UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number: 811-08002
JAPAN SMALLER CAPITALIZATION FUND, INC.
2 World Financial Center, Building B, New York, N.Y. 10281
Nomura Asset Management U.S.A. Inc.
2 World Financial Center, Building B, New York, N.Y. 10281
Registrant's telephone number, including area code: (800) 833-0018
Date of fiscal year end: February 28, 2007
Date of reporting period: August 31, 2006
ITEM 1. REPORT TO SHAREHOLDERS
------------------------------------------------------------------------------
ITEM 2. CODE OF ETHICS
------------------------------------------------------------------------------
Not Applicable to this semi-annual report
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
------------------------------------------------------------------------------
Not Applicable to this semi-annual report
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
------------------------------------------------------------------------------
Not Applicable to this semi-annual report
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
------------------------------------------------------------------------------
Not Applicable to this semi-annual report
ITEM 6. SCHEDULE OF INVESTMENTS
------------------------------------------------------------------------------
Not Applicable
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
------------------------------------------------------------------------------
Not Applicable to this semi-annual report
ITEM 8. PORTFILIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
------------------------------------------------------------------------------
(a) Not applicable
(b)
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS
------------------------------------------------------------------------------
(a) Not applicable
(b) Not applicable
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
------------------------------------------------------------------------------
Not Applicable
ITEM 11. CONTROLS AND PROCEDURES
------------------------------------------------------------------------------
The Registrant's Principal Executive Officer and Principal Financial Officer
have evaluated the Registrant's disclosure controls and procedures within 90
days of the filing of this report and have concluded that they are effective
in providing reasonable assurance that the information required to be
disclosed by the Registrant in its reports or statements filed under the 1934
Act is recorded, processed, summarized and reported within the time periods
specified in the rules and forms of the Securities and Exchange Commission.
There were no changes in the Registrant's internal control over financial
reporting that occurred during the Registrant's last fiscal half-year (the
Registrant's second fiscal half-year in the case of an annual report) that
have materially affected, or are reasonably likely to materially affect, the
Registrant's internal control over financial reporting.
2
ITEM 12. EXHIBITS
------------------------------------------------------------------------------
(a)(1) Code of Ethics for Principal Executive and Senior Financial
Officers.
(a)(2) Certifications of Principal Executive Officer and Principal
Financial Officer pursuant to Rule 30a-2 under the Investment Company
Act of 1940 are attached hereto as an exhibit.
(a)(3) Not applicable.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
are furnished herewith as an exhibit.
3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the Registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.
Japan Smaller Capitalization Fund, Inc.
By: /s/ Hiroshi Terasaki
----------------------------------
Hiroshi Terasaki
(Principal Executive Officer)
Date: November 9, 2006
----------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the Registrant and in the capacities and on the
dates indicated.
By: /s/ Rita Chopra-Brathwaite
----------------------------------
Rita Chopra-Brathwaite, Treasurer
(Principal Financial Officer)
Date: November 6, 2006
----------------------------------
4
Exhibit (a)(1)
NOMURA FUNDS
CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND
SENIOR FINANCIAL OFFICERS
August 6, 2003
I. Covered Officers and Purposes of the Code
This Nomura Funds Code of Ethics for Principal Executive and Senior
Financial Officers (the "Code") for the investment companies listed in Exhibit
A (collectively, "Funds" and each, "Company") applies to the Company's
Principal Executive Officer and Senior Financial Officers (the "Covered
Officers"), each of whom is set forth in Exhibit B, for the purpose of
promoting:
o Honest and ethical conduct, including the ethical handling of
actual or apparent conflicts of interest between personal and
professional relationships;
o Full, fair, accurate, timely and understandable disclosure in
reports and documents that a registrant files with, or submits to,
the Securities and Exchange Commission ("SEC") and in other public
communications made by the Company;
o Compliance with applicable laws and governmental rules and
regulations;
o The prompt internal reporting of violations of the Code to an
appropriate person or persons identified in the Code; and
o Accountability for adherence to the Code.
