Japan Smaller Capitalization Fund, Inc. (the Fund) is a non-diversified, closed-end management investment company. The Fund’s investment objective is to seek long-term capital appreciation through investments primarily in smaller capitalization Japanese equity securities. The Fund’s investment policy is to invest, under normal market conditions, at least 80% of its total assets in smaller capitalization Japanese equity securities traded on the Tokyo, Osaka, Nagoya and JASDAQ Stock Exchanges and the Mothers, and Centrex markets and included or traded on other indices or markets, as applicable, determined by the investment adviser to be appropriate indices or markets, for smaller capitalization companies in Japan. The Fund invests in various sectors, which include retail trade, chemicals, banks, wholesale trade, iron and steel, information and communication, transportation equipment, glass and ceramics, and other. The Fund's investment advisor is Nomura Asset Management Co., Ltd.