Our Investment Funds

The Healthy Investment Ethical With-profits Fund invests in a mix of different investment assets including UK and global stocks and shares, fixed interest government and corporate bonds, commercial property and cash deposits.

Diversification reduces risk by allocating investments across various financial assets, and industries. The objective of a diversified portfolio is to optimise returns by investing in different industry sectors, each of which react differently to the same market event. Although it doesn’t guarantee against loss, diversification is an important element of reaching long term financial goals whilst managing the level of risk.

Balancing a portfolio is quite complicated and potentially more expensive if arranged by direct individual investment and without expert analysis may come with lower rewards.

Different assets such as bonds and shares don’t usually react in the same way to adverse events. A combination of both reduces the sensitivity of a portfolio to market swings because they often move in opposite directions. So by diversifying, adverse movements in one may be offset by positive results in another.

Diversification by location may also be beneficial. Market volatility in USA may not affect investments in the UK and Europe so investing across different locations may minimise and offset the risks of all investments being at home.

Our appointed investment managers ensure that the components of the With-profits Fund are sufficiently diversified to represent a cautious approach to investing our members’ savings and investments.

Financial strength as at 31 December 2024

Total assets under management - £172.1m

Main Ethical With-profits Fund - £99.6m

Unit-linked Funds - £72.6m

Solvency capital coverage - 256% (unaudited)

Principles and Practices of Financial Management

In order to achieve its objectives in the most cost efficient manner the fund is currently 100% invested in Legal and General’s All Share Tracker Fund.

The purpose of the fund is to provide capital growth over the longer term. Healthy Investment's Ethical Unit-linked Life Fund for Child Trust Funds and continuation ISAs invests primarily (between 80 and 90%) in a mix of UK and global equities, with additional investments in government and corporate bonds, alternative investments, including real estate investment trusts and listed infrastructure projects and cash deposits.

The fund managers take an ethical approach to investing and aim to explicitly incorporate social, governance and environmental considerations into their investment strategy and stock selection decisions.

The Healthy Investment Ethical Unit-Linked Life Fund does not invest your child’s money in companies that cause harm. There are no investments in companies involved solely in coal mining, manufacturers of controversial weapons and companies who consistently fail to maintain the 10 principles of the United Nations Global Compact.

We are and have been throughout our long history committed to never investing directly in alcohol, arms, and tobacco industries and gambling and pornography providers. Where we use collective investments to gain exposure to a market or market index that it would be difficult to achieve through direct investments, we ensure that no more than 0.25% of the With-profits Fund is not invested in any one of these industries.

The Healthy Investment Ethical Unit-linked Life Fund invests in a mix of different investment assets including UK and global stocks and shares, fixed interest government and corporate bonds, commercial property and cash deposits.

The fund provides the investor with an investment in a single fund that is well diversified across a range of index tracking funds and individual investments within an agreed appetite for risk all invested with a commitment to ethical investing and consideration of environmental, social and governance standards.

Diversification across asset classes, industry sectors and geographic regions can help to reduce risk. The objective of a diversified portfolio is to optimise returns by investing in different financial sectors, each of which react differently to the same market event.

Although it doesn’t guarantee against loss, diversification is an important element of reaching long term financial goals whilst managing the level of risk within a fund within agreed limits.

Diversifying and balancing a portfolio is quite complicated and potentially more expensive if arranged by direct individual investment and may come with lower rewards.

The Healthy Investment Ethical Unit-linked Life Fund invests in assets which may rise or fall in value and you may get back less than you invested. Past performance is not a guide to future performance.

A guide to how we manage our Unit-linked Funds

The way in which your policy works has not changed in any way. We will continue to collect monthly premiums and the date on which a policy matures and is paid out will not change.

We worked really hard to make sure that all the money in the Ring Fenced Fund is paid out to previous members of Coventry Assurance. When we closed down the Ring Fenced Fund we replaced the non-guaranteed 15% final bonus we were adding to maturing policies with a guaranteed additional amount of 17.5% of the Savings Fund Guarantee or Sum Assured and the regular bonuses that we have already added.

This will not only increase the value of the amount that is paid out when the policy matures but we will guarantee the amount to be paid, providing premiums are paid until the maturity date.

When we have added this guaranteed additional amount to the savings plan members will not be eligible to receive any future bonuses.