was successfully added to your cart.


2 types of cooperative investing through SEDPI joint ventures

There are two types of coop investing through SEDPI joint ventures (JV): coop share capital JV and coop working capital JV.

Coop share capital JV

In coop share capital JV, Sir Vince becomes a member of the coop and purchases share capital using SEDPI funds. This is done because only natural persons can become members of a cooperative and organizations cannot own share capital of cooperatives.

SEDPI executes trust agreement with Sir Vince which states that the owner of the shares is SEDPI. SEDPI then executes a joint venture agreement with social investors to cover their contribution in the coop share capital JV.

Cooperatives currently in the SEDPI share capital JV are:

  • Bansalan Cooperative Society (BCS)
  • Nabunturan Integrated Cooperative (NICO)
  • Nueva Segovia Consortium of Cooperatives (NSCC)
  • Pantukan Chess Club Cooperative (PCCC)
  • Panabo Multipurpose Cooperative (PMPC)
  • Sacred Heart Savings Cooperative (SHSC)
  • Tagum Cooperative (TC)
  • United Sugar Planters of Davao (USPD)

Coop working capital JV

In a coop working capital JV, SEDPI executes a joint venture agreement with the coop and releases funds. The cooperative then uses the fund for working capital such as purchase of raw materials, relending activities, payment of personnel and other overheads.

Instead of charging interest, SEDPI charges a fixed amount as a service charge. The service charge together with the joint venture contribution will be paid quarterly to the social investor’s wallet. Balance in the wallet does not earn and must be reinvested if the social investor wants to take advantage of compounding effect.

Cooperatives currently in the SEDPI working capital JV are:

  • Nueva Segovia Consortium of Cooperatives (NSCC)
  • Pantukan Chess Club Cooperative (PCCC)
  • United Sugar Planters of Davao (USPD)

Alalay sa Kaunlaran, Inc. (ASKI) and Organic Options, Inc. are not cooperatives but follow the same principal of a working capital joint venture.

Share capital versus working capital

The main difference between the two is in execution, SEDPI can directly enter working capital JV with cooperatives; while Sir Vince places share capital in coops on behalf of SEDPI. Share capital payouts are done yearly whereas working capital are quarterly.

Returns and payouts

Share capital JV earns through dividends, and working capital earns through service charge. Dividend rates are variable which is based on the financial performance of the cooperative for the year. Service charge is fixed based on the amortization set in the working capital joint venture.

Payouts are not automatically placed into investors’ JV contributions but rather added to their wallets. When payouts are credited to the wallet, the balance do not earn which makes it non-compounding.

Share capital has yearly dividend declaration and payouts. Dividend payout cutoff date is every 31st of December and shall be posted in March to May the following year when the actual payout from the coop happens. Cooperatives usually hold their general assembly in these months and is also the time when they declare dividends.

The principal amount of the contribution for share capital JV is not paid out unless expressly withdrawn by the social investor.

Service charge and principal payout for working capital joint venture cut-off for each quarter is March 31st, June 30th, September 30th, and December 31st, with posting dates two weeks following.

Joint venture contribution

Both joint ventures require a minimum JV contribution of PhP10,000 and a maximum JV contribution of PhP500,000 per cooperative. This ensures proper diversification of a social investor’s portfolio and avoids the concentration of social investors to specific cooperatives.


There is no entry fee to participate in either of the joint ventures. A 3% exit fee applied to the total amount withdrawn if the joint venture contribution is redeemed before two years.

SEDPI earns through profit sharing arrangement. For share capital joint venture, dividend is split 70%-30% in favor of the social investor. This means that in times where no dividend is declared, SEDPI does not earn anything for that year.

For working capital joint venture, SEDPI takes a portion of the service fee charged to the cooperative or organization. The rate quoted is the net amount that the social investor gets. Should there be default in payouts, SEDPI will not earn anything from the transaction.


SEDPI does not guarantee returns nor payouts to social investors. This is solely based on the performance of the cooperative or organization chosen.

Social investors and SEDPI, as co-venturers, share in the profits and losses of the social investment in proportion to their joint venture contribution. Losses on the social investors joint contributions are to their account. In the same manner, SEDPI will also absorb losses based on its contribution to the total fund of the joint venture.

To avoid moral hazard, SEDPI will always make sure that it is exposed to the cooperatives and organizations it offers for joint venture participation. Its joint venture contribution should be equal or greater than 20% of the total accumulated joint venture contribution.


Sources of information and practical tips on money management

Different kinds of investments

Preparing for retirement

How are articles on retirement

  1. 10 Commandments of retirement
  2. Mga kinakatakutan ng retirees at paano ito paghahandaan
  3. Magkano ang matatanggap mong SSS pension upon retirement

Watch videos on money management

Watch Usapang Pera episodes

Subscribe to Usapang Pera Youtube channel


Get in touch with Sir Vince

Message Sir Vince through FB messenger

Send an email to Sir Vince

Like Vince Rapisura page


Join online groups of Sir Vince

Join Usapang Pera Group

Join Sir Vince blog newsletter



One Comment

  • Maria Fatima Gabas says:

    Sir vince interesado po ako mag invest anu po ba pinakamaganda para sa akin na ofw. maraming salamat po

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: