Item 1. Schedule of Investments

Japan Smaller Capitalization Fund, Inc.

November 30, 2017 (Unaudited)

Fair

JAPANESE EQUITY SECURITIES

Banks

The Akita Bank, Ltd.

126,000

$

3,416,322

General banking services

The Taiko Bank, Ltd.

92,000

2,043,079

General banking services

The Yamanashi Chuo Bank, Ltd.

401,000

1,706,763

General banking services

Total Banks (1.7%)

7,166,164

Chemicals

Adeka Corporation

205,900

3,476,127

Manufactures chemical and food products

C. Uyemura &  Co., Ltd.

60,500

4,708,339

Plating chemicals

C.I. Takiron Corporation

169,000

1,224,932

Manufactures resin and composite products

Fujikura Kasei Co., Ltd.

953,600

5,867,393

Specialty coating materials and fine chemicals

Koatsu Gas Kogyo Co., Ltd.

611,000

5,152,193

High-pressured gases and chemicals

Sakai Chemical Industry Co., Ltd.

14,600

329,168

Manufactures components for cosmetics and pharmaceuticals

Sekisui Jushi Corporation

254,600

5,230,063

Manufactures plastics and other resin materials

Shikoku Chemicals Corporation

87,000

1,426,179

Manufactures chemical products

Soken Chemical & Engineering Co., Ltd.

24,900

493,543

Manufactures chemical products

Tenma Corporation

272,000

5,098,259

Manufactures synthetic resin products

T&K Toka Co., Ltd.

166,400

1,994,340

Manufactures specialized inks for printing applications

Yushiro Chemical Industry Co., Ltd.

197,400

2,817,615

Manufactures metalworking fluids

Total Chemicals (8.9%)

37,818,151

Construction

C-Cube Corporation

7,400

40,786

Communications construction business

Daiichi Kensetsu Corporation

23,900

337,309

Construction and real estate businesses

Mirai Industry Co., Ltd.

32,200

586,341

Manufactures electrical installation materials

NDS Co., Ltd.

5,000

190,998

Construction of communication infrastructure

Sysken Corporation

3,400

58,915

Electric communication facility construction business

Taihei Dengyo Kaisha, Ltd.

18,300

431,652

Construction of thermal and nuclear plant facilities

Toenec Corporation

296,000

8,565,959

Construction of comprehensive building facilities

Totetsu Kogyo Co., Ltd.

122,300

4,002,070

Operates construction-related businesses

Yondenko Corporation

66,800

1,771,341

Construction of electrical distribution systems

Total Construction (3.8%)

15,985,371

Electric Appliances

Espec Corp.

105,500

2,588,064

Manufactures environmental testing products

Kitagawa Industries Co., Ltd.

426,400

5,733,173

Manufactures various industrial and consumer products

Koito Manufacturing Co., Ltd.

57,300

3,954,187

Manufactures lighting equipment

Mabuchi Motor Co., Ltd.

13,900

740,145

Manufactures small motors

Maxell Holdings, Ltd.

74,900

1,527,278

Manufactures media devices, batteries and electrical appliances

Nihon Kohden Corporation

39,600

907,974

Manufactures medical electronic equipment

Total Electric Appliances (3.6%)

15,450,821

Financing Business

Hitachi Capital Corporation

112,000

2,758,488

General financial services

Ricoh Leasing Company, Ltd.

51,000

1,750,634

Leasing and financial services

Total Financing Business (1.1%)

4,509,122

Food

Japan Meat Co., Ltd.

36,200

597,612

Supermarket business and operation of eating-out stores

Kameda Seika Co., Ltd.

43,200

2,057,967

Manufactures confectioneries

Total Food (0.6%)

2,655,579

Information and Communication

NS Solutions Corporation

89,100

 

2,302,375

System consulting services and software development

OBIC Co., Ltd.

79,400

5,507,555

Computer system integration

Okinawa Cellular Telephone Company

218,100

7,651,609

Telecommunications

Otsuka Corporation

47,000

3,515,427

Computer information system developer

Software Service Inc.

4,000

190,196

Provides medical information systems

Total Information and Communication (4.5%)

19,167,162

Iron and Steel

Chubu Steel Plate Co., Ltd.

243,200

1,823,377

Manufactures steel-related products

Mory Industries Inc.

39,000

1,213,704

Manufactures steel tubing products

Nichia Steel Works, Ltd.

1,969,300

5,751,573

Manufactures steel-related products

Osaka Steel Co., Ltd.

453,300

9,529,774

Manufactures steel-related products

Total Iron and Steel (4.3%)

18,318,428

Machinery

Hisaka Works, Ltd.

