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<SEC-DOCUMENT>0000897204-06-000131.txt : 20061229
<SEC-HEADER>0000897204-06-000131.hdr.sgml : 20061229
<ACCEPTANCE-DATETIME>20061229153926
ACCESSION NUMBER:		0000897204-06-000131
CONFORMED SUBMISSION TYPE:	N-CSR
PUBLIC DOCUMENT COUNT:		6
CONFORMED PERIOD OF REPORT:	20061031
FILED AS OF DATE:		20061229
DATE AS OF CHANGE:		20061229
EFFECTIVENESS DATE:		20061229

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			JAPAN EQUITY FUND INC
		CENTRAL INDEX KEY:			0000866095
		IRS NUMBER:				223060893
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1031

	FILING VALUES:
		FORM TYPE:		N-CSR
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-06142
		FILM NUMBER:		061305763

	BUSINESS ADDRESS:	
		STREET 1:		ONE EVERTRUST PLAZA
		STREET 2:		C/O DAIWA SECURITIES TRUST CO
		CITY:			JERSEY CITY
		STATE:			NJ
		ZIP:			07302
		BUSINESS PHONE:		2019153054

	MAIL ADDRESS:	
		STREET 1:		DAIWA SECURITIES TRUST CO
		STREET 2:		ONE EVERTRUST PLAZA
		CITY:			JERSEY CITY
		STATE:			NJ
		ZIP:			07302

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	JAPAN EMERGING EQUITY FUND INC
		DATE OF NAME CHANGE:	19920407
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-CSR
<SEQUENCE>1
<FILENAME>jeq-ncsr2.htm
<DESCRIPTION>JAPAN EQUITY FUND
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>UNITED STATES</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>SECURITIES AND EXCHANGE COMMISSION</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>WASHINGTON, D.C. 20549</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="527" style='margin-left:0pt;border-collapse:collapse;border: none; '>
    <tr style=' page-break-inside:avoid'>
        <td width="188" valign=top style='padding:0cm 5.4pt 0cm 5.4pt;border-color:gray'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="170" valign=top style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>FORM N-CSR</font></B></p> </td>
        <td width="169" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>INVESTMENT COMPANIES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>INVESTMENT COMPANY ACT FILE NUMBER 811-06142</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>THE JAPAN EQUITY FUND, INC</font></B><font size=2>.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Exact name of registrant as specified in charter)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>c/o Daiwa Securities Trust Company</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>One Evertrust Plaza, 9th Floor</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Jersey City, New Jersey 07302-3051</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Address of principal executive offices) (Zip code)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>c/o Daiwa Securities Trust Company</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>One Evertrust Plaza, 9th Floor</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Jersey City, New Jersey 07302-3051</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Name and address of agent for service)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>REGISTRANT&#146;S TELEPHONE NUMBER, INCLUDING AREA CODE:  (201) 915-3054</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>DATE OF FISCAL YEAR END:  October 31</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>DATE OF REPORTING PERIOD:  October 31, 2006</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>1</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>Item 1.  Reports to Stockholders.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;line-height: 150%;border-bottom:solid 0.5pt;padding-bottom:12;padding-top:0;'><b><font size=3>General Information (unaudited)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>The Fund</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>The investment objective of the Fund is to outperform over the long term, on a total return basis (including appreciation and dividends), the Tokyo Stock Price Index (&#147;TOPIX&#148;), a composite market-capitalization weighted index of all common stocks listed on the First Section of the Tokyo Stock Exchange (&#147;TSE&#148;). The Fund seeks to achieve its investment objective by investing substantially all of its assets in equity securities of companies listed on the TSE or listed on the over-the-counter market in Japan or listed on other stock exchanges in Japan. Daiwa SB Investments (U.S.A.) Ltd. is the Fund&#146;s Investment Manager. Daiwa SB Investments Ltd. is the Fund&#146;s Investment Adviser. The Fund implements an &#147;active&#148; portfolio management policy, which is an approach that involves quantitative valuation of securities to identify an appropriate universe of
securities from which to select investments, with judgmental analysis then applied to this universe to determine the actual investments to be made by the Fund.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Shareholder Information</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>The Fund&#146;s shares are listed on the New York Stock Exchange (&#147;NYSE&#148;). The Fund understands that its shares may trade periodically on certain exchanges other than the NYSE, but the Fund has not listed its shares on those other exchanges and does not encourage trading on those exchanges.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>The Fund&#146;s NYSE trading symbol is &#147;JEQ&#148;. Weekly comparative net asset value (&#147;NAV&#148;) and market price information about the Fund is published each Monday in </font><i><font size=2>The Wall Street Journal</font></i><font size=2>,</font><i><font size=2> </font></i><font size=2>each Sunday in </font><i><font size=2>The New York Times </font></i><font size=2>and each Saturday in </font><i><font size=2>Barron&#146;s, </font></i><font size=2>and also appears in many other newspapers. The Fund&#146;s daily NAV is also available by visiting www.daiwast.com or calling (800) 933-3440 or (201) 915-3020. Also, the Fund&#146;s website includes a monthly market review, a list of the Fund&#146;s top ten industries and holdings, its proxy voting policies and procedures, its code of ethics and its audit committee charter.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Inquiries</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Inquiries concerning your registered share account should be directed to the American Stock Transfer &amp; Trust Company (the &#147;Plan Agent&#148;) at the number noted below. All written inquiries should be directed to The Japan Equity Fund, Inc., c/o Daiwa Securities Trust Company, One Evertrust Plaza, 9th Floor, Jersey City, NJ 07302-3051.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Proxy Voting Policies and Procedures</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>A description of the policies and procedures that are used by the Fund&#146;s Investment Manager to vote proxies relating to the Fund&#146;s portfolio securities is available (1) without charge, upon request, by calling collect (201) 915-3054; (2) by visiting www.daiwast.com; and (3) as an exhibit to the Fund&#146;s annual report on Form N-CSR which is available on the website of the Securities and Exchange Commission (the &#147;Commission&#148;) at www.sec.gov. Information regarding how the Investment Manager votes these proxies is now available by calling the same number and the Commission&#146;s website. The Fund has filed its report on Form N-PX covering the Fund&#146;s proxy voting record for the 12-month period ended June 30, 2006.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>2</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Quarterly Portfolio of Investments</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>A Portfolio of Investments is filed as of the end of the first and third quarters of each fiscal year on Form N-Q and is available on the Commission&#146;s website at www.sec.gov and the Fund&#146;s web site at www.daiwast.com. Additionally, the Portfolio of Investments may be reviewed and copied at the Commission&#146;s Public Reference Room in Washington D.C. Information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. The quarterly Portfolio of Investments will be made available without charge, upon request, by calling (201) 915-3054.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Certifications</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>The Fund&#146;s chief executive officer has certified to the NYSE that, as of June 1, 2006, he was not aware of any violation by the Fund of applicable NYSE corporate governance listing standards. The Fund also has included the certifications of the Fund&#146;s chief executive officer and chief financial officer required by Section 302 and Section 906 of the Sarbanes-Oxley Act of 2002 in the Fund&#146;s Form N-CSR filed with the Commission for the period of this report.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Dividend Reinvestment and Cash Purchase Plan</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>A Dividend Reinvestment and Cash Purchase Plan (the &#147;Plan&#148;) is available to provide Shareholders with automatic reinvestment of dividends and capital gain distributions in additional Fund shares. The Plan also allows you to make optional annual cash investments in Fund shares through the Plan Agent. A brochure fully describing the Plan&#146;s terms and conditions is available on the Fund&#146;s web site at www.daiwast.com and from the Plan Agent by calling (866) 669-9904 or by writing The Japan Equity Fund, Inc., c/o the American Stock Transfer &amp; Trust Company, 59 Maiden Lane, New York, NY 10038.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;line-height: 150%;'><font size=2>A brief summary of the material aspects of the Plan follows:</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><b><font size=2>Who can participate in the Plan? </font></b><font size=2>If you wish to participate and your shares are held in your name, you may elect to become a direct participant in the Plan by completing and mailing the Enrollment Authorization form on the back cover of the Dividend Reinvestment and Cash Purchase Plan Brochure available from the Plan Agent. However, if your shares are held in the name of a financial institution, you should instruct your financial institution to participate in the Plan on your behalf. If your financial institution is unable to participate in the Plan for you, you should request that your shares be registered in your name, so that you may elect to participate directly in the Plan.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><b><font size=2>May I withdraw from the Plan? </font></b><font size=2>If your shares are held in your name and you wish to receive all dividends and capital gain distributions in cash rather than in shares, you may withdraw from the Plan without penalty at any time by contacting the Plan Agent. If your shares are held in the name of a financial institution, you should be able to withdraw from the Plan without a penalty at any time by sending written notice to your financial institution. If you withdraw, you or your financial institution will receive a share certificate for all full shares or, if you wish, the Plan Agent will sell your shares and send you the proceeds, after the deduction of brokerage commissions. The Plan Agent will convert any fractional shares to cash at the then-current market price and send to you a check for the proceeds.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><b><font size=2>How are the dividends and distributions reinvested? </font></b><font size=2>If the market price of the Fund&#146;s shares on the payment date should equal or exceed their net asset value per share, the Fund will issue new shares to you at the higher of net asset value or 95% of the then-current market price. If the market price is lower than net asset value per share, the Fund will issue new shares to you at the market price. If the dividends or distributions are declared and payable as cash only, you will receive shares purchased for you by the Plan Agent on the NYSE or otherwise on the open market to the extent available.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>3</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><b><font size=2>What is the Cash Purchase feature? </font></b><font size=2>The Plan participants have the option of making annual investments in Fund shares through the Plan Agent. You may invest any amount from $100 to $5,000 semi-annually. The Plan Agent will purchase shares for you on the NYSE or otherwise on the open market on or about February 15th and August 15th of each year. Plan participants should send voluntary cash payments to be received by the Plan Agent approximately ten days before the applicable purchase date. The Plan Agent will return any cash payments received more than thirty days prior to the purchase date. You may withdraw a voluntary cash payment by written notice, if the notice is received by the Plan Agent not less than two business days before the investment date.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><b><font size=2>Is there a cost to participate? </font></b><font size=2>There are no Plan charges or brokerage charges for shares issued directly by the Fund. However, each participant will pay a service fee of $2.50 for each investment and a pro rata portion of brokerage commissions for shares purchased on the NYSE or on the open market by the Plan Agent.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><b><font size=2>What are the tax implications? </font></b><font size=2>The automatic reinvestment of dividends and distributions does not relieve you of any income tax which may be payable (or required to be withheld) on such dividends and distributions. In addition, the Plan Agent will reinvest dividends for foreign participants and for any participant subject to federal backup withholding after the deduction of the amounts required to be withheld.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><i><font size=2>Please note that, if you participate in the Plan through a brokerage account, you may not be able to continue as a participant if you transfer those shares to another broker. Contact your broker or financial institution or the Plan Agent to ascertain what is the best arrangement for you to participate in the Plan.</font></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>4</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;line-height: 150%;border-bottom:solid 0.5pt;padding-bottom:12;padding-top:0;'><b><font size=3>Shareholder Letter (unaudited)</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:right;'><font size=2>November 10, 2006</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Dear Shareholders:</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.35in;text-align:justify;'><font size=2>It is our pleasure on behalf of the Board of Directors to present the Annual Report for The Japan Equity Fund, Inc. (the &#147;Fund&#148;) for the year ended October 31, 2006.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Performance and Review of Japanese Stock Market (November 2005 &#150; October 2006)</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.35in;text-align:justify;'><font size=2>For the year ended October 31, 2006, stocks on the Tokyo Stock Exchange (&#147;TSE&#148;) showed moderate gain following a strong performance during the previous year. The total return of the TOPIX Index was 13% over the period in local currency terms. Major indices in the Japanese stock market surged from the middle of 2005 to mid-January 2006 as continuing economic recovery, easing of deflationary pressure and strong earnings releases by companies helped lift stock markets. However, issues of corporate governance, slowing global economies and somewhat stretched valuation, especially among small capitalization stocks, weighed on Japanese stock markets in the period. Although the TOPIX outperformed other major overseas stock markets from November 2005 to April 2006, it lagged from May 2006 to October 2006. The TOPIX Index reached its highest point of the year on April 7, 2006, hitting
1783.72, but then dipped back down to 1439.00 on June 14, 2006 and finished October at a level of 1617.42.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.35in;text-align:justify;'><font size=2>Economic fundamentals in Japan continued to improve though the pace was fairly moderate. Real term Gross Domestic Product (&#147;GDP&#148;) was 1.0% in the October-December 2005 quarter, 0.8% in the January-March 2006 quarter and 0.2% in the April-June 2006 quarter (QoQ basis, not annualized). Drivers of the economy were exports and corporate capital expenditures, while private consumption showed little strength and public investment was on a downtrend. In July, the Bank of Japan (&#147;BOJ&#148;) reversed its zero interest rate policy and raised its target rate for unsecured overnight call money, the benchmark for monetary policy, to 0.25%. The policy change itself was well anticipated and had little impact on capital markets. With the Consumer Price Index (&#147;CPI&#148;) nearly unchanged, somewhat affected by the base year change from 2000 to 2005, a rate increase by the BOJ is
likely to be gradual going forward.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.35in;text-align:justify;'><font size=2>The Federal Reserve Board in the United States has tightened its target interest rate to 5.25%, a 425 basis point increase from its low of 1.00% in June 2004. The lagged effect of monetary tightening has certainly cooled the U.S. housing markets although consumption and business capital expenditures still remain resilient. Uncertainty in the out-look for the U.S. economy has caused a conservative stance among investors and corporate management in Japan.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.35in;text-align:justify;'><font size=2>On the political front, the much anticipated Shinzo Abe assumed the office of Prime Minister in September. With regard to economic policy, the new cabinet targeted annual real growth of 3% or more. Specific policy steps being discussed by the Abe cabinet include emphasizing the removal of market entry barriers and technological innovation, reaching an accelerated conclusion to the pan-Asian Free Trade Agreement (&#147;FTA&#148;) and implementing corporate tax incentives.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.35in;text-align:justify;'><font size=2>The surge in commodity prices, including oil and nonferrous metals, has continued to impact the operations of Japanese companies. In the foreign exchange market, the Japanese yen has weakened against major currencies. During the first half of the year, for many Japanese manufacturers, currency exchange levels generally had a positive influence, while the impact of the rise in prices of crude oil and other materials pressured profit margins. Looking toward the second half of 2006 and 2007, the negative impact of material prices is likely to diminish as oil prices appear to have peaked and companies pass increased material costs in their product prices.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>5</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.35in;text-align:justify;'><font size=2>Oji Paper, the leading manufacturer of paper products in Japan, announced a takeover bid for Hokuetsu Paper Mills in July. However, the first ever hostile takeover battle between large firms in Japan failed as Hokuetsu shareholders offered only 5% of the outstanding shares. M&amp;A deals involving Japanese companies are on the rise. During the year, we observed several examples of increasing corporate activity, such as an increase in M&amp;A between Japanese companies, cross-border M&amp;A, MBO, etc.; however, compared with other countries, M&amp;A activity is still limited in Japan. However, such factors as globalization in economy, excess cash on hand by Japanese companies and initiation of the New Company Law will certainly stimulate M&amp;A activities in Japan.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.35in;text-align:justify;'><font size=2>Looking at the stock market, the real estate, precision instruments and transportation equipment sectors outperformed the overall market, whereas other financial businesses, oil and coal products and construction per-formed worst during the one-year period ended October 31, 2006. The environment surrounding real estate was favorable as recovery in land prices, office rents and new condominium prices continued while funding costs (bank loan rates, bond yields etc.) stayed at low levels. Export oriented sectors such as precision instruments and transportation equipment performed better on the back of the yen depreciation against major currencies and steady global demands for their products (cars, digital still cameras, printers, etc.).</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.35in;text-align:justify;'><font size=2>Other financial businesses experienced steep declines in stock prices as revisions to the consumer loan laws proposed by the Liberal Democratic Party are likely to adversely affect profitability of the whole industry and trigger a credit crunch for consumer finance companies. The oil related sector underperformed, as crude oil prices peaked and the prospects for refinery margins are gloomy given declining domestic demand. The construction industry also suffered from an unfavorable environment as competition for public sector projects intensified.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Performance/Attribution Analysis</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.39in;text-align:justify;'><font size=2>Table 1.  Net asset value (&#147;NAV&#148;) performance in comparison with the benchmark (TOPIX), </font><i><font size=2>U.S. Dollar</font></i><font size=2> </font><i><font size=2>(&#147;USD&#148;)</font></i><font size=2> </font><i><font size=2>base</font></i></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr >
        <td width="511" valign=bottom style='border-top:  solid black 1.0pt;padding: 0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>  </td>
        <td  colspan="3" valign=bottom style='  border-top:solid black 1.0pt;  padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Latest 12 Months</font></b><br>  <b><font size=1>(As of October 31, 2006)</font></b><br>  <b><font size=1>%</font></b></p>  </div>  </td> </tr>
    <tr >
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Japan Equity Fund (time weighted return)</font> </p> </td>
        <td width="60" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>10.97</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="31">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Benchmark (TOPIX)</font> </p> </td>
        <td width="60" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>10.10</font></p> </div> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="31">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Difference </font> </p> </td>
        <td width="60" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.87</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="31">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="511" ></td>

