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 19 funds, for both individuals and institutions, totalling EUR 2.2 billion assets under management. Total growth of the investment funds was EUR 137 million, up 7%, against a target of between 10 and 15%. Market sentiment and government austerity measures, mostly regarding sustainable energy projects across Europe, limited inflows in the investment funds to a greater degree than was expected.
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 for Triodos Groenfonds, the largest Triodos Investment fund, are positive, due to the Dutch government decision to maintain the fiscal benefits at a level of 1.9%.
Growth prospects for the funds investing in renewable energy, microfinance funds and in listed companies remain positive. In total, Triodos Investment Management foresees growth in funds under management of between 10 and 15% for 2013.