Triodos Investment Management (Triodos IM), the investment arm of Triodos Bank, is launching the Triodos Sterling Bond Impact Fund1 - a bond fund at the lower end of the risk/return spectrum rated with an SRRI of 3/7 based on simulated past performance data2. It is the first time Triodos IM has issued a fund in GBP.
The new Fund, which will be open for pre-launch subscriptions from 24 September (and is expected to launch on Monday 2 November) at the price of £20 per share, bolsters the Triodos impact investment portfolio across the two main asset classes (equity and bonds) helping to scale impact investments in the UK.
It forms part of Triodos Bank UK’s existing portfolio of impact investment funds – Global Equities Impact Fund and Pioneer Impact Fund, both positioned on the risk/return spectrum as 5/7 and 6/7 respectively.
Made up of corporate, social and green bonds and UK gilts, the Fund is open for initial subscriptions from 24September and is available in a Triodos Stocks & Shares ISA.
The growth and diversification of the award-winning3 Triodos IM portfolio is part of the global growth of the impact investment market, which is estimated to be worth $715bn4, and increasing investor interest in the market. Triodos IM has a 30-year track record and has been an industry frontrunner in these forms of impact investments, which aim to protect and promote quality of life for all.
The new Fund aims to generate positive impact and stable income from a concentrated portfolio of investment-grade, GBP denominated bonds issued by listed companies, semi-public institutions and UK gilts. Issuers and projects are selected for their contribution to the Triodos IM seven sustainable transition themes and going beyond standard environmental, social and governance (ESG) criteria. Additionally, all those listed in the fund must comply with the strict Triodos Bank minimum standards.
The growing popularity of impact investing is helping to fuel the growth and diversification of investment funds, such as those provided by Triodos IM. The latest Triodos Bank Annual Impact Investing Survey reported that awareness of impact investing is higher than in any year since the survey was started in 2016, with 66% of investors saying they would like to support companies that contribute positively to society and environment5.
The Fund has an investment strategy which is similar to the Triodos Euro Bond Impact Fund from Triodos IM, which is available outside of the UK.
William de Vries, director of Impact Equities & Bonds at Triodos Investment Management, said:“We wanted to design a product for the UK market that could offer impactful investments, but at a lower risk for those looking to diversify their portfolio or to start investing for impact. The fixed income bond market is huge, and we know there is great potential for helping to scale the impact investment industry by offering bonds. Our highly experienced team of fund managers and analysts believe that fixed income investing, when done consciously and with purpose, can have meaningful positive impact on society and help to support sustainable solutions for today’s global challenges.”
The Fund will include bonds from companies that are helping to lead the way in terms of environmental stewardship, social responsibility, ethics and governance. For example, those that are engaging with their employees and customers and are employing strategies to reduce energy, water and waste usage or have adopted meaningful social inclusion programmes or are excelling as role models in workplace equality.
Gareth Griffiths, Head of Retail Banking at Triodos Bank UK, said: “We anticipate that the fund will be well received by British investors, given the growing interest in impact investing and its continued success in these difficult times. Diversifying our UK portfolio is an important step for us as we look to provide a range of options to complement the different risk appetites of impact investors, who are looking to make holistic decisions by protecting the environment and promoting quality of life for all, while generating a financial return. We’re proud to be leading the way in the UK with these quality funds and hope they encourage more people to consider investing for impact and for our future.”
William de Vries continued: “Our funds deliver long term impact and offering a fund for fixed income investing through bonds provides an important last piece in the puzzle, as quite simply, due to most investments being debt (bonds), without doing so impact investing cannot scale.”
Your capital is at risk and you may not get back the amount you originally invested. The benefits of an ISA depend on your individual circumstances and tax rules may change in the future.
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Notes to editors
1Triodos Sterling Bond Impact Fund (Fund) is a subfund of Triodos SICAV I, a Luxembourg UCITS investment fund under supervision of the CSSF and managed by Triodos Investment Management B.V. The Prospectus of the Fund and all legally required information, such as KIID will be available through Triodos Bank UK as well as Triodos IM, both online and in paper, after the fund has been launched.
2This synthetic risk and reward indicator (SRRI) is an industry standard methodology based on the volatility of the fund, which allows investors to assess the risk applicable to a potential investment in a UCITS. For a new fund the SRRI is calculated based on a representative portfolio model on which the projected volatility is simulated.’ Please note that the data used may not be a reliable indicator of the future risk profile of the fund. The risk and reward category is not fixed and may shift over time.
3The Triodos Global Equities Impact Fund was awarded ‘Best Sustainable Investment Fund’ in the 2019 Investment Week Sustainable & ESG Investment Awards. Triodos IM was named as ‘Best ESG reporting by a mid-sized manager’ in the 2019 Environmental Finance awards in recognition of the online impact reports produced to highlight the firm’s role as an impact investor. Triodos IM also won the ‘Impact Award’ in 2019 from the Impact Investment Academy. More information is available here.
About Triodos Investment Management
Triodos Investment Management (Triodos IM) connects a broad range of investors who want to make their money work for lasting, positive change with innovative entrepreneurs and sustainable businesses doing just that. In doing so, we serve as a catalyst in sectors that are key in the transition to a world that is fairer, more sustainable and humane.
We have built up in-depth knowledge throughout our 25 years of impact investing in sectors such as Energy & Climate, Inclusive Finance and Sustainable Food & Agriculture. We also invest in listed companies that materially contribute to the transition toward a sustainable society. Assets under management as per the end of June 2019: EUR 4.6 billion.
Triodos IM is a globally active impact investor and is a wholly owned subsidiary of Triodos Bank NV. Triodos IM is authorized by the Dutch Authority for the Financial Markets (AFM) as a UCITS management company and also as an alternative investment fund manager (AIFM) and is also under prudential supervision of the Dutch Central Bank.
About Triodos Bank
Founded in 1980, Triodos Bank has become a frontrunner in sustainable banking globally. As an independent bank that promotes responsible and transparent banking, it does not see any conflict between a focus on people and the planet and a good financial return. Instead it believes that they reinforce each other in the long-term.
Triodos Bank has banking activities in the Netherlands, Belgium, the UK, Spain and Germany, as well as Investment Management activities based in the Netherlands but active globally. Triodos Bank co-founded the Global Alliance for Banking on Values (GABV), a network of 54 sustainable banks. Together these banks want to grow sustainable banking and its impact on the real economy substantially.
Triodos Bank UK Ltd is a wholly owned subsidiary of Triodos Bank NV. Registered Office: Deanery Road, Bristol, BS1 5AS. Registered in England and Wales Company No. 11379025. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 817008. VAT reg no 793493383.