Investments take place through investment funds or investment institutions which are managed by Triodos Investment Management. Triodos Investment Management consists of Triodos Investment Management B.V. and Triodos Investment Advisory Services B.V., both 100% subsidiaries of Triodos Bank.
Triodos’ investment funds invest in sustainable themes such as inclusive finance, food and agriculture, energy and climate, sustainable real estate or in listed companies that materially contribute to the transition toward a sustainable society. The investment funds publish separate annual reports and most of them have their own Annual General Meeting.
EUR 4.2 billion
In 2018, Triodos Investment Management’s total assets under management increased to EUR 4.2 billion, a 21% increase (2017: 5% increase).
In 2018 Triodos Investment Management insourced the financial asset management of the discretionary portfolios of Triodos Bank Private Banking Netherlands, and of its funds that invest in stock listed companies. Triodos Investment Management is responsible for 16 funds, for both individual and professional investors. The assets under management of Triodos Investment Management increased by 21% (2017: 5%) to EUR 4.2 billion of which 18% relates to bringing the financial asset management of the discretionary portfolios of Triodos Bank Private Banking Netherlands in house. The closure of the Culture Fund resulted in a 3% decrease in total assets under management. The net inflow of funds was 4%. Due to stock exchange movements in 2018, the investment funds overall lost 1% of their value.
Worldwide, more and more investors realise that how they invest their money now determines what the world will look like in the future. They are increasingly opting for meaningful and measurable impact investing solutions. Triodos Investment Management sees this as a promising development given the many challenges the world faces today, such as climate change and increasing inequality. Many of these challenges are addressed by the UN Sustainable Development Goals (SDGs). As part of a global sustainable development agenda, the SDGs encourage investors to contribute to addressing these global challenges together.
A number of developments took place, during the year, including the discontinuation of Triodos Real Estate Fund which will cease operating in 2019. During an Extraordinary General Meeting of Shareholders on 17 December 2018, the shareholders in the fund voted in favour of the board’s proposal to end the fund’s activities. This proposal was presented to the shareholders following the conclusion that a growth scenario was not likely to be successful in the near future. The board holds the opinion that the fund either needs to grow or end its activities. Continuation in its present form is not deemed in the interest of the fund’s shareholders in the context of costs, return and tradability. After having received consent by the shareholders in the fund, the board initiated the process to end the fund’s activities. This can, among other things, mean facilitating a public bid on the fund’s shares, to sell the fund’s portfolio and/or dissolution and liquidation of the fund.
Prospects for Triodos Investment Management
Triodos Investment Management will continue to build on over 25 years’ experience in bringing together values, vision, and financial returns on investment, helping to meet the European demand for values-based investment solutions that are key in the transition to a more sustainable society. Through its funds, Triodos Investment Management aims to further increase its impact in key areas related to its mission and the UN SDGs.
2019 marks an important moment of transition. Marilou van Golstein Brouwers has transferred her role as Chair of the Management Board, from 1 January 2019, to Jacco Minnaar, currently one of Triodos Investment Management’s four board members. Marilou van Golstein Brouwers will leave Triodos Investment Management on 1 April 2019. The Triodos Investment Management Board will continue with three board members from this point.
Marilou started working at Triodos Bank nearly 30 years ago and has been Managing Director of Triodos Investment Management since 2003. She is responsible for laying the foundation for Triodos Bank’s sustainable investing proposition. With her expertise and drive she has been instrumental in the rise and development of the global impact investing sector.
Triodos Investment Management’s strategic focus will continue to be on retail investors through distributors, High Net Worth Individuals, family offices and (semi-) institutional investors. In the context of the ambition to further increase its impact, Triodos Investment Management aims to broaden its international distribution strategy by adding new European markets to its network.
At the same time, Triodos Investment Management will tilt its focus to become an impact investment solutions provider, meeting the needs of investors building an impact investment portfolio. By doing so it can remain competitive in an increasingly demanding external environment, whilst staying true to its aim to realise positive impact.
Triodos Investment Management will continue to pursue development and growth, both through expansion and further development of existing funds and by creating new impact investment products. In 2018 all its socially responsible investment activities were taken in house, and a team of new fund managers and additional analysts appointed. Building on this platform Triodos Investment Management will develop new investment solutions to invest in listed equities and bonds, so investors can increasingly invest with impact through stock markets.