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 speaking to a professional adviser if you're unsure 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 the full amount you invest.
How does the fund work?
The Triodos Future Generations Fund invests in companies that are considering the welfare of children and adding benefit for future generations through its products, services, and also the way in which it works.
Triodos Future Generations Fund focuses on small and medium-sized (midcap) businesses that we have strong conviction in.
When looking for solutions to address the world’s most pressing challenges, especially in impact investing, it is easier to find companies focused on a single product or a single service, as is often the case with small and midcap companies. These small and midcaps are an attractive way to get exposure to a single investment theme or angle, such as child welfare.
Moreover, smaller companies with a strong and viable strategic proposition can have fantastic growth potential, giving them the opportunity to be the big players of tomorrow.
Remember with smaller, entrepreneurial businesses, there’s also more risk that the business might not perform as well as expected. If they decrease in value, investors could get back less than they put in.
Second quarter market overview
Equity markets in the second quarter were shaped by two dominant factors: the ongoing conflict with Iran and developments in artificial intelligence (AI) and technology.
Although geopolitical uncertainty remained high for much of the quarter, markets performed better during April and May, before the situation saw some de-escalation towards the end of the period.
Early in the quarter, markets declined as the conflict in the Middle East showed no signs of resolution. Later, concerns over inflation and rising interest rates weighed on investor sentiment, particularly affecting tech and AI-related stocks. Nevertheless, global stocks ended on a positive note for the quarter, though performance varied significantly across sectors.
Performance update
The second quarter of 2026 was tough for the Future Generations Fund, though global stock markets rose overall. Two big themes drove markets higher: easing tensions in the Middle East (which pushed oil prices lower) and strong demand for artificial intelligence (AI)-related technology stocks. Unfortunately, the Future Generations Fund didn’t benefit from the AI strength as it does not invest in any semiconductor stocks, which were the biggest winners this quarter.
Healthcare stocks performed strongly, thanks to solid first-quarter results across the board. The Materials sector also did well.
Investments which contributed to performance
- DSM Firmenich contributed well based on outperforming expected earnings in addition to having an additional listing in Switzerland which is triggering increased investor demand. Gen Digital also outperformed earnings expectations and is benefiting from extra demand for cyber security as concerns grow about increased vulnerability to AI hacking.
Investments which detracted from performance
- McGraw-Hill had good results for the last quarter of 2025. But when it shared its plans for 2027, investors didn’t like the lower-than-expected sales numbers. McGraw-Hill have said that its profits would be higher than expected. After engaging with them, we understand this to be a short-term issue.
Return
As of 31/06/2026
1M | 3M | YTD | 1Y | All avg | |
Triodos Future Generations Fund KR-cap | 3.52% | 6.49% | 2.81% | 3.3% | 8.17% |
Triodos Future Generations Fund KR-dis | 3.55% | 6.48% | 2.8% | 3.28% | 8.19% |
Benchmark | 3.07% | 13.07% | 15.47% | 25.85% | 8.24% |
Calendar year return
2025 | |
Triodos Future Generations Fund KR-cap | 5.15% |
Triodos Future Generations Fund KR-dis | 5.17% |
Benchmark | 5.36% |
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
Hologic was removed from the Future Generations Fund in April, as it was acquired by private equity. In the same month, a small holding with McGraw-Hill was acquired. Focussing in the education sector, it has high margins, strong returns. It could grow even more as more people get access to learning materials in colleges and universities.
Looking ahead
We pick companies carefully. We look for good businesses that can grow, are priced fairly, and make a real difference. Over time, we believe this will give us returns like the stock market - but with more positive impact and less risk.
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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