Octopus Growth Fund 1 - Cautious

Sustainable, Responsible &/or ESG Policy:

Investment Objective and Policy

The aim of the fund is to provide a total return (income and capital growth) over the longer term (five years or more) by investing in shares and bonds from around the world. The fund is the lowest risk fund in the Octopus Growth Fund range, which offers three funds with different levels of risk and potential
return.

The fund aims to meet the objective by investing in other funds, rather than investing directly in individual shares and bonds. This means that the fund is what’s often known as a ‘fund-of-funds’.

The fund invests:

• At least 30% in funds that have a higher return potential (compared to other investments in the fund) – but which carry a higher level of risk, such as shares (from both developed and emerging countries) and higher yielding bonds (such as corporate bonds rated by the leading credit agencies as below investment grade – BB or lower).
• The rest in funds that have a lower return potential (compared to other investments in the fund) – but which carry a lower level of risk, such as bonds with strong credit ratings (for example, developed government and investment grade corporate bonds with relatively strong credit ratings – BBB or higher) and cash.

The split between higher and lower risk investments and the types of investment (for example geography and types of bonds), are chosen so that risk (measured by how much the fund’s value fluctuates, known as ‘volatility’) is expected to remain within the range of 30% to 50% of the risk of world stock markets over 10-year periods. The fund uses the MSCI All Countries World Index GBP to represent world stock markets.

Normally at least 80% of the funds that the fund invests in will be passively managed. This means that they aim to track the performance of a particular share index or bond index. The rest will be actively managed funds – this is where the fund manager chooses individual shares/bonds and as a result returns may be higher (or lower) than the market.

One way in which the fund seeks to manage risks and opportunities is through Environmental, Social and Governance (ESG) considerations. Where the Investment Adviser feels it is beneficial from a risk and return perspective and suitable opportunities are available, investments will be chosen because
of their integration of ESG considerations into stock selection, adoption of sustainable investing objectives or policies, positive shareholder engagement policies, and/or supporting the transition to a low carbon economy. Also the fund will limit (to no more than 0.5% of the value of the fund) indirect exposure to companies which

• make more than 5% of their earnings from tobacco, thermal coal or unconventional oil and gas (such as oil sands or shale gas)
• are involved in the manufacture of controversial weapons such as cluster munitions
• or who violate the UN Global Compact principles on human rights, labour, the environment and anti-corruption.

The fund’s mix of investments will be reviewed at least annually, and may change in consideration of the outlook for each investment type.

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 30% shares and 70% bonds. Shares are represented by the MSCI All Countries World Index GBP, whilst bonds are represented by the Bloomberg Global Aggregate Bond Index – GBP Hedged.

(Source: KIID, as at June 2026)

SDR Labelling:

Unlabelled - promotes sustainable characteristics (has CFD)

SDR Literature:

• Consumer Facing Disclosure