Item 1. Schedule of Investments

Japan Smaller Capitalization Fund, Inc.

November 30, 2016 (Unaudited)

The Akita Bank, Ltd.

1,014,000

3,273,114

General banking services

The Bank of Saga Ltd.

443,000

1,073,446

General banking services

The Taiko Bank, Ltd.

1,322,000

3,029,909

General banking services

The Yamanashi Chuo Bank, Ltd.

740,000

3,275,511

General banking services

Total Banks (3.2%)

10,651,980

Chemicals

C. Uyemura &  Co., Ltd.

136,400

5,506,592

Plating chemicals

Fujikura Kasei Co., Ltd.

711,300

3,814,258

Specialty coating materials and fine chemicals

Fuso Chemical Co., Ltd.

10,500

233,486

Manufactures fruit acids, electronic and functional chemical products

Koatsu Gas Kogyo Co., Ltd.

448,000

2,798,163

High-pressured gases and chemicals

Sakai Chemical Industry Co., Ltd.

2,515,000

7,876,219

Manufactures components for cosmetics and pharmaceuticals

Sekisui Jushi Corporation

242,800

3,682,939

Manufactures plastics and other resin materials

Shikoku Chemicals Corporation

41,000

359,017

Manufactures chemical products

Soken Chemical & Engineering Co., Ltd.

155,200

1,565,373

Manufactures chemical products

Takiron Co., Ltd.

459,000

2,019,656

Manufactures resin and composite products

Tenma Corporation

224,300

3,643,661

Manufactures synthetic resin products

Teraoka Seisakusho Co., Ltd.

384,600

1,241,459

Manufactures various adhesive tapes

T&K Toka Co., Ltd.

128,900

1,088,121

Manufactures specialized inks for printing applications

Yushiro Chemical Industry Co., Ltd.

136,900

1,676,595

Manufactures metalworking fluids

Zeon Corporation

232,000

2,084,276

Manufactures synthetic resin products

Total Chemicals (11.1%)

37,589,815

Construction

Daiichi Kensetsu Corporation

21,300

219,121

Construction and real estate businesses

Mirai Industry Co., Ltd.

35,700

460,635

Manufactures electrical installation materials

MIRAIT Holdings Corporation

1,233,200

11,812,571

Construction of electrical and telecommunication facilities

Taihei Dengyo Kaisha, Ltd.

223,000

2,163,382

Construction of thermal and nuclear plant facilities

Toenec Corporation

1,494,000

6,965,858

Construction of comprehensive building facilities

Yondenko Corporation

260,000

993,920

Construction of electrical distribution systems

Total Construction (6.7%)

22,615,487

Electronic Appliances

Espec Corp.

265,400

2,909,034

Manufactures environmental testing products

Hitachi Maxell, Ltd.

182,700

3,204,422

Manufactures media devices, batteries and electrical appliances

Hosiden Corporation

181,300

1,482,881

Manufactures electronic components

Kitagawa Industries Co., Ltd.

352,000

3,085,369

Manufactures various industrial and consumer products

Koito Manufacturing Co., Ltd.

72,000

3,753,838

Manufactures lighting equipment

Kyowa Electronic Instruments Co., Ltd.

3,200

11,197

Manufactures electrical measuring instruments

Nichicon Corporation

486,600

4,226,863

Manufactures capacitors and transformers

Nihon Kohden Corporation

78,000

1,750,846

Manufactures medical electronic equipment

Shindengen Electric Manufacturing Co., Ltd.

266,000

1,007,549

Manufactures semiconductor products, electrical components, and power supplies

Total Electronic Appliances (6.4%)

21,431,999

Financing Business

Hitachi Capital Corporation

96,900

2,375,138

General financial services

Ricoh Leasing Company, Ltd.

165,700

5,073,262

Leasing and financial services

Total Financing Business (2.2%)

7,448,400

Food

Taiyo Kagaku Co., Ltd.

55,300

394,741

General food manufacturer

Total Food (0.1%)

394,741

Information and Communication

NS Solutions Corporation

8,900

169,179

System consulting services and software development

OBIC Co., Ltd.

71,000

3,124,087

Computer system integration

Okinawa Cellular Telephone Company

168,100

5,161,449

Telecommunications

Otsuka Corporation

78,900

3,844,404

Computer information system developer

Software Service Inc.

4,400

168,202

Provides medical information systems

Total Information and Communication (3.7%)

12,467,321

.

Iron and Steel

Chubu Steel Plate Co., Ltd.

672,700

3,583,732

Manufactures steel-related products

Mory Industries Inc.

296,300

4,999,892

Manufactures steel tubing products

Nichia Steel Works, Ltd.

2,007,600

4,759,302

Manufactures steel-related products

Nippon Seisen Co., Ltd.

601,000

2,817,968

Manufactures stainless steel wires and metal fibers

Osaka Steel Co., Ltd.

363,600

6,631,728

Manufactures steel-related products

Total Iron and Steel (6.8%)

22,792,622

Machinery

Hisaka Works, Ltd.