        <td width="36" ></td>

        <td width="60" ></td>

        <td width="31" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.39in;text-align:justify;'><font size=2>Table 2.  Attribution Analysis Summary, </font><i><font size=2>Japanese Yen (&#147;JPY&#148;) base</font></i><font size=2> (Latest 12 Months)</font></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr >
        <td width="511" valign=bottom style='border-top:  solid black 1.0pt;padding: 0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>  </td>
        <td  colspan="3" valign=bottom style='  border-top:solid black 1.0pt;  padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>(%)</font></b></p>  </div>  </td> </tr>
    <tr >
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Portfolio (Equity Only)</font> </p> </td>
        <td width="60" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>15.08</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="30">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Benchmark (TOPIX)</font> </p> </td>
        <td width="60" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>13.23</font></p> </div> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="30">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Difference</font> </p> </td>
        <td width="60" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.85</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="30">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><b><font size=1>Breakdown</font></b></u><u></u></p> </td>
        <td width="60" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="30">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Sector Selection</font> </p> </td>
        <td width="60" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.56</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="30">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Stock Selection</font> </p> </td>
        <td width="60" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.29</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="30">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Other</font> </p> </td>
        <td width="60" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </div> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="30">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total</font> </p> </td>
        <td width="60" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.85</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="30">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="511" ></td>

        <td width="36" ></td>

        <td width="60" ></td>

        <td width="30" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>6</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.39in;text-align:justify;'><font size=2>Table 3.  Portfolio Return (Equity Only) vs. Benchmark Return, USD base (monthly)</font></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr >
        <td width="55" valign=bottom style='border-top:solid black 1.0pt;  padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="288" valign=bottom style='border-top:  solid black 1.0pt;padding: 0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="98" valign=bottom style='border-top:solid black 1.0pt;  padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Portfolio</font></b><br>  <b><font size=1>Return</font></b><br>  <b><font size=1>(A)</font></b><br>  <b><font size=1>(%)</font></b></p>  </div>  </td>
        <td width="98" valign=bottom style='border-top:solid black 1.0pt;  padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Benchmark</font></b><br>  <b><font size=1>Return</font></b><br>  <b><font size=1>(B)</font></b><br>  <b><font size=1>(%)</font></b></p>  </div>  </td>
        <td width="98" valign=bottom style='border-top:solid black 1.0pt;  padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Relative</font></b><br>  <b><font size=1>Return</font></b><br>  <b><font size=1>(A) &#150; (B)</font></b><br>  <b><font size=1>(%)</font></b></p>  </div>  </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2005</font></p> </td>
        <td width="288" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>November</font> </p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.90</font></p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.84</font></p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:23.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>-0.94</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="288" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>December</font> </p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>7.39</font></p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>8.86</font></p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:23.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>-1.47</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2006</font></p> </td>
        <td width="288" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>January</font> </p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>5.48</font></p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>3.98</font></p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.50</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="288" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>February</font> </p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:23.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>-1.95</font></p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:23.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>-1.71</font></p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:23.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>-0.24</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="288" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>March</font> </p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>3.59</font></p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>3.02</font></p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.57</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="288" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>April</font> </p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.42</font></p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.99</font></p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:23.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>-0.57</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="288" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>May</font> </p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:23.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>-5.79</font></p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:23.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>-6.20</font></p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.41</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="288" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>June</font> </p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:23.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>-1.88</font></p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:23.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>-2.15</font></p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.27</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="288" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>July</font> </p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.04</font></p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:23.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>-0.61</font></p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.65</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="288" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>August</font> </p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.97</font></p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.79</font></p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:23.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>-0.82</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="288" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>September</font> </p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:23.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>-1.05</font></p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:23.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>-1.95</font></p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.90</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="288" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>October</font> </p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.03</font></p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.59</font></p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.44</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.39in;text-align:justify;'><font size=2>Table 4.  Attribution Analysis Breakdown, JPY base (Latest 12 Months) &#150; Equity Only</font></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr >
        <td width="211" valign=bottom style='border-top:  solid black 1.0pt;padding: 0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="71" valign=bottom style='border-top:solid black 1.0pt;  padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Portfolio</font></b><br>  <b><font size=1>Weight</font></b><br>  <b><font size=1>%</font></b></p>  </div>  </td>
        <td width="71" valign=bottom style='border-top:solid black 1.0pt;  padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Benchmark</font></b><br>  <b><font size=1>Weight</font></b><br>  <b><font size=1>%</font></b></p>  </div>  </td>
        <td width="71" valign=bottom style='border-top:solid black 1.0pt;  padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Portfolio</font></b><br>  <b><font size=1>Return</font></b><br>  <b><font size=1>%</font></b></p>  </div>  </td>
        <td width="71" valign=bottom style='border-top:solid black 1.0pt;  padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Benchmark</font></b><br>  <b><font size=1>Return</font></b><br>  <b><font size=1>%</font></b></p>  </div>  </td>
        <td width="71" valign=bottom style='border-top:solid black 1.0pt;  padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Sector</font></b><br>  <b><font size=1>Selection</font></b><br>  <b><font size=1>Effect</font></b><br>  <b><font size=1>%</font></b></p>  </div>  </td>
        <td width="71" valign=bottom style='border-top:solid black 1.0pt;  padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Stock</font></b><br>  <b><font size=1>Selection</font></b><br>  <b><font size=1>Effect</font></b><br>  <b><font size=1>%</font></b></p>  </div>  </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Fishing, Agriculture &amp; Forestry</font> </p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.09</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>5.69</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.01</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Mining</font> </p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.41</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>18.40</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>-0.05</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Construction</font> </p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.44</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.22</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>-4.47</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>-2.50</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>-0.04</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>-0.14</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Manufacturing</font> </p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>54.84</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>50.27</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>21.76</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>20.53</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.29</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.65</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Electric Power &amp; Gas</font> </p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>3.26</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>3.85</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>14.79</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>15.67</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.04</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>-0.05</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Transport and Communication</font> </p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>8.90</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>9.63</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>10.62</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>6.16</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.03</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.32</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Commerce</font> </p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>6.64</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>8.67</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>-3.32</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>4.78</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.16</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>-0.58</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Finance &amp; Insurance</font> </p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>21.43</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>20.86</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>9.07</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.75</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>-0.15</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.55</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Real Estate</font> </p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.28</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.47</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>26.35</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>49.65</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.08</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>-0.55</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Services</font> </p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.21</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.53</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>-1.27</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>-1.47</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.21</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.05</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total</font> </p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>100.00</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>100.00</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>15.08</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>13.23</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.60</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.25</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>7</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.39in;text-align:justify;'><font size=2>Table 5. Attribution Analysis Breakdown, JPY base (Latest 12 Months) &#150; Equity Only</font></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr >
        <td width="211" valign=bottom style='border-top:  solid black 1.0pt;padding: 0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="71" valign=bottom style='border-top:solid black 1.0pt;  padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Portfolio</font></b><br>  <b><font size=1>Weight</font></b><br>  <b><font size=1>%</font></b></p>  </div>  </td>
        <td width="71" valign=bottom style='border-top:solid black 1.0pt;  padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Benchmark</font></b><br>  <b><font size=1>Weight</font></b><br>  <b><font size=1>%</font></b></p>  </div>  </td>
        <td width="71" valign=bottom style='border-top:solid black 1.0pt;  padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Portfolio</font></b><br>  <b><font size=1>Return</font></b><br>  <b><font size=1>%</font></b></p>  </div>  </td>
        <td width="71" valign=bottom style='border-top:solid black 1.0pt;  padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Benchmark</font></b><br>  <b><font size=1>Return</font></b><br>  <b><font size=1>%</font></b></p>  </div>  </td>
        <td width="71" valign=bottom style='border-top:solid black 1.0pt;  padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Sector</font></b><br>  <b><font size=1>Selection</font></b><br>  <b><font size=1>Effect</font></b><br>  <b><font size=1>%</font></b></p>  </div>  </td>
        <td width="71" valign=bottom style='border-top:solid black 1.0pt;  padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Stock</font></b><br>  <b><font size=1>Selection</font></b><br>  <b><font size=1>Effect</font></b><br>  <b><font size=1>%</font></b></p>  </div>  </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Fishing, Agriculture &amp; Forestry</font> </p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.09</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>5.69</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.01</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Mining</font> </p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.41</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>18.40</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.05</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Construction</font> </p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>2.44</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>2.22</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;4.47</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;2.50</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.04</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.14</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Foods</font> </p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>2.51</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>16.87</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.04</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Textiles &amp; Apparel</font> </p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1.50</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1.16</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;3.69</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>8.22</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.17</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.18</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Pulp &amp; Paper</font> </p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.84</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.39</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;6.71</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>6.74</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.04</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.04</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Chemicals</font> </p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>5.58</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>5.30</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>32.69</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>15.26</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.01</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1.01</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Pharmaceutical</font> </p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>4.77</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>3.98</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>22.82</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>24.23</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.06</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.07</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Oil &amp; Coal Products</font> </p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.29</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.73</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;3.89</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;6.85</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.08</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.03</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Rubber Products</font> </p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1.03</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.59</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;9.59</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>3.01</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.09</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.01</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Glass &amp; Ceramics Product</font> </p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.75</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1.18</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>29.03</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>15.08</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.09</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.03</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Iron &amp; Steel</font> </p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1.52</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>2.56</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>25.10</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>16.56</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.13</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.15</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Nonferrous Metals</font> </p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>2.55</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1.25</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>9.47</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>24.02</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.39</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.59</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Metal Products</font> </p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.82</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.62</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>41.96</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>20.07</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.01</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Machinery</font> </p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>6.20</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>4.21</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>13.29</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>14.89</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.08</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.13</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Electrical Appliances</font> </p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>14.32</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>13.45</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>23.71</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>25.02</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.17</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.13</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Transport Equipment</font> </p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>11.17</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>9.42</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>27.99</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>26.23</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.26</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.21</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Precision Instruments</font> </p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>2.45</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1.24</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>17.37</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>26.11</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.18</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.17</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Other Products</font> </p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1.02</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1.68</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>39.08</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>26.98</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.03</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.17</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Wholesale Trade</font> </p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1.69</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>4.43</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>7.68</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>8.25</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.14</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.03</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Retail Trade</font> </p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>4.94</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>4.24</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;7.30</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1.41</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.07</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.46</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Banks</font> </p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>13.28</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>13.45</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>8.04</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>3.64</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.08</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.72</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Other Financing Business</font> </p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>2.92</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>2.45</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>29.88</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;15.15</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.10</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1.44</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Securities &amp; Commodity Futures</font> </p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1.53</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>2.40</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>5.75</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>16.97</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.27</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.04</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Insurance</font> </p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>3.73</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>2.55</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;1.52</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>4.41</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.09</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.26</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Real Estate</font> </p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>2.28</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>2.47</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>26.35</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>49.65</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.08</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.55</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Land Transportation</font> </p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>3.05</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>3.18</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>18.11</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>14.60</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.01</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.14</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Marine Transportation</font> </p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.69</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.52</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>11.14</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>13.81</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.02</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.01</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Air Transportation</font> </p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.33</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.13</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.05</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Warehouse &amp; Harbor Trans</font> </p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.24</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>7.42</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.02</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Info &amp; Communication</font> </p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>5.17</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>5.37</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>7.29</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>2.31</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.06</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.12</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Electric Power &amp; Gas</font> </p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>3.26</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>3.85</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>14.79</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>15.67</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.04</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.05</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Services</font> </p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.21</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1.53</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;1.27</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;1.47</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.21</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.05</font></p> </td> </tr>
    <tr >
        <td width="211" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total</font> </p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>100.00</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>100.00</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>15.08</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>13.23</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.56</font></p> </td>
        <td width="71" style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1.29</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>8</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Comment</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.35in;text-align:justify;'><font size=2>As shown in Table 1, the NAV of the Fund increased by 10.97% in USD terms during the twelve months from November 1, 2005 to October 31, 2006. Over the same period, the benchmark (TOPIX) gained 10.10% in USD terms. The depreciation of the yen against the U.S. dollar was a negative factor for the absolute return measured in U.S. dollars. The portfolio outperformed the benchmark by 0.87% in USD terms.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.35in;text-align:justify;'><font size=2>Table 2 shows that the performance of the equity portion of the portfolio, excluding expenses and some cash positions in JPY terms, was 15.08%, in comparison with 13.23% for the benchmark, indicating out-performance of 1.85% on this basis.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><i><font size=2>(Stock Selection)</font></i></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.35in;text-align:justify;'><font size=2>The attribution analysis indicates that sizable positive contributions were made in the Other Finance (1.44%), Chemicals (1.01%), and Banks (0.72%) sectors. Negative contributions in stock selection came from Nonferrous Metals (&#150;0.59%), Real Estate (&#150;0.55%) and Retail Trade (&#150;0.46%) sectors. The total stock selection contribution was 1.29% over the period.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.35in;text-align:justify;'><font size=2>Major positive contributors were Tokuyama (0.69%, specialty chemical producer), Orix (0.64%, leasing company), Shin-Etsu Chemical (0.56%, specialty chemical producer) and Mitsui Fudosan (0.44%, real estate company). Major negative contributors were Maeda Corp (&#150;0.62%, a construction company), Neomax (&#150;0.48%, metal processor) and Sundrug (&#150;0.39%, specialty retailer).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><i><font size=2>(Sector Selection)</font></i></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.35in;text-align:justify;'><font size=2>The attribution analysis shows that positive contributions came from being overweight in Nonferrous Metals (0.39%), overweight in Transport Equipment (0.26%), and underweight in Services (0.21%), while there were negative contributions from an underweight in Securities and Commodity Futures (&#150;0.27%) and overweight in Textiles &amp; Apparel (&#150;0.17%).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Outlook &amp; Strategy</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.35in;text-align:justify;'><font size=2>The Japanese stock market has been a clear laggard in 2006 after a strong performance in the last three years. We are optimistic about the Japanese stock market for the reasons discussed below.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.35in;text-align:justify;'><font size=2>First, economic growth driven by business is expected to continue. The Japanese economy has broken the record length of an economic recovery period after World War II this year, despite a moderate growth rate (2-3%). Lack of strong participation by consumers is a major characteristic of the current economic cycle. The Japanese economic outlook will continue to depend on the global economic outlook. Second, the Abe cabinet will pursue a policy of balancing the budget by seeking higher tax revenues through higher economic growth. A symbol of this is the appointment of the reformist economist, Mr. Honma, as the head of the government tax research council. The government will take measures to encourage innovation and capital expenditures by giving tax incentives such as allowing faster depreciation. In short, the current government is expected to take a business and stock market-friendly
direction. Third, political relationships with China and South Korea are likely to improve. North Korean nuclear test issues have taken areas of tension between the countries off the agenda at least in the short term. Japan must help China solve ecology problems. Fourth, as a weak yen has been too comfortable for the Japanese economy, corporate profits and overseas investment income, a major risk factor is yen appreciation or dollar depreciation. The five percentage point interest rate differential between Japan and the United States and slow interest rate increase as a result of near zero CPI growth in Japan will encourage outflow of investment funds seeking money from Japan to the United States. The yen/US dollar exchange rate is likely to be in the 115-120 range.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>9</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.35in;text-align:justify;'><font size=2>In the short term, annual rebalancing of international portfolios will likely work in favor of lagging markets such as Japan and Korea toward the end of 2006 or in the early part of the new year.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.35in;text-align:justify;'><font size=2>After some consolidation attributed to the overseas market correction due to seasonal factors such as tax selling or the upcoming U.S. election, the Tokyo market is expected to resume its rally toward 2007. In regard to sector strategy, we will maintain overweight positions in consumer discretionary, technology and industrials benefiting from global economic growth and underweight in defensive sectors, including consumer staple and utilities.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Fund Performance</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.35in;text-align:justify;'><font size=2>During the year ended October 31, 2006, the Fund&#146;s market price on the New York Stock Exchange (&#147;NYSE&#148;) ranged from a low of $7.32 per share on June 14, 2006 to a high of $10.12 on November 28, 2005. The Fund&#146;s NYSE market price closed at $8.14 per share on October 31, 2006.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.35in;text-align:justify;'><font size=2>The NYSE market price in relation to the Fund&#146;s net asset value per share during the year ended October 31, 2006 ranged from a high discount of 8.23% on May 17, 2006 to a high premium of 24.69% on November 24, 2005, and ended the period at a discount of 5.13%.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.35in;text-align:justify;'><font size=2>The Fund has not invested in derivative securities. Although foreign currency hedging is permitted by the Fund&#146;s prospectus, the Fund has not engaged in any foreign currency hedging.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Portfolio Management</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.35in;text-align:justify;'><font size=2>Mr. Koichi Ogawa, CFA, is the Executive Director and Chief Portfolio Manager of Daiwa SB Investments Ltd. (&#147;DSBI&#148;) for all North American clients. A senior member of the Investment Policy Committee (IPC) of DSBI, Mr. Ogawa has 31 years of investment experience and has been responsible for Japan stock selection since 1984. He spent nine years with Daiwa Securities as an institutional research analyst and three years in New York analyzing U.S. securities. He graduated from Tohoku University with a B.A. in Law in 1972.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.35in;text-align:justify;'><font size=2>Mr. Naoto Nagai, CFA, is a Senior Portfolio Manager with a total of 10 years of experience in the Japanese and global equity markets. Prior to joining Daiwa SB Investments in 2006, he was a fund manager and research analyst at Resona Trust Company Japan. In 1996 he earned an MBA from the University of Rochester and in 1991 he graduated from the University of Osaka Prefecture with a B.S. in Chemistry. He assumed the day-to-day portfolio management responsibility for the Fund effective October 18, 2006.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.35in;text-align:justify;'><font size=2>We thank you for your support of The Japan Equity Fund, Inc. and your continued interest in the Japanese economy and marketplace.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;line-height: 150%;'><font size=2>Sincerely,</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="548" style='margin-left:14.2pt;border-collapse:collapse'>
    <tr style=' page-break-inside:avoid;height:67.0pt'>
        <td width="293" style='padding:0cm 0cm 0cm 0cm;height:67.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><img src="img1.jpg"><br> </p> </td>
        <td width="255" style='padding:0cm 0cm 0cm 0cm;height:67.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><img src="img2.jpg"><br> </p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="468" style='border-collapse:collapse'>
    <tr >
        <td width="331" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>HIROSHI KIMURA</font></B></p> </td>
        <td  colspan="2" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>HIDEO TANAKA</font></B></p> </td> </tr>
    <tr >
        <td width="331" valign=top style='padding:0cm 0cm 0cm 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Chairman of the Board</font></i></p> </td>
        <td width="92" valign=top style='padding:0cm 0cm 0cm 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><i><font size=2>President</font></i></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="45">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>10</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></font></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:justify;'><b><font size=3>Portfolio of Investments</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;line-height: 150%;'><b><font size=2>October 31, 2006</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;border-top:solid 0.5pt;padding-top:1;'><b><font size=2>COMMON STOCKS&#151;98.53%</font></b></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr >
        <td width="54" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Shares</font></b></p> </div> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Value</font></b></p> </div> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Shares</font></b></p> </div> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Value</font></b></p> </div> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Banks&#151;12.90%</font></b></p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Electric Appliances&#151;14.54%</font></b></p> </td>
        <td width="66" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="54" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>422</font></p> </td>
        <td width="180" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Mitsubishi UFJ Financial Group, Inc.</font> </p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$5,256,673</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>66,000</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Canon Inc.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$3,506,652</font></p> </td> </tr>
    <tr >
        <td width="54" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>540</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Mizuho Financial Group, Inc.</font> </p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>4,168,630</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>130,000</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Casio Computer Co., Ltd.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2,605,288</font></p> </td> </tr>
    <tr >
        <td width="54" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>80,000</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>The Bank of Fukuoka, Ltd.</font> </p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>633,167</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>10,000</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Fanuc Ltd.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>860,097</font></p> </td> </tr>
    <tr >
        <td width="54" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>180,000</font></p> </td>
        <td width="180" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>The Bank of Yokohama,</font><br> <font size=1>Ltd.</font> </p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,378,866</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>176,000</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Matsushita Electric Industrial Co., Ltd.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>3,646,471</font></p> </td> </tr>
    <tr >
        <td width="54" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>65,000</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>The Chiba Bank, Ltd.</font> </p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>577,239</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>9,000</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Murata Manufacturing Co., Ltd.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>623,845</font></p> </td> </tr>
    <tr >
        <td width="54" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>61,000</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>The Gunma Bank, Ltd.</font> </p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>422,312</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>130,000</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Sharp Corp.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2,296,839</font></p> </td> </tr>
    <tr >
        <td width="54" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>300,000</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>The Sumitomo Trust &amp; Banking Co., Ltd.</font> </p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>3,198,034</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>110,000</font></p> </td>
        <td width="170" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Shinko Electric Industries Co., Ltd.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2,908,228</font></p> </td> </tr>
    <tr >
        <td width="54" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>56,000</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>The Tochigi Bank, Ltd.</font> </p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>336,921</font></p> </div> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>20,000</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>TDK Corp.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,550,716</font></p> </div> </td> </tr>
    <tr >
        <td width="54" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>15,971,842</font></p> </div> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>17,998,136</font></p> </div> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Chemicals&#151;4.05%</font></b></p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Electric Power &amp; Gas&#151;4.11%</font></b></p> </td>
        <td width="66" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="54" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>120,000</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Daicei Chemical Industries Ltd.</font> </p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>790,103</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>122,000</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Kyushu Electric Power Co., Inc.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2,827,472</font></p> </td> </tr>
    <tr >
        <td width="54" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>19,500</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Fujimi Inc.</font> </p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>568,426</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>36,000</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Tohoku Electric Power Co., Inc.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>790,103</font></p> </td> </tr>
    <tr >
        <td width="54" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>29,000</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Nitto Denko Corp.</font> </p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,639,098</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>51,000</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Tokyo Electric Power Co., Inc.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,469,367</font></p> </div> </td> </tr>
    <tr >
        <td width="54" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>31,000</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Shin-Etsu Chemical Co., Ltd.</font> </p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2,014,829</font></p> </div> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>5,086,942</font></p> </div> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="54" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>5,012,456</font></p> </div> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Glass &amp; Ceramic Products&#151;1.03%</font></b></p> </td>
        <td width="66" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Communication&#151;3.95%</font></b></p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>6,600</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Miraial Co., Ltd.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>675,045</font></p> </td> </tr>
    <tr >
        <td width="54" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>660</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>NTT Corp.</font> </p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>3,294,128</font></p> </td>
        <td width="28" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>120,000</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Toshiba Ceramica Co., Ltd.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>606,050</font></p> </div> </td> </tr>
    <tr >
        <td width="54" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,050</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>NTT DoCoMo, Inc.</font> </p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,592,662</font></p> </div> </td>
        <td width="28" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,281,095</font></p> </div> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="54" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>4,886,790</font></p> </div> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Insurance&#151;3.64%</font></b></p> </td>
        <td width="66" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Construction&#151;3.08%</font></b></p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>190,000</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Aioi Insurance Co., Ltd.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,296,077</font></p> </td> </tr>
    <tr >
        <td width="54" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>90,000</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Daiwa House Industry Co., Ltd.</font> </p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,609,186</font></p> </td>
        <td width="28" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>32,500</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Millea Holdings Inc.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,217,270</font></p> </td> </tr>
    <tr >
        <td width="54" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>30,000</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Kinden Corp.</font> </p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>221,930</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>100,000</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Mitsui Sumitomo Insurance Co., Ltd.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,232,946</font></p> </td> </tr>
    <tr >
        <td width="54" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>270,000</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Maeda Corp.</font> </p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,111,940</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>120,000</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Nissay Dowa General Insurance Co., Ltd.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>758,580</font></p> </div> </td> </tr>
    <tr >
        <td width="54" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>80,000</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Sumitomo Forestry Co., Ltd.</font> </p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>870,435</font></p> </div> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="170" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="66" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>4,504,873</font></p> </div> </td> </tr>
    <tr >
        <td width="54" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>3,813,491</font></p> </div> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="170" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="66" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>11</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></font></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:justify;'><b><font size=3>Portfolio of Investments (continued)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;line-height: 150%;'><b><font size=2>October 31, 2006</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;border-top:solid 0.5pt;padding-top:1;'><b><font size=2>COMMON STOCKS (continued)</font></b></p>


