• Overview

    HJPNX
    Investor

    Hennessy Japan Fund

    Actively managed, the Fund maintains a highly concentrated, best ideas portfolio of Japanese companies.

    Fund Facts

    Category

    Sector & Specialty - Japan

    Inception Date

    10/31/03

    Morningstar style box

    Morningstar style box

    Overall morningstar rating

    Based on risk-adjusted returns among 39 Japan Stock funds, as of 9/30/18.

    Investment Overview Video
    Investment Overview Video

    Why Invest

    • Opportunity to invest in the potential rebound of Japan's economy
    • Concentrated portfolio focused on world-class, globally oriented companies
    • Asia-based management enables rigorous due diligence and research process leading to an in-depth understanding of the Japanese market and culture

    Investment Approach

    The Hennessy Japan Fund seeks high-quality,  globally-oriented Japanese companies with time-tested business models and exceptional management that can perform well through economic cycles. 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, with a concentrated number of holdings.

    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.

    “We believe having 'feet on the street' in Japan provides a crucial advantage for our shareholders.”

    - Masa Takeda

  • Insights & News

  • Performance

    Daily Pricing & Performance

    as of 10/16/18 (Investor)
    • Nav

      $35.59

    • $ Change

      $0.46

    • % Change

      1.31%

    • YTD

      2.15%

    Average Annualized Total Return

    as of 9/30/18 (Investor)
    Name 1 Mo YTD 1 yr 3 yr 5 yr 10 yr Since Inception (10/31/03)
    Japan Fund (HJPNX) 4.71% 8.50% 20.98% 20.74% 14.42% 12.50% 10.05%
    Russell/Nomura Total Market Index 3.02% 1.23% 9.86% 13.36% 7.90% 6.76% 5.60%
    Tokyo Stock Price Index 3.04% 1.11% 9.85% 13.14% 7.82% 6.76% 5.48%

    Please swipe to view table

    as of 9/30/18 (Investor)
    Name QTR YTD 1 yr 3 yr 5 yr 10 yr Since Inception (10/31/03)
    Japan Fund (HJPNX) 6.12% 8.50% 20.98% 20.74% 14.42% 12.50% 10.05%
    Russell/Nomura Total Market Index 3.24% 1.23% 9.86% 13.36% 7.90% 6.76% 5.60%
    Tokyo Stock Price Index 3.22% 1.11% 9.85% 13.14% 7.82% 6.76% 5.48%

    Please swipe to view table

    Hypothetical Growth of $10,000

    as of 9/30/2018 (Investor)

    Value of $10,000 invested between 9/30/2017 and 9/30/2018

    Japan Fund (HJPNX) $12,098
    Russell/Nomura Total Market Index $10,664
    Tokyo Stock Price Index $10,985

    Value of $10,000 invested between 9/30/2015 and 9/30/2018

    Japan Fund (HJPNX) $17,601
    Russell/Nomura Total Market Index $14,140
    Tokyo Stock Price Index $14,482

    Value of $10,000 invested between 9/30/2013 and 9/30/2018

    Japan Fund (HJPNX) $19,609
    Russell/Nomura Total Market Index $14,195
    Tokyo Stock Price Index $14,571

    Value of $10,000 invested between 9/30/2008 and 9/30/2018

    Japan Fund (HJPNX) $32,483
    Russell/Nomura Total Market Index $18,667
    Tokyo Stock Price Index $19,231

    Value of $10,000 invested between 10/31/2003 and 9/30/2018

    Japan Fund (HJPNX) $41,706
    Russell/Nomura Total Market Index $21,895
    Tokyo Stock Price Index $22,155

    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

    Year Japan Fund (HJPNX) Russell/Nomura Total Market Index Tokyo Stock Price Index
    2017 32.04% 27.17% 26.56%
    2016 11.26% 3.31% 3.69%
    2015 12.95% 11.72% 10.97%
    2014 6.98% -3.03% -2.95%
    2013 26.16% 26.57% 26.48%
    2012 11.61% 8.05% 8.06%
    2011 0.29% -12.60% -11.82%
    2010 20.64% 14.65% 14.44%
    2009 9.83% 5.81% 4.69%
    2008 -27.50% -25.96% -25.50%
    2007 -14.25% -6.17% -6.31%
    2006 -13.10% 2.04%
    2005 50.26% 26.75%
    2004 36.31% 15.59%

    Please swipe to view table

    Returns-Based Statistics
    Relative to Russell/Nomura Total Market Index

    as of 9/30/18 (Investor)
    Type 3 yr 5 yr 10 yr
    Alpha 8.93 7.45 6.54
    Beta 0.79 0.80 0.82
    Upside Capture 100.65 97.68 93.93
    Downside Capture 20.33 38.02 58.58