Covered Officers should adhere to a high standard of business ethics and
should avoid placing themselves in a "compromising position" where their
interests may be, or appear to be, in conflict with those of the Company and
its shareholders.
II. Covered Officers Should Handle Ethically Actual and Apparent Conflicts
of Interest
A Covered Officer must not engage in any activity that could result in
an actual, potential or perceived conflict of interest. Such a "conflict of
interest" arises if a Covered Officer represents the Company in any activity
or transaction and the personal interests of the Covered Officer might affect
his or her ability to represent the Funds' interests fairly and impartially. A
Covered Officer must not knowingly and voluntarily permit himself or herself
to be placed in a position where his or her interests may become adverse to
the Funds.
Certain conflicts of interest arise out of the relationships between
Covered Officers and the Company and already are subject to conflict of
interest provisions in the Investment Company Act of 1940 ("Investment Company
Act") and the Investment Advisers Act of 1940 ("Advisers Act"). For example,
Covered Officers may not individually engage in certain transactions (such as
the purchase or sale of securities or other property) with the Company because
of their status as "affiliated persons" of the Company. The compliance
programs of the Funds and their investment manager, Nomura Asset Management
U.S.A. Inc. ("NAM-USA"), are designed to prevent, or identify and correct,
violations of these provisions. This Code is not intended to, repeat or
replace these programs and procedures, and such conflicts that fall outside of
the parameters of this Code.
5
Although typically not presenting an opportunity for improper personal
benefit, conflicts arise from, or as a result of, the contractual relationship
between the Company and NAM-USA, of which Covered Officers are also officers
or employees. As a result, the Code recognizes that Covered Officers will, in
the normal course of their duties (whether formally for the Company or for
NAM-USA, or for both), be involved in establishing policies and implementing
decisions that will have different effects on NAM-USA and the Company. The
participation of Covered Officers in such activities is inherent in the
contractual relationship between the Company and NAM-USA and is consistent
with the performance by Covered Officers of their duties as officers of the
Company. Thus, if performed in conformity with the provisions of the
Investment Company Act and the Advisers Act, such activities will be deemed to
have been handled ethically. In addition, it is recognized by the Funds'
Boards of Directors (collectively, the "Board") that Covered Officers may also
be officers or employees of one or more other investment companies covered by
this or other codes.
Other conflicts of interest are covered by the Code, even if such
conflicts of interest are not subject to provisions in the Investment Company
Act and the Advisers Act. The following list provides examples of conflicts of
interest under the Code, but Covered Officers should keep in mind that these
examples are not exhaustive. The overarching principle is that the personal
interest of a Covered Officer should not be placed improperly before the
interest of the Company.
Each Covered Officer must:
o Not use his or her personal influence or personal relationship
improperly to influence investment decisions or financial
reporting by the Company whereby the Covered Officer would benefit
personally to the detriment of the Company;
o Not cause the Company to take action, or fail to take action, for
the individual personal benefit of the Covered Officer rather than
the benefit of the Company;
o Not use material non-public knowledge of portfolio transactions
made or contemplated for the Company to trade personally or cause
others to trade personally in contemplation of the market effect
of such transactions;
o Never accept compensation in any form from any person or entity
for directing Company business to such person or entity or for
accepting business on behalf of the Company. All placements of
Company business and acceptances of business by the Company must
be awarded purely upon business considerations.
These are some conflict of interest situations that should always be
approved by the NAM-USA Compliance Department:
o Service as a director, trustee, officer, owner or partner of, or
as a consultant or independent contractor to, any publicly or
privately owned business organization, regardless of whether
compensation of any form is received;
o It must be remembered that business relationships cannot always be
separated from personal relationships and that the integrity of a
business relationship is always susceptible to criticism in
hindsight where gifts are received;
o The receipt of any gifts or entertainment from any company with
which the Company has current or prospective business dealings
unless such gifts or entertainment are
6
business-related, reasonable in cost, appropriate as to time and
place, and not so frequent as to raise any question of
impropriety;
o The giving of gifts or entertainment to a Company shareholder,
service provider, supplier or other Company business contact.