<table border="0" cellspacing=0 cellpadding=0 width="631" style='border-collapse:collapse'>
    <tr >
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Shares</font></b></p> </div> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Value</font></b></p> </div> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Shares</font></b></p> </div> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Value</font></b></p> </div> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Iron &amp; Steel&#151;2.27%</font></b></p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Precision Instruments&#151;2.74%</font></b></p> </td>
        <td width="66" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>32,000</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>JFE Holdings, Inc.</font> </p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$1,274,468</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>55,000</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Hoya Corp.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$2,106,601</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>380,000</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Nippon steel Corp.</font> </p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,532,751</font></p> </div> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>32,000</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Terumo Corp.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,282,603</font></p> </div> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2,807,219</font></p> </div> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>3,389,204</font></p> </div> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Land Transportation&#151;2.41%</font></b></p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Pulp &amp; Paper&#151;0.86%</font></b></p> </td>
        <td width="66" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>430</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>East Japan Railway Co.</font> </p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2,980,595</font></p> </div> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>300</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Nippon Paper Group Inc.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,065,164</font></p> </div> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Machinery&#151;4.76%</font></b></p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Real Estate&#151;3.16%</font></b></p> </td>
        <td width="66" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>95,000</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Komatsu Ltd.</font> </p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,698,585</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>20,000</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Atrium Co., Ltd.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>676,214</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>300,000</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Mitsubishi Heavy Industries Ltd.</font> </p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,327,006</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>65,000</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Mitsui Fudosan Co., Ltd.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,586,306</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>52,000</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Miura Co., Ltd.</font> </p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,235,997</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,600</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Nomura Real Estate Holdings Inc.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>59,249</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>85,000</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>NSK Ltd.</font> </p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>705,872</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>110,000</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Park24 Co., Ltd.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,586,476</font></p> </div> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>63,700</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>OSG Corp.</font> </p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>930,589</font></p> </div> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>3,908,245</font></p> </div> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>5,898,049</font></p> </div> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Retail Trade&#151;3.22%</font></b></p> </td>
        <td width="66" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Marine Transportation&#151;0.73%</font></b></p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>10,000</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Shimamura Co., Ltd.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,071,943</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>140,000</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Nippon Yusen Kabushiki Kaisha</font> </p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>900,432</font></p> </div> </td>
        <td width="28" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>66,000</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Sundrug Co., Ltd.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,498,856</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Metal Products&#151;1.06%</font></b></p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>14,300</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Yamada Denki Co., Ltd.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,410,491</font></p> </div> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>120,000</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>NHK Spring Co., Ltd.</font> </p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,314,804</font></p> </div> </td>
        <td width="28" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>3,981,290</font></p> </div> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Non&#151;Ferrous Metals&#151;1.93%</font></b></p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Rubber Products&#151;0.83%</font></b></p> </td>
        <td width="66" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>170,000</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Sumitomo Electric Industries, Ltd.</font> </p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2,385,561</font></p> </div> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>50,000</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Bridgestone Corp.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,033,811</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Oil &amp; Coal Products&#151;0.45%</font></b></p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Services&#151;1.28%</font></b></p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>75,000</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Nippon Oil Corp.</font> </p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>552,919</font></p> </div> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>11,000</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Nomura Research Institute, Ltd.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,590,204</font></p> </div> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Other Financing Business&#151;2.71%</font></b></p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Securities&#151;2.02%</font></b></p> </td>
        <td width="66" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>75,500</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Hitachi Capital Corp.</font> </p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,477,883</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>143,000</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Nomura Holdings Inc.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2,502,288</font></p> </div> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>6,700</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Orix Corp.</font> </p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,870,731</font></p> </div> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Textile &amp; Apparel&#151;1.88%</font></b></p> </td>
        <td width="66" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>3,348,614</font></p> </div> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>420,000</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Teijin Ltd.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2,324,040</font></p> </div> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Pharmaceutical&#151;4.95%</font></b></p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Transportation Equipment&#151;11.91%</font></b></p> </td>
        <td width="66" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>33,300</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Eisai Co., Ltd.</font> </p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,690,255</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>42,000</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Aisin Seiki Co., Ltd.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,281,247</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>26,000</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Ono Pharmaceuticals Co., Ltd.</font> </p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,258,029</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>38,000</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Denso Corp.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,436,149</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>50,000</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Takeda Pharmaceutical Co., Ltd.</font> </p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>3,181,934</font></p> </div> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>86,000</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Honda Motor Co., Ltd.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>3,017,033</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>6,130,218</font></p> </div> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>150,000</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Nissan Motor Co., Ltd.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,780,781</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="76" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>80</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Tachi-S Co., Ltd.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>603</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>123,000</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Toyota Motor Corp.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>7,223,032</font></p> </div> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>14,738,845</font></p> </div> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="180" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="76" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="170" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="66" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>12</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></font></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:justify;'><b><font size=3>Portfolio of Investments (concluded)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;line-height: 150%;'><b><font size=2>October 31, 2006</font></b></p>


<table border="0" cellspacing=0 cellpadding=0 width="639" style='border-collapse:collapse;  '>
    <tr >
        <td  colspan="3" valign=top style=' padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm; margin-left:0cm;margin-right:1.7pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>COMMON STOCKS (concluded)</font></b></p> </div> </td>
        <td width="28" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="4" valign=top style=' padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>SHORT-TERM INVESTMENTS&#151;0.05%</font></b></p> </div> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Shares</font></b></p> </div> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Value</font></b></p> </div> </td>
        <td width="28" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=bottom style=' padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Principal Amount (000)</font></b></p> </div> </td>
        <td width="165" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="79" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Value</font></b></p> </div> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td  colspan="2" valign=bottom style=' padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Wholesale Trade&#151;2.06%</font></b></p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="28" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="3" valign=bottom style=' padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>U.S. DOLLAR TIME DEPOSIT&#151;0.05%</font></b></p> </td>
        <td width="79" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="55" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>12,000</font></p> </td>
        <td width="170" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Autobacs Seven Co.,</font><br> <font size=1>Ltd.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;431,150</font></p> </td>
        <td width="28" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="73" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$64</font></p> </td>
        <td  colspan="2" valign=bottom style=' padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Bank of New York Time </font><br> <font size=1>Deposit, 0.05%,</font></p> </td>
        <td width="79" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="55" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>40,000</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Mimasu Semiconductor Industry Co., Ltd.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>815,185</font></p> </td>
        <td width="28" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="73" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=bottom style=' padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>due 11/1/06</font><br> <font size=1>(Cost&#151;$64,285)</font> </p> </td>
        <td width="79" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:2.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;64,285</font></p> </div> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="55" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>100,000</font></p> </td>
        <td width="170" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Sumitomo Corp.</font> </p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,303,279</font></p> </div> </td>
        <td width="28" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="3" valign=bottom style=' padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total Investments&#151;98.58%</font><br> <font size=1>(Cost&#151;$99,303,495)</font> </p> </td>
        <td width="79" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>122,021,026</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="55" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="170" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2,549,614</font></p> </div> </td>
        <td width="28" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="3" valign=bottom style=' padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Other assets less liabilities&#151;1.42%</font> </p> </td>
        <td width="79" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,757,909</font></p> </div> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td  colspan="2" valign=bottom style=' padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total Common Stocks</font><br> <font size=1>(Cost&#151;$99,239,210)</font></p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>121,956,741</font></p> </div> </td>
        <td width="28" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="3" valign=bottom style=' padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=1>NET ASSETS</font></B><font size=1> (Applicable to 14,421,650 shares of capital stock outstanding; equivalent to $8.58 per share) )&#151;100.00%</font> </p> </td>
        <td width="79" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:double black 2.25pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:2.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$123,778,935</font></p> </div> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td  colspan="2" valign=bottom style=' padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="66" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="28" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="3" valign=bottom style=' padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:21.6pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="79" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>
        <td width="55" ></td>

        <td width="170" ></td>

        <td width="66" ></td>

        <td width="28" ></td>

        <td width="73" ></td>

        <td width="3" ></td>

        <td width="165" ></td>

        <td width="79" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;line-height: 150%;'><font size=2>See accompanying notes to financial statements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>13</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></font></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr >
        <td  colspan="2" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>EQUITY</font></B><br> <B><font SIZE=2>CLASSIFICATIONS HELD</font></B><br> <b><font size=2>October 31, 2006</font></b></p> </td>
        <td  colspan="4" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>TEN LARGEST EQUITY</font></B><br> <B><font SIZE=2>POSITIONS HELD</font></B><br> <b><font size=2>October 31, 2006</font></b></p> </td> </tr>
    <tr >
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font  size=1>Industry</font></b></p>  </div>  </td>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Percent of Net Assets</font></b></p>  </div>  </td>
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font  size=1>Issue</font></b></p>  </div>  </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Percent of Net Assets</font></b></p>  </div>  </td>
        <td style='padding:0cm 0cm 0cm 0cm'  width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Electric Appliances</font> </p> </td>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>14.54%</font></p> </td>
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Toyota Motor Corp</font> </p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>5.84%</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Banks</font> </p> </td>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>12.90</font></p> </td>
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Mitsubishi UFJ Financial Group, Inc.</font> </p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>4.25</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Transportation Equipment</font> </p> </td>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>11.91</font></p> </td>
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Mizuho Financial Group, Inc.</font> </p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>3.37</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Pharmaceutical</font> </p> </td>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>4.95</font></p> </td>
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Matsushita Electric Industrial Co., Ltd.</font> </p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.95</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Machinery</font> </p> </td>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>4.76</font></p> </td>
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Canon Inc.</font> </p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.83</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Electric Power &amp; Gas</font> </p> </td>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>4.11</font></p> </td>
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>NTT Corp.</font> </p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.66</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Chemicals</font> </p> </td>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>4.05</font></p> </td>
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>The Sumitomo Trust &amp; Banking Co., Ltd.</font> </p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.58</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Communication</font> </p> </td>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>3.95</font></p> </td>
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Takeda Pharmaceutical Co., Ltd.</font> </p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.57</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Insurance</font> </p> </td>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>3.64</font></p> </td>
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Honda Motor Co., Ltd.</font> </p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.44</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Retail Trade</font> </p> </td>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>3.22</font></p> </td>
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>East Japan Railway Co.</font> </p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.41</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Real Estate</font> </p> </td>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>3.16</font></p> </td>
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Construction</font> </p> </td>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>3.08</font></p> </td>
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Precision Instruments</font> </p> </td>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.74</font></p> </td>
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Other Financing Business</font> </p> </td>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.71</font></p> </td>
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Land Transportation</font> </p> </td>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.41</font></p> </td>
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Iron &amp; Steel</font> </p> </td>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.27</font></p> </td>
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Wholesale Trade</font> </p> </td>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.06</font></p> </td>
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Securities</font> </p> </td>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.02</font></p> </td>
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Non-Ferrous Metals</font> </p> </td>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.93</font></p> </td>
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Textile &amp; Apparel</font> </p> </td>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.88</font></p> </td>
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Services</font> </p> </td>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.28</font></p> </td>
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Metal Products</font> </p> </td>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.06</font></p> </td>
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Glass &amp; Ceramic Products</font> </p> </td>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.03</font></p> </td>
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Pulp &amp; Paper</font> </p> </td>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.86</font></p> </td>
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Rubber Products</font> </p> </td>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.83</font></p> </td>
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Marine Transportation</font> </p> </td>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.73</font></p> </td>
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Oil &amp; Coal Products</font> </p> </td>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.45</font></p> </td>
        <td width="250" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="71" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="250" ></td>

