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 – you should consider speaking to a professional adviser if you're unsure whether an investment is right for you.

These investments are designed to be held for the long term. Like all investments, your money is at risk – investments can go down as well as up, currency fluctuations can affect the value of your investment, and you may not get back what you put in.

How does the fund work?

The Triodos Future Generations Fund invests in companies that are considering the welfare of children and adding benefit for future generations through its products, services, and also the way in which it works. 

Triodos Future Generations Fund focuses on small and medium-sized (midcap) businesses that we have strong conviction in.

When looking for solutions to address the world’s most pressing challenges, especially in impact investing, it is easier to find companies focused on a single product or a single service, as is often the case with small and midcap companies. These small and midcaps are an attractive way to get exposure to a single investment theme or angle, such as child welfare.

Moreover, smaller companies with a strong and viable strategic proposition can have fantastic growth potential, giving them the opportunity to be the big players of tomorrow.

Remember with smaller, entrepreneurial businesses, there’s also more risk that the business might not perform as well as expected. If they decrease in value, investors could get back less than they put in.

Second quarter market overview and economic outlook 

The second quarter of 2025 was a notable one, marked by sharp moves in global equity markets. While geopolitical tensions and tariff concerns were prominent early in the quarter, sentiment shifted as investors turned their attention once again to the outlook for interest rate cuts, particularly in the US. This drove a market rebound into the end of June, despite ongoing uncertainty around trade and policy.

Performance update

The Triodos Future Generations Fund had a decent second quarter, building on a strong first quarter. The fund benefited from a lower exposure to the US market and stronger performance from the Communications services and Utilities sectors, while the Industrials and Financials sectors presented challenges.

Investments which contributed to performance

SABESP: The Brazilian water and sanitation provider continued to improve operationally. Margins are moving toward regulatory thresholds, indicating that SABESP is still operating below the levels of EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) allowed by the regulator – suggesting further upside potential.

Millicom: The Latin American telecoms company continued its portfolio optimisation, while a strengthened balance sheet now supports a more generous dividend policy. Its strategic discipline and financial improvements were well received by investors. 

Voltalia: While still early in its transformation journey, Voltalia – a renewable energy company – showed early signs of progress. The market is beginning to price in its long-term growth potential.

Investments which detracted from performance 

Reliance Worldwide: The plumbing solutions provider was negatively affected by softening conditions in the US housing market, and continued weakness in parts of the European market also weighed on expectations.

Mueller Water: Another US housing-linked name, Mueller Water underperformed amid a weaker backdrop for construction-related infrastructure. The post-election optimism that previously supported the stock faded during Q2.

Return

As of 30/06/2025

Please be aware that there is no calendar year performance data available yet as the fund wasn’t launched until February 2024.

Benchmark: Bloomberg Developed markets Mid & Small Cap Index in EUR converted to GBP. Returns are shown as percentages and calculated on the basis that any income has been reinvested. Returns incorporate the ongoing charges, but do not take into account the impact of the annual service charge on the performance of your investment.

Looking ahead

As we move into the second half of 2025, investor focus is likely to remain on monetary policy, particularly around rate cuts. The fund remains committed to identifying and investing in companies that deliver long-term value for both investors and society – with a particular focus on businesses that support the welfare of children and future generations..