3 yr 5 yr 10 yr Since Inception (8/31/07) Investor Class (HJPSX) 1.88% 8.89% 19.26% -0.24% 4.66% 7.67% 8.21% Institutional Class (HJSIX) 1.90% 9.21% 19.81% 0.16% 5.08% 8.04% 8.42% Russell/Nomura Small Cap™ Index 2.36% 10.57% 19.48% 1.24% 4.63% 6.09% 5.18% Tokyo Stock Price Index 0.23% 12.60% 21.62% 3.10% 7.26% 6.76% 3.97% as of 9/30/24Name QTR YTD 1 yr 3 yr 5 yr 10 yr Since Inception (8/31/07) Investor Class (HJPSX) 7.19% 8.89% 19.26% -0.24% 4.66% 7.67% 8.21% Institutional Class (HJSIX) 7.29% 9.21% 19.81% 0.16% 5.08% 8.04% 8.42% Russell/Nomura Small Cap™ Index 11.80% 10.57% 19.48% 1.24% 4.63% 6.09% 5.18% Tokyo Stock Price Index 6.95% 12.60% 21.62% 3.10% 7.26% 6.76% 3.97% Hypothetical Growth of $10,000
as of 9/30/2024Value of $10,000 invested between 9/30/2023 and 9/30/2024
Japan Small Cap Fund (HJPSX) $11,926 Japan Small Cap Fund (HJSIX) $11,981 Russell/Nomura Small Cap™ Index $11,948 Tokyo Stock Price Index $12,162 Value of $10,000 invested between 9/30/2021 and 9/30/2024
Japan Small Cap Fund (HJPSX) $9,930 Japan Small Cap Fund (HJSIX) $10,047 Russell/Nomura Small Cap™ Index $10,376 Tokyo Stock Price Index $10,947 Value of $10,000 invested between 9/30/2019 and 9/30/2024
Japan Small Cap Fund (HJPSX) $12,558 Japan Small Cap Fund (HJSIX) $12,813 Russell/Nomura Small Cap™ Index $12,538 Tokyo Stock Price Index $14,216 Value of $10,000 invested between 9/30/2014 and 9/30/2024
Japan Small Cap Fund (HJPSX) $20,937 Japan Small Cap Fund (HJSIX) $21,671 Russell/Nomura Small Cap™ Index $17,751 Tokyo Stock Price Index $19,258 Value of $10,000 invested between 8/31/2007 and 9/30/2024
Japan Small Cap Fund (HJPSX) $38,468 Japan Small Cap Fund (HJSIX) $39,815 Russell/Nomura Small Cap™ Index $23,279 Tokyo Stock Price Index $19,482 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% Returns-Based Statistics
Relative to Russell/Nomura Small Cap™ Indexas of 9/30/24Investor Class (HJPSX)Type 3 yr 5 yr 10 yr Alpha -1.47 0.15 1.75 Beta 0.97 1.02 0.96 Upside Capture 88.63 96.74 99.63 Downside Capture 95.39 95.93 90.35 Institutional Class (HJSIX)Type 3 yr 5 yr 10 yr Alpha -1.08 0.56 2.10 Beta 0.97 1.02 0.96 Upside Capture 89.45 97.68 100.45 Downside Capture 94.35 94.96 89.30 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 9/30/24Type 3 yr 5 yr 10 yr Investor Class (HJPSX) -0.20 0.21 0.47 Institutional Class (HJSIX) -0.17 0.23 0.49 Russell/Nomura Small Cap™ Index -0.10 0.21 0.37 Japan Stock Category Average 0.17 0.46 0.48 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 9/30/24Type 3 yr 5 yr 10 yr Investor Class (HJPSX) 15.14 16.56 14.24 Institutional Class (HJSIX) 15.13 16.56 14.23 Russell/Nomura Small Cap™ Index 14.87 15.25 13.70 Japan Stock Category Average 13.90 14.32 12.89 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
1.52%
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Institutional Class (HJSIX)
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Gross expense ratio
1.12%
