JOF Japan Smaller Capitalization Fund Inc

(a) Non-income producing security.

(b) Japanese Yen - Interest bearing account.

Notes to Schedule of Investments (Unaudited)

 

Valuation of Securities

 

Investments traded in the over-the-counter market are fair valued at the last reported sales price as of the close of business on the day the securities are being valued or, if none is available, at the mean of the bid and offer price at the close of business on such day or, if none is available, the last reported sales price. Portfolio securities which are traded on stock exchanges are fair valued at the last sales price on the principal market on which securities are traded or, lacking any sales, at the last available bid price. Securities and other assets, including futures contracts and related options, that cannot be fair valued using one of the previously mentioned methods are stated at fair value as determined in good faith by or under the direction of the Board of Directors of the Fund.

 

Fair Value Measurements

 

Fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date.

 

The three-tier hierarchy of inputs is summarized below.

 

• Level 1—quoted prices in active markets for identical investments

 

• Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

 

• Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

 

At May 31, 2023, all of the Fund’s investments were determined to be Level 1 securities.

 

During the quarter ended May 31, 2023, the Fund did not hold any instrument which used significant unobservable inputs (Level 3) in determining fair value.