Assets Under Management

Assets under management - Assets under management, is a strategy used by mutual fund companies, hedge fund, brokerages and insurance companies to determine their ratio of success in comparison to their competitors. These companies earn a management fee for investing their client?s interests. The investor assets, interest spread on investors deposits, or investments in the companies own funds are percentages of the assets under management. Therefore the total value of these assets combined, become the assets under management. An asset under management assessment is a good indicator of how well any manager is able to earn profits for their investors, clients or their company.