Korea Investment Securities said on Tuesday it has launched its second integrated managed account (IMA) product and will take subscriptions from Jan. 16 to Jan. 21.

An IMA is a performance-linked dividend product with an obligation to pay principal. Securities firms pool client deposits and invest them in corporate finance assets such as venture capital, returning results to clients based on performance. Korea Investment Securities launched South Korea's first IMA product in December last year and drew 1.059 trillion won over 4 trading days.

The newly launched Korea Investment IMA S2 is a closed-end structure with a 2-year, 3-month maturity. The minimum subscription is 1 million won. The final return paid to clients is determined by asset management performance and asset value at maturity. The subscription size is about 1 trillion won.

The product will be managed with relatively stable corporate finance assets as core holdings, such as domestic acquisition financing and corporate loans. It will diversify into alternative investment assets that individual retail investors have found difficult to access directly, aiming to preserve principal as a top priority while seeking returns above market interest rates.