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<SEC-DOCUMENT>0000897204-08-000003.txt : 20080103
<SEC-HEADER>0000897204-08-000003.hdr.sgml : 20080103
<ACCEPTANCE-DATETIME>20080103143558
ACCESSION NUMBER:		0000897204-08-000003
CONFORMED SUBMISSION TYPE:	N-CSR
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20071031
FILED AS OF DATE:		20080103
DATE AS OF CHANGE:		20080103
EFFECTIVENESS DATE:		20080103

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:		08505604

	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
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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:12pt; 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:justify;'><font size=2>&nbsp;</font></p>

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


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="638" style='border-collapse:collapse'>
    <tr style=' page-break-inside:avoid'>
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            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:6.0pt;margin-bottom:3.0pt'><B><font SIZE=2>FORM N-CSR</font></B></p> </td> </tr></table>
</div>

<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:12pt; 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:center;'><font SIZE=2>INVESTMENT COMPANY ACT</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font SIZE=2>FILE NUMBER 811-06142</font></p>

<p style=' margin-bottom:12pt; 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:24pt; 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:center;'><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:12pt; margin-top:0pt;text-align:center;'><font size=2>Jersey City, New Jersey 07302-3051</font></p>

<p style=' margin-bottom:12pt; 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: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:12pt; margin-top:0pt;text-align:center;'><font size=2>Jersey City, New Jersey 07302-3051</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>(Name and address of agent for service)</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>REGISTRANT&#146;S TELEPHONE NUMBER, INCLUDING AREA CODE:  (201)&nbsp;915-3054</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>DATE OF FISCAL YEAR END:  October&nbsp;31</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>DATE OF REPORTING PERIOD:  October&nbsp;31, 2007</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:12pt; margin-top:0pt;text-align:justify;'><font size=2>Item 1. Reports to Stockholders.</font></p>

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

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

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

<p style=' margin-bottom:12pt; margin-top:0pt;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;</font><U><font SIZE=2>TOPIX</font></U><font size=2>&#148;), a composite market-capitalization weighted index of all common stocks listed on the First Section&nbsp;of the Tokyo Stock Exchange (&#147;</font><U><font SIZE=2>TSE</font></U><font size=2>&#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:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>Shareholder Information</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>The Fund&#146;s shares are listed on the New York Stock Exchange (&#147;</font><U><font SIZE=2>NYSE</font></U><font size=2>&#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-align:justify;'><font size=2>The Fund&#146;s NYSE trading symbol is &#147;JEQ&#148;.  Weekly comparative net asset value (&#147;</font><U><font SIZE=2>NAV</font></U><font size=2>&#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>, 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)&nbsp;933-3440 or (201)&nbsp;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:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>Inquiries</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;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;</font><u><font size=2>Plan Agent</font></u><font size=2>&#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:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>Proxy Voting Policies and Procedures</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>A description of the policies and procedures that are used by the Fund&#146;s Manager to vote proxies relating to the Fund&#146;s portfolio securities is available (1)&nbsp;without charge, upon request, by calling collect (201)&nbsp;915-3054; (2)&nbsp;by visiting www.daiwast.com; and (3)&nbsp;as an exhibit to the Fund&#146;s annual report on Form&nbsp;N-CSR which is available on the website of the Securities and Exchange Commission (the &#147;</font><u><font size=2>Commission</font></u><font size=2>&#148;) at www.sec.gov.  Information regarding how the Manager votes these proxies is now available by calling the same number and is available on the Commission&#146;s website.  The Fund has filed its report on Form&nbsp;N-PX covering the Fund&#146;s proxy voting record for the 12-month period ended June&nbsp;30, 2007.</font></p>

<p style=' margin-bottom:12pt; 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-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&nbsp;N-Q and is available on the Commission&#146;s website at www.sec.gov and the Fund&#146;s website at www.daiwast.com.  Additionally, the Portfolio of Investments may be reviewed and copied at the </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>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;'><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></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>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)&nbsp;SEC-0330.  The quarterly Portfolio of Investments will be made available without charge, upon request, by calling (201)&nbsp;915-3054.</font></p>

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

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>The Fund&#146;s chief executive officer has certified to the NYSE that, as of June&nbsp;12, 2007, 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&nbsp;302 and Section&nbsp;906 of the Sarbanes-Oxley Act of 2002 in the Fund&#146;s Form&nbsp;N-CSR filed with the Commission for the period of this report.</font></p>

<p style=' margin-bottom:12pt; 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-align:justify;'><font size=2>A Dividend Reinvestment and Cash Purchase Plan (the &#147;</font><u><font size=2>Plan</font></u><font size=2>&#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 website at www.daiwast.com and from the Plan Agent by calling (866)&nbsp;669-9904 or by writing The Japan Equity Fund, Inc., c/o the American Stock Transfer &amp; Trust Company, 59&nbsp;Maiden Lane, New York, NY 10038.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><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-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-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-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 NAV per share, the Fund will issue new shares to you at the higher of NAV or 95% of the then-current market price.  If the market price is lower than NAV 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:12pt; margin-top:0pt;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&nbsp;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: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;border-bottom:solid 0.5pt;padding-bottom:1;'><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></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>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-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:12pt; margin-top:0pt;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;border-bottom:solid 0.5pt;padding-bottom:1;'><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></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;'>
</p>

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

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>November&nbsp;19, 2007</font></p>

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

<p style=' margin-bottom:12pt; margin-top:0pt;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;</font><u><font size=2>Fund</font></u><font size=2>&#148;) for the year ended October&nbsp;31, 2007.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>For the twelve months ended October&nbsp;31, 2007, the total return of the TOPIX Index, the Fund&#146;s benchmark (in Japanese yen terms) was 1.4%.  The Tokyo equity market experienced a catch-up rally compared to other major global equity markets between the end of November 2006 and February&nbsp;2007, amid optimistic expectations for the global economy.  Following that, the market moved sideways for a time, as investors became concerned about higher interest rates, higher oil prices and signs of turmoil in the credit markets associated with U.S. sub-prime mortgage delinquencies, while the weak Japanese yen and resilient earnings announcements driven by large global corporations have supported the market and offset some of this negative sentiment.  Beginning in late July&nbsp;2007, chaos reigned in the financial markets, as the U.S. sub-prime mortgage problems began to escalate, and the Japanese market
was hit especially hard.  The market once again declined sharply in mid- August, early September and late October, as negative news of the global credit crunch began to resurface.  However, these declines began to subside, and the market experienced a slight rebound at the end of October&nbsp;2007, as the U.S. Federal Reserve Bank finally took action to support the financial markets by means of a series of interest rate cuts and liquidity injections.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>During the twelve months ended October&nbsp;31, 2007, on the domestic front, Japan&#146;s economic fundamentals have remained mixed, as exports and corporate capital expenditures continued to drive the economy while consumption and housing investments became a major cause for concern.  Solid corporate profits have failed to affect the behavior of household sectors, while profit growth has only been recorded by large global companies (automotive) and the beneficiaries of both higher commodities prices (metals and trading firms) and increased global fund flows (real estate).  Conversely, large employers such as companies in domestic service sectors (retail and restaurants) and infrastructure-related sectors (telecom, utilities, construction and government) have been having tough times.  Several temporary factors, including the missing national pension record problem, amendments to the Building Standards Law
and unusual climate conditions, also had negative effects on the country&#146;s economic condition, while the global financial market turmoil, the slowing U.S. economy and the surge in oil and other commodities prices have, to some extent, dragged down the sentiments of both consumers and corporations.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>Although the U.S. economy has experienced a measurable slow down, the global economy has thus far remained healthy.  Emerging market countries such as China, India and Russia, as well as those in the Middle East and Eastern Europe, have continued to drive the global economy with the solid expansion of infrastructure investments, commodities production and an increase in domestic consumption in the more advanced developing countries.  The impact from both the financial market uncertainty and the surge in natural resource prices upon the global real economy has remained at a manageable level, but we have been monitoring the potential consequences quite carefully.  Japanese corporations are becoming increasingly dependant on the global economy, as domestic demand remains sluggish and competition among companies in the domestic market remains harsh.  However, aggregate corporate profits of domestic issuers
will be more impacted by the global economic outlook than by domestic Gross Domestic Product (&#147;</font><U><font SIZE=2>GDP</font></U><font size=2>&#148;).</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>On the political front, this past year has seen the sudden resignation of Prime Minister Abe, following the historical losses suffered by the ruling Liberal Democratic Party in the July&nbsp;Upper House elections, and the subsequent appointment of Mr. Fukuda to the post of Prime Minister.  The government&#146;s policies are expected to shift out of a structural reform mode to a more middle-of-the-road approach, emphasizing the correction of the country&#146;s many economic imbalances.  Elections for the more important Lower House </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>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;'><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></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>are generally expected to take place within a year or so, due to the current split situation between the Lower and Upper Houses, and we believe that, under the existing deadlock, politics will only have a limited role in the economy and the stock market in the short term.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>The past twelve months also saw some setbacks to corporate governance, including the recent shareholder approvals of various defensive measures to prevent management-proposed takeovers and the shareholder rejections of a number of proposals made by activist funds at recent shareholder meetings, which indicate that silent shareholders make up the majority of voters.  There was also a court decision in favor of a poison pill plan in the Bull-dog Sauce Co., Ltd. vs. Steel Partners takeover case, in which the Japanese courts ruled that Bull-dog Sauce Co. Ltd. could enact anti-takeover defenses aimed at thwarting takeover bids.  Cross-share holdings between Japanese corporations have once again begun to develop, even among corporations within the same industry such as the steel sector, and the implications are that mergers and acquisitions (&#147;</font><u><font size=2>M&amp;A</font></u><font size=2>&#148;)
activity in Japan will have to be friendly and strategic, rather than hostile and opportunistic, which typically seek only short term capital gains.  At the same time, we have observed companies taking gradual movements toward enhancing shareholder value such as increasing their share buy-backs and augmenting dividends payments.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>Looking at the developments in the equity market on a sector level, those industries that have benefited from the expansion of the global economy, including marine transportation, iron &amp; steel, wholesale trade and machinery stocks have performed well, while the other products sector also demonstrated a nice advance, driven by Nintendo and its strong gaming equipment sales.  The worst performers over the past twelve months have been in the financial sectors, including other financial businesses and banks, due to escalating concerns about their exposure to the U.S. credit market and the deterioration of their domestic consumer finance businesses.  Domestic demand-oriented sectors, such as retail trade and construction, also performed poorly, as sluggish consumption activity and decreasing construction project developments have hurt companies in these sectors.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Table 1:  Net Asset Value (&#147;</font><U><font SIZE=2>NAV</font></U><font size=2>&#148;) performance in comparison with the benchmark (TOPIX),</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><i><font size=2>U.S. Dollar</font></i><font size=2> (&#147;</font><U><font SIZE=2>USD</font></U><font size=2>&#148;) </font><i><font size=2>base</font></i></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="638" style='border-collapse:collapse'>
    <tr >
        <td width="463" valign=bottom style='padding:0in 5.4pt 0in 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="175" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Latest 12  Months</font></b><br>  <b><font size=2>(As of October</font></b><font  size=2>&nbsp;</font><b><font size=2>31,  2007)</font></b><br>  <b><font size=2>%</font></b></p>  </div>  </td> </tr>
    <tr >
        <td width="463" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Japan Equity Fund (time weighted return)</font>                                                                                                                                                                                                             </p> </td>
        <td width="175" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:51.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.53</font></p> </td> </tr>
    <tr >
        <td width="463" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Benchmark (TOPIX)</font>                                                                                                                                                                                                                                                                                                                                  </p> </td>
        <td width="175" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:51.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.71</font></p> </div> </td> </tr>
    <tr >
        <td width="463" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Underperformance</font>                                                                                                                                                                                                                                                                                                                                                </p> </td>
        <td width="175" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:45.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;1.18</font></p> </div> </td> </tr></table>
</div>

<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>Table 2:  Attribution Analysis Summary, </font><i><font size=2>Japanese Yen</font></i><font size=2> (&#147;</font><U><font SIZE=2>JPY</font></U><font size=2>&#148;) base (Latest 12&nbsp;Months)</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="638" style='border-collapse:collapse'>
    <tr >
        <td width="463" valign=bottom style='padding:0in 5.4pt 0in 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="175" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(%)</font></b></p>  </div>  </td> </tr>
    <tr >
        <td width="463" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Portfolio (Equity Only)</font>                                                                                                                                                                                                                                                                                                                           </p> </td>
        <td width="175" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:52.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.24</font></p> </td> </tr>
    <tr >
        <td width="463" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Benchmark (TOPIX)</font>                                                                                                                                                                                                                                                                                                                                  </p> </td>
        <td width="175" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:52.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.40</font></p> </div> </td> </tr>
    <tr >
        <td width="463" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Underperformance</font>                                                                                                                                                                                                                                                                                                                                                </p> </td>
        <td width="175" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:46.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;1.16</font></p> </div> </td> </tr>
    <tr >
        <td width="463" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Breakdown</font></b>                                                                                                                                                                                                                                                                                                                                                                                            </p> </td>
        <td width="175" valign=bottom style='padding:0in 5.4pt 0in 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="463" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Sector Selection</font>                                                                                                                                                                                                                                                                                                                                                                 </p> </td>
        <td width="175" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:52.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.26</font></p> </td> </tr>
    <tr >
        <td width="463" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Stock Selection</font>                                                                                                                                                                                                                                                                                                                                                                      </p> </td>
        <td width="175" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:46.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;1.42</font></p> </td> </tr>
    <tr >
        <td width="463" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Others</font>                                                                                                                                                                                                                                                                                                                                                                                                                        </p> </td>
        <td width="175" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:52.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.00</font></p> </div> </td> </tr>
    <tr >
        <td width="463" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Total</font>                                                                                                                                                                                                                                                                                                                                                                                                                                  </p> </td>
        <td width="175" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:46.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;1.16</font></p> </div> </td> </tr></table>
</div>

