An income strategy for Asian investors

An income-focused portfolio comprising Pan-Asia local currency bonds can be a good option for regional investors who have local currency liabilities and portfolios that are too concentrated on US dollar-denominated bonds.
An income-focused portfolio comprising Pan-Asia local currency bonds can be a good option for regional investors who have local currency liabilities and portfolios that are too concentrated on US dollar-denominated bonds.PHOTO: REUTERS

Asia's ageing citizenry will increasingly need a portfolio that offers stable, recurring inflows

Developed Asia is ageing rapidly. In the case of Singapore, the number of senior citizens aged above 65 is projected to nearly double to 900,000 in 2030, from 500,000 now, according to government statistics.

As these individuals pass their prime working years, many are likely to work fewer hours and draw substantially lower total pay. This generation will increasingly need to rely on their accrued investments to generate a stable, recurring income stream to supplement basic public and private pension benefits, maintain a comfortable standard of living and cover unexpected expenses such as healthcare.

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A version of this article appeared in the print edition of The Sunday Times on April 29, 2018, with the headline 'An income strategy for Asian investors'. Print Edition | Subscribe