1. Where did the idea for the Triodos Sterling Bond Impact Fund come from?
The idea for the Triodos Sterling Bond Impact Fund came from Triodos Bank UK, who saw a clear need to ensure investors of all types in the UK had access to investment funds suitable for their risk-return profiles. The Triodos Sterling Bond Impact Fund has a lower risk-return profile than our other funds, like the Triodos Global Equities Impact Fund or the Triodos Pioneer Impact Fund.
Also, as the Triodos Stocks and Shares ISA investors can only use one provider, having equity-only investment funds available at TBUK limited our offering, so we now offer a more complete portfolio.
2. Why was it important to offer this Fund in Pounds Sterling?
Investors in the UK have a currency risk when investing in Euro denominated bonds. Making a designated GBP fund for investors in the UK ensures that their fixed income portfolio will yield results with a risk profile in line with their home market.
3. Is this Fund very different from the other two Funds in the Triodos Investment Management portfolio in the UK?
The impact mission of this Fund is very similar to our other funds in the UK. For example, the Triodos Sterling Bond Impact Fund aligns the portfolio with positive impact across seven sustainable transition themes and applies the same minimum investment criteria, as do the other funds. The major difference is that it invests in different investment instruments (listed bonds instead of listed equities) to achieve this impact.
4. Does the launch of the new Fund reflect the growing interest in impact investing?
Yes. The Triodos Sterling Bond Impact Fund enables investors in the UK to use their money for positive impact across a wider variety of asset classes. Impact investing no longer needs to be only a small part of a portfolio; investors can now build a balanced, diversified portfolio across different asset classes, all used for positive impact.
5. What types of bonds will the Fund invest in?
The Fund will invest in bonds issued by listed companies, semi-public institutions and UK gilts (government bonds) that positively contribute to our seven sustainable transition themes. This positive impact is the north star, and we also apply strict ethical criteria to ensure that we do not invest in bonds that have a negative impact on the environment or society. It will have a similar make-up to the successful Triodos Euro Bond Impact Fund that we offer outside of the UK. When the Triodos Sterling Bond Impact Fund is launched, we will be able to provide full transparency of the bonds involved.
With all investing, your capital is at risk. The Triodos Impact Investment Funds should be seen as long-term investments (five years or more), as their value can go down as well as up and you may not get back what you put in.
Triodos Bank doesn’t offer financial advice, so if you're unsure which investment is right for you, it’s a good idea to ask an independent financial advisor.
Triodos Sterling Bond Impact Fund
Invest in a range of bonds issued by sustainable companies and gilts issued by the UK government.