        <td width="67" ></td>

        <td width="1" ></td>

        <td width="250" ></td>

        <td width="71" ></td>

        <td width="1" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>14</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></font></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:justify;'><b><font size=3>Statement of Assets and Liabilities</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;line-height: 150%;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><b><font size=2>October 31, 2006</font></b></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr >
        <td width="541" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Assets</font></b></p> </td>
        <td width="97" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="541" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:21.6pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Investment in securities, at value (cost&#151;$99,303,495)</font> </p> </td>
        <td width="97" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;122,021,026</font></p> </td> </tr>
    <tr >
        <td width="541" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:21.6pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Cash denominated in foreign currency (cost&#151;$1,310,454)</font> </p> </td>
        <td width="97" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,314,103</font></p> </td> </tr>
    <tr >
        <td width="541" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:21.6pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Interest and dividends receivable</font> </p> </td>
        <td width="97" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>550,282</font></p> </td> </tr>
    <tr >
        <td width="541" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:21.6pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Prepaid expenses and other assets</font> </p> </td>
        <td width="97" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:32.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>57,843</font></p> </div> </td> </tr>
    <tr >
        <td width="541" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:32.4pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total assets</font> </p> </td>
        <td width="97" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>123,943,254</font></p> </div> </td> </tr>
    <tr >
        <td width="541" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Liabilities</font></b></p> </td>
        <td width="97" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="541" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:21.6pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Payable for management fees</font> </p> </td>
        <td width="97" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:32.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>13,241</font></p> </td> </tr>
    <tr >
        <td width="541" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:21.6pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Payable for advisory fees</font> </p> </td>
        <td width="97" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:32.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>19,862</font></p> </td> </tr>
    <tr >
        <td width="541" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:21.6pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Payable to other affiliates</font> </p> </td>
        <td width="97" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:32.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>26,670</font></p> </td> </tr>
    <tr >
        <td width="541" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:21.6pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Accrued expenses and other liabilities</font> </p> </td>
        <td width="97" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>104,546</font></p> </div> </td> </tr>
    <tr >
        <td width="541" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:32.4pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total liabilities</font> </p> </td>
        <td width="97" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>164,319</font></p> </div> </td> </tr>
    <tr >
        <td width="541" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Net Assets</font></b></p> </td>
        <td width="97" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="541" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:21.6pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Capital stock, $0.01 par value per share; total 30,000,000 shares authorized; 14,421,650 shares issued</font><br> <font size=1>and outstanding</font> </p> </td>
        <td width="97" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>144,217</font></p> </td> </tr>
    <tr >
        <td width="541" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:21.6pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Paid-in capital in excess of par value</font> </p> </td>
        <td width="97" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>125,530,308</font></p> </td> </tr>
    <tr >
        <td width="541" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:21.6pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Undistributed net investment income</font> </p> </td>
        <td width="97" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>368,048</font></p> </td> </tr>
    <tr >
        <td width="541" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:21.6pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Accumulated net realized loss on investments</font> </p> </td>
        <td width="97" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(24,977,857)</font></p> </td> </tr>
    <tr >
        <td width="541" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:21.6pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net unrealized appreciation on investments and other assets and liabilities denominated in foreign currency</font> </p> </td>
        <td width="97" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>22,714,219</font></p> </div> </td> </tr>
    <tr >
        <td width="541" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:32.4pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net assets applicable to shares outstanding</font> </p> </td>
        <td width="97" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:double black 2.25pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;123,778,935</font></p> </div> </td> </tr>
    <tr >
        <td width="541" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:43.2pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Net Asset Value Per Share</font></b> </p> </td>
        <td width="97" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:double black 2.25pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>$</font></b><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=1>8.58</font></b></p> </div> </td> </tr>
    <tr >
        <td width="541" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:43.2pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="97" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:double black 2.25pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </div> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;line-height: 150%;'><font size=2>See accompanying notes to financial statements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>15</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></font></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:justify;'><b><font size=3>Statement of Operations</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;line-height: 150%;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><b><font size=2>For the Year Ended October 31, 2006</font></b></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr >
        <td width="540" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Investment income</font></b><font size=1>:</font></p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="540" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:21.6pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Dividends (net of withholding taxes of $99,387)</font> </p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,320,431</font></p> </td> </tr>
    <tr >
        <td width="540" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:21.6pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Interest</font> </p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:45.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>63</font></p> </div> </td> </tr>
    <tr >
        <td width="540" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:32.4pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total investment income</font> </p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:21.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,320,494</font></p> </div> </td> </tr>
    <tr >
        <td width="540" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Expenses</font></b><font size=1>:</font></p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="540" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:21.6pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Investment management and advisory fee</font> </p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>394,888</font></p> </td> </tr>
    <tr >
        <td width="540" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:21.6pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Administration fee</font> </p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>250,337</font></p> </td> </tr>
    <tr >
        <td width="540" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:21.6pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Custodian fees and expenses</font> </p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>144,102</font></p> </td> </tr>
    <tr >
        <td width="540" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:21.6pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Audit and tax services</font> </p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:32.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>84,715</font></p> </td> </tr>
    <tr >
        <td width="540" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:21.6pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Reports and notices to shareholders</font> </p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:32.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>63,878</font></p> </td> </tr>
    <tr >
        <td width="540" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:21.6pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Legal fees and expenses</font> </p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:32.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>49,185</font></p> </td> </tr>
    <tr >
        <td width="540" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:21.6pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Insurance expense</font> </p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:32.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>43,829</font></p> </td> </tr>
    <tr >
        <td width="540" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:21.6pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Directors&#146; fees and expenses</font> </p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:32.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>39,915</font></p> </td> </tr>
    <tr >
        <td width="540" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:21.6pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Transfer agency fee and expenses</font> </p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:36.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>7,359</font></p> </td> </tr>
    <tr >
        <td width="540" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:21.6pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Other</font> </p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:32.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>91,444</font></p> </div> </td> </tr>
    <tr >
        <td width="540" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:32.4pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total expenses</font> </p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:21.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,169,652</font></p> </div> </td> </tr>
    <tr >
        <td width="540" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Net investment income</font></b> </p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>150,842</font></p> </div> </td> </tr>
    <tr >
        <td width="540" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Realized and unrealized gains from investment activities and foreign currency transactions</font></b><font size=1>:</font></p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="540" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:21.6pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net realized gains on investments</font> </p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>11,830,566</font></p> </td> </tr>
    <tr >
        <td width="540" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:21.6pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net realized foreign currency transaction losses</font> </p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:30.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(12,971)</font></p> </td> </tr>
    <tr >
        <td width="540" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:21.6pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net change in unrealized appreciation (depreciation) on investments in equity securities</font> </p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>184,658</font></p> </td> </tr>
    <tr >
        <td width="540" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:21.6pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net change in unrealized appreciation (depreciation) on short-term investments and other assets and liabilities denominated in foreign currency</font> </p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:32.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>27,895</font></p> </div> </td> </tr>
    <tr >
        <td width="540" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net realized and unrealized guns from investment activities and foreign currency transactions</font> </p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>12,030,148</font></p> </div> </td> </tr>
    <tr >
        <td width="540" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Net increase in net assets resulting from operations</font></b> </p> </td>
        <td width="98" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:double black 2.25pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12,180,990</font></p> </div> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;line-height: 150%;'><font size=2>See accompanying notes to financial statements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>16</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></font></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:12;padding-top:0;'><b><font size=3>Statement of Changes in Net Assets</font></b></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr style='page-break-inside:avoid'>
        <td width="470" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>For the Years Ended October 31,</font></b></p> </div> </td> </tr>
    <tr >
        <td width="470" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2006</font></b></p> </div> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2005</font></b></p> </div> </td> </tr>
    <tr >
        <td width="470" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Increase (decrease) in net assets from operations</font></b><font size=1>:</font></p> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="470" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net investment income</font> </p> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;150,842</font></p> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;64,964</font></p> </td> </tr>
    <tr >
        <td width="470" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net realized gain (loss) on:</font></p> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="470" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:21.6pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Investments</font> </p> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>11,830,566</font></p> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>5,430,721</font></p> </td> </tr>
    <tr >
        <td width="470" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:21.6pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Foreign currency transactions</font> </p> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(12,971)</font></p> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(284,449)</font></p> </td> </tr>
    <tr >
        <td width="470" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net change in unrealized appreciation (depreciation) on:</font></p> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="470" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:21.6pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Investments in equity securities</font> </p> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>184,658</font></p> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>17,217,326</font></p> </td> </tr>
    <tr >
        <td width="470" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:32.4pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Translation of short-term investments and other assets and liabilities denominated in foreign currency</font> </p> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>27,895</font></p> </div> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(63,054)</font></p> </div> </td> </tr>
    <tr >
        <td width="470" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net increase in net assets resulting from operations</font> </p> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>12,180,990</font></p> </div> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>22,365,508</font></p> </div> </td> </tr>
    <tr >
        <td width="470" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Dividends and distributions to shareholders from</font></b><font size=1>:</font></p> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="470" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net investment income</font> </p> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(813,340)</font></p> </div> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:40.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </div> </td> </tr>
    <tr >
        <td width="470" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>From capital stock transactions</font></b><font size=1>:</font></p> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="470" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Sale of capital stock resulting from:</font></p> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="470" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:21.6pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Reinvestment of dividends</font> </p> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:30.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>5,890</font></p> </div> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:40.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </div> </td> </tr>
    <tr >
        <td width="470" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net increase in net assets</font> </p> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>11,373,540</font></p> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>22,365,508</font></p> </td> </tr>
    <tr >
        <td width="470" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Net assets</font></b><font size=1>:</font></p> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="470" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Beginning of year</font> </p> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>112,405,395</font></p> </div> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>90,039,887</font></p> </div> </td> </tr>
    <tr >
        <td width="470" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>End of year (including undistributed net investment income of $368,048 and $0, respectively)</font> </p> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:double black 2.25pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$123,778,935</font></p> </div> </td>
        <td width="84" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:double black 2.25pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$112,405,395</font></p> </div> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;line-height: 150%;'><font size=2>See accompanying notes to financial statements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>17</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></font></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:12;padding-top:0;'><b><font size=3>Notes to Financial Statements</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Organization Accounting and Significant Policies</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>The Japan Equity Fund, Inc. (the &#147;Fund&#148;) was incorporated in Maryland on July 12, 1990 under its former name &#147;The Japan Emerging Equity Fund, Inc.&#148; and commenced operations on July 24, 1992. It is registered with the Securities and Exchange Commission as a closed-end, diversified management investment company.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>The following significant accounting policies are in conformity with generally accepted accounting principles in the United States of America for investment companies. Such policies are consistently followed by the Fund in the preparation of its financial statements. The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts and disclosures in the financial statements. Actual reporting results could differ from those estimates.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><i><font size=2>Valuation of Investments</font></i><font size=2>&#151;Securities which are listed on the Tokyo Stock Exchange or listed on the over-the-counter market in Japan or listed on other exchanges in Japan and for which market quotations are readily available are valued at the last reported sales price available to the Fund at the close of business on the day the securities are being valued or, lacking any such sales, at the last available bid price. In instances where quotations are not readily available or where the price as determined by the above procedures is deemed not to represent fair market value, fair value will be determined in such manner as the Board of Directors (the &#147;Board&#148;) may prescribe. Short-term investments having a maturity of 60 days or less are valued at amortized cost, except where the Board determines that such valuation does not represent the fair value of
the investment. All other securities and assets are valued at fair value as determined in good faith by, or under the direction of, the Board.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><i><font size=2>Foreign Currency Translation</font></i><font size=2>&#151;The</font><i><font size=2> </font></i><font size=2>books and records of the Fund are maintained in U.S. dollars as follows: (1) the foreign currency market value of investment securities and other assets and liabilities stated in Japanese yen are translated at the exchange rates prevailing at the end of the period; and (2) purchases, sales, income and expenses are translated at the rate of exchange prevailing on the respective dates of such transactions. The resulting exchange gains and losses are included in the Statement of Operations. The Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market price of securities.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><i><font size=2>Tax Status</font></i><font size=2>&#151;The</font><i><font size=2> </font></i><font size=2>Fund intends to continue to distribute substantially all of its taxable income and to comply with the minimum distribution and other requirements of the Internal Revenue Code applicable to regulated investment companies. Accordingly, no provision for federal income taxes is required.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>The Fund is not subject to any Japanese income, capital gains or other taxes except for withholding taxes on certain income, generally imposed at rates of 7% on interest and dividends, paid to the Fund by Japanese corporations.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><i><font size=2>Investment Transactions and Investment Income</font></i><font size=2>&#151;Investment transactions are recorded on the trade date (the date upon which the order to buy or sell is executed). Realized and unrealized gains and losses from security and foreign currency transactions are calculated on the identified cost basis. Dividend income and corporate actions are recorded generally on the ex-date, except for certain dividends and corporate actions from Japanese securities which may be recorded after the ex-date, as soon as the Fund acquires information regarding such dividends or corporate actions. Interest income is recorded on an accrual basis.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>18</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></font></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:12;padding-top:0;'><b><font size=3>Notes to Financial Statements (continued)</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><i><font size=2>Dividends and Distributions to Shareholder</font></i><font size=2>&#151;The</font><i><font size=2> </font></i><font size=2>Fund records dividends and distributions payable to its shareholders on the ex-dividend date. The amount of dividends and distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations, which may differ from generally accepted accounting principles. These book basis/tax basis differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require reclassifications. Dividends and distributions which exceed net investment income and net realized capital gains for tax purposes are reported as
distributions of paid-in-capital.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><i><font size=2>New Accounting Pronouncement</font></i><font size=2>&#151;In</font><i><font size=2> </font></i><font size=2>July 2006, Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes&#151;an interpretation of FASB Statement 109 (FIN 48) was issued and is effective for fiscal years beginning after December 15, 2006. FIN 48 sets forth a threshold for financial statement recognition, measurement and disclosure of a tax position taken or expected to be taken on a tax return. Management is currently evaluating the impact, if any, the adoption of FIN 48 will have on the Fund&#146;s net assets and results of operations.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Investment Manager and Investment Adviser</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>The Fund has an Investment Management Agreement with Daiwa SB Investments (U.S.A.) Ltd. (the &#147;Manager&#148;). Daiwa SB Investments Ltd. (&#147;DSBI&#148; or the &#147;Adviser&#148;), an affiliate of the Manager, acts as the Fund&#146;s investment adviser pursuant to an Investment Advisory Agreement between the Manager and DSBI. For such investment services, the Fund is obligated to pay the Manager a monthly fee at an annual rate of 0.60% of the first $20 million, 0.40% of the next $30 million and 0.20% of the excess over $50 million of the Fund&#146;s average weekly net assets, of which fee 60% is paid by the Manager to DSBI. In addition, the Fund has agreed to reimburse the Manager and the Adviser for all out-of-pocket expenses related to the Fund. During the year ended October 31, 2006, expenses of $6,213 were paid to the Adviser, representing reimbursement to the Adviser of
costs relating to the attendance by its employees at meetings of the Fund&#146;s Board. For the year ended October 31, 2006, no out-of-pocket expenses were paid to the Manager.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:0.25in;text-align:justify;line-height: 150%;'><font size=2>At October 31, 2006, the Fund owed $33,103 to the Manager.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Administrator and Custodian and Other Related Parties</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>Daiwa Securities Trust Company (&#147;DSTC&#148;), an affiliate of the Adviser, provides certain administrative services to the Fund, for which the Fund pays to DSTC a monthly fee at an annual rate of 0.20% of the first $60 million of the Fund&#146;s average weekly net assets, 0.15% of the next $40 million and 0.10% of the excess over $100 million, with a minimum annual fee of $120,000. In addition, as permitted by the Administration Agreement, the Fund reimburses the Administrator for its out-of-pocket expenses related to the Fund. For the year ended October 31, 2006, no out-of-pocket expenses were paid to the Administrator.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>The Board of Directors of the Fund has also approved the payment of the administrative compliance expense to the Fund in the amount of $46,000 per annum to DSTC, for services provided by DSTC staff in implementing the Fund&#146;s compliance management system and the Fund&#146;s compliance review program. This amount is included in the administration fee in the Fund&#146;s Statement of Operations.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>19</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></font></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:12;padding-top:0;'><b><font size=3>Notes to Financial Statements (continued)</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>DSTC also acts as custodian for the Fund&#146;s assets and has appointed Sumitomo Mitsui Banking Corporation (the &#147;Sub-Custodian&#148;), an affiliate of the Manager, to act as the sub-custodian for all of the cash and securities of the Fund held in Japan. As compensation for its services as custodian, DSTC receives a monthly fee and reimbursement of out-of-pocket expenses. Such expenses include fees and out-of-pocket expenses of the Sub-Custodian. During the year ended October 31, 2006, DSTC and the Sub-Custodian earned $64,102 and $80,001, respectively, as compensation for custodial service to the Fund.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>At October 31, 2006, the Fund owed $17,401, $3,833 and $5,436 to DSTC for administration, compliance and custodian fees, respectively, excluding fees and expenses of $8,046 payable to the Sub-Custodian.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>During the year ended October 31, 2006, the Fund paid or accrued $49,185 for legal services in connection with the Fund&#146;s on-going operations to a law firm of which the Fund&#146;s Assistant Secretary is a partner.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Investments in Securities and Federal Income Tax Matters</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>For federal income tax purposes, the cost of securities owned at October 31, 2006 was $100,171,369, excluding short-term interest bearing investments. At October 31, 2006, the net unrealized appreciation of investments for federal income tax purposes, excluding short-term securities, of $21,785,371 was composed of gross appreciation of $23,738,924 for those investments having an excess of value over cost, and gross depreciation of $1,953,553 for those investments having an excess of cost over value. For the year ended October 31, 2006, total aggregate purchases and sales of portfolio securities, excluding short-term securities, were $73,074,174 and $72,019,070, respectively.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>In order to present undistributed net investment income and accumulated net realized loss on investments on the Statement of Assets and Liabilities that more closely represent their tax character, certain adjustments have been made to paid-in capital in excess of par value, undistributed net investment income and accumulated net realized loss on investments.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>For the year ended October 31, 2006, the adjustments were to increase net investment income by $1,030,546, increase accumulated net realized loss on investments by $286,322 and decrease paid-in capital in excess of par value by $744,224 primarily relating to the reclassification of realized foreign currency losses, investment in a passive foreign investment company, non-deductible tax expenses and expiration of capital loss carryforwards. Net assets were not affected by this change.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>During the current year, the Fund utilized capital loss carryforwards of $10,599,898 and $931,375 of capital loss carryforwards expired.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>At October 31, 2006, the Fund had a remaining capital loss carryover of $24,963,364, of which $6,225,150 expires in the year 2009, $13,474,882 expires in the year 2010 and $5,263,332 expires in the year 2011 available to offset future net capital gains.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>20</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></font></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:12;padding-top:0;'><b><font size=3>Notes to Financial Statements (concluded)</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>The tax basis components of distributable earnings differ from the amounts reflected in the Statement of Assets and Liabilities by temporary book/tax differences primarily arising from wash sales and investment in a passive foreign investment company. As of October 31, 2006, the components of accumulated earnings (deficit) on a tax basis were as follows:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:4.8in;text-align:justify;'><b><font size=2>Unrealized</font></b></p>


