“Income products that provide regular payouts have been in vogue,” said Sally Wong, the chief executive officer at the Hong Kong Investment Funds Association. “The ageing population in Asia, as well as the low interest rate environment, are key contributing factors.”
Asian investors, spooked by a pandemic with seemingly no end in sight, are flocking to a growing segment of the mutual fund industry – income funds backed by corporate debt that pay out monthly.
Workers preparing for retirement in Hong Kong and Singapore have turned to income funds that offer regular payments instead of taking their pension savings in a lump sum. That’s becoming especially popular as central banks’ money-printing practices make it harder to preserve the value of cash.