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

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>Table 3:  Portfolio Return (equity portion of the Fund&#146;s portfolio) vs. Benchmark Return, USD base (monthly)</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="638" style='border-collapse:collapse'>
    <tr >
        <td width="55" valign=bottom style='padding:0in 5.4pt 0in 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="300" valign=bottom style='padding:0in 5.4pt 0in 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="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Portfolio</font></b><br>  <b><font size=2>Return</font></b><br>  <b><font size=2>(A)</font></b><br>  <b><font size=2>(%)</font></b></p>  </div>  </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Benchmark  Return</font></b><br>  <b><font size=2>(B)</font></b><br>  <b><font size=2>(%)</font></b></p>  </div>  </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Relative</font></b><br>  <b><font size=2>Return</font></b><br>  <b><font size=2>(A) &#150; (B)</font></b><br>  <b><font size=2>(%)</font></b></p>  </div>  </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2006</font></p> </td>
        <td width="300" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>November</font>                                                                                                                                                                                                                               </p> </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.63</font></p> </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.15</font></p> </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.48</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0in 5.4pt 0in 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="300" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>December</font>                                                                                                                                                                                                                               </p> </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2.87</font></p> </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2.55</font></p> </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.32</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2007</font></p> </td>
        <td width="300" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>January</font>                                                                                                                                                                                                                                               </p> </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.34</font></p> </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.23</font></p> </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.57</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0in 5.4pt 0in 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="300" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>February</font>                                                                                                                                                                                                                                        </p> </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>3.24</font></p> </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>4.61</font></p> </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;1.37</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0in 5.4pt 0in 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="300" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>March</font>                                                                                                                                                                                                                                                      </p> </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;1.79</font></p> </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;1.91</font></p> </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.12</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0in 5.4pt 0in 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="300" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>April</font>                                                                                                                                                                                                                                                                </p> </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;2.33</font></p> </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;2.19</font></p> </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.15</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0in 5.4pt 0in 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="300" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>May</font>                                                                                                                                                                                                                                                                  </p> </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.65</font></p> </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.61</font></p> </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.03</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0in 5.4pt 0in 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="300" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>June</font>                                                                                                                                                                                                                                                                  </p> </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.46</font></p> </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.19</font></p> </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.65</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0in 5.4pt 0in 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="300" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>July</font>                                                                                                                                                                                                                                                                      </p> </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.26</font></p> </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.38</font></p> </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.12</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0in 5.4pt 0in 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="300" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>August</font>                                                                                                                                                                                                                                                   </p> </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;3.41</font></p> </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;3.41</font></p> </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.00</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0in 5.4pt 0in 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="300" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>September</font>                                                                                                                                                                                                                              </p> </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.95</font></p> </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.08</font></p> </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.87</font></p> </td> </tr>
    <tr >
        <td width="55" valign=bottom style='padding:0in 5.4pt 0in 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="300" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>October</font>                                                                                                                                                                                                                                             </p> </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.91</font></p> </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.78</font></p> </td>
        <td width="94" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;1.70</font></p> </td> </tr></table>
</div>

<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>Table 4:  Attribution Analysis Breakdown, JPY base (Latest 12&nbsp;Months) &#150; (equity portion of the Fund&#146;s portfolio)</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="638" style='border-collapse:collapse'>
    <tr >
        <td width="159" valign=bottom style='padding:0in 5.4pt 0in 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="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Portfolio  Weight</font></b><br>  <b><font size=2>%</font></b></p>  </div>  </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Benchmark  Weight</font></b><br>  <b><font size=2>%</font></b></p>  </div>  </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Portfolio  Return</font></b><br>  <b><font size=2>%</font></b></p>  </div>  </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Benchmark  Return</font></b><br>  <b><font size=2>%</font></b></p>  </div>  </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Sector  Selection Effect</font></b><br>  <b><font size=2>%</font></b></p>  </div>  </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Stock  Selection Effect</font></b><br>  <b><font size=2>%</font></b></p>  </div>  </td> </tr>
    <tr >
        <td width="159" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Fishing, Agriculture &amp; Forestry</font>           </p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.01</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.10</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.00</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;11.36</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.01</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.00</font></p> </td> </tr>
    <tr >
        <td width="159" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Mining</font>                                                                                                       </p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.00</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.30</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.00</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>26.64</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.07</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.00</font></p> </td> </tr>
    <tr >
        <td width="159" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Construction</font>                                                                     </p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2.04</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.90</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;29.33</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;12.46</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.02</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.47</font></p> </td> </tr>
    <tr >
        <td width="159" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Foods</font>                                                                                                            </p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.54</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2.71</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:11.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;8.47</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:20.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>7.25</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.10</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.08</font></p> </td> </tr>
    <tr >
        <td width="159" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Textiles &amp; Apparel</font>                                                                                    </p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.45</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.05</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.59</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;3.09</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.01</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.06</font></p> </td> </tr>
    <tr >
        <td width="159" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Pulp &amp; Paper</font>       </p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.10</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.33</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.72</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;9.49</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.02</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.01</font></p> </td> </tr>
    <tr >
        <td width="159" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Chemicals</font>                                                                                  </p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>5.54</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>5.29</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.41</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:20.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>7.20</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.06</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.19</font></p> </td> </tr>
    <tr >
        <td width="159" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Pharmaceutical</font>                                                    </p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>4.14</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>4.30</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2.32</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;4.29</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.07</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.25</font></p> </td> </tr>
    <tr >
        <td width="159" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Oil &amp; Coal Products</font>                                                                               </p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.30</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.83</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;13.54</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>13.59</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.12</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.07</font></p> </td> </tr>
    <tr >
        <td width="159" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Rubber Products</font>                                            </p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.25</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.57</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>4.89</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:20.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>9.10</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.03</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.04</font></p> </td> </tr>
    <tr >
        <td width="159" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Glass &amp; Ceramic Products</font>                         </p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.71</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.22</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;14.15</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>19.32</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.06</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.33</font></p> </td> </tr>
    <tr >
        <td width="159" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Iron &amp; Steel</font>               </p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>4.09</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>3.45</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>51.21</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>38.82</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.04</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.22</font></p> </td> </tr>
    <tr >
        <td width="159" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Nonferrous Metals</font>                                </p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.90</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.36</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>9.53</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:20.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>9.87</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.07</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.06</font></p> </td> </tr>
    <tr >
        <td width="159" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Metal Products</font>                                                     </p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.07</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.61</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;27.49</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;10.52</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.02</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.25</font></p> </td> </tr>
    <tr >
        <td width="159" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Machinery</font>                                                                                </p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>7.04</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>4.36</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>47.64</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>24.17</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.53</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.23</font></p> </td> </tr>
    <tr >
        <td width="159" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Electrical Appliances</font>                   </p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:10.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>14.33</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>14.08</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:11.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;3.42</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:20.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.20</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.04</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.65</font></p> </td> </tr>
    <tr >
        <td width="159" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Transport Equipment</font>                    </p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:10.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>12.09</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>9.75</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.36</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:20.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.97</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.06</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.17</font></p> </td> </tr>
    <tr >
        <td width="159" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Precision Instruments</font>                </p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.49</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.36</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>34.13</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>13.11</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.10</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.24</font></p> </td> </tr>
    <tr >
        <td width="159" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other Products</font>                                                     </p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.81</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2.07</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>4.72</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>65.50</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.76</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.36</font></p> </td> </tr>
    <tr >
        <td width="159" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Wholesale Trade</font>                                           </p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>4.73</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>4.43</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>20.26</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>36.18</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.20</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.75</font></p> </td> </tr>
    <tr >
        <td width="159" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Retail Trade</font>                                                                      </p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>3.22</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>3.25</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;19.13</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;16.24</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.03</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.05</font></p> </td> </tr>
    <tr >
        <td width="159" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Banks</font>                                                                                                          </p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:10.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>10.52</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>12.10</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;24.90</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;22.58</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.37</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.25</font></p> </td> </tr>
    <tr >
        <td width="159" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other Financing Business</font>                                                                               </p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.94</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.62</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;32.23</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;28.58</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.03</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.07</font></p> </td> </tr></table>
</div>

<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>
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<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;'><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></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:justify;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="638" style='border-collapse:collapse'>
    <tr >
        <td width="159" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Securities &amp; Commodity Futures</font>                </p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2.03</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2.10</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.25</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;2.75</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.01</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.08</font></p> </td> </tr>
    <tr >
        <td width="159" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Insurance</font>                                                                                     </p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2.41</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2.57</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;12.18</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;6.17</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.04</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.14</font></p> </td> </tr>
    <tr >
        <td width="159" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Real Estate</font>                                                                           </p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>3.07</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>3.03</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2.86</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:20.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>5.90</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.01</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.05</font></p> </td> </tr>
    <tr >
        <td width="159" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Land Transportation</font>                        </p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2.71</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>3.14</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>13.60</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.38</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.03</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.37</font></p> </td> </tr>
    <tr >
        <td width="159" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Marine Transportation</font>            </p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.90</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.83</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>71.40</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>87.25</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.04</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.08</font></p> </td> </tr>
    <tr >
        <td width="159" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Air Transportation</font>                                   </p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.00</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.37</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.00</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:20.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>5.47</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.01</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.00</font></p> </td> </tr>
    <tr >
        <td width="159" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Warehouse &amp; Harbor Trans</font>                                                   </p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.00</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.23</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.00</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;6.33</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.02</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.00</font></p> </td> </tr>
    <tr >
        <td width="159" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Info &amp; Communication</font>                                        </p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>5.27</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>5.07</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2.75</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.72</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.00</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.12</font></p> </td> </tr>
    <tr >
        <td width="159" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Electric Power &amp; Gas</font>                                     </p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2.70</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>4.33</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:11.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;6.44</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;5.40</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.26</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.05</font></p> </td> </tr>
    <tr >
        <td width="159" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Services</font>                                                                                             </p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.60</font></p> </div> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:19.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.31</font></p> </div> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:11.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;4.87</font></p> </div> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:14.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;4.69</font></p> </div> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.01</font></p> </div> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:6.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.02</font></p> </div> </td> </tr>
    <tr >
        <td width="159" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total</font>                                                                                                                 </p> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:5.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>100.00</font></p> </div> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:9.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>100.00</font></p> </div> </td>
        <td width="80" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:17.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.24</font></p> </div> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:20.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.40</font></p> </div> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:13.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.26</font></p> </div> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:6.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;1.42</font></p> </div> </td> </tr></table>
</div>

<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>Comment</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>As shown in Table 1, the NAV of the Fund increased by 1.53% in USD terms during the twelve months from November&nbsp;1, 2006 to October&nbsp;31, 2007, while the benchmark (TOPIX) gained 2.71% in USD terms.  The portfolio, therefore, underperformed the benchmark by 1.18% over the year.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>Table 2 illustrates the performance of the equity portion of the portfolio in Japanese yen terms, excluding expenses and some cash positions, which was 0.24%, versus 1.40% for the benchmark, indicating underperformance of 1.16%.  Relative to the TOPIX, the sector selection effect was +0.26%, while the stock selection effect was &#150;1.42% (see Table 4).</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>An overweight position in the machinery sector (+0.53%) and underweight positions in banks (+0.37%) and electric power &amp; gas (+0.26%) stocks made positive contributions to performance relative to the benchmark, although these were partially offset by the negative effects in the other products (&#150;0.76%) and oil &amp; coal products (&#150;0.12%) sectors.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>Stock selection in the wholesale trade (&#150;0.75%), electrical appliances (&#150;0.65%) and construction (&#150;0.47%) sectors were negative contributors to performance relative to the benchmark, but this was partially offset by the positive effects in the machinery (+1.23%) and land transportation (0.37%) sectors.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>Over the past twelve months, the major positive contributors to performance relative to the benchmark were Komatsu and Makita (in machinery) and Mitsubishi Corporation (in wholesale trade), while Sumitomo Trust &amp; Banking and Mizuho Financial Group (in the banks) and Orix (in other financing business) contributed negatively to performance relative to the benchmark.  Among benchmark stocks, the Fund&#146;s non-holding of Nintendo (in other products) and Mitsui &amp; Co. (in wholesale trade) contributed negatively, while Sumitomo Mitsui Financial Group had a positive impact on the portfolio.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>Machinery companies such as Komatsu (construction and mining equipment) and Makita (electric power tools) have performed well, as strong demand from emerging market countries has driven the rapid growth of these companies&#146; earnings.  Trading companies, including Mitsubishi Corporation and Mitsui &amp; Co., also advanced on the back of a surge in commodities prices, such as oil, coal, and non-ferrous metals.  Nintendo, in particular, advanced strongly, as both the hardware and software for its mainstay game consoles (Nintendo DS and Nintendo Wii) became worldwide hits, and the company raised its forecasts for hardware and software shipments going forward.  Financial institutions, including Sumitomo Trust &amp; Banking, Mizuho Financial Group, Sumitomo Mitsui Financial Group and Orix underperformed, as investors became concerned about their exposure to the U.S. credit markets, the deterioration of their
domestic consumer finance businesses and weak interest income.</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>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;'><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></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>Outlook &amp; Strategy</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>Looking ahead, we believe a more positive stance toward Japanese equities is justified, given the following reasons:</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="211" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top style='padding:0in 0in 12.0pt 0in; '>
            <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="163" nowrap valign=top style='padding:0in 0in 12.0pt 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Corporate profit outlook</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>We are currently witnessing a two&#150;tiered corporate profit outlook in Japan, as there have recently been more upward revisions to profit estimates by global companies than by domestic corporations.  This dichotomy is expected to continue, given Japan&#146;s weak domestic demand and the recent cost increases which have resulted from higher crude oil prices.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>Aggregate recurring profits of Japanese corporations are expected to increase 10% in the year ending March 2008, inline with consensus estimates, due primarily to the good earnings outlooks of larger global companies such as Toyota and Komatsu.  Conversely, downward revisions are expected within a number of domestic sectors, including utilities, financials, retailers, services, food and housing, which have been the victims of bureaucratic red tape.  Looking ahead, corporate earnings within these domestic sectors, particularly utilities, financials and housing, are expected to recover from their recent bottoms in the year beginning April 2008.</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="211" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top style='padding:0in 0in 12.0pt 0in; '>
            <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 width="163" nowrap valign=top style='padding:0in 0in 12.0pt 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Macroeconomic outlook</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>We forecast real GDP growth of 1.6% in the year ending March 2008, and 1.9% growth for the year ending March 2009.  The recent downward revision from more than 2% growth in the current fiscal year was due in large part to the weakness in housing investments.  However, because of the increasing relative weights of global companies, aggregate corporate profits will be less affected by domestic GDP, and, in this case, the global economic outlook is much more relevant.  We predict that the U.S. economy will grow at a rate of 1.9% in 2007 and 2.4% in 2008 and that the greater than 10% economic growth witnessed in China in 2007 will continue in 2008.</font></p>


