Nairobi — Old Mutual Investment Group has introduced two new funds barely two months after the launch of another targeting retail investors.

The funds: Bond fund and the East Africa Fund are expected to offer investment diversification in bond securities and regional portfolio equities.

According to Ms Laura Chakava, managing director investment services, focus of the bond is on the growth element that it provides to investors.

"The bond fund will offer a medium where investors can obtain diversified portfolio of bond securities in both local and offshore bonds," she said.

Old Mutual expects to trade the funds at the Nairobi Stock Exchange, Ugandan Securities Exchange and the Dar-es-salaam Stock Exchange. Both funds are priced at a minimum lump sum of Sh200,000.

"The funds target the growing segment of Kenyan investors looking beyond the local environment and seeking to take advantage of the growth in other East African economies," explained Ms Chakava on the East Africa fund.

Investment in the bond market was until recently a preserve of institutional investors because of the high capital entry requirement that it came with. Competition in the market has, however, seen some reduction in the minimum entry capital.

The collective investment vehicle has received renewed focus as a way of raising funds among corporate firms and the government.

Already, the Kenyan Government plans to raise Sh350 billion through an international infrastructure bond.

"This bond offers the government an opportunity to ensure that it raises enough funds to meet its obligations to the public. Infrastructure has been a challenge and the bond will take care of it," said Mr David Nalo, permanent secretary ministry of East Africa Co-operation.

Growth in the bond market has been remarkable attracting more players. As at March this year, secondary trading of Treasury bonds was estimated at Sh14 billion.