Covered Officers must use careful judgment to ascertain that the
matter is handled in good taste without excessive expense;
o A direct or indirect financial interest in commissions,
transaction charges or spreads paid by the Company for effecting
portfolio transactions or for selling or redeeming shares other
than an interest arising from the Covered Officer's employment,
such as compensation or equity ownership.
III. Disclosure and Compliance
o Each Covered Officer should familiarize himself with the
disclosure requirements generally applicable to the Company;
o Each Covered Officer should not knowingly misrepresent, or cause
others to misrepresent, facts about the Company to others, whether
within or outside the Company, including to the Company's
directors and auditors, and to governmental regulators and
self-regulatory organizations;
o Each Covered Officer should, to the extent appropriate within his
area of responsibility, consult with other officers and employees
of the Funds and NAM-USA with the goal of promoting full, fair,
accurate, timely and understandable disclosure in the reports and
documents the Funds file with, or submit to, the SEC and in other
public communications made by the Funds; and
o It is the responsibility of each Covered Officer to promote
compliance with the standards and restrictions imposed by
applicable laws, rules and regulations.
IV. Reporting and Accountability
Each Covered Officer must:
o Upon adoption of the Code (or thereafter as applicable, upon
becoming a Covered Officer) affirm in writing that he or she has
received, read and understands the Code. The form for this purpose
is attached to the Code as Exhibit 3;
o Annually thereafter affirm that he or she has complied with the
requirements of the Code. The document for this purpose is
attached to the Code as Exhibit 4;
o Not retaliate against any other Covered Officer or any employee of
the Funds or their affiliated persons for reports of potential
violations that are made in good faith; and
o Notify the NAM-USA Compliance Department promptly, on a
confidential basis, if he or she knows of any violations of this
Code. Failure to do so is itself a violation of this Code.
The Compliance Officer of NAM-USA is responsible for applying and
interpreting this Code to specific situations in which questions are
presented. However, the Board will consider any approvals or waivers sought by
Covered Officers.
7
The Funds will follow these procedures when investigating and enforcing
this Code:
o The Compliance Officer of NAM-USA will take all appropriate
actions to investigate any potential violations reported to him or
her;
o If, after such investigation, the Compliance Officer believes that
no violation occurred, the Compliance Officer is not required to
take any further action;
o Any matter that the Compliance Officer believes is a violation
will be reported to the Board;
o If the Board concurs that a violation has occurred, it will
consider appropriate action, which may include review of, and
appropriate modifications to, applicable policies and procedures;
notification to appropriate personnel of NAM-USA or its board; or
a recommendation to dismiss the Covered Officer;
o The Board will be responsible for granting waivers, as
appropriate; and
o Any changes to or waivers of this Code will, to the extent
required, be disclosed as provided by SEC rules.
V. Other Policies and Procedures
This Code shall be the sole code of ethics adopted by the Funds for
purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms
applicable to registered investment companies thereunder. Insofar as other
policies or procedures of the Funds, NAM-USA or other service providers govern
or purport to govern the behavior or activities of the Covered Officers who
are subject to this Code, they are superseded by this Code to the extent that
they overlap or conflict with the provisions of this Code. The Funds' and
NAM-USA's code of ethics under Rule 17j-1 under the Investment Company Act and
NAM-USA's more detailed policies and procedures set forth in its Compliance
Manual are separate requirements applying to the Covered Officers and others,
and are not part of this Code.
VI. Amendments
Any amendments to this Code, other than amendments to Exhibits 1 and 2,
must be approved by a majority vote of the Board, including a majority vote of
the independent directors.
VII. Confidentiality
All reports and records prepared or maintained pursuant to this Code
will be considered confidential and shall be maintained and protected
accordingly. Except as otherwise required by law or this Code or otherwise
directed by the Board upon due consideration, such matters shall not be
disclosed to anyone other than to the Board, to the appropriate Company or
NAM-USA personnel, or to legal counsel to the Company or NAM-USA.
