PRESS RELEASE: Juno Selection Fund Sees Slight Decline in Third Quarter
October 13, 2014: The Juno Selection Fund ended the third quarter of 2014 with a net asset value of €213.29 per participation, which implies a slight decline of 2.2% in the third quarter. For the full year 2014 up to and including September 30, the fund showed a positive return of 11.7%. The total return since inception of the fund in January 2008 now stands at +113% (compound return of 11.7% per annum).
During the first nine months of the year, we were again able to stay ahead of the market indices. The Dutch AEX (including dividends) increased +7.1% during this period, and the Euromoney Smaller Companies Index only +2.3%. Morningstar.nl and Lipper Fund Screener keep track of the risks and returns of several comparable investment funds. As per September 30, 2014, Juno ranks first in its category with the relative risk indication marked as “Low”.
We are very pleased with the operational improvement at our portfolio companies. These strong European (family-owned) companies were able to grow their profits by more than the 15% we had anticipated and are well positioned to continue growing for the rest of 2014. We aim to see the total earnings within our portfolio increase by 10-15% per annum. Over the past years, we have solidly met this goal, despite the severe economic crisis. The earnings of this select group of mainly family-owned companies increased by more than 15% on average per annum. This profit increase translated into a more than doubling of the share prices of the companies in our portfolio.
Our companies’ continuously strong earnings growth will in the coming years continue to be the engine behind the Juno Selection Fund’s performance. The current volatility in share prices, resulting from doubts about the economic recovery in Europe, offers us interesting buying opportunities. In our opinion, our selection of companies will be able to withstand a possible delay in the economy and ultimately emerge better positioned, just like we saw in the crisis years of 2008-2009. The fact that the prices of these solid companies are also under pressure as a result of panic sales in the markets, offers us a good opportunity to add to our positions in these remarkable companies at interesting price levels. We therefore remain optimistic about the fourth quarter and the longer term.
About the Juno Selection Fund and Juno Investment Partners
Juno invests in unique European Small and Mid-Cap companies. Mostly these are family-owned companies, or companies where a family or management is also a shareholder. Companies that can continue to achieve a predictable and stable profit growth, year after year, are considered for investment. During this selection process, the emphasis lies on the return on invested capital and free cash flows that are highly predictable in nature. Our analysts / asset managers put together a highly concentrated portfolio of companies that they themselves have identified, analyzed and visit frequently. These companies often remain in the portfolio for a long period of time (over three years). With this investment style, Juno has achieved consistent superior investment results for its clients during the past years.
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In case you have questions about this document, please contact Ms. Mariëlle Brinkmann of Sharpe Financial Communications at +31 (0)20-820 86 41