Capital management company

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Capital management companies (abbreviation: KVG) are companies in the financial sector whose operational purpose is the asset management of investment funds and the issuing of investment certificates.


For investors , the following classic issuer groups come into consideration, namely credit institutions ( sight , term , savings deposits ; savings bonds ), the state ( government bonds , municipal bonds ), companies ( corporate bonds ), insurers ( life insurances , annuity insurances ) or capital management companies ( investment funds ).

Capital management companies used to be called capital investment companies (KAG). The legal basis was Section 2 of the Investment Act , which was replaced on July 22, 2013 by the Capital Investment Code (KAGB), which is based on EU law . Instead, the KAGB uses the term capital management company .

Capital management companies have a central task in the collective management of investment or special assets , their risk and portfolio management as well as keeping the register of investors. You can manage multiple investment funds.

Legal issues

According to the system of Section 1 (14) KAGB, the management companies include the AIF management companies and UCITS management companies . AIF management companies are AIF capital management companies, EU AIF management companies and foreign AIF management companies, while UCITS management companies are divided into UCITS capital management companies and EU UCITS management companies. According to the legal definition of Section 17 (1) of the KAGB, capital management companies must have their place of business in Germany and may only manage domestic, EU investment funds or alternative investment funds . An investment fund is managed if at least portfolio management or risk management is provided for one or more investment funds or special funds.

A distinction must be made between permitted and merely registered capital management companies. The business operations of a capital management company require written permission from BaFin in accordance with Section 20 (1) KAGB . AIF capital management companies are only registered that have to point out to the investors in the sales prospectus and the key investor information, highlighted in typographical form, that the AIF capital management company does not have permission from BaFin and therefore certain requirements of the KAGB do not have to be complied with ( Section 2 Paragraph 5 No. 7 KAGB). The registration obligation for AIF capital management companies results from § 44 KAGB.

Pursuant to Section 17 (2) of the KAGB , the capital management company is either an external capital management company appointed by the investment fund or on behalf of the investment fund and responsible for managing the investment fund on the basis of this appointment, or the investment fund itself as an internal capital management company if the legal form of the Investment fund allows internal management and the board of directors or the management of the investment fund decides not to appoint an external capital management company. In this case, the investment fund is approved as a capital management company. According to Section 18 (1) KAGB, external capital management companies may only take the legal form of a stock corporation (AG), a limited liability company (GmbH) or a limited partnership in which the personally liable partner is exclusively a limited liability company (GmbH & Co. KG ), operate. Organs of the capital management company are - depending on the legal form - the management board (AG) or the management (GmbH), the supervisory board and the general meeting (AG) or the shareholders' meeting (GmbH). The board of directors / management must also fulfill the notification obligations to BaFin and the Bundesbank resulting from Section 34 KAGB .

Business activity

The process organization of a capital management company mainly consists of fund management , risk controlling , sales and administration . While the fund management investment decisions ( English bondable / stock selection ) based on the investment strategy meets and asset allocation makes, is concerned that - therefrom by separation of functions organized separately - risk control with the measurement and monitoring of risk exposures and the financial analysis of the associated loss potential . With the sale of the investment certificates, for example through credit institutions, the sales department ensures the refinancing of the investment or special assets. The administration ensures the fulfillment of the company's administrative tasks, but does not take over the asset management of the investment or special fund. The capital management companies are not allowed to hold and manage their investment or special assets themselves, but must give a depositary an order for safekeeping and administration ( UCITS : Section 68 KAGB , alternative investment funds : Section 80 KAGB, real estate : Section 241 KAGB).


The legal basis for the accounting of capital management companies is the Capital Investment Accounting and Valuation Ordinance (KARBV). After § 7 KARBV consisting annual report of activity report ( § 8 KARBV), balance sheet ( § 9 KARBV), asset statement specifying the individual assets in securities stating the security identification number (SIN) or the International security identification number (ISIN; § 10 KARBV) Income and expenditure accounting ( § 11 KARBV), usage and development accounting ( § 12 KARBV, § 13 KARBV) and other information. For the structure of the balance sheet and profit and loss account, there are special provisions in § § 21 KARBV and § 22 KARBV. The evaluation of the investment or fund is through the depositary with the participation of capital management company instead ( § 26 KARBV), where the cash management company to check the determined by the depositary valuations for assets in an appropriate manner for plausibility and must endeavor to ensure that irregularities are resolved.

See also


Web links

Individual evidence

  1. BaFin of July 15, 2015, capital management companies: Allowed versus registered - what consumers should know about the differences , accessed on May 21, 2019
  2. Jürgen Baur / Falko Tappen (eds.), Großkommentar KAGB , 2015, p. 434