• Overview

    HJPSX
    Investor

    Hennessy Japan Small Cap Fund

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

    Fund Facts

    Category

    Sector & Specialty - Japan

    Inception Date

    8/31/07

    Morningstar style box

    Morningstar style box

    Overall morningstar rating

    Based on risk-adjusted returns among 44 Japan Stock funds, as of 12/31/18.

    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

  • Insights & News

  • Performance

    Daily Pricing & Performance

    as of 3/21/19 (Investor)
    • Nav

      $14.20

    • $ Change

      $0.07

    • % Change

      0.50%

    • YTD

      5.42%

    Average Annualized Total Return

    as of 2/28/19 (Investor)
    Name 1 Mo YTD 1 yr 3 yr 5 yr 10 yr Since Inception (8/31/07)
    Japan Small Cap Fund (HJPSX) 3.21% 7.50% -8.54% 17.94% 12.98% 16.81% 10.06%
    Russell/Nomura Small Cap Index 1.89% 7.50% -14.31% 11.97% 8.46% 11.46% 5.61%
    Tokyo Stock Price Index 0.33% 6.81% -10.90% 10.26% 6.19% 8.69% 2.42%

    Please swipe to view table

    as of 12/31/18 (Investor)
    Name QTR YTD 1 yr 3 yr 5 yr 10 yr Since Inception (8/31/07)
    Japan Small Cap Fund (HJPSX) -15.08% -12.51% -12.51% 12.40% 11.50% 13.35% 9.51%
    Russell/Nomura Small Cap Index -17.21% -18.12% -18.12% 6.08% 6.53% 8.40% 5.02%
    Tokyo Stock Price Index -15.24% -14.30% -14.30% 3.99% 3.91% 5.75% 1.86%

    Please swipe to view table

    Hypothetical Growth of $10,000

    as of 2/28/2019 (Investor)

    Value of $10,000 invested between 2/28/2018 and 2/28/2019

    Japan Small Cap Fund (HJPSX) $9,146
    Russell/Nomura Small Cap Index $8,425
    Tokyo Stock Price Index $8,910

    Value of $10,000 invested between 2/29/2016 and 2/28/2019

    Japan Small Cap Fund (HJPSX) $16,406
    Russell/Nomura Small Cap Index $13,802
    Tokyo Stock Price Index $13,404

    Value of $10,000 invested between 2/28/2014 and 2/28/2019

    Japan Small Cap Fund (HJPSX) $18,408
    Russell/Nomura Small Cap Index $14,753
    Tokyo Stock Price Index $13,505

    Value of $10,000 invested between 2/28/2009 and 2/28/2019

    Japan Small Cap Fund (HJPSX) $47,286
    Russell/Nomura Small Cap Index $29,088
    Tokyo Stock Price Index $23,019

    Value of $10,000 invested between 8/31/2007 and 2/28/2019

    Japan Small Cap Fund (HJPSX) $30,091
    Russell/Nomura Small Cap Index $18,416
    Tokyo Stock Price Index $13,166

    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

      2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
    Japan Small Cap Fund (HJPSX)
    13.88 23.99 -4.17 12.76 33.17 8.75 11.59 8.52 49.58 -12.51
    Russell/Nomura Small Cap Index
    6.60 17.73 -2.34 6.37 25.28 -0.50 15.49 7.74 35.34 -18.12
    Tokyo Stock Price Index
    4.69 14.44 -11.82 8.06 26.48 -2.95 10.97 3.69 26.56 -14.30
    Year
    Japan Small Cap Fund (HJPSX)
    Russell/Nomura Small Cap Index
    Tokyo Stock Price Index
    2008 -22.31% -16.28% -25.50%

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

    as of 12/31/18 (Investor)
    Type 3 yr 5 yr 10 yr
    Alpha 6.28 5.36 4.75
    Beta 0.91 0.87 0.99
    Upside Capture 105.03 105.29 109.67
    Downside Capture 68.94 72.48 85.50

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    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 12/31/18 (Investor)
    Type 3 yr 5 yr 10 yr
    Japan Small Cap Fund (HJPSX) 0.87 0.94 0.87
    Russell/Nomura Small Cap Index 0.42 0.53 0.61
    Japan Stock Category Average 0.36 0.39 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 12/31/18 (Investor)
    Type 3 yr 5 yr 10 yr
    Japan Small Cap Fund (HJPSX) 13.08 11.58 15.42
    Russell/Nomura Small Cap Index 13.45 12.03 14.38
    Japan Stock Category Average 11.18 11.20 15.69

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

    Fund Expenses

    • Gross expense ratio

      1.47%

    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 12/31/18. 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. The fund received 5 stars for the three-year, 5 stars for the five-year and 5 stars for the ten-year periods ended 12/31/18 among 44, 26 and 14 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.

