NH Investment & Securities said Friday it will accept first-come, first-served subscriptions for "N2 IMA1 No. 3," the third product in its integrated management account (IMA) lineup, from Tuesday through Monday.
The medium-term product carries a maturity of two years and three months, with total issuance of 120 billion won ($84.8 million). The most significant change from earlier offerings is an upward adjustment to the performance fee benchmark return rate, raised from 4.0 percent to 4.5 percent per year after fees — giving customers a more favorable return structure. A performance fee rate of 40 percent applies to any returns exceeding that benchmark.
Strong demand is expected for the new product, as the second IMA offering sold out within half a day of its subscription opening. With market interest rate volatility rising, the company says the higher 4.5 percent benchmark return makes the product an attractive option for investors seeking both stability and yield.
An IMA is a product in which a brokerage guarantees the return of principal and invests customer funds in corporate finance assets such as acquisition financing, corporate loans and corporate bonds to generate returns. NH Investment & Securities plans to leverage its top-tier domestic investment banking capabilities and credit standing to participate in the high-grade, medium-to-long-term corporate funding market and deliver stable returns.
The company will also hold a prize draw offering 50 hotel gift vouchers worth 500,000 won each to customers who sign up through the N2 channel.
"We prepared the third product by responding to the strong interest customers showed in the first and second offerings, reflecting market interest rates while drawing on our differentiated asset-sourcing capabilities," said Bae Gwang-su, chief executive of NH Investment & Securities. "We will continue to supply IMA products linked to competitive interest rates suited to market conditions and high-grade corporate finance assets, becoming a reliable partner for customers' asset growth."
Allocations for "N2 IMA1 No. 3" will be made on a first-come, first-served basis, and subscriptions may close early once the limit is reached. Customers can find details on enrollment and the event at NH Investment & Securities branches nationwide or through the mobile trading system (MTS) apps "NH Investment & Securities (N2)" and "Namuh."
NH Investment & Securities' IMA products have continued to sell out since launch. The second offering, "N2 IMA1 Medium-Term No. 2," sold out within half a day of opening subscriptions. The first product, a 400 billion won offering launched in early April, also sold out ahead of schedule.
th5@heraldcorp.com
