Korea Investment Securities said it has launched its fourth integrated managed account (IMA) product and will take subscriptions from March 16 to March 24.

The newly launched "Korea Investment IMA S4" is designed as a two-year closed-end structure, with a minimum subscription of 1 million won. The return paid to clients is ultimately determined based on asset management performance and asset value at maturity. The targeted subscription amount is 300 billion won.

The product is managed with relatively stable corporate finance assets as its core assets, including domestic acquisition finance and corporate loans.

It prioritises stable preservation of principal and pursues excess returns relative to market interest rates. It diversifies into alternative investment assets that general retail investors have found difficult to access directly.

An IMA is a principal-payment obligation product in which a securities firm pools client deposits to invest in corporate finance assets and returns the management performance to clients.

Since the first product launch at the end of last year, funds have flowed in over a short period and it has established itself as a new alternative investment option, centred on individual investors. Cumulative subscriptions for Korea Investment Securities' IMA products through the third offering total about 2.1 trillion won.