Edgar Filing: JAPAN SMALLER CAPITALIZATION FUND INC

efc14-281_fmnq.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-05992

JAPAN SMALLER CAPITALIZATION FUND, INC.

(Exact name of registrant as specified in charter)

Worldwide Plaza

309 West 49th Street

New York, New York 10019

(Address of principal executive offices)

Yutaka Itabashi

Worldwide Plaza

309 West 49th Street

New York, New York 10019

(Name and address of agent for service)

Registrant’s telephone number, including area code: (800) 833-0018

Date of fiscal year end: February 28, 2014

Date of reporting period: September 1, 2013 - November 30, 2013

JAPAN SMALLER CAPITALIZATION FUND, INC.

SCHEDULE OF INVESTMENTS

November 30, 2013

										% of
					Market		Unrealized			Net
	Shares		Cost		Value		Gain or Loss			Assets
JAPANESE EQUITY SECURITIES
Banks
Akita Bank, Ltd.		1,043,000	$	2,823,729	$	2,758,802	$	(64,927	)		1.0
General banking services
The Kagoshima Bank, Ltd.		721,000		4,897,424		4,623,464		(273,960	)		1.6
General banking services
The Tochigi Bank, Ltd.		785,000		2,909,436		3,011,127		101,691			1.1
Commercial banking services
The Yamanashi Chuo Bank, Ltd.		1,214,000		5,328,607		5,189,908		(138,699	)		1.8
Commercial banking services
Total Banks				15,959,196		15,583,301		(375,895	)		5.5

Chemicals
C. Uyemura & Co., Ltd.		101,400		4,377,655		4,349,745		(27,910	)		1.5
Plating chemicals
Fujikura Kasei Co., Ltd.		607,900		2,747,434		3,227,735		480,301			1.1
Specialty coating materials and fine chemicals
Sakai Chemical Industry Co., Ltd.		2,818,000		8,709,928		8,856,532		146,604			3.1
Titanium oxide, polyvinyl chloride stabilizers, and pharmaceuticals
Tenma Corporation		356,400		4,538,576		4,511,745		(26,831	)		1.6
Molded resin products
Total Chemicals				20,373,593		20,945,757		572,164			7.3

Construction
Hibiya Engineering, Ltd.		263,200		2,742,861		3,054,461		311,600			1.1
Facility construction
MIRAIT Holdings Corporation		506,600		4,367,360		4,301,811		(65,549	)		1.5
Telecommunication engineering
Nippon Densetsu Kogyo Co., Ltd.		281,000		2,975,899		3,403,650		427,751			1.2
Installs and maintains communication equipment for railroad companies
Toenec Corporation		792,000		4,334,704		4,661,324		326,620			1.6
Constructs comprehensive building facilities
Total Construction				14,420,824		15,421,246		1,000,422			5.4

Electric Appliances
Espec Corp		552,700		4,186,751		4,369,596		182,845			1.5
Meteorological testing devices
Zojirushi Corporation		733,000		2,672,314		2,732,966		60,652			1.0
Household appliances
Total Electric Appliances				6,859,065		7,102,562		243,497			2.5

Financing Business
Hitachi Capital Corporation		107,000		2,340,868		3,082,953		742,085			1.1
Financial services
Total Financing Business				2,340,868		3,082,953		742,085			1.1

Food
Fuji Oil Co., Ltd.		259,200		4,480,280		4,189,500		(290,780	)		1.5
Palm oil and coconut oil
Total Foods				4,480,280		4,189,500		(290,780	)		1.5

Information and Communication
Broadleaf Co., Ltd.		148,200		2,355,200		2,891,531		536,331			1.0
Business software development, sales, and technical support
NS Solutions Corporation		341,200		6,608,518		7,802,758		1,194,240			2.7
System consulting services and software development
Okinawa Cellular Telephone Company		118,800		2,972,394		2,970,725		(1,669	)		1.0
Cellular and car phone services
Total Information and Communication				11,936,112		13,665,014		1,728,902			4.7

										% of
					Market		Unrealized			Net
	Shares		Cost		Value		Gain or Loss			Assets
Iron and Steel
Nichia Steel Works, Ltd.		1,005,000	$	3,448,646	$	3,501,879	$	53,233			1.2
Produces and sells steel products
Nippon Seisen Co., Ltd.		671,000		3,083,931		3,051,935		(31,996	)		1.1
Secondary products of stainless steel wires
Osaka Steel Co., Ltd.		214,600		3,923,376		3,824,700		(98,676	)		1.3
Electric furnace steelmaker
Total Iron and Steel				10,455,953		10,378,514		(77,439	)		3.6

