Juno Selection Fund

Juno Selection Fund: Q3 2015

Juno Selection Fund continues growth in third quarter

The Juno Selection Fund, focussed on European small and medium sized (family-owned) companies, has continued the steady growth of its performance in the third quarter. The performance rose by +1.8% during the third quarter. The total performance for 2015 is +21.1% as per September 30.

The third quarter was positive for the Juno Selection Fund, whereas the stock markets showed heavy corrections. The decline of the Euromoney Smaller Company index amounted to -5.6% in the third quarter. The third quarter was positive for the Juno Selection Fund, while the equity markets showed strong corrections. The decline of the Euromoney Smaller Company index amounted to -5.6% in the third quarter and the Dutch AEX index fell by slightly more than -10% in the quarter. The defensive character of the participations in the Juno Selection Fund made itself felt in the past quarter.


But especially in the longer term, we see that the Juno Selection Fund has clearly outperformed the market. The fund's total return since its inception in 2008 is now +174%. Over the same period, the AEX (including reinvested dividends) achieved a cumulative return of +12%. The Euromoney Smaller European Companies Index (formerly HSBC Smaller Europe) shows a total return of +41% since January 2008.


The strict selection criteria used by the Juno Selection Fund result in a small group of highly profitable companies. These companies, mostly family businesses, generate very high returns on capital and significant free cash flows. Their market positions are often dominant and their products or services little sensitive to economic cycles. The annual earnings growth of the group of companies in the portfolio should be between 10% and 15% each year. This earnings growth is the main driver of the fund's performance.


Director and co-founder Lennart Smits: “The strong and predictable (family) companies are expected to maintain the earnings growth of +15% for the whole of 2015. The Juno Selection Fund continues to look to the longer term with confidence.”

About Juno Investment Partners

Juno Investment Partners was established in 2007 as a fully independent fund manager and has an AIFM license (as referred to in Section 2:65 of the Wft), issued by the Dutch regulator AFM. Juno specializes in the selection of exceptional listed (family owned) companies in Europe. Companies that are able to achieve predictable and stable earnings growth year after year are considered for investment. The selection process focuses on the return on invested capital, a low debt ratio and free cash flows of a highly predictable nature. The analysts/portfolio managers compile a highly concentrated portfolio of approximately fifteen companies that they identify, analyze and visit regularly. Selected companies remain in the portfolio for a longer time period (usually more than five years). All analysts/portfolio managers have themselves invested in the Juno funds.

Juno offers three products: The Juno Selection Fund, which focuses on the selection of smaller and medium-sized listed companies, the Juno Continuation Fund for medium-sized companies and individual asset management using the same investment style, for larger clients through managed segregated accounts.

– The Juno Selection Fund was launched in 2008. This mutual fund invests in distinctive European small and medium-sized companies with an initial market capitalization of €250 million to €4 billion. In recent years, this investment style has resulted in above average investment returns for participants in the Juno Selection Fund. This fund has been hard closed for further (follow on) subscriptions since 2018.

– The same investment strategy is applied in the Juno Continuation Fund, which was launched on February 1, 2020. This fund focuses on unique, medium-sized European companies with a market value between €4 billion and €20 billion at the time of initial purchase. As is the case with the Selection Fund, the Continuation Fund also has a strong preference for investments in businesses that are family owned, or companies in which a family or management itself is also a shareholder.

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