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<table border="0" cellspacing=0 cellpadding=0 width="125" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top style='padding:0in 0in 12.0pt 0in; '>
            <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 width="77" nowrap valign=top style='padding:0in 0in 12.0pt 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Valuation</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>The price-earnings (&#147;</font><U><font SIZE=2>P/E</font></U><font size=2>&#148;) ratio of the Japanese equity market is currently approximately 16 times estimated forward twelve month earnings, which is not a significant premium compared with the world&#146;s other major stock markets (e.g., approximately 15 times estimated forward twelve-month earnings for the United States and approximately 12 times estimated forward twelvemonth earnings for both the United Kingdom and Germany).  Valuations in the Japanese market are said to be discounted relative to long-term bond yields, as the current yield on the 10-year Japanese Government Bond (&#147;</font><U><font SIZE=2>JGB</font></U><font size=2>&#148;) stands at around 1.6%.</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="187" style='border-collapse:collapse; '>
    <tr >
        <td width="48" nowrap valign=top style='padding:0in 0in 12.0pt 0in; '>
            <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 width="139" nowrap valign=top style='padding:0in 0in 12.0pt 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Demand and Supply</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>A number of international investor surveys indicate that they are net underweight in Japan for the first time since early 2003, while the sentiment of domestic investors remains bearish.  Separately, corporations have begun to increase both their share buy back programs and dividends in order to gradually begin the task of enhancing shareholder value.  M&amp;A activity among Japanese companies has been an increasing trend, although the magnitude thus far has been comparatively smaller than in other developed countries such as the United States and those in Europe.  Bearish investor sentiment, coupled with the new shareholder value-oriented activities of corporations, leads us to believe that Japanese share prices are beginning to approach attractive levels, despite the fact that immediate catalysts are difficult to find.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>In regard to our sector and stock selection processes, we will focus on the following themes in the months ahead:</font></p>


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<table border="0" cellspacing=0 cellpadding=0 width="249" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top style='padding:0in 0in 12.0pt 0in; '>
            <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="201" nowrap valign=top style='padding:0in 0in 12.0pt 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Emerging market beneficiaries</font></p> </td> </tr></table>
</div>

<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>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;'><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></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>We currently remain overweight in those companies that have benefited from the rapid growth of the emerging markets, and we will increase our focus on infrastructure investment-related ideas such as highway and railway construction projects, ecology and energy development projects going forward.  We have also become more cautious towards commodities-related stocks, as we believe that most of the market&#146;s speculative elements (including oil prices) have already been factored into commodities prices.  Higher prices will eventually lead to decreased demand (the &#147;</font><u><font size=2>demand destruction</font></u><font size=2>&#148; story), with the possible exception of precious metals, which typically serve as a hedge against both the weakening U.S. dollar and inflation.  Within the consumer discretionary sector, due to their relatively low saturation rates in emerging market countries and their
strong pricing power backed by competitive positions, we have become more positive towards automotive stocks than either consumer electronics or electronic components.</font></p>


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<table border="0" cellspacing=0 cellpadding=0 width="165" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top style='padding:0in 0in 12.0pt 0in; '>
            <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 width="117" nowrap valign=top style='padding:0in 0in 12.0pt 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Domestic stocks</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>We currently have a preference for the victims of the recent bureaucratic red tape in Japan, specifically housing and building materials stocks, as the government&#146;s new rules and regulations have created pent up demand which, eventually, will have to be met.  However, due to the risk of climactic change, we are unsure about whether retailers and/or apparel stocks will be able to recover from the climate-induced slump experienced earlier this year.  Further, we expect the recent difficulties experienced by consumers, including their low government confidence level and zero real disposable income growth, to continue.  Finally, although financial stocks appear to be a good value right now, the sector&#146;s lack of catalysts and the recent volatility in the global markets have forced us to take a wait-and-see stance.  As such, we would advise maintaining an underweight position in the sector for the time being.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>In terms of stock selection, we think that either earnings growth or an earnings recovery in the fiscal years 2008 and 2009 will be the key to our progress rather than earnings growth in the current fiscal year.  However, any upward or downward revisions to the current year&#146;s earnings estimates will have an impact on individual share prices, and could create a lot of short-term fluctuation.</font></p>

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

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>During the year ended October&nbsp;31, 2007, the Fund&#146;s market price on the New York Stock Exchange (&#147;</font><U><font SIZE=2>NYSE</font></U><font size=2>&#148;) ranged from a low of $7.26 per share on August&nbsp;16, 2007 to a high of $9.10 on February&nbsp;23, 2007.  The Fund&#146;s NYSE market price closed at $7.97 per share on October&nbsp;31, 2007.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;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&nbsp;31, 2007, ranged from a high discount of 10.90% on August&nbsp;16, 2007 to a high premium of 0.46% on April&nbsp;25, 2007, and ended the period at a discount of 7.43%.</font></p>

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

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

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>Mr. Koichi Ogawa, CFA, is the Executive Director and Chief Portfolio Manager of Daiwa SB Investments Ltd. (&#147;</font><U><font SIZE=2>DSBI</font></U><font size=2>&#148;) for all North American clients.  A senior member of the Investment Policy Committee (IPC) of DSBI, Mr.&nbsp;Ogawa has 32 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-align:justify;'><font size=2>Mr. Naoto Nagai, CFA, is a Senior Portfolio Manager with a total of 11 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 </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>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;'><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></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>chemistry.  He assumed the day-to-day portfolio management responsibilities for the Fund, effective October&nbsp;18, 2006.</font></p>

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

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><img src="img1.jpg"><br> </p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6.0pt'><B><font SIZE=2>HIROSHI KIMURA</font></B></p> </td>
        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6.0pt'><B><font SIZE=2>HIDEO TANAKA</font></B></p> </td> </tr>
    <tr >
        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6.0pt'><i><font size=2>Chairman of the Board</font></i><i></i></p> </td>
        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6.0pt'><i><font size=2>President</font></i><i></i></p> </td> </tr></table>
</div>

<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;border-bottom:solid 0.5pt;padding-bottom:1;'><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></p>

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

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

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:justify;'><b><font size=2>October</font></b><font size=2>&nbsp;</font><b><font size=2>31, 2007</font></b></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:justify;border-top:solid 0.5pt;padding-top:1;border-bottom:solid 0.5pt;padding-bottom:1;'><b><font size=2>COMMON STOCKS&#151;98.89%</font></b></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="638" style='border-collapse:collapse'>
    <tr >
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font  size=2>Shares</font></b></p>  </div>  </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>  </div>  </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Value</font></b></p>  </div>  </td> </tr>
    <tr >
        <td  colspan="4" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Banks&#151;8.35%</font></b></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>454,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Mitsubishi UFJ Financial Group, Inc.</font>                                                           </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$4,491,887</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>615</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Mizuho Financial Group, Inc.</font>                                                                                                        </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>3,435,068</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>140,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The Bank of Yokohama, Ltd.</font>                                                                                                    </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:30.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>987,491</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:23.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>4,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The Musashino Bank, Ltd.</font>                                                                                                                     </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:30.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>188,325</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>173,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The Sumitomo Trust &amp; Banking Co., Ltd.</font>                                                                                                                                                                                                                                                         </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:22.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1,278,866</font></p> </div> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 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="288" valign=bottom style='padding:0in 5.4pt 0in 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="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:17.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>10,381,637</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="4" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Chemicals&#151;7.69%</font></b></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>199,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Asahi Kasei Corp.</font>                                                                                                                                                                    </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1,514,281</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>160,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Daicei Chemical Industries Ltd.</font>                                                                                       </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1,171,647</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>30,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Fujifilm Holdings Corp.</font>                                                                                                                                          </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1,433,287</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>35,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Hitachi Chemical Co., Ltd.</font>                                                                                                                    </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:30.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>854,326</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>28,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Nihon Parkerizing Co., Ltd.</font>                                                                                                                </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:30.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>297,463</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>29,600</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Shin-Etsu Chemical Co., Ltd.</font>                                                                                                      </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1,887,283</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>102,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Sumitomo Chemical Co., Ltd.</font>                                                                                                    </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:30.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>902,867</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>93,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Toyo Ink Manufacturing Co., Ltd.</font>                                                                          </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:30.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>317,486</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>330,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Ube Industries, Ltd.</font>                                                                                                                                                            </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:21.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1,178,162</font></p> </div> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 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="288" valign=bottom style='padding:0in 5.4pt 0in 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="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:21.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>9,556,802</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="4" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Commerce&#151;0.88%</font></b></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>56,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Canon Marketing Japan Inc.</font>                                                                                                          </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1,096,942</font></p> </td> </tr></table>
</div>

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


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="638" style='border-collapse:collapse'>
    <tr >
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Shares</font></b></p>  </div>  </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>  </div>  </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Value</font></b></p>  </div>  </td> </tr>
    <tr >
        <td  colspan="4" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Communication&#151;2.81%</font></b></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:32.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>116</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>KDDI Corp.</font>                                                                                                                                                                                                      </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$873,628</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:32.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>337</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>NTT Corp.</font>                                                                                                                                                                                                               </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1,545,657</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:32.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>470</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>NTT DoCoMo, Inc.</font>                                                                                                                                                           </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:30.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>677,728</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>6,400</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Obic Business Consultants Co., Ltd.</font>                                                             </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:30.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>397,498</font></p> </div> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 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="288" valign=bottom style='padding:0in 5.4pt 0in 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="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:21.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>3,494,511</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="4" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Construction&#151;1.24%</font></b></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>67,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Daiwa House Industry Co., Ltd.</font>                                                                                    </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:30.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>950,990</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>80,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Sumitomo Forestry Co., Ltd.</font>                                                                                                          </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:30.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>595,552</font></p> </div> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 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="288" valign=bottom style='padding:0in 5.4pt 0in 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="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:22.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1,546,542</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="4" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Electric Appliances&#151;12.93%</font></b></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>57,600</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Canon Inc.</font>                                                                                                                                                                                                                </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2,876,998</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>16,700</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Fanuc Ltd.</font>                                                                                                                                                                                                                 </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1,819,128</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>98,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Fujitsu Ltd.</font>                                                                                                                                                                                                               </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:30.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>766,157</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>34,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Hamamatsu Photonics K.K.</font>                                                                                                           </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1,066,192</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>27,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Japan Aviation Electronics Industry, Ltd.</font>                                  </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:30.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>413,021</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>19,500</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Kyocera Corp.</font>                                                                                                                                                                                         </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1,636,293</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>72,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Matsushita Electric Industrial Co., Ltd.</font>                                              </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1,369,701</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>130,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Mitsubishi Electric Corp.</font>                                                                                                                                </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1,576,442</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>37,700</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Omron Corp.</font>                                                                                                                                                                                                   </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:30.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>918,594</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>43,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Sony Corp.</font>                                                                                                                                                                                                               </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2,106,671</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>27,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Star Micronics Co., Ltd.</font>                                                                                                                                   </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:30.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>844,336</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>11,700</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Tokyo Electron Ltd.</font>                                                                                                                                                           </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:30.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>681,958</font></p> </div> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 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="288" valign=bottom style='padding:0in 5.4pt 0in 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="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:16.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>16,075,491</font></p> </div> </td> </tr></table>
</div>

<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;'>
</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>
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<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;'><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></p>

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

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:justify;'><b><font size=2>Portfolio of Investments (continued)</font></b></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:justify;'><b><font size=2>October</font></b><font size=2>&nbsp;</font><b><font size=2>31, 2007</font></b></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:justify;'><b><font size=2>COMMON STOCKS (continued)</font></b></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="638" style='border-collapse:collapse'>
    <tr >
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font  size=2>Shares</font></b></p>  </div>  </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>  </div>  </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Value</font></b></p>  </div>  </td> </tr>
    <tr >
        <td  colspan="4" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Electric Power &amp; Gas&#151;1.56%</font></b></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>14,500</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Kansai Electric Power Co., Inc.</font>                                                                                     </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$326,225</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>22,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Tohoku Electric Power Co., Inc.</font>                                                                                  </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>464,385</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>45,500</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Tokyo Electric Power Co., Inc.</font>                                                                                         </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:13.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1,154,100</font></p> </div> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 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="288" valign=bottom style='padding:0in 5.4pt 0in 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="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:13.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1,944,710</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="4" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Foods&#151;0.55%</font></b></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>76,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Nisshin Seifun Group Inc.</font>                                                                                                                          </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>684,607</font></p> </td> </tr>
    <tr >
        <td  colspan="4" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Glass &amp; Ceramic Products&#151;1.05%</font></b></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>49,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Asahi Glass Co., Ltd.</font>                                                                                                                                                   </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>669,110</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>38,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>NGK Spark Plug Co., Ltd.</font>                                                                                                                     </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:21.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>633,773</font></p> </div> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 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="288" valign=bottom style='padding:0in 5.4pt 0in 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="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:13.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1,302,883</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="4" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Insurance&#151;2.29%</font></b></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>218,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Aioi Insurance Co., Ltd.</font>                                                                                                                                   </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1,261,188</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>139,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Mitsui Sumitomo Insurance Co., Ltd.</font>                                                         </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:13.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1,584,156</font></p> </div> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 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="288" valign=bottom style='padding:0in 5.4pt 0in 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="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:13.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2,845,344</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="4" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Iron &amp; Steel&#151;4.62%</font></b></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>25,500</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>JFE Holdings, Inc.</font>                                                                                                                                                                     </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1,481,888</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>380,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Nippon Steel Corp.</font>                                                                                                                                                                 </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2,505,386</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>60,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Sumitomo Metal Industries, Ltd.</font>                                                                                     </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:14.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1,760,598</font></p> </div> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 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="288" valign=bottom style='padding:0in 5.4pt 0in 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="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:14.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>5,747,872</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="4" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Land Transportation&#151;2.48%</font></b></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:32.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>374</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>East Japan Railway Co.</font>                                                                                                                                    </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>3,076,598</font></p> </td> </tr></table>
</div>

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


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="638" style='border-collapse:collapse'>
    <tr >
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font  size=2>Shares</font></b></p>  </div>  </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>  </div>  </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Value</font></b></p>  </div>  </td> </tr>
    <tr >
        <td  colspan="4" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Machinery&#151;9.35%</font></b></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>74,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Aida Engineering Ltd.</font>                                                                                                                                                </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$439,680</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>25,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Daikin Industries Ltd.</font>                                                                                                                                                  </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1,255,212</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>73,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>JTEKT Corp.</font>                                                                                                                                                                                                </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1,391,895</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>95,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Komatsu Ltd.</font>                                                                                                                                                                                                </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>3,144,110</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>40,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Makita Corp.</font>                                                                                                                                                                                                   </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1,914,524</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>324,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Mitsubishi Heavy Industries Ltd.</font>                                                                                  </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1,868,798</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>12,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Mori Seiki Co., Ltd.</font>                                                                                                                                                             </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>300,730</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>44,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Nippon Thompson Co., Ltd.</font>                                                                                                              </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>369,979</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>48,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Ricoh Co., Ltd.</font>                                                                                                                                                                                       </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:22.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>940,236</font></p> </div> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 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="288" valign=bottom style='padding:0in 5.4pt 0in 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="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:9.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>11,625,164</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="4" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Marine Transportation&#151;1.28%</font></b></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>58,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Kawasaki Kisen Kaisha, Ltd.</font>                                                                                                    </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>796,543</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>77,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Nippon Yusen Kabushiki Kaisha</font>                                                                                  </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:22.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>789,263</font></p> </div> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 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="288" valign=bottom style='padding:0in 5.4pt 0in 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="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:14.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1,585,806</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="4" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Metal Products&#151;0.52%</font></b></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>40,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>J S Group Corp.</font>                                                                                                                                                                                  </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:23.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>645,935</font></p> </td> </tr>
    <tr >
        <td  colspan="4" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Non-Ferrous Metals&#151;2.37%</font></b></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>141,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Mitsubishi Materials Corp.</font>                                                                                                                      </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>816,948</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>81,500</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Sumitomo Electric Industries, Ltd.</font>                                                                          </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1,311,844</font></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>37,000</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Sumitomo Metal Mining Co., Ltd.</font>                                                                             </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:22.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>816,366</font></p> </div> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 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="288" valign=bottom style='padding:0in 5.4pt 0in 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="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:14.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2,945,158</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="4" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Oil &amp; Coal Products&#151;0.63%</font></b></p> </td> </tr>
    <tr >
        <td width="139" valign=bottom style='padding:0in 5.4pt 0in 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="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>6,800</font></p> </td>
        <td width="288" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Idemitsu Kosan Co., Ltd.</font>                                                                                                                             </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>785,615</font></p> </td> </tr></table>
</div>

