Triodos Investment Management in 2023
15 maart 2024
In 2023, Triodos Investment Management’s assets under management increased to EUR 5.7 billion (end of 2022: EUR 5.5 billion). Compared to the year-end figures of 2022, the total volume of the assets under management increased by 2.8%.
Dick van Ommeren, Chair of the Management Board of Triodos Investment Management: “While we are pleased to see our assets under management have returned to an upward trend in 2023, we must also acknowledge that the past year brought challenges. Investor sentiment remained on the cautious side, especially in terms of direct investments in sustainable projects and companies. However, it remains vital that we also continue to invest in unlisted initiatives that are at the forefront of the sustainable transition. Only by combining both listed and direct investments can we really make a difference from the perspective of positive impact.”
Development Triodos investment funds in 2023
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.
The combined assets under management of the Triodos Impact Equities and Bonds Funds (Triodos SICAV l), which invest in listed companies, increased by 5.4% to EUR 2,799.5 million. The assets under management in the discretionary portfolios of Triodos Bank Private Banking Netherlands, which are managed by Triodos Investment Management, increased by 8.7% to EUR 818.5 million.
The combined assets under management of the Triodos Impact Strategy Funds, four Fund-of-Funds that invest in eight Triodos funds and across all Triodos Investment Management’s impact themes, increased by 11.5% to EUR 166.7 million.
Triodos Energy Transition Europe Fund, the fund that invests in assets and companies that generate renewable energy, improve energy efficiency and/or offer energy flexibility, saw its assets under management decrease during the year by 8.8% to EUR 167.8 million. This decrease resulted for a large part from power price developments.
The assets under management of Triodos Microfinance Fund, the fund that invests in financial institutions in emerging markets, decreased by 10.3% to EUR 473.3 million. Triodos Fair Share Fund, the sister fund of Triodos Microfinance Fund tailored to retail investors specifically, saw its assets under management decrease by 8.3% to EUR 333.3 million.
Assets under management of Triodos Groenfonds, the Dutch fund that invests in green projects that promote sustainable development, decreased by 5.0% to EUR 845.3 million. This decrease can mainly be attributed to rising interest rates and cautious investor sentiment, negatively impacting the level of inflow into the fund.
Triodos Food Transition Europe Fund, the fund that offers investors the opportunity to participate in the growth of the organic consumer and sustainable lifestyle sector in Europe, decreased by 5.8% to EUR 59.8 million. This decrease is mainly the result of ongoing market turbulence negatively impacting the performance of the underlying portfolio which is reflected in the fund’s Net Asset Value.
Triodos Emerging Markets Renewable Energy Fund, the fund that invests in the much-needed energy transition in emerging markets by providing long-term senior debt to utility-scale wind, solar and run-of-the-river hydro projects, saw its assets under management increase by 8.7% to EUR 37.5 million.
Triodos Multi Impact Fund, the Triodos fund-of-funds, decreased in fund size by 11.9% to EUR 27.4 million by the year end.
In 2023, Triodos Investment Management launched an investment-mandate for the BeFrank Sustainable Lifecycle, a sustainable pension solution for participants who accrue pension with BeFrank. At year-end 2023, the assets under management of the BeFrank investment-mandate accumulated to EUR 106.3 million.
Returns
The returns of Triodos Investment Management’s funds strongly bounced back in 2023 compared to the 2022 returns. Especially the funds that invest in listed equities and bonds realised solid returns in 2023.
An exception to the generally positive returns is Triodos Energy Transition Europe Fund. In 2022, the fund realised a record high return of no less than 45%, resulting from a continued rise in electricity prices. In 2023, decreased power prices, however, led to the opposite result, creating a negative return throughout the year. Triodos Food Transition Europe Fund was another outlier with a negative return, following ongoing market turbulence.
Source: Triodos
