Adam Robbins, senior investor relationship manager, Triodos Investment Management

Keep in mind that our commentary on the fund, as well as its past performance, is not a guarantee of what will happen in the future. It is also not financial advice, so you should consider advice if you’re not sure.

Like all investments, your money is at risk. Investments can go down as well as up, and you may not get back what you put in.

How the fund has performed

The Triodos Sterling Bond Impact Fund achieved a return of 3.4% in the fourth quarter of 2023, outperforming its benchmark. The fund is positioned to remove some sensitivity to interest rate movements as we expect rates to fall more than markets are pricing in over the course of 2024.

The fund continues its defensive stance, focusing on lower risk, higher quality bonds. Lower risk bonds usually offer lower potential returns than riskier ones, but there’s also a lower likelihood of them losing money.

However, the current economic environment, with high interest rates and possibile recessions, could also cause difficulties for some of the organisations issuing bonds in the future. If this happens and the organisations face financial difficulty, this could cause them to downgrade the security rating of their bond (that is, the likelihood of them defaulting). We therefore continue to prefer high quality organisations which we believe have less risk of defaulting.


As of 31/12/23


1 month

3 months

1 year

Triodos Sterling Bond Fund KR-cap




Triodos Sterling Bond Fund KR-dis









Calendar year return




Triodos Sterling Bond Fund KR-cap



Triodos Sterling Bond Fund KR-dis






You can find more performance figures, including a cumulative performance chart, on the Sterling Bond fund webpage.

Please remember that past performance isn't a guide to future returns.

Bond market developments within this period

The Bank of England did not change its policy rate in December, preferring to keep interest rates high in order to try and control inflation. Any talk of interest rate cuts in the near term was dismissed. In the meantime, economic growth is declining. We expect the UK economy will face a recession starting in Q2.


What the Sterling Bond Impact Fund invests in

Here we’ve picked out some of the underlying investments within the fund and explained how they’re making a positive contribution to a more sustainable and inclusive future. For a full list of investments, visit the What does the Sterling Bond Impact Fund invest in? webpage.

Agence Française de Développement (AFD)

Although the fund is predominately UK focused, it does have some exposure to overseas bonds. One example is Agence Française de Développement (AFD), a development bank owned by the French government. AFD finances and helps to implement development projects with the aim of sustainable and shared economic growth, and social development in the French overseas territories and in developing countries. The company offers a range of financial instruments and technical assistance to large and small businesses.

National Grid Electricity Transmission

National Grid is one of the largest investor-owned utility companies in the world. In the United Kingdom, National Grid owns and operates electricity transmission and distribution networks. It plays a vital role in energy transition and guarantees secure and efficient supply of energy to business and households.

Transport for London

Transport for London (TFL) is the local public body responsible for public transport in the City of London and the Greater London area. While TFL manages the road network in London, it also focuses on improving public transportation and increasing cycling and walking. TFL's investment plan is guided by the target that 80% of all journeys will be made on foot, by cycle or using public transport by 2041. Furthermore, TFL aims to reduce air emissions, through ultra-low emission zones and upgrades in its underground lines.