Triodos Sustainable Mixed Fund

In Belgium, Triodos Sustainable Mixed Fund won the De Tijd/L’Echo award for best Mixed Neutral Risk, based on its financial performance. In Germany, WirtschaftsWoche Fonds-Rating awarded the sub-fund the SEHR GUT rating and Forum Nachhaltige Geldanlagen awarded the sub-fund with two stars, the highest sustainability rating.

Investment policy

2016 was an obstacle course for the financial markets. Based on the fundamental view that the growth rate was set to decrease, the sub-fund reduced its overweight position in equities relative to bonds early in the year. In the second quarter the sub-fund temporarily maintained an underweight position in equities versus cash based on the overoptimistic sentiment. Despite the political and economic challenges, sentiment remained positive, driven by the accommodative monetary policies pursued by central banks and the increased expectation of fiscal stimulus measures. The underweight in equities, which attributed negatively to the result, was adjusted to a neutral position shortly after the Brexit when signals on the world economy stabilized. The tactical underweight position in bonds was maintained throughout the year, which had a negative impact in the first half: interest rates fell due to relaxed monetary policies and low interest rate expectations, which resulted in strong positive returns on the bond markets. However, especially after Trump’s election victory, rising inflation expectations and increased uncertainty about monetary policy resulted in rising interest rates. Part of the bond price gains evaporated, as a result of which the tactical underweight position in bonds actually had a positive impact on the sub-fund’s return.

Breakdown by investments as at December 31, 2016 (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, 2016

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Name

% of net assets

 

 

 

2.375%

Priceline.com 2014–2024

1.6

2.250%

Kreditanstalt für Wiederaufbau 2010–2017

1.1

1.125%

Kreditanstalt für Wiederaufbau 2013–2018

1.1

4.750%

European Investment Bank 2007–2017

1.0

2.625%

European Investment Bank 2010–2018

1.0

 

 

Top 5 sovereign bond holdings as at December 31, 2016

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Name

% of net assets

 

 

 

2.250%

French Government bond 2012–2022

2.1

3.250%

French Government bond 2010–2021

1.5

3.500%

French Government bond 2010–2026

1.3

0.250%

German Government bond 2014–2019

1.3

4.000%

Belgian Government bond 2008–2018

1.1

 

 

Top 5 equity holdings as at December 31, 2016

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Name

Country

Sector

% of net assets

 

 

 

 

Comcast

United States

Consumer Discretionary

1.3

Time Warner

United States

Consumer Discretionary

1.1

Roche

Switzerland

Healthcare

1.1

Priceline.com

United States

Consumer Discretionary

1.1

Walt Disney

United States

Consumer Discretionary

1.0

 

 

Performance

In 2016, the total net assets of Triodos Sustainable Mixed Fund grew from EUR 216.4 million to EUR 250.9 million. During this period, the sub-fund (R-Dis) realised a return of -0.1% (including reinvestment of dividends), while the benchmark rose 6.4%.

The tactical investment policy of the sub-fund depressed the relative return by about 0.6%. This underperformance is attributable to the negative contribution of the equity selection: a sharp share price fall for solar cell manufacturers, the overweight position in UK equities and the absence of traditional energy stocks in the portfolio. The bond part of the portfolio performed better, especially due to the overweight position in German, French and Dutch sovereign bonds and the underweight position in Italian government issues.

Performance based on net asset value as at December 31, 2016
(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

★ ★ ★ ★ ★

0.3%

6.5%

7.4%2

n/a

6.4%2

Triodos Sustainable Mixed Fund I-Dis

n/a

0.4%

n/a

n/a

n/a

-1.3%

Triodos Sustainable Mixed Fund R-Cap

★ ★ ★ ★

-0.1%

5.9%

6.9%

n/a

6.0%

Triodos Sustainable Mixed Fund R-Dis

★ ★ ★ ★ ★

-0.1%

6.0%

6.9%

4.1%3

4.0%3

Triodos Sustainable Mixed Fund Z-Cap

★ ★ ★ ★

0.3%

6.4%

7.3%2

n/a

6.4%2

Triodos Sustainable Mixed Fund Z-Dis

★ ★ ★ ★ ★

0.3%

6.4%

7.3%2

4.3%2

4.1%2

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

n/a

6.4%

8.2%

9.3%

5.5%

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 € Non-Sovereigns Index (36%) and the iBoxx € 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 in the short term. 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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