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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 7/15/24-
Investor Class (HJPSX)
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NAV
$17.18
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$ Change
$0.01
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% Change
0.06%
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YTD
4.56%
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Institutional Class (HJSIX)
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NAV
$16.95
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$ Change
$0.00
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% Change
0.00%
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YTD
4.76%
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Average Annualized Total Return
as of 6/30/24Name 1 Mo YTD 1 yr 3 yr 5 yr 10 yr Since Inception (8/31/07) Investor Class (HJPSX) 0.48% 1.58% 10.24% -1.34% 3.32% 6.91% 7.89% Institutional Class (HJSIX) 0.55% 1.79% 10.71% -0.95% 3.72% 7.27% 8.10% Russell/Nomura Small Cap™ Index -0.64% -1.10% 8.64% -1.46% 2.77% 4.60% 4.56% Tokyo Stock Price Index -0.89% 5.29% 12.84% 2.40% 6.47% 5.80% 3.62% as of 6/30/24Name QTR YTD 1 yr 3 yr 5 yr 10 yr Since Inception (8/31/07) Investor Class (HJPSX) -2.23% 1.58% 10.24% -1.34% 3.32% 6.91% 7.89% Institutional Class (HJSIX) -2.08% 1.79% 10.71% -0.95% 3.72% 7.27% 8.10% Russell/Nomura Small Cap™ Index -5.38% -1.10% 8.64% -1.46% 2.77% 4.60% 4.56% Tokyo Stock Price Index -4.33% 5.29% 12.84% 2.40% 6.47% 5.80% 3.62% Hypothetical Growth of $10,000
as of 6/30/2024Value of $10,000 invested between 6/30/2023 and 6/30/2024
Japan Small Cap Fund (HJPSX) $11,024 Japan Small Cap Fund (HJSIX) $11,071 Russell/Nomura Small Cap™ Index $10,864 Tokyo Stock Price Index $11,284 Value of $10,000 invested between 6/30/2021 and 6/30/2024
Japan Small Cap Fund (HJPSX) $9,604 Japan Small Cap Fund (HJSIX) $9,717 Russell/Nomura Small Cap™ Index $9,570 Tokyo Stock Price Index $10,723 Value of $10,000 invested between 6/30/2019 and 6/30/2024
Japan Small Cap Fund (HJPSX) $11,772 Japan Small Cap Fund (HJSIX) $12,001 Russell/Nomura Small Cap™ Index $11,461 Tokyo Stock Price Index $13,702 Value of $10,000 invested between 6/30/2014 and 6/30/2024
Japan Small Cap Fund (HJPSX) $19,515 Japan Small Cap Fund (HJSIX) $20,180 Russell/Nomura Small Cap™ Index $15,411 Tokyo Stock Price Index $17,602 Value of $10,000 invested between 8/31/2007 and 6/30/2024
Japan Small Cap Fund (HJPSX) $35,887 Japan Small Cap Fund (HJSIX) $37,111 Russell/Nomura Small Cap™ Index $20,823 Tokyo Stock Price Index $18,217 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 6/30/24Investor Class (HJPSX)Type 3 yr 5 yr 10 yr Alpha 0.07 0.69 2.41 Beta 0.97 1.03 0.96 Upside Capture 90.35 99.56 101.48 Downside Capture 90.74 96.82 88.54 Institutional Class (HJSIX)Type 3 yr 5 yr 10 yr Alpha 0.45 1.07 2.75 Beta 0.97 1.03 0.96 Upside Capture 91.24 100.38 102.29 Downside Capture 89.68 95.78 87.51 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 