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As of 29th September 2023, the Co-Op Money Market Fund, a unit trust product by the Co-Op Trust Investment Services Limited (CISL), had an effective yield rate of 12.9%, positioning it among the top 6 highest-yielding money market funds in the country. Today, the yield rate is expected to be much better, especially considering it averaged under 10% in 2022.
Investment-wise, the Cooperative Bank money market fund requires a minimum of Ksh 2,000 to join, but there are no minimum top-ups. Even better, the account management fee is only 1% per year, and withdrawals take three days to process.
The Capital Markets Authority (CMA) regulates the Cooperative Trust Money Market, which means compliance with the CMA’s regulations and standards. Its investment portfolio features commercial papers, cash deposits, equities, and government bonds, to name a few.
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This review will walk you through everything you must know about the Cooperative money market fund, especially the following:
- What’s the Cooperative Bank money market fund?
- How does the Cooperative Bank money market fund work?
- Why choose the Cooperative Bank money market fund?
- Who should invest in the Cooperative Bank money market fund?
- Cooperative Bank money market fund performance compared to others
- Cooperative Bank money market fund risks
- How do you join the Cooperative Bank money market fund?
- How to withdraw from the Cooperative Bank money market fund
- Cooperative Bank money market fund contacts
Let’s dive in!
In a hurry? Below is an overview of the Cooperative Bank money market fund:
Co-Op Money Market Fund Fact Sheet
| Fund Manager | Co-Op Trust Investment Services Limited (CISL) |
| Regulator | Capital Markets Authority |
| License Number | 031 |
| Effective Annual Yield | 12.9% (as of 29th September 2023) |
| Minimum Deposit | Ksh 2,000 |
| Minimum Top-Up | None |
| Withdrawal Processing | 3 business days |
| Management Fee | 1% per annum |
| Withholding Tax | 15% |
| Risk Profile | Low risk |
| Underlying Securities | Commercial papers, cash deposits, equities, treasury bonds, treasury bills, cash equivalents, fixed deposits, and bank call deposits |
| Interest Compounding | Daily |
What’s The Co-Op Money Market Fund?
The Co-Op Money Market Fund is a collective investment scheme by Coop Trust Investment Services Limited (CISL) that allows members to pool funds and invest in low-risk interest-bearing securities like commercial papers, cash deposits, equities, treasury bonds, treasury bills, cash equivalents, fixed deposits, and bank call deposits.
Its top management features Dr. Gideon Muriuki (the CEO and Group Managing Director) and Nicholas Ithondeka (Co-Op Trust Investment Services Limited Managing Director). The two guys are responsible for driving the fund as a whole.
How Does the Co-Op Trust Money Market Fund Work?
The Co-Op Trust Fund works like every other money market fund in the country. One key player is the fund manager, Coop Trust Investment Services or CILI. The Capital Markets Authority licenses CILI, which has the registration number 031. CILI manages the investment portfolio and advises unit holders or members on the best investment opportunities.
CILI, however, doesn’t work alone. In fact, the fund manager doesn’t keep the pooled funds; that’s the work of a CMA-certified custodian. The trustee comes into play to ensure the fund manager and custodian comply with CMA’s standards.
Overall, investments earn interest income, which is compounded daily, and the fund is subject to a 15% withholding tax. The minimum investment for new members is Ksh 2,000, but no top-up restrictions exist.
The account attracts an annual management fee of 1%, which is relatively low, and withdrawal processing takes a maximum of 3 business days upon notifying the fund manager.
Why Choose the Co-Op Bank Money Market Fund?
You may want to choose the Cooperative money market fund as your next investment option for different reasons, which include the following:
- Good return – Over the last few months, the Co-Op money market fund has registered an average effective annual return of over 10%, which is pretty decent.
- Fast withdrawal – It takes three business days to process funds from your Cooperative money market fund upon request. That allows you to become liquid pretty fast.
- Affordability – Unlike most money market funds, which require Ksh 5,000 and above and some up to Ksh 1m, you only need a minimum investment of Ksh 2,000 to join the Cooperative money market fund. That makes it affordable. Even the 1% account management fee is relatively cheap.
- Top-up flexibility – Co-Op Trust has no minimum top-up limits. Plus, you can top up any time. That’s flexibility!
- MPESA deposits – The money market fund now allows you to make your deposits via MPESA, which is convenient.
- Safety – CIL is CMA-certified, which means the fund manager must comply with all CMA laid-out safe money market fund practices. That protects your investment. Moreover, the fund manager prioritizes low-risk securities.
Who Should Invest?
The Cooperative Money Market Fund suits investors aiming for short-term, low-risk investment instruments with a reasonable yield rate. That includes not only individual investors but also groups.
But more than that, the fund itself is a fantastic savings vehicle. You can open a Cooperative money market fund account as your emergency fund, owing to its high liquidity and impressive yield rate. You can also use it as your college fund for the same reasons.
