We did not initiate any new positions in the portfolio during the third quarter. We did, however, exit our long-held position in mining and construction equipment company Komatsu (TSE:6301). We expect sales momentum in its construction equipment business in China will likely weaken going forward due to the slower-than-expected progress of infrastructure projects. At the same time, profit margins for its mining equipment have improved substantially and we believe further improvements have already been priced in.
From Matthews Japan Fund (Trades, Portfolio) third-quarter 2018 shareholder commentary.
