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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 9/20/23-
Investor Class (HJPSX)
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NAV
$15.35
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$ Change
-$0.23
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% Change
-1.48%
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YTD
7.72%
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Institutional Class (HJSIX)
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NAV
$15.16
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$ Change
-$0.23
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% Change
-1.49%
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YTD
8.05%
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Average Annualized Total Return
as of 8/31/23Name 1 Mo YTD 1 yr 3 yr 5 yr 10 yr Since Inception (8/31/07) Investor Class (HJPSX) -0.84% 8.07% 9.90% 1.28% 0.34% 8.58% 7.71% Institutional Class (HJSIX) -0.85% 8.34% 10.34% 1.68% 0.74% 8.91% 7.92% Russell/Nomura Small Cap™ Index -0.89% 8.90% 12.97% 1.30% -0.47% 5.79% 4.50% Tokyo Stock Price Index -1.99% 13.35% 16.21% 4.11% 2.94% 5.91% 3.11% as of 6/30/23Name QTR YTD 1 yr 3 yr 5 yr 10 yr Since Inception (8/31/07) Investor Class (HJPSX) -0.91% 7.16% 13.23% 1.89% 0.03% 8.58% 7.74% Institutional Class (HJSIX) -0.86% 7.34% 13.64% 2.27% 0.44% 8.90% 7.94% Russell/Nomura Small Cap™ Index 0.21% 5.06% 13.23% 1.67% -1.55% 5.40% 4.31% Tokyo Stock Price Index 5.38% 12.01% 18.14% 5.61% 2.73% 5.66% 3.06% Hypothetical Growth of $10,000
as of 8/31/2023Value of $10,000 invested between 8/31/2022 and 8/31/2023
Japan Small Cap Fund (HJPSX) $10,990 Japan Small Cap Fund (HJSIX) $11,034 Russell/Nomura Small Cap™ Index $11,297 Tokyo Stock Price Index $11,621 Value of $10,000 invested between 8/31/2020 and 8/31/2023
Japan Small Cap Fund (HJPSX) $10,390 Japan Small Cap Fund (HJSIX) $10,513 Russell/Nomura Small Cap™ Index $10,396 Tokyo Stock Price Index $11,300 Value of $10,000 invested between 8/31/2018 and 8/31/2023
Japan Small Cap Fund (HJPSX) $10,172 Japan Small Cap Fund (HJSIX) $10,376 Russell/Nomura Small Cap™ Index $9,602 Tokyo Stock Price Index $11,574 Value of $10,000 invested between 8/31/2013 and 8/31/2023
Japan Small Cap Fund (HJPSX) $22,781 Japan Small Cap Fund (HJSIX) $23,476 Russell/Nomura Small Cap™ Index $17,266 Tokyo Stock Price Index $17,785 Value of $10,000 invested between 8/31/2007 and 8/31/2023
Japan Small Cap Fund (HJPSX) $32,832 Japan Small Cap Fund (HJSIX) $33,834 Russell/Nomura Small Cap™ Index $19,868 Tokyo Stock Price Index $16,337 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 6/30/23Investor Class (HJPSX)Type 3 yr 5 yr 10 yr Alpha 0.39 1.80 3.26 Beta 1.03 1.02 0.96 Upside Capture 95.78 103.44 104.52 Downside Capture 94.45 96.19 87.18 Institutional Class (HJSIX)Type 3 yr 5 yr 10 yr Alpha 0.77 2.21 3.56 Beta 1.03 1.02 0.96 Upside Capture 96.78 104.39 105.24 Downside Capture 93.59 95.30 86.27 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 6/30/23Type 3 yr 5 yr 10 yr Investor Class (HJPSX) 0.09 -0.01 0.58 Institutional Class (HJSIX) 0.12 0.01 0.60 Russell/Nomura Small Cap™ Index 0.07 -0.12 0.37 Japan Stock Category Average 0.43 0.17 0.45 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 6/30/23Type 3 yr 5 yr 10 yr Investor Class (HJPSX) 15.64 17.14 14.22 Institutional Class (HJSIX) 15.64 17.14 14.21 Russell/Nomura Small Cap™ Index 14.18 15.98 13.70 Japan Stock Category Average 14.55 15.24 12.95 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 6/30/23. 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.
