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The term Master-KAG describes a business model of capital investment companies in Germany.


Master funds can either be organized as master UCITS, Section 1 (19) No. 12 KAGB , or as Master AIF, Section 1 (19) No. 14 KAGB . The business model usually differs from the classic KAG business in that it sets up the fund for a third party instead of for itself. The KAG only provides the third party with a fund structure, while the investment decisions (portfolio management) are outsourced in accordance with § 36 KAGB can be made by an external administrator. Usually, the third parties are institutional investors who have their own fund set up by the KAG , which is managed by the external administrator according to their ideas. It is also conceivable that a third party has permission to manage the portfolio (more precisely, financial portfolio management ) but, due to the lack of a KAG characteristic, cannot launch funds itself. In this case, the third party has the investment fund launched by the KAG, which immediately outsources portfolio management to him. The third party then makes the investment decisions at his own discretion and, as the actual initiator of the fund, bears economic responsibility for the fund. The CISA remains solely responsible for the investors in terms of contracts and for BaFin under supervisory law .

Economic background

In terms of value creation, a fund / special fund is essentially based on three levels: custodian bank (portfolio management), capital investment company (administration) and asset manager (portfolio management). As a rule, a financial group offers all of this as a package. The construction of the Master-KAG means that these three parts of the value chain can be assigned independently by the investor in order to achieve advantages, but the administration of several portfolios is bundled in one KAG. Thus the KAG u. a. the fund on behalf of the investor, takes care of the fund accounting, prepares the reporting and works with a custodian bank on the safekeeping of the assets. Portfolio management or asset management (i.e. decisions about the composition of the fund) of the portfolios can be carried out by other asset managers.

There are so-called advisory mandates and so-called management mandates (outsourcing mandates). In one case (advisory mandate), the external portfolio manager only gives advice to the KAG, which then carries it out under its sole responsibility. In the other case (outsourcing mandate), the external manager makes the specific investment decisions and sometimes carries them out himself.

Individual evidence

  1. Döser / Reul-Langer in Emde / Dornseifer / Dreibus / Hölscher, InvG, § 16 Rn. 111 f.
  2. Background - Master-KAG. (PDF; 467 KB) Lazard Asset Management (Deutschland) GmbH, 2003, accessed on April 3, 2012 .
  3. Master capital investment company (Master-KAG)., accessed on November 9, 2010 .
  4. Background - Master-KAG. (PDF; 467 KB) Lazard Asset Management (Deutschland) GmbH, 2003, accessed on November 9, 2010 .