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

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

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:justify;'><b><font size=2>Portfolio of Investments (continued)</font></b></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:justify;'><b><font size=2>October</font></b><font size=2>&nbsp;</font><b><font size=2>31, 2007</font></b></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:justify;'><b><font size=2>COMMON STOCKS (concluded)</font></b></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="639" style='border-collapse:collapse'>
    <tr >
        <td  colspan="3" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Shares</font></b></p>  </div>  </td>
        <td width="280" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>  </div>  </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Value</font></b></p>  </div>  </td> </tr>
    <tr >
        <td  colspan="2" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Other Financing Business&#151;1.14%</font></b></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="94" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="2">
            <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="184" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:11.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>7,000</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Orix Corp.</font>                                                                                                                                                                                                                       </p> </td>
        <td width="94" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$1,411,310</font></p> </td>
        <td  width="2">
            <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="184" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Other Products&#151;0.77%</font></b></p> </td>
        <td width="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="2" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="94" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="2">
            <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="184" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>62,000</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Namco Bandai Holdings Inc.</font>                                                                                                                    </p> </td>
        <td width="94" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>952,189</font></p> </td>
        <td  width="2">
            <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="184" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Pharmaceutical&#151;4.35%</font></b></p> </td>
        <td width="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="2" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="94" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="2">
            <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="184" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>27,000</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Daiichi Sankyo Co., Ltd.</font>                                                                                                                                            </p> </td>
        <td width="94" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>766,939</font></p> </td>
        <td  width="2">
            <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="184" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>20,000</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Ono Pharmaceuticals Co., Ltd.</font>                                                                                                            </p> </td>
        <td width="94" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:10.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,031,967</font></p> </td>
        <td  width="2">
            <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="184" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>74,000</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Rohto Pharmaceutical Co., Ltd.</font>                                                                                                        </p> </td>
        <td width="94" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>877,432</font></p> </td>
        <td  width="2">
            <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="184" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>43,900</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Takeda Pharmaceutical Co., Ltd.</font>                                                                                                  </p> </td>
        <td width="94" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:10.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2,730,403</font></p> </div> </td>
        <td  width="2">
            <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="184" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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:0in 5.75pt 0in 5.75pt'>
            <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="94" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:10.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5,406,741</font></p> </div> </td>
        <td  width="2">
            <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:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Precision Instruments&#151;0.75%</font></b></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="94" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="2">
            <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="184" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>19,000</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Terumo Corp.</font>                                                                                                                                                                                                   </p> </td>
        <td width="94" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>925,903</font></p> </td>
        <td  width="2">
            <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="184" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Real Estate&#151;3.21%</font></b></p> </td>
        <td width="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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:0in 5.75pt 0in 5.75pt'>
            <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="94" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="2">
            <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="184" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>21,400</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Atrium Co., Ltd.</font>                                                                                                                                                                                       </p> </td>
        <td width="94" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>592,999</font></p> </td>
        <td  width="2">
            <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="184" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>68,000</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Mitsui Fudosan Co., Ltd.</font>                                                                                                                                       </p> </td>
        <td width="94" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:10.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,866,574</font></p> </td>
        <td  width="2">
            <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="184" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>120,000</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Tokyo Tatemono Co., Ltd.</font>                                                                                                                                </p> </td>
        <td width="94" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:10.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,531,272</font></p> </div> </td>
        <td  width="2">
            <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="184" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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:0in 5.75pt 0in 5.75pt'>
            <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="94" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:10.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3,990,845</font></p> </div> </td>
        <td  width="2">
            <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="184" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Retail Trade&#151;3.32%</font></b></p> </td>
        <td width="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="2" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="94" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="2">
            <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="184" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>18,400</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Nitori Co., Ltd.</font>                                                                                                                                                                                              </p> </td>
        <td width="94" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>839,124</font></p> </td>
        <td  width="2">
            <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="184" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>70,000</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Seven &amp; I Holdings Co., Ltd.</font>                                                                 </p> </td>
        <td width="94" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:11.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,799,861</font></p> </td>
        <td  width="2">
            <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="184" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>17,500</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Shimachu Co., Ltd.</font>                                                                                                                                                                        </p> </td>
        <td width="94" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>501,650</font></p> </td>
        <td  width="2">
            <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="184" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>33,500</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Xebio Co., Ltd.</font>                                                                                                                                                                                            </p> </td>
        <td width="94" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:18.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>986,492</font></p> </div> </td>
        <td  width="2">
            <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="184" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="2" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="94" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:11.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4,127,127</font></p> </div> </td>
        <td  width="2">
            <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="184" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Rubber Products&#151;1.40%</font></b></p> </td>
        <td width="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="2" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="94" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="2">
            <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="184" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>79,000</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Bridgestone Corp.</font>                                                                                                                                                                           </p> </td>
        <td width="94" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:11.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,739,620</font></p> </td>
        <td  width="2">
            <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="184" ></td>

        <td width="76" ></td>

        <td width="4" ></td>

        <td width="280" ></td>

        <td width="94" ></td>

        <td width="2" ></td> </tr> </table>
            </div>

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


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="639" style='border-collapse:collapse'>
    <tr >
        <td  colspan="2" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font  size=2>Shares</font></b></p>  </div>  </td>
        <td width="284" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>  </div>  </td>
        <td width="92" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Value</font></b></p>  </div>  </td> </tr>
    <tr >
        <td width="188" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Securities&#151;1.55%</font></b></p> </td>
        <td width="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="284" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="92" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="188" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>108,000</font></p> </td>
        <td width="284" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Nomura Holdings Inc.</font>                                                                                                                                                       </p> </td>
        <td width="92" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:3.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$1,923,211</font></p> </td> </tr>
    <tr >
        <td width="188" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Services&#151;3.50%</font></b></p> </td>
        <td width="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="284" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="92" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="188" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>470</font></p> </td>
        <td width="284" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Dentsu Inc.</font>                                                                                                                                                                                                              </p> </td>
        <td width="92" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1,228,892</font></p> </td> </tr>
    <tr >
        <td width="188" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>28,200</font></p> </td>
        <td width="284" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Nomura Research Institute, Ltd.</font>                                                                                                   </p> </td>
        <td width="92" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>992,095</font></p> </td> </tr>
    <tr >
        <td width="188" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>19,000</font></p> </td>
        <td width="284" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Secom Co., Ltd.</font>                                                                                                                                                                                         </p> </td>
        <td width="92" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>975,417</font></p> </td> </tr>
    <tr >
        <td width="188" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>250</font></p> </td>
        <td width="284" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Tempstaff Co., Ltd.</font>                                                                                                                                                                      </p> </td>
        <td width="92" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>308,374</font></p> </td> </tr>
    <tr >
        <td width="188" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>42,500</font></p> </td>
        <td width="284" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Toho Co., Ltd.</font>                                                                                                                                                                                               </p> </td>
        <td width="92" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:16.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>845,422</font></p> </div> </td> </tr>
    <tr >
        <td width="188" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="284" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="92" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:9.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>4,350,200</font></p> </div> </td> </tr>
    <tr >
        <td width="188" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Textile &amp; Apparel&#151;1.06%</font></b></p> </td>
        <td width="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="284" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="92" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="188" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>171,000</font></p> </td>
        <td width="284" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Toray Industries Inc.</font>                                                                                                                                                            </p> </td>
        <td width="92" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1,313,099</font></p> </td> </tr>
    <tr >
        <td  colspan="2" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Transportation Equipment&#151;11.79%</font></b></p> </td>
        <td width="284" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="92" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="188" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>30,000</font></p> </td>
        <td width="284" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Aisin Seiki Co., Ltd.</font>                                                                                                                                                                   </p> </td>
        <td width="92" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1,224,809</font></p> </td> </tr>
    <tr >
        <td width="188" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>90,000</font></p> </td>
        <td width="284" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Daihatsu Motor Co., Ltd.</font>                                                                                                                                       </p> </td>
        <td width="92" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>950,660</font></p> </td> </tr>
    <tr >
        <td width="188" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>58,000</font></p> </td>
        <td width="284" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Denso Corp.</font>                                                                                                                                                                                                         </p> </td>
        <td width="92" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2,342,773</font></p> </td> </tr>
    <tr >
        <td width="188" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>28,000</font></p> </td>
        <td width="284" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Honda Motor Co., Ltd.</font>                                                                                                                                                   </p> </td>
        <td width="92" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1,045,865</font></p> </td> </tr>
    <tr >
        <td width="188" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>380,000</font></p> </td>
        <td width="284" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Kawasaki Heavy Industries, Ltd.</font>                                                                                               </p> </td>
        <td width="92" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1,363,273</font></p> </td> </tr>
    <tr >
        <td width="188" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>19,500</font></p> </td>
        <td width="284" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Shimano Inc.</font>                                                                                                                                                                                                       </p> </td>
        <td width="92" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>708,044</font></p> </td> </tr>
    <tr >
        <td width="188" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>123,000</font></p> </td>
        <td width="284" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Toyota Motor Corp.</font>                                                                                                                                                                </p> </td>
        <td width="92" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:9.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>7,019,719</font></p> </div> </td> </tr>
    <tr >
        <td width="188" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="284" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="92" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:3.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>14,655,143</font></p> </div> </td> </tr>
    <tr >
        <td width="188" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Wholesale Trade&#151;5.45%</font></b></p> </td>
        <td width="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="284" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="92" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="188" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>34,000</font></p> </td>
        <td width="284" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Hitachi High- Technologies Corp.</font>                                                                                         </p> </td>
        <td width="92" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>761,987</font></p> </td> </tr>
    <tr >
        <td width="188" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>121,000</font></p> </td>
        <td width="284" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Mitsubishi Corp.</font>                                                                                                                                                                                  </p> </td>
        <td width="92" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>3,731,324</font></p> </td> </tr>
    <tr >
        <td width="188" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>132,300</font></p> </td>
        <td width="284" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Sumitomo Corp.</font>                                                                                                                                                                                       </p> </td>
        <td width="92" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2,278,934</font></p> </td> </tr>
    <tr >
        <td width="188" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="284" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="92" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:9.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>6,772,245</font></p> </div> </td> </tr>
    <tr >
        <td width="188" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Total Common Stocks</font></b><br> <b><font size=2>(Cost&#151;$105,771,318)</font></b></p> </td>
        <td width="76" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="284" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="92" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:double black 1.5pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>122,909,250</font></p> </div> </td> </tr></table>
</div>

<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;'>
</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>
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<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;'><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></p>

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

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:justify;'><b><font size=2>Portfolio of Investments (concluded)</font></b></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:justify;'><b><font size=2>October</font></b><font size=2>&nbsp;</font><b><font size=2>31, 2007</font></b></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:justify;'><b><font size=2>SHORT-TERM INVESTMENTS&#151;0.04%</font></b></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="639" style='border-collapse:collapse'>
    <tr >
        <td width="371" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Principal Amount (000)</font></b></p>  </div>  </td>
        <td width="158" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>  </div>  </td>
        <td width="111" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Value</font></b></p>  </div>  </td> </tr>
    <tr >
        <td width="371" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font  size=2>U.S. DOLLAR TIME  DEPOSIT&#151;0.04%</font></b></p>  </td>
        <td width="158" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="111" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>  </td> </tr>
    <tr >
        <td width="371" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="158" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="111" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="371" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$ 54</font>                                                                                                                                                                                                                                                                                                                                         </p> </td>
        <td width="158" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Bank of New York Time Deposit, 0.05%, due 11/1/07 </font><br> <font size=2>(Cost&#151;$53,750)</font></p> </td>
        <td width="111" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$53,751</font></p> </div> </td> </tr>
    <tr >
        <td width="371" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Total Investments&#151;98.93%</font>                                                                                                                                     </p> </td>
        <td width="158" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="111" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="371" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(Cost&#151;$105,825,068)</font>                                                                                                                                                                          </p> </td>
        <td width="158" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="111" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>122,963,001</font></p> </div> </td> </tr>
    <tr >
        <td width="371" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Other assets less liabilities&#151;1.07%</font>                                                                                            </p> </td>
        <td width="158" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="111" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,328,459</font></p> </div> </td> </tr>
    <tr >
        <td width="371" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>NET ASSETS</font></B><font size=2> (Applicable to 14,431,605 shares of capital stock outstanding; equivalent to $8.61 per share)&#151;100.00%</font>                                                                                                                                                                                    </p> </td>
        <td width="158" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="111" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:double black 1.5pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:3.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$124,291,460</font></p> </div> </td> </tr></table>
</div>