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Portfolio
Portfolio Characteristics
as of 6/30/23Inception Date (HJPSX) 8/31/07 Inception Date (HJSIX) 6/15/15 Total Fund Assets $108 Million Active Share vs. Russell/Nomura Small Cap™ Index 94% Portfolio Turnover 37% Median Market Cap $0.6 Billion Median Price/Earnings 13.1x Median Price/Book 1.2x 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 6/30/23Fund Russell/Nomura Small Cap™ Index Difference Industrials 35.6% 24.2% +11.3% Information Technology 14.8% 15.2% -0.4% Consumer Discretionary 13.7% 16.0% -2.3% Materials 7.0% 12.1% -5.1% Health Care 5.0% 6.4% -1.4% Communication Services 3.8% 4.2% -0.3% Financials 3.6% 8.4% -4.7% Consumer Staples 2.4% 9.5% -7.1% Energy 2.4% 1.2% +1.2% Real Estate 2.3% 1.3% +1.0% Utilities 0.9% 1.6% -0.8% Cash & Other 8.6% Portfolio Holdings
Top 10 Holdings
as of 6/30/23% of Net Assets Top 10 Holdings Ticker Current Vs. 1Q23 Vs. 2Q22 10-Year Holdings History (%) Time Held Iwatani Corp. 8088 2.37% +0.40% +0.89% 3 Years Kyoei Steel, Ltd. 5440 2.08% +0.28% -0.02% 2 Years Tadano Ltd. 6395 2.04% +0.14% +1.10% 1 Year Towa Corp. 6315 2.03% +0.22% +0.44% 4 Years Nihon Kohden Corp. 6849 2.00% -0.04% +0.20% 2 Years Daihen Corp. 6622 2.00% +0.34% +0.28% 7 Years Tsubakimoto Chain Co. 6371 1.99% +0.36% +0.09% 2 Years SBS Holdings, Inc. 2384 1.97% -0.05% +0.45% 13 Years Tokyo Ohka Kogyo Co., Ltd. 4186 1.96% +0.08% +0.15% 4 Years Tsukishima Holdings Co., Ltd. 6332 1.94% +0.23% +1.94% 1 Year Total as % of Net Assets 20.38% Total Holdings: 64
as of 6/30/23% of Net Assets Equity Holdings Current Vs. 1Q23 Vs. 2Q22 10-Year Holdings History (%) Time Held Iwatani Corp. 2.37% +0.40% +0.89% 3 Years Kyoei Steel, Ltd. 2.08% +0.28% -0.02% 2 Years Tadano Ltd. 2.04% +0.14% +1.10% 1 Year Towa Corp. 2.03% +0.22% +0.44% 4 Years Nihon Kohden Corp. 2.00% -0.04% +0.20% 2 Years Daihen Corp. 2.00% +0.34% +0.28% 7 Years Tsubakimoto Chain Co. 1.99% +0.36% +0.09% 2 Years SBS Holdings, Inc. 1.97% -0.05% +0.45% 13 Years Tokyo Ohka Kogyo Co., Ltd. 1.96% +0.08% +0.15% 4 Years Tsukishima Holdings Co., Ltd. 1.94% +0.23% +1.94% 1 Year Musashi Seimitsu Industry Co. Ltd. 1.93% -0.30% +0.07% 3 Years Amada Co., Ltd. 1.90% +0.08% +1.90% 1 Year Nojima Corp. 1.90% 0.00% -0.05% 4 Years Mitsubishi Logisnext Co., Ltd. 1.87% +0.32% +0.90% 6 Years Maxell, Ltd. 1.86% -0.09% +1.86% 1 Year Saizeriya Co., Ltd. 1.84% +0.02% +0.81% 5 Years Nishimoto Co., Ltd. 1.81% +0.23% -0.11% 5 Years Siix Corp. 1.81% +0.03% +0.14% 3 Years Aeon Fantasy Co., Ltd. 1.80% +0.08% +0.74% 1 Year NEC Networks & System Integrated 1.75% +0.19% +1.75% < 1 Year The Musashino Bank, Ltd. 1.75% -0.36% -0.29% 2 Years J Front Retailing Co., Ltd. 1.74% -0.08% +1.74% < 1 Year Glory Ltd. 