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. Like all investments, your capital is at risk – values can go down as well as up, and currency fluctuations can also affect performance.

How does this fund work?

The Triodos Pioneer Impact Fund aims to generate positive impact and competitive financial returns from a concentrated portfolio of small and medium sized (mid-cap) companies pioneering the transition to a more 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 economic outlook 

The second quarter began with significant turbulence. On 2 April, the so-called Liberation Day tariffs were introduced by President Trump, sparking a selloff of more than 15% in euro terms. However, the panic was short-lived. The US administration later introduced a 90-day pause on tariffs, easing fears of a full-scale trade war and helping markets to recover quickly.

Momentum was further supported by an improving outlook for interest rate cuts by the Federal Reserve, leading global equity markets back to all-time highs by the end of the quarter. Small- and mid-cap stocks, which form the core of this fund, performed in line with large caps over the period.

One headwind for euro-based investors was the continued weakness of the US dollar, which fell 14% year-to-date versus the euro – eroding some of the gains from dollar-denominated assets.

Performance update 

The Triodos Pioneer Impact Fund returned 4.25% in the second quarter of 2025, outperforming its reference index, which rose by 2.5%.

The fund’s defensive sector allocation helped in April, when markets were volatile. Its emphasis on Telecoms and Utilities provided downside protection early in the quarter. While the fund slightly lagged the benchmark during May’s strong rally, it performed in line with the market in June.

Over the full quarter, Information Technology and Communication Services were the strongest-performing sectors in the fund. In contrast, Consumer Discretionary and Consumer Staples lagged behind.

Investments which contributed to performance 

BESI: A top contributor. The stock rebounded strongly after its Capital Markets Day in June, where it raised long-term financial targets. This reversed its losses from the first quarter of 2025.

Millicom: Continued to benefit from its stable cash flows and attractive valuation, particularly during April’s downturn. 

First Solar & Nordex: These clean energy stocks performed well as investor interest in renewables returned in the rally phase.

Zebra Technologies: A new holding with strong fundamentals and alignment with our transition themes. Zebra supports the digital transformation of supply chains through real-time visibility solutions and automation technologies.

Investments which detracted from performance 

California Water: Pulled back amid broader weakness in defensive utilities. 

Mueller Water: Declined as industrial water infrastructure stocks underperformed. 

Cooper: A modest drag during the quarter, though fundamentals remain intact. 

Acciona Energia: We decided to remove this position during the quarter, as we reassessed its near-term prospects amid ongoing volatility in the energy sector.

Return

As of 30/06/2025

Calendar year return

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

While volatility remains a theme, the fund's resilient and impact-focused portfolio continues to provide strength in uncertain markets. We remain committed to high-quality small- and mid-cap companies that are aligned with long-term impact goals, generate free cash flow, and have solid growth prospects.

With valuations supported by strong fundamentals and a diversified sector mix, we believe the fund is well-positioned as we enter the second half of 2025.