Kapitalverwaltungsgesellschaft

Kapitalverwaltung is a German term that translates to "capital management" or "asset management" in English. It refers to the professional management of assets and investments on behalf of clients. This can include a wide range of financial activities such as investment advice, portfolio construction, risk management, and the administration of investment funds.

Entities that offer Kapitalverwaltung are typically licensed financial institutions, such as banks, asset management companies, or specialized wealth managers. They are subject to strict regulatory oversight by authorities like the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) in Germany. The primary goal of Kapitalverwaltung is to grow and preserve the capital entrusted to them by their clients, aiming to achieve specific financial objectives like retirement planning, wealth accumulation, or capital preservation.

Kapitalverwaltung services can be tailored to various client needs, from individual investors with moderate portfolios to large institutional investors like pension funds or insurance companies. The strategies employed can range from conservative investment approaches focused on capital preservation to more aggressive strategies seeking higher returns. Fees for Kapitalverwaltung services are typically based on a percentage of the assets under management, or sometimes on performance.