Triodos’ investments are based on key sustainability themes such as energy and climate or food and agriculture. They combine high sustainable impact, and aim to offer reasonable returns. Clients of Triodos Private Banking in the Netherlands access these investments via asset management (60%, 2013: 55%), advice (8%, 2013: 9%) and execution only (32%, 2013: 36%).
Triodos Bank Private Banking
in EUR million
The slight decline in investment advice is in line with expectations following the introduction of a new transparent pricing structure for advice at the end of 2013. Clients now pay Triodos Private Banking for advice directly as an alternative to ‘hidden’ investment holdings charges. This development prompted a limited number of clients to switch to other services during the year.
A third of entrusted funds within Private Banking are invested in sustainable investment funds, Triodos Bank depository receipts or Triodos Bank savings products. Private Banking informs clients about fund specifications, shares the sustainable impact of a client’s investment and facilitates their transactions.
Total assets for Private Banking in Belgium grew to almost EUR 600 million, consisting of EUR 389 million in advice and EUR 207 million in asset management.
Overall Triodos Private Banking grew its entrusted funds in the Netherlands by EUR 100 million to EUR 1,020 million, a growth of 10%, compared to EUR 100 million (12%) in 2013.
In The Netherlands, growth again came predominantly from private individuals. Foundations and religious organisations continued to be reluctant to commit capital.
2014 was an exceptional year for investments. While interest rates for ordinary savings remained extremely low, all three sustainable asset classes, equities, bonds and alternatives delivered significant positive returns.
Defensive portfolios with approximately 25% equities yielded 8.7% (2013: 5.5%), while neutral portfolios with approximately 50% in equities showed 11.6% returns (2013: 11.3%). Triodos’ sustainable equity portfolios underperformed the overall MSCI index by 2%, but still yielded 17.2%. Since 2006, when Triodos MeesPierson started its operations, Triodos Private Banking has outperformed this index by more than 20%.
Performance Triodos Equity portfolio versus MSCI
Start = 100 at inception Private Banking in September 2005
Triodos Private Banking’s third investment class of alternatives – or mission related investments – which are only available in The Netherlands, returned 4.5%, reversing a loss of 8.6% in 2013. Within this investment class, both the Triodos Fair Share Fund and Triodos Renewables Europe Fund performed increasing by 3.9% (2013: 6.8%) and 3.5% (2013: –5.0%) respectively.