Master-KAG

The term Master KAG describes a business model of investment companies ( KAG ) in Germany.

Concept

It is in the Master KAG to no legal concept. Accordingly, it is not mentioned by the Investment Act. The business model differs from the classical KAG business generally by the fact that the CISA hangs up the fund are not for yourself, but for someone else. The KAG provides the third party is merely a fund structure that while the investment decisions ( portfolio management) by means of outsourcing in accordance with § 16 Section 2 of the Investment Act to be taken by an external administrator. They are usually in the third to institutional investors who have created a special fund from the investment company, which is managed according to their ideas by the external manager. It is also conceivable that a third party has permission to portfolio management (specifically, financial portfolio management ), but lack CISA property itself can not fund. In this case, the third party can hang up the fund by the CISA, which outsources immediately portfolio management at him. The third is then incident at his discretion the investment decisions and bears as the actual initiator of the fund, the economic responsibility of the Fund. Contracted to investors and aufsichtsrechlich with BaFin is responsible exclusively to the CISA.

Economic background

A fund / fund based with respect to the value on three main levels: Custodian (stock keeping ), asset management company ( Administration) and asset managers (portfolio management). As a rule, all this provides a financial group in the packet. The construction of the Master-KAG means that these three parts of the value chain can be assigned by the Investor independently to achieve benefits that administration of multiple portfolios but is bundled with a CISA. Thus, the investment company founded in behalf of the investor the fund, does the fund accounting, created reporting, works regarding the safekeeping of assets with a custodian bank together, etc. The portfolio management and asset management ( that is, the decisions regarding the composition of the Fund) of the portfolios can be taken by other asset managers.

There are so-called advisory mandates ( Advisory mandates) and so-called management mandates (outsourcing mandates). In one case ( Advisory mandate ) are the external portfolio managers only advice to the CISA, which then executes this sole responsibility. In the other case (outsourcing mandate ) meets the external managers specific investment decisions and executes them some are the same for yourself.