For Kenyans looking to grow their savings while keeping funds accessible, the Madison Money Market Fund offers a practical solution. This low-risk investment fund allows individuals and corporations to earn competitive returns, preserve capital, and maintain liquidity for short-term financial needs. Here’s a complete guide on what you need to know.
What Is the Madison Money Market Fund?
The Madison Money Market Fund is a unit trust investment that primarily invests in short-term debt securities such as:
- Treasury bills and bonds
- Bank deposits
- Commercial papers
The fund is designed to preserve capital while generating returns that aim to beat inflation. It is ideal for savers seeking short-term investment options with high liquidity and predictable performance.
Who Should Consider the Fund?
The fund is suitable for:
Individuals who:
- Want to preserve capital
- Need an emergency fund
- Are saving for short-term goals such as school fees or private projects
- Require quick and easy access to their funds
Corporate investors who:
- Want capital preservation
- Need a solution for cash flow management
- Require liquidity for short-term operational needs
Key Benefits of the Madison Money Market Fund
- No entry or exit fees: Start and withdraw without penalties.
- High liquidity: Access your funds on short notice.
- Competitive yields: Typically 2% above T-bills.
- Monthly compounding: Interest is reinvested monthly to grow your capital.
- Flexible contributions: Top up your investment with as little as KES 1,000.
- Transparency: Receive investment statements and market updates on the customer portal, plus SMS and email alerts for all account activity.
Features and Investment Requirements
Investment Minimums:
- Initial investment: KES 5,000
- Minimum top-up: KES 1,000
Withdrawals:
- Processed within two working days (T+2), providing easy access while earning interest.
Custody and Oversight:
- Funds are held in a custodial account, with activities overseen by a corporate trustee, ensuring safety and compliance with the Capital Markets Authority (CMA).
Payment Options:
- RTGS, EFT, PesaLink, direct deposits, internal transfer
- M-PESA Paybill: 653039 (use client member number as reference)
Requirements for Individuals:
- Completed application form
- National ID or Passport
- Proof of bank account (ATM card, cancelled cheque, or bank statement)
- Passport-size photo
Requirements for Corporates:
- Certificate of incorporation
- Signatory IDs and passport copies
- Board resolution authorizing account opening
- Bank account verification
Historical Performance
Madison Money Market Fund has consistently outperformed average commercial bank deposit rates in Kenya.
| Year | Madison Fund Return | Average Bank Deposit Rate |
|---|---|---|
| 2020 | 9.45% P.A. | 6.82% P.A. |
| 2019 | 9.16% P.A. | 7.41% P.A. |
| 2018 | 9.46% P.A. | 7.96% P.A. |
| 2017 | 8.70% P.A. | 7.52% P.A. |
| 2016 | 11.56% P.A. | 7.10% P.A. |
| 2015 | 11.95% P.A. | 6.93% P.A. |
These returns are indicative and based on past performance, which is not a guarantee of future returns.
Illustrative Example
An initial investment of KES 100,000 in the Madison Money Market Fund for one year at an indicative yield of 9.45% could earn:
- Interest after tax: KES 9,805.79
- Total value after one year: KES 108,334.92
Interest is compounded monthly, allowing your savings to grow steadily over time.
Why Choose Madison Money Market Fund?
The fund is ideal for investors seeking:
- Capital preservation
- Predictable, competitive returns
- Flexibility to access funds without penalties
- Professional management of short-term debt instruments
With its combination of high liquidity, transparent reporting, and competitive yields, the Madison Money Market Fund is a reliable option for both individuals and corporate savers in Kenya.
For more information or to invest, visit Madison Investment Managers, email madisoninvestmentmanagers@madison.co.ke, or call +254 20 2864500.
