IBK Investment & Securities Launches ‘IBKS Black Numbers Wrap’ for Diversified Investment in Domestic SPACs

IBK Investment & Securities has introduced the "IBKS Black Numbers Wrap," a discretionary wrap account product that diversifies investments in domestic listed Special Purpose Acquisition Companies (SPACs).

As of August 21, according to IBK Investment & Securities, the IBKS Black Numbers Wrap is managed directly by IBK Investment & Securities based on advice from Black Numbers Investment Advisory.

Black Numbers Investment Advisory comprehensively analyzes factors such as the progress of mergers, remaining maturity, merger feasibility, and the business potential of target companies for each SPAC to select investment targets. IBK Investment & Securities employs a strategy of diversifying investments across 8 to 10 SPACs, focusing on those with less than two years of remaining maturity and at certain price levels determined through its own analysis, while also taking into account each SPAC's structural characteristics.

This product is an individually managed discretionary investment contract for each client account, and investors are entitled to receive adequate explanations from IBK Investment & Securities. Depending on asset price fluctuations, credit rating downgrades, and exchange rate movements, investors may incur a loss of principal (between 0–100%), and such losses belong to the investor.

The minimum subscription amount is 50 million won, and the fees are charged as a 1% upfront fee and a 1% annual fee. In addition, performance fees agreed upon with the client will be charged for returns exceeding a certain rate.

The contract period is one year, but the company explained that a mid- to long-term investment perspective of more than one year is advantageous, considering the procedures and time required for SPAC mergers.

An official from IBK Investment & Securities stated, "We launched this product to present a portfolio management strategy that captures profit opportunities from merger events, based on expert advice on SPAC investments in this environment of heightened market volatility." The official added, "By combining the advisory expertise of Black Numbers Investment Advisory with IBK Investment & Securities' experience in wrap account operations, we plan to continually monitor the events and risks associated with individual SPACs as we manage the portfolio."

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