JOF Overview

Monthly Cash Distributions: Japan Smaller Capitalization Fund, Inc. has declared monthly cash distributions of $0.0887 per share for October, November, and December 2025, under its Level Distribution Plan (LDP), aimed at providing shareholders with stable, though not guaranteed, fixed-rate distributions.

Investment Focus and Management: The Fund, managed by Nomura Asset Management U.S.A. Inc., primarily invests in smaller capitalization companies in Japan, targeting long-term capital appreciation while emphasizing the commitment to delivering competitive performance and addressing shareholder interests.

Level Distribution Plan and Conditional Tender Offer: Japan Smaller Capitalization Fund, Inc. has approved a Level Distribution Plan to pay monthly distributions at a 10% annual rate and a conditional tender offer for 10% of its outstanding shares if the shares trade at a discount of 9% or greater to NAV during a specified measurement period.

Commitment to Shareholder Value: The initiatives aim to enhance shareholder value, improve liquidity, and attract new investors while maintaining a focus on long-term capital appreciation in the Japanese market.

Initiatives to Address Trading Discount: Japan Smaller Capitalization Fund, Inc. has introduced a Level Distribution Plan (LDP) for monthly distributions at a 10% annual rate and a Conditional Tender Offer (CTO) to buy back 10% of shares if they trade at a significant discount, aiming to enhance shareholder value and attract new investors.

Positive Market Outlook: The Fund's management anticipates growth in earnings and return on equity in the Japanese market, supported by corporate reforms, while maintaining a commitment to long-term value creation for shareholders.