Triodos SICAV I consists of four Luxembourg-based sub-funds that are distributed in The Netherlands, Belgium, Luxembourg, and Germany.
In addition, bond investments include government bonds from countries that meet Triodos Investment Management criteria. These criteria safeguard the fund’s liquidity risk.
Fund volumes of Triodos SICAV I increased by 22.0% to 506 million during the year, despite uncertainty in the Eurozone prompted by the debt-crisis.
The four funds are Triodos Sustainable Equity Fund, Triodos Sustainable Pioneer Fund, Triodos Sustainable Bond Fund, and Triodos Sustainable Mixed Fund. All invest in shares and bonds of listed companies. These companies perform well socially and environmentally, relative to their peers in their sectors.
Promoting corporate social responsibility produced positive results in 2012. Triodos Investment Management made use of voting rights on behalf of the Triodos SICAV I fund at 119 shareholding meetings. The companies were informed about the issues that Triodos Bank intended to vote on in advance of these meetings, allowing organisations to take meaningful steps to address them.
In total, Triodos Investment Management engaged 445 times with 219 companies, leading to a number of improvements in their corporate social responsibility policies and performance.
Through this work, Triodos Bank demonstrated that sustainable investment on the stock market is crucial to encouraging sustainable corporate behaviour.
Socially Responsible Investment Funds’ Prospects for 2013
To a large extent developments in the economy and financial markets will continue to be determined by political decisions, in 2013. If governments continue to implement new austerity measures in response to the European crisis this is likely to have far-reaching consequences. In particular, associated economic and financial risks will continue to influence investor sentiment in global stock markets. In uncertain, volatile economic circumstances investors tend to adopt defensive strategies focusing on ‘safe’ companies in order to protect their investments.
It is not clear whether the financial crisis will continue in 2013, given the steps taken by governments to address it. As the popularity of sustainable enterprise and activity continues in the corporate sector and is only impacted by the financial crisis to a limited degree, we are convinced that investments in companies that balance environmental, social, good governance, and financial strategies will continue to perform well. This should have a positive effect on the growth of the Triodos SICAV I subfunds.
Triodos Investment Management will continue to broaden the market for these funds in Europe, expanding the offer of Triodos SICAV I to the United Kingdom.