Positive Return for the full year, despite negative fourth quarter
Wassenaar – January 18, 2018 – The Juno Selection Fund ended the fourth quarter of 2017 with a -4.0% return. For the full year, the fund return was +6.4%. As of December 31, 2017, the net asset value per participation of the Juno Selection Fund stood at €325.97.
As was the case in 2016, our portfolio companies again achieved a healthy earnings growth this year. Lennart Smits, director and co-founder of Juno: “Even when not all annual results have been reported, we can calculate that 2017 profits will have probably increased by about 12% for the fund’s portfolio holdings on an aggregated basis. This makes 2017 the 11th year in succession where our companies report higher annual results”. On average, our portfolio companies’ earnings rose by 14.2% per annum over that period. This earnings growth does not translate linearly into higher share prices each year. Frans Jurgens, director and co-founder of Juno: “In 2017, share prices lagged our companies’ earnings growth. As earnings growth is the predominant driver of higher share prices, your portfolio has in effect become cheaper over the past year and therefore continues to offer very good return prospects for patient long-term investors”.
The Juno Selection Fund’s assets under management further increased in the past year to over € 227 million. This led to our decision to close the fund to new participants as of June 1st, 2017. Juno’s employees and their direct family members now represent 9% of the fund’s assets.
About Juno Investment Partners and the Juno Selection Fund
Juno invests in unique European small- and mid-cap companies. For the most part, these are family-owned companies, or companies where a family or management is also a shareholder. Companies that can continue to achieve predictable and stable profit growth, year after year, are considered for investment. During this selection process, the emphasis lies on 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, analysed and visit frequently. These companies often remain in the portfolio for a long period of time (on average more than three years). With this investment style, Juno has achieved consistent superior investment results for its clients during the past years. The Juno Selection Fund is managed by Juno Investment Partners. Juno Investment Partners has an AFM licence for discretionary asset management for direct mandates.
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