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

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).