1.73% -0.38% +0.71% 2 Years Nippon Koei Co., Ltd. 1.73% -0.31% -0.35% 6 Years Mimaki Engineering Co., Ltd. 1.73% +0.39% +0.24% 7 Years Ship Healthcare Holdings, Inc. 1.69% -0.20% -0.49% 7 Years Nippon Signal Company Ltd. 1.63% -0.21% +0.17% 5 Years Tosei Corp. 1.58% +0.12% 0.00% 4 Years Keihan Holdings Co., Ltd. 1.55% +0.39% +1.55% < 1 Year Takasago Thermal Engineering Corp. 1.54% -0.25% +1.54% 1 Year Maeda Kosen Co., Ltd. 1.53% +0.04% +1.53% < 1 Year Tanseisha Co., Ltd. 1.51% +0.01% -0.21% 2 Years Japan Pile Corp. 1.44% -0.44% -0.57% 8 Years Nissei ASB Machine Co., Ltd. 1.43% -0.17% +1.43% 1 Year Transcosmos, Inc. 1.36% +0.06% -0.60% 4 Years TRE Holdings Corp. 1.32% -0.20% -0.43% 1 Year Nichiha Corp. 1.31% +0.20% -0.21% 3 Years Sac's Bar Holdings, Inc. 1.29% +0.15% -0.05% 2 Years PeptiDream, Inc. 1.27% +0.05% +1.27% < 1 Year Benesse Holdings, Inc. 1.25% -0.19% -0.44% 2 Years Nittoku Co., Ltd. 1.24% -0.36% +1.24% 1 Year Creek & River Co., Ltd. 1.21% -0.76% -0.84% 2 Years Yamaichi Electronics Co., Ltd. 1.17% -0.38% -0.47% 2 Years Benefit One, Inc. 1.13% -0.32% -0.09% 8 Years Penta-Ocean Construction Co., Ltd. 1.09% -0.31% +0.56% 1 Year Macromill, Inc. 1.08% -0.24% -0.07% 1 Year LIFENET Insurance Co. 1.03% -0.19% -1.29% 6 Years ValueCommerce Co., Ltd. 1.03% -0.39% -0.31% 1 Year Onward Holdings Co., Ltd. 1.01% +1.01% +1.01% < 1 Year Hanwa Co., Ltd. 1.00% -0.39% -0.21% 10 Years IMAGICA GROUP, Inc. 1.00% +0.04% +0.59% 1 Year Macnica Holdings, Inc. 1.00% -0.35% -0.82% 5 Years Matsuoka Corp. 0.96% -0.30% +0.44% 4 Years KAWADA TECHNOLOGIES, Inc. 0.94% -0.13% +0.14% 4 Years WingArc1st, Inc. 0.94% +0.16% +0.06% 1 Year Money Forward, Inc. 0.89% +0.10% +0.89% < 1 Year EF-ON, Inc. 0.89% -0.09% -0.04% 5 Years Zenkoku Hosho Co., Ltd. 0.86% -0.08% +0.86% < 1 Year Sato Holdings Corp. 0.75% -0.64% -1.21% 6 Years Kufu Co., Inc. 0.70% 0.00% +0.70% 1 Year Star Mica Holdings Co. Ltd. 0.69% -0.12% -1.52% 4 Years Ariake Japan Co., Ltd. 0.61% +0.61% +0.61% < 1 Year Tocalo Co., Ltd. 0.53% -0.31% -1.18% 11 Years Kyudenko Corporation 0.48% +0.48% +0.48% < 1 Year Total as % of Net Assets 91.5% Cash & Other Holdings % of Net Assets Cash & Other 8.6% Total as % of Net Assets 8.6% Country Allocation
as of 6/30/23-
Japan
91.4%
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Cash & Other
8.6%
Japan 91.4% Cash & Other 8.6% -
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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 - August 2023 View Japan Small Cap Fund Portfolio Update - July 2023 View Japan Small Cap Fund Portfolio Update - June 2023 View Japan Small Cap Fund Portfolio Update - May 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 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.
