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Triodos Investment Management

EUR 3.1 billion

In 2015, the Triodos
Investment Management's
total assets under
management increased to
EUR 3.1 billion, a 19%
increase (2014: 6% increase).

  • 100% subsidiary of Triodos Bank
  • Global leader in impact investing
  • EUR 3.1 billion total assets under management
  • Managing 18 funds
  • Active in diverse sustainable sectors; from microfinance to arts and culture

Introduction

Triodos Investment Management is a globally recognised leader in impact investing and consists of Triodos Investment Management BV and Triodos Investment and Advisory Services BV, both wholly owned subsidiaries of Triodos Bank NV. Triodos Investment and Advisory Services BV has been incorporated, in July 2014, resulting from the implementation of the Alternative Investment Fund Managers Directive (AIFMD).

Triodos Investment Management manages direct investments in a variety of sectors including energy and climate, inclusive finance, sustainable trade, organic farming, organic food and sustainable lifestyle companies, arts and culture, sustainable real estate and listed companies with above average environmental, social and governance (ESG) performance.

Triodos Investment Management manages 18 funds. They invest in Europe and emerging markets with a range of risk-return profiles and financial instruments. Its total assets under management in 2015 grew by 19% to EUR 3.1 billion (2014: 6%).

Private and professional investors can invest in these funds. The investment funds for private investors are distributed by a number of banks, including the majority of Triodos Bank’s branches. Triodos Investment Management also maintains direct relationships with professional and institutional investors.

Impact – delivering more than just financial results

Triodos Investment Management’s mission is to make money work for positive change. More specifically its aim as an investor is to serve as a catalyst in the transition to an economy where people and planet come first, in line with the vision and mission of Triodos Bank.

Triodos Investment Management continues to see an increasing demand from investors for credible investments that deliver real impact and not just financial results, not least because of its own continuing growth. In 2015 it continued the focus on growing its investor base among mid-size institutional investors, private banks, family offices and high-net worth individuals.

Triodos Investment Management continuously looks for financial solutions to social and environmental challenges. To this end, it has developed a new investment fund, Triodos Multi Impact Fund, which was launched in December 2015. This ‘fund-of-funds’ meets considerable demand from Dutch investors, because it offers an opportunity to make their money work in multiple sectors that are all key in the transition to a fairer and more sustainable world.

Triodos Bank and Triodos Investment Management have more than 20 years’ experience in investment products that deliver social and sustainable economic change. As a result of this work Triodos Investment Management has become globally recognised as a front-runner in impact investing.

In 2015 this meant:

  • contributing to a reduction of over 0.9 million tonnes of CO2, equivalent to the electricity consumption of 490,000 European households by 740 MW of installed clean energy capacity;
  • 104,305 small-scale farmers in 16 countries worldwide were paid directly on delivery of their harvest through trade-finance facilities, bringing 11 different fair-trade and organic products to international markets;
  • that the organically managed land on the farms which Triodos Investment Management financed could produce the equivalent of 6.2 million meals, or enough food to provide a sustainable diet for approximately 5,700 people. Together approximately 7,700 hectares of organic farmland was financed across Europe;
  • the management of EUR 98 million in assets in arts and culture initiatives; projects that reached 2.9 million visitors and provided affordable facilities for approximately 2,800 artists, participants and cultural organisations.
  • increasing the quality and sustainability of the built environment through the management of a portfolio of sustainable buildings amounting to more than 82,000m2 of office and other commercial space, that emit almost 40% less CO2 than average buildings;
  • an increase in volume of inclusive finance funds to EUR 715 million. The funds provided finance to 100 emerging and well-established inclusive finance institutions in Latin America, Asia and Africa. These institutions reach 15.5 million low-income people with loans. Approximately 10.2 million low-income people use savings services offered by these institutions.

Engaging listed companies

Triodos Investment Management provides opportunities for people and institutions to invest in stock exchange listed companies that meet Triodos Bank’s strictest environmental, social, and governance criteria.

Through these Socially Responsible Investment funds (the SICAV I funds), investors become part of a movement to make some of the world’s largest corporations adopt more sustainable practices. To do this Triodos Investment Management has engaged over 650 times with 280 companies in 2015.

At the end of 2015, the SRI funds managed EUR 1.283 million in assets dedicated to ‘best in class’ and pioneering stock exchange listed companies worldwide, as well as European state and corporate bonds.

Funds’ performance

Triodos Investment Management’s total assets under management grew by EUR 490 million to EUR 3.1 billion, a 19% increase (2014: 6% increase) during the year.

The Triodos Sustainable Funds (Triodos SICAV l), which invest in listed companies, experienced marked growth of 25%. Triodos Fair Share Fund and Triodos Microfinance Fund also realised a significant expansion of 17% and 33% respectively.

The Triodos Organic Growth Fund increased its assets under management during the year by 11% to EUR 32.6 million and the Triodos Renewables Europe Fund increased its assets under management in 2015 by 3% to EUR 64.6 million.

Assets under management in the Dutch Triodos Green Fund increased by 9% to EUR 676.6 million. Triodos Culture Fund remained stable throughout the year with EUR 97.7 million. Assets under management in the Triodos Real Estate Fund decreased slightly by 2% to EUR 68.3 million. The fund’s portfolio, however, continues to perform strongly with an occupancy rate of 93%.

Organisational and Operational developments

Laura Pool joined the Management Board of Triodos Investment Management as Managing Director Risk and Finance in May 2015. Michael Jongeneel left Triodos Investment Management in June 2015. He was replaced by Dick van Ommeren who joined the Management Board of Triodos Investment Management as Managing Director per 1 February 2016.

Triodos Investment Management implemented the ‘Alternative Investment Fund Managers Directive’ (AIFMD), the American Foreign Account Tax Compliance Act (FATCA) as well as the European Market Infrastructure Regulation (EMIR) in 2014. 2015 was a year in which Triodos Investment Management further built on the implementation of these regulations and prepared for new ones, mainly the UCITS V directive and the second phase of EMIR.

UCITS V is a new directive which will come into force in March 2016. It is an amendment to the original UCITS directive covering depository safe-keeping and oversight duties, manager remuneration and sanctions.

In addition, Triodos Investment Management focused on the implementation of the next phase of European Market Infrastructure Regulation (EMIR) during the year. EMIR imposes requirements on all types and sizes of entities that enter into any form of derivative contract. The first tranche of EMIR came into force in 2013 and covers reporting, timely confirmation and reconciliation requirements. It has been implemented within Triodos Investment Management.

The Common Reporting Standard (CRS) has also required preparatory work in 2015. The Organisation for Economic Cooperation and Development (OECD) developed the Common Reporting Standard (CRS), which requires Financial Institutions, such as funds in participating CRS jurisdictions, to identify and report the tax residency and account details of customers to the relevant authorities. As of January 1, 2016, CRS is in force and on-boarding procedures are in place to identify (new) shareholders.

There was also a continuing focus on streamlining Triodos Investment Management’s internal operations during the year, building on the introduction of a new core new core investment portfolio management ICT system in 2014.