NH Investment & Securities (005940.KS) fully subscribed the third offering of its integrated management account (IMA) product just two days after its launch.
The company said on the 19th that the "N2 IMA1 Mid-Term No. 3," which began sales the previous day with a size of 120 billion won ($88 million), completed its offering ahead of schedule. The subscription had originally been set to close on the 24th.
NH Investment & Securities attributed the strong demand for the third IMA offering to raising the performance fee benchmark return to 4.5% a year from the previous 4%. A higher benchmark return raises the threshold at which investors begin paying performance fees, making the structure relatively more favorable for them. The company said interest continues to come from investors seeking a place to park medium-term idle funds.
NH Investment & Securities holds a credit rating of "AA+," one notch above its competitors and the highest among domestic securities firms. Based on this strong rating, the company said it plans to select and manage high-quality investment banking (IB) assets in pursuit of returns.
The IMA is a product that only super-large comprehensive financial investment firms with equity capital of at least 8 trillion won are permitted to handle. Under its structure, the securities firm repays the principal to investors who hold the product to maturity, even if losses occur during management. NH Investment & Securities earlier introduced its first IMA in April this year, a 400 billion won offering that completed its subscription, and its second IMA, a 120 billion won offering launched in June, also sold out.
