Triodos launches a fund focused on children’s well-being: is this the best way to invest ethically?

  • Triodos is launching an investment fund in companies focused on children’s well-being
  • The Triodos Future Generations Fund invests in 34 small and medium-sized companies
  • A portion will be invested in the UNICEF program each year

Triodos Bank UK has launched a thematic fund that invests in companies that it says will improve the wellbeing and development of children around the world.

The Triodos Future Generations Fund invests in 34 small and medium-sized listed companies that fit one of the fund’s five themes.

Each company focuses on health and well-being, education, equal opportunities, access to basic services, or safety.

Triodos Bank UK has launched its Future Generations Fund which will invest in companies focused on the wellbeing of children

Triodos Bank UK has launched its Future Generations Fund which will invest in companies focused on the wellbeing of children

Nearly a quarter of the fund is held in healthcare, followed by consumer staples and consumer discretionary companies.

The fund’s largest holding is Hologic, a US-based company that develops, manufactures and supplies diagnostic products focused on women’s well-being.

Other portfolio companies include US education services company Stride and Sobi, a Swedish company focused on treating rare diseases.

Fund manager Sjoerd Rosing said: “An increasing number of companies no longer look only at shareholder value, but at the interests of all stakeholders.

“We believe that future generations belong as stakeholders, which is why the Fund was created to support that long-term vision.”

The Future Generations Fund has been open to European and UK institutional investors since March 2022.

Now it will be available to UK investors through investment platforms, or directly from Triodos Bank, where it can be listed within the stocks and shares scheme.

Top holdings

  • American Diagnostics Corporation Hologic (4.36%)
  • American software company Gen Digital Company (4.01%)
  • American education provider a step (3.95%)
  • American medical device company cooper companies (3.82%)
  • US cloud computing provider Blackbaud (3.8%)

Investors can deposit as little as £25 a month, and Triodos will charge 0.4 per cent on a balance of up to £250,000 a year.

A 0.2 per cent fee will be charged on balances of £250,000.01 and over and there is an ongoing charge of 1.1 per cent.

It is the fourth Triodos fund to be made available to UK retail investors, joining the Global Equity Impact Fund, the Leading Impact Fund and the Sterling Bond Fund.

Appetite for environmental, social and governance funds has waned in recent years, as poor performance and allegations of greenwashing have prompted investors to look elsewhere.

Recent figures from Calaston showed that global investors pulled £8 billion from ESG funds in 2023, and £940 million in the UK alone.

But unlike other ESG funds, Triodos Future Generations said it would donate 0.1 percent of the fund’s net asset value to support UNICEF’s “Building Blocks for the Future” program in Côte d’Ivoire.

Triodos says this donation does not affect the fund’s results.

“While children represent nearly a third of the world’s population, investors’ human rights policies rarely reflect the special considerations companies need to take to respect children’s rights,” said Sandra Fisher, Executive Director of UNICEF Luxembourg.

“We believe this collaboration helps put children’s rights more clearly on the investor agenda and encourage the integration of children’s rights into environmental, social and governance decision-making processes across the investor universe.

“We believe this collaboration helps put children’s rights more clearly on the investor agenda and encourage the integration of children’s rights into environmental, social and governance decision-making processes across the investor universe.”

(Signs for translation) Daily Mail

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