Wassenaar – 28 January 2019 – The Juno Selection Fund returned -5.4% for the year 2018, mainly as a result of the negative sentiment in the last quarter when the return was strongly in the red.
 
Despite the negative return for the full year, Juno managed to stay ahead of the various indices in relative terms. The index of European small and medium-sized companies, the EMIX Smaller European Companies Index, decreased by -14.5% for the year. The Dutch AEX index (dividends reinvested) also lost more, with a decrease of -7.9%.
 
The past year was a story of opposites. Late August, the Juno Selection Fund achieved the highest net asset value in its history and the year appeared to be headed towards an attractive return. Moreover, the fund closed as per October 1st following strong inflow of clients’ follow-on investments. In hindsight, this turned out to be unfortunate timing, as stock markets showed a very strong correction in the three months that followed.
 
Among other things, this was a result of an expected slow-down in China’s economic growth following the trade war and the direct effect thereof on the earnings of businesses across Europe and the US. Furthermore, the ongoing uncertainty regarding the Brexit and the budgetary discussions between Italy and the EU did not offer any solace.
 

There have been several negative impulses lately, but in the end, lower earnings expectations are the main reason for such a correction. According to Frans Jurgens, portfolio manager and co-founder of the fund, however, this is exactly where the Juno Selection Fund’s strength lies: “We we select our companies based on their stable earnings growth, which is independent of economic cycles. We are in close contact with our portfolio companies and our recent discussions with them have given us a high level of trust in their continued ability to show above-average earnings growth. This earnings growth is after all the main engine behind future price appreciation.”
 
His colleague portfolio manager and co-founder Lennart Smits is therefore optimistic: “Not only are we confident in the earnings growth over 2018 and 2019, but also looking further ahead, we remain positive about the earnings expectations of the fifteen (family-owned) companies in the Juno Selection Fund. In the past, we have always seen that continued positive earnings growth translates into higher share prices over time. We therefore remain fully confident in the recovery of share prices and subsequent further share price appreciation of the companies in our portfolio.”
 
The portfolio of the fund currently has 15 participations of which Grenke, Simcorp and Technogym are the 3 largest.

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.