<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;'>See accompanying notes to financial statements.</p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><B><font SIZE=2>EQUITY CLASSIFICATIONS HELD</font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><b><font size=2>October</font></b><font size=2>&nbsp;</font><b><font size=2>31, 2007</font></b></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="639" style='border-collapse:collapse'>
    <tr >
        <td width="538" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font  size=2>Industry</font></b></p>  </div>  </td>
        <td width="102" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Percent of Net Assets</font></b></p>  </div>  </td> </tr>
    <tr >
        <td width="538" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Electric Appliances</font>                                                                                                                                                                                                                                                                                                                                                                                                                       </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>12.93%</font></p> </td> </tr>
    <tr >
        <td width="538" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Transportation Equipment</font>                                                                                                                                                                                                                                                                                                                                                                                  </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>11.79</font></p> </td> </tr>
    <tr >
        <td width="538" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Machinery</font>                                                                                                                                                                                                                                                                                                                                                                                                                                                                          </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>9.35</font></p> </td> </tr>
    <tr >
        <td width="538" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Banks</font>                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>8.35</font></p> </td> </tr>
    <tr >
        <td width="538" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Chemicals</font>                                                                                                                                                                                                                                                                                                                                                                                                                                                                            </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>7.69</font></p> </td> </tr>
    <tr >
        <td width="538" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Wholesale Trade</font>                                                                                                                                                                                                                                                                                                                                                                                                                                     </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5.45</font></p> </td> </tr>
    <tr >
        <td width="538" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Iron &amp; Steel</font>                                                                                                                                                                                                                                                                                                                                                                                                         </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.62</font></p> </td> </tr>
    <tr >
        <td width="538" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Pharmaceutical</font>                                                                                                                                                                                                                                                                                                                                                                                                                                              </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.35</font></p> </td> </tr>
    <tr >
        <td width="538" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Services</font>                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.50</font></p> </td> </tr>
    <tr >
        <td width="538" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Retail Trade</font>                                                                                                                                                                                                                                                                                                                                                                                                                                                                </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.32</font></p> </td> </tr>
    <tr >
        <td width="538" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Real Estate</font>                                                                                                                                                                                                                                                                                                                                                                                                                                                                     </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.21</font></p> </td> </tr>
    <tr >
        <td width="538" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Communication</font>                                                                                                                                                                                                                                                                                                                                                                                                                                              </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.81</font></p> </td> </tr>
    <tr >
        <td width="538" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Land Transportation</font>                                                                                                                                                                                                                                                                                                                                                                                                                  </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.48</font></p> </td> </tr>
    <tr >
        <td width="538" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Non-Ferrous Metals</font>                                                                                                                                                                                                                                                                                                                                                                                                                  </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.37</font></p> </td> </tr>
    <tr >
        <td width="538" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Insurance</font>                                                                                                                                                                                                                                                                                                                                                                                                                                                                               </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.29</font></p> </td> </tr>
    <tr >
        <td width="538" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Electric Power &amp; Gas</font>                                                                                                                                                                                                                                                                                                                                               </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.56</font></p> </td> </tr>
    <tr >
        <td width="538" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Securities</font>                                                                                                                                                                                                                                                                                                                                                                                                                                                                                </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.55</font></p> </td> </tr>
    <tr >
        <td width="538" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Rubber Products</font>                                                                                                                                                                                                                                                                                                                                                                                                                                      </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.40</font></p> </td> </tr>
    <tr >
        <td width="538" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Marine Transportation</font>                                                                                                                                                                                                                                                                                                                                                                                                      </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.28</font></p> </td> </tr>
    <tr >
        <td width="538" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Construction</font>                                                                                                                                                                                                                                                                                                                                                                                                                                                               </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.24</font></p> </td> </tr>
    <tr >
        <td width="538" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Other Financing Business</font>                                                                                                                                                                                                                                                                                                                                                                                   </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.14</font></p> </td> </tr>
    <tr >
        <td width="538" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Textile &amp; Apparel</font>                                                                                                                                                                                                                                                                                                                                                                       </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.06</font></p> </td> </tr>
    <tr >
        <td width="538" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Glass &amp; Ceramic Products</font>                                                                                                                                                                                                                                                                                                                    </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.05</font></p> </td> </tr>
    <tr >
        <td width="538" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Commerce</font>                                                                                                                                                                                                                                                                                                                                                                                                                                                                        </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.88</font></p> </td> </tr>
    <tr >
        <td width="538" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Other Products</font>                                                                                                                                                                                                                                                                                                                                                                                                                                               </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.77</font></p> </td> </tr>
    <tr >
        <td width="538" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Precision Instruments</font>                                                                                                                                                                                                                                                                                                                                                                                                          </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.75</font></p> </td> </tr>
    <tr >
        <td width="538" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Oil &amp; Coal Products</font>                                                                                                                                                                                                                                                                                                                                                          </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.63</font></p> </td> </tr>
    <tr >
        <td width="538" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Foods</font>                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.55</font></p> </td> </tr>
    <tr >
        <td width="538" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Metal Products</font>                                                                                                                                                                                                                                                                                                                                                                                                                                               </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.52</font></p> </td> </tr></table>
</div>

<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>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;'><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></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:left;'><B><font SIZE=2>TEN LARGEST EQUITY POSITIONS HELD</font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><b><font size=2>October</font></b><font size=2>&nbsp;</font><b><font size=2>31, 2007</font></b></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="638" style='border-collapse:collapse'>
    <tr >
        <td width="536" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font  size=2>Issue</font></b></p>  </div>  </td>
        <td width="102" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Percent of Net Assets</font></b></p>  </div>  </td> </tr>
    <tr >
        <td width="536" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Toyota Motor Corp.</font>                                                                                                                                                                                                                                                                                                                                                                                                                   </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5.65%</font></p> </td> </tr>
    <tr >
        <td width="536" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Mitsubishi UFJ Financial Group, Inc.</font>                                                                                                                                                                                                                                                                                                                   </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.61</font></p> </td> </tr>
    <tr >
        <td width="536" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Mitsubishi Corp. 3.00 Mizuho Financial Group, Inc.</font>                                                                                                                                                                                                                               </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.76</font></p> </td> </tr>
    <tr >
        <td width="536" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Komatsu Ltd.</font>                                                                                                                                                                                                                                                                                                                                                                                                                                                        </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.53</font></p> </td> </tr>
    <tr >
        <td width="536" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>East Japan Railway Co.</font>                                                                                                                                                                                                                                                                                                                                                                                            </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.48</font></p> </td> </tr>
    <tr >
        <td width="536" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Canon Inc.</font>                                                                                                                                                                                                                                                                                                                                                                                                                                                                        </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.31</font></p> </td> </tr>
    <tr >
        <td width="536" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Takeda Pharmaceutical Co., Ltd.</font>                                                                                                                                                                                                                                                                                                                                      </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.20</font></p> </td> </tr>
    <tr >
        <td width="536" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Nippon Steel Corp.</font>                                                                                                                                                                                                                                                                                                                                                                                                                         </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.02</font></p> </td> </tr>
    <tr >
        <td width="536" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Denso Corp.</font>                                                                                                                                                                                                                                                                                                                                                                                                                                                              </p> </td>
        <td width="102" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.88</font></p> </td> </tr></table>
</div>

<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:left;'><b><font size=2>Statement of Assets and Liabilities</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><b><font size=2>October</font></b><font size=2>&nbsp;</font><b><font size=2>31, 2007</font></b></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="639" style='border-collapse:collapse'>
    <tr >
        <td width="512" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Assets</font></b></p>  </td>
        <td width="127" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="512" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Investment in securities, at value (cost&#151;$105,825,068)</font>                                                                                                                        </p> </td>
        <td width="127" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$122,963,001</font></p> </td> </tr>
    <tr >
        <td width="512" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Cash denominated in foreign currency (cost&#151;$874,132)</font>                                                                                                                </p> </td>
        <td width="127" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>873,643</font></p> </td> </tr>
    <tr >
        <td width="512" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Receivable for securities sold</font>                                                                                                                                                                                                                                                                                                                                    </p> </td>
        <td width="127" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>430,334</font></p> </td> </tr>
    <tr >
        <td width="512" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Interest and dividends receivable</font>                                                                                                                                                                                                                                                                                                                </p> </td>
        <td width="127" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>530,272</font></p> </td> </tr>
    <tr >
        <td width="512" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Prepaid expenses</font>                                                                                                                                                                                                                                                                                                                                                                                                         </p> </td>
        <td width="127" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:37.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>23,176</font></p> </div> </td> </tr>
    <tr >
        <td width="512" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Total assets</font>                                                                                                                                                                                                                                                                                                                                                                                                                                          </p> </td>
        <td width="127" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:double black 1.5pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>124,820,426</font></p> </div> </td> </tr>
    <tr >
        <td width="512" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Liabilities</font></b></p> </td>
        <td width="127" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="512" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Payable for securities purchased</font>                                                                                                                                                                                                                                                                                                                 </p> </td>
        <td width="127" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>351,244</font></p> </td> </tr>
    <tr >
        <td width="512" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Payable for management fees</font>                                                                                                                                                                                                                                                                                                                                </p> </td>
        <td width="127" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:37.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>13,233</font></p> </td> </tr>
    <tr >
        <td width="512" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Payable for advisory fees</font>                                                                                                                                                                                                                                                                                                                                                          </p> </td>
        <td width="127" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:37.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>19,849</font></p> </td> </tr>
    <tr >
        <td width="512" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Payable to other affiliates</font>                                                                                                                                                                                                                                                                                                                                                          </p> </td>
        <td width="127" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:37.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>29,152</font></p> </td> </tr>
    <tr >
        <td width="512" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Accrued expenses and other liabilities</font>                                                                                                                                                                                                                                                                                   </p> </td>
        <td width="127" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>115,488</font></p> </div> </td> </tr>
    <tr >
        <td width="512" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Total liabilities</font>                                                                                                                                                                                                                                                                                                                                                                                                                             </p> </td>
        <td width="127" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>528,966</font></p> </div> </td> </tr>
    <tr >
        <td width="512" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Net Assets</font></b></p> </td>
        <td width="127" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="512" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Capital stock, $0.01 par value per share; total 30,000,000 shares authorized;</font><br> <font size=2>14,431,605 shares issued and outstanding</font>                                                                                                                                                                                                                                                   </p> </td>
        <td width="127" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>144,317</font></p> </td> </tr>
    <tr >
        <td width="512" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Paid-in capital in excess of par value</font>                                                                                                                                                                                                                                                                                         </p> </td>
        <td width="127" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>125,321,410</font></p> </td> </tr>
    <tr >
        <td width="512" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Accumulated net investment loss</font>                                                                                                                                                                                                                                                                                                               </p> </td>
        <td width="127" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(398,186)</font></p> </td> </tr>
    <tr >
        <td width="512" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Accumulated net realized loss on investments</font>                                                                                                                                                                                                                                      </p> </td>
        <td width="127" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(17,910,126)</font></p> </td> </tr>
    <tr >
        <td width="512" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net unrealized appreciation on investments and other assets and liabilities</font><br> <font size=2>denominated in foreign currency</font>                                                                                                                                                                                                                                                                                                     </p> </td>
        <td width="127" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>17,134,045</font></p> </div> </td> </tr>
    <tr >
        <td width="512" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Net assets applicable to shares outstanding</font>                                                                                                                                                                                                                                                     </p> </td>
        <td width="127" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:6.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$124,291,460</font></p> </div> </td> </tr>
    <tr >
        <td width="512" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Net Asset Value Per Share</font></b>                                                                                                                                                                                                                                                                                                                                              </p> </td>
        <td width="127" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:55.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$8.61</font></b></p> </td> </tr></table>
</div>

<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;'>See accompanying notes to financial statements.</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>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;'><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></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:left;border-bottom:solid 0.5pt;padding-bottom:1;'>
<b><font size=2>Statement of Operations</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;border-bottom:solid 0.5pt;padding-bottom:1;'><b><font size=2>For the Year Ended October</font></b><font size=2>&nbsp;</font><b><font size=2>31, 2007</font></b></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="638" style='border-collapse:collapse'>
    <tr >
        <td width="511" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font  size=2>Investment income:</font></b></p>  </td>
        <td width="127" valign=top style='padding:0in 5.4pt 0in 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="511" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Dividends (net of withholding taxes of $108,763)</font>                                                                                                                                                                                                                     </p> </td>
        <td width="127" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$1,449,781</font></p> </td> </tr>
    <tr >
        <td width="511" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Interest</font>                                                                                                                                                                                                                                                                                                                                                                                                                                                                   </p> </td>
        <td width="127" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:50.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>68</font></p> </div> </td> </tr>
    <tr >
        <td width="511" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total investment income</font>                                                                                                                                                                                                                                                                                                                                                                 </p> </td>
        <td width="127" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:23.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,449,849</font></p> </div> </td> </tr>
    <tr >
        <td width="511" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Expenses:</font></b></p> </td>
        <td width="127" valign=top style='padding:0in 5.4pt 0in 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="511" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Investment management and advisory fee</font>                                                                                                                                                                                                                                                           </p> </td>
        <td width="127" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>392,752</font></p> </td> </tr>
    <tr >
        <td width="511" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Administration fee and expenses</font>                                                                                                                                                                                                                                                                                                                 </p> </td>
        <td width="127" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>275,410</font></p> </td> </tr>
    <tr >
        <td width="511" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Custodian fees and expenses</font>                                                                                                                                                                                                                                                                                                                                      </p> </td>
        <td width="127" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>163,926</font></p> </td> </tr>
    <tr >
        <td width="511" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Audit and tax services</font>                                                                                                                                                                                                                                                                                                                                                                             </p> </td>
        <td width="127" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:37.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>85,661</font></p> </td> </tr>
    <tr >
        <td width="511" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Reports and notices to shareholders</font>                                                                                                                                                                                                                                                                                               </p> </td>
        <td width="127" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:37.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>54,975</font></p> </td> </tr>
    <tr >
        <td width="511" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Directors&#146; fees and expenses</font>                                                                                                                                                                                                                                                                  </p> </td>
        <td width="127" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:37.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>45,314</font></p> </td> </tr>
    <tr >
        <td width="511" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Legal fees and expenses</font>                                                                                                                                                                                                                                                                                                                                                               </p> </td>
        <td width="127" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:37.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>40,809</font></p> </td> </tr>
    <tr >
        <td width="511" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Insurance expense</font>                                                                                                                                                                                                                                                                                                                                                                                                  </p> </td>
        <td width="127" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:37.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>36,731</font></p> </td> </tr>
    <tr >
        <td width="511" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Transfer agency fee and expenses</font>                                                                                                                                                                                                                                                                                                     </p> </td>
        <td width="127" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:42.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>8,206</font></p> </td> </tr>
    <tr >
        <td width="511" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other</font>                                                                                                                                                                                                                                                                                                                                                                                                                                                                              </p> </td>
        <td width="127" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:37.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>93,719</font></p> </div> </td> </tr>
    <tr >
        <td width="511" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total expenses</font>                                                                                                                                                                                                                                                                                                                                                                                                                        </p> </td>
        <td width="127" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:23.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,197,503</font></p> </div> </td> </tr>
    <tr >
        <td width="511" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Net investment income</font></b>                                                                                                                                                                                                                                                                                                                                                                         </p> </td>
        <td width="127" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>252,346</font></p> </div> </td> </tr>
    <tr >
        <td width="511" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Realized and unrealized gains from investment activities and foreign</font></b><br> <b><font size=2>currency transactions:</font></b></p> </td>
        <td width="127" valign=top style='padding:0in 5.4pt 0in 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="511" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net realized gains on investments</font>                                                                                                                                                                                                                                                                                                            </p> </td>
        <td width="127" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:23.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>7,067,731</font></p> </td> </tr>
    <tr >
        <td width="511" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net realized foreign currency transaction losses</font></p> </td>
        <td width="127" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:33.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(13,650)</font></p> </td> </tr>
    <tr >
        <td width="511" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net change in unrealized appreciation (depreciation) on investments in</font><br> <font size=2>equity securities</font>                                                                                                                                                                                                                                                                                                                                                                                                    </p> </td>
        <td width="127" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(5,579,598)</font></p> </td> </tr>
    <tr >
        <td width="511" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net change in unrealized appreciation (depreciation) on short-term investments</font><br> <font size=2>and other assets and liabilities denominated in foreign currency</font>                                                                                                                    </p> </td>
        <td width="127" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:47.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(576)</font></p> </td> </tr>
    <tr >
        <td width="511" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net realized and unrealized gains from investment activities and foreign</font><br> <font size=2>currency transactions</font>                                                                                                                                                                                                                                                                                                                                                                    </p> </td>
        <td width="127" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:23.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,473,907</font></p> </div> </td> </tr>
    <tr >
        <td width="511" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Net increase in net assets resulting from operations</font></b>                                                                                                                                                                                                    </p> </td>
        <td width="127" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$1,726,253</font></p> </div> </td> </tr></table>
</div>

