Triodos Sustainable Mixed Fund

In Germany, Forum Nachhaltige Geldanlagen awarded the sub-fund with three stars, the highest sustainability rating.

Investment policy

During the first nine months of the year, the sub-fund maintained an underweight position in bonds relative to cash and a neutral weight in equities. At the beginning of October the equity weight was raised and consequently the position in bonds was reduced slightly further. The main reasons for this move were the ongoing strong global growth, the modest increase in inflation, and the strong corporate financial results.

In regard to the equity portfolio, the sub-fund’s ongoing focus on blue chip companies in areas that are supported by long-term growth trends, such as Information Technology and Healthcare, worked well. Companies focusing on renewable energy registered mixed share price performances. The share price of First Solar, a solar cell manufacturer, rose sharply because the company benefited from price stability, which resulted in a considerable earnings improvement. The share price performance of Vestas, on the other hand, disappointed. This was due particularly to the (worldwide) changeover from subsidised growth to awarding projects via auction systems, which caused pressure on prices and margins.

In the Healthcare sector, the strong equity selection for medical technology stocks resulted in an above-average share price appreciation. Notably strong performers included PerkinElmer, Baxter and Becton, Dickinson & Company.

In the bond portfolio, the first half of the year saw the sub-fund reducing its positions in German, French, Dutch and Belgian sovereign bonds in favour of Spanish and Italian sovereign bonds. The positions in Spanish and Italian sovereign bonds were established from February and June onwards respectively. During the second half of the year, the positions in sovereign bonds were reduced. This was affected by selling mainly French sovereign bonds. Furthermore, the positions in sub-sovereign bonds were further optimised by extending and shortening some maturities and replacing a number of other holdings. The sub-fund further expanded its positions in corporate bonds in the second half of the year, for instance by adding to its holdings in Renault, ING and Heineken.

In summary, the weight of sovereign and sub-sovereign bonds was reduced relative to the start of the year, while the weight of corporate bonds has increased. At the end of the year the breakdown of the portfolio was as follows: equities 41.7%, bonds 53.8% and cash 3.5%.

Breakdown by investments as at December 31, 2017 (as a % of total assets)

Triodos Sustainable Mixed Fund – Breakdown by investments (pie chart)

Top 5 sub-sovereign and corporate bond holdings as at December 31, 2017

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Name

% of net assets

 

 

 

2.875%

ABN AMRO 2016 - 2028

1.3

2.500%

ING Bank 2017 - 2029

1.1

0.500%

European Investment Bank 2017 - 2027

1.1

1.875%

Nordrhein-Westfalen 2014 - 2024

0.9

1.125%

Kreditanstalt für Wiederaufbau 2013 - 2018

0.9

 

 

 

Top 5 sovereign bond holdings as at December 31, 2017

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Name

% of net assets

 

 

 

3.500%

French Government bond 2009 - 2020

1.1

0.500%

German Government bond 2015 - 2025

0.9

4.000%

Belgium Government bond 2008 - 2018

0.9

4.250%

Italian Government bond 2009 - 2019

0.9

4.800%

Spanish Government bond 2008 - 2024

0.9

 

 

 

Top 5 equity holdings as at December 31, 2017

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Name

Country

Sector

% of net assets

 

 

 

 

Cisco Systems

United States

Information Technology

1.2

Priceline.com

United States

Consumer Discretionary

1.1

Roche

Switzerland

Healthcare

1.0

Adobe Systems

United States

Information Technology

0.9

Time Warner

United States

Consumer Discretionary

0.9

 

 

 

 

Performance

Based on net asset value, Triodos Sustainable Mixed Fund generated a return of 3.6% (Z-dis) in 2017. During the same period, the benchmark rose 3.3%. The sub-fund’s total net assets rose from EUR 250.9 million to EUR 287.3 million.

The outperformance relative to the benchmark is largely attributable to the choices made for the equity portfolio. The outperformance was mainly due to the overweight position in the Information Technology sector and the absence of traditional energy stocks in the portfolio. The equity selection in the Healthcare and Information Technology sectors also had a positive impact. Within the bond portfolio, corporate bonds outperformed sovereign bonds and sub-sovereign bonds.

Performance based on net asset value as at December 31, 2017
(including reinvestment of dividends, including costs)

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Morningstar
rating

1 year

3 year p.a.

5 year p.a.

10 year p.a.

Since inception p.a.1

1

The inception dates can differ between share classes.

2

The Z-share class and the I-share class have a limited history. Returns prior to the launch of these share classes are based on the returns of the comparable R-share class.

3

These are the historical figures of the former Triodos Meerwaardefonds NV, which merged into Triodos SICAV I on June 28, 2010.

4

Excluding costs.

 

n/a: not applicable

 

 

 

 

 

 

 

 

Triodos Sustainable Mixed Fund I-Cap

★ ★ ★ ★

3.7%

3.5%

6.1%2

n/a

6.0%2

Triodos Sustainable Mixed Fund I-Dis

n/a

3.6%

n/a

n/a

n/a

0.4%

Triodos Sustainable Mixed Fund R-Cap

★ ★ ★ ★

3.1%

3.0%

5.6%

n/a

5.6%

Triodos Sustainable Mixed Fund R-Dis

★ ★ ★ ★

3.1%

3.0%

5.6%

4.3%3

3.9%3

Triodos Sustainable Mixed Fund Z-Cap

★ ★ ★ ★

3.6%

3.5%

6.1%2

n/a

6.0%2

Triodos Sustainable Mixed Fund Z-Dis

★ ★ ★ ★

3.6%

3.5%

6.0%2

4.5%2

4.0%2

Benchmark: 40% MSCI World Index (in euros),
36% iBoxx Euro Non-Sovereigns Index,
24% iBoxx Euro Sovereigns Index4

n/a

3.3%

4.8%

7.5%

5.8%

4.4%

 

 

 

 

 

 

 

 

Evolution of returns Triodos Sustainable Mixed Fund

Evolution of returns Triodos Sustainable Mixed Fund (line chart)

* Figures given for the R-share classes are the historical returns of Triodos Meerwaardefonds NV, which merged into Triodos SICAV I on June 28, 2010.

** Triodos Sustainable Mixed Fund aims to achieve returns that are in line with the market. The sub-fund compares its return and the sustainability scores (environment, social and governance) of the companies that it invests in with the MSCI World Index (in euros, 40%), the iBoxx Euro Non-Sovereigns Index (36%) and the iBoxx Euro Sovereigns Index (24%). These are generally accepted indices for (non-sustainable) worldwide diversified equity and bond funds. The investment policy that is pursued by Triodos Sustainable Mixed Fund is not aimed at replicating or outperforming the benchmark. The sub-fund may deviate from the benchmark because it only invests in companies that meet its strict sustainability criteria. The fund believes that in the longer term sustainable investments offer more stable and higher returns than non-sustainable investments. The fund therefore tends to invest in companies on the basis of a long-term investment horizon.

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