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 talking to a professional adviser if you're not sure whether an investment is right for you. 

These investments are designed for long-term investors. As with all investments, your capital is at risk – investments can go down as well as up, currency fluctuations can affect returns, and you may not get back the full amount you invest.

How does the fund work?

The Triodos Global Equities Impact Fund aims to generate positive impact and competitive financial returns from a concentrated portfolio of large, listed companies pioneering the transition to a sustainable society. We select companies for their contribution to our sustainable transition themes. In an integrated financial and sustainability analysis we identify the impact of material environmental, social and governance (ESG) issues on a company's ability to create value.

Second quarter market overview and current economic outlook  

After a rocky start to the year, global equity markets came close to entering bear market territory (a fall of 20% or more from recent highs) in April. The catalyst: another round of proposed import tariffs by President Trump, which initially triggered a global sell-off. However, a 90-day pause for tariffs above 10% was later announced, helping ease fears and triggering a dramatic relief rally that dominated the remainder of the second quarter of 2025.

Despite the bounce in equity prices, uncertainty around US trade policy remains. While many companies updated their profit outlooks during the latest earnings season, most in the fund reported only limited direct impact. Some are mitigating the tariff effect through price adjustments or operational cost controls, while others simply expect a delay in any material impact.

The US market led the rebound, with the S&P 500 gaining 10.9% in USD. However, ongoing pressure on the dollar meant returns in euro or sterling terms were more muted. The global rally was driven by increased appetite for risk, but not all sectors participated equally – Health care and Consumer Staples, which make up large parts of the fund, underperformed the broader market.

Performance update

The Triodos Global Equities Impact Fund returned –0.2% over the second quarter of 2025 (Bloomberg PORT data), underperforming its benchmark. While the market recovery was strong, the fund’s positioning in more defensive sectors and underweight exposure to the US meant it lagged the broader rally. As a result, the year-to-date outperformance faded during the quarter.

Investments which contributed to performance

Nvidia: Reached an all-time high, buoyed by renewed optimism in the artificial intelligence (AI) space. 

TSMC: Benefited from a recovery in chip demand and strong investor sentiment around semiconductors. 

KLA: Outperformed as semiconductor equipment stocks saw renewed demand. 

ASML (added):  ASML, a leader in semiconductor lithography systems, was added to the fund during Q2 after a temporary dip in its share price created a compelling entry point. The company already sat within our investment universe, and this provided a good opportunity to start building a position. It quickly delivered strong gains, supported by its market leadership and exposure to AI-driven demand.

Enphase Energy (exited):  Although Enphase remains a well-managed company with a strong balance sheet, too many external uncertainties led to its removal from the portfolio. These include regulatory and market dynamics in the solar energy sector, which cloud the short-term outlook.​​​

Return

As of 30/06/2025

Calendar year return

Benchmark: Bloomberg Developed Markets 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.

The above averages or annualised returns take into account the effect of cumulative losses or gains on the performance of an investment. As such these averages are likely to differ from any calculation using the calendar year returns divided by the number of years.

Looking ahead

While markets have shown impressive resilience in the face of geopolitical and economic uncertainty, risks remain. The pause on tariffs may only be temporary, and the full impact on corporate earnings is still unfolding.

We continue to take a disciplined and long-term approach, favouring companies that offer positive societal impact alongside strong fundamentals. The fund remains tilted towards businesses aligned with a sustainable, inclusive, and resilient global economy – a focus we believe will prove increasingly valuable in the years ahead.