<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;'>See accompanying notes to financial statements.</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>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;'><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></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;'>
</p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>Statement of Changes in Net Assets</font></b></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="639" style='border-collapse:collapse'>
    <tr >
        <td width="388" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the Years Ended October</font></b><font  size=2>&nbsp;</font><b><font  size=2>31,</font></b></p>  </div>  </td> </tr>
    <tr >
        <td width="388" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p>  </div>  </td>
        <td width="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p>  </div>  </td> </tr>
    <tr >
        <td width="388" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Increase (decrease) in net assets from operations:</font></b></p> </td>
        <td width="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="388" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net investment income</font></p> </td>
        <td width="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$252,346</font></p> </td>
        <td width="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$150,842</font></p> </td> </tr>
    <tr >
        <td width="388" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net realized gain (loss) on:</font></p> </td>
        <td width="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="388" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Investments</font></p> </td>
        <td width="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>7,067,731</font></p> </td>
        <td width="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>11,830,566</font></p> </td> </tr>
    <tr >
        <td width="388" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Foreign currency transactions</font></p> </td>
        <td width="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(13,650)</font></p> </td>
        <td width="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(12,971)</font></p> </td> </tr>
    <tr >
        <td width="388" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net change in unrealized appreciation (depreciation) on:</font></p> </td>
        <td width="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="388" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Investments in equity securities</font></p> </td>
        <td width="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(5,579,598)</font></p> </td>
        <td width="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:30.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>184,658</font></p> </td> </tr>
    <tr >
        <td width="388" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Translation of short-term investments and other assets and liabilities denominated in foreign currency</font></p> </td>
        <td width="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:37.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(576)</font></p> </div> </td>
        <td width="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>27,895</font></p> </div> </td> </tr>
    <tr >
        <td width="388" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net increase in net assets resulting from operations</font></p> </td>
        <td width="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,726,253</font></p> </div> </td>
        <td width="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>12,180,990</font></p> </div> </td> </tr>
    <tr >
        <td width="388" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Dividends and distributions to shareholders from:</font></b></p> </td>
        <td width="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="388" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net investment income</font></p> </td>
        <td width="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(1,297,949)</font></p> </td>
        <td width="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:20.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(813,340)</font></p> </td> </tr>
    <tr >
        <td width="388" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>From capital stock transactions:</font></b></p> </td>
        <td width="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="388" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Sale of capital stock resulting from:</font></p> </td>
        <td width="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="388" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Reinvestment of dividends</font></p> </td>
        <td width="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:30.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>84,221</font></p> </div> </td>
        <td width="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:41.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5,890</font></p> </div> </td> </tr>
    <tr >
        <td width="388" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net increase in net assets</font></p> </td>
        <td width="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:24.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>512,525</font></p> </div> </td>
        <td width="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>11,373,540</font></p> </div> </td> </tr>
    <tr >
        <td width="388" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Net assets:</font></b></p> </td>
        <td width="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="388" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Beginning of year</font></p> </td>
        <td width="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>123,778,935</font></p> </div> </td>
        <td width="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>112,405,395</font></p> </div> </td> </tr>
    <tr >
        <td width="388" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>End of year (including accumulated net investment loss and undistributed net investment income of $(398,186) and $368,048, respectively)</font></p> </td>
        <td width="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:3.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$124,291,460</font></p> </div> </td>
        <td width="126" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:11.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$123,778,935</font></p> </div> </td> </tr></table>
</div>

<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;'>See accompanying notes to financial statements.</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>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;'><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></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;'>
</p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>Notes to Financial Statements</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>Organization and Significant Accounting Policies</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>The Japan Equity Fund, Inc. (the &#147;</font><u><font size=2>Fund</font></u><font size=2>&#148;) was incorporated in Maryland on July&nbsp;12, 1990 under its former name &#147;</font><u><font size=2>The Japan Emerging Equity Fund, Inc.</font></u><font size=2>&#148; and commenced operations on July&nbsp;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-align:justify;'><font size=2>The following significant accounting policies are in conformity with accounting principles generally accepted 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-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;</font><u><font size=2>Board</font></u><font size=2>&#148;) may prescribe.  Short-term investments having a maturity of 60&nbsp;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-align:justify;'><i><font size=2>Foreign Currency Translation</font></i><font size=2>&#151;The books and records of the Fund are maintained in U.S. dollars as follows:  (1)&nbsp;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)&nbsp;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-align:justify;'><i><font size=2>Tax Status</font></i><font size=2>&#151;The 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-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:12pt; margin-top:0pt;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:left;'><i><font size=2>Dividends and Distributions to Shareholders</font></i><font size=2>&#151;The 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, </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><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:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;'><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></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:left;'><b><font size=2>Notes to Financial Statements (continued)</font></b></p>

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

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><font size=2>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-align:justify;'><i><font size=2>New Accounting Pronouncement</font></i><font size=2>&#151;In July&nbsp;2006, Financial Accounting Standards Board Interpretation No.&nbsp;48, Accounting for Uncertainty in Income Taxes&#151;an interpretation of FASB Statement 109 (&#147;</font><U><font SIZE=2>FIN 48</font></U><font size=2>&#148;) was issued and is effective for fiscal years beginning after December&nbsp;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.  The Fund will adopt FIN 48 in the next fiscal year and does not currently anticipate a material impact to the Fund&#146;s financial statements.  The Fund will continue to monitor the Fund&#146;s tax positions prospectively for potential future impacts.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>In September 2006, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No.&nbsp;157, Fair Value Measurements (&#147;</font><U><font SIZE=2>FAS 157</font></U><font size=2>&#148;).  FAS 157 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.  FAS 157 applies to reporting periods beginning after November&nbsp;15, 2007.  The adoption of FAS 157 is not expected to have a material impact on the Fund&#146;s financial statements.</font></p>

<p style=' margin-bottom:12pt; 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-align:justify;'><font size=2>The Fund has an Investment Management Agreement with Daiwa SB Investments (U.S.A.) Ltd. (the &#147;</font><u><font size=2>Manager</font></u><font size=2>&#148;).  Daiwa SB Investments Ltd. (&#147;</font><U><font SIZE=2>DSBI</font></U><font size=2>&#148; or the &#147;</font><u><font size=2>Adviser</font></u><font size=2>&#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&nbsp;million and 0.20% of the excess over $50&nbsp;million of the Fund&#146;s average weekly net assets, of which 60% of this fee 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.  For the year ended October&nbsp;31, 2007, no out-of-pocket expenses were paid to the Manager or Adviser.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>At October&nbsp;31, 2007, the Fund owed $33,082 to the Manager.</font></p>

<p style=' margin-bottom:12pt; 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-align:justify;'><font size=2>Daiwa Securities Trust Company (&#147;</font><u><font size=2>DSTC&#148;</font></u><font size=2>), 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&nbsp;million of the Fund&#146;s average weekly net assets, 0.15% of the next $40&nbsp;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&nbsp;31, 2007, expenses of $10,951 were paid to the Administrator, representing reimbursement to the Administrator of costs relating to the attendance by its employees at meetings of the Fund&#146;s Board.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>The Board of Directors of the Fund has also approved the payment of the administrative compliance expense for the Fund in the amount of $75,000 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:left;'><font size=2>DSTC also acts as custodian for the Fund&#146;s assets and has appointed Sumitomo Mitsui Banking Corporation (the &#147;</font><u><font size=2>Sub-Custodian</font></u><font size=2>&#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 </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><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:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;'><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></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:left;'><b><font size=2>Notes to Financial Statements (continued)</font></b></p>

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

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><font size=2>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&nbsp;31, 2007, DSTC and the Sub-Custodian earned $65,426 and $98,500, respectively, as compensation for custodial service to the Fund.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>At October&nbsp;31, 2007, the Fund owed $17,390, $6,250 and $5,512 to DSTC for administration, compliance and custodian fees, respectively, excluding fees and expenses of $3,988 payable to the Sub-Custodian.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>During the year ended October&nbsp;31, 2007, the Fund paid or accrued $40,809 for legal services in connection with the Fund&#146;s ongoing operations to a law firm of which the Fund&#146;s Assistant Secretary is a consultant.</font></p>

<p style=' margin-bottom:12pt; 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-align:justify;'><font size=2>For federal income tax purposes, the cost of securities owned at October&nbsp;31, 2007 was $106,170,954, excluding short-term interest bearing investments.  At October&nbsp;31, 2007, the net unrealized appreciation of investments for federal income tax purposes, excluding short-term securities, of $16,738,296 was composed of gross appreciation of $20,347,052 for those investments having an excess of value over cost, and gross depreciation of $3,608,756 for those investments having an excess of cost over value.  For the year ended October&nbsp;31, 2007, total aggregate purchases and sales of portfolio securities, excluding short-term securities, were $76,672,178 and $77,207,801, respectively.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>In order to present undistributed net investment income and accumulated net realized loss 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-align:justify;'><font size=2>For the year ended October&nbsp;31, 2007, the adjustments were to decrease accumulated net investment loss by $279,369, decrease accumulated net realized loss on investments by $13,650 and decrease paid-in capital in excess of par value by $293,019 primarily relating to the reclassification of realized foreign currency losses and net operating losses.  Net assets were not affected by this change.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;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&nbsp;31, 2007, the components of accumulated earnings (deficit) on a tax basis were as follows:</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="638" style='border-collapse:collapse'>
    <tr >
        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Accumulated Net Realized Loss</font></b></p>  </div>  </td>
        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Unrealized Appreciation/Depreciation</font></b></p>  </div>  </td> </tr>
    <tr >
        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:1.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$17,908,676</font></p> </td>
        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:1.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$16,734,409</font></p> </td> </tr></table>
</div>

<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>During the current fiscal year, the Fund utilized capital loss carryforwards of $7,054,688.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>At October&nbsp;31, 2007, the Fund had a remaining capital loss carryover of $17,908,676, of which $12,645,344 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:12pt; margin-top:0pt;text-align:justify;'><font size=2>The tax character of the distributions paid during the fiscal year ended October&nbsp;31, 2007 was from ordinary income.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>As of October&nbsp;31, 2007, the Fund had no distributable earnings.</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>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;'><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></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>Capital Stock</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>There are 30,000,000 shares of $.01 par value common stock authorized.  During the year ended October&nbsp;31, 2007, 9,955 shares were issued as a result of the reinvestment of dividends paid to those shareholders electing to reinvest dividends.  Of the 14,431,605 shares of the Fund outstanding at October&nbsp;31, 2007, Daiwa Securities America Inc., an affiliate of the Manager, Adviser and DSTC, owned 14,790 shares.</font></p>

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

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


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="638" style='border-collapse:collapse; '>
    <tr >
        <td width="263" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>  </td>
        <td  colspan="5" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the Years Ended October</font></b><font  size=2>&nbsp;</font><b><font  size=2>31,</font></b></p>  </div>  </td> </tr>
    <tr >
        <td width="263" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p>  </div>  </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p>  </div>  </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2005</font></b></p>  </div>  </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2004</font></b></p>  </div>  </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2003</font></b></p>  </div>  </td> </tr>
    <tr >
        <td width="263" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net asset value, beginning of year</font>                                         </p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$8.58</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$7.79</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$6.24</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:10.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$6.00</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$4.54</font></p> </td> </tr>
    <tr >
        <td width="263" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net investment income (loss)</font>                     </p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.02</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.01</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#151;<sup>*</sup></font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#151;<sup>*</sup></font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(0.02)</font></p> </td> </tr>
    <tr >
        <td width="263" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net realized and unrealized gains on investments and foreign currency transactions</font>            </p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.10</font></p> </div> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:14.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.83</font></p> </div> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.55</font></p> </div> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.39</font></p> </div> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:12.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.48</font></p> </div> </td> </tr>
    <tr >
        <td width="263" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net increase in net asset value resulting from operations</font>                                      </p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.12</font></p> </div> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:14.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.84</font></p> </div> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:18.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.55</font></p> </div> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.39</font></p> </div> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:12.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.46</font></p> </div> </td> </tr>
    <tr >
        <td width="263" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Less: dividends and distributions to shareholders Net investment income</font>             </p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:15.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(0.09)</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:10.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(0.05)</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#151;</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#151;</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#151;</font></p> </td> </tr>
    <tr >
        <td width="263" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Dilutive effect of rights offering</font>      </p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#151;</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#151;</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#151;</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(0.12)</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#151;</font></p> </td> </tr>
    <tr >
        <td width="263" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Offering costs charged to paid-in capital in excess of par value</font>  </p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#151;</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#151;</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#151;</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(0.03)</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#151;</font></p> </td> </tr>
    <tr >
        <td width="263" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net asset value, end of year</font>                           </p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:13.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$8.61</font></p> </div> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:9.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$8.58</font></p> </div> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:13.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$7.79</font></p> </div> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:10.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$6.24</font></p> </div> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$6.00</font></p> </div> </td> </tr>
    <tr >
        <td width="263" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Per share market value, end of year</font>                             </p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:13.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$7.97</font></p> </div> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:9.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$8.14</font></p> </div> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:13.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$8.51</font></p> </div> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:10.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$6.08</font></p> </div> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:7.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$7.16</font></p> </div> </td> </tr>
    <tr >
        <td width="263" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total investment return:</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="263" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Based on market price at beginning and end of year, assuming reinvestment of dividends<sup>&#134;</sup></font>     </p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(1.05)%</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(3.68)%</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:11.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>39.97%</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:3.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(11.70)%</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:11.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>72.53%</font></p> </td> </tr>
    <tr >
        <td width="263" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Based on net asset value at beginning and end of year, assuming reinvestment of dividends<sup>&#134;</sup></font>     </p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.42%</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>10.91%</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:11.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>24.84%</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>5.74%</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:11.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>32.16%</font></p> </td> </tr>
    <tr >
        <td width="263" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Ratios and supplemental data:</font>                  </p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="263" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net assets, end of year (in millions)</font>                                 </p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$124.3</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$123.8</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$112.4</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:21.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$90.0</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:21.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$64.9</font></p> </td> </tr>
    <tr >
        <td width="263" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Ratios to average net assets of:</font>        </p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="263" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Expenses</font>                                        </p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.95%</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.94%</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.07%</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.12%</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.50%</font></p> </td> </tr>
    <tr >
        <td width="263" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net investment income (loss)</font>                     </p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.20%</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.12%</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>0.07%</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(0.06)%</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(0.48)%</font></p> </td> </tr>
    <tr >
        <td width="263" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Portfolio turnover</font>                                         </p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:11.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>61.22%</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>59.36%</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:11.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>72.35%</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:10.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>90.03%</font></p> </td>
        <td width="75" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:11.25pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>84.00%</font></p> </td> </tr></table>
</div>

