With financial markets recovering in 2010 and sustainable banking increasingly popular with private investors, Private Banking increased its entrusted funds by 37% to EUR 606 million. (EUR 249 million of these funds are accounted for on the balance sheet of the Dutch branch). The composition of these entrusted funds remained roughly the same, with the majority allocated to asset management through Triodos MeesPierson Sustainable Asset Management. In Belgium, entrusted funds grew by 28% to EUR 49 million.
Triodos Bank Privat Banking 2010
Total = EUR 606 million
In the Netherlands, growth was carried equally through private individuals, charities and religious institutions, with a net inflow of over 100 new clients.
After rallying by 37% in 2009, Private Banking’s sustainable equity portfolio increased by a further 15.7% in 2010. This represented a 4.4% lower return against the market represented by the MSCI World index, underperforming the index for the first time since the start of our joint venture with MeesPierson. Since 2006, our equity portfolio has yielded a positive return of 23.5% against 1.9% for the MSCI.
In 2010, Triodos Bank’s fixed interest investments extended their recovery from marked underperformance in 2008. Excluding social and cultural investments, fixed interest investments returned 4.7% in 2010. Private Banking’s benchmark for fixed interest investments returned only 1.5%. Since 1 January 2006, the fixed investment portfolio has returned 20.8% against a benchmark of 17.6%.
All three investment classes that Private Banking carries (shares, bonds, alternatives) produced positive results in 2010. Alternative investments, which so far have only been offered in the Netherlands, returned 2.8%. This reflected the average of the satisfactory performances of the Triodos Fair Share Fund, the Triodos Real Estate fund and Triodos Renewables Fund.
Performance Triodos Equity portfolio versus MSCI
Start = 100 at inception Private Banking in September 2005
Private Banking in the Netherlands had a very good year financially. After four years of small start-up losses, it recorded a profit of over EUR 474,000 in 2010. In Belgium, the results of Private and Personal banking is fully consolidated in the branch figures.