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.
First quarter market overview
The first quarter of 2026 was marked by volatility in global equity markets, driven largely by the escalation of conflict in the Middle East. The quarter began on a cautiously optimistic note, with markets moving slightly higher by the end of February.
Later in the quarter, equity markets experienced a sharp decline, particularly in euro terms, as investors were rattled by the geopolitical developments. From an economic perspective, the war led to a global energy supply shock, immediately visible through rapid increase to oil prices. The prospect of higher inflation, lower economic growth, and reduced corporate profits weighed heavily on investor sentiment, leading to a rapid decline to some sectors.
Before the conflict started, markets had shown resilience, supported by solid corporate performance and encouraging inflation data. However, the geopolitical shock overshadowed these positive factors, shifting investor focus toward risk management and defensive positioning.
Performance update
The Pioneer Fund delivered robust performance during the quarter, outperforming its benchmark. While oil and gas and mining materials were the standout sectors across broader markets, the fund’s returns were driven by strong share price growth in several key holdings.
Investments which contributed to performance
- BESI benefitted from a sharp increase in orders, driven by AI-related investments.
- Nordex saw strong performance and is benefitting from the idea that the Middle East conflict might lead to more adoption of renewables in Europe.
- Darling Ingredients saw more demand for renewable fuels in light of rising oil costs and gained from upcoming favourable regulatory changes for biofuels (the US Renewable Fuel standard program).
Investments which detracted from performance
- Planet Fitness was among the weaker performers, as the company’s cautious 2026 outlook fell short of market expectations.
- Advanced Drainage Systems were impacted by rising oil prices.
Return
As of 31/03/2026
| 1M | 3M | YTD | 1Y | 3Y avg | 5Y avg | All avg | |
| Triodos Pioneer Impact Fund KR-cap | -4.98% | 5.15% | 5.15% | 19.17% | 3.60% | 1.62% | 9.36% |
| Triodos Pioneer Impact Fund KR-dis | -4.96% | 5.16% | 5.16% | 19.19% | 3.60% | 1.63% | 9.36% |
| Benchmark | -6.03% | 2.22% | 2.22% | 18.58% | 10.81% | 6.95% | 10.12% |
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
In March, the first new holding since June 2025 was added to the fund. The fund limits transactions as part of its buy and hold strategy of quality companies. Sprouts Farmers were a new addition, and GN Store Nord was sold.
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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