Triodos Investment Management, a EUR 2.5 billion AUM Impact Asset Manager launched its first retail product earlier this week.
The Triodos Multi Impact Fund Currently is only available on the Dutch market via its mother company Triodos Bank, as well as by Rabobank. It will be available on Euronext Fund Service from 1 December 2015.
This is a new development for the impact market. ESG and SRI type funds have long been available to retail investors in many countries, but many actors believe that consumer appetite for environmental and social good could help propel impact assets under management.
Yet retail investors and managers alike find themselves up against prudential and regulatory limitations imposed on retail investors’ access to illiquid assets.
There are only limited opportunities for retail investors in the United States, such as the Calvert Notes or TriLinc funds. But the growth of public fixed income solutions such as green bonds over the past two years, coupled with innovation such as Fund of Funds or listed structures that facilitate liquidity may open a new era of growth for the market.
As a Fund-of-Funds, the Triodos Multi Impact Fund will invest predominantly in fixed income and to a lesser extent in public and private equity. 70 percent will go towards some of Triodos’ own funds, on themes ranging from microfinance to renewables and sustainable consumer businesses.
The remaining 30 percent will be invested in Euro-denominated Impact Bonds, including Green Blues, and Social Bonds in order to provide daily liquidity for the fund.