<table border="0" cellspacing=0 cellpadding=0 width="609" style='border-collapse:collapse'>
    <tr >
        <td width="53" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Net Investment Income</font></b></u></p> </td>
        <td  colspan="2" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Accumulated Net Realized Loss</font></b></u></p> </td>
        <td  colspan="3" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Appreciation/Depreciation</font></b></u></p> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0cm 0cm 0cm 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:162%'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='padding:0cm 0cm 0cm 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$1,285,714</font></p> </td>
        <td  colspan="2" valign=top style='padding:0cm 0cm 0cm 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$24,963,364</font></p> </td>
        <td width="95" valign=top style='padding:0cm 0cm 0cm 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$21,782,060</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="57">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="53" ></td>

        <td width="29" ></td>

        <td width="137" ></td>

        <td width="44" ></td>

        <td width="160" ></td>

        <td width="33" ></td>

        <td width="95" ></td>

        <td width="57" ></td> </tr> </table>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>The tax character of the distributions paid during the fiscal year ended October 31, 2006 was from ordinary income.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Capital Stock</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>There are 30,000,000 shares of $.01 par value common stock authorized. During the year ended October 31, 2006, 733 shares were issued as a result of the reinvestment of dividends paid to those shareholders electing to reinvest dividends. Of the 14,421,650 shares of the Fund outstanding at October 31, 2006, Daiwa Securities America Inc., an affiliate of the Manager, Adviser and DSTC, owned 14,634 shares.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Subsequent Event</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>On December 7, 2006, a dividend was declared by the Board. The distribution of $0.09 per share is payable on December 27, 2006, to shareholders of record at the close of business on December 18, 2006. The ex-dividend date is December 14, 2006.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>21</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></font></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:12;padding-top:0;'><b><font size=3>Financial Highlights</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;line-height: 150%;'><font size=2>Selected data for a share of capital stock outstanding during each year is presented below:</font></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr style='page-break-inside:avoid'>
        <td width="319" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="5" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>For the Years Ended October 31,</font></b></p> </div> </td> </tr>
    <tr >
        <td width="319" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2006</font></b></p> </div> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2005</font></b></p> </div> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2004</font></b></p> </div> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2003</font></b></p> </div> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2002</font></b></p> </div> </td> </tr>
    <tr >
        <td width="319" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net asset value, beginning of year</font> </p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;7.79</font></p> </div> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;6.24</font></p> </div> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;6.00</font></p> </div> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;4.54</font></p> </div> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;5.59</font></p> </div> </td> </tr>
    <tr >
        <td width="319" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net investment income (loss)</font> </p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.01</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;*</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;*</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(0.02)</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(0.04)</font></p> </td> </tr>
    <tr >
        <td width="319" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net realized and unrealized gains (losses) on investments and foreign currency transactions</font> </p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.83</font></p> </div> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.55</font></p> </div> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.39</font></p> </div> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.48</font></p> </div> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(1.01)</font></p> </div> </td> </tr>
    <tr >
        <td width="319" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net increase (decrease) in net asset value resulting from operations</font> </p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.84</font></p> </div> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.55</font></p> </div> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.39</font></p> </div> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.46</font></p> </div> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(1.05)</font></p> </div> </td> </tr>
    <tr >
        <td width="319" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Less: dividends and distributions to shareholders </font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="319" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net investment income </font> </p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(0.05)</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </td> </tr>
    <tr >
        <td width="319" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Dilutive effect of rights offering</font> </p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(0.12)</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </td> </tr>
    <tr >
        <td width="319" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Offering costs charged to paid-in capital in excess of par value</font> </p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </div> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </div> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(0.03)</font></p> </div> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </div> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </div> </td> </tr>
    <tr >
        <td width="319" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net asset value, end of year</font> </p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:double black 2.25pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;8.58</font></p> </div> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:double black 2.25pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;7.79</font></p> </div> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:double black 2.25pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;6.24</font></p> </div> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:double black 2.25pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;6.00</font></p> </div> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:double black 2.25pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;4.54</font></p> </div> </td> </tr>
    <tr >
        <td width="319" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Per share market value, end of year</font> </p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:double black 2.25pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;8.14</font></p> </div> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:double black 2.25pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;8.51</font></p> </div> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:double black 2.25pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;6.08</font></p> </div> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:double black 2.25pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;7.16</font></p> </div> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:double black 2.25pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;4.15</font></p> </div> </td> </tr>
    <tr >
        <td width="319" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total investment return:</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="319" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Based on market price at beginning and end of year, assuming reinvestment of dividends&#134;</font> </p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(3.68)%</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>39.97 %</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(11.70)%</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>72.53 %</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(16.83)%</font></p> </td> </tr>
    <tr >
        <td width="319" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Based on net asset value at beginning and end of year, assuming reinvestment of dividends&#134;</font> </p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>10.91 %</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>24.84 %</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>5.74 %</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>32.16 %</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(18.78)%</font></p> </td> </tr>
    <tr >
        <td width="319" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Ratios and supplemental data:</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="319" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net assets, end of year (in millions)</font> </p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$123.8</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$112.4</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;90.0</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;64.9</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;49.1</font></p> </td> </tr>
    <tr >
        <td width="319" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Ratios to average net assets of:</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="319" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-1.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Expenses</font> </p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.94 %</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.07 %</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.12 %</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.50 %</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.44 %</font></p> </td> </tr>
    <tr >
        <td width="319" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-1.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net investment income (loss)</font> </p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.12 %</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.07 %</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(0.06)%</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(0.48)%</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(0.74)%</font></p> </td> </tr>
    <tr >
        <td width="319" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:10.8pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Portfolio turnover</font> </p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>59.36 %</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>72.35 %</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>90.03 %</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>84.00 %</font></p> </td>
        <td width="64" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>76.19 %</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>___________________________</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="635" style='border-collapse:collapse'>
    <tr >
        <td width="19" valign=top style='padding:0cm 0cm 0cm 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&#134;</font></p> </td>
        <td  colspan="2" valign=top style='padding:0cm 0cm 0cm 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>For the year ended October 31, 2004, the total investment return includes the benefit of shares resulting from the exercise of rights.</font></p> </td> </tr>
    <tr >
        <td width="19" valign=top style='padding:0cm 0cm 0cm 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>*</font></p> </td>
        <td width="195" valign=top style='padding:0cm 0cm 0cm 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>Represents less than $0.005 per share.</font></p> </td>
        <td style='padding:0cm 0cm 0cm 0cm' width="421">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>22</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></font></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:12;padding-top:0;'><b><font size=3>Report of Independent Registered Public Accounting Firm</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>To the Shareholders and Board of Directors of</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;line-height: 150%;'><font size=2>The Japan Equity Fund, Inc.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>In our opinion, the accompanying statement of assets and liabilities, including the portfolio of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of The Japan Equity Fund, Inc. (the &#147;Fund&#148;) at October 31, 2006, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as &#147;financial statements&#148;) are the responsibility of the Fund&#146;s management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2006 by correspondence with the custodian, provide a reasonable basis for our opinion.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>PricewaterhouseCoopers LLP</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>New York, New York</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>December 7, 2006</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>23</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></font></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:12;padding-top:0;'><b><font size=3>Tax Information (unaudited)</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>The Fund is required by Subchapter M of the Internal Revenue Code of 1986, as amended, to advise you within 60 days of the Fund&#146;s fiscal year end (October 31, 2006) as to the federal tax status of any distributions received by you during such fiscal year.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>On July 14, 2006, the Board of Directors of the Fund approved a total distribution of $0.0564 per share which represents a dividend from ordinary income. The dividend was payable on July 28, 2006, to shareholders of record at the close of business on July 21, 2006. The ex-dividend date was July 19, 2006.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>On December 7, 2006, the Board of Directors of the Fund approved a total distribution of $0.09 per share which represents a dividend from ordinary income. The dividend was payable on December 27, 2006, to share-holders of record at the close of business on December 18, 2006. The ex-dividend date was December 14, 2006.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:0.25in;text-align:justify;line-height: 150%;'><font size=2>There is no foreign tax deduction or credit available to shareholders for calendar year 2006.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>The information reported herein may differ from the information and distributions taxable to the share-holders for the calendar year ending December 31, 2006. The information necessary to complete your income tax returns will be included with your Form 1099-DIV to be received under separate cover in January 2007.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><i><font size=2>Shareholders are strongly advised to consult their own tax advisors with respect to the tax consequences of their investment in the Fund.</font></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>24</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></font></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:12;padding-top:0;'><b><font size=3>Information Concerning Directors and Officers (unaudited)</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>The following table sets forth information concerning each of the Directors and Officers of the Fund. The Directors of the Fund will serve for terms expiring on the date of subsequent Annual Meetings of Stockholders in the year 2009 for Class I Directors, 2007 for Class II Directors and 2008 for Class III Directors, or until their successors are duly elected and qualified.</font></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr >
        <td width="160" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Name (Age) and Address of Directors/Officers</font></b></p> </div> </td>
        <td width="298" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Principal Occupation</font></b><br> <b><font size=2>or Employment During Past</font></b><br> <b><font size=2>Five Years and</font></b><br> <b><font size=2>Directorships in</font></b><br> <b><font size=2>Publicly Held Companies</font></b></p> </div> </td>
        <td width="93" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Director or Officer of Fund Since</font></b></p> </div> </td>
        <td width="88" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Number of Funds in Fund Complex for Which Director Serves<sup>(1)</sup></font></b></p> </div> </td> </tr>
    <tr >
        <td width="160" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><b><font size=2>Directors</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="298" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="93" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:6.0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="160" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Austin C. Dowling (74)</font><br> <font size=2>672 Medford Leas</font><br> <font size=2>Medford, NJ  08055</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="298" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Retired; Director, The Thai Capital Fund, Inc., since 1990; Director, The Singapore Fund, Inc., since 2000.</font></p> </td>
        <td width="93" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Class III</font><br> <font size=2>Director since 1992</font></p> </td>
        <td width="88" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:6.0pt'><font size=2>3</font></p> </td> </tr>
    <tr >
        <td width="160" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Martin J. Gruber (69)</font><br> <font size=2>229 South Irving Street</font><br> <font size=2>Ridgewood, NJ  07450</font></p> </td>
        <td width="298" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Professor of Finance, Leonard N. Stern School of Business, New York University, since 1965; Director, The&nbsp;Thai Capital Fund, Inc., since 2000; Director, The&nbsp;Singapore Fund, Inc., since 2000; Trustee, DWS Mutual Funds, since 1992; Trustee, C.R.E.F., from 2001 to 2005 and Chairman from December 2003 to 2005; Director, National Bureau of Economic Research, since August&nbsp;2005.</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="93" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Class I</font><br> <font size=2>Director since 1992</font></p> </td>
        <td width="88" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:6.0pt'><font size=2>3</font></p> </td> </tr>
    <tr >
        <td width="160" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>David G. Harmer (63)</font><br> <font size=2>4337 Bobwhite Court</font><br> <font size=2>Ogden, UT  84403</font></p> </td>
        <td width="298" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Director of Community and Economic Development, City of Ogden, since July 2005; Public Services Department Director, City of Ogden, from February 2005 to July 2005; Executive Director, Department of Community and Economic Development for the State of Utah, from May&nbsp;2002 to January 2005; Chairman, 2K2 Hosting Corporation, from April 2001 to April 2002; Director, The&nbsp;Thai Capital Fund, Inc., since 2000; Director, The&nbsp;Singapore Fund, Inc., since 1996.</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="93" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Class II</font><br> <font size=2>Director since 1997</font></p> </td>
        <td width="88" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:6.0pt'><font size=2>3</font></p> </td> </tr>
    <tr >
        <td width="160" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:-4.5pt;text-align:left;margin-top:0cm;margin-bottom:6.0pt'><font size=2>*Hiroshi Kimura (53)</font><br> <font size=2>One Evertrust Plaza</font><br> <font size=2>Jersey City, NJ  07302-3051</font></p>
<p style='margin-left:4.5pt;text-indent:-4.5pt;text-align:left;margin-top:0cm;margin-bottom:6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="298" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Chairman and President, Daiwa Securities Trust Company, since July 2001.</font></p> </td>
        <td width="93" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Chairman of</font><br> <font size=2>the Board and Class I Director since 2001</font></p> </td>
        <td width="88" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:6.0pt'><font size=2>1</font></p> </td> </tr>
    <tr >
        <td width="160" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Oren G. Shaffer (64)</font><br> <font size=2>1801 California Street</font><br> <font size=2>Denver, CO 80202</font></p> </td>
        <td width="298" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Vice Chairman and Chief Financial Officer, Qwest Communications International Inc., since July 2002; Director, The Thai Capital Fund, Inc., since 2000; Director, The Singapore Fund, Inc., since 1997.</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="93" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Class II</font><br> <font size=2>Director since 2000</font></p> </td>
        <td width="88" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:6.0pt'><font size=2>3</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>25</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></font></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:left;border-bottom:solid 0.5pt;padding-bottom:12;padding-top:0;'><b><font size=3>Information Concerning Directors and Officers (unaudited) (concluded)</font></b></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr >
        <td width="160" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Name (Age) and Address of Directors/Officers</font></b></p> </div> </td>
        <td width="289" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Principal Occupation</font></b><br> <b><font size=2>or Employment During Past</font></b><br> <b><font size=2>Five Years and</font></b><br> <b><font size=2>Directorships in</font></b><br> <b><font size=2>Publicly Held Companies</font></b></p> </div> </td>
        <td width="102" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Director or Officer of Fund Since</font></b></p> </div> </td>
        <td width="88" valign=bottom style='padding:0cm 5.4pt 0cm 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0cm 0cm 1.0pt 0cm'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Number of Funds in Fund Complex for Which Director Serves<sup>(1)</sup></font></b></p> </div> </td> </tr>
    <tr >
        <td width="160" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><b><font size=2>Officers</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="289" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="102" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:6.0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="160" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Hideo Tanaka (57),</font><br> <font size=2>32 Old Slip</font><br> <font size=2>New York, NY  10005</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="289" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>President and Chief Executive Officer, Daiwa SB Investments (USA) Ltd., since November 2006; Executive Officer and Head of Fixed-Income Management, Daiwa SB Investments Ltd., from 2003 to 2006; Chief Global Strategist, Daiwa SB Investments Ltd., from 1995 to 2003.</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="102" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:6.0pt'><font size=2>President of the Fund since December 2006</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:6.0pt'><font size=2>&#151;</font></p> </td> </tr>
    <tr >
        <td width="160" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>John J. O&#146;Keefe (47)</font><br> <font size=2>One Evertrust Plaza</font><br> <font size=2>Jersey City, NJ  07302-3051</font></p> </td>
        <td width="289" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Vice President and Treasurer, The Thai Capital Fund, Inc. and The Singapore Fund, Inc., since 2000; Vice&nbsp;President, Fund Accounting Department of Daiwa Securities Trust Company, since 2000.</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="102" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Vice President and Treasurer of the Fund since 2000</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:6.0pt'><font size=2>&#151;</font></p> </td> </tr>
    <tr >
        <td width="160" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Yuko Tatezawa (28)</font><br> <font size=2>One Evertrust Plaza</font><br> <font size=2>Jersey City, NJ  07302-3051</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="289" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Secretary, The Thai Capital Fund, Inc. and The&nbsp;Singapore Fund, Inc., since 2004; Client Reporting Department of Daiwa Securities Trust Company, since 2002.</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="102" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Secretary of the Fund since 2004</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:6.0pt'><font size=2>&#151;</font></p> </td> </tr>
    <tr >
        <td width="160" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Anthony Cambria (52)</font><br> <font size=2>One Evertrust Plaza</font><br> <font size=2>Jersey City, NJ  07302-3051</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="289" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Chief Compliance Officer, The Thai Capital Fund, Inc. and The Singapore Fund, Inc., since 2004; Director and Executive Vice President, Daiwa Securities Trust Company, since 1999.</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="102" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Chief Compliance Officer of the Fund since 2004</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:6.0pt'><font size=2>&#151;</font></p> </td> </tr>
    <tr >
        <td width="160" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Leonard B. Mackey, Jr. (55)</font><br> <font size=2>31 West 52<sup>nd</sup> Street</font><br> <font size=2>New York, NY 10019-6131</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="289" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Partner in the law firm of Clifford Chance US LLP, since 1983; Assistant Secretary, The Thai Capital Fund, Inc. and The Singapore Fund, Inc., since 2004.</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="102" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Assistant Secretary of the Fund since 2004</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>&#151;</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>__________________________</font></p>


