HSBC announced the establishment of a retirement-themed fund category under the umbrella of its financial products to cater the related needs of its clients. These funds will offer an annual target dividend payout rate of 6%, providing predictable monthly income to support retirees while safeguarding the long-term value of retirement assets.

The bank cited government forecasts predicting that over one-third of Hong Kong's population will be aged 65 or above by 2043. These funds allow investors to plan their retirement more effectively, aligning with the government's recently launched “Silver Economy” initiative.

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At launch, the retirement-themed fund category will include five funds, all exclusively available to HSBC clients. These funds will offer clients diversified investment opportunities, covering different asset classes, regions, industries, and currencies.

The bank stated that the level of fees associated with investment funds apparently impacts net investment returns, especially for long-term investments like retirement funds. The funds selected for HSBC's retirement-themed category will charge management fees of 1% or less, lower than most of its multi-asset funds.