NH Investment sells out second IMA product, raising 120 billion won on launch day

NH Investment & Securities said its "N2 IMA1 Mid-Term No. 2" product sold out its full 120 billion won ($79.4 million) allocation on the morning of its first day of subscription Monday.

The product is a closed-end individual management account (IMA) with a 27-month term and an annual benchmark return of 4.0%, with additional returns possible depending on investment performance.

The minimum subscription amount is 100,000 won. The company also improved investor accessibility by enabling 24-hour online enrollment during the subscription period, and the product features a shorter investment term than the No. 1 offering.

The product combines stability with a higher allocation to corporate finance assets — drawing on NH Investment & Securities' strengths in acquisition financing, equity capital markets and debt capital markets — while selectively incorporating alternative investment assets to offer additional return potential.

"With both No. 1 and No. 2 selling out ahead of schedule, we have again confirmed the market's strong interest in and trust of NH Investment & Securities' IMA," CEO Yoon Byung-woon said. "I believe investors responded positively to our approach of selecting assets based on proven corporate finance capabilities and building the portfolio before accepting customer funds."

He added that the company would "continue to provide differentiated investment opportunities that meet customers' asset management needs, and expand the IMA business as a venture capital supply platform connecting capital markets with the real economy."

The No. 1 product, launched earlier, also sold out at 400 billion won. Particularly, corporate funds accounted for more than 50% of inflows into the No. 1 product. Analysis of the investor composition for "N2 IMA1 Mid-Term No. 1" showed corporate investors at 55% and retail investors at 45% — a markedly different breakdown from competing products, where retail investors made up roughly 80%.

NH Investment & Securities attributed the relatively strong interest from corporate investors to its structure and capability of identifying diverse investment opportunities through its investment banking operations and managing assets only after rigorous screening and verification.