Moreover, the fund can help you save up for a grander purchase, such as a property or car, and to cater for a considerable expense, such as a vacation. Don’t, however, forget business capital. It allows you to raise an amount that is enough to start a business. And if you already have a business running, you can save up to add more inventory or equipment.
The bottom line is that you can use the Co-Op money market fund for whatever savings goal you want and as an investment option with decent return and low risk.
Cooperative Bank Money Market Fund Performance
Let’s look at the performance of the Cooperative Bank money market fund last year.
As of 4th August, 2023, the Cooperative Money Market Fund had an effective annual yield rate of 10.90%, according to a Cytonn Report. That saw the fund rank 14th overall.
At the top of the chart was the Enwealth Money Market Fund, with an effective yield rate of 12.42%, and in second position was the Lofty-Corban Money Market Fund, with an effective yield rate of 12.39%.
Completing the top three list was the Cytonn Money Market Fund, which had a yield rate of 12.37%. According to the Cytonn Report, other high-yielding funds include the Gen Africa Money Market Fund and Etica Money Market Fund, averaging over 12% in return.
While the 10.90% yield rate for August 2023 by the Co-Op Trust Money Market Fund wasn’t the most impressive, its performance the following month was notable. Another Cytonn Report shows its effective annual rate as of 29th September 2023 to be 12.9%. That even saw its ranking improve from 14 the previous month to 6.
There was also a shakeup at the top of the pyramid, where Gen Africa Money Market Fund topped the list with an effective yield rate of 14.2%. Enwealth and Cytonn took positions 2 and 3 with 13.9% and 13.8%, respectively.
Here’s how the top 6 money market funds compare based on yield rate:
| Rank | Money Market Fund | Effective Annual Yield as of 29th September 2023 |
| 1 | Gen Africa Money Market Fund | 14.2% |
| 2 | Enwealth Money Market Fund | 13.9% |
| 3 | Cytonn Money Market Fund | 13.8% |
| 4 | Lofty-Corban Money Market Fund | 13.2% |
| 5 | Etica Money Market Fund | 13.0% |
| 6 | Co-Op Money Market Fund | 12.9% |
What Are the Risks?
Like every other money market fund in the country and globally, the Co-Op money market fund faces the risk of unpredictable returns due to the nature of the financial market. The financial market is generally volatile – today’s yield rate does not reflect tomorrow’s.
While recent performance indicates that the Cooperative money market fund’s curve has been rising steadily, there’s no assurance that it’ll continue growing in the next few months. It’s a gamble you may have to take – which applies to all money market funds.
How to Join Co-Op Money Market Fund?
You can join the Cooperative Bank money market fund online using these three steps:
Step 1 – Fill out the risk profiling application form
Ask for the risk profiling form from the fund manager. You can use the email address co-optrust@co-opbank.co.ke to do it. Upon receiving the form, fill it out.
Step 2 – Attach KYC Documents
You’ll need to attach the relevant ‘Know Your Client’ documents, which include the national ID, KRA PIN, passport photo, and proof of residence.
Step 3 – Make the necessary deposit
Before you can submit your application via email, make the necessary deposit using the payment information on the application form. Remember, the minimum deposit for new registration is Ksh 2,000, and you can do it via money transfer, MPESA, or check.
Step 4 – Send back the application
Now that you have a filled application form and KYC documents, you can forward the details via email to the fund manager, Co-Op Trust Investment Services Limited. Then, wait for their reply and further instructions. I’ll share the contact details later if you want to inquire quickly.
Co-Op Money Market Fund Withdrawal
Regarding fund withdrawal, the fund manager doesn’t outline the clear steps on the website. What’s clear, however, is that you must notify them first, and then it takes up to 3 days for the funds to be processed.
You can request the fund withdrawals via email (co-optrust@co-opbank.co.ke), and the fund manager will reply.
Co-Op Trust Money Market Fund Contacts
You can reach out to the fund manager, Co-Op Trust Investment Services Limited, for inquiries about the money market fund using any of these contact routes:
- Physical Address: Cooperative House, 5th Floor, Haile Selassie Avenue, Nairobi
- Postal Address: 48231 – 00100, Nairobi
- Email Address: co-optrust@co-opbank.co.ke
- Call: 0 711 049 120, 0 711 049 496, or 0 203 276 120
- WhatsApp: 0 736 690 101
You can also go to the company website’s homepage, Contact Us section, and fill out a quick inquiry form. The form requires you to fill out your name, contact info, and inquiry message, and the fund manager will get back to you.
Concluding Thought:
The above guide covers everything to know about the Co-Op Money Market Fund. The Cooperative money market fund is a viable investment vehicle because of its ever-improving yield rate and affordability.
It’s, however, not the only one. Visit our online shop today for more investment opportunities, financial management tips, and ideas. We have a myriad of resources you could benefit from.
