What does AUME mean in MANAGEMENT
Assets Under Management Equivalent (AUME) is a measure used by the financial services industry to assess the value of all assets under their management, including financial instruments such as stocks, bonds, and mutual funds. AUME takes into account all liabilities and equity investments associated with these assets to calculate an overall net worth for each institution.
AUME meaning in Management in Business
AUME mostly used in an acronym Management in Category Business that means Assets Under Management Equivalent
Shorthand: AUME,
Full Form: Assets Under Management Equivalent
For more information of "Assets Under Management Equivalent", see the section below.
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Essential Questions and Answers on Assets Under Management Equivalent in "BUSINESS»MANAGEMENT"
What is Assets Under Management Equivalent?
How is AUME calculated?
The calculation of Assets Under Management Equivalent includes the total market value of all assets, plus any liabilities associated with them. In addition to this, it also takes into account the amount of cash that can be generated from selling those assets in order to meet liabilities. This overall value is then divided by the number of equity investments associated with those assets, resulting in an AUME figure.
What are some examples of assets included in AUME?
Examples of assets included in calculating AUME include stocks, bonds, real estate funds, private placements, and other investments. These can be both liquid and illiquid holdings. Cash balances held by investment firms may also be taken into consideration for AUME calculations.
How does AUME differ from total assets?
Total assets refers to the sum total value of all investments owned or managed by a firm without taking into account any related liabilities or equity investments. On the other hand, AUME provides a more complete view since it considers both liability and equity investments when calculating the net worth of an institution or individual investor.
What does a high AUME mean for investors?
Generally speaking, a high level of Assets Under Management Equivalent (AUME) means that there are many liquid investment options available within an institution’s portfolio that can help generate returns for its clients. It implies that there are relatively low levels of risk-taking associated with these investments, which should provide investors with peace of mind regarding their future returns.
Does AUME include only marketable securities?
No, while it does take into account marketable securities like stocks and bonds when calculating an Asset Under Management Equivalent figure (AUME), it also considers non-marketable securities such as structured products and private placements issued by corporations or government entities.