The Hague – April 2020 – The Juno Selection Fund ended the first quarter of 2020 with a net asset value of €346.90 per participation, a decrease of -15.9% since the end of last year. Whereas the fund, which specializes in investments in European small and medium-sized (family-owned) companies, ended 2019 with an excellent result of +33.8%, it now also has to face the consequences of the COVID-19 virus.

Over the past quarter, the EMIX Smaller Europe Index lost -27.7% and the AEX (dividend reinvested) also fell sharply by -19.8%. Since its inception in January 2008, the Juno Selection Fund has shown an average performance of +10.7% net per annum. This means that the fund is still well ahead of the EMIX Smaller Europe Index, which achieved a compound annual net result of +3.5% over the same period.

The pandemic that is currently gripping the world has forced Juno’s portfolio managers to intervene rigorously in the portfolio in February and March. Frans Jurgens, director and co-founder of Juno: “It is not our expertise to make macroeconomic forecasts, but we strongly believe that once we put this pandemic behind us, it will leave us with a very deep scar in the economy. In our opinion, demand for services and products will not suddenly bounce back and we must also consider the very large government deficits and resulting tax measures. With that scenario in mind, we have concluded that some Juno companies are now suddenly lacking their usual predictable earnings growth, a cornerstone of our investment policy. We have rigorously reduced or completely sold those positions. Fortunately, there are also companies that are barely affected and even a few that will take advantage of the current circumstances. We were able to act on share price weakness and selectively increase the holding of those companies in our portfolio”.

Lennart Smits, director and co-founder of Juno: “The timely switch in the portfolio to cash has certainly helped us in this past period. But especially the low dependency on economic cycles, a core selection criterion at Juno, makes our companies less vulnerable. We also benefited from the healthy financial structures of our companies: where cash on the balance sheet still cost money a few months ago and caused derision from bankers, our (family-owned) companies now hold the trump cards. Juno will try to continue to make smart, selective and disciplined use of the high volatility in the markets to get the cash we hold in the portfolio today back to work”.

The quarterly report can be found here and the most recent factsheet here.

About Juno Investment Partners

Since 2007, Juno Investment Partners has been investing in a highly concentrated portfolio of European listed companies with predictable and stable earnings growth, often family-owned businesses.

We focus on companies with a high return on invested capital, strong margins, and highly predictable (free) cash flows. These are typically companies with a strong competitive position and clear added value for their clients, enabling them to continue creating value over the long term.

Based on these characteristics, we select a limited number of companies that we want to understand thoroughly. The portfolio consists of approximately fifteen companies. These are analyzed intensively, visited regularly, and monitored over several years. The investment horizon is long, typically well over five years. Our analysts and portfolio managers also invest in the funds themselves.

Juno offers three products. The Juno Selection Fund focuses on small and medium-sized companies. The Juno Continuation Fund focuses on medium-sized companies. In addition, Juno offers individual asset management via managed accounts, using the same investment approach. The Juno Selection Fund was launched in 2008 and invests in European companies with an initial market capitalization between €250 million and €4 billion. The fund was closed to new investments for a long time and has been accessible to existing participants again since April 2023.

The Juno Continuation Fund was launched on February 1, 2020, and invests in medium-sized companies with a market capitalization between €4 and €20 billion. Here, too, the emphasis is on companies that often have family or management as co-shareholders.

Juno holds an AIFM license from the AFM.