The Co-opTrust Investment Services Limited targets high net worth individuals or organizations who have short to medium (periodic or lump sum term) funds that require to be invested for short and/or fixed periods of time.

The service is designed to take into account the following:

• The unique cash flow profile of the individuals or organization
• The need to ensure moderate to low investment risk

Unique Cash Flow Profile
The investments in this product are designed to match the projected cash flow profile of the client. Common tools used include a mix between treasury bonds and term deposits, pre-negotiated short-term funding arrangements with banks, and other cash flow management tools.
An individual or organization may from time to time find itself holding an excess cash position. The excess cash position may be subject to the following characteristics:

1. The cash held might be needed on short notice or upon expiry of a given period/term
2. The funds should not be subjected to any capital risk
3. The volume and schedule of drawdowns is unpredictable or uncertain
4. The funds can nonetheless be invested to optimize short term gains
5. For a client in this situation, wealth management can ensure that the return maximization objective is achieved while ensuring the above objectives are respected.

Wealth Management Services

This service is structured to ensure that the investments are moderate to low risk through ensuring that the portfolio of investments is well-diversified, invested in risk-free securities and that an Investment Manager takes personal responsibility for monitoring the portfolio and adhering to pre-agreed risk management measures with the client.
Investment Approach

We concentrate on fixed income investment on Interest-Bearing Assets (including Call Deposits, Fixed Deposits, Corporate Bonds & Kenya Government Bonds) which ensure that the principle amount invested is not eroded by the volatility of the market. These assets also earn interest which serves as additional income to the fund.
In addition, these assets are liquid and can be easily traded in the secondary market to make some capital gains.

Research Function

Our research department is dedicated to ensuring that Investment Managers are up to date with market updates and events that may cause direct or indirect risk to the assets under management. The research department achieves this by having a top-down analysis, where they begin at the macro-level, industry level, sector level for the particular asset, that is, for Quoted Equities (Shares), Corporate Bonds, Property and the unquoted equities.
The research department also closely monitors the interest rates, inflation and T/Bill as demonstrated by the graph below and enables the Investment Managers to make timely decisions when it comes to bond trading.

How do Wealth Management Services work?

The client enters into a Wealth Management agreement with Co-op Trust Investment Services Limited. The agreement states inter alia:

• The name of the specific Investment Manager responsible for returns
• The Investment Manager will at all times liaise with the client in decision making and implementation. It should be known that the specific Investment Manager receives guidelines from the investment committee and all implementations are countersigned by the Senior Investment Manager.

The agreed risk management guidelines

Wealth management involves investment in government securities and interest-bearing assets. These assets are considered risk-free or very minimal risk. Our internal risk management measures reinforced by a strict audit control function will ensure the funds are invested as per the agreed mandate with zero deviations tolerated.

The targeted rate of return

• ​​The funds will be invested in a portfolio of government bonds/interest-bearing assets. These are risk-free investments as the principal and interest repayments are guaranteed by the government.
• An active trading approach coupled with careful management of the portfolio duration and interest rates will ensure the fund realizes capital gains, in addition to the regular interest income.
• Fund liquidity will be guaranteed as these securities are quoted on the Nairobi Stock Exchange (also in the event that the client wants some exposure in Equities), meaning they can easily be sold off to realize cash as and when the need arises. Our status as a large Fund Manager will ensure we achieve economies of scale when buying or selling the securities, and when negotiating brokerage commissions.

Benefits of Wealth Management Services

The benefits to the client include:

• Ensuring adequate cash to meet payment obligation as they fall due, especially after the expiry of the term
• The Wealth Management Fund may be used as collateral (security) in case the client would want a loan facility with any bank
• Facilitates optimal investment of surplus cash and the investment income could form an important source of revenue to the client
• Allows for asset-liability modeling that ensures appropriate liquid assets are held which minimizes the probability of insolvency
• There are economies of scale and minimize costs as investments are made in the pool

Joining Requirements

• Execution of the Discretionary Investment Management Agreement
• Execution of the fee agreement
• Execution of a Deed of Adherence
• Submission of the deposit cheques as seed investment in the plan
• All the above will be processed by ourselves and forwarded to you for execution.

Co-opTrust Investment Services Limited Contact Details
Co-operative Bank Building
P. O. Box 48231-00100, Nairobi
Telephone Numbers: 020 3276532/020 3276000