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


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        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#134;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>For the year ended October&nbsp;31, 2004, the total investment return includes the benefit of shares resulting from the exercise of rights.</font></p> </td> </tr></table>
</div>



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    <tr >
        <td width="24" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Represents less than $0.005 per share.</font></p> </td> </tr></table>
</div>


<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>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;'><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></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; margin-left:0.25in; text-indent:-0.25in;text-align:justify;'>
</p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;border-top:solid 0.5pt;padding-top:1;border-bottom:solid 0.5pt;padding-bottom:1;'><b><font size=2>Report of Independent Registered Public Accounting Firm</font></b></p>

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

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

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

<p style=' margin-bottom:12pt; margin-top:0pt;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;</font><u><font size=2>Fund</font></u><font size=2>&#148;) at October&nbsp;31, 2007, 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;</font><u><font size=2>financial statements</font></u><font size=2>&#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&nbsp;31, 2007 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.</font></p>

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

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

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><font size=2>December&nbsp;18, 2007</font></p>

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

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>The Fund is required by Subchapter&nbsp;M of the Internal Revenue Code of 1986, as amended, to advise you within 60&nbsp;days of the Fund&#146;s fiscal year end (October&nbsp;31, 2007) 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-align:justify;'><font size=2>On December&nbsp;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&nbsp;27, 2006, to shareholders of record at the close of business on December&nbsp;18, 2006.  The ex-dividend date was December&nbsp;14, 2006.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>There is no foreign tax deduction or credit available to shareholders for calendar year 2007.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;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>23</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;border-bottom:solid 0.5pt;padding-bottom:1;'><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></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;border-top:solid 0.5pt;padding-top:1;border-bottom:solid 0.5pt;padding-bottom:1;'>
<b><font size=2>Information Concerning Directors and Officers (unaudited)</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;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&nbsp;I Directors, 2010 for Class&nbsp;II Directors and 2008 for Class&nbsp;III Directors, or until their successors are duly elected and qualified.</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="639" style='border-collapse:collapse'>
    <tr style='page-break-inside:avoid'>
        <td width="122" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><b><font size=2>Name (Age) and Address of Directors/</font></b><br>  <b><font size=2>Officers</font></b></p>  </div>  </td>
        <td width="283" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:6.0pt'><b><font size=2>Principal Occupation or Employment During  Past Five Years and Directorships in Publicly Held Companies</font></b></p>  </div>  </td>
        <td width="146" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:6.0pt'><b><font size=2>Director or Officer of Fund Since</font></b></p>  </div>  </td>
        <td width="88" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:6.0pt'><b><font size=2>Number of Funds in Fund Complex for Which  Director Serves <sup>(1)</sup></font></b></p>  </div>  </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="122" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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>  </td>
        <td width="283" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="146" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="88" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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 style='page-break-inside:avoid'>
        <td width="122" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Austin C. Dowling (75)</font><br> <font size=2>672 Medford Leas Medford,</font><br> <font SIZE=2>NJ 08055</font></p> </td>
        <td width="283" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="146" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Class III Director since 1992</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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 style='page-break-inside:avoid'>
        <td width="122" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Martin J. Gruber (70) 229 South Irving Street Ridgewood, NJ 07450</font></p> </td>
        <td width="283" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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 Thai Capital Fund, Inc., since 2000; Director, The Singapore Fund, Inc., since 2000; Trustee, DWS Scudder Mutual Funds, since 1992; Trustee, C.R.E.F., from 2001 to 2005 and Chairman from December&nbsp;2003 to 2005; Director, National Bureau of Economic Research, since August 2005.</font></p> </td>
        <td width="146" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Class I Director since 1992</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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 style='page-break-inside:avoid'>
        <td width="122" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>David G. Harmer (64)</font><br> <font size=2>4337 Bobwhite Court Ogden, UT 84403</font></p> </td>
        <td width="283" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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&nbsp;2005; Public Services Department Director, City of Ogden, from February&nbsp;2005 to July&nbsp;2005; Executive Director, Department of Community and Economic Development for the State of Utah, from May 2002 to January 2005; Chairman, 2K2 Hosting Corporation, from April 2001 to April 2002; Director, The Thai Capital Fund, Inc., since 2000; Director, The Singapore Fund, Inc., since 1996.</font></p> </td>
        <td width="146" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Class II Director since 1997</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-top:solid 0.5pt;padding-top:1;border-bottom:solid 0.5pt;padding-bottom:1;'><font size=2>&nbsp;</font></p>

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

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

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:justify;border-top:solid 0.5pt;padding-top:1;border-bottom:solid 0.5pt;padding-bottom:1;'><b><font size=2>Information Concerning Directors and Officers (unaudited) (continued)</font></b></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="639" style='border-collapse:collapse'>
    <tr style='page-break-inside:avoid'>
        <td width="122" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><b><font size=2>Name (Age) and Address of Directors/</font></b><br>  <b><font size=2>Officers</font></b></p>  </div>  </td>
        <td width="283" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:6.0pt'><b><font size=2>Principal Occupation or Employment During  Past Five Years and Directorships in Publicly Held Companies</font></b></p>  </div>  </td>
        <td width="146" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:6.0pt'><b><font size=2>Director or Officer of Fund Since</font></b></p>  </div>  </td>
        <td width="88" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:6.0pt'><b><font size=2>Number of Funds in Fund Complex for Which  Director Serves <sup>(1)</sup></font></b></p>  </div>  </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="122" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Richard J. Herring (61)</font><br> <font size=2>327 South Roberts Road Bryn Mawr, PA 19010</font></p> </td>
        <td width="283" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Jacob Safra Professor of International Banking and Professor, Finance Department, The Wharton School, University of Pennsylvania, since 1972; Co-Director, Wharton Financial Institutions Center, since 2000; Director, Lauder Institute of International Management Studies, from 2000 to 2006; Director, The Thai Capital Fund, Inc., since 2007; Director, The Sinagpore Fund, Inc., since 2007; Trustee, DWS Scudder Mutual Funds, since 1990.</font></p> </td>
        <td width="146" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Class III Director since 2007</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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 style='page-break-inside:avoid'>
        <td width="122" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>*Hiroshi Kimura (54)</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>One Evertrust Plaza Jersey City,</font><br> <font SIZE=2>NJ 07302-3051</font></p> </td>
        <td width="283" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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&nbsp;2001.</font></p> </td>
        <td width="146" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Chairman of the Board and Class I Director since 2001</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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 style='page-break-inside:avoid'>
        <td width="122" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Rahn K. Porter (53)</font><br> <font size=2>944 East Rim Road Franktown, CO 80116</font></p> </td>
        <td width="283" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Senior Vice President of Investor Relations, Qwest Communications International Inc., since September 2007; Vice President of Finance, Qwest Communications International Inc., from March 2003 to September 2007; Director, BlackRidge Financial, Inc. (bank holding company), since November 2004; Principal, RPSS Enterprises (financial consulting company), from January 2002 to February&nbsp;2003; Chief Financial Officer, Telenet, Inc. (Belgian communications company) from 2001 to 2002; Director, Community First Bank Shares, from 2001 to 2004; Director, The Thai Capital Fund, Inc., since 2007; Director, The Japan Equity Fund, Inc., since 2007.</font></p> </td>
        <td width="146" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Class II Director since 2007</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="122" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Hideo Tanaka (58)</font><br> <font size=2>32 Old Slip New York,</font><br> <font SIZE=2>NY 10005</font></p> </td>
        <td width="283" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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> </td>
        <td width="146" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>President of the Fund since December&nbsp;2006</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-top:solid 0.5pt;padding-top:1;border-bottom:solid 0.5pt;padding-bottom:1;'><font size=2>&nbsp;</font></p>

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

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

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:justify;border-top:solid 0.5pt;padding-top:1;border-bottom:solid 0.5pt;padding-bottom:1;'><b><font size=2>Information Concerning Directors and Officers (unaudited) (concluded)</font></b></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="639" style='border-collapse:collapse'>
    <tr style='page-break-inside:avoid'>
        <td width="122" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><b><font size=2>Name (Age) and Address of Directors/</font></b><br>  <b><font size=2>Officers</font></b></p>  </div>  </td>
        <td width="283" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:6.0pt'><b><font size=2>Principal Occupation or Employment During  Past Five Years and Directorships in Publicly Held Companies</font></b></p>  </div>  </td>
        <td width="146" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:6.0pt'><b><font size=2>Director or Officer of Fund Since</font></b></p>  </div>  </td>
        <td width="88" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:6.0pt'><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="122" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="283" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="146" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="88" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="122" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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 (48)</font><br> <font size=2>One Evertrust Plaza Jersey City,</font><br> <font SIZE=2>NJ 07302-3051</font></p> </td>
        <td width="283" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Vice President, Fund Accounting Department of Daiwa Securities Trust Company, since 2000; Vice President and Treasurer, The Thai Capital Fund, Inc. and The Singapore Fund, Inc., since 2000.</font></p> </td>
        <td width="146" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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 of the Fund since 2000</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="122" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Yuko Tatezawa (29)</font><br> <font size=2>One Evertrust Plaza Jersey City,</font><br> <font SIZE=2>NJ 07302-3051</font></p> </td>
        <td width="283" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Client Reporting Department of Daiwa Securities Trust Company, since 2002; Secretary, The Thai Capital Fund, Inc. and The Singapore Fund, Inc., since 2004.</font></p> </td>
        <td width="146" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Secretary of the Fund since 2004</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="122" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Anthony Cambria (53)</font><br> <font size=2>One Evertrust Plaza Jersey City, NJ 07302-3051</font></p> </td>
        <td width="283" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Director and Executive Vice President, Daiwa Securities Trust Company, since 1999; Chief Compliance Officer, The Thai Capital Fund, Inc. and The Singapore Fund, Inc., since 2004.</font></p> </td>
        <td width="146" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Chief Compliance Officer of the Fund since 2004</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="122" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Leonard B. Mackey, Jr. (56)</font><br> <font size=2>31 West 52nd Street New York,</font><br> <font SIZE=2>NY 10019-6131</font></p> </td>
        <td width="283" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Consultant since 2007 and Partner from 1983 to 2007 in the law firm of Clifford Chance US LLP; Assistant Secretary, The Thai Capital Fund, Inc. and The Singapore Fund, Inc., since 2004.</font></p> </td>
        <td width="146" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt'><font size=2>Assistant Secretary of the Fund since 2004</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>_______________</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>1</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#147;</font><u><font size=2>Fund Complex</font></u><font size=2>&#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., 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>
</div>



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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>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Director so noted is deemed by the Fund&#146;s counsel to be an &#147;interested person&#148; (as defined in the U.S. Investment Company Act of 1940, as amended). Mr.&nbsp;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>
</div>


<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>Board Consideration and Approval of Investment Advisory and Management Agreements (unaudited)</font></b></p>

<p style=' margin-bottom:12pt; 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-align:justify;'><font size=2>At a meeting (the &#147;</font><u><font size=2>Meeting</font></u><font size=2>&#148;) of the Board of Directors of The Japan Equity Fund, Inc. held on June&nbsp;4, 2007, the Board reviewed and considered the nature and extent of the investment advisory services provided by Daiwa SB Investments Ltd. (the &#147;</font><u><font size=2>Investment Adviser</font></u><font size=2>&#148;) under the Advisory Agreement and Daiwa SB Investments (USA) Ltd. (the &#147;</font><u><font size=2>Manager</font></u><font size=2>&#148; and, together with the Investment Adviser, the &#147;</font><u><font size=2>Advisers</font></u><font size=2>&#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 </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>26</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;border-bottom:solid 0.5pt;padding-bottom:1;'><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></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>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:12pt; 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-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:12pt; 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-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;</font><u><font size=2>advisory fee</font></u><font size=2>&#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 equity accounts for non-Japanese investors 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:12pt; 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:12pt; margin-top:0pt;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 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:12pt; 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-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:12pt; 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-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 </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>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;'><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></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>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:12pt; 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-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:12pt; 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-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:12pt; 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-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:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>General Conclusion</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;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:center;'><font size=2>28</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;border-bottom:solid 0.5pt;padding-bottom:1;'><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></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;'>
</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: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>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="600" style='border-collapse:collapse'>
    <tr >
        <td width="331" valign=top style='border-top:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>BOARD OF DIRECTORS</font></p> </td>
        <td width="307" valign=top style='padding:0in 5.4pt 0in 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 black 1.0pt; padding:0in 5.4pt 0in 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>Richard J. Herring</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Rahn K. Porter</font></p> </td>
        <td width="307" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:12.0pt'><b><font size=2>Annual Report</font></b></p>
<p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:12.0pt'><b><font size=2>October 31, 2007</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><img src="img2.jpg"><br> </p> </td> </tr>
    <tr style='height:144.55pt'>
        <td width="331" valign=top style='border-bottom: solid black 1.0pt;padding: 0in 5.4pt 0in 5.4pt;height:144.55pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>OFFICERS</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></p> </td>
        <td width="307" rowspan=2 style='padding:0in 5.4pt 0in 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="img3.gif"><br> </p> </td> </tr>
    <tr style='height:55.6pt'>
        <td width="331" valign=top style='border-bottom: solid black 1.0pt;padding: 0in 5.4pt 0in 5.4pt;height:55.6pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>ADDRESS OF THE FUND</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 black 1.0pt;padding: 0in 5.4pt 0in 5.4pt;height:169.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>INVESTMENT MANAGER</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 SIZE=2>INVESTMENT ADVISER</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 SIZE=2>ADMINISTRATOR AND CUSTODIAN</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 SIZE=2>TRANSFER AGENT AND REGISTRAR</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 SIZE=2>LEGAL COUNSEL</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 SIZE=2>INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</font><br> <font size=2>PricewaterhouseCoopers LLP</font></p> </td>
        <td width="307" rowspan=2 valign=top style='padding:0in 5.4pt 0in 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="img4.jpg"><br> </p>
<p style='margin-left:18.65pt;text-indent:3.0pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><font size=2>&nbsp;</font></p>
<p style='margin-left:18.65pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></p>
<p style='margin-left:18.65pt;text-indent:2.25pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><font size=2>&nbsp;</font></p>
<p style='margin-left:18.65pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><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 SIZE=2>INVESTMENT MANAGER</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:0in'><font SIZE=2>INVESTMENT ADVISER</font><br> <font size=2>Daiwa SB Investments Ltd.</font></p> </td> </tr>
    <tr >
        <td width="331" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <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>
        <td width="307" valign=top style='padding:0in 5.4pt 0in 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></table>
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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;'>
</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>
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<p style=' margin-bottom:0pt; 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>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <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&nbsp;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>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <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>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <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>
</div>



