Juno Selection Fund: 17.7% return after nine months

• Juno Selection Fund looks back on strong third quarter (+16.9%)
• European small to midcap index at -9.4% after nine months
• Strong portfolio adjustment in March and April bears fruit
• Return achieved despite high cash reserves in the portfolio
• Winstgroei voor bedrijven in portefeuille aan bovenkant van historische bandbreedte

The Hague – October 16, 2020

Frans Jurgens, manager of the Juno Selection Fund: “Dutch parenting beliefs rely on the three R’s: “Rust, Reinheid en Regelmaat”, which roughly translates to rest, cleanliness and routine, are not only important in the upbringing of children, but also apply to Juno’s investment style. Rest is reflected in the solid fundamental research that keeps us sane in tumultuous times. Cleanliness is important in assessing how the companies in which we invest do business. Routine is what we wish to see in our portfolio companies: an above average earnings growth between 10 and 15% year after year. We have made several significant changes to our portfolio in March and April, whenever we saw those three “Rs” could be in jeopardy, and not without result.”

Lennart Smits, manager of the Juno Selection Fund: “Family-owned businesses form the core of our portfolio, precisely because these companies have a long-term focus and the company meets strict criteria. You see that these companies often have a better balance sheet, little external financing and, in general, a strong focus on free cash flows. A high return on invested capital is often a strong indication that with a good business model, future earnings growth can remain predictable. This year, despite corona, it has indeed turned out to be business as usual for those companies in the portfolio. In March and April, we intervened in the portfolio where holdings gave us cause for concerns about their earnings growth predictability and thereby had to sell positions where we had been a co-owner of for years. Such an active intervention in the portfolio, on that scale, is unusual for us, but it has had a positive effect. The companies we now have in the portfolio collectively show strong underlying earnings growth, which this year has already partly translated into attractive price increases.”

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.