Social impact themes are often difficult to translate into a concrete small and midcap equities investment portfolio. Triodos Investment Management has succeeded in doing so with it’s Future Generation Strategy. “This scalable strategy that adds return and diversification,” says Sjoerd Rozing, portfolio manager of the strategy.

Institutional investors are increasingly looking for opportunities to achieve positive social impact in addition to financial returns. The UN’s Sustainable Development Goals (SDGs) provide a widely used framework for this. However, translating SDGs into a concrete investment strategy with the right companies can be challenging, as Rozing knows. “SDGs offer a good start with useful guidelines, but as an investor you will have to make clear choices yourself about priorities and the ultimate application in an investment portfolio.”

As portfolio manager, Rozing knows better than anyone that it takes time and research to make an investment theme concrete. Child well-being was no exception. “After more than three years, however, we are now able to show a convincing track record of our Future Generations strategy. The inception year 2022 was challenging, but since then we have outperformed the benchmark with this strategy.”

Read the full ‘Thought Leadership’ article at the link below