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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:0in 0in 12.0pt 0in'>
            <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>
</div>



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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:0in 0in 12.0pt 0in'>
            <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" nowrap valign=top style='padding:0in 0in 12.0pt 0in; '>
            <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" nowrap valign=top style='padding:0in 0in 12.0pt 0in; '>
            <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&nbsp;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:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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>
</div>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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>
</div>


<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 Rahn K. Porter 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:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>
        <td width="120" valign=top style='padding:0in 5.4pt 0in 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:0in 5.4pt 0in 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 width="48" valign=top style='padding:0in 5.4pt 0in 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:0in 5.4pt 0in 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:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Registrant</font></b></p> </td>
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Covered Entities<sup>(1)</sup></font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="48" valign=top style='padding:0in 5.4pt 0in 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:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Audit Fees</font>                                </p> </td>
        <td width="120" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$76,000</font></p> </td>
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>N/A</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="48" valign=top style='padding:0in 5.4pt 0in 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:0in 5.4pt 0in 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:0in 5.4pt 0in 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:0in 5.4pt 0in 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 width="48" valign=top style='padding:0in 5.4pt 0in 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:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Non-Audit Fees</font></p> </td>
        <td width="120" valign=top style='padding:0in 5.4pt 0in 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:0in 5.4pt 0in 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 width="48" valign=top style='padding:0in 5.4pt 0in 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:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:30.6pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Audit-Related Fees</font>                                     </p> </td>
        <td width="120" valign=top style='padding:0in 5.4pt 0in 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:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$0</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="48" valign=top style='padding:0in 5.4pt 0in 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:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:30.6pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Tax Fees</font>                                                </p> </td>
        <td width="120" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2><sup>(2)&nbsp;</sup>$10,150</font></p> </td>
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$0</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="48" valign=top style='padding:0in 5.4pt 0in 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:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:30.6pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>All Other Fees</font>                </p> </td>
        <td width="120" valign=top style='padding:0in 5.4pt 0in 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:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$0</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="48" valign=top style='padding:0in 5.4pt 0in 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:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Total Non-Audit Fees</font>                </p> </td>
        <td width="120" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$10,150</font></p> </td>
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$0</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="48" valign=top style='padding:0in 5.4pt 0in 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:0in 5.4pt 0in 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:0in 5.4pt 0in 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:0in 5.4pt 0in 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 width="48" valign=top style='padding:0in 5.4pt 0in 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:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Total</font>                  </p> </td>
        <td width="120" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$86,150</font></p> </td>
        <td width="156" valign=top style='padding:0in 5.4pt 0in 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 width="48" valign=top style='padding:0in 5.4pt 0in 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:0in 5.4pt 0in 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:0in 5.4pt 0in 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:0in 5.4pt 0in 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 width="48" valign=top style='padding:0in 5.4pt 0in 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:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>
        <td width="120" valign=top style='padding:0in 5.4pt 0in 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:0in 5.4pt 0in 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 width="48" valign=top style='padding:0in 5.4pt 0in 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:0in 5.4pt 0in 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:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Registrant</font></b></p> </td>
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Covered Entities<sup>(1)</sup></font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="48" valign=top style='padding:0in 5.4pt 0in 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:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Audit Fees</font>                                </p> </td>
        <td width="120" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$74,700</font></p> </td>
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>N/A</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="48" valign=top style='padding:0in 5.4pt 0in 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:0in 5.4pt 0in 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:0in 5.4pt 0in 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:0in 5.4pt 0in 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 width="48" valign=top style='padding:0in 5.4pt 0in 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:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Non-Audit Fees</font></p> </td>
        <td width="120" valign=top style='padding:0in 5.4pt 0in 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:0in 5.4pt 0in 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 width="48" valign=top style='padding:0in 5.4pt 0in 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:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:30.6pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Audit-Related Fees</font>                                     </p> </td>
        <td width="120" valign=top style='padding:0in 5.4pt 0in 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:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$0</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="48" valign=top style='padding:0in 5.4pt 0in 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:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:30.6pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Tax Fees</font>                                                </p> </td>
        <td width="120" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2><sup>(2)&nbsp;</sup>$9,400</font></p> </td>
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$0</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="48" valign=top style='padding:0in 5.4pt 0in 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:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:30.6pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>All Other Fees</font></p> </td>
        <td width="120" valign=top style='padding:0in 5.4pt 0in 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:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$0</font></p> </td> </tr></table>
</div>

<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>31</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>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="595" style='border-collapse:collapse'>
    <tr style='page-break-inside:avoid; '>
        <td  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:0in 5.4pt 0in 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:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Total Non-Audit Fees</font>                </p> </td>
        <td width="120" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$9,400</font></p> </td>
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$0</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td  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:0in 5.4pt 0in 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:0in 5.4pt 0in 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:0in 5.4pt 0in 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:0in 5.4pt 0in 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  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:0in 5.4pt 0in 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:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Total</font>                  </p> </td>
        <td width="120" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$84,100</font></p> </td>
        <td width="156" valign=top style='padding:0in 5.4pt 0in 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  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:0in 5.4pt 0in 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:0in 5.4pt 0in 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:0in 5.4pt 0in 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:0in 5.4pt 0in 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  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:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:3.0pt'><font size=2>_____________________</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td  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:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;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  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:0in 5.4pt 0in 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  colspan="5" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:justify;margin-top:0in;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 style='page-break-inside:avoid'>
        <td  colspan="5" valign=top style='padding:0in 5.4pt 0in 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 style='page-break-inside:avoid'>
        <td  colspan="5" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:justify;margin-top:0in;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 style='page-break-inside:avoid'>
        <td  colspan="5" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:justify;margin-top:0in;margin-bottom:3.0pt'><font size=1>&nbsp;</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>
            </div>



<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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>
</div>



<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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>
</div>



<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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>
</div>



<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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>
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<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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>
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<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&nbsp;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, Richard J. Herring and Rahn K. Porter.</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></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 adviser to determine how to vote proxies relating to the registrant&#146;s portfolio securities, including the </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:12pt; margin-top:0pt;text-align:justify;'><font size=2>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&nbsp;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:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Mr. Naoto Nagai, CFA is a Senior Portfolio Manager, with a total of 11 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 responsibilities for the Fund effective October&nbsp;18, 2006.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;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&nbsp;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:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Other Accounts Managed by the Portfolio Manager.  As of October&nbsp;31, 2007, Mr. Nagai managed two mutual funds with a total of $777 million in assets; no other pooled investment vehicles nor other accounts were managed by Mr. Nagai.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;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:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Securities Ownership of Portfolio Managers.  As of October&nbsp;31, 2007, Mr. Nagai did not beneficially owned any securities in the Fund.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;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:12pt; margin-top:0pt; text-indent:0.5in;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: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: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>
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<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: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:0in 0in 12.0pt 0in'>
            <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>
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            <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>
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<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>
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            <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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            <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:0in 0in 12.0pt 0in'>
            <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&nbsp;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:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Proxy Voting Guidelines for the registrant and its adviser.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'>
</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>
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<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:0.5in;text-align:left;'><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:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>The Japan Equity Fund, Inc.</font></p>

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


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        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>By</font></p> </td>
        <td width="133" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>\s\ John J. O&#146;Keefe</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>-----------------------------------</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><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:12pt; margin-top:0pt;text-align:justify;'><font size=2>Date:  December&nbsp;31, 2007</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:left;margin-top:0pt;margin-bottom:0pt'><font size=2>By  </font></p> </td>
        <td width="133" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>\s\ John J. O&#146;Keefe</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>-----------------------------------</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><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:12pt; margin-top:0pt;text-align:justify;'><font size=2>Date:  December&nbsp;31, 2007</font></p>


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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>
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>By  </font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>\s\ Hiroshi Kimura</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>-----------------------------------</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><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:12pt; margin-top:0pt;text-align:justify;'><font size=2>Date:  December&nbsp;31, 2007</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>
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<p style=' margin-bottom:12pt; 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>CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND SENIOR FINANCIAL</B></U></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><U><B>OFFICERS</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>
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            <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:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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>
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<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>
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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>Covered Officers Should Handle Ethically Actual and Apparent Conflicts of Interest</font></b></p> </td> </tr></table>
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<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 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: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>
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<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: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:12pt'><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=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>
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<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: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>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: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>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:12pt'><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=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>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>
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<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, </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>
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<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>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>
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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>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: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>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:.0001pt'><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=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>Each Covered Officer should not knowingly misrepresent, or cause others to </font></p> </td> </tr></table>
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<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:1in;text-align:justify;'><font size=2>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>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><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=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>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:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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>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>
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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>Reporting and Accountability</font></b></p> </td> </tr></table>
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<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: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>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:12pt'><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=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>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:12pt'><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=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>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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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><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=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>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>
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<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>


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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>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-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>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><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=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>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:12pt'><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=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>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:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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>
</div>



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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:0in 0in 12.0pt 0in'>
            <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>
</div>


<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:0in 0in 12.0pt 0in'>
            <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>
</div>


<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&nbsp;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:0in 0in 12.0pt 0in'>
            <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>
</div>


<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:0in 0in 12.0pt 0in'>
            <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>
</div>


<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>


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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:0in 0in 12.0pt 0in'>
            <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>
</div>


<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: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>
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<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:12pt; 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:center;'><font size=2>40</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: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>CERTIFICATION</B></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B>PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002</B></p>

<p style=' margin-bottom:12pt; margin-top:0pt;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:0pt'><font size=2>1.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <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>
</div>



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            <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:0in 0in 12.0pt 0in'>
            <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>
</div>



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            <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:0in 0in 12.0pt 0in'>
            <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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        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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>
</div>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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>
</div>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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>
</div>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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:0pt'><font size=2>5.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <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>
</div>


<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>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>Date:  December&nbsp;31, 2007</font></p>

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><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:center;'><font size=2>42</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:center;'>
<B>CERTIFICATION</B></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B>PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002</B></p>

<p style=' margin-bottom:12pt; margin-top:0pt;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:0pt'><font size=2>1.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <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>
</div>



<div align=left>

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        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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>
</div>



<div align=left>

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        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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>
</div>



<div align=left>

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    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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>
</div>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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>
</div>



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        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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>
</div>



<div align=left>

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        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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>
</div>



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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
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        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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>
</div>



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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
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        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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>
</div>


<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>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>Date:  December&nbsp;31, 2007</font></p>

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><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:center;'><font size=2>44</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:center;'>
<B>CERTIFICATION</B></p>

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

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B>OF THE SARBANES-OXLEY ACT OF 2002</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&nbsp;31, 2007 as filed with the Securities and Exchange Commission, hereby certifies, pursuant to 18 U.S.C. Section&nbsp;1350, as adopted pursuant to Section&nbsp;906 of the Sarbanes-Oxley Act of 2002, that:</font></p>


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        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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&nbsp;13(a) or 15(d) of the Securities Exchange Act of 1934; and</font></p> </td> </tr></table>
</div>



<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>Dated:  December&nbsp;31, 2007</font></p>

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

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;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>This certification is being furnished solely pursuant to 18 U.S.C. Section&nbsp;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>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'>
<B>CERTIFICATION</B></p>

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

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B>OF THE SARBANES-OXLEY ACT OF 2002</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&nbsp;31, 2007 as filed with the Securities and Exchange Commission, hereby certifies, pursuant to 18 U.S.C. Section&nbsp;1350, as adopted pursuant to Section&nbsp;906 of the Sarbanes-Oxley Act of 2002, that:</font></p>


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        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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&nbsp;13(a) or 15(d) of the Securities Exchange Act of 1934; and</font></p> </td> </tr></table>
</div>



<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>Dated:  December&nbsp;31, 2007</font></p>

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

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;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>This certification is being furnished solely pursuant to 18 U.S.C. Section&nbsp;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>46</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:12pt; 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>The Japan Equity Fund, Inc.</b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><b>Proxy Voting Policy and Procedures</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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        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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>
</div>


<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:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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>
</div>


<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:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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>
</div>


<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:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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>
</div>



<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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</font></p> </td> </tr></table>
</div>


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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2><sup>1&nbsp;</sup>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>&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; margin-left:1in;text-align:justify;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:1in;text-align:justify;'><font size=2>indicating the nature of the conflict of interest and how that conflict was resolved with respect to the voting of the proxy.</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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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            <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:0in 0in 12.0pt 0in'>
            <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>
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<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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            <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:0in 0in 12.0pt 0in'>
            <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>
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<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&nbsp;30 on Form N-PX not later than August 31 of each year.<sup>2</sup></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:0in 0in 12.0pt 0in'>
            <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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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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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        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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>
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    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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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        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <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:0in 0in 12.0pt 0in'>
            <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&nbsp;30 is available without charge, upon request, by calling the Fund&#146;s toll-free</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

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

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

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:justify;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:1.5in;text-align:justify;'><font size=2>telephone number; or through a specified Internet address; or both; and on the SEC&#146;s website.</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:0in 0in 12.0pt 0in'>
            <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>
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<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>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>Adopted:  November 25, 2003</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>
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<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'>
<b>Proxy voting policy for Daiwa SB Investments (USA) Ltd.</b></p>

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

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><b>Voting Proxies</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 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: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>
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<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: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: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>
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<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><font size=2>Proxy Voting Record</font></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.&nbsp;212-612-8500, Fax No.&nbsp;212-612-8518/8519 or email y_uematsu@dsbiusa.net.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;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>52</font></p>

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