Japan Smaller Capitalization Fund, Inc. (the Fund) is a non-diversified, closed-end management investment company. The Fund�s benchmark is the Russell/Nomura Small Cap Index. It also invests in the TOPIX and the Nikkei Average Index. The Russell/Nomura Small Cap Index represents approximately 15% of the total market capitalization of the Russell/Nomura Total Market Index. It measures the performance of the smallest Japanese equity securities in the Russell/Nomura Total Market Index. There are approximately 1,148 securities in the Russell/Nomura Small Cap Index. The TOPIX consists of all companies listed on the First Section of the Tokyo Stock Exchange (the TSE). The Nikkei Average Index is a price-weighted index of the 225 stocks on the TSE. Nomura Asset Management U.S.A. Inc. acts as the manager of the Fund. Nomura Asset Management Co., Ltd. acts as investment adviser for the Fund.