iM Securities Launches Three "iM Small-Lot Treasury Wrap" Products

iM Securities is launching three types of "iM Small-Lot Treasury Wrap" products that can be actively utilized for short-term fund management.

The "iM Small-Lot Treasury Wrap" is a discretionary product that seeks returns higher than prevailing market interest rates through small-lot government bond investments. It is available in three types: "Small-Lot Treasury Wrap," "Active Small-Lot Treasury Wrap," and "Smart Small-Lot Treasury Wrap."

The majority of assets are invested in Type 1 National Housing Bonds, which are government bonds traded in small denominations among add-on settlement bonds. Type 1 National Housing Bonds are issued by the government to finance the National Housing Project, and principal is guaranteed until a declaration of default by Korea, making them highly secure.

Add-on settlement bonds are quasi-tax bonds that must be purchased when buying a house or car. They are issued by the government or local governments to raise funds for public projects. Types include government bonds such as National Housing Bonds, and local government bonds such as Regional Development Bonds and Urban Rail Bonds.

The strategy utilizes the characteristics of the small-lot bond trading system, which allows bonds to be purchased at relatively low prices. Type 1 National Housing Bonds are bought at the reported price on the same day and sold at the market price the next day, aiming to secure stable trading gains. Profits generated from bond trading are tax-exempt, providing tax-saving benefits.

All cash assets, except for the amount used to purchase government bonds, are managed through instruments such as repurchase agreements (RPs) that allow for free deposits and withdrawals at any time. Customers can freely deposit or withdraw funds at any time without mid-term fees.

An iM Securities representative stated, "Small-lot government bonds are products that can offer relatively high stability and profitability during periods of increased market volatility," adding, "They are suitable for managing short-term surplus funds, as they can be terminated at any time without any penalties."

The minimum subscription amount for the "iM Small-Lot Treasury Wrap" is 10 million KRW per person, 50 million KRW for the "iM Active Small-Lot Treasury Wrap," and 100 million KRW for the "iM Smart Small-Lot Treasury Wrap." Investors can subscribe to only one of the three products. All products allow for mid-term termination without additional fees, but only full termination is permitted.

For more detailed inquiries about the products, please contact iM Securities branches or the Customer Satisfaction Center.