Octopus Defensive Fund
Our Careful Defensive approach.
At a glance
When stability is more important than growth, this lower risk and slower growth approach is designed to keep things steady.
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
- Lower risk
Likely to be a much less ‘bumpy’ ride than with our growth approaches.
- Lower growth, more stability
Keeps things steady if you’re okay with limited potential for growth.
- 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?
At least 75% of your money is invested in lower risk assets with potentially lower returns. The rest is invested in assets that aim to provide a higher potential return but carry a higher level of risk.
Our experts review this mix regularly within the adjustment range, for higher growth potential.
Typically 15%
invested for higher potential returns with higher risk
Typically 85%
invested for lower risk with lower growth potential
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
Our experts manage the mix of investments, within the adjustment range and to achieve the approach objectives.
Here’s the detail at 30 September 2025.
Lower risk
15% Cash
20% Short maturity bonds
13% UK Government bonds (Gilts)
13% Global Government bonds
3% UK corporate bonds
14% Global corporate bonds
Higher risk
2% Shares (emerging market)
3% Shares (UK)
1% Real estate investment trusts
10% Shares (overseas developed)
3% Bonds (emerging markets)
3% Bonds (high yield)
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
Your money is invested in a group of funds, rather than directly in stocks and shares. This is known as a fund of funds.
Top holdings
The following is up-to-date as of 30 September 2025.
abrdn Liquidity Fund
abrdn Global Government Bond Index Fund
L&G ESG GBP Corporate Bond 0-5 Year Fund ETF
Vanguard UK Government Bond Index Fund
Vontobel TwentyFour Sustainable Short Term Bond Fund
abrdn Short Dated Global Inflation-Linked Bond Tracker Fund
abrdn Global Inflation-Linked Bond Tracker Fund
abrdn Short Dated Global Corporate Bond Tracker Fund
abrdn Evolve Asia Pacific ex-Japan Equity Index Fund
abrdn Evolve American Equity Fund
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 | 3.5% | -10.1% | 2.7% | 9.2% | 4.9% |
| Performance Comparator* | 2.5% | -11.5% | 2.5% | 11.6% | 5.0% |
This fund launched in November 2020. To help you compare it with other funds we have replicated the performance of the markets the fund invests in, to indicate what the performance may have been prior to its launch. The simulated return takes into account total annual charges of 0.40% and that the mix of assets are rebalanced once per month, but does not include the separate account fee of 0.30% per year.
*The fund doesn’t use a benchmark as a guide for investing or as a target to beat. But we do use a performance comparator which investors may want to compare the fund’s performance against. This comprises 85% bonds and 15% shares. Shares are represented by the MSCI All Countries World Index GBP, whilst bonds are represented by the Bloomberg Global Aggregate Bond Index – GBP Hedged. The fund invests differently to the performance comparator therefore returns will always be different. For example there are differences in the way the fund is built vs. the comparator, along with the cost of investing, which is included for the fund return, but not the comparator. You cannot invest in the performance comparator.
Source: Lipper, total return (income invested)
Performance comparator changes
We have changed the performance comparator (PC) for the fund. The new PC is more aligned to how the fund invests and performs.
Previous performance comparator: UK Base Rate + 0.75%
New performance comparator: 85% Global Bonds, 15% Global Shares
This change brings the fund’s PC in line with our other multi-asset funds. The split between bonds and shares is based on the approximate risk level of each fund. For example, our Growth Fund 1 uses a 70/30 bonds/shares split, whilst our Growth Fund 3 uses a 20/80 split as it is higher risk and invests more in shares.
By moving to a stock market-based comparison, rather than one linked to interest rates, the new PC provides a better comparison over periods when stock markets and interest rates are moving in different directions.
Please note that this change does not affect the strategy or holdings within the fund itself, just what we use to compare the returns of the fund against.
Key information
In our important documents you’ll see our Careful Defensive approach referred to as the Octopus Defensive Fund. Before applying, please make sure you’ve read the following:
Key Investor Information Document – Octopus Defensive FundWant to check out the performance of another fund?