One growth company that’s providing opportunities for JUNO

Did you know your JUNO KiwiSaver Scheme money is invested in leading eyewear brands like Oakley and Ray-Ban, and retail stores such as Sunglass Hut and OPSM? 

European parent company, EssilorLuxottica (EL), has provided strong investment opportunities for the JUNO KiwiSaver Scheme’s three funds so far. 

JUNO’s active management strategy means our experienced portfolio managers invest in companies that have strong long-term horizons, like EL. 

EL was formed in 2018 from the merger of a French lens company, Essilor, and an Italian frame company, Luxottica. Frames and lenses have historically had separate supply chains, with EssilorLuxottica being the only manufacturer that can create a complete pair of spectacles. 

EL is a global leader in eyewear and we think it has a strong future as global economies open up after Covid-19 due to its diversified supply chain, long-term structural growth, and its luxury brands that have proved resilient with strong consumer demand.

Key factors driving growth

There’s an increased prevalence of short-sightedness around the world, with half the population (5 billion people) expected to be myopic by 2050 partly due to lifestyle changes such as increased screen time. This increased demand could provide a strong future for this eyewear company. 

An aging population (the number of people over the age of 60 will double by 2050), growth from emerging countries as their middle-class grows, and product innovation such as smart glasses are also contributing growth factors.

Global market share

EL has a leading global market share and trades at a reasonable valuation with long-term tailwinds supporting estimated revenue growth of 5-7% per year. It trades on around 27x this year’s earnings (PE ratio). With headquarters in Paris, France, it has 53 production facilities, 560 prescription laboratories and 37 distribution centres. It sells its products online, via independent eye-care professionals, and from its network of 18,000 retail stores.

A recent acquisition

The company recently completed the acquisition of GrandVision, the largest optical retailer in Europe with more than 7,200 stores worldwide and a growing online presence. GrandVision offers customers expert eyecare services along with a large selection of unique and stylish prescription eyeglasses, sunglasses, contact lenses and eyecare products. The acquisition makes EL more geographically diversified. 

JUNO's investment in EssilorLuxottica demonstrates our active management strategy. Our expert investment team evaluates and focuses on what we believe are high-quality companies with long-term growth horizons. 

JUNO has taken advantage of the recent market correction earlier to add more of this high quality company to the funds.

Some providers use passive management, where your KiwiSaver account is invested automatically and tries to get close to the industry average return. Our experienced active fund managers aim to beat the market index return, not just follow it.


Information correct as at May 2022. Pie Funds Management Limited is the issuer and manager of the JUNO KiwiSaver Scheme. Click here for our Product Disclosure Statement. Any advice is given by Pie Funds Management Limited, and is general only. It relates only to the specific financial products mentioned and does not account for personal circumstances or financial goals. Please see a financial adviser for tailored advice. You may have to pay product or other fees if you act on any advice. As manager of the Scheme we receive monthly fees that are determined by your balance and whether you are 13 years or over. We will benefit financially if you invest in our products. We manage any conflicts of interest via an internal compliance framework designed to ensure we meet our duties to you. For information about the advice we can provide, our duties and complaint process and how disputes can be resolved, visit www.junofunds.co.nz. All content is correct at time of publication date, unless otherwise indicated. Past performance is not a reliable indicator of future returns. Returns can be negative as well as positive and returns over different periods may vary. Please let us know if you would like a hard copy of this disclosure information.