KAGplus

KAGplus product sheet

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KAGplus enables investment trust companies to improve yield and also assists in the minimisation of legally defined risks. Clearstream Banking Frankfurt (CBF) has been certified as an organised system under Section 56 of the German Investment Act (InvG), ensuring investor protection. Investment trust companies that use KAGplus are recognised as fulfilling investor protection requirements; so optimising lending opportunities.

Investment trust companies seek to maximise their investors’ return while offering protection. Securities lending is one way to increase the performance of the underlying funds. However, the Investmentgesetz (InvG – German Investment Act) limits the lending activities of investment trust companies, and also imposes tight regulations on collateralisation:

collateral must be held on a 1:1 basis, i.e. in a separate account for each component of separate trust assets
pooling of collateral is not allowed
strict counterparty concentration limits are in place

As CBF has been certified as an “organised system” under Section 56 of the German Investment Act, KAGplus gives greater flexibility for the provision of collateral and the pooling of collateral. Using it allows trust companies and their depot banks to be recognised as fulfilling investor protection requirements. KAGplus offers additional operational advantages, since CBF handles the transactions entirely, including matching, margining, collateralisation, as well as comprehensive and transparent reporting.

Advantages of KAGplus include

Greater flexibility for monitoring investment limits
Collateral pooling
CBF is certified “organised system”
Operational handling by CBF and integration into existing processes

Contact
GSF Frankfurt Office
E-Mail: gsf@clearstream.com
Telephone: +49-(0) 69-2 11-1 27 57

Information Centre - KAGplus area