Mirae Asset Securities has launched its fourth integrated managed account (IMA) product, targeting a 100 billion won ($72 million) raise. The product features a new 5% benchmark return, up from the previous 4%.
TL;DR
- Mirae Asset Securities launches its fourth IMA product, aiming to raise 100 billion won.
- The new product features a 5% benchmark return, reflecting recent market interest rate increases.
- The product invests in a mix of interest-bearing assets and global innovative companies.
What happened
Mirae Asset Securities has introduced 'Mirae Asset IMA No. 4', a three-year performance-based product that ties returns to investment results. The minimum subscription is set at 1 million won, and the company aims to raise 100 billion won by the 27th. The subscription period may close early if the cap is reached on a first-come, first-served basis.
The benchmark return for performance fees has been raised to 5% annually, up from the previous 4%. This adjustment reflects recent increases in market interest rates and the Monetary Policy Board's decision to raise the base rate. A performance fee of 40% applies to returns that exceed this benchmark. It's important to note that the benchmark return is not a target return and may vary depending on how the IMA is managed.
Why it matters
This launch underscores Mirae Asset's commitment to expanding its IMA product line, which has seen strong interest from investors. The increase in the benchmark return highlights the company's response to changing market conditions, potentially offering more attractive returns to investors.
For developers and startup founders, this move signals a growing trend in financial products that tie returns to performance, which could open new avenues for investment and collaboration. Investors, on the other hand, may find this product appealing due to its stable interest income and potential for additional returns through investments in innovative companies.
Key facts
- Mirae Asset Securities has launched its fourth IMA product, 'Mirae Asset IMA No. 4'.
- The product aims to raise 100 billion won ($72 million) by the 27th.
- The minimum subscription is 1 million won.
- The benchmark return for performance fees has been raised to 5% annually.
- A performance fee of 40% applies to returns exceeding the benchmark.
- Investment assets include public and private corporate bonds, acquisition financing, mezzanine instruments, and redeemable convertible preferred shares in unlisted companies.
- Mirae Asset provides quarterly management reports to investors.
- All previous IMA products (No. 1 through No. 3) sold out and drew strong interest from customers.
Context
Mirae Asset Securities is a leading financial services company based in South Korea. The launch of its fourth IMA product comes amid a backdrop of rising market interest rates and a competitive landscape for performance-based investment products.
The company's strategy of diversifying its investment assets and management strategies reflects a broader industry trend towards offering more flexible and attractive investment options to meet varying investor needs.
This launch is part of Mirae Asset's ongoing efforts to strengthen its product competitiveness and cater to the growing demand for stable and high-performance investment products.