What is an example of AUM?

Asked by: Jennings Lemke  |  Last update: February 21, 2025
Score: 5/5 (69 votes)

Example of AUM for a Mutual Fund Let's suppose that the mutual fund's portfolio consists of $1.5B in stocks, $2B in government bonds, $1.5B in corporate bonds, and $1B in cash. The total value of the fund's assets under management will be $6B.

What is considered AUM?

Assets under management (AUM) is the total market value of the investments managed by a person or entity on behalf of investors. AUM fluctuates to reflect the flow of money in and out of a fund and the price performance of the assets.

What is an example of an AUM fee?

Typical management fees are taken as a percentage of the total assets under management (AUM). The amount is quoted annually and usually applied on a monthly or quarterly basis. For example, if you've invested $10,000 with an annual management fee of 2.00%, you would expect to pay a fee of $200 per year.

What is an example of assets under management?

AUM is the combined total of the current market value of all the assets a firm has under its control. For example, if a financial firm manages $6 billion in cash assets, $14 billion in fixed income, $20 billion in equities, and $4 billion in alternatives, its AUM would be $44 billion.

How to calculate AUM with example?

For instance, if 1,000 investors invest ₹1 lakh each in a mutual fund scheme and it generates 10% returns, the AUM of the scheme will be ₹11 crores (₹10 crores invested amount + ₹1 crore returns). Similarly, if the scheme delivered a loss of 10%, the AUM will be ₹9 crores (₹10 crores invested amount - ₹1 crore loss).

Financial and Real Estate Terminology: What is Assets Under Management (AUM)?

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What is an average AUM?

‍Typical AUM Fee Structures Include Breakpoints

1% of assets under management per year. This is a common fee for accounts under $1 million. 0.75% of AUM for accounts between $1-5 million. As assets grow, the percentage fee often decreases. 0.50% of AUM for accounts over $5 million.

What is the AUM of BlackRock?

BlackRock, Inc. is an American multinational investment company. Founded in 1988, initially as an enterprise risk management and fixed income institutional asset manager, BlackRock is the world's largest asset manager, with US$11.5 trillion in assets under management as of December 31, 2023.

What is the difference between AUM and fund size?

Fund size in mutual funds, also known as Assets Under Management (AUM), is the total value of all the assets that a mutual fund manages on behalf of its investors. This includes the capital invested by individual and institutional investors.

What are three examples of assets?

Examples of personal financial assets include cash and bank accounts, real estate, personal property such as furniture and vehicles, and investments such as stocks, mutual funds and retirement plans.

What is a reasonable AUM fee?

Typical cost. Assets under management (AUM) 0.25% to 0.50% annually for a robo-advisor; 1% to 2% for a traditional in-person financial advisor.

What is the difference between AUM and total assets?

The total assets of a company may be smaller than its assets under management (AUM) because the AUM includes assets managed on behalf of third parties as well as the premium collected from their own clients. In contrast, the total assets only include the company's owned assets and are reflected in their balance sheet.

How much is an AUM?

An AUM is a unit of measure used to quantify forage allowance for grazing animals. In the same way that one ton is a unit of measure comprised of 2,000 pounds, one AUM is a unit of measure comprised of 790 pounds of oven- dried forage.

What are the 4 parts of AUM?

“A” represents the waking state of consciousness; “U” the state of dream consciousness; “M” the state of deep sleep consciousness; finally, the silence – the place beyond all definitions of consciousness; a place that can't properly be named, but must be given a name so that we can converse; so this nameless state is ...

How to calculate AUM fee?

Annual Fee Calculation: The calculator multiplies the AUM fee percentage by your portfolio size to determine the fee you'll pay annually. This is straightforward: if your portfolio is $500,000 and the fee is 1%, the annual fee is $5,000.

Who are the top asset owners by AUM?

Japan's Government Pension Investment Fund remains the world's largest single asset owner, with an AUM of US$1.59trn, followed by the world's two largest sovereign wealth funds – Norway's Norges Bank Investment Management, with AUM of US$1.55trn, and China Investment Corporation, with US$1.24trn.

What is the AUM of Blackstone?

Blackstone is the world's largest alternative asset manager, with more than $1 trillion in AUM. We serve institutional and individual investors by building strong businesses that deliver lasting value.

Who owns BlackRock?

Who are BlackRock's largest shareholders? BlackRock, which has offered shares to the public since its 1999 IPO, is mostly owned by institutional investors, including the Vanguard Group, State Street Corp. (STT 0.01%), Bank of America (BAC 0.28%), and Temasek Holdings, a Singapore state-owned conglomerate.

How is AUM calculated?

How is AUM calculated? AUM (Assets Under Management) is calculated by adding up the total market value of all the assets a financial institution manages on behalf of its clients. This includes stocks, bonds, real estate, and other investment vehicles.

What are the disadvantages of a large AUM?

The AUM can have a direct impact on the fund's performance. If a fund is a large AUM, it might be challenging for it to generate high returns. This can happen because finding the right investment opportunities that help in earning more gains without hampering the market can be tough.

How much AUM is good for a small cap fund?

Many small-cap companies are usually worth about some Rs 1,000-1,500 crore. To buy a meaningful position in such a company, it is still okay for a fund managing around Rs 100-200 crore of assets.

Does BlackRock own Disney?

ownership in DIS / The Walt Disney Company. 2024-01-26 - BlackRock, Inc. has filed an SC 13G form with the Securities and Exchange Commission (SEC) disclosing ownership of 122,883,021 shares of The Walt Disney Company (US:DIS). This represents 6.7 percent ownership of the company.