1. What is Assets Under Custody (AUC)?

Assets Under Custody (AUC) refers to the total market value of assets that a financial institution holds on behalf of its clients. These assets are held in custodial accounts and may include cash, securities, and other financial instruments.

2. How Does the Calculator Work?

The calculator uses the simple sum formula:

Where:

• \( AUC \) — Total assets under custody
• \( Custodial\ Account_i \) — Value of each individual custodial account

Explanation: The calculation simply sums up the values of all custodial accounts held by the institution.

3. Importance of AUC Calculation

Details: AUC is a key metric for custodial banks and financial institutions, indicating the scale of their custody business. It's used to assess business performance, compare against competitors, and determine fee structures.

4. Using the Calculator

Tips: Enter the values of all custodial accounts in USD. You can calculate with 1-4 accounts (minimum one account required). The calculator will sum all valid entries.

5. Frequently Asked Questions (FAQ)

Q1: What types of assets are included in AUC?
A: AUC typically includes cash, stocks, bonds, mutual funds, ETFs, and other securities held in custodial accounts.

Q2: How often should AUC be calculated?
A: Most institutions calculate AUC daily, but it depends on the institution's reporting requirements.

Q3: Does AUC include assets under management (AUM)?
A: No, AUC refers specifically to assets held in custody, not necessarily managed by the institution.

Q4: Why is AUC important for financial institutions?
A: AUC is a key performance indicator that helps assess the size and growth of a custody business, which often generates fee-based revenue.

Q5: How does AUC differ from AUM?
A: AUM (Assets Under Management) refers to assets where the institution makes investment decisions, while AUC refers to assets simply held in custody regardless of management.