In the first half of 2020, Triodos Investment Management’s assets under management remained stable at EUR 4.9 billion (end of 2019: EUR 4.9 billion). As to be expected in an environment of a global health and economic crisis, some of Triodos Investment Management’s funds experienced negative impact from the COVID-19 pandemic and its consequences. Other funds, however, were less impacted, leading to an overall stable result for Triodos Investment Management in the first six months of 2020.
Jacco Minnaar, Chair of the Management Board of Triodos Investment Management: “The first half year of 2020 was obviously marked by the impact of the COVID-19 health and economic crisis. Many countries were, or are still being confronted with prolonged lockdowns, leading to insecurities both on a personal and an economic level. Within this context I’m pleased to see how we have been able to respond to the crisis and have mitigated increased risks and insecurities, and that investors have continued to invest in our funds. As a result, we were able to realise a stable result throughout the first six months.”
Developments Triodos investment funds in first half of 2020
Triodos investment funds offer investors the opportunity to directly invest in sustainable sectors. These sectors range from inclusive finance, sustainable energy, organic food and agriculture, to listed companies that materially contribute to the transition toward a sustainable society.
In the first half of 2020, Triodos Renewables Europe Fund, the fund that invests in small and medium-sized renewable energy projects, realised a significant growth of 23.6% to EUR 148.2 million. Triodos Organic Growth Fund, the fund that offers investors the opportunity to participate in the growth of the organic consumer and sustainable lifestyle sector in Europe, saw its assets under management grow by 4.4% to EUR 44.0 million.
Whilst Triodos Microfinance Fund grew by 5.8% to EUR 480.5 million, the assets under management of Triodos Fair Share Fund decreased by 8.1% to EUR 366.8 million. Both funds invest in financial institutions in emerging markets and have a similar investment strategy but cater to different types of investors. Triodos Microfinance Fund is a fund for qualified and institutional investors and Triodos Fair Share Fund is a fund for Dutch private investors.
Triodos Groenfonds, the fund that invests in green projects that promote sustainable development, saw its assets under management decrease by 2.1% to EUR 949.5 million as a result of a peak in redemptions at the beginning of the crisis. Since then subscriptions and redemptions have returned to normal.
Overall, the alternative funds of Triodos Investment Management experienced a drop in the asset under management at the beginning of the crisis in March. However, as per the end of June 2020, the combined assets under management have returned to the same level as at the end of 2019. The inflow in the first six months of 2020 for the alternative funds was 2,9%, but this was offset by a value loss of 2,9%
The Triodos Impact Equities & Bonds funds, the funds that invest in listed equities and bonds that actively contribute to the sustainable transition, experienced a combined growth of the assets under management by 2.5% to EUR 2,070.9 million. The net inflow was 7.1%, while the negative effect of stock exchange movements was -4,6%. The assets under management in the discretionary portfolios of Triodos Bank Private Banking Netherlands decreased by 6.9% to EUR 744.9 million. The decrease of the latter strategy is the results from a combination of a decrease of funds entrusted and stock exchange movements in the first half of 2020.
The assets under management of Triodos Multi Impact Fund, the Triodos fund-of-funds, decreased by 5.1% to EUR 34.0 million.
During the first half of 2020, the net asset value of the SFRE Fund decreased by 4.3% to USD 38.3 million.The SFRE Fund was launched in March 2015 by the Global Alliance for Banking on Values (GABV). It is the first global open-ended investment fund created to deploy long-term and mission aligned capital to values-based banks and is managed by Triodos Investment Management since January 2018.
Returns
Based on net asset value the performance as per the last trading date of June 2020 was:
Fund | 1-year | 3-year | 5-year |
Triodos Groenfonds1 | -0.4% | 1.1% | 1.5% |
Triodos Fair Share Fund2 | -1.9% | 1.3% | 1.9% |
Triodos Microfinance Fund (I-cap share class) | -1.9% | 1.4% | 1.9% |
Triodos Organic Growth Fund (Q-dis share class) | -8.2% | -5.6% | -1.2% |
Triodos Renewables Europe Fund (Z-cap share class)3 | 3.7% | 5.1% | 3.9% |
Triodos Global Equities Impact Fund (Z-dis share class)2 | 1.3% | 5.7% | 3.8% |
Triodos Impact Mixed Fund - Neutral (Z-dis share class)2 | 0.9% | 3.4% | 2.5% |
Triodos Impact Mixed Fund - Defensive (Z-dis share class)4 | 0.8% |
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Triodos Impact Mixed Fund - Offensive (Z-dis share class)4 | 0.7% |
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Triodos Pioneer Impact Fund (Z-cap share class)2 | 5.3% | 5.4% | 3.5% |
Triodos Euro Bond Impact Fund (Z-dis share class)2 | 0.1% | 1.8% | 1.6% |
Triodos Multi Impact Fund (Z-dis share class)5 | -1.4% | 0.1% |
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SFRE Fund (A-USD share class)6 | -4.7% | -3.3% |
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1 Return including reinvestment of dividends, excluding potential fiscal benefit for investors.
2 Return including reinvestment of dividends.
3 Return including reinvestment of realised gains.
4 This fund was launched in May 2019.The 3-year and 5-year returns are therefore not available. Return including reinvestment of dividends.
5 This fund was launched on 1 December 2015. The 5-year return is therefore not available.
6 This fund’s track record starts as per September 2015. The 5-year return is therefore not available.
Like many investment funds, the funds of Triodos Investment Management have also felt the impact of COVID-19 on their returns. At the beginning of the crisis in the first quarter of 2020, the majority of the funds experienced negative corrections in portfolio returns due to the impact of COVID-19 and economic activities grinding to a halt. However, most funds have also shown signs of recovery in the second quarter. Overall, the majority of funds have been able to limit the negative impact brought about by the global pandemic.
More detailed information on the financial performance of the above-mentioned funds is available through the fund’s semi-annual reports, which will be published on 31 August 2020 via www.triodos-im.com.