Wassenaar, The Netherlands – April 6, 2017 – Last year, the Juno Selection Fund saw a strong increase in capital inflows from both private and institutional clients. Together with a strong investment performance the past years, this has caused the fund to almost reach its maximum size. Therefore, the fund’s manager, Juno Investment Partners (‘Juno’), has decided to close the fund as of 1 June 2017 for new clients. The remaining capacity will be available for follow-on investments by existing clients only. We expect that in the course of this year, that remaining capacity will also be fully utilized. Juno will continue to carry out its investment strategy in the same consistent and successful manner it has done for the last, nearly, ten years.
Juno invests in (predominantly) family-owned companies in the European small- and midcap segment, with a highly-concentrated portfolio. This portfolio contains ten to fifteen companies which are held for longer periods of time, often more than five years. A direct consequence of this concentrated investment style in smaller to mid-sized companies is that there is a maximum level of assets that can be managed. This cap is dictated by liquidity: the extent to which existing positions can be reduced or new positions can be added to the portfolio without causing too much upward pressure on share prices.
Alongside the fund, Juno also manages direct mandates. The investments in those mandates are identical to those in the fund. The fund and the mirrored direct mandates, both have seen a strong increase in capital inflows during the last years. Recently, a sizable direct mandate was signed with a U.K. pension fund. Juno’s total assets under the management are now more less evenly divided between the fund and the mandates (see chart). This leads to a healthy balance between the dependence on large institutional clients and more than three hundred loyal participants in the fund.
“Our investment strategy has been our formula for success and is therefore more important than the total assets under management. Hence the limited cap to the fund”, says Lennart Smits, co-founder and manager. “Following the share price increases over the past years, the market has grown in size accordingly, which automatically moved our cap upwards. At the same time, the fund was quite popular with new and existing clients, increasing our assets under management at a faster pace over the last years. Now that the maximum size is approaching, it will not be long before we will only be able to accept follow-on investments by existing clients. The mandates under our management, representing approximately 50% of the total assets we manage, have now reached their limit as well”, says Frans Jurgens, co-founder and manager. The decision to keep the fund closed may change as a result of market conditions, investment results and the amount of total assets under management. If participants redeem their investment, or if direct mandates are terminated, an opportunity may arise to invest in the fund again.
About Juno Investment Partners and the Juno Selection Fund
The Juno Selection Fund invests in exceptional European small and mid-sized companies. Generally, these are family-owned businesses or companies where a family or management is also a stakeholder. Companies that are able to achieve a predictable and stable profit growth year after year are considered for investment. During the selection process, the focus lies on return on invested capital and free cash flows that are highly predictable in nature. The analysts/investment managers construct a highly concentrated portfolio of companies that they themselves have identified, analyzed, and regularly visited. Selected companies often remain in the portfolio for a longer period of time (over three years on average). This investment style has yielded the Juno Selection Fund’s participants superior results. The Juno Selection Fund is managed by Juno Investment Partners. The Dutch authority for the financial markets, “AFM”, has granted Juno Investment Partners a license for discretionary asset management of direct mandates.
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