Juno Selection Fund

Juno Selection Fund: Q4 2015

Very strong fourth quarter for Juno Selection Fund

The Juno Selection Fund, a specialist in the selection of European small and medium-sized (family) businesses, ended 2015 with a very strong fourth quarter. During the fourth quarter, performance increased by +9.8%. In total, the fund achieved a return of +33% over the year 2015.

Growth in assets under management continued solidly in 2015. Assets under management in the fund doubled again to € 113.5 million. Almost 40% of the new inflow over the year came from existing participants who decided to increase their investment in the fund. In addition, there was also a strong growth in the number of new participants who decided to invest in the fund.

While most of the companies in the portfolio have not yet released their 2015 figures, Juno believes that the underlying companies as a whole have been able to achieve strong underlying earnings growth of 21%. An impressive achievement in a world where earnings growth appears to be increasingly scarce.

Director and co-founder Lennart Smits: “Although the new year has also started very turbulent for Juno’s portfolio companies’ share prices, we remain confident. The companies in the portfolio are virtually unaffected by an economic downturn in China, are benefiting from low oil prices and other basic materials and are optimistic about the new year. For this reason, Juno expects the companies it has selected to be able to generate a well-predictable earnings growth of 10-15% in 2016. That earnings growth will not necessarily translate in a predictable, linear way to higher stock prices, which offers great opportunities for patient investors with a focus on the longer term. Juno therefore remains positive for 2016.”

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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