Wrap account attracts more than 10 billion in a month
A product of NH Investment & Securities has drawn more than 10 billion won ($8.2 million) in only a month after its launch as wealthy investors snap it up.
The Seoul-based brokerage said on February 26 that its wrap account product investing in global blue-chip stocks is gaining popularity.
NH came up with the product together with IM Capital Partners based in Hong Kong. The latter was established last April. Im Sung-ho, who was a seasoned fund manager at Mirae Asset, founded the outfit.
According to Investopia, a wrap account is an investment portfolio that is professionally managed by a brokerage firm for a flat fee that is charged quarterly or annually.
The fee is based on total assets under management. It is comprehensive, covering all administrative, commission, and management expenses for the account.
An NH official said that the fast spread of new coronavirus in Korea resulted in struggles in the Korean stock market, which prompts investors to turn their eyes to global markets.
“Rich investors tend to add foreign stocks to their portfolio. We are facing many related inquiries,” the official said.
NH Securities was launched in 2006 when Sejong Securities was incorporated into the National Agricultural Cooperate Federation, otherwise known as Nonghyup.
Currently, CEO Jeong Young-chae heads the outfit, whose largest shareholder is NH Financial Group. Its stake is 76.09 percent.