6/30/24Type 3 yr 5 yr 10 yr Investor Class (HJPSX) -0.26 0.14 0.43 Institutional Class (HJSIX) -0.23 0.16 0.46 Russell/Nomura Small Cap™ Index -0.28 0.10 0.28 Japan Stock Category Average 0.17 0.44 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 6/30/24Type 3 yr 5 yr 10 yr Investor Class (HJPSX) 14.62 16.38 14.08 Institutional Class (HJSIX) 14.61 16.38 14.08 Russell/Nomura Small Cap™ Index 14.22 15.03 13.54 Japan Stock Category Average 13.80 14.37 12.85 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 6/30/24. 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 6/30/24Inception Date (HJPSX) 8/31/07 Inception Date (HJSIX) 6/15/15 Total Fund Assets $113 Million Active Share vs. Russell/Nomura Small Cap™ Index 94% Portfolio Turnover 37% Median Market Cap $0.8 Billion Median Price/Earnings 14.5x Median Price/Book 1.3x 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 6/30/24Fund Russell/Nomura Small Cap™ Index Difference Industrials 40.3% 26.0% +14.4% Consumer Discretionary 13.5% 15.7% -2.1% Information Technology 12.6% 14.4% -1.8% Materials 7.7% 11.3% -3.6% Consumer Staples 5.2% 9.8% -4.6% Health Care 5.0% 5.7% -0.7% Real Estate 4.9% 1.6% +3.3% Financials 4.1% 9.1% -5.0% Communication Services 0.9% 4.4% -3.4% Energy 0.7% 0.5% +0.1% Utilities 0.6% 1.7% -1.1% Cash & Other 4.6% Portfolio Holdings
Top 10 Holdings
as of 6/30/24% of Net Assets Top 10 Holdings Ticker Current Vs. 1Q24 Vs. 2Q23 10-Year Holdings History (%) Time Held Daihen Corp. 6622 2.87% -0.35% +0.87% 8 Years Takasago Thermal Engineering Corp. 1969 2.41% +0.23% +0.87% 2 Years The Musashino Bank, Ltd. 8336 2.29% +0.27% +0.54% 3 Years Relo Group, Inc. 8876 2.25% +1.77% +2.25% < 1 Year Penta-Ocean Construction Co., Ltd. 1893 2.22% +0.84% +1.13% 2 Years Amada Co., Ltd. 6113 2.15% +0.08% +0.25% 2 Years Nihon Kohden Corp. 6849 2.09% +0.30% +0.09% 3 Years Tsukishima Holdings Co., Ltd. 6332 2.07% +0.12% +0.13% 2 Years Japan Pile Corp. 5288 1.99% +0.01% +0.55% 9 Years Tadano Ltd. 6395 1.97% 0.00% -0.07% 2 Years Total as % of Net Assets 22.31% Total Holdings: 64
as of 3/31/24Please 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. 1Q24 Vs. 2Q23 10-Year Holdings History (%) Time Held Daihen Corp. 3.22% -0.35% +0.87% 8 Years Towa Corp. 2.83% -1.56% -0.76% 5 Years Tokyo Ohka Kogyo Co., Ltd. 2.62% -0.71% -0.05% 5 Years Takasago Thermal Engineering Corp. 2.18% +0.23% +0.87% 2 Years Amada Co., Ltd. 2.07% +0.08% +0.25% 2 Years The Musashino Bank, Ltd. 2.02% +0.27% +0.54% 3 Years Japan Pile Corp. 1.98% +0.01% +0.55% 9 Years Tadano Ltd. 1.97% 0.00% -0.07% 2 Years Tsukishima Holdings Co., Ltd. 1.95% +0.12% +0.13% 2 Years J Front Retailing Co., Ltd. 1.90% +0.02% +0.18% 1 Year NEC Networks & System Integrated 1.90% -0.03% +0.12% 1 Year Integrated Design & Engineering Holdings Co., Ltd. 1.89% -0.01% +1.88% 1 Year Tosei Corp. 1.86% +0.05% +0.33% 5 Years Mitsubishi Logisnext Co., Ltd. 1.84% -0.22% -0.25% 7 Years Maeda Kosen Co., Ltd. 1.84% -0.10% +0.21% 1 Year Mimaki Engineering Co., Ltd. 