Co-operative Bank through Co-op Trust Investment Services (CISL) and Kingdom Securities Limited (KSL) offer a variety of investment and consulting services.
Co-op Trust Investment Services Limited (CISL) is a wholly owned subsidiary of The Co-operative Bank of Kenya Limited and has no foreign shareholding. We are capitalized at Ksh 248 million and manage assets in excess of Ksh 50 billion as at 31 December 2015.
Being part of the Co-operative Bank of Kenya Limited, CISL benefits from access to the deep pool of resources for more effective delivery of clients’ objectives and at the same time, ensuring best industry practices are upheld.
Services offered through Co-op Trust Investment Services Limited include Co-op Trust Wealth Management Services and stock trading and advisory services through Kingdom Securities.
Co-op Trust Wealth Management Services
The Co-op Trust Wealth Management Services targets high net worth individuals or organizations who have short to medium (periodic or lump sum term) funds which 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:
- The cash held might be needed on short notice or upon expiry of a given period/term
- The funds should not be subjected to any capital risk
- The volume and schedule of drawdowns is unpredictable or uncertain
- The funds can nonetheless be invested to optimize short term gains
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
- Risk Management
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 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 modelling that ensures appropriate liquid assets are held which minimises the probability of insolvency
- There are economies of scale and minimised costs as investments are made in pool
- 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-op Trust Investment Services Contact Details
- Co-operative Bank Building
- P. O. Box 48231-00100, Nairobi
- Telephone Numbers: 020 3276532/020 3276000
Kingdom Securities Limited
Kingdom Securities Limited (KSL) is a licensed as a stockbroker at the NSE. The company formally commenced operations in June 2009 succeeding the previous Bob Mathews Stock Brokers Limited. As a licensee of the NSE, we are engaged in the provision of stock trading and advisory services. We are located on the 5th Floor of Co-operative Bank House, Nairobi.
Services offered through Kingdom Securities include:
- Buying and selling of shares and bonds on behalf of clients
- Offering advice about investment in shares and bonds
- Assisting investors to fulfil the following key needs:
- Transfers of shares
- Timely and precise execution of deals
- Daily and weekly markets updates
- Research information
To buy and sell shares, you need to have a CDS account.
- CDS Account Opening Requirements
- Personal and Joint Accounts
- Identification card/valid passport of each account signatory
- Passport size coloured photograph/digital passport photo of each account signatory
- Duly filled and signed CDS 1 (account opening) form and KSL addendum
- Diaspora – Kenyan
- Once the client is introduced through the Co-op Bank Diaspora Banking department, they need to provide the following:
- Certified copy of a valid Kenyan ID or Kenyan Passport (Personal Detail/Bio Data page and Renewal page)
- Recent coloured passport photo
- Duly filled & signed CDS1 (account opening) form and KSL addendum
- The CDS 1 form, KSL addendum form and all attachments should be stamped by a Diaspora Banking Officer
- Foreign Persons in Kenya
- Valid passport
- Notarized/locally certified recent coloured passport photo
- Letter from the embassy (where the embassy is available in Kenya)
- Notarized copy of entry/work permit
- Duly filled & signed CDS 1 (account opening) form and KSL addendum, that should be notarized or locally certified by a notary public/embassy
- Business Accounts, Clubs, Societies, Associations, Missions, NGOs, Trade Unions
- Identification cards / valid passports of each signatory (authorized officials) signing the documents
- Signatories’ passport size photographs, coloured
- Duly filled CDS 1 (account opening) form and KSL addendum, signed by the signatories of the account
- Where the signatories are not the officials of the entity, a resolution or letter from the officials authorising the current signatories to operate the account on behalf of the entity
- KRA PIN Certificate of each signatory
- Copy of registration certificate (bring original for authentication purpose)
- Memorandum and Articles of Association/Entity’s Constitution where applicable
- Certificate of Incorporation or Certificates of Approved Enterprise for foreign limited liabilities
- Minutes to resolve opening of a CDS account with Kingdom Securities Limited where applicable, for example, for societies
- A Director’s Resolution to open the CDS account with Kingdom Securities Limited, specifying the signing mandates with which the account will be operated and naming the signatories to the account
- Introduction letter from the relevant authority, for example, Ministry of Education, Social Services, Church HQ, Central Organization of Trade Unions and NGO Registration Board
Note: For Limited Companies, a search has to be conducted to ascertain ownership as below:
- Bank’s legal department charges for the search apply
- The funds will be deposited to A/C 01240000020568 SEARCH FEE-COMPANY SECRETARY
- A copy of the Registration Certificate, the page that has the directors & a copy of bank deposit/payment slip shall be forwarded to legal department with a memo to conduct the search
- Clients will be allowed to trade once the search results are received and are satisfactory
- Self-help Groups
- Identification cards/identification report/valid passports of each signatory
- Signatories’ passport size photograph, coloured
- Duly filled & signed CDS 1 (account opening) form and KSL addendum
- Copy of Registration Certificate, stamped by the relevant registration office
- Group constitution
- Minutes to resolve opening of a CDS A/C with Kingdom Securities Limited
- A list of group members with ID numbers duly signed by members and stamped by the relevant registration office
Introduction letter from the relevant registration authority
Kingdom Securities Contact Details
- Co-operative Bank Building, 5th Floor, Haile Selassie Avenue
- P.O. Box 48231-00100, Nairobi
- Telephone Number: +254 20 3276676
- Fax: +254 20 3276156
- Email: firstname.lastname@example.org
With years of experience as a licensed custodian since 2001, our heritage and staff complement gives us in-depth local market knowledge and expertise, allowing us to deliver distinctive customer experiences through our advanced technological platform, execute at speed and provides the agility to tailor new products for our clients.
