Triodos Bank UK has introduced the Triodos Future Generations Fund, a thematic fund aimed at improving the wellbeing and development of children worldwide, to UK retail investors. The fund provides an opportunity for everyday investors to support listed small and midcap companies around the world that fit into this unique socially-focused investment theme.
The fund is managed by Triodos Investment Management (Triodos IM), the investment arm of Triodos Bank, and has been open to European investors and UK institutional investors since March 2022. The fund currently has assets under management of EUR 38 million. Triodos IM donates the equivalent of 0.1% of the fund’s net asset value (NAV) per year to support UNICEF programmes.
The Triodos Future Generations Fund is the fourth fund from Triodos IM to be offered to UK retail investors. It joins the existing portfolio of impact investment funds – the Triodos Global Equities Impact Fund, Triodos Pioneer Impact Fund and Triodos Sterling Bond Fund. The funds are classified as Article 9 products by the Sustainable Finance Disclosure Regulation (SFDR), as they focus specifically on achieving a sustainability goal. They are available to UK retail investors through investment platforms, as well as directly from Triodos Bank UK, where they can be included within a Stocks and Shares ISA wrapper.
The Triodos Future Generations Fund aims to generate positive impact and healthy financial returns by investing in a concentrated portfolio of global listed small and midcap companies active in one of the fund’s five themes: health and wellbeing, education, equal opportunity, access to basic services, and safety. Actively managed and with a long-term investment horizon, the fund has a high-conviction portfolio with 30-40 companies across sectors, regions, and company sizes. The fund is part of Triodos IM’s Impact Equities & Bonds fund range.
Current portfolio companies include US education services provider Stride; OrthoPediatrics, the world’s first company to produce orthopaedic devices specifically for children; and Sobi, a Swedish company focused on treatments for rare diseases. As with all Triodos Impact Investment Funds, the full list of portfolio companies is published online for all investors to see.
Sjoerd Rozing, fund manager of the Triodos Future Generations Fund, commented: “An increasing number of companies are no longer just looking at shareholder value, but at the interests of all stakeholders. We believe future generations belong on that list of stakeholders, and this is why the fund has been set up to support that long-term vision.”
Roger Hattam, director of retail banking at Triodos Bank UK, added: “Triodos impact investment funds have been recognised as some of the most ethical and impactful available to retail investors in the UK. Given the huge importance of creating a healthy and just future for our young people, the addition of the Triodos Future Generations Fund provides investors with another opportunity to increase the positive impact their money has.”
The UNICEF donation will specifically support programmes such as the Building Bricks for the Future project. This project addresses two major challenges in Côte d’Ivoire, Africa: waste management and education. One solution is transforming the plastic waste into bricks, which are then used to build classrooms. In addition, separate to the fund management, Triodos IM will work together with UNICEF aiming to amplify the voice of children and further their rights within the assets management world, building on UNICEF’s Tool for Investors on Integrating Children’s Rights into ESG Assessment.
Sandra Visscher, Executive Director UNICEF Luxembourg, said: “While children account for nearly one-third of the world’s population, investors’ human rights policies seldom reflect the special considerations businesses need to make to respect children’s rights. We believe that this collaboration helps to put children’s rights more clearly on the investor agenda and encourage integration of children’s rights into ESG decision-making processes across the investor world.”
Important information
Like all investments, your capital is at risk – investments can go down as well as up, currency fluctuations can affect the value of your investment and you may not get back what you put in. The benefits of an ISA depend on your individual circumstances and tax rules may change in the future.
You should ask an independent financial advisor if you’re unsure which investment is right for you. Triodos Bank doesn’t offer financial advice.
Neither UNICEF, nor its partner in Luxembourg, Comité luxembourgeois pour l’UNICEF, is acting as an investment adviser and neither of them has had or will have any role in the design, structuring, development, management or operation of the Triodos Future Generations Fund. UNICEF, and the Comité luxembourgeois pour l’UNICEF, have not been and will not be involved in the management of the Triodos Future Generations Fund, including its investments decisions. Neither UNICEF nor the Comité luxembourgeois pour l’UNICEF has endorsed Triodos IM, Triodos SICAV I, the Triodos Future Generations Fund or any investment by the Fund. UNICEF and the Comité luxembourgeois pour l’UNICEF make no recommendation as to investment in the the Triodos Future Generations Fund. The sole role of UNICEF, and the Comité luxembourgeois pour l’UNICEF, is to receive the donation from Triodos IM and apply such donation to UNICEF’s programmes for children. UNICEF and the Comité luxembourgeois pour l’UNICEF will have no liability to the Triodos Future Generations Fund or investors in the Fund in relation to investments in the Fund, the performance of the Fund or otherwise in connection with the Fund. UNICEF is immune under international law from every form of legal process.