Assets Under Management (AUM) is a term used to describe the total market value of all assets that an investment manager or financial institution manages on behalf of its clients. AUM includes both liquid and illiquid investments, with the latter including private equity and real estate. AUM is typically measured in terms of dollars or euros, but it can also be measured using other currencies such as cryptocurrencies.
The calculation of Assets Under Management (AUM) requires taking into account several factors including the current market value of securities held by the client, any cash held in accounts managed by the firm, and any liabilities owed. It is important to note that when measuring AUM for a cryptocurrency portfolio, only those digital assets which have been purchased directly from exchanges should be included; any tokens earned through mining activities are not usually counted towards a portfolio’s total AUM.
In order to provide investors with an accurate picture of their holdings’ performance, asset managers must regularly track changes in their portfolios’ values over time. This process involves monitoring each asset’s price movements and making adjustments to account for differences between actual prices and book values where necessary. Additionally, since many digital assets are volatile due to their nature as emerging technologies it can be important for investors to stay abreast of news related developments affecting individual coins as well as broader crypto markets in order to ensure they remain informed about how these could potentially affect their holdings’ performance going forward.
Overall Assets Under Management (AUM) provides investors with valuable insight into how much capital has been allocated towards different types of investments within a given portfolio over time; this information can then help inform decisions made around allocation strategies going forwards depending on whether certain levels exceed or fall short against desired objectives set out at inception date or after regular review periods have occurred throughout subsequent management phases too.
