President Kim Won-kyu gets a paper from a staff of NH Investment and Securities Co. acting as a customer for the company’s Mobile Securities Tree, a securities product that the company launched as  tailor-made asset management services through Robo Advisors with various benefits for its customers.(Photo: NH I&S)

NH Investment and Securities Co. came up with a record-breaking offer for customers of its Mobile Securities Tree, saying they wouldn’t have to pay fees for securities transactions for life with coupons worth 155 million won for its marketing events issued. At the same time, the company cut interest rates on loans to 4.6 percent to lighten the burden on customers from their securities deals on credit.

The company paid 10,000 won to the first customer on credit securities deals, and also sold the DLB on 2.5 percent interest rate to customers until Nov. 2, attracting some 50,000 new customers to open a DLB account from Aug. 31 to Oct. 31. They said various events and services offered during the period were singled out as the main attractions for customers.

The Mobile Securities Tree has been offering tailor-made asset management services based on the Robo Advisor.

The ETF installment purchase automatic sales system Robo account, which was first introduced in 2015, has been earning a high rate of profit at 22 percent as of Oct. 17, an annualized rate of 27.79 percent. The securities firm also plans to introduce the investment solution based on an algorithm this year.

Vice President Ahn In-sung, in charge of the Digital Customers Headquarters, said the Mobile Securities Tree has been attempting to become a digital asset management service based on the Robo advisor. “We want to lead the customers to succeed through the Robo advisor, which is made up of Big Data and AI,” the vice president said.

He went on to say that the company has been working to install the digital asset management platform to boost the comfort and convenience of its customers by installing screens and confirmation methods, along with a diverse portfolio and benefits to give convenience and benefits to customers.

NH Investment & Securities Co., Ltd. provides wealth management (WM), investment banking, and institutional client services in South Korea. 

The company offers WM services, including brokerage of equity, derivatives, ELWs, ETFs, etc.; and customized financial products, such as fund, trust, wrap, etc. It also sells and trades in tailored structured products; and provides investment banking services comprising business consulting, M&A, and advisory services. NH Investment & Securities Co., Ltd. was founded in 1969 and is based in Seoul, South Korea.

NH Investment & Securities Co. will pump more money into private equity funds (PEFs) this year to further raise its investment returns.

According to sources, the stock brokerage firm will select three to four PEFs and invest up to 30 billion won ($26.1 million) each. Its targets will include funds being raised by asset managers like IMM Investment Corp. and VIG Partners.

NH Investment & Securities has received handsome returns from its investments in PEFs for several years.

The company invested about 20 billion won into VIG Partners’ No. 2 PEF, which successfully sold Burger King Korea. The brokerage firm received about 16 billion won in returns, including dividends of nearly 10 billion won, from its investment in the fund after VIG Partners sold Burger King Korea to Hong Kong-based private equity firm Affinity Equity Partners at 210 billion won, making twice its original investment over the next three years.

With its wider investment, the brokerage firm will gain the upper hand in winning orders from M&A customers. 

The company stood out in the local M&A market last year as it successfully brokered a deal to sell Homeplus, the largest ever M&A deal in Korea, and other high-profile M&A deals such as Halla Visteon and Ssangyong Cement.

A person familiar with the company said NH Investment & Securities has a strategy to leverage its investment into PEFs to expand its presence in acquisition finance offering and M&A advice.

NH Investment & Securities is also seeking to push through various overseas projects to diversify income sources in IB business. Recently, the company raised $320 million from Koran insurers and other institution investors to lead a syndicated loan to Newark Energy Center’s power plant project in New Jersey.