We added Fancl (TSE:4921, Financial), a cosmetics and nutritional supplements manufacturer. The brand is mainly marketed through direct sales and mail order, and also sold in retail stores. Overseas sales are small but increasing, while tourist sales provide scope for growth. The coronavirus pandemic resulted in a large sell-off and provided an opportunity to buy the stock, which we previously viewed as richly valued. The company’s long-term growth outlook and margin expansion potential underpin our investment thesis.
From the T. Rowe Price Japan Fund (Trades, Portfolio)'s 2020 semi-annual shareholder letter.