1.83% +0.13% +0.23% 8 Years Kyudenko Corporation 1.83% -0.09% +1.26% 1 Year Nihon Kohden Corp. 1.79% +0.30% +0.09% 3 Years Siix Corp. 1.76% -0.43% -0.48% 4 Years Cosmos Pharmaceutical Corp. 1.71% -0.15% +1.56% < 1 Year Saizeriya Co., Ltd. 1.71% +0.10% -0.03% 6 Years Nishi-Nippon Financial Holdings, Inc. 1.65% +0.13% +1.78% 1 Year Nishimoto Co., Ltd. 1.60% -0.46% -0.67% 6 Years Topre Corp. 1.56% -0.26% +1.30% 1 Year Ariake Japan Co., Ltd. 1.56% 0.00% +0.95% 1 Year Nissei ASB Machine Co., Ltd. 1.55% +0.13% +0.25% 2 Years Treasure Factory Co., Ltd. 1.52% +0.41% +1.93% < 1 Year Keihan Holdings Co., Ltd. 1.44% -0.19% -0.30% 1 Year Tanseisha Co., Ltd. 1.44% +0.22% +0.15% 3 Years TRE Holdings Corp. 1.40% +0.13% +0.21% 2 Years Penta-Ocean Construction Co., Ltd. 1.38% +0.84% +1.13% 2 Years SBS Holdings, Inc. 1.36% +0.06% -0.55% 14 Years Nichiha Corp. 1.34% +0.02% +0.05% 4 Years Tocalo Co., Ltd. 1.34% +0.23% +1.04% 12 Years Tsubakimoto Chain Co. 1.32% +0.31% -0.36% 3 Years Onward Holdings Co., Ltd. 1.31% +0.23% +0.53% 1 Year Musashi Seimitsu Industry Co. Ltd. 1.31% +0.52% -0.10% 4 Years Ship Healthcare Holdings, Inc. 1.27% -1.27% -1.69% 8 Years Aeon Fantasy Co., Ltd. 1.18% -0.04% -0.66% 2 Years Nippon Signal Company Ltd. 1.17% +0.04% -0.42% 6 Years Hanwa Co., Ltd. 1.12% +0.06% +0.18% 11 Years Gakujo Co., Ltd. 1.11% +0.09% +1.20% < 1 Year Toyobo Co., Ltd. 1.09% -0.05% +1.04% 1 Year PeptiDream, Inc. 1.05% +0.81% +0.59% 1 Year Glory Ltd. 1.04% -1.04% -1.73% 2 Years WingArc1st, Inc. 1.04% -0.10% 0.00% 2 Years Creek & River Co., Ltd. 1.04% -0.07% -0.24% 3 Years Macnica Holdings, Inc. 1.03% -0.09% -0.06% 6 Years Trusco Nakayama Corp. 0.98% +0.20% +1.18% < 1 Year Koshidaka Holdings Co., Ltd. 0.95% +0.25% +1.20% < 1 Year Nabtesco Corp. 0.93% +0.40% +1.33% < 1 Year Nojima Corp. 0.90% -0.03% -1.03% 5 Years Kanamoto Co., Ltd. 0.90% +0.09% +0.99% < 1 Year Furukawa Co., Ltd. 0.89% +0.04% +0.93% 1 Year Raksul, Inc. 0.87% -0.10% +0.77% 1 Year Nittoku Co., Ltd. 0.87% -0.11% -0.48% 2 Years Macromill, Inc. 0.85% +0.09% -0.14% 2 Years Daicel Corporation 0.80% +0.22% +1.02% 1 Year Star Mica Holdings Co. Ltd. 0.73% +0.03% +0.07% 5 Years Maxell, Ltd. 0.72% -0.72% -1.86% 1 Year EF-ON, Inc. 0.59% -0.03% -0.33% 6 Years Iwatani Corp. 0.57% +0.09% -1.71% 4 Years Future Corp. 0.55% +0.82% +1.37% < 1 Year Relo Group, Inc. 0.48% +1.77% +2.25% < 1 Year Total as % of Net Assets 90.5% Cash & Other Holdings % of Net Assets Cash & Other 9.5% Total as % of Net Assets 9.5% Country Allocation
as of 6/30/24-
Japan
95.4%
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Cash & Other
4.6%
Japan 95.4% Cash & Other 4.6% -
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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 12/27/2023 $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 - June 2024 View Japan Small Cap Fund Portfolio Update - May 2024 View Japan Small Cap Fund Portfolio Update - April 2024 View Japan Small Cap Fund Portfolio Update - March 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.