Octopus Bond Fund
Investing in a spread of government and corporate bonds.
At a glance
Potential for better growth than cash savings by investing in bonds, aiming for modest returns and income.
Our experts use Environmental, Social and Governance (ESG) considerations to help select what to invest in. Read more about our responsible investing approach including ESG considerations.
Highlights
- Reduces risk
Likely to be a less ‘bumpy ride’, compared to higher risk investments.
- Generate income
Any interest can be re-invested or withdrawn every six months – useful if you need an income from your savings.
- All done for you
Managed for you by our dedicated team of investment experts. All in one neatly packaged approach.
How is your money invested?
This fund invests 100% in bonds, which typically means lower potential returns and lower risk than shares.
Our experts review this mix regularly within the adjustment range, for higher growth potential.
Around 40-50% GBP denominated bonds with strong credit ratings
Up to 10% in higher yielding bonds with less strong credit ratings
The rest in government bonds, mostly UK
Remember, the value of investments can go up and down, so you may get back less money than you put in. Tax depends on your individual circumstances and the regulations may change in the future.
Where your money’s invested
The fund invests in government and corporate bonds, the majority of which will be in the UK.
Here’s the detail at 30 September 2025.
Lower risk
0% Cash
0% Short maturity bonds
47% UK Government bonds (Gilts)
4% Global Government bonds
35% UK corporate bonds
14% Global corporate bonds
Higher risk
0% Shares (emerging market)
0% Shares (UK)
0% Real estate investment trusts
0% Shares (overseas developed)
0% Bonds (emerging markets)
0% Bonds (high yield)
Find out about the recent change to the fund
Bond Fund update to Investment Policy
We have made a small change to the Investment Policy, to better reflect tracking error expectations. This change will also be reflected in the Fund’s KIID.
Tracking error is a measure of how much returns of the Fund differ from the benchmark.
It doesn’t change how we manage the Fund, or the underlying investments, and there is no action investors in the Fund need to take. Making this change does not come at any cost to yourself or the Fund.
We have replaced the following bullet points within the Investment Policy (the full Policy is included within the Prospectus which you can access here.)
| Old | New |
|---|---|
| The Fund is expected to have relatively low tracking error of 1-3%, meaning returns will differ from the benchmark, but not by a large amount. | The Fund is expected to have relatively low tracking error of 0-2%, meaning returns will differ from the benchmark, but not by a large amount |
Why did we make this change?
As part of the changes to the Fund we made in December 2022, we introduced an expected tracking error range of 1-3%. Actual tracking error has been less than 1% since then, so we think it is the right thing to update the expected range within the Investment Policy. By setting the expected range as 0-2%, we are providing guidance of an expected upper limit of 2%, which means the Fund’s returns will differ from the benchmark, but not by a large amount.
What do these terms mean?
Bonds: These are like IOUs, used by companies and governments to raise money. The buyer effectively lends money to the seller, in return for interest on their investment over a set amount of time. When that time’s up, the value is paid back.
Gilts: These are just a type of bond. But instead of lending money to a company, it’s lent to the UK Government.
Shares: A share is a tiny bit of a company. Share owners are called shareholders. If a company does well, shareholders are rewarded with a proportion of the profits, paid out as dividends. The value of shares rises and falls according to the company’s performance, and other factors.
Real estate investment trusts (REITs): These are pools of money gathered by a company from investors. They’re used to buy, manage or invest in property and land (real estate) to generate income – a way of investing in commercial property without needing millions.
How the fund invests
Our experts select bonds to invest in to provide a diversified mix of geographies, corporate and government bonds whilst taking into account ESG considerations.
Top bonds
The following is up-to-date as of 30 September 2025.
| Amount invested | Bond |
|---|---|
| 45.7% | UK Treasury* |
| 3.0% | USA Bond 2.375% 2055 |
| 0.9% | Santander 5.625% 2031 |
| 0.9% | Anglian Water Plc 6.75% 2031 |
| 0.8% | National Grid Electricity Transmission Plc 2.75% 2035 |
| 0.8% | Yorkshire Water Finance Plc 6.375% 2034 |
| 0.8% | Northumbria Water Finance Plc 5.625% 2033 |
| 0.8% | Phoenix Group Holdings Plc 5.625% 2031 |
| 0.8% | South East Water Plc 5.5834% 2029 |
| 0.8% | Workspace Group Plc 2.25% 2028 |
*The total value invested in UK Treasury Bonds (Gilts), split across 5 to 15 year maturities
Which regions?
| Amount invested | Region |
|---|---|
| 82.2% | UK |
| 11.1% | Europe (excluding UK) |
| 6.3% | North America |
| 0.4% | Latin America |
What you could have earned already
The table below illustrates the annualised total returns of the fund for the period shown, compared with its benchmark. Remember, past performance isn’t a reliable guide to future performance.
The following is up-to-date as of 30 September 2025.
| September 2020 to September 2021 | September 2021 to September 2022 | September 2022 to September 2023 | September 2023 to September 2024 | September 2024 to September 2025 | |
|---|---|---|---|---|---|
| This fund | -3.7% | -21.7% | 4.0% | 10.6% | 1.7% |
| Performance Comparator* | -3.4% | -21.8% | 5.2% | 9.9% | 1.9% |
*The fund aims to match or beat the performance of its benchmark (50% the FTSE 5-15 Year Gilt Index and 50% the ICE Bank of America Merrill Lynch 5-15 Year Non-Gilt Index), after charges, measured over periods of three years or more.
The annual charge changed from 0.60% to 0.30% on 6 January 2024. The performance shown is based on the current annual charge, with adjustments made to prior years to reflect the current charging structure of the fund.
Source: Lipper, total return (income reinvested).
Key information
Before investing please make sure you’ve read the following:
Key Investor Information Document – Octopus Bond FundWant to check out the performance of another fund?