Juno Selection Fund: Q2 2018
Return +15.3% After First Half Year
Wassenaar – 12 July 2018 – The Juno Selection Fund ended the second quarter of 2018 with a return of +5.2%. Over the first six months, the Juno Selection Fund achieved a solid performance of +15.3%. The EMIX Smaller Europe Index (formerly Euromoney) increased by +4.2% this quarter and stands at a positive +1% return after the first six months of 2018.
“Companies that offer a product or service that provide demonstrable or perceived savings or other financial gains for the customer will remain able, also in an economic downturn, to achieve good earnings growth.”
Juno remains positive about the outlook for the fund’s performance for the rest of 2018 and the longer term. Frans Jurgens, portfolio manager and co-founder of Juno: “Companies that offer a product or service that provide demonstrable or perceived savings or other financial gains for the customer will remain able, also in an economic downturn, to achieve good earnings growth. Therefore, we remain confident in the ability of share prices to follow this earnings growth over time”. Co-founder and portfolio manager Lennart Smits: “We have sought and found this predictability of earnings growth over the past ten years in our portfolio companies. On average, their aggregated earnings grew by 14.2% annually, despite the severe financial crisis in ’08 / ’09. We saw this earnings growth reflected in the price appreciation of the Juno companies, that rose by a compound rate of 13.5% per year over the same period “.
The portfolio of the Fund currently contains 16 holdings of which Simcorp, Grenke and Brembo are the 3 largest.
About Juno Investment Partners
Juno Investment Partners is an independent asset manager based in The Hague. Juno invests in concentrated portfolios of high-quality European listed companies, often family-owned businesses or companies in which founders and directors are shareholders. The selection process emphasises predictable earnings growth, a high return on invested capital, low debt levels, strong margins and free cash flow, and a sustainable competitive advantage.
Launched in January 2008, the Juno Selection Fund focuses on small- and mid-cap European companies. The portfolio typically consists of around fifteen companies. Each is analysed intensively, and regular contact is maintained with management. The investment horizon is long, generally well over five years. Juno’s analysts, portfolio managers and employees also invest their personal capital in the JSF.
In addition to the JSF, Juno offers individually managed accounts through separate mandates, using the same investment approach. Juno holds an AIFM licence issued by the Dutch Authority for the Financial Markets (AFM).
