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Consumers beware – Triodos Bank direct offer launch may be expensive to ethical investors



The news that Triodos bank has launched two new ethical funds to the UK market should come as good news, but consumers need to be wary because while Triodos is a very well respected brand the initial costs to invest are high for those with a financial adviser, or who usually use a platform to invest. This is because Triodos have not made their two new funds available through the normal distribution channels, with Triodos bank acting as the sole distributor.

Pricing to close not launch!

Triodos have an enviable reputation with their client base and are very capable of marketing their ethical funds direct to the consumer, but investors and financial advisers need to ensure that they understand that this is a direct offer by Triodos bank, who are acting as a distributor to Triodos Investment Management in the Netherlands. Triodos have launched their two funds with a 4% initial charge.

Huw Davis, Head of Personal Banking, Sales and Marketing at Triodos, explained that this competes well with the direct offers of other Investment Houses such as Jupiter, who charge when clients go direct for the Jupiter Ecology fund 5% upfront with a 1.5% annual managment charge. The difference though is that it is possible to access Jupiter Ecology and nearly all other ethical funds through IFAs, or an investment platfrom, without advice, for nil initial charge. It is not possible to access the Triodos ethical funds other than through Triodos bank.

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