1,037,000

10,905,098

Manufactures heat exchangers and other machinery

Miura Co., Ltd.

134,000

3,426,811

Manufactures boilers and related products

Nippon Pillar Packing Co., Ltd.

104,200

1,441,849

Manufactures mechanical seals

Nissei ASB Machine Co., Ltd.

4,500

259,249

Manufactures stretch blow molding machines

Nissei Corporation

24,500

336,833

Manufactures reducers and gears

Nitto Kohki Co., Ltd.

144,800

3,656,585

Manufactures machine tools and motor pumps

Oiles Corporation

510,480

10,786,421

Manufactures bearing equipment

Sato Holdings Corporation

32,000

897,556

Manufactures electronic printers and other products

Shibuya Corporation

13,900

510,552

Packing plant business

Yamashin-Filter Corporation

50,000

612,172

Manufactures filters

Total Machinery (7.7%)

32,833,126

Metal Products

Dainichi Co., Ltd.

297,900

2,246,750

Manufactures oil heating equipment

Neturen Co., Ltd.

419,000

4,365,166

Manufactures steel bars and induction heating equipment

NHK Spring Co., Ltd.

292,800

3,258,982

Manufactures automobile-related products

Piolax, Inc.

137,600

4,202,556

Manufactures automobile-related products

Rinnai Corporation

45,900

4,115,694

Manufactures heating appliances and components

Shinpo Co., Ltd.

1,800

20,259

Manufactures smokeless roasters

Total Metal Products (4.3%)

18,209,407

Other Products

Fuji Seal International, Inc.

63,000

2,142,914

Packaging-related materials and machinery

Komatsu Wall Industry Co., Ltd.

20,300

417,189

Manufactures various partitions

Nishikawa Rubber Co., Ltd.

277,300

5,592,667

Manufactures rubber automobile parts

Pigeon Corporation

86,500

3,308,112

Manufactures baby care products

The Pack Corporation

118,400

3,974,605

Manufactures paper and chemical products

Total Other Products (3.6%)

15,435,487

Precision Instruments

Nakanishi Inc.

60,500

2,909,042

Manufactures dental instruments

Total Precision Instruments (0.7%)

2,909,042

Real Estate

Daibiru Corporation

376,900

4,225,254

Real estate leasing and building management

Keihanshin Building Co., Ltd.

517,900

3,841,420

Real estate leasing and building management

Sanyo Housing Nagoya Co., Ltd.

269,600

2,873,525

Designs and constructs housing

Starts Corporation Inc.

68,500

1,671,862

Construction, leasing and management of real estate

Total Real Estate (3.0%)

12,612,061

Retail Trade

ABC-Mart, Inc.

95,800

 

5,254,690

Retail sales of shoes

AIN Holdings Inc.

2,700

183,919

Operates pharmacies and drug store chains

Amiyaki Tei Co., Ltd.

244,800

11,029,678

Operates barbecue restaurant chains

Belc Co., Ltd.

24,500

1,372,201

Operates retail food store chains

Cosmos Pharmaceutical Corporation

13,200

2,970,162

Operates drug stores

Create SD Holdings Co., Ltd.

179,000

4,666,863

Operates pharmacies and drug store chains

Daikokutenbussan Co., Ltd.

167,700

7,854,521

Operates supermarkets

Don Quijote Holdings Co., Ltd.

58,000

2,773,340

Operates discount stores

Heiwado Co., Ltd.

2,800

60,386

Operates supermarkets

Hiday Hidaka Corp

106,411

3,207,348

Operates restaurant chains

Izumi Co., Ltd.

36,300

2,130,065

Operates shopping centers and real estate business and credit card services

JINS Inc.

28,100

1,441,218

Retail sales of eyewear and fashion accessories

Kura Corporation

59,100

2,757,526

Operates a sushi restaurant chain

NAFCO Co., Ltd.

68,300

1,115,983

Operates chain of home and furniture retail outlets

Saint Marc Holdings Co., Ltd.

68,700

1,887,178

Operates restaurant chains

San-A Co., Ltd.

118,700

5,485,535

Retail sales of home goods

Seria Co., Ltd.

47,100

2,977,695

Discount retail sales

Start Today Co., Ltd.

99,200

3,025,333

Operates retail E-commerce websites

Sundrug Co., Ltd.

22,900

1,054,210

Operates pharmacies and drug store chains

Yaoko Co., Ltd.

65,800

3,099,435

Operates and manages groceries and supermarkets

Yossix Co., Ltd.