VIII. Internal Use
The Code is intended solely for the internal use by the Funds and does
not constitute an admission, by or on behalf of any Company, as to any fact,
circumstance, or legal conclusion.
Date: August 6, 2003
8
NOMURA FUNDS
CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND
SENIOR FINANCIAL OFFICERS
Exhibit 1 - List of Nomura Funds
--------------------------------
Japan Smaller Capitalization Fund, Inc.
Korea Equity Fund, Inc.
9
NOMURA FUNDS
CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND
SENIOR FINANCIAL OFFICERS
Exhibit 2 - List of Covered Officers
------------------------------------
Hiroshi Terasaki
Rita Chopra-Brathwaite
10
NOMURA FUNDS
CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND
SENIOR FINANCIAL OFFICERS
Exhibit 3 - Certification of Receipt
------------------------------------
I hereby acknowledge that I have received and read the Nomura Funds Code of
Ethics for Principal Executive and Senior Financial Officers. I understand and
agree that, as a Covered Officer, I am subject to and will abide by its
provisions and all amendments thereto. I further undertake to obey the rules
of any regulatory body with which the Nomura Funds may be required to comply
and any addition, amendment or replacement that is set out in any written
notice which is subsequently given to me. I understand that failure to follow
such policies and procedures can result in disciplinary action by the Board of
Directors of the Nomura Funds, as well as possible civil and criminal
penalties.
-------------------------------------- ---------------
Signature Date
--------------------------------------
Print Name
11
NOMURA FUNDS
CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND
SENIOR FINANCIAL OFFICERS
Exhibit 4 - Annual Compliance Questionnaire and Certification
-------------------------------------------------------------
2003 CODE OF ETHICS
Please complete the Code of Ethics questionnaire in full, including the
information below. Please type or print very clearly.
Last or family name: _____________________________________
First or given name: _____________________________________
Middle name or initial: _____________________________________
Previous last or family name: _____________________________________
(For persons who have married and
changed their names in the past
year)
Legal name of funds in which you
serve as a Covered Officer: _____________________________________
All Covered Officers are required to complete this questionnaire once a year
to confirm their compliance with the Code of Ethics for the Principal
Executive and Senior Financial Officers of the Nomura Funds (the "Code of
Ethics").
The Code of Ethics should be read prior to answering these questions.
Should you have any questions after reading the Code of Ethics, please consult
with the Compliance Department of Nomura Asset Management U.S.A. Inc.
("NAM-USA").
----------------------------------------------------------------------------------------------------------------------
Yes, No,
or N/A
----------------------------------------------------------------------------------------------------------------------
1. Have you used your personal influence or personal relationships
improperly to influence investment decisions or financial reporting by
the Nomura Funds whereby you would benefit personally to the detriment
of the Nomura Funds?
----------------------------------------------------------------------------------------------------------------------
2. Have you caused the Nomura Funds to take action, or fail to take action,
for your personal benefit rather than the benefit of the Nomura Funds?
----------------------------------------------------------------------------------------------------------------------
3. Have you used material non-public knowledge of portfolio transactions
made or contemplated for the Nomura Funds to trade personally or cause
others to trade personally in contemplation of the market effect of such
transactions?
----------------------------------------------------------------------------------------------------------------------
12
----------------------------------------------------------------------------------------------------------------------
Yes, No,
or N/A
----------------------------------------------------------------------------------------------------------------------
4. Have you accepted compensation in any form from any person for directing
Nomura Fund business to such person or for accepting business on behalf
of the Nomura Funds?
----------------------------------------------------------------------------------------------------------------------
5. Do you serve as a director, trustee, officer, owner or partner of, as a
consultant or independent contractor to, any publicly or privately owned
business organization, regardless of whether compensation of any form is
received?
----------------------------------------------------------------------------------------------------------------------
If yes, please attach a list of such positions unless previously
approved by the NAM-USA Compliance Department pursuant to the Code of
Ethics.