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    <tr >
        <td width="19" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#147;Fund Complex&#148; includes the Fund, The Thai Capital Fund, Inc. and The Singapore Fund, Inc., which are the only registered investment companies advised by SCB Asset Management Co., Ltd., Daiwa SB Investments (H.K.) Ltd., DBS Asset Management (United States) Pte. Ltd., Daiwa SB Investments (Singapore) Ltd., Daiwa SB Investments (USA) Ltd., Daiwa SB Investments Ltd. or their respective affiliates.</font></p> </td> </tr></table>



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        <td width="19" valign=top style='padding:0cm 0cm 0cm 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>*</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 0cm 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Directors so noted are deemed by the Fund&#146;s counsel to be &#147;interested persons&#148; (as defined in the U.S. Investment Company Act of 1940, as amended). Mr. Kimura is deemed an interested person of the Fund because of his affiliation with Daiwa Securities Trust Company, an affiliate of the Fund&#146;s investment adviser, Daiwa SB Investments Ltd.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>26</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></font></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:left;border-bottom:solid 0.5pt;padding-bottom:12;padding-top:0;'><b><font size=3>Board Consideration and Approval of Investment Advisory and Management Agreements (unaudited)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Nature, Extent and Quality of Services</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>At a meeting (the &#147;Meeting&#148;) of the Board of Directors of The Japan Equity Fund, Inc. held on June 1, 2006, the Board reviewed and considered the nature and extent of the investment advisory services provided by Daiwa SB Investments Ltd. (the &#147;Investment Adviser&#148;) under the Advisory Agreement and Daiwa SB Investments (USA) Ltd. (the &#147;Manager&#148; and, together with the Investment Adviser, the &#147;Advisers&#148;) under the Investment Management Agreement. The Board reviewed and considered the qualifications of the portfolio manager, the senior administrative managers and other key personnel of the Manager who provide the investment advisory services to the Fund. The Board determined that the portfolio manager and key personnel of the Manager are qualified by education and/or training and experience to perform the services in an efficient and professional
manner. The Board also reviewed the services provided to the Fund by the Investment Adviser and the personnel of the Investment Adviser who provide those services. The Board concluded that the nature and extent of the advisory services provided were necessary and appropriate for the conduct of the business and investment activities of the Fund. The Board also concluded that the overall quality of the advisory services was satisfactory.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Performance Relative to the Fund&#146;s Benchmark</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>The Board reviewed the Fund&#146;s performance for the last one-, three- and five-year periods, as well as for the last 20 quarters, as provided in the materials distributed to the Board prior to the Meeting, compared to the Fund&#146;s benchmark, the Tokyo Stock Price Index. The Board noted that the Fund&#146;s performance for the last one-year period was higher than the Fund&#146;s benchmark, and was only slightly lower for the three- and five-year periods. The Board discussed with the Adviser the reasons for the underperformance in these periods. The Board also noted that, for the last 20 quarters, the Fund&#146;s performance varied as compared to the benchmark, however, the Fund, in most quarters, performed in line with, or only slightly below, the benchmark. The Board concluded that the Fund&#146;s overall performance was satisfactory.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Fees Relative to Other Funds Advised by the Advisers</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>The Board reviewed the advisory fee paid by the Fund under the Advisory Agreement and the Investment Management Agreement (together, the &#147;advisory fee&#148;). The Board also reviewed information showing the advisory fees paid by other funds managed by each of the Advisers as compared to the advisory fee paid by the Fund. The Board noted that the Manager does not manage any other closed-end funds that would provide an appropriate comparison to the Fund&#146;s advisory fee. The Board further noted that while the Investment Adviser does not manage any other U.S. registered funds, it does advise other Japanese equity funds with advisory fees that are equal to or higher than the advisory fee paid by the Fund. The Board concluded that the advisory fee paid by the Fund was appropriate as compared to other funds advised by the Advisers.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Fees and Expenses Relative to Comparable Funds Managed by Other Advisers</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>The Board considered the advisory fees paid by the other funds in the Fund Complex, The Singapore Fund, Inc. and The Thai Capital Fund, Inc., as compared to the advisory fee paid to the Fund&#146;s Advisers. The Board noted that the advisory fee paid by the Fund is lower than the advisory fees paid to The Singapore Fund, Inc. and The Thai Capital Fund, Inc. In addition, the Board reviewed the fee paid to the other U.S. registered closed-end fund investing in Japan. The Board noted that the advisory fee rate for the other fund was higher than for the Fund, although noting that the other fund generally invested in a different part of the Japanese market. In </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>27</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></font></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:left;border-bottom:solid 0.5pt;padding-bottom:12;padding-top:0;'><b><font size=3>Board Consideration and Approval of Investment Advisory and Management Agreements (unaudited) (concluded)</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>addition, the Board examined the advisory fees paid to other closed-end funds investing in a single country. While the fees vary widely, the majority of these fees paid in connection with these country funds were in the 1.00% and higher range, especially for those funds that invested in countries in Asia. The Board concluded that the Fund&#146;s advisory fee was competitive with these other country funds. The Board further noted that the total expense ratio of the Fund was lower than that of the other funds in the Fund Complex and many other country funds, including the other U.S. registered closed-end fund investing in Japan, and concluded that the Fund&#146;s total expense ratio was competitive.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Breakpoints and Economies of Scale</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>The Board reviewed the structure of the Fund&#146;s advisory fee schedule under the Advisory Agreement and Investment Management Agreement and noted that it does include breakpoints. The Board considered that the Fund is closed-end. The Board concluded that economies of scale for this Fund were not a factor that needed to be considered at the current asset levels.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Profitability of the Advisers</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>The Board considered and reviewed a profitability report for each of the Advisers for the last year included in the materials previously provided to the Board. Based on their review of the information they received, the Board concluded that the profits earned by each Adviser were not excessive in light of the advisory services provided to the Fund.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Advisers Financially Sound and Financially Capable of Meeting the Fund&#146;s Needs</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>The Board considered whether each of the Advisers is financially sound and has the resources necessary to perform its obligations under the Advisory Agreement and Investment Management Agreement. The Board noted that each Adviser&#146;s operations remain profitable. The Board concluded that each of the Advisers has the financial resources necessary to fulfill its obligations under the Advisory Agreement and Investment Management Agreement.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Historical Relationship Between the Fund and the Advisers</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>The Board also reviewed and considered the historical relationship between the Fund and the Advisers, including the organizational structure of each of the Advisers, the policies and procedures formulated and adopted by each of the Advisers for managing the Fund&#146;s assets and the Board&#146;s confidence in the competence and integrity of the senior managers and key personnel of each of the Advisers. The Board concluded that it is beneficial for the Fund to continue its relationship with the Advisers.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Other Factors and Current Trends</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>The Board considered the controls and procedures adopted and implemented by each of the Advisers and monitored by the Fund&#146;s Chief Compliance Officer and concluded that the conduct of business by each of the Advisers indicates a good faith effort on its part to adhere to high ethical standards in the conduct of the Fund&#146;s business.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>General Conclusion</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>After considering and weighing all of the above factors, the Board concluded it would be in the best interests of the Fund and its shareholders to approve renewal of each of the Advisory Agreement and Investment Management Agreement for another year.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>28</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr >
        <td width="331" valign=top style='border-top:solid red 1.0pt; padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font COLOR="#FF0000"><font SIZE=2>BOARD OF DIRECTORS</font></font></p> </td>
        <td width="307" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="331" valign=top style='border-bottom: solid red 1.0pt;padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Hiroshi Kimura, </font><i><font size=2>Chairman</font></i></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Austin C. Dowling</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Martin J. Gruber</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>David G. Harmer</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Oren G. Shaffer</font></p> </td>
        <td width="307" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0cm;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:12.0pt'><b><font size=3>Annual Report</font></b></p>
<p style='margin-left:0cm;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:12.0pt'><b><font size=3>October 31, 2006</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><img src="img3.jpg"><br> </p> </td> </tr>
    <tr style='height:144.55pt'>
        <td width="331" valign=top style='border-bottom: solid red 1.0pt; padding:0cm 5.4pt 0cm 5.4pt;height:144.55pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font COLOR="#FF0000"><font SIZE=2>OFFICERS</font></font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Hideo Tanaka</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>President</font></i></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>John J. O&#146;Keefe</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Vice President and Treasurer</font></i></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Yuko Tatezawa</font></p>
<p
style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Secretary</font></i></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Anthony Cambria</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Chief Compliance Officer</font></i></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Leonard B. Mackey, Jr.</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Assistant Secretary</font></i><i></i></p> </td>
        <td width="307" rowspan=2 style='padding:0cm 5.4pt 0cm 5.4pt; height:144.55pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><img src="img4.gif"><br> </p> </td> </tr>
    <tr style='height:55.6pt'>
        <td width="331" valign=top style='border-bottom: solid red 1.0pt; padding:0cm 5.4pt 0cm 5.4pt;height:55.6pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font COLOR="#FF0000"><font SIZE=2>ADDRESS OF THE FUND</font></font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>c/o Daiwa Securities Trust Company</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>One Evertrust Plaza, 9th Floor</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Jersey City, NJ 07302-3051</font></p> </td> </tr>
    <tr style='height:169.4pt'>
        <td width="331" valign=top style='border-bottom: solid red 1.0pt; padding:0cm 5.4pt 0cm 5.4pt;height:169.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font COLOR="#FF0000"><font SIZE=2>INVESTMENT MANAGER</font></font><br> <font size=2>Daiwa SB Investments (U.S.A.) Ltd.</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font COLOR="#FF0000"><font SIZE=2>INVESTMENT ADVISER</font></font><br> <font size=2>Daiwa SB Investments Ltd.</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font COLOR="#FF0000"><font SIZE=2>ADMINISTRATOR AND CUSTODIAN</font></font><br> <font size=2>Daiwa Securities Trust Company</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font COLOR="#FF0000"><font SIZE=2>TRANSFER AGENT AND REGISTRAR</font></font><br> <font size=2>American Stock Transfer &amp; Trust
Company</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font COLOR="#FF0000"><font SIZE=2>LEGAL COUNSEL</font></font><br> <font size=2>Clifford Chance US LLP</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font COLOR="#FF0000"><font SIZE=2>INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</font></font><br> <font size=2>PricewaterhouseCoopers LLP</font></p> </td>
        <td width="307" rowspan=2 valign=top style='padding:0cm 5.4pt 0cm 5.4pt; height:169.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><img src="img5.jpg"><br> </p>
<p style='margin-left:18.65pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0cm'><font size=3>&nbsp;</font></p>
<p style='margin-left:18.65pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0cm'><font color="#FF0000"><i><b><font size=3>The Japan Equity Fund, Inc.</font></b></i></font></p>
<p style='margin-left:18.65pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0cm'><font size=2>&nbsp;</font></p>
<p style='margin-left:18.65pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0cm'><font size=2>c/o Daiwa Securities Trust Company One Evertrust Plaza</font></p>
<p style='margin-left:18.65pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:12.0pt'><font size=2>Jersey City, New Jersey 07302</font></p>

<p style='margin-left:18.65pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:12.0pt'><font COLOR="#FF0000"><font SIZE=2>INVESTMENT MANAGER</font></font><br> <font size=2>Daiwa SB Investments (U.S.A.) Ltd.</font></p>
<p style='margin-left:18.65pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0cm'><font COLOR="#FF0000"><font SIZE=2>INVESTMENT ADVISER</font></font><br> <font size=2>Daiwa SB Investments Ltd.</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940 that from time to time the Fund may purchase shares of its common stock in the open market at prevailing market prices.</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>This report is sent to shareholders of the Fund for their information. It is not a prospectus, circular or representation intended for use in the purchase or sale of shares of the Fund or of any securities mentioned in the report.</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>29</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>Item 2.  Code of Ethics.</font></b></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The registrant has adopted a code of ethics (the &#147;Code of Ethics&#148;) that applies to the registrant&#146;s principal executive officer and principal financial and accounting officer.  A copy of the registrant&#146;s Code of Ethics is attached hereto as Exhibit 12(a).</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>No information need be disclosed pursuant to this paragraph.</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The registrant has not amended the Code of Ethics during the period covered by the shareholder report presented in Item 1 hereto.</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(d)</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The registrant has not granted a waiver or an implicit waiver from a provision of the Code of Ethics during the period covered by this report.</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(e)</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Not applicable.</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(f)</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(1)</font></p> </td>
        <td width="341" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The Code of Ethics is attached hereto as Exhibit 12(a).</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(2)</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Not applicable.</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(3)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Not applicable.</font></p> </td> </tr></table>


<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>Item 3.  Audit Committee Financial Expert.</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The registrant&#146;s board of directors has determined that the registrant has at least one audit committee financial expert serving on its audit committee.  The audit committee financial expert is Oren G. Shaffer who is &#147;independent&#148; for purposes of this item.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>Item 4.  Principal Accountant Fees and Services.</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>(a)(b)(c)(d) and (g).  Based on fees billed for the periods shown:</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>
        <td width="120" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="156" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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        <td width="48" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="120" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Registrant</font></b></p> </td>
        <td width="156" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Covered Entities<sup>(1)</sup></font></b></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Audit Fees</font> </p> </td>
        <td width="120" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$74,700</font></p> </td>
        <td width="156" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>N/A</font></p> </td> </tr>
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        <td width="48" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="120" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="156" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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        <td width="48" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Non-Audit Fees</font></p> </td>
        <td width="120" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="156" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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        <td width="48" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:30.6pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Audit-Related Fees</font> </p> </td>
        <td width="120" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="156" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$0</font></p> </td> </tr>
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        <td width="48" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:30.6pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Tax Fees</font> </p> </td>
        <td width="120" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2><sup>(2) </sup>$9,400</font></p> </td>
        <td width="156" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$0</font></p> </td> </tr>
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        <td width="48" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:30.6pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>All Other Fees</font> </p> </td>
        <td width="120" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="156" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$0</font></p> </td> </tr>
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        <td width="48" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total Non-Audit Fees</font> </p> </td>
        <td width="120" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$9,400</font></p> </td>
        <td width="156" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$0</font></p> </td> </tr>
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        <td width="48" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="120" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="156" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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        <td width="48" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total</font> </p> </td>
        <td width="120" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$84,100</font></p> </td>
        <td width="156" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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        <td width="48" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="120" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="156" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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        <td width="48" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2005</font></b></p> </td>
        <td width="120" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="156" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="48" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="120" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Registrant</font></b></p> </td>
        <td width="156" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Covered Entities<sup>(1)</sup></font></b></p> </td> </tr>
    <tr >
        <td width="48" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Audit Fees</font> </p> </td>
        <td width="120" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$70,700</font></p> </td>
        <td width="156" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>N/A</font></p> </td> </tr>
    <tr >
        <td width="48" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="120" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="156" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="48" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Non-Audit Fees</font></p> </td>
        <td width="120" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="156" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="48" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:30.6pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Audit-Related Fees</font> </p> </td>
        <td width="120" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="156" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$0</font></p> </td> </tr>
    <tr >
        <td width="48" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:30.6pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Tax Fees</font> </p> </td>
        <td width="120" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2><sup>(2) </sup>$8,900</font></p> </td>
        <td width="156" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$0</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>30</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="595" style='border-collapse:collapse'>
    <tr >
        <td style='padding:0cm 0cm 0cm 0cm' width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>
        <td width="48" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:30.6pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>All Other Fees</font></p> </td>
        <td width="120" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="156" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$0</font></p> </td> </tr>
    <tr >
        <td style='padding:0cm 0cm 0cm 0cm' width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>
        <td width="48" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total Non-Audit Fees</font> </p> </td>
        <td width="120" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$8,900</font></p> </td>
        <td width="156" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$0</font></p> </td> </tr>
    <tr >
        <td style='padding:0cm 0cm 0cm 0cm' width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>
        <td width="48" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="120" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="156" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td style='padding:0cm 0cm 0cm 0cm' width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>
        <td width="48" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total</font> </p> </td>
        <td width="120" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$79,600</font></p> </td>
        <td width="156" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td style='padding:0cm 0cm 0cm 0cm' width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>
        <td width="48" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="120" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="156" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td style='padding:0cm 0cm 0cm 0cm' width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>
        <td  colspan="4" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:3.0pt'><font size=2>_____________________</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td style='padding:0cm 0cm 0cm 0cm' width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>
        <td  colspan="4" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>N/A- Not applicable, as not required by Item 4.</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td style='padding:0cm 0cm 0cm 0cm' width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>
        <td  colspan="4" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td  colspan="5" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:18.0pt;text-indent:-18.0pt;text-align:left;margin-top:0cm;margin-bottom:3.0pt'><font size=2><sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>&#147;Covered Entities&#148; include the registrant&#146;s investment adviser (excluding any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and any entity controlling, controlled by or under common control with the registrant&#146;s adviser that provides ongoing services to the registrant.</font></p> </td> </tr>
    <tr >
        <td  colspan="5" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:3.0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td  colspan="5" valign=top style='padding:0cm 5.4pt 0cm 5.4pt'>
            <p style='margin-left:18.0pt;text-indent:-18.0pt;text-align:left;margin-top:0cm;margin-bottom:3.0pt'><font size=2><sup>(2)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Tax Fees represent fees received for tax compliance services provided to the registrant, including the review of tax returns.</font></p> </td> </tr>
    <tr>
        <td width="1" ></td>

