Baby-product company Pigeon (TSE:7956, Financial) also was a major detractor to performance for the fourth quarter and the full year. The company revised down its full-year guidance in December due to a decline in inbound sales and an unfavorable Japanese yen—Chinese renminbi exchange rate. We agree with the company's view of per-baby consumption driving growth in China, overcoming the birth-rate decline, but we continue to monitor and evaluate its execution abilities.
From Matthews Japan Fund (Trades, Portfolio)s' fourth-quarter 2019 commentary.
