Assets under management

Assets under management ( AUM for short, German managed assets ) is a financial indicator that indicates the volume of customer funds that a company manages.

The key figure for assets under management is used, among other things, to evaluate investment companies , insurance companies , asset management companies and banks, and in particular private banking .

Similar to sales in trading or manufacturing companies , assets under management are a highly regarded indicator of the size and market penetration of financial companies. They are therefore typically used to rank the largest companies in the industry.

The assets under management do not reflect the sales success of a financial service provider. Due to fluctuations in market prices, assets under management fall in a bear market and rise when the market develops positively, without this being an indicator of sales success. To measure sales success, the net inflow of customer deposits is a suitable benchmark.

Related metrics

While in the case of assets under management the bank makes investment decisions for the customer, a distinction is made between assets under administration (AUA) for which the bank only performs administrative tasks such as custody and bookkeeping. In the case of banks, i. d. R. aware of assets under management (English assets under management and administration , short AUMA ) instead of assets under management terms, since it is considered irrelevant whether the customer to make or custodian administration itself can be carried out by independent asset managers, or whether the Bank under of the asset management business makes investment decisions for client portfolios in addition to administration and advisory services.

In the case of hedge funds, capital under management (CUM) is sometimes used synonymously with assets under management . However, managed equity is not invested on behalf of third parties on behalf of clients.

Individual evidence

1. ^ Britta Graf-Tiedtke: Bank balance sheet analysis . In: Edgar Löw (Hrsg.): Accounting for banks according to IFRS: Practice-oriented individual presentations . 2nd Edition. 2005, p. 1112 .
2. ↑ Assets under management. In: Financial glossary. NASDAQ, accessed December 23, 2016 . 
3. ↑ Keywords assets under administration and assets under management . (PDF) In: Glossary. Royal Bank of Canada, accessed December 23, 2016 . 
4. ^ Henner Schierenbeck : Income-oriented bank management. Volume 1: Measuring Profitability and Risk in Banking. 7th, completely revised and expanded edition. Springer, Wiesbaden 2001, ISBN 978-3-8349-0824-7 , p. 424.
5. ↑ Bernd Berg: Financial crises and hedge funds. Financial magician or crisis trigger? Springer, 2009, ISBN 978-3-8349-1551-1 , pp. 66 .