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AUM Calculation:
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Assets Under Management (AUM) refers to the total market value of all the financial assets that an investment company or financial institution manages on behalf of its clients. It's a key metric used to measure the size and success of investment management firms.
The calculator uses a simple summation formula:
Where:
Explanation: The calculator simply adds up the values of all portfolios you enter to give you the total AUM figure.
Details: AUM is a critical metric for investment firms as it directly impacts management fees, influences investor perception, and serves as a measure of a firm's growth and market position. It's also used to calculate performance metrics and determine fee structures.
Tips: Enter the current market values of each portfolio you manage. You must enter at least one portfolio value. Values should be in USD (or your preferred currency). The calculator will sum all entered values to determine your total AUM.
Q1: What assets are included in AUM?
A: AUM typically includes all managed discretionary assets - stocks, bonds, mutual funds, cash and cash equivalents, and other securities.
Q2: How often should AUM be calculated?
A: Most firms calculate AUM daily, but it depends on the firm's policies. For individual investors, monthly calculation is usually sufficient.
Q3: Does AUM include leverage or borrowed funds?
A: Generally yes, AUM includes both investor capital and any leveraged amounts, unless specified otherwise.
Q4: How does AUM affect management fees?
A: Management fees are typically calculated as a percentage of AUM, so higher AUM means higher absolute fees (though percentage may decrease with larger AUM).
Q5: What's the difference between AUM and NAV?
A: AUM is the total value of all assets managed, while NAV (Net Asset Value) is the value per share of a fund, calculated as (AUM - liabilities) / number of shares.