Triodos Future Generations Fund has built an impressive track record of financial performance and social impact over three years. By putting child wellbeing at the heart of its investment strategy, the fund offers investors the opportunity to achieve financial returns while making a lasting, positive impact on the lives of children worldwide.

With assets surging from EUR 30 million to EUR 80 million since its launch in March 2022, the fund’s strategy is proving attractive to impact investors. Rozing: “It’s a unique small and mid-cap fund with a portfolio that stands out from other impact funds thanks to its specific focus on children.”

This specific approach makes the fund interesting for investors who want to spread the risk in their portfolio. “When the stock markets dropped sharply in the third quarter of 2024, we had our best quarter ever – purely because we are positioned differently,” says Rozing.

Strict impact focus on child wellbeing

What makes the positioning of Rozing's fund so unique? Firstly, companies must align with Triodos Investment Management's transition themes aimed at fostering a sustainable economy. They must also comply with Triodos’ strict overall sustainability criteria. The common thread, however, is child wellbeing.

One example of a portfolio company is OrthoPediatrics. This American company develops orthopaedic medical equipment for children. Rozing: “The company has already helped 1.1 million children with their medical implants – a huge impact.”

Rozing also mentions the Swedish company Sobi, which produces vaccines for the RS virus, known to cause colds and potentially lead to pneumonia in children. “My oldest daughter had this virus when she was one and a half. She almost needed hospital care, but luckily, she made a full recovery. This company also resonates on a personal level.”

Working with UNICEF

According to Rozing, it is crucial for companies to start recognising children as stakeholders. “When you consider the interests of children, you are much more likely to make decisions that have a positive and lasting impact in the long term. It would be great if we could encourage others in the financial sector to do the same.”

The fund is strongly committed to putting child wellbeing on the agenda for businesses. That's why the Triodos Fund has been working with UNICEF* since its inception. This work focuses on children's current needs, such as nutrition and education, as well as their future. Therefore, climate is also an important theme. Rozing: “Ultimately, our children will bear the consequences of climate change. They need a planet that is liveable for their future.”

Furthermore, Triodos has been actively engaged in UNICEF’s work on Child-Lens Investing - an approach that encourages investors to intentionally integrate child-related factors into their decision-making, ensuring positive outcomes for children while minimising harm. “We participated in the working groups that led to the publication of the Child-Lens Investing Framework in September 2023. This initiative was recognised as a Best Invention in 2024 by TIME”, Rozing explains. "Simultaneously, we support UNICEF in developing specific guidance on applying Child-Lens Investing principles within the context of listed equities."

Triodos Investment Management also directly supports a major UNICEF school project in Côte d 'Ivoire through an annual donation equal to 0.1% of the Future Generations Fund's assets. Rozing explains: “To date, this has amounted to a donation of over EUR 100,000. During our visit last October, we saw firsthand the difference it makes. UNICEF can allocate the funds where they are needed most, whether it's repairing leaking roofs or replacing broken furniture, to help keep more than 400 schools operational.”

Five impact themes that make a difference

Triodos Future Generations Fund embraces five themes, in line with the transition to a sustainable society.

1. Healthcare and nutrition – The Danish company Alk-Abello aligns with this theme. “It makes allergy medication that fights the symptoms as well as treating the allergy itself. This is important for children, as we are seeing an increase in allergies that can lead to other diseases, such as asthma, if left untreated,” says Rozing.
2. Education – Sanoma, the largest publisher of educational materials in Europe, is one of the companies within this theme.
3. Protection and safety – The fund invests in online safety for children, such as parental controls that allow parents to monitor what their child is doing online.
4. Living environment – This theme covers everything from clean drinking water to recycling plastic and other waste streams. Rozing: “A compelling example is NX Filtration, a Dutch company that uses innovative technology to purify water. The filters can capture even the tiniest particles of PFAS. This company will play an important role in solving this water issue.”
5. Social inclusion – Telecommunications are vital to the growth of emerging markets. Rozing: “In many of these countries, mobile phones are the only access to banking or internet services.”

Market uncertainty in 2025

Triodos Future Generations Fundrealised a net return of 18.9% over the past 12 months, compared to 10.6% for the benchmark. Please refer to the fund’s monthly factsheet (as per 28 February 2025. Past performance does not predict future returns). Rozing: “Good long-term returns are important for our investors but also for the growth of the fund. More invested capital means we can make more social impact.”

According to Rozing, a positive aspect for the fund is that small and mid-caps have underperformed in recent years. They currently trade at a historic low compared to large caps. “The low interest rates will allow these smaller companies to perform better again. This is a great time to increase exposure to small and mid-caps.”

Rozing anticipates a lot of market uncertainty for the rest of 2025. However, the portfolio includes a relatively large number of companies in healthcare, food, water and other everyday essentials. Rozing: “This puts us in a reasonably defensive position and gives us a strong risk, return and impact ratio that can take a few knocks.”

* 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 Triodos Future Generations Fund. UNICEF, and the Comité luxembourgeois pour l’UNICEF, have not been and will not be involved in the management of Triodos Future Generations Fund, including its investments decisions. Neither UNICEF nor the Comité luxembourgeois pour l’UNICEF has endorsed Triodos IM, Triodos SICAV I, 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 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 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.

This is a marketing communication. Please refer to the prospectus and the Key Information Document of Triodos Future Generations Fund before making any final investment decisions. An English summary of investor rights can be found here. The value of your investment can fluctuate because of the investment policy. Past performance does not predict future returns. Triodos Future Generations Fund is managed by Triodos Investment Management. Triodos Investment Management holds a license as alternative investment fund manager and UCITS manager and is under the supervision of the Autoriteit Financiële Markten and De Nederlandsche Bank in the Netherlands. Triodos Investment Management may decide to stop the marketing of its collective investment schemes in your country.