----------------------------------------------------------------------------------------------------------------------
6. Have you accepted gifts or entertainment from any company with which the
Nomura Funds has current or prospective business dealings unless such
gifts or entertainment are business-related, reasonable in cost,
appropriate as to time and place, and not so frequent as to raise any
question of impropriety?
----------------------------------------------------------------------------------------------------------------------
If yes, please attach a list of such gifts or entertainment unless
previously approved by the NAM-USA Compliance Department pursuant to the
Code of Ethics.
----------------------------------------------------------------------------------------------------------------------
7. Have you given gifts or entertainment to a Company shareholder, service
provides, supplier, or other Company business contact?
----------------------------------------------------------------------------------------------------------------------
If yes, please attach a list of such gifts or entertainment unless
previously approved by the NAM-USA Compliance Department pursuant to the
Code of Ethics.
----------------------------------------------------------------------------------------------------------------------
8. Do you have a direct or indirect financial interest in commissions,
transaction charges or spreads paid by the Company for effecting
portfolio transactions or for selling or redeeming shares other than an
interest arising from your employment, such as compensation or equity
ownership? If yes, please describe.
----------------------------------------------------------------------------------------------------------------------
9. Are you aware of any cases in which service providers or suppliers have
exploited their relationships with the Nomura Funds?
----------------------------------------------------------------------------------------------------------------------
10. Are you aware, in connection with any business transactions for the
Nomura Funds, of any conduct, improper, unethical, illegal or otherwise,
on the part of any person which may be detrimental to the Nomura Funds?
----------------------------------------------------------------------------------------------------------------------
If yes, attach the details.
----------------------------------------------------------------------------------------------------------------------
If you feel that any of your responses to the above questions require comment,
please attach an explanation.
I confirm that I have read and understand the Code of Ethics and that I have
answered all of the above questions pertaining to the Code of Ethics to the
best of my ability and confirm that my answers are true.
-------------------------------------- ---------------
Signature Date
--------------------------------------
Print Name
13
Exhibit (a)(2)
Japan Smaller Capitalization Fund, Inc.
Two World Financial Center, Building B
New York, New York 10281
Telephone
(800) 833-0018
CERTIFICATIONS
--------------
I, Rita Chopra-Brathwaite, certify that:
1. I have reviewed this report on Form N-CSR of Japan Smaller
Capitalization Fund, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered
by this report;
3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material
respects the financial condition, results of operations, changes in net
assets, and cash flows (if the financial statements are required to
include a statement of cash flows) of the registrant as of, and for, the
periods presented in this report;
4. The registrant's other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Rule 30a-3(c) under the Investment Company Act of 1940) and
internal control over financial reporting (as defined in Rule 30a-3(d)
under the Investment Company Act of 1940) for the registrant and have:
a. Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the
registrant, including its consolidated subsidiaries, is made known
to us by others within those entities, particularly during the
period in which this report is being prepared;
b. Evaluated the effectiveness of the registrant's disclosure
controls and procedures and presented in this report our
conclusions about the effectiveness of the disclosure controls and
procedures, as of a date within 90 days prior to the filing date
of this report based on such evaluation; and
c. Disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the
registrant's most recent fiscal half-year (the registrant's second
fiscal half-year in the case of an annual report) that
14
has materially affected, or is reasonably likely to materially
affect, the registrant's internal control over financial
reporting; and
5. The registrant's other certifying officer(s) and I have disclosed to the
registrant's auditors and the audit committee of the registrant's board
of directors (or persons performing the equivalent functions):
a. All significant deficiencies and material weaknesses in the design
or operation of internal control over financial reporting which
are reasonably likely to adversely affect the registrant's ability
to record, process, summarize, and report financial information;
and
b. Any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's
internal control over financial reporting.
-------------------------------------------------------------------
Date: November 9, 2006
-------------------------------------------------------------------
Rita Chopra-Brathwaite
Treasurer
-------------------------------------------------------------------
15
Japan Smaller Capitalization Fund, Inc.