836,400

5,963,051

Manufactures heat exchangers and other machinery

Miura Co., Ltd.

108,700

1,641,221

Manufactures boilers and related products

Nippon Pillar Packing Co., Ltd.

310,000

3,305,690

Manufactures mechanical seals

Nissei ASB Machine Co., Ltd.

10,500

218,055

Manufactures stretch blow molding machines

Nissei Corporation

25,200

210,303

Manufactures reducers and gears

Nitto Kohki Co., Ltd.

109,000

2,337,042

Manufactures machine tools and motor pumps

Oiles Corporation

382,580

6,914,318

Manufactures bearing equipment

Sato Holdings Corporation

78,900

1,558,467

Manufactures electronic printers and other products

Shibuya Kogyo Co., Ltd.

32,700

635,035

Engaged in the packing plant business

Tsubakimoto Chain Co.

129,000

1,015,615

Manufactures chains for power transmission and other transportation components

Yamashin-Filter Corporation

27,700

242,313

Manufactures filters

Total Machinery (7.1%)

24,041,110

Metal Products

Dainichi Co., Ltd.

285,800

1,835,081

Manufactures oil heating equipment

Neturen Co., Ltd.

637,600

5,064,434

Manufactures steel bars and induction heating equipment

NHK Spring Co., Ltd.

250,100

2,345,337

Manufactures automobile-related products

Piolax, Inc.

60,900

3,659,913

Manufactures automobile-related products

Rinnai Corporation

19,400

1,651,244

Manufactures heating appliances and components

Total Metal Products (4.3%)

14,556,009

Other Products

Fuji Seal International, Inc.

73,000

2,956,655

Packaging-related materials and machinery

Nishikawa Rubber Co., Ltd.

328,700

4,543,113

Manufactures rubber automobile parts

Nissha Printing Co., Ltd.

3,200

67,827

Manufactures various materials and devices

Pigeon Corporation

65,500

1,651,896

Manufactures baby care products

The Pack Corporation

96,400

2,183,262

Manufactures paper and chemical products

Total Other Products (3.4%)

11,402,753

Precision Instruments

Nakanishi Inc.

46,000

1,690,067

Manufactures dental instruments

Total Precision Instruments (0.5%)

1,690,067

Real Estate

Daibiru Corporation

294,100

2,621,597

Real estate leasing and building management

Heiwa Real Estate Co., Ltd.

59,400

849,054

Leasing, development and management of real estate

Keihanshin Building Co., Ltd.

1,032,200

5,282,220

Real estate leasing and building management

Sanyo Housing Nagoya Co., Ltd.

211,600

1,834,366

Designs and constructs housing

Starts Corporation Inc.

89,700

1,636,830

Construction, leasing and management of real estate

Total Real Estate (3.6%)

12,224,067

Retail Trade

ABC-Mart, Inc.

52,100

3,058,138

Retail sales of shoes

AIN Pharmaciez Inc.

2,400

167,747

Operates pharmacies and drug store chains

Amiyaki Tei Co., Ltd.

147,100

5,102,143

Operates barbecue restaurant chains

Arc Land Sakamoto Co., Ltd.

442,600

5,141,694

Retail sales, wholesale, food and real estate

68,800

1,460,680

Operates pharmacies and drug store chains

Daikokutenbussan Co., Ltd.

71,200

3,058,146

Operates supermarkets

Heiwado Co., Ltd.

2,800

55,429

Operates supermarkets

Hiday Hidaka Corp

80,043

1,891,232

Operates restaurant chains

Jin Co., Ltd.

51,100

2,143,415

Retail sales of eyewear and fashion accessories

Saint Marc Holdings Co., Ltd.

89,000

2,756,069

Operates restaurant chains

San-A Co., Ltd.

1,000

48,200

Retail sales of home goods

Seria Co., Ltd.

32,600

2,344,154

Discount retail sales

Start Today Co., Ltd.

153,000

2,351,581

Operates retail E-commerce websites

Sundrug Co., Ltd.

3,900

271,565

Operates pharmacies and drug store chains

Tokyo Base Co., Ltd. †

2,600

47,535

Retail sales of apparel

Yaoko Co., Ltd.

44,700

1,700,958

Operates and manages groceries and supermarkets

Yossix Co., Ltd.

67,300

779,471

Operates restaurant chains

Total Retail Trade (9.6%)

32,378,157

Services

EPS Holdings, Inc.

111,100

1,304,258

Performs contract medical research services

H.I.S Co., Ltd.

98,300

2,708,700

Engaged in the travel business

JP-Holdings, Inc.

176,300

407,149

Operates child-care centers

Nihon M&A Center Inc.

50,000

1,364,650

Provides merger and acquisition brokerage services

Nippon Air Conditioning Services Co., Ltd.

3,400

16,834

Provides maintenance and management of building facilities

Relia, Inc.

