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Assets under management

 
Investment Dictionary: Assets Under Management - AUM

In general, the market value of assets an investment company manages on behalf of investors.

Investopedia Says:
There are widely differing views on what the term means. Some financial institutions include bank deposits, mutual funds and institutional money in their calculations. Others limit it to funds under discretionary management where the client delegates responsibility to the company.

Related Links:
Learn about a securities firm's various departments and the professionals who make the firm tick. Uncovering The Securities Firm
Find out whether your funds are being managed according to your goals. Assess Your Investment Manager
Find out if fee-based investing is for you by learning its terminology and types of investment vehicles. Wrap It Up: The Vocabulary and Benefits of Managed Money
These advisory programs offer professional supervision and other handy tools for building a diversified portfolio. Introduction To Mutual Fund Wraps
Learn about the basics - and the pitfalls - of investing in mutual funds. Mutual Fund Basics Tutorial


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Financial & Investment Dictionary: Assets Under Management
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Total value of Assets under management by a Portfolio Manager. Management fees are based on a percentage of assets under management.

Wikipedia: Assets under management
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Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management, investment management, wealth management, and private banking businesses to gauge how much money they are managing. Many financial services companies use this as a measure of success and comparison against their competitors; in lieu of revenue or total revenue they use total assets under management.its called aum.

The difference between two AUM balances consists of market performance gains/(losses), foreign exchanges movements, net new assets (NNA) inflow/(outflow), and structural effects of the company, such as acquisitions. Investors are mainly interested in the NNA (sometimes called net new money or NNM), which indicate how much money from clients had been newly invested. Furthermore, it is common to calculate the key figure NNA growth, which shows the NNA in relation of the previous AUM balance on an annualized basis. NNA growth can also be referred to as organic growth.

Client assets are transactional assets which are used as collateral for specific transactions, e.g. margin accounts.

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Investment Dictionary. Copyright ©2000, Investopedia.com - Owned and Operated by Investopedia Inc. All rights reserved.  Read more
Financial & Investment Dictionary. Dictionary of Finance and Investment Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.  Read more
Wikipedia. This article is licensed under the Creative Commons Attribution/Share-Alike License. It uses material from the Wikipedia article "Assets under management" Read more