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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 9/30/24. 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 9/30/24Inception Date (HJPSX) 8/31/07 Inception Date (HJSIX) 6/15/15 Total Fund Assets $117 Million Active Share vs. Russell/Nomura Small Cap™ Index 94% Portfolio Turnover 28% Median Market Cap $0.9 Billion Median Price/Earnings 13.2x 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 9/30/24Fund Russell/Nomura Small Cap™ Index Difference Industrials 39.5% 25.6% +13.9% Consumer Discretionary 14.6% 15.8% -1.2% Information Technology 10.7% 14.2% -3.5% Materials 8.8% 5.8% +3.0% Consumer Staples 5.8% 6.4% -0.6% Real Estate 5.3% 2.1% +3.2% Health Care 5.2% 7.4% -2.2% Financials 3.7% 13.1% -9.4% Communication Services 0.9% 7.3% -6.4% Energy 0.6% 1.0% -0.4% Utilities 0.5% 1.4% -0.8% Cash & Other 4.3% Portfolio Holdings
Top 10 Holdings
as of 9/30/24% of Net Assets Top 10 Holdings Ticker Current Vs. 2Q24 Vs. 3Q23 10-Year Holdings History (%) Time Held Relo Group, Inc. 8876 2.61% +0.36% +2.61% < 1 Year Daihen Corp. 6622 2.40% -0.47% +0.50% 9 Years TRE Holdings Corp. 9247 2.33% +0.80% +0.78% 3 Years Penta-Ocean Construction Co., Ltd. 1893 2.29% +0.07% +0.24% 2 Years NEC Networks & System Integrated 1973 2.24% +0.37% +1.20% 1 Year Kyudenko Corporation 1959 2.11% +0.37% +0.75% 1 Year PeptiDream, Inc. 4587 2.11% +0.25% +0.80% 2 Years Maeda Kosen Co., Ltd. 7821 2.05% +0.31% +0.46% 1 Year Musashi Seimitsu Industry Co. Ltd. 7220 2.03% +0.20% +0.29% 5 Years Nihon Kohden Corp. 6849 2.03% -0.06% +0.21% 3 Years Total as % of Net Assets 22.2% Total Holdings: 65
as of 6/30/24Please note that full portfolio holdings for the Japan Funds will be available 30 days after each calendar quarter end.
% of Net Assets Equity Holdings Current Vs. 2Q24 Vs. 3Q23 10-Year Holdings History (%) Time Held Daihen Corp. 2.87% -0.47% +0.50% 9 Years Takasago Thermal Engineering Corp. 2.41% -0.56% -0.15% 2 Years The Musashino Bank, Ltd. 2.29% -0.31% -0.12% 3 Years Relo Group, Inc. 2.25% +0.36% +2.61% < 1 Year Penta-Ocean Construction Co., Ltd. 2.22% +0.07% +0.24% 2 Years Amada Co., Ltd. 2.15% -0.28% -0.12% 2 Years Nihon Kohden Corp. 2.09% -0.06% +0.21% 3 Years Tsukishima Holdings Co., Ltd. 2.07% -0.17% -0.11% 2 Years Japan Pile Corp. 1.99% -0.49% -0.34% 9 Years Tadano Ltd. 1.97% -0.20% -0.37% 3 Years Mimaki Engineering Co., Ltd. 1.96% -0.62% -0.03% 8 Years Treasure Factory Co., Ltd. 1.93% +0.03% +1.96% 1 Year J Front Retailing Co., Ltd. 1.92% -0.03% +0.07% 2 Years Tosei Corp. 1.91% +0.01% +0.26% 6 Years Tokyo Ohka Kogyo Co., Ltd. 1.91% -0.29% -0.25% 5 Years Integrated Design & Engineering Holdings Co., Ltd. 1.88% +0.13% +0.32% 1 Year NEC Networks & System Integrated 1.87% +0.37% +1.20% 1 Year PeptiDream, Inc. 1.86% +0.25% +0.80% 2 Years Musashi Seimitsu Industry Co. Ltd. 1.83% +0.20% +0.29% 5 Years Saizeriya Co., Ltd. 1.81% -0.34% -0.84% 6 Years Nishi-Nippon Financial Holdings, Inc. 1.78% -0.02% +0.12% 1 Year Kyudenko Corporation 1.74% +0.37% +0.75% 1 Year Maeda Kosen Co., Ltd. 