Machinery
Sintokogio, Ltd.		515,400		3,957,547		4,044,523		86,976			1.4
Engineering equipment
Total Machinery				3,957,547		4,044,523		86,976			1.4

Pharmaceutical
Rohto Pharmaceutical Co., Ltd.		304,000		3,516,588		4,839,432		1,322,844			1.7
Pharmaceuticals manufacturer
Total Pharmaceutical				3,516,588		4,839,432		1,322,844			1.7

Real Estate
Keihanshin Bulding Co., Ltd.		695,500		3,924,534		3,740,379		(184,155	)		1.3
Real estate leasing and building management
Total Real Estate				3,924,534		3,740,379		(184,155	)		1.3

Retail Trade
Arc Land Sakamoto Co., Ltd.		206,300		3,382,879		3,119,015		(263,864	)		1.1
Operates home centers
Heiwado Co., Ltd.		199,600		2,506,913		2,928,103		421,190			1.0
Supermarkets
Nitori Co., Ltd.		37,200		3,083,835		3,445,688		361,853			1.2
Furniture store chain
Shimamura Co., Ltd.		27,800		3,289,994		2,851,769		(438,225	)		1.0
Clothing chain
San-A Co., Ltd.		159,200		4,092,199		4,330,588		238,389			1.5
Housing related goods and groceries
Total Retail Trade				16,355,820		16,675,163		319,343			5.8

Textiles and Apparel
Hogy Medical Co., Ltd.		56,300		2,457,593		2,961,856		504,263			1.0
Medical supply products
Total Textiles and Apparel				2,457,593		2,961,856		504,263			1.0

Transportation and Warehousing
Japan Transcity Corporation		1,238,000		4,217,485		4,120,424		(97,061	)		1.4
Warehousing and transportation services
Kintetsu World Express Inc.		99,400		3,005,352		3,875,877		870,525			1.4
Distribution services
Trancom Co., Ltd.		103,400		3,024,447		3,163,916		139,469			1.1
Logistics services
Total Transportation and Warehousing				10,247,284		11,160,217		912,933			3.9

Transportation Equipment
Sanoh Industrial Co., Ltd.		372,300		2,751,645		2,732,610		(19,035	)		1.0
Tubes, wires and electrical products
Tachi-S Co., Ltd.		395,200		6,705,798		5,828,385		(877,413	)		2.0
Child transformation seats, seat components, and rotating units
Total Transportation Equipment				9,457,443		8,560,995		(896,448	)		3.0

Wholesale Trade
Paltac Corporation		246,200		2,940,804		3,316,149		375,345			1.2
Daily necessities

										% of
					Market		Unrealized			Net
	Shares		Cost		Value		Gain or Loss			Assets
Siix Corporation		300,400	$	3,969,867	$	3,682,616	$	(287,251	)		1.3
Video, audio, and office equipment
Ryoden Trading Company, Ltd.		809,000		5,492,187		5,464,135		(28,052	)		1.9
Electronic components
Total Wholesale Trade				12,402,858		12,462,900		60,042			4.4

TOTAL INVESTMENTS IN JAPANESE EQUITY SECURITIES				149,145,558		154,814,312		5,668,754			54.1

INVESTMENTS IN FOREIGN CURRENCY
Japanese Yen
Non- interest bearing account				6,495,014		6,407,953		(87,061	)		2.3
TOTAL INVESTMENTS IN FOREIGN CURRENCY				6,495,014		6,407,953		(87,061	)		2.3

TOTAL INVESTMENTS				155,640,572		161,222,265		5,581,693			56.4

OTHER ASSETS LESS LIABILITIES, NET						124,198,097					43.6

NET ASSETS						285,420,362					100.0

Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost was $8,884,807
Aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value was $3,216,053

Portfolio securities and foreign currency holdings were translated at the

following exchange rate as of November 30, 2013

Japanese Yen

102.455

=$1.00

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/ Yutaka Itabashi

Yutaka Itabashi, President

(Principal Executive Officer)

Date: February 24, 2014

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/ Yutaka Itabashi

Yutaka Itabashi, President

(Principal Executive Officer)

Date: February 24, 2014

By: /s/ Amy J. Marose

Amy J. Marose, Treasurer

(Principal Financial Officer)

Date: February 24, 2014