Triodos Investment Management
- 100% subsidiary of Triodos Bank
- Global leader in impact investing
- EUR 2.5 billion total assets under management
- Managing 19 funds at the end of 2013
- Active in diverse sustainable sectors; from inclusive finance to arts and culture
Triodos Investment Management, a 100% subsidiary of Triodos Bank with responsibility for the management of the Triodos Investment Funds, is a globally recognised leader in impact investing. It manages direct investments in a variety of sectors including climate and energy, inclusive finance, sustainable trade, organic food and agriculture, arts and culture, sustainable real estate and listed companies with above average environmental, social and governance (ESG) performance.
Triodos Investment Management managed 19 funds at the end of the year. They invest in Europe and emerging markets with a range of risk-return profiles and financial instruments. Its total assets under management in 2013 grew, as targeted, by 15% to EUR 2.5 billion.
Private and institutional investors can invest in these funds. The retail investment funds for private investors are distributed by a number of banks, including Triodos Bank branches. Triodos Investment Management maintains direct relationships with institutional investors and family offices in the funds under management.
The development and performance of the different funds impact the financial performance of Triodos Investment Management. For this reason a summary of business lines and all relevant funds’ activities, risks and prospects are presented in this report.
Strategic goal: growth and innovation
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.
To do this, Triodos Investment Management aims to grow the assets under management in each of its funds and launch new, innovative funds. It is convinced that there is a growing appetite among investors for credible investments that deliver real impact. Triodos Investment Management targeted 10 to 15% growth in the total volume of assets under management in 2013 through existing and new funds. Despite the challenging market circumstances Triodos Investment Management achieved to reach this target with a growth of the assets under management by 15%.
In 2013 it prioritised growing its investor base among small institutional investors, 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 further developed two new investment products, of which Triodos Organic Growth Fund has already been launched in January 2014.
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, producing social, environmental and financial returns.
In 2013 this meant:
- contributing to a reduction of over 1.2 million tonnes of CO2, equivalent to the electricity consumption of 851 thousand European households by 1,293 MW of installed clean energy capacity.
- 102,519 small-scale farmers in 22 countries worldwide were paid directly on delivery of their harvest through trade-finance facilities, bringing 13 different fair-trade and organic products to international markets.
- the management of EUR 103 million in assets in arts and culture initiatives; projects that reached 2.5 million visitors and provided affordable facilities for 1,800 artists.
- increasing the quality and sustainability of the built environment through the management of sustainable buildings that emit 60% to 75% less CO2 than the average building
- an increase in volume of inclusive finance funds to EUR 533 million. The funds provided finance to 110 emerging and well-established inclusive finance institutions in Latin America, Asia and Africa. These institutions reach 8.4 million low-income people with loans. 7.9 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 with nearly 90% of the 291 companies in the Triodos Sustainable Investment Universe in 2013.
The SRI funds managed EUR 672 million in assets in 2013 dedicated to ‘best in class’ and pioneering stock exchange listed companies worldwide, as well as European state and corporate bonds.
Triodos Investment Management’s total assets under management grew by EUR 306 million to EUR 2.5 billion, a 15% increase (2012: 7% increase) during the year.
This growth is primarily due to significant growth in the funds 1 that invest in Emerging Markets – Triodos Fair Share Fund, which increased by 32% and Triodos Microfinance Fund which increased by 33%. Investments in Triodos SICAV I, the four Triodos Sustainable Funds that invest in listed companies, also grew jointly by 33%. Due to the absorption of the investment portfolio of BNP Paribas Groen Fonds by Triodos Groenfonds and a strong year-end marketing campaign, this fund grew by 31%.
Triodos Cultuurfonds and Triodos Renewable Europe Fund experienced an outflow of investment. However, both funds have taken measures to reverse this trend.
Triodos Vastgoed Fonds, investing in sustainable real-estate in The Netherlands, restructured in 2013 from an open-end fund to a closed-end fund. The fund has an above average low vacancy rate, and long-running rent-agreements with tenants which make the fund an attractive proposition for investors interested in real estate.
1 Each investment fund managed by Triodos Investment Management publishes its own annual report. As this report is published prior to the finalization of the figures of each fund by its respective board, only the figures published in the annual report of each respective fund represent the official and approved figures.