Outlook for sub-funds
Triodos Sustainable Bond Fund
The outlook for corporate bonds as compared to sovereign bonds remains cautious. The correction of the credit premiums for corporate bonds makes their valuations more attractive, but the sentiment regarding corporate bonds remains reserved. The sub-fund will therefore maintain its current allocation.
Triodos Sustainable Equity Fund
The sub-fund’s positioning emphasises companies in sectors with autonomous long-term growth drivers, such as information technology, cyclical consumer goods and healthcare. As market prospects have improved, companies in the renewable energy sector also seem to fit the bill.
Triodos Sustainable Mixed Fund
The macroeconomic view supports a neutral weight for equities. The sub-fund furthermore maintains an overweight position in cash and an underweight position in bonds, based on the assumption that in time, the interest rate and inflation outlook will normalise, although at a structurally lower level than in the past. This volatile environment is likely to result in situations in which financial markets will temporarily overshoot or undershoot and the sub-fund will actively adapt its tactical policy to such moves.
Triodos Sustainable Pioneer Fund
The sub-fund’s positioning emphasises investing in companies with autonomous long-term growth drivers. Innovative companies covered by the Healthy People and CSR Pioneer themes remain attractive in this respect. As market prospects have improved (climate agreements and political and fiscal support), stocks covered by the Climate Protection theme also increasingly appear to meet this criterion. Stocks in the Clean Planet theme, which are often more sensitive to commodity price trends, seem more vulnerable.
Luxembourg, April 5, 2016
The Board of Directors of Triodos SICAV I
Pierre Aeby (Chairman)