        <td width="48" ></td>

        <td width="270" ></td>

        <td width="120" ></td>

        <td width="156" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(e)</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Before the registrant&#146;s principal accountant is engaged to render audit or non-audit services to the registrant and non-audit services to the registrant&#146;s investment adviser and its affiliates, each engagement is approved by the registrant&#146;s audit committee.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(e)</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;100% of the services described in each of (b) through (d) of this Item 4 were approved by the registrant&#146;s audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(f)</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Not applicable.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(g)</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>See table above.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(h)</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The registrant&#146;s audit committee of the board of directors has considered whether the provision of non-audit services that were rendered to Covered Entities that were not pre-approved pursuant to paragraph (C)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the auditors&#146; independence in performing audit services.</font></p> </td> </tr></table>


<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>Item 5.  Audit Committee of Listed Registrants.</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act.  The members of the audit committee are as follows:  Austin C. Dowling, Martin J. Gruber, David G. Harmer and Oren G. Shaffer.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>Item 6.  Schedule of Investments.</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>A Schedule of Investments is included as part of the report to shareholders filed under Item 1.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>Item 7.  Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies</font></b><font size=2>.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The registrant has delegated to its investment adviser the voting of proxies relating to the registrant&#146;s portfolio securities.  The registrant&#146;s policies and procedures and those used by the investment </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>31</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>adviser to determine how to vote proxies relating to the registrant&#146;s portfolio securities, including the procedures used when a vote presents a conflict of interest involving the investment adviser or any of its affiliates, are contained in the investment adviser&#146;s Proxy Voting Guidelines, which are attached hereto as Exhibit 12(c).</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>Item 8.  Portfolio Managers of Closed-End Management Investment Companies.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.56in;text-align:justify;'><font size=2>Naoto Nagai, CFA, is currently responsible for the day-to-day management of the Fund.  He has been managing the Fund since October 2006.  Daiwa SB Investments Ltd., the Fund&#146;s investment adviser, has employed Mr. Nagai as an equity fund manager since August 2006.  Prior to that time, Mr. Nagai was a fund manager and research analyst at Resona Trust Company Japan.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.56in;text-align:justify;'><font size=2>Other Accounts Managed by the Portfolio Managers.  As of October 31, 2006, Mr. Nagai managed two mutual funds with a total of $227 million in assets; no other pooled investment vehicles nor other accounts were managed by Mr. Nagai.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.56in;text-align:justify;'><font size=2>Because Mr. Nagai manages assets for other investment companies, there may be an incentive to favor one client over another resulting in conflicts of interest. For instance, Daiwa SB Investments Ltd. may receive fees from certain funds managed by Mr. Nagai that are higher than the fee it receives from the Fund. In those instances, Mr. Nagai may have an incentive to favor the higher fee accounts over the Fund.  Daiwa SB Investments Ltd. has adopted trade allocation and other policies and procedures that it believes are reasonably designed to address these and other conflicts of interest. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.57in;text-align:justify;'><font size=2>Securities Ownership of Portfolio Managers.  As of October 31, 2006, Mr. Nagai did not beneficially owned any securities in the Fund. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.56in;text-align:justify;'><font size=2>Portfolio Manager Compensation Structure.  Mr. Nagai receives a combination of base compensation and discretionary compensation, comprising a cash bonus and several deferred compensation programs described below. The methodology used to determine portfolio manager compensation is applied across all accounts managed by Mr. Nagai.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.57in;text-align:justify;'><font size=2>Generally, Mr. Nagai receives base salary compensation based on the level of his position with the investment adviser.  In addition to base compensation, Mr. Nagai may receive discretionary compensation.  Discretionary compensation is comprised of a cash bonus.  The bonus is calculated from fund performance, contribution to the business objectives of the investment adviser, the dollar amount of assets under management, client contribution or any market compensation contributions.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>Item 9.  Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>There were no purchases of equity securities made by the Fund or any &#147;affiliated purchasers&#148; during the period of this report.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>Item 10.  Submission of Matters to a Vote of Security Holders.</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant&#146;s board of directors.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>32</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>Item 11.  Controls and Procedures.</font></b></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The registrant&#146;s principal executive and principal financial officer have concluded that the registrant&#146;s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the &#147;1940 Act&#148;) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this Form N-CSR based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17&nbsp;CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the 1934 Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>There were no changes in the registrant&#146;s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the registrant&#146;s second fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant&#146;s internal control over financial reporting.</font></p> </td> </tr></table>


<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>Item 12.  Exhibits.</font></b></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Code of Ethics for Principal Executive and Senior Financial Officers.</font></p> </td> </tr></table>



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        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Certifications required by Rule 30a-2(a) of the Investment Company Act of 1940, as amended, and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Proxy Voting Guidelines for the registrant and its adviser.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>33</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'>
<font SIZE=2>SIGNATURES</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.</font></p>

<p style=' margin-bottom:24pt; margin-top:0pt; margin-left:3in;text-align:justify;'><font size=2>The Japan Equity Fund, Inc.</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 0cm 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>By</font></p> </td>
        <td width="133" valign=top style='padding:0cm 0cm 0cm 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>\s\ John J. O&#146;Keefe</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:justify;'><font size=2>-----------------------------------</font></p>

<p style=' margin-bottom:24pt; margin-top:0pt; margin-left:3in;text-align:justify;'><font size=2>John J. O&#146;Keefe, Vice President &amp; Treasurer</font></p>

<p style=' margin-bottom:24pt; margin-top:0pt;text-align:justify;'><font size=2>Date:  December 26, 2006</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 0cm 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>By  </font></p> </td>
        <td width="133" valign=top style='padding:0cm 0cm 0cm 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>\s\ John J. O&#146;Keefe</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:justify;'><font size=2>-----------------------------------</font></p>

<p style=' margin-bottom:24pt; margin-top:0pt; margin-left:3in;text-align:justify;'><font size=2>John J. O&#146;Keefe, Vice President &amp; Treasurer</font></p>

<p style=' margin-bottom:24pt; margin-top:0pt;text-align:justify;'><font size=2>Date:  December 26, 2006</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 0cm 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>By  </font></p> </td>
        <td width="131" valign=top style='padding:0cm 0cm 0cm 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>\s\ Hiroshi Kimura</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:justify;'><font size=2>-----------------------------------</font></p>

<p style=' margin-bottom:24pt; margin-top:0pt; margin-left:3in;text-align:justify;'><font size=2>Hiroshi Kimura, Chairman</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Date:  December 26, 2006</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>34</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:24pt; margin-top:0pt;text-align:right;'><font size=2>EXHIBIT 12(a)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><U><B><font SIZE=2>CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND SENIOR FINANCIAL</font></B></U></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:center;'><U><B><font SIZE=2>OFFICERS</font></B></U></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>I.</font></B></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>This Code of Ethics (the &#147;Code&#148;) for The Thai Capital Fund, Inc., The Japan Equity Fund, Inc. and The Singapore Fund, Inc. (each a &#147;Fund&#148; and collectively the &#147;Funds&#148;) applies to each Fund&#146;s President and Treasurer (or persons performing similar functions) (&#147;Covered Officers&#148;) for the purpose of promoting:</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>*</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>*</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>full, fair, accurate, timely and understandable disclosure in reports and documents that a Fund files with, or submits to, the Securities and Exchange Commission (&#147;SEC&#148;) and in other public communications made by a Fund;</font></p> </td> </tr></table>



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        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>*</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>compliance with applicable laws and governmental rules and regulations;</font></p> </td> </tr></table>



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        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>*</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>*</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>accountability for adherence to the Code.</font></p> </td> </tr></table>


<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Each Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest.  A Fund will expect all Covered Officers to comply at all times with the principles in this Code.  A violation of this Code by an employee is grounds for disciplinary action up to and including discharge and possible legal prosecution.  Any question about the application of the Code should be referred to the Audit Committee of the Fund&#146;s Board of Directors ( the &#147;Audit Committee&#148;).</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>II.</font></B></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Covered Officers Should Handle Ethically Actual and Apparent Conflicts of Interest</font></b></p> </td> </tr></table>


<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><i><b><font size=2>Overview</font></b></i><font size=2>.  A &#147;conflict of interest&#148; occurs when a Covered Officer&#146;s private interest interferes with the interests of, or his service to, a Fund.  For example, a conflict of interest would arise if a Covered Officer, or a member of his family, receives improper personal benefits as a result of his position with a Fund.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Certain conflicts of interest arise out of the relationships between Covered Officers and a Fund and already are subject to conflict of interest provisions in the Investment Company Act of 1940 (the &#147;Investment Company Act&#148;) and the Investment Advisers Act of 1940 (the &#147;Investment Advisers Act&#148;).  For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with a Fund because of their status as &#147;affiliated persons&#148; of a Fund.  The compliance programs and procedures of a Fund and the Fund&#146;s Investment Manager and Investment Adviser are designed to prevent, or identify and correct, violations of these provisions.  Certain conflicts of interest also arise out of the personal securities trading activities of the Covered Officers and the possibility that they may use
information regarding a Fund&#146;s securities trading activities for their personal benefit.  Each Fund&#146;s Code of Ethics under Rule 17j-1 under the Investment Company Act is designed to address these conflicts of interest.  This Code does not, and is not intended to, replace </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>35</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>these programs and procedures or a Fund&#146;s Rule 17j-1 Code of Ethics, and this Code&#146;s provisions should be viewed as being additional and supplemental to such programs, procedures and code.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a result of, the contractual relationship between a Fund and its Investment Adviser or Investment Manager of which the Covered Officers are also officers or employees.  As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties (whether formally for a Fund or for its Investment Adviser or Investment Manager, or for all parties), be involved in establishing policies and implementing decisions that will have different effects on the Investment Adviser or Investment Manager and a Fund.  The participation of the Covered Officers in such activities is inherent in the contractual relationship between a Fund and its Investment Adviser or Investment Manager and is consistent with the performance by the Covered Officers of their duties as officers
of a Fund.  Thus, if performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically.  In addition, it is recognized by a Fund&#146;s Board of Directors (the &#147;Board&#148;) that the Covered Officers may also be officers or employees of one or more other investment companies covered by other codes.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Each Covered Officer must not:</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>*</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>use his personal influence or personal relationships improperly to influence investment decisions or financial reporting by a Fund whereby the Covered Officer would benefit personally to the detriment of a Fund;</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>*</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>cause a Fund to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than the benefit of the Fund; and</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>*</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>use material non-public knowledge of portfolio transactions made or contemplated for, or actions proposed to be taken by, a Fund to trade personally or cause others to trade personally in contemplation of the market effect of such transactions.</font></p> </td> </tr></table>


<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Each Covered Officer must, at the time of signing this Code, report all material business affiliations outside a Fund and must update the report annually.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Covered Officers should avoid situations which involve the appearance of, or potential for, conflicts of interest.  Examples of these situations include:</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>*</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>accepting directly or indirectly, anything of value, including gifts and gratuities in excess of $100 per year from any person or entity with which a Fund has current or prospective business dealings, not including occasional meals or tickets to theatre or sporting events or other similar entertainment, provided it is business-related, reasonable in cost, appropriate as to time and place and not so frequent as to raise any question of impropriety;</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>*</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>any ownership interest in, or any consulting or employment relationship with, any of a Fund&#146;s service providers, other than its Investment Adviser or Investment Manager or any affiliated person thereof; and</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>*</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>a direct or indirect financial interest in commissions, transaction charges or spreads paid by a Fund for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officer&#146;s employment, such as compensation or equity ownership.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>36</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In situations involving a Covered Officer which involve the appearance of, or the potential for, conflicts of interest, but where the Covered Officer believes that no significant conflict of interest exist, the Covered Officer must obtain prior written approval from the Audit Committee before becoming involved in that situation.  No such approval shall be considered a waiver of this Code.</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>III.</font></B></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Disclosure and Compliance</font></b></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>*</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Each Covered Officer should familiarize himself with the disclosure and compliance requirements generally applicable to a Fund;</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>*</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Each Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts about a Fund to others, whether within or outside a Fund, including to a Fund&#146;s directors and auditors, or to governmental regulators and self-regulatory organizations;</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>*</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Each Covered Officer should, to the extent appropriate within his area of responsibility, consult with other officers and employees of a Fund and its Investment Adviser or Investment Manager with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents a Fund files with, or submits to, the SEC and in other public communications made by a Fund; and</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>*</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>It is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations.</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>IV.</font></B></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Reporting and Accountability</font></b></p> </td> </tr></table>


<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Each Covered Officer must:</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>*</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>upon adoption of the Code or (thereafter as applicable, upon becoming a Covered Officer), affirm in writing to the Board that he has received, read and understands the Code;</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>*</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>annually thereafter affirm to the Board that he has complied with the requirements of the Code;</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>*</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>not retaliate against any other Covered Officer or any employee of a Fund or their affiliated persons for reports of potential violations that are made in good faith; and</font></p> </td> </tr></table>



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        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>*</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>notify the Audit Committee promptly if he knows of any violation of this Code.  Failure to do so is itself a violation of this Code.</font></p> </td> </tr></table>


<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The Audit Committee is responsible for applying this Code to specific situations in which questions are presented under it and has the authority to interpret this Code in any particular situation.  Any waivers sought by a Covered Officer must be considered by the Audit Committee.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>A copy of this Code shall be delivered to each employee of a Fund and each employee of its Investment Adviser and Investment Manager annually together with a memorandum requesting that any violations of the Code be communicated immediately to the Audit Committee.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Each Fund will follow these procedures in investigating and enforcing this Code:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>37</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>*</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the Audit Committee will take all appropriate action to investigate any potential violations reported to it;</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>*</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>if, after such investigation, the Audit Committee believes that no violation has occurred, the Audit Committee is not required to take any further action;</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>*</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>if the Audit Committee determines that a violation has occurred, it will consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures; notification to appropriate personnel of the Investment Adviser or its board; or a recommendation to dismiss the Covered Officer;</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>*</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the Audit Committee will be responsible for granting waivers of this Code, as appropriate; and</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>*</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>any changes to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules.</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>V.</font></B></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Changes To or Waivers of the Code</font></b></p> </td> </tr></table>


<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>No change to or waiver of any provision of this Code will be effective until a Fund discloses the nature of any amendment to, or waiver from, a provision of the Code in its Form N-CSR, or on its website within five business days following the date of the amendment or waiver if this method of disclosure has been established in its Form N-CSR and made available on its website for twelve months.  Any waiver of provisions of this Code will be reported in filings with the SEC and otherwise reported to a Fund&#146;s stockholders to the full extent required by the rules of the SEC and by any applicable rules of any securities exchange on which a Fund&#146;s securities are listed.</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>VI.</font></B></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Other Policies and Procedures</font></b></p> </td> </tr></table>


<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>This Code shall be the sole code of ethics adopted by each Fund for purposes of Section 406 of the Sarbanes-Oxley Act of 2002 and the rules and forms applicable to registered investment companies thereunder.  Insofar as other policies or procedures of a Fund or its Investment Adviser, Investment Manager or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superseded by this Code to the extent that they conflict with the provisions of this Code.</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>VII.</font></B></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Amendments</font></b></p> </td> </tr></table>


<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Any amendments to this Code must be approved or ratified by a majority vote of the Audit Committee and the Board, including a majority of directors who are not interested persons as defined in the Investment Company Act.</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>VIII.</font></B></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Confidentiality</font></b></p> </td> </tr></table>


<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly.  Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Audit Committee, the Board, the Fund and its counsel and its Investment Adviser and Investment Manager and their respective counsel.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>38</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>IX.</font></B></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Internal Use</font></b></p> </td> </tr></table>


<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The Code is intended solely for the internal use by a Fund and does not constitute an admission, by or on behalf of a Fund, as to any fact, circumstance or legal conclusion.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>I have read and understand the terms of the Code.  I recognize the responsibilities and obligations incurred by me as a result of my being subject to the Code.  I hereby agree to abide by the Code.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>_________________________</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Date:_____________________</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>39</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
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<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:12pt; margin-top:0pt;text-align:right;'><font size=2>EXHIBIT 12(b)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>CERTIFICATION</font></B></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002</font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>I, John J. O&#146;Keefe, certify that:</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>I have reviewed this report on Form N-CSR of The Japan Equity Fund, Inc.:</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2.</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>3.</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>4.</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The registrant&#146;s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(d)</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Disclosed in this report any change in the registrant&#146;s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant&#146;s internal control over financial reporting; and</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>5.</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The registrant&#146;s other certifying officer and I have disclosed, to the registrant&#146;s auditors and the audit committee of the registrant&#146;s board of directors (or persons performing the equivalent functions):</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>40</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>all significant deficiencies and material weaknesses in the design or operation of internal control which are reasonably likely to adversely affect the registrant&#146;s ability to record, process, summarize, and report financial information; and</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&#146;s internal controls over financial reporting.</font></p> </td> </tr></table>