155,000

1,492,849

Provides telemarketing services

Septeni Holdings Co., Ltd.

251,000

757,512

Internet advertising and media content business

SHL-Japan Ltd.

2,100

55,570

Provides personnel assessment services

Step Co., Ltd.

230,500

2,522,464

Operates preparatory schools

Total Services (3.1%)

10,629,986

Textiles and Apparel

Hogy Medical Co., Ltd.

25,000

1,469,623

Manufactures medical products

Komatsu Seiren Co., Ltd.

245,300

1,435,557

Manufactures synthetic fibers and textile products

Seiren Co., Ltd.

461,400

5,917,092

Manufactures synthetic fibers and textile products

Total Textiles and Apparel (2.6%)

8,822,272

Transportation and Warehousing

Alps Logistics Co., Ltd.

543,100

2,997,823

General logistics services

Japan Transcity Corporation

1,823,000

6,362,918

General logistics services

Meiko Trans Co., Ltd.

412,000

3,535,599

Marine logistics services

Nissin Corporation

567,000

1,681,433

General logistics services

Trancom Co., Ltd.

78,000

3,800,551

General logistics services

Total Transportation and Warehousing (5.4%)

18,378,324

Transportation Equipment

Hi-Lex Corporation

48,200

1,200,836

Manufactures control cables

Nissin Kogyo Co., Ltd.

245,100

3,602,047

Manufactures automobile brake systems

Sanoh Industrial Co., Ltd.

409,700

2,619,872

Manufactures automobile components

Total Transportation Equipment (2.2%)

7,422,755

Utilities

Keiyo Gas Co., Ltd.

408,000

1,641,779

Produces gas and energy products

The Okinawa Electric Power Company, Incorporated

146,375

2,975,773

Produces thermal energy products

Total Utilities (1.4%)

4,617,552

Wholesale Trade

Happinet Corporation

149,000

1,719,206

Toy products

Kanaden Corporation

242,300

2,149,256

Factory automation business

Kohsoku Corporation

262,700

2,389,958

Food and industrial packaging materials

Matsuda Sangyo Co., Ltd.

496,700

6,348,062

Precious metals, electronic materials, and food

Paltac Corporation

76,800

1,711,146

Cosmetics and daily necessities

Ryoden Trading Company, Ltd.

1,195,000

7,756,550

Purchases electronic and electrical devices

Senshu Electric Co., Ltd.

268,400

4,127,605

Electrical wires and cables

Shinko Shoji Co., Ltd.

374,200

3,967,374

Electronic components and devices

SIIX Corporation

188,000

6,298,736

Parts procurement, logistics, and manufacturing of electronics

SPK Corporation

25,000

482,220

Automobile components for assembly

Sugimoto & Co., Ltd.

333,700

4,454,588

Machine tools and measuring instruments

Techno Associe Co., Ltd.

358,600

2,945,592

Screws and nonferrous metal products

Win-Partners Co., Ltd.

26,500

429,091

Engaged in the medical equipment supply business

Total Wholesale Trade (13.3%)

44,779,384

TOTAL JAPANESE EQUITY SECURITIES (96.7%)

$

326,334,801

FOREIGN CURRENCY

Japanese Yen

Non-interest bearing account

5,529,503

TOTAL FOREIGN CURRENCY (1.6%)

$

5,529,503

TOTAL INVESTMENTS AND FOREIGN CURRENCY (98.3%)

$

331,864,304

OTHER ASSETS LESS LIABILITIES, NET (1.7%)

5,776,108

NET ASSETS (100.0%)

$

337,640,412

† Non-income producing security

Portfolio securities and foreign currency holdings were translated at the following exchange rate as of November 30, 2016

Japanese Yen ¥ 114.315 = USD $1.00

Notes to Schedule of Investments (Unaudited)

Costs for Federal Income Tax Purposes

As of November 30, 2016, for federal income tax purposes, subject to change, the aggregate cost of securities was $301,926,467 and net unrealized appreciation was $24,408,334, comprised of gross unrealized appreciation of $36,425,387 and gross unrealized depreciation of $12,017,053. The aggregate cost of investments for tax purposes will depend upon Japan Smaller Capitalization Fund, Inc. (the “Fund”) investment experience during the entirety of its fiscal year and may be subject to changes based on tax regulations. Certain tax related calculations are completed and reviewed annually by the Fund.  

Fair Value Measurements

In accordance with United States (“U.S.”) generally accepted accounting principles (“U.S. GAAP”), fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP also establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund.  Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation.

The three-tier hierarchy of inputs is summarized below.

Level 1 - quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

Level 3 - significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of November 30, 2016.

Level

Level 1

      Equity Securities

$

326,334,801

Level 2

-

Level 3

-

Total

$

326,334,801

During the quarter ended November 30, 2016, there were no transfers between Level 1, Level 2, or Level 3 securities.

During the quarter ended November 30, 2016, the Fund did not hold any instruments which used significant unobservable inputs (Level 3) in determining fair value.