Professional Evaluation of the Management of Cooperative Investment Portfolios in Anambra State

Cooperative societies with accumulated surpluses face the strategic challenge of investing excess capital to generate returns for members while maintaining liquidity for operational needs and loan demands. This study professionally evaluated the investment portfolio management practices of cooperative societies in Anambra State, South East Nigeria. A diagnostic assessment methodology was employed, using document review of financial statements and investment records from eighteen cooperatives in Onitsha, Awka, and Ogidi LGAs, supplemented by structured interviews with cooperative treasurers and two financial advisors specialising in cooperative finance. Investment dimensions assessed included portfolio composition, risk diversification, return on investment, compliance with cooperative byelaw investment provisions, and member disclosure practices. Results showed that 61.1 percent of surplus funds were held in low-yield bank savings accounts, representing a significant opportunity cost given inflation rates. Equity investments in cooperative-related enterprises were made in only 22.2 percent of societies. Real estate investment, while present in 33.3 percent of societies, was not linked to member housing objectives in most cases. Return on investment was below prevailing inflation rates for 72.2 percent of cooperatives, meaning real member wealth was being eroded. Investment decisions were made without formal member mandate in 55.6 percent of cases. The study concludes that investment management is a critical weakness in Anambra cooperative societies and recommends cooperative investment committees, external financial advisory support, and mandatory member-approved investment policies as minimum governance standards.

Keywords: investment portfolio management, cooperative societies, Anambra State, cooperative finance, member returns