Solutions to meet your needs
- Safekeeping and settlement: Ensuring that transactions are completed with minimum manual intervention, for example, when a client buys bonds or shares, they are indeed received as the payment is made.
- Income processing and corporate actions: Keeping track of or collecting dividends, bonuses, rights issues, share splits and providing information to help you manage your cash assets effectively and maximize your investment returns.
- Record-keeping and reporting: Providing reports, valuations and reconciliations of assets held as well as transaction status.
- Technologically advanced platforms: We deliver our solutions through advanced IT infrastructure, processing technologies and rigorous operational controls. With our corporate internet banking, you are able to do view and download statements as well as initiate payments from your device, whether you are in the office or at home.
- Compliance monitoring: Ensuring that investments are done as per the client’s laid out regulations/investment documents.
- Proxy voting
- FX (treasury), cash and liquidity management
Value added services
- Fiduciary and trustee services: We offer trustee services whereby we exercise due diligence and ensure that all schemes/funds under our trust comply with the trust deed and rules. Our role as the trustee includes acting in the best interest of our clients. We have the pride and experience of being the first trustee of a REIT in Kenya.
- Financing of investments in the stock exchange: We grant overdraft facilities to help you take advantage of market movements.
- Parcels/physical items for safekeeping: Provision of rental boxes/safe custody boxes is provided at our Co-op Trust Plaza where you rent a box and get a key for the rental box. Alternatively, you can walk into any of our various branches, sign the appropriate forms and the documents will be kept for you at a fee as per the tariff guide.
- Assistance in setting up different types of schemes based on our vast experience.
Frequently Asked Questions
- How much does it cost?
The fee is competitive and charged as per the agreed contract. It is often a percentage based on the size of assets we will handle and the client’s requirements.
- How does one open a custodial account?
By signing the custodial contract, providing the KYC documents and signing mandate. We will provide you these documents which will be customized to meet your requirements.
- Who can be a custodial client?
We accept all customers and provide them with a product to suit their needs. The client may be a pension fund, unit trust, SME, NGO, Government body or parastatal, corporate/private institution, or a High Net Worth Individual (HNI).
- Who can assist me with additional custodial information?
- Email us on email@example.com
- Call Lydia Muchiri - Head Custodial Services on 020 3276237 or 0711049237
- Contact us through our social media channels (WhatsApp, Facebook and Twitter)
- Visit our office at CIC Plaza B, 3rd Floor, Mara Road, Upper Hill
Fixed Income & Money Market Products
We act as an agent for customers looking to invest in government (treasury) bills and bonds, at a minimal fee. We also provide fixed and call deposit investment accounts.
This is a debt security issued by the Central Bank of Kenya (CBK) on behalf of the government to raise funds to support the budget.
It is a long term investment ranging from 2 to 30 years.
When a customer invests in a Treasury Bond, they are usually lending money to the government and they earn interest on it. Bidding on the bonds is done on a monthly basis at an auction.
- Risk free – the principle and interest payments are guaranteed
- Specified rate of interest paid during the life of the bond
- Face value repaid on maturity of the bond
This is a short term debt security with maturity of not more than one year. The investment periods are 91 days, 182 days and 364 days.
Bidding on the bills is done on a weekly basis at an auction.
- Short term investment hence one is able to get the principle amount after a short time
- The bills are bought at a discount depending on the yield thus the gains are realized upfront
Fixed Deposit Account
This is an investment account in which a customer deposits a specified amount of money for a certain/fixed period of time.
The period ranges from 1 to 12 months.
The customer is paid a competitive rate for the period the money is held in the account.
Call Deposit Account
This is an investment account in which a customer deposits a specified amount of money for an indefinite period of time for a return. One can ‘call’ or withdraw the funds any time subject to a minimum period of 7 days and prior notice of 24 hours.
Are you a bank looking for a correspondent bank in Kenya with the right expertise?
The Co-operative Bank of Kenya has an experienced Correspondent Banking team with in-depth knowledge of international banking products and practices to meet your business requirements. We believe in the strength of building lasting relationships for mutual benefit.
Our Correspondent Banking department offers a range of services to our correspondent banks including:
- Trade Finance
- Documentary Letters of Credit
- Local and Foreign Guarantees
- Documentary Collections
- Irrevocable Reimbursement Undertaking
- Risk Participation
- Cash Management
- KES Vostro Accounts
- KES Collection Services
- Payment Services – The Co-operative Bank of Kenya Swift Code: KCOOKENA
- Money Market and Fixed Income
- Foreign Exchange Spot, Swaps and Forwards