Choosing the right Impact Investment Fund for you

What is an investment fund? 

A fund is a “pot” that is made up of the money of lots of different investors. By pooling resources, it means the fund can invest in multiple companies or organisations, and typically the costs are a lot lower than investing in them all individually yourself.

Why invest in funds?

Since your money is spread across different companies within one fund, you’re spreading your risk. While some of the companies may not do well and decrease in value, others might perform better and counteract some of the loss. It’s less risky than putting all your money in one particular investment, but there’s still the risk that you could lose money. 

Your investments are also being managed for you, so you don’t need to make decisions about buying or selling individual stocks. It is the job of the fund manager to assess different organisations and decide if they’re right for the fund. They’ll do this based on whether they think a company is going to do well in the future and whether it meets the fund’s aims and goals. The fund manager will look at investments which make up the fund regularly and adjust or add to it to ensure there’s a good balance across sectors and regions. 
 
Investing is generally recommended for the long term (5+ years) to allow time for any fluctuations in the economy to balance out, but there’s no guarantee this will happen.

Why choose impact funds?

Investing your money can be a great way to build wealth and financial security for your future, but there’s no guarantee on your returns, so it’s important to find other reasons for wanting to invest too. One benefit of investing is being able to support projects that you care about and knowing that your money is directly building the kind of future you want for yourself and the world. Your money can be hugely impactful and socially useful if it’s used to support companies that prioritise people and the planet.

How to choose funds
 

When you’re deciding which funds to invest your money into, you should be aware of how much risk you are willing to take. Always be aware that if you invest money, you could lose some of or all the money you invest.

You can use our Investment Calculator to help you see how much money you might make from investing in our Impact Investment funds. It shows different possible results, across three scenarios, based on potential market performance in the future. It's similar to a weather forecast for investments, helping you understand what might happen, but not guaranteeing it. Where our calculator differs from others you might see is that it also shows the expected impact of your investment. So, as well as seeing what your returns could be, you also see how your investment could help the planet through lower landfill waste and greenhouse gas emissions.
 
Below is a summary of the funds we offer, how they are different, and examples of how the organisations you might invest in contribute positively towards the UN Sustainable Development Goals. We only invest in organisations that are driving the transition to a more sustainable and fairer society. Simply put, if there’s no positive impact, we don’t invest in it.  

Triodos Future Generations Fund
 

The Future Generation Fund invests in small and medium-sized listed companies that contribute directly to the wellbeing and development of children and our future generations. The funds help innovative companies give children access to education, healthcare, clean water and nutrition. Triodos Investment Management donates 0.10% of the fund's assets per year to UNICEF to support the 'Building bricks for the future' project. This voluntary donation from Triodos does not affect the results of the fund. The fund takes a higher risk approach to potentially provide better long-term performance.  

Case study: Duolingo

Duolingo is a technology company which offers mobile learning to people all around the world. They are tackling education inequality by building language and skills learning courses into smartphones, with an app that is free to download and extensive free versions of all their courses. The Duolingo English Test offers an affordable and accessible alternative to traditional English proficiency exams, breaking down financial barriers to certification.

Triodos Pioneer Impact Fund

The Triodos Pioneer Impact Fund is a Global Small and Mid-Cap fund that invests in companies who are innovators and pioneers in the field of sustainability. Small and medium sized companies tend to have a greater potential for growth than larger companies, and with that potential also comes higher risk. 

Case study: First Solar

First Solar is a leader in the transition from fossil fuels towards renewable energy. Due to specialised thin film solar panel technology, the panels are cheaper to produce and perform best in various weather conditions compared to mono or poly-crystalline panels, and therefore the energy payback time can be less than six months.

Triodos Sterling Bond fund

The Triodos Sterling Bond Fund invests in corporate bonds, green and social bonds and UK government gilts. When the Sterling Bond Fund purchases a bond, it is effectively lending money to the company that issues them – and then in return, the fund receives a rate of interest. Bonds are typically less risky than stock market investments, so this fund is more suitable for a cautious investor. The fund aims to generate a stable income. 

Case study: Smurfit WestRock

Leaders in sustainable fiber-based paper and packaging solutions, Smurfit WestRock is facilitating the shift away from plastics. Their 'Better Planet Packaging' initiative explores and re-imagines packaging for a sustainable world, promoting sustainable forest management and putting recycled raw materials at the heart of their business. 

Triodos Global Equities Fund

Triodos Global Equities Fund supports large multinational companies in their move towards more sustainable products and services. Larger companies are often lower risk than small or medium sized companies, however, they tend to have less potential for growth. This is a good option for those looking for a balance of risk and potential returns over the long-term.

Case study: eBay
 

eBay is a global e-commerce company which connects millions of buyers and sellers, empowering people and economic opportunities by creating an accessible and low-cost online community. They are a pioneer of circular economy principles, championing buying and selling pre-owned goods, which helps preserve natural resources associated with producing new goods and avoiding products going to landfill.