Investments take place through investment funds or investment institutions bearing the Triodos name and are managed by Triodos Investment Management BV, a 100% subsidiary of Triodos Bank.
Triodos Investment funds invest in different themes such as microfinance, sustainable trade, organic agriculture, climate and energy, sustainable real estate, arts and culture, or in listed companies with above average environmental, social and governance (ESG) performance.
These funds and investments are not on Triodos Bank’s balance sheet. The funds publish separate annual reports and most have their own Annual General Meeting of Shareholders.
Triodos Investment Management is responsible for 18 funds, for both individuals and institutions, totaling EUR 2.1 billion assets under management. Total growth of the investment funds was EUR 293 million, up 17%, against a target of between 10 and 20%. The impact of the phasing out of tax benefits for the Triodos Groenfonds and Triodos Cultuurfonds was responsible, in part, for an outflow of investment.
The increase in total funds entrusted to Triodos Investment Management, while lower than anticipated, reflects investors’ appetite for investments in these broad themes.
Prospects for Triodos Investment Management
Triodos Investment Management is well positioned for further growth, with increasing demand from investors in impact investment. Investor interest is in both existing funds as well as new ones in various areas such as energy efficiency, renewable energy, arts and culture and sustainable food and agriculture.
Growth prospects in funds with fiscal benefits in The Netherlands have become less certain, in the light of government decisions to change the financial benefits associated with them. In total however, we foresee a growth in funds under management of between 10 and 15% for 2012.