How Do You Calculate Aum?
Assets under management (AUM) is a calculation only registered investment advisers need worry about. Calculating assets under management involves recording the market value of assets you manage 90 days before filing your annual Form ADV with the SEC or your state’s securities regulator. Once the ADV form is filed, it becomes a public document. Thus it is important to record accurate values that will show your advisory capacity in the best possible light. To get this value, you use the same method you use to report account values to your clients and fees for research provided to investment advisory services. Check each of your accounts to determine if it is a securities account or not. It is if at least half of its total value is made up of securities. Securities are cash and cash equivalents that can include stocks and bonds of any kind, collateralized mortgage obligations (CMOs), swap options, commodities, commodity options, trust funds and other types of securities. A bank deposit an
