Keep in mind that our commentary on the fund, as well as its past performance, is not a guarantee of what will happen in the future. It is also not financial advice – you should consider talking to a professional adviser if you're not sure whether an investment is right for you.
These investments are designed for long-term investors. Like all investments, your capital is at risk – investments can go down as well as up, currency fluctuations can affect returns, and you may not get back the full amount you invest.
How does this fund work?
The Triodos Pioneer Impact Fund aims to generate positive impact and competitive financial returns from a concentrated portfolio of small and medium sized (mid-cap) companies pioneering the transition to a more sustainable society. We select companies for their contribution to our sustainable transition themes. In an integrated financial and sustainability analysis we identify the impact of material environmental, social and governance (ESG) issues on a company's ability to create value.
Second quarter market overview
Equity markets in the second quarter were shaped by two dominant factors: the ongoing conflict with Iran and developments in artificial intelligence (AI) and technology.
Although geopolitical uncertainty remained high for much of the quarter, markets performed better during April and May, before the situation saw some de-escalation towards the end of the period.
Early in the quarter, markets declined as the conflict in the Middle East showed no signs of resolution. Later, concerns over inflation and rising interest rates weighed on investor sentiment, particularly affecting tech and AI-related stocks. Nevertheless, global stocks ended on a positive note for the quarter, though performance varied significantly across sectors.
Performance update
The Pioneer Fund had a positive quarter but slightly underperformed its benchmark. Despite this, results remain ahead of its benchmark year-to-date.
While mid and small cap stocks performed behind large caps in Q2, for the year so far their overall performance remains stronger.
Investments which contributed to performance
- BE Semiconductor has seen benefits from the momentum in the AI trade. The company held its investor day on 18 June.
- Millicom had no company-specific news. The company did acquire the remaining 32.5% stake in Coltel (Colombia) from the government, though this has had little impact on the stock market.
- Watts Water was one of the building products companies that did very well in June as tensions in the Middle East eased.
- Acuity reported better-than-expected earnings, with investors welcoming signs of stabilisation in its lighting division.
Investments which detracted from performance
- Planet Fitness cut its annual projected sales growth in June due to slower membership growth. Even though sentiment was already negative reflected in earnings, the outcome was worse than expected. The slower growth comes from a misstep in the marketing message, focusing too much on the fitness-minded consumer and thereby ‘scaring away’ the first-time gym goer which is their target audience. They are reverting this strategy, but it might take a few quarters before we see the results.
- United Utilities performance has not been positive due to concerns with potential nationalisation of UK water utilities.
Return
As of 31/06/2026
| 1M | 3M | YTD | 1Y | 3Y avg | 5Y avg | All avg | |
| Triodos Pioneer Impact Fund KR-cap | 4.83% | 8.72% | 14.32% | 21.93% | 7.16% | 2.69% | 9.86% |
| Triodos Pioneer Impact Fund KR-dis | 4.83% | 8.70% | 14.31% | 21.92% | 7.16% | 2.69% | 9.87% |
| Benchmark | 2.43% | 11.53% | 14.01% | 26.38% | 14.84% | 8.09% | 10.84% |
Calendar year return
| 2025 | 2024 | 2023 | 2022 | 2021 | |
| Triodos Pioneer Impact Fund KR-cap | 7.78% | 0.68% | 4.63% | -8.74% | 0.55% |
| Triodos Pioneer Impact Fund KR-dis | 7.79% | 0.68% | 4.62% | -8.73% | 0.57% |
| Benchmark | 11.20% | 11.70% | 9.59% | -9.29% | 17.74% |
Benchmark: Bloomberg Developed Markets Mid & Small Cap Index in EUR converted to GBP. Returns are shown as percentages and calculated on the basis that any income has been reinvested. Returns incorporate the ongoing charges, but do not take into account the impact of the annual service charge on the performance of your investment.
Developments within the fund
The fund limits transactions as part of its buy and hold strategy of quality companies, so trading was limited within the quarter and no new investments made.
Looking ahead
The fund’s valuation and prospects of its holdings remain attractive, with most holdings generating free cash flow and dividends.
The fund’s largest sector exposures are Industrials, Consumer Discretionary, and Information Technology, with no allocation to Banks, Insurers, Oil, or Real Estate.
Investing glossary of terms
Asset | Anything of value owned by an investor or company. |
Benchmark | A reference point against which the performance of an investment or fund can be compared. |
Bond | A bond is a fixed-income investment where money is lent to companies or governments for a set period of time, in return for regular interest payments. The Triodos Sterling Bond Impact Fund invests in a portfolio of bonds including corporate bonds, green and social bonds, and UK government bonds (gilts), with a focus on higher-impact issuers. |
Dividends | Payments made by a company to its shareholders or a fund to its investors, as a distribution of profits. |
ESG investing | Environmental, Social, and Governance (ESG) investing looks at how companies manage sustainability-related risks and opportunities. Triodos Impact Funds go beyond avoiding harm – instead actively choosing to do good. Read more about the difference between ESG and Impact Investing in our article. |
Exposure | The amount invested in a particular asset, sector, or market. |
Federal reserve | The Federal Reserve is the central bank of the United States of America. It conducts monetary policy, regulates and supervises banks, provides financial services for banks and the federal government, and maintains financial stability. |
Free cash flow | The cash a company generates after accounting for outgoing cash flows to support operations and maintain assets. |
Fund | A fund is a pool of money collected from multiple investors to be invested in a variety of assets. At Triodos, our Impact Funds are managed by Triodos Investment Management who make decisions on behalf of investors. |
Holdings | The individual securities or assets owned within a portfolio or fund. |
Interest rate | The percentage charged or paid for the use of money over a certain period of time. A country's ‘base rate’ is determined by its central bank, this can affect investment returns positively or negatively. |
Small, mid and large cap | This refers to a company’s “market capitalisation” which is a company’s value based on the total price of its outstanding shares. |
Portfolio | The collection of investments held by a fund. |
Valuation | The process of determining the current worth of an asset or company. |
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