1.74% +0.31% +0.46% 1 Year Nissei ASB Machine Co., Ltd. 1.68% -0.15% +0.02% 2 Years Tanseisha Co., Ltd. 1.66% -0.19% -0.23% 3 Years Tsubakimoto Chain Co. 1.63% -1.53% -1.89% 3 Years Mitsubishi Logisnext Co., Ltd. 1.62% -0.21% -0.15% 7 Years Tocalo Co., Ltd. 1.57% -0.02% +1.10% 12 Years Ariake Japan Co., Ltd. 1.56% +0.12% +0.56% 1 Year Cosmos Pharmaceutical Corp. 1.56% +0.34% +1.90% 1 Year Onward Holdings Co., Ltd. 1.54% -0.36% -0.23% 1 Year TRE Holdings Corp. 1.53% +0.80% +0.78% 3 Years SBS Holdings, Inc. 1.42% +0.12% -0.09% 15 Years Future Corp. 1.37% +0.35% +1.72% < 1 Year Nichiha Corp. 1.36% +0.10% +0.18% 4 Years Nabtesco Corp. 1.33% +0.14% +1.47% 1 Year Siix Corp. 1.33% -0.12% -0.60% 4 Years Topre Corp. 1.30% -0.13% -0.02% 1 Year Towa Corp. 1.27% -0.91% -2.73% 5 Years Keihan Holdings Co., Ltd. 1.25% +0.14% -0.49% 2 Years Nippon Signal Company Ltd. 1.21% -0.05% -0.05% 6 Years Koshidaka Holdings Co., Ltd. 1.20% +0.54% +1.74% < 1 Year Gakujo Co., Ltd. 1.20% -0.02% +1.18% 1 Year Trusco Nakayama Corp. 1.18% +0.45% +1.63% 1 Year Hanwa Co., Ltd. 1.18% -0.17% +0.02% 12 Years Nishimoto Co., Ltd. 1.14% +0.04% -0.56% 6 Years Aeon Fantasy Co., Ltd. 1.14% +0.07% -0.53% 2 Years Paramount Bed Holdings Co. Ltd. 1.05% +0.01% +1.06% < 1 Year Toyobo Co., Ltd. 1.04% 0.00% +0.29% 1 Year Canon Marketing Japan, Inc. 1.03% +0.14% +1.17% < 1 Year Daicel Corporation 1.02% -0.08% +0.20% 1 Year Kanamoto Co., Ltd. 0.99% +0.65% +1.64% < 1 Year Creek & River Co., Ltd. 0.97% -0.14% -0.40% 3 Years Macnica Holdings, Inc. 0.94% -0.05% -0.22% 6 Years Macromill, Inc. 0.94% -0.01% +0.04% 3 Years WingArc1st, Inc. 0.94% -0.94% -1.12% 2 Years Furukawa Co., Ltd. 0.93% -0.08% +0.14% 1 Year Warabeya Nichiyo Holdings Co. 0.92% +0.08% +1.00% < 1 Year Nojima Corp. 0.87% +0.08% -0.76% 5 Years Raksul, Inc. 0.77% +0.35% +0.01% 1 Year Nittoku Co., Ltd. 0.76% +0.06% -0.38% 2 Years Star Mica Holdings Co. Ltd. 0.76% 0.00% +0.13% 5 Years Iwatani Corp. 0.66% -0.04% -1.60% 4 Years Computer Engineering & Consult 0.65% -0.05% +0.60% < 1 Year EF-ON, Inc. 0.56% -0.02% -0.20% 6 Years Total as % of Net Assets 95.5% Cash & Other Holdings % of Net Assets Cash & Other 4.6% Total as % of Net Assets 4.6% Country Allocation
as of 9/30/24-
Japan
95.7%
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Cash & Other
4.3%
Japan 95.7% Cash & Other 4.3% -
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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 12/27/2023 $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 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 12/27/2023 $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 Past performance is not a guarantee of future results.
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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 2024 View Japan Small Cap Fund Portfolio Update - August 2024 View Japan Small Cap Fund Portfolio Update - July 2024 View Japan Small Cap Fund Portfolio Update - June 2024 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.