<p style=' margin-bottom:24pt; margin-top:0pt; margin-left:3in;text-align:justify;'><font size=2>Date:  December 26, 2006</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:justify;'><font size=2>\s\John J. O&#146;Keefe</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:justify;'><font size=2>---------------------------------------</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:justify;'><font size=2>John J. O&#146;Keefe, Vice President &amp; Treasurer</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>41</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>CERTIFICATION</font></B></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002</font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>I, Hiroshi Kimura, certify that:</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>I have reviewed this report on Form N-CSR of The Japan Equity Fund, Inc.:</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2.</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>3.</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;</font></p> </td> </tr></table>



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    <tr >
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>4.</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The registrant&#146;s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:</font></p> </td> </tr></table>



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        <td width="96" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</font></p> </td> </tr></table>



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        <td width="96" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</font></p> </td> </tr></table>



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        <td width="96" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and</font></p> </td> </tr></table>



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        <td width="96" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(d)</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Disclosed in this report any change in the registrant&#146;s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant&#146;s internal control over financial reporting; and</font></p> </td> </tr></table>



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        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>5.</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The registrant&#146;s other certifying officer and I have disclosed, to the registrant&#146;s auditors and the audit committee of the registrant&#146;s board of directors (or persons performing the equivalent functions):</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>42</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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        <td width="96" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>all significant deficiencies and material weaknesses in the design or operation of internal control which are reasonably likely to adversely affect the registrant&#146;s ability to record, process, summarize, and report financial information; and</font></p> </td> </tr></table>



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        <td width="96" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&#146;s internal controls over financial reporting.</font></p> </td> </tr></table>


<p style=' margin-bottom:24pt; margin-top:0pt; margin-left:3in;text-align:justify;'><font size=2>Date:  December 26, 2006</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:justify;'><font size=2>\s\ Hiroshi Kimura</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:justify;'><font size=2>---------------------------------------</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:justify;'><font size=2>Hiroshi Kimura, Chairman</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>43</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>CERTIFICATION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>PURSUANT TO SECTION 906</font></B></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>OF THE SARBANES-OXLEY ACT OF 2002</font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The undersigned, the Vice President and Treasurer of The Japan Equity Fund, Inc. (the &#147;Fund&#148;), with respect to the Form N-CSR for the period ended October 31, 2006 as filed with the Securities and Exchange Commission, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>such Form N-CSR fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and</font></p> </td> </tr></table>



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        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2.</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the information contained in such Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Fund.</font></p> </td> </tr></table>


<p style=' margin-bottom:24pt; margin-top:0pt; margin-left:3in;text-align:justify;'><font size=2>Dated:  December 26, 2006</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:justify;'><font size=2>/s/ John J. O&#146;Keefe</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:justify;'><font size=2>----------------------------------</font></p>

<p style=' margin-bottom:24pt; margin-top:0pt; margin-left:3in;text-align:justify;'><font size=2>John J. O&#146;Keefe</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>This certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>44</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'>
<B><font SIZE=2>CERTIFICATION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>PURSUANT TO SECTION 906</font></B></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>OF THE SARBANES-OXLEY ACT OF 2002</font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The undersigned, the Chairman of The Japan Equity Fund, Inc. (the &#147;Fund&#148;), with respect to the Form N-CSR for the period ended October 31, 2006 as filed with the Securities and Exchange Commission, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:</font></p>


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        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>such Form N-CSR fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and</font></p> </td> </tr></table>



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    <tr >
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2.</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the information contained in such Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Fund.</font></p> </td> </tr></table>


<p style=' margin-bottom:24pt; margin-top:0pt; margin-left:3in;text-align:justify;'><font size=2>Dated:  December 26, 2006</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:justify;'><font size=2>/s/ Hiroshi Kimura</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:justify;'><font size=2>----------------------------------</font></p>

<p style=' margin-bottom:24pt; margin-top:0pt; margin-left:3in;text-align:justify;'><font size=2>Hiroshi Kimura</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>This certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>45</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:18pt; margin-top:0pt;text-align:right;'><font size=2>EXHIBIT 12(c)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>The Japan Equity Fund, Inc.</font></b></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:center;'><b><font size=2>Proxy Voting Policy and Procedures</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The Board of Directors of The Japan Equity Fund, Inc. (the &#147;Fund&#148;) hereby adopts the following policy and procedures with respect to voting proxies relating to Fund securities managed by Daiwa SB Investments (USA) Ltd. (the &#147;Investment Manager&#148;).</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>I.</font></B></p> </td>
        <td width="59" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Policy</font></b></p> </td> </tr></table>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>It is the policy of the Board of Directors of the Fund (the &#147;Board&#148;) to delegate the responsibility for voting proxies relating to securities held by the Fund to the Investment Manager as part of the Manager&#146;s general management of the Fund&#146;s assets, subject to the Board&#146;s continuing oversight.  The Board of Directors of the Fund hereby delegates such responsibility to the Investment Manager, and directs the Investment Manager to vote proxies relating to Fund portfolio securities managed by the Investment Manager consistent with the duties and procedures set forth below.  The Investment Manager may retain one or more vendors to review, monitor and recommend how to vote proxies in a manner consistent with the duties and procedures set forth below, to ensure such proxies are voted on a timely basis and to provide reporting and/or record retention services in
connection with proxy voting for the Fund.</font></p>


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        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>II.</font></B></p> </td>
        <td width="115" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Fiduciary Duty</font></b></p> </td> </tr></table>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The right to vote a proxy with respect to securities held by the Fund is an asset of the Fund.  The Investment Manager, to which authority to vote on behalf of the Fund is delegated, acts as a fiduciary of the Fund and must vote proxies in a manner consistent with the best interest of the Fund and its shareholders.  In discharging this fiduciary duty, the Investment Manager must maintain and adhere to its policies and procedures for addressing conflicts of interest and must vote in a manner substantially consistent with its policies, procedures and guidelines, as presented to the Board.</font></p>


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        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>III.</font></B></p> </td>
        <td width="92" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Procedures</font></b></p> </td> </tr></table>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following are the procedures adopted by the Board for the administration of this policy.</font></p>


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        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>A.</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Review of Investment Manager&#146;s Proxy Voting Procedures</font></u><font size=2>.  The Investment Manager shall present to the Board their policies, procedures and other guidelines for voting proxies at least annually, and must notify the Board promptly of material changes to any of these documents, including changes to policies addressing conflicts of interest.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>B.</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Voting Record Reporting</font></u><font size=2>.  The Investment Manager shall provide the voting record information necessary for the completion and filing of Form-NPX to the Fund at least annually.  Such voting record information shall be in a form acceptable to the Fund and shall be provided at such time(s) as are required for the timely filing of Form-NPX and at such additional time(s) as the Fund and the Investment Manager may agree from time to time.  With respect to those proxies that the Investment Manager has identified as involving a conflict of interest<sup>1</sup>, the Investment Manager shall submit a separate report indicating the nature of the conflict of interest and how that conflict was resolved with respect to the voting of the proxy.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>46</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>C.</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Record Retention</font></u><font size=2>.  The Investment Manager shall maintain such records with respect to the voting of proxies as may be required by the Investment Advisers Act of 1940 and the rules promulgated thereunder or by the Investment Company Act of 1940 and the rules promulgated thereunder.</font></p> </td> </tr></table>



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    <tr >
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>D.</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Conflicts of Interest</font></u><font size=2>.  Any actual or potential conflicts of interest between the Investment Manager and the Fund&#146;s shareholders arising from the proxy voting process will be addressed by the Investment Manager and the Investment Manager&#146;s application of its proxy voting procedures pursuant to the delegation of proxy voting responsibilities to the Investment Manager.  In the event that the Investment Manager notifies the officer(s) of the Fund that a conflict of interest cannot be resolved under the Investment Manager&#146;s Proxy Voting Procedures, such officer(s) are responsible for notifying the Chairman of the Board of the Fund of the irreconcilable conflict of interest and assisting the Chairman with any actions he determines are necessary.</font></p> </td> </tr></table>



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    <tr >
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>IV.</font></B></p> </td>
        <td width="91" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Revocation</font></b></p> </td> </tr></table>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The delegation by the Board of the authority to vote proxies relating to securities of the Fund is entirely voluntary and may be revoked by the Board, in whole or in part, at any time.</font></p>


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    <tr >
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>V.</font></B></p> </td>
        <td width="107" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Annual Filing</font></b></p> </td> </tr></table>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The Fund shall file an annual report of each proxy voted with respect to securities of the Fund during the twelve-month period ended June 30 on Form N-PX not later than August 31 of each year<sup>2</sup>.</font></p>


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    <tr >
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>VI.</font></B></p> </td>
        <td width="92" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Disclosures</font></b></p> </td> </tr></table>



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    <tr >
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>A.</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The Fund shall include in its annual report filed on Form N-CSR:</font></p> </td> </tr></table>



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    <tr >
        <td width="96" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>a description of this policy and of the policies and procedures used by the Fund and the Investment Manager to determine how to vote proxies relating to portfolio securities or copies of such policies and procedures; and</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2.</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>a statement disclosing that a description of the policies and procedures used by or on behalf of the Fund to determine how to vote proxies relating to securities of the Fund is available without charge, upon request, by calling the Fund&#146;s toll-free telephone number; through a specified Internet address, if applicable; and on the SEC&#146;s website; and</font></p> </td> </tr></table>



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    <tr >
        <td width="96" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>3.</font></p> </td>
        <td  valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>a statement disclosing that information regarding how the Fund voted proxies relating to Fund securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling the Fund&#146;s toll-free telephone number; or through a specified Internet address; or both; and on the SEC&#146;s website.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>47</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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    <tr >
        <td width="48" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>VII.</font></B></p> </td>
        <td width="124" valign=top style='padding:0cm 0cm 12.0pt 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Review of Policy</font></b></p> </td> </tr></table>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The Board shall review from time to time this policy to determine its sufficiency and shall make and approve any changes that it deems necessary from time to time.</font></p>


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        <td width="67" valign=top style='padding:0cm 0cm 0cm 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Adopted:  </font></p> </td>
        <td width="136" valign=top style='padding:0cm 0cm 0cm 0cm'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>November 25, 2003</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>___________________________</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>1</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>As it is used in this document, the term &#147;conflict of interest&#148; refers to a situation in which the Investment Manager or affiliated persons of the Investment Manager have a financial interest in a matter presented by a proxy other than the obligation they incur as Investment Manager to the Fund which could potentially compromise the Investment Manager&#146;s independence of judgment and action with respect to the voting of the proxy.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>2</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>The Fund must file its first report on Form N-PX not later than August 31, 2004, for the twelve-month period beginning July 1, 2003, and ending June 30, 2004.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>48</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:right;'>
</p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:center;'><b><font size=2>Proxy voting policy for Daiwa SB Investments (USA) Ltd.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Statement of Policies and Procedures for</font></b></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:center;'><b><font size=2>Voting Proxies</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><u><b><font size=2>Introduction</font></b></u></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>As a registered investment adviser, Daiwa SB Investments (USA) Ltd. (&#147;Daiwa,&#148; &#147;we&#148; or &#147;us&#148;) has a fiduciary duty to act solely in the best interests of our clients.  As part of this duty, we recognize that we must exercise voting rights in the best interests of our clients.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Daiwa recognizes the importance of good corporate governance in ensuring that management and boards of directors fulfill their obligations to shareholders.  As part of our investment process, we take into account the attitudes of management and boards of directors on corporate governance issues when deciding whether to invest in a company.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Daiwa is a global investment manager, and invests significantly in emerging markets.  It should be noted that protection for shareholders may vary significantly from jurisdiction to jurisdiction, and in some cases may be substantially less than in the U.S. or developed countries.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>This statement is intended to comply with Rule 206(4)-6 of the Investment Advisers Act of 1940.  It sets forth the policy and procedures of Daiwa for voting proxies for our clients, including investment companies registered under the Investment Company Act of 1940.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><U><B><font SIZE=2>PROXY VOTING POLICIES</font></B></U></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>It is the general policy of Daiwa to support management of the companies in which it invests and will cast votes in accordance with management&#146;s proposals.  However, Daiwa reserves the right to depart from this policy in order to avoid voting decisions that we believe may be contrary to our clients&#146; best interests.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><b><font size=2>Elections of Directors:</font></b><font size=2>  In many instances, election of directors is a routine voting issue.  Unless there is a proxy fight for seats on the Board or we determine that there are other compelling reasons for withholding votes for directors, we will vote in favor of the management proposed slate of directors.  That said, we believe that directors have a duty to respond to shareholder actions that have received significant shareholder support.  We may withhold votes for directors that fail to act on key issues such as failure to implement proposals to declassify boards, failure to implement a majority vote requirement, failure to submit a rights plan to a shareholder vote and failure to act on tender offers where a majority of shareholders have tendered their shares.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><b><font size=2>Appointment of Auditors:</font></b><font size=2>  The selection of an independent accountant to audit a company&#146;s financial statements is generally a routine business matter.  Daiwa believes that management remains in the best position to choose the accounting firm and will generally support management&#146;s recommendation.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><b><font size=2>Changes in Capital Structure:</font></b><font size=2>  Changes in a company&#146;s charter, articles of incorporation or by-laws are often technical and administrative in nature.  Absent a compelling reason to the contrary, Daiwa will cast its votes in accordance with the company&#146;s management on such proposals.  However, we will </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>49</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>review and analyze on a case-by-case basis any non-routine proposals that are likely to affect the structure and operation of the company or have a material economic effect on the company.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><b><font size=2>Corporate Restructurings,  Mergers and Acquisitions:</font></b><font size=2>  Daiwa believes proxy votes dealing with corporate reorganizations are an extension of the investment decision and will take account of our investment process policy in deciding how to vote.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><b><font size=2>Corporate Governance: </font></b><font size=2> Daiwa recognizes the importance of good corporate governance in ensuring that management and the board of directors fulfill their obligations to the shareholders.  We generally favor proposals promoting transparency and accountability within a company.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><b><font size=2>Social and Corporate Responsibility:</font></b><font size=2>  Daiwa recognizes the importance of supporting sound and responsible policies in relation to social, political and environmental issues.  However, in the interests of shareholders, we reserve the right to vote against proposals that are unduly burdensome or result in unnecessary and excessive costs to the company.  We may abstain from voting on social proposals that do not have a readily determinable financial impact on shareholder value.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><b><font size=2>Executive Compensation:</font></b><font size=2>  Daiwa believes that company management and the compensation committee of the board of directors should, within reason, be given latitude to determine the types and mix of compensation and benefit awards offered.  Whether proposed by a shareholder or management, we will review proposals relating to executive compensation plans and, if deemed excessive, may vote against the proposals.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><U><B><font SIZE=2>PROXY VOTING PROCEDURES</font></B></U></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><u><b><font size=2>Proxy voting</font></b></u></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Our portfolio management team is responsible for the coordination of Daiwa&#146;s proxy voting.  They liaise with the Product managers and/or the Proxy voting committee to ascertain how Daiwa will vote.  They will then instruct the relevant Custodians.  The portfolio management team is also responsible for ensuring that full and adequate records of proxy voting are kept.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The Product managers will implement the Proxy voting policies by instructing proxy voting in accordance with the general principles contained herein.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><u><b><font size=2>Proxy Voting Committee</font></b></u></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We have formed a Proxy Voting Committee to regularly review our general proxy policies and consider specific proxy voting matters as and when deemed necessary.  Members of the committees include senior investment personnel and representatives of the Legal &amp; Compliance Department.  The committee may also evaluate proxies where we face a material conflict of interest (as discussed below).</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><u><b><font size=2>Conflicts of Interest</font></b></u></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Daiwa recognizes that there is a potential conflict of interest when we vote a proxy solicited by an issuer with whom we have any material business or personal relationship that may affect how we vote on the issuer&#146;s proxy.  We believe that oversight by the proxy voting committee ensures that proxies are voted with only our clients&#146; best interests in mind.  In order to avoid any perceived conflict of interests, the following procedures have been established for use when we encounter a potential conflict.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>50</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The portfolio management team will refer to the Legal and compliance team any proxy votes that are issued by existing clients or where Daiwa holds a significant voting percentage of the company.  The Legal and compliance team will make the initial determination about whether a material conflict of interest exists based on the facts and circumstances of each particular situation.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>If our proposed vote is consistent with our stated proxy voting policy, no further review is necessary.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>If our proposed vote is contrary to our stated proxy voting policy but is also contrary to management&#146;s recommendation, no further review is necessary.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>If our proposed vote is contrary to our stated proxy voting policy and is consistent with management&#146;s recommendation, the proposal is escalated to the proxy committee for final review and determination.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><u><b><font size=2>Proxies of Certain Non-U.S. Issuers</font></b></u></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Proxy voting in certain countries requires &#147;share blocking.&#148;  That is, shareholders wishing to vote their proxies must deposit their shares shortly before the date of the meeting (usually one-week) with a designated depositary.  During this blocking period, shares that will be voted at the meeting cannot be sold until the meeting has taken place and the shares are returned to the clients&#146; custodian banks.  Daiwa may determine that the value of exercising the vote does not outweigh the detriment of not being able to transact in the shares during this period.  Accordingly, if share blocking is required we may abstain from voting those shares.  In such a situation we would have determined that the cost of voting exceeds the expected benefit to the client.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><u><b><small>PROXY</small> <small>VOTING</small> <small>RECORD</small></b></u></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Clients may obtain information on how Daiwa voted with respect to their proxies by contacting our Client services team at Daiwa SB Investments (USA) Ltd.. 32 Old Slip, 11th Floor, New York, New York, Tel No. 212-612-8500, Fax No. 212-612-8518/8519 or email y_uematsu@dsbiusa.net</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>51</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'>&nbsp;</p>


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