32,500

972,352

Operates restaurant chains

Total Retail Trade (15.4%)

65,319,638

Services

EPS Holdings, Inc.

65,900

1,417,110

Performs contract medical research services

H.I.S. Co., Ltd.

260,900

9,815,258

Travel business

Nihon M&A Center Inc.

42,900

2,142,995

Provides merger and acquisition brokerage services

Nippon Air Conditioning Services Co., Ltd.

371,700

2,644,480

Provides maintenance and management of building facilities

Relia, Inc.

124,600

1,406,819

Provides telemarketing services

Septeni Holdings Co., Ltd.

650,100

1,846,595

Internet advertising and media content business

Step Co., Ltd.

143,500

2,087,877

Operates preparatory schools

Tear Corporation

117,400

1,032,823

Funeral business

Total Services (5.3%)

22,393,957

Textiles and Apparel

Hogy Medical Co., Ltd.

23,800

1,714,456

Manufactures medical products

Seiren Co., Ltd.

258,900

4,848,107

Manufactures synthetic fibers and textile products

Total Textiles and Apparel (1.5%)

6,562,563

Transportation and Warehousing

Alps Logistics Co., Ltd.

260,700

2,098,507

General logistics services

Japan Transcity Corporation

880,000

3,596,634

General logistics services

Meiko Trans Co., Ltd.

394,000

4,322,230

Marine logistics services

Trancom Co., Ltd.

188,400

12,279,845

General logistics services

Total Transportation and Warehousing (5.2%)

22,297,216

Transportation Equipment

Hi-Lex Corporation

141,000

3,506,638

Manufactures control cables

Morita Holdings Corporation

60,500

1,125,907

Operates five business transportation segments

Nissin Kogyo Co., Ltd.

50,900

993,933

Manufactures automobile brake systems

Total Transportation Equipment (1.3%)

5,626,478

Utilities

Keiyo Gas Co., Ltd.

503,000

 

2,602,226

Produces gas and energy products

The Okinawa Electric Power Company, Incorporated

142,682

3,723,796

Produces thermal energy products

Total Utilities (1.5%)

6,326,022

Wholesale Trade

Kanaden Corporation

360,700

4,454,752

Factory automation business

Kohsoku Corporation

352,700

3,922,553

Food and industrial packaging materials

Matsuda Sangyo Co., Ltd.

537,200

8,944,962

Precious metals, electronic materials, and food

Paltac Corporation

38,900

1,724,963

Cosmetics and daily necessities

Ryoden Corporation

807,400

12,487,902

Purchases electronic and electrical devices

Senshu Electric Co., Ltd.

205,100

6,108,895

Electrical wires and cables

Shinko Shoji Co., Ltd.

67,400

1,183,499

Electronic components and devices

SIIX Corporation

290,100

12,269,935

Parts procurement, logistics, and manufacturing of electronics

Sugimoto & Co., Ltd.

295,900

4,566,090

Machine tools and measuring instruments

Techno Associe Co., Ltd.

372,200

4,401,243

Screws and nonferrous metal products

Total Wholesale Trade (14.1%)

60,064,794

TOTAL JAPANESE EQUITY SECURITIES (92.1%)

$

391,660,589

FOREIGN CURRENCY

Japanese Yen

Interest bearing account

$

5,393,399

TOTAL FOREIGN CURRENCY (1.3%)

5,393,399

TOTAL INVESTMENTS AND FOREIGN CURRENCY (93.4%) 

$

397,053,988

OTHER ASSETS LESS LIABILITIES, NET (6.6%)

28,236,798

NET ASSETS (100%)

$

425,290,786

Portfolio securities and foreign currency holdings were translated 
at the following exchange rate as of November 30, 2017.

Japanese Yen         JPY       ¥ 112.305 = USD $1.00

Notes to Schedule of Investments (Unaudited)

Costs for Federal Income Tax Purposes

As of November 30, 2017, for federal income tax purposes, subject to change, the aggregate cost of securities was $313,682,211 and net unrealized appreciation was $77,978,378, comprised of gross unrealized appreciation of $78,245,999 and gross unrealized depreciation of $267,621. The aggregate cost of investments for tax purposes will depend upon Japan Smaller Capitalization Fund, Inc.’s (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 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, 2017.

Level

Level 1

      Equity Securities

$

391,660,589

Level 2

-

Level 3

-

Total

$

391,660,589

During the quarter ended November 30, 2017, there were no transfers between Level 1, Level 2, or Level 3 securities.

During the quarter ended November 30, 2017, the Fund did not hold any instruments which used significant unobservable inputs (Level 3) in determining fair value.