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.
Fourth quarter market overview
The fourth quarter of 2025 was marked by considerable volatility in global equity markets, driven largely by developments in artificial intelligence (AI), ongoing trade tensions, and actions from the Federal Reserve. The quarter began on a positive note, despite an initial dip related to trade concerns. Later into the quarter there was a sharp decline in equity markets, as worries over inflated valuations in AI sectors weighed heavily on investor sentiment. Some losses were mitigated later in the month by the end of the US government shutdown and expectations of a potential US interest rate cut. December opened with a further downturn, influenced by persistent AI-related concerns and weak labour market indicators. Market sentiment reversed in the latter half of the month following reports of low US inflation and robust economic activity, helping equities regain ground by the end of the quarter.
Throughout the quarter, small and mid-cap stocks tracked closely with the performance of larger companies. One ongoing challenge was the persistent weakness of the US dollar, which declined 14% year-to-date against the euro, diminishing some of the gains from dollar-denominated assets.
Performance update
The Triodos Pioneer Impact Fund delivered a positive return over the quarter but underperformed its benchmark. The benchmark was driven by strong performance in financial services and raw materials, sectors which the fund has less exposure to. The fund did, however, benefit from notable share price gains in wind turbine and solar panel manufacturing. The fund’s largest sector allocations are industrials, consumer discretionary, and information technology, while it maintains no exposure to energy or real estate.
The fund’s valuation remains attractive, and the outlook for its holdings in 2026 is positive. All portfolio companies are profitable, with the majority generating free cash flow and paying dividends.
Investments which contributed to performance
Nordex: The shares maintained strong momentum, supported by an increased 2025 outlook announced in November. Shortly after, it raised its mid-term targets, further boosting investor confidence.
BESI: After lagging in November, BESI experienced a moderate rebound.
Investments which detracted from performance
Hannon Armstrong: While the company added USD 1 billion of new investment capacity to their co-investment vehicle, a positive development, this did not translate into immediate share price gains.
Return
As of 31/12/2025
| 1M | 3M | YTD | 1Y | 3Y avg | 5Y avg | All avg | |
| Triodos Pioneer Impact Fund KR-cap | -1.32% | 0.68% | 7.78% | 7.78% | 4.32% | 0.82% | 9.11% |
| Triodos Pioneer Impact Fund KR-dis | -1.32% | 0.69% | 7.79% | 7.79% | 4.32% | 0.83% | 9.12% |
| Benchmark | -0.71% | 2.34% | 11.20% | 11.20% | 10.83% | 7.77% | 10.14% |
Calendar year return
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
| Triodos Pioneer Impact Fund KR-cap | 7.78% | 0.68% | 4.63% | -8.74% | 0.55% | 28.76% |
| Triodos Pioneer Impact Fund KR-dis | 7.79% | 0.68% | 4.62% | -8.73% | 0.57% | 28.77% |
| Benchmark | 11.20% | 11.70% | 9.59% | -9.29% | 17.74% | 12.48% |
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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