Triodos Pioneer Impact Fund: Investor Update Q3 2025

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.

Third quarter market overview 

The third quarter began with robust gains in global equity markets, as measured by the MSCI World Index. This was led by US equities, where investors shifted focus from earlier tariff concerns to anticipated policy interest rate reductions by the Federal Reserve, as well as emerging opportunities in artificial intelligence. Progress on several trade agreements between the US and its key trading partners also underpinned the positive momentum in markets.

Despite these tailwinds, euro-based investors continued to face challenges from the ongoing weakness of the US dollar, which weighed on returns from dollar-denominated assets. Small-and mid-cap stocks, which are central to this fund, maintained performance on par with large caps throughout the quarter.

The quarter saw better than expected earnings results, particularly among major technology companies, which propelled indices to record highs. Notably, mid- and small-cap stocks outperformed large caps after a prolonged period of relative weakness

Performance update 

The Triodos Pioneer Impact Fund delivered a positive return in Q3 but underperformed its benchmark, as large technology companies drove markets to new highs. The fund benefited from strong results in companies like Allegion, Nordex, and Millicom, and overall solid performance from its holdings, most of which are profitable and pay dividends. While some holdings such as Badger Meter lagged, the fund remains attractively valued with optimistic prospects for 2026.

Investments which contributed to performance 

First Solar reported third-quarter EPS in line with expectations, secured higher-than-anticipated bookings, and issued a guidance cut that was less severe than feared, despite facing several headwinds in a rapidly evolving global trade environment.

BE Semiconductor delivered a better-than-expected order intake, capitalising on the strong momentum from the AI boom.

Nordex raised its mid-term margin target earlier than anticipated, reflecting improved performance and outlook.

Investments which detracted from performance 

Gentex experienced a decline after management struck a somewhat cautious tone regarding the outlook for the automotive market in 2026.

Planet Fitness saw little change in its share price, with no company-specific news impacting performance during the period.

Strategic Education was affected by its peer Stride’s decision to lower guidance, which weighed on Strategic Education’s share price.

Return

As of 31/10/2025

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.