    Each Morningstar category average represents a universe of funds with similar objectives. The Morningstar Style Box reveals the fund's investment style as of 12/31/18. 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 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 12/31/18
    Total Fund Assets $168.6 Million
    Active Share vs. Russell/Nomura Small Cap Index 95%
    Portfolio Turnover 39%
    Median Market Cap $738.6 Million
    Median Price/Earnings 14.8x
    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 12/31/18
    Fund Russell/Nomura Small Cap Index Difference
    Industrials 43.0% 25.4% +17.6%
    Information Technology 20.1% 11.4% +8.7%
    Consumer Discretionary 14.4% 19.0% -4.6%
    Materials 8.7% 10.6% -1.9%
    Consumer Staples 5.6% 9.5% -3.9%
    Health Care 5.2% 5.8% -0.6%
    Communication Services 3.4% 4.4% -1.0%
    Financials 1.2% 10.1% -8.9%
    Real Estate 0.9% 2.1% -1.2%
    Energy 0.0% 0.6% -0.6%
    Utilities 0.0% 1.2% -1.2%
    Cash & Other -2.5%

    Portfolio Holdings

    Top 10 Holdings

    as of 12/31/18
    Top 10 Holdings Ticker % of Net Assets
    Benefit One, Inc. 2412 2.9%
    Kobe Bussan Co., Ltd. 3038 2.8%
    Nihon Kohden Corp. 6849 2.7%
    Takuma Co., Ltd. 6013 2.6%
    Ship Healthcare Holdings, Inc. 3360 2.6%
    DCM Holdings Co., Ltd. 3050 2.6%
    Okamura Corp. 7994 2.6%
    OBIC Business Consultants Co. 4733 2.5%
    Hamakyorex Co., Ltd. 9037 2.5%
    Elecom Co., Ltd. 6750 2.5%
    Total as % of Net Assets 26.2%

    Total Holdings: 59

    as of 12/31/18
    Equity Holdings Ticker % of Net Assets
    Benefit One, Inc. 2412 2.9%
    Kobe Bussan Co., Ltd. 3038 2.8%
    Nihon Kohden Corp. 6849 2.7%
    Takuma Co., Ltd. 6013 2.6%
    Ship Healthcare Holdings, Inc. 3360 2.6%
    DCM Holdings Co., Ltd. 3050 2.6%
    Okamura Corp. 7994 2.6%
    OBIC Business Consultants Co. 4733 2.5%
    Hamakyorex Co., Ltd. 9037 2.5%
    Elecom Co., Ltd. 6750 2.5%
    NS Solutions Corp. 2327 2.5%
    Mirait Holdings Corp. 1417 2.4%
    SBS Holdings, Inc. 2384 2.4%
    Japan Pile Corp. 5288 2.4%
    Nippon Koei Co., Ltd. 1954 2.3%
    Mitsubishi Logisnext Co., Ltd. 7105 2.3%
    Sato Holdings Corp. 6287 2.3%
    Shibuya Corp. 6340 2.1%
    Asahi Holdings, Inc. 5857 2.1%
    Kakaku.com, Inc. 2371 2.1%
    Maeda Kosen Co., Ltd. 7821 2.1%
    Nihon Unisys, Ltd. 8056 2.0%
    Pacific Industrial Co., Ltd. 7250 2.0%
    Macnica Fuji Electronics Holdings 3132 2.0%
    Mimaki Engineering Co., Ltd. 6638 2.0%
    KOMEDA Holdings Co., Ltd. 3543 2.0%
    Nishimoto Co., Ltd. 9260 2.0%
    Bell System24 Holdings, Inc. 6183 1.9%
    Hanwa Co., Ltd. 8078 1.9%
    METAWATER Co., Ltd. 9551 1.9%
    Bic Camera, Inc. 3048 1.8%
    Stella Chemifa Corp. 4109 1.8%
    Hito Communications, Inc. 3654 1.8%
    UMC Electronics Co., Ltd. 6615 1.7%
    Saizeriya Co., Ltd. 7581 1.7%
    Kito Corp. 6409 1.7%
    Digital Garage, Inc. 4819 1.6%
    Sanyo Chemical Industries, Ltd. 4471 1.4%
    EF-ON, Inc. 9514 1.4%
    Nihon Flush Co., Ltd. 7820 1.4%
    Macromill, Inc. 3978 1.3%
    Kasai Kogyo Co., Ltd. 7256 1.2%
    LIFENET Insurance Co. 7157 1.2%
    Seiren Co., Ltd. 3569 1.2%
    Nippon Signal Company Ltd. 6741 1.1%
    Transcosmos, Inc. 9715 1.1%
    Takeei Corp. 2151 1.1%
    TPR Co., Ltd. 6463 1.1%
    Kuriyama Holdings Corp. 3355 1.0%
    Sun Corporation 6736 1.0%
    Hiramatsu, Inc. 2764 0.9%
    KAWADA TECHNOLOGIES, Inc. 3443 0.9%
    Soiken Holdings, Inc. 2385 0.8%
    Tocalo Co., Ltd. 3433 0.8%
    Juki Corp. 6440 0.8%
    Nissei ASB Machine Co., Ltd. 6284 0.7%
    Star Mica Co., Ltd. 3230 0.6%
    Daihen Corp. 6622 0.5%
    Tosei Corp. 8923 0.3%
    Total as % of Net Assets 102.5%
    Cash & Other Holdings % of Net Assets
    Cash & Other -2.5%
    Total as % of Net Assets -2.5%

    Country Allocation

    as of 12/31/18
    • Japan

      102.5%

    • Cash & Other

      -2.5%

    Japan 102.5%
    Cash & Other -2.5%
  • 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
    12/07/2018 -- $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
  • Fund Documents

    Download PDF View Online
    Fund Documents
    Japan Small Cap Fund Fact Sheet
    Japan Small Cap Fund Portfolio Manager Commentary View
    Japan Small Cap Fund Summary Prospectus
    Full Prospectus
    Statement of Additional Information
    Shareholder Reports
    Japan Small Cap Fund Semi-Annual Report
    Japan Small Cap Fund Annual Report