NH Investment & Securities' integrated investment account (IMA) No. 3 product raised its entire target amount of 120 billion won just one day after subscriptions began.
According to NH Investment & Securities on the 19th, "N2 IMA1 mid-term type No. 3," which went on sale on the 18th, reached its target fundraising amount of 120 billion won in a day. The original subscription deadline was 3 p.m. on the 24th, but sales closed early as investor demand surged.
NH Investment & Securities said the higher performance fee hurdle rate, raised to 4.5% annually from the previous 4.0%, helped drive the strong response to the product. When the hurdle rate rises, the threshold at which investors begin to pay a performance fee also goes up, making the structure relatively favorable for investors.
IMA is a product that only super-sized comprehensive financial investment companies with at least 8 trillion won in equity capital can offer. Even if losses occur during management, if held to maturity, the securities company pays back the principal.
NH Investment & Securities plans to pursue revenue by selecting and managing high-quality investment bank (IB) asset based on its AA+ credit rating. The company said interest continues from investors seeking a destination for mid-term surplus funds.
Bae Gwang-su, CEO of NH Investment & Securities, said, "This mid-term type No. 3 closed earlier than scheduled after receiving a strong response from customers thanks to improved conditions such as raising the performance fee hurdle rate," and added, "We will continue to introduce IMA products with investor-friendly revenue structures and stable management capabilities."