Japan Smaller Capitalization Fund, Inc. (the Fund) is a non-diversified, closed-end management investment company. The Fund's investment objective is to provide shareholders with long-term capital appreciation and to invest, under normal circumstances, at least 80% of its total assets in smaller capitalization Japanese equity securities traded on the Tokyo, Nagoya, and JASDAQ Stock Exchanges, the Mothers, Centrex Markets, and other indices or markets determined by Nomura Asset Management U.S.A. Inc. to be appropriate indices or markets for smaller capitalization companies in Japan. The Funds invest in various sectors, which include chemicals, wholesale trade, retail trade, electric appliances, machinery, iron and steel, construction, transportation and warehousing, banks, textiles and apparel, real estate, glass and ceramics, and pharmaceutical, among others. The Fund's manager is Nomura Asset Management U.S.A. Inc. The Fund's investment advisor is Nomura Asset Management Co., Ltd.