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 to be held for the long term. Like all investments, your money is at risk – investments can go down as well as up, currency fluctuations can affect the value of your investment, and you may not get back what you put in.

Second quarter market overview and outlook

Global stock markets showed positive growth overall in the second quarter. Initially markets fell in April due to persistently high US inflation, which lowered expectations of interest rate cuts. But in May, markets rose thanks to strong earnings reports and lower US inflation, which made investors less worried about an interest rate hike.

The stock market continued rising in June, especially in the US, with the S&P 500 reaching a new high, driven by optimism around tech stocks. Even though the Federal Reserve changed its plan from three to one rate cuts by the end of the year, investors were not surprised and the market maintained its gains.

Looking ahead, we expect headline inflation to continue falling slowly in the US, UK and Eurozone over the remainder of 2024. However higher wage inflation and continued geo-political risks mean this is far from certain.

The impact of this is that we expect low economic growth across the globe, and modest stock market growth. However, global risks mean we are maintaining a cautious approach for the time being.

Performance update

The Triodos Global Equities Impact Fund had a positive return of 1.11% but didn't do quite as well as its benchmark. The best performers were in Information Technology and Health Care, while the fund’s Renewable Energy investments struggled.

Nvidia was the standout, with shares rising 38% last quarter and 157% for the year.

Solar investments faced low demand and profit warnings. Wind energy showed improvement but this isn't yet reflected in stock prices, like Vestas. Political changes in Europe, with right-wing parties gaining influence, cast doubt on ambitious renewable energy goals.

Deere & Co., a major farm equipment maker, was added to the fund. Known for precision agriculture, Deere helps reduce input use with advanced technology, aligning with our sustainability goals.

The fund also decided to sell its shares in Check Point Software Technologies..

 Return

As of 30/06/2024

Calendar year return

The benchmark for this fund is the MSCI World Index. Please remember that past performance isn't a guide to future returns.

You can find more performance figures, including a cumulative performance chart, on the Global Equities Impact Fund webpage.

Investments that contributed to performance

Nvidia, the AI technology company, was the standout, with shares rising 38% last quarter and 157% for the year. The company briefly became the world's most valuable, surpassing Microsoft and Apple.

Nvidia's success boosted other chip and semiconductor stocks like KLA and TSMC which are held in the portfolio.

Investments that detracted from performance

Vestas, the wind turbine manufacturer, is moving towards profitability, however the shares haven’t benefited yet due to negative sentiment towards renewable energy.

Adyen, the Dutch payment company has seen average sales, but profit margins were weak, leading to a drop in stock value.

Nike, the athletic apparel corporation, issued a sales warning at the end of June; losing market share with declining sales and earnings, leading analysts to lower their earnings forecasts..