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 it’s 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
Triodos Pioneer Impact Fund achieved a return of 0.21% in the second quarter of 2024, outperforming it’s small and medium-sized company benchmark which fell by -3.17%.
Almost all companies in the portfolio reported good quarterly results. Some holdings also increased their forecasts, like one of the biggest positions Advanced Drainage. The fund’s biggest overweights are the sectors Industrials, Information Technology and Consumer Discretionary.
You can find more performance figures, including a cumulative performance chart, on the Pioneer Impact Fund webpage..
Investments which contributed to performance
This success of the fund was mostly due to a strong performance in May when First Solar's stock rose by over 50%. This US solar panel company might benefit from increased electricity demand driven by artificial intelligence.
Telecom company Millicom did well after its largest shareholder made an offer to buy the company. DS Smith is also being taken over by International Paper, showing that many small- and mid-cap companies are attractively valued.
Other successes include:
Universal Display Corp, the technology developer and manufacturer, had a return of 26.0%. This was driven by the company beating quarterly expectations and revising its full year sales guidance upward.
Planet Fitness Inc - CL A, the gym chain, had a return of 18.4%. This was due to the firm receiving upgrades by several brokers, resulting in a rebound after the shares were weak during the first quarter of 2024. .
Return
As of 30/06/2024
| 1M | 3M | 1Y | 3Y avg | 5Y avg | All avg | |
|---|---|---|---|---|---|---|
| Triodos Pioneer Impact Fund KR-cap | -3.05% | 0.21% | 2.45% | -1.67% | 5.87% | 9.92% |
| Triodos Pioneer Impact Fund KR-dis | -3.05% | 0.19% | 2.44% | -1.67% | 5.87% | 9.92% |
| Benchmark | -1.05% | -3.17% | 10.70% | 2.55% | 7.15% | 9.77% |
Calendar year return
| 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|
| Triodos Pioneer Impact-Fund KR-cap | 4.63 | -8.74 | 0.55 | 28.76 | 28.3 |
| Triodos Pioneer Impact Fund KR-dis | 4.62 | -8.73 | 0.57 | 28.77 | 28.3 |
| Benchmark | 9.59 | -9.29 | 17.74 | 12.48 | 21.8 |
The benchmark for this fund is the MSCI World Small & Mid Cap. 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 Pioneer Impact Fund webpage.
Investments which contributed to performance
This success of the fund was mostly due to a strong performance in May when First Solar's stock rose by over 50%. This US solar panel company might benefit from increased electricity demand driven by artificial intelligence.
Telecom company Millicom did well after its largest shareholder made an offer to buy the company. DS Smith is also being taken over by International Paper, showing that many small- and mid-cap companies are attractively valued.
Other successes include:
Universal Display Corp, the technology developer and manufacturer, had a return of 26.0%. This was driven by the company beating quarterly expectations and revising its full year sales guidance upward.
Planet Fitness Inc - CL A, the gym chain, had a return of 18.4%. This was due to the firm receiving upgrades by several brokers, resulting in a rebound after the shares were weak during the first quarter of 2024.
Investments which detracted from performance
The smart energy solution provider, SolarEdge has struggled this quarter. This is due to the residential solar market struggling in Europe, due to political uncertainty in some countries. SolarEdge also issued convertible debt and announced a write-off because an installer went bankrupt. The shares fell by -64.1% over the period.
Darling Ingredients, the company which repurposes animal by-products into essential ingredients, reported slightly lower results than expected in their first quarter which saw the shares fall by -20.4%.
The hotel management company, Kyoritsu Maintenance fell by -18.9% despite the company reporting strong results and upgrading its forecasts..
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