# EDGAR Filing Document

**Accession Number:** 0000859796
**File Stem:** 0001140361-23-010611
**Filing Date:** 2023-3
**Character Count:** 8937
**Document Hash:** 18518d200d456d83957474304f94c91f
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001140361-23-010611.hdr.sgml**: 20230308

**ACCESSION NUMBER**: 0001140361-23-010611

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 2

**CONFORMED PERIOD OF REPORT**: 20230228

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230308

**DATE AS OF CHANGE**: 20230308

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** JAPAN SMALLER CAPITALIZATION FUND INC
- **CENTRAL INDEX KEY:** 0000859796
- **IRS NUMBER:** 133553469
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 0228

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 811-05992
- **FILM NUMBER:** 23715026

**BUSINESS ADDRESS:**
- **STREET 1:** WORLDWIDE PLAZA
- **STREET 2:** 309 WEST 49TH STREET
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10019
- **BUSINESS PHONE:** 8008330018

**MAIL ADDRESS:**
- **STREET 1:** WORLDWIDE PLAZA
- **STREET 2:** 309 WEST 49TH STREET
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10019

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** JAPAN OTC EQUITY FUND INC
- **DATE OF NAME CHANGE:** 19920703

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### UNITED STATES

### SECURITIES AND EXCHANGE COMMISSION

#### Washington, D.C. 20549

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### Form 8-K

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#### <br>

#### CURRENT REPORT

#### Pursuant to Section 13 or 15(d) of the

#### Securities Exchange Act of 1934

#### Date of Report (Date of earliest event reported): February 28, 2023

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## JAPAN SMALLER CAPITALIZATION FUND, INC.

#### (Exact name of registrant as specified in its charter)

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#### <br>

#### Investment Company Act File Number: 811-05992

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| | |
|:---|:---|
| **Maryland**<br> **(State or other jurisdiction**<br> **of incorporation)** | **13-3553469**<br> **(IRS Employer**<br> **Identification No.)** |

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#### Worldwide Plaza

#### 309 West 49th Street

#### New York, NY 10019

#### (Address of principal executive offices, including zip code)

#### 1-800-833-0018

#### (Registrant's telephone number, including area code)

#### (Former name or former address, if changed since last report)

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

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| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| **Common stock, par value $0.10 per share** | **JOF** | **NYSE** |

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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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| | |
|:---|:---|
| **Item 8.01** | **Other Events.** |

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#### Report of Special Committee of Independent Directors

The Report of Special Committee of Independent Directors (the "Special Committee") of Japan Smaller Capitalization Fund, Inc. (the "Fund"), performed in accordance with the Charter of the Special Committee adopted on September 9, 2022, was provided to the Board of Directors of the Fund on February 28, 2023.

A copy of the full Report of Special Committee of Independent Directors is filed as Exhibit 99(i) to this Form 8-K.

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| | |
|:---|:---|
| **Item 9.01** | **Financial Statements and Exhibits** |

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(d) Exhibits

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| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| [99(i)](brhc10049470_ex99-i.htm) | Report of Special Committee of Independent Directors, dated February 28, 2023 |

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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| | | |
|:---|:---|:---|
|  | JAPAN SMALLER CAPITALIZATION FUND, INC. | JAPAN SMALLER CAPITALIZATION FUND, INC. |
|  | By:<br>| /s/ Amy J. Robles |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;Amy J. Robles | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;Amy J. Robles |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;Treasurer, Principal Financial Officer | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;Treasurer, Principal Financial Officer |
| Date: March 8, 2023 |  |  |

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## Ex-99.(I)

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#### Exhibit 99(i)

#### Japan Smaller Capitalization Fund, Inc.

#### Report of Special Committee of Independent Directors

#### February 28, 2023
This Report of the Special Committee of the Independent Directors of Japan Smaller Capitalization Fund, Inc. (the "Fund") informs the Board of Directors (the "Board") and the shareholders of the Fund of the work undertaken by the Special Committee, including the process for its deliberations and its conclusions.

#### Background
The Special Committee of Independent Directors was convened pursuant to its Charter, dated September 9, 2022, for the purpose of evaluating suitable alternative investment managers to replace the Fund's current investment manager. The Charter was discussed in the Fund's Proxy Statement for the 2022 Annual Meeting of Shareholders of the Fund (the "Proxy Statement"), as filed with the Securities and Exchange Commission on November 7, 2022. A copy of the Charter is available at <u>*https://www.nomura-asset.com/investmentsolutions/funds/closed-end funds/jof.*</u>

The Proxy Statement contained a precatory proposal submitted by a shareholder of the Fund requesting that the Board of the Fund evaluate suitable alternative investment managers to replace the current investment manager. The Special Committee understood that this proposal encompassed the management agreement between the Fund and Nomura Asset Management U.S.A Inc. ("NAM-USA"), and the investment advisory agreement between NAM-USA and Nomura Asset Management Co., Ltd. ("NAM-Tokyo"). This shareholder proposal did not receive enough votes at the 2022 Annual Meeting of Shareholders of the Fund to pass.

#### Special Committee's Analysis
Nonetheless, in order to carry out the specified tasks contained in its Charter, the Special Committee met regularly by Zoom conference call during the period December 2022 to February 2023. The Special Committee began its work to evaluate potential alternative investment managers for the Fund by casting a wide net, including using a large database of potential alternative managers. The Special Committee developed a set of criteria for the database. This process resulted in a list of 12 possible alternative managers that the Special Committee researched further and discussed in detail.

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Based on its research, a number of these potential managers were eliminated based, among other factors, on the identity of the domicile of the manager and/or its funds (outside the US), lack of closed-end fund expertise, absence of experience managing an investment strategy specific to the Fund's investment objective and strategy, and lack of clear ability to compare performance or expense ratio data on a systematic basis.

#### Special Committee's Conclusions
Based on a thorough consideration of potential suitable alternatives to the Fund's investment manager, the Special Committee finds no alternative manager to be as suitable and capable to manage the Fund as are NAM-USA and NAM-Tokyo. This conclusion is buttressed by our analysis of their strong and deep Japanese small capitalization equity research capability, Japanese equity trading capacity, long experience managing closed-end funds (such as the Fund) in the US, clear and timely reporting to the Board, as well as strong demonstrated compliance, US regulatory reporting, cybersecurity and risk management policies and procedures. In addition, the Special Committee has addressed the Fund's performance directly and clearly with NAM-USA and NAM-Tokyo.

Pursuant to the Special Committee's Charter and as described in the Proxy Statement, this report is being made to the Board of the Fund and publicly disclosed to the Fund's shareholders.

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