    Please swipe to view table

    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 9/30/18 (Investor)
    Type 3 yr 5 yr 10 yr
    Japan Fund (HJPNX) 1.76 1.27 0.89
    Russell/Nomura Total Market Index 1.16 0.72 0.50
    Japan Stock Category Average 1.37 0.85 0.44

    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 9/30/18 (Investor)
    Type 3 yr 5 yr 10 yr
    Japan Fund (HJPNX) 10.57 10.62 14.01
    Russell/Nomura Total Market Index 10.48 10.62 14.53
    Japan Stock Category Average 8.97 9.47 16.85

    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 9/30/18. 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 9/30/18 among 39, 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 9/30/18. 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 Total Market Index is a market capitalization-weighted index of Japanese equities. 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 Total Market 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 9/30/18
    Total Fund Assets $528.6 Million
    Active Share vs. Russell/Nomura Total Market Index 84%
    Portfolio Turnover 1%
    Median Market Cap $38.9 Billion
    Median Price/Earnings 30.7x
    Median Price/Book 3.5x

    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 reflects the trailing 12-month period.

    Sector Weighting

    as of 9/30/18
    Sector % of Net Assets
    Industrials 29.2%
    Consumer Discretionary 18.3%
    Consumer Staples 14.9%
    Health Care 10.1%
    Financials 7.8%
    Communication Services 6.0%
    Information Technology 4.6%
    Materials 1.5%
    Cash & Other 7.5%

    Portfolio Holdings

    Top 10 Holdings

    as of 9/30/18
    Top 10 Holdings Ticker % of Net Assets
    SoftBank Group Corp. 9984 6.1%
    Recruit Holdings Co., Ltd. 6098 5.9%
    Rohto Pharmaceutical Co., Ltd. 4527 5.3%
    Fast Retailing Co., Ltd. 9983 5.2%
    Shimano, Inc. 7309 5.0%
    Daikin Industries, Ltd. 6367 5.0%
    Unicharm Corp. 8113 5.0%
    Kao Corp. 4452 4.9%
    Terumo Corp. 4543 4.9%
    Mitsubishi Corp. 8058 4.8%
    Total as % of Net Assets 52.0%

    Total Holdings: 23

    as of 6/30/18

    Please note that full portfolio holdings for the Japan Funds will be available 30 days after each calendar quarter end.

    Equity Holdings Ticker % of Net Assets
    Recruit Holdings Co., Ltd. 6098 5.5%
    Rohto Pharmaceutical Co., Ltd. 4527 5.4%
    Fast Retailing Co., Ltd. 9983 5.3%
    Shimano, Inc. 7309 5.1%
    Japan Tobacco, Inc. 2914 5.1%
    Terumo Corp. 4543 5.1%
    Unicharm Corp. 8113 5.1%
    Kao Corp. 4452 5.0%
    Misumi Group, Inc. 9962 5.0%
    Daikin Industries, Ltd. 6367 5.0%
    SoftBank Group Corp. 9984 4.9%
    Mitsubishi Corp. 8058 4.8%
    Nidec Corp. 6594 4.7%
    Keyence Corp. 6861 4.6%
    Mitsubishi UFJ Financial Group 8306 3.8%
    Sumitomo Mitsui Financial Group 8316 3.5%
    ASICS Corp. 7936 3.3%
    Toyota Motor Corp. 7203 3.0%
    Kubota Corp. 6326 2.7%
    Ryohin Keikaku Co., Ltd. 7453 2.2%
    Fuji Seal International, Inc. 7864 1.7%
    Isuzu Motors, Ltd. 7202 1.2%
    Pigeon Corp. 7956 0.8%
    Total as % of Net Assets 92.8%
    Cash & Other Holdings % of Net Assets
    Cash & Other 7.3%
    Total as % of Net Assets 7.3%

    Country Allocation

    as of 9/30/18
    • Japan

      92.5%

    • Cash & Other

      7.5%

    Japan 92.5%
    Cash & Other 7.5%
  • Distributions

    The Hennessy Japan 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
    12/27/2017 $0.00578 -- -- $0.00578 $34.87
    12/31/2012 $0.00996 -- -- $0.00996 $15.56
    12/29/2009 $0.02420 -- -- $0.02420 $11.70
    12/18/2008 $0.03490 -- -- $0.03490 $10.25
    12/09/2005 $0.55072 $0.14355 $0.02477 $0.71904 $18.49
    12/17/2004 $0.71197 -- -- $0.71197 $12.85

    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 Fund Fact Sheet
    Japan Fund Portfolio Manager Commentary View
    Japan Fund Summary Prospectus
    Full Prospectus
    Statement of Additional Information
    Shareholder Reports
    Japan Fund Semi-Annual Report
    Japan Fund Annual Report