Triodos pulls assets from external manager to bring SRI funds in-house

Dutch responsible investor ends outsourcing relationship with Delta Lloyd Asset Management in redesign of investment approach.

Triodos Investment Management, the Dutch responsible investment manager, is currently finalising the process of insourcing the running of its four SRI funds, previously managed by Delta Lloyd Asset Management. The funds totalling €1.4bn represent almost half of Triodos Investment Management’s entire asset portfolio. According to Erik Breen, Director SRI, insourcing fund management was the intention “almost right from the start” and is a logical step now that the funds have grown in popularity and size. Previously, Triodos IM would first conduct sustainability analysis in-house to determine the eligibility of potential investments before the financial analysis and investment was conducted by Delta Lloyd. Integrating the two elements, Triodos says, will allow “more in-depth, high quality assessments” as there will no longer be any need for additional “back and forth with an outsourcing partner”.Triodos says the transition allows it to design a bespoke investment approach based on positive selection. Breen says: “We don’t use exclusion lists because while it helps prevent negative social externalities, it doesn’t necessarily drive sustainability forward.” The bank has outlined seven transition themes to drive positive selection based on what it sees as the biggest challenges currently faced by society. They are sustainable food and agriculture, sustainable infrastructure and mobility, renewable resources, social inclusion, circular economy, healthy living, and sustainable innovation. Breen said: “There is a lot of interest coming from the retail investor which we have observed from our own branches and distribution partners.” Triodos IM has a broad retail base at around 70% of their clients and believes this trend will continue to strengthen.