NH Investment & Securities said on the 26th it will launch the first integrated managed account (IMA) product that invests in corporate finance asset.
An IMA pools clients' deposits to invest in corporate finance-related asset and pays the management results to clients. It is characterized by offering individual clients access to the corporate finance investment space that has been difficult to reach with existing financial products.
The newly launched "N2 IMA1 midterm type No. 1" is a tranche-issued product with a 2.5-year maturity, and subscriptions will be taken from the 31st through Apr. 6 during branch business hours. The total offering is 400 billion won, and it may close early if the cap is reached.
NH Investment & Securities said the product will be managed focusing on asset related to corporations' fundraising, such as acquisition finance and corporate loans, and is structured to build revenue on the basis of stability. By diversifying across multiple corporate finance asset, it reduces dependence on any single asset and seeks additional returns over market interest rates through stable management.
Revenue will depend on management performance, with a base yield of 4% a year. Performance fees apply to performance above that. In addition, if held to maturity, NH Investment & Securities agrees to pay principal, and early redemption is restricted.
NH Investment & Securities plans to select and manage investment asset based on capabilities accumulated in corporate finance and investment banking (IB). Drawing on experience across the capital markets, it will continue to build portfolios that consider both stability and profitability.
Chief Executive Officer Yun Byeong-un of NH Investment & Securities said, "IMA is a new investment method that connects corporations and investors, providing clients with a stable investment vehicle and supplying corporations with medium- to long-term funds," adding, "We will deliver stable management performance based on the company's credit quality and IB capabilities."