Two World Financial Center, Building B
New York, New York 10281
Telephone
(800) 833-0018
CERTIFICATIONS
I, Hiroshi Terasaki, certify that:
6. I have reviewed this report on Form N-CSR of Japan Smaller
Capitalization Fund, Inc.;
7. Based on my knowledge, this report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered
by this report;
8. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material
respects the financial condition, results of operations, changes in net
assets, and cash flows (if the financial statements are required to
include a statement of cash flows) of the registrant as of, and for, the
periods presented in this report;
9. The registrant's other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Rule 30a-3(c) under the Investment Company Act of 1940) and
internal control over financial reporting (as defined in Rule 30a-3(d)
under the Investment Company Act of 1940) for the registrant and have:
a. Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the
registrant, including its consolidated subsidiaries, is made known
to us by others within those entities, particularly during the
period in which this report is being prepared;
b. Evaluated the effectiveness of the registrant's disclosure
controls and procedures and presented in this report our
conclusions about the effectiveness of the disclosure controls and
procedures, as of a date within 90 days prior to the filing date
of this report based on such evaluation; and
c. Disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the
registrant's most recent fiscal half-year (the registrant's second
fiscal half-year in the case of an annual report) that
16
has materially affected, or is reasonably likely to materially
affect, the registrant's internal control over financial
reporting; and
10. The registrant's other certifying officer(s) and I have disclosed to the
registrant's auditors and the audit committee of the registrant's board
of directors (or persons performing the equivalent functions):
a. All significant deficiencies and material weaknesses in the design
or operation of internal control over financial reporting which
are reasonably likely to adversely affect the registrant's ability
to record, process, summarize, and report financial information;
and
b. Any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's
internal control over financial reporting.
------------------------------------------------------------------
Date: November 9 , 2006
------------------------------------------------------------------
Hiroshi Terasaki
President
------------------------------------------------------------------
------------------------------------------------------------------
17
Exhibit (b)
Japan Smaller Capitalization Fund, Inc.
Two World Financial Center, Building B
New York, New York 10281
Telephone
(800) 833-0018
Certification Pursuant to Section 906 of the Sarbanes Oxley Act
---------------------------------------------------------------
I, Rita Chopra-Brathwaite, certify that:
11. The Form N-CSR of the Fund (the "Report") fully complies with the
requirements of Section 13(a) or 15(d) of the Securities Exchange Act of
1934; and
12. The information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the Fund.
----------------------------------------------------------------------------
Date: November 9 , 2006
----------------------------------------------------------------------------
Rita Chopra-Brathwaite
Treasurer
----------------------------------------------------------------------------
A signed original of this written statement required by Section 906, or other
document authenticating, acknowledging, or otherwise adopting the signature
that appears in typed form within the electronic version of this written
statement required by Section 906, has been provided to Japan Smaller
Capitalization Fund, Inc. and will be retained by Japan Smaller Capitalization
Fund, Inc. and furnished to the Securities and Exchange Commission or its
staff upon request.
18
Japan Smaller Capitalization Fund, Inc.
Two World Financial Center, Building B
New York, New York 10281
Telephone
(800) 833-0018
Certification Pursuant to Section 906 of the Sarbanes Oxley Act
---------------------------------------------------------------
I, Hiroshi Terasaki, certify that:
13. The Form N-CSR of the Fund (the "Report") fully complies with the
requirements of Section 13(a) or 15(d) of the Securities Exchange Act of
1934; and
14. The information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the Fund.
---------------------------------------------------------------------
Date: November 9 , 2006
---------------------------------------------------------------------
Hiroshi Terasaki
President
---------------------------------------------------------------------
A signed original of this written statement required by Section 906, or other
document authenticating, acknowledging, or otherwise adopting the signature
that appears in typed form within the electronic version of this written
statement required by Section 906, has been provided to Japan Smaller
Capitalization Fund, Inc. and will be retained by Japan Smaller Capitalization
Fund, Inc. and furnished to the Securities and Exchange Commission or its
staff upon request.
19