Triodos Sustainable Bond Fund

In 2014, Triodos Sustainable Bond Fund invested the inflow of cash mainly in corporate bonds, given the relatively high risk premium for this bond category. Most of the cash was used to expand holdings in corporate bonds that were already present in the portfolio, but the fund also added some new names, including Priceline, SCA, Kering and Prologis. The fund’s overweight position in corporate bonds grew by 5% relative to the benchmark, taking it from 14% to 19%. During the final quarter of the year steps were taken to reduce the risk profile of the portfolio. This was implemented by further optimizing the positions in sovereign bonds and bringing these more in line with the fund’s benchmark.

Breakdown by risk category
per December 31, 2014*

Triodos Sustainable Bond Fund – Breakdown by risk category per December 31, 2014 (pie chart)

Breakdown by duration
per December 31, 2014*

Triodos Sustainable Bond Fund – Breakdown by duration per December 31, 2014 (pie chart)

In addition, the underweight position in sub-sovereign bonds (including those of Agence Française de Développement, Council of Europe Development Bank, KFW and European Investment Bank) was reduced, also to improve the alignment with the benchmark of the fund. For a considerable period, the fund maintained a yield curve position aimed at taking advantage of a potential flattening of the yield curve, which did indeed occur. During the second half of the year the overweight position in the 15- to 20-year segment of the curve was exchanged for an overweight position in the 10-year segment. Throughout the year the fund maintained an underweight position in short-term bonds.

Top 5 corporate bond holdings
per December 31, 2014*

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Name

% of net assets

 

 

 

*

Source: RBC Investor Services Bank

3.500%

European Investment Bank
2012-2027

2.5

3.500%

Kreditanstalt für Wiederaufbau
2006-2021

2.3

6.125%

ING Bank
2008-2023

1.9

3.875%

European Investment Bank
2006-2016

1.8

2.250%

Compagnie de Financement Foncier 2012-2015

1.8

 

 

 

Top 5 sovereign bond holdings
per December 31, 2014*

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Name

% of net assets

 

 

 

*

Source: RBC Investor Services Bank

3.200%

Austrian Government bond
2010–2017

2.3

4.000%

Austrian Government bond
2006–2016

2.3

0.750%

Dutch Government bond
2012–2015

2.0

3.000%

Belgian Government bond
2014–2034

1.7

4.250%

French Government bond
2003–2019

1.7

 

 

 

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