Triodos Bank’s Executive Board provides a perspective on the wider world it operates in, its impact and activity in 2017 and its prospects for the future.
Triodos Investment Management
Investments take place through investment funds or investment institutions which are managed by Triodos Investment Management. Triodos Investment Management consists of Triodos Investment Management BV and Triodos Investment Advisory Services BV, both 100% subsidiaries of Triodos Bank.
Triodos’ investment funds invest in sustainable themes such as inclusive finance, sustainable trade, sustainable food and agriculture, energy and climate, sustainable real estate, arts and culture, or in listed companies with above average environmental, social and governance (ESG) performance. The investment funds publish separate annual reports and most have their own Annual General Meeting.
EUR 3.5 billion
In 2017, the Triodos
total assets under
management increased to
EUR 3.5 billion, a 5%
increase (2016: 5% increase).
Triodos Investment Management is responsible for 18 funds, for both individual and professional investors, totaling EUR 3.5 billion assets under management. The total growth of the investment funds during the year was EUR 174 million, up 5% (2016: 5%).
Worldwide, more and more investors realise that how they invest their money now determines what the world will look like in the future. They are increasingly opting for meaningful and measurable impact investing solutions. Triodos Investment Management sees this as a promising development given the many challenges the world faces today, such as climate change and increasing inequality. Many of these challenges are addressed by the UN Sustainable Development Goals (SDGs). As part of a global sustainable development agenda, the SDGs encourage investors to contribute to addressing these global challenges together.
Triodos Organic Growth Fund, Triodos Microfinance Fund and Triodos Groenfonds in particular have benefited from an increasing appetite for sustainable investments, with an increase of 21%, 3% and 10% respectively in 2017 (2016: 25%, 17%, 14%).
Triodos Investment Management will continue to build on over 25 years’ experience in bringing together values, vision, and financial returns on investment, helping to meet the European demand for values-based investment solutions that are key in the transition to a more sustainable society. Through its funds, Triodos Investment Management aims to further increase its impact in key areas related to its mission and the UN SDGs. It will focus on human dignity and development, social cohesion and inclusiveness, and responsibility and care for the earth.
Triodos Investment Management’s strategic focus will continue to be on individual investors, distributors, High Net Worth Individuals, family offices and (semi-)institutional investors. In the context of the ambition to further increase its impact, Triodos Investment Management aims to broaden its international distribution strategy by adding new European markets to its network.
After taking on the portfolio management of Sustainability | Finance | Real Economies SICAV – SIF, also known as the SFRE fund (pronounced Sapphire), during 2017 Triodos Investment Management will also act as fund manager of the fund from 1 January 2018. The SFRE fund was launched in March 2015 by the GABV and is designed to deploy substantial capital to financial institutions that play a key role in meeting human needs and advancing essential segments of real economies in their communities. The fund’s mission to invest in sustainability-focused financial institutions. It is fully aligned with Triodos Investment Management’s mission to provide growth capital to an expanding segment of financial institutions that are making a meaningful difference to the lives of millions of individuals and small businesses globally.
In the Spring of 2017, Triodos Investment Management announced it would take sustainable investing in listed securities a step further by integrating its sustainable and financial analysis within the investment process. Triodos Investment Management will do so by bringing the asset management of its SRI proposition in-house and by further intensifying its engagement activities with the aim to maximise positive change.
This intensified and more integrated investment approach will apply to the four Triodos SRI funds (Triodos Sustainable Pioneer Fund, Triodos Sustainable Mixed Fund, Triodos Sustainable Equity Fund and Triodos Sustainable Bond Fund), and for the discretionary portfolios of Triodos Bank Private Banking in The Netherlands. From the start of 2018, the asset management of the discretionary portfolios of private banking accounts will be managed by Triodos Investment Management. The migration of the asset management of the four SRI funds is scheduled for the beginning of the second quarter 2018.
Triodos Investment Management will continue to pursue development and growth, both through expansion and further development of existing funds and by creating new impact investment products.