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.
Fourth quarter market overview
The fourth quarter of 2025 was characterised by significant shifts in investor returns – from strength in the information technology sector and weaker performance in defensive sectors such as healthcare. Much of this was due to persistent uncertainty about the broader economic outlook.
Early in the quarter, equity markets benefited from the strong momentum in the information technology sector, fuelled by the ongoing AI boom. Defensive sectors such as healthcare and utilities, which tend to be less sensitive to economic cycles, outperformed, while more unpredictable areas like raw materials and real estate lagged behind.
In November, market sentiment was influenced by uncertainty surrounding a potential US interest rate cut and debates over AI company valuations. This prompted investment out of technology and growth stocks into more resilient defensive sectors, resulting in modest negative returns for equities. December saw the US Federal Reserve implement a widely anticipated quarter-point rate cut, citing a cooling labour market and persistent inflation above 2%. While caution towards AI leaders persisted, these stocks ultimately rebounded and contributed to global equity markets ending the year near record highs.
Performance update
The fourth quarter of 2025 was challenging for the Triodos Future Generations Fund. Cyclical stocks that do better when the economy grows performed well, while safer defensive stocks did not.
Despite recent market dynamics, we remain confident that our disciplined selection process positions the fund in quality companies with compelling growth prospects at reasonable valuations.
Investments which contributed to performance
SIG Group: Investment group Cevian Capital bought 3.05% of SIG Group. Cevian believes SIG Group will do well in the future, even though the company recently had lower profits and stopped its dividend payments.
Blackbaud Inc: Blackbaud’s board raised stock buyback limits, meaning it can now spend up to $1 billion buying back its own shares, up from $800 million. The company also started working with Anthropic to add a new AI tool to its fundraising software.
Tomra: Tomra’s stock went up after a broker gave the company a positive outlook for 2026. Some company insiders also bought shares.
Investments which detracted from performance
Life360 Inc: Life360 agreed to buy ad-tech company Nativo. Even with this news, Life360’s stock price fell for eight days in a row, dropping over 22%. Some company directors also sold a significant number of shares in December.
Reliance Worldwide Corp Ltd: Reliance Worldwide was taken out of the ASX100, which lists the 100 largest companies in Australia. This likely caused some funds to sell the stock. The company was also impacted by higher copper prices.
Revvity Inc: Revvity’s stock fell after Bank of America changed its rating from “Buy” to “Neutral.” Goldman Sachs also gave the stock a “Neutral” rating. Revvity did launch a new AI service for science, but it did not help the stock price.
Return
As of 31/12/2025
1M | 3M | YTD | 1Y | All avg | |
Triodos Future Generations Fund KR-cap | -0.93% | -0.89% | 5.15% | 5.15% | 8.80% |
Triodos Future Generations Fund KR-dis | -0.93% | -0.89% | 5.17% | 5.17% | 8.84% |
Benchmark | -0.24% | 2.47% | 5.36% | 5.36% | % |
Calendar year return
2025 | |
Triodos Future Generations Fund KR-cap | 5.15% |
Triodos Future Generations Fund KR-dis | 5.17% |
Benchmark | 5.36% |
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.
Investing glossary of terms
Asset | Anything of value owned by an investor or company. |
Benchmark | A reference point against which the performance of an investment or fund can be compared. |
Bond | A bond is a fixed-income investment where money is lent to companies or governments for a set period of time, in return for regular interest payments. The Triodos Sterling Bond Impact Fund invests in a portfolio of bonds including corporate bonds, green and social bonds, and UK government bonds (gilts), with a focus on higher-impact issuers. |
Dividends | Payments made by a company to its shareholders or a fund to its investors, as a distribution of profits. |
ESG investing | Environmental, Social, and Governance (ESG) investing looks at how companies manage sustainability-related risks and opportunities. Triodos Impact Funds go beyond avoiding harm – instead actively choosing to do good. Read more about the difference between ESG and Impact Investing in our article. |
Exposure | The amount invested in a particular asset, sector, or market. |
Federal reserve | The Federal Reserve is the central bank of the United States of America. It conducts monetary policy, regulates and supervises banks, provides financial services for banks and the federal government, and maintains financial stability. |
Free cash flow | The cash a company generates after accounting for outgoing cash flows to support operations and maintain assets. |
Fund | A fund is a pool of money collected from multiple investors to be invested in a variety of assets. At Triodos, our Impact Funds are managed by Triodos Investment Management who make decisions on behalf of investors. |
Holdings | The individual securities or assets owned within a portfolio or fund. |
Interest rate | The percentage charged or paid for the use of money over a certain period of time. A country's ‘base rate’ is determined by its central bank, this can affect investment returns positively or negatively. |
Small, mid and large cap | This refers to a company’s “market capitalisation” which is a company’s value based on the total price of its outstanding shares. |
Portfolio | The collection of investments held by a fund. |
Valuation | The process of determining the current worth of an asset or company. |
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