What do you know about AUM reporting? Be it an individual or a company, all the assets under possession need to be managed. If you are an investment banker, you might be managing many assets of your clients. You need to know more about the assets under control for making better decisions. AUM analysis is required at times to measure the success of total assets. Read on to know five tips to transform your AUM analysis and reporting.
Understanding AUM
Assets Under Management (AUM) relates to the measure of investment management entities. Besides being used in the investment banking industry, AUM is also used in the cryptocurrency industry. It is a helpful metric for analysts to measure the total value of assets under control/management. Investment banks often compare their AUM with competitors to know their market position.
If the value of your AUM crosses that of your competitor, it shows positive growth. Investment banks compare their current AUM with that of previous months to record growth or decline. AUM is not restricted to analysts only. With the right analytical skills, an individual investor can also conduct AUM to know the total value of assets under possession. Reporting for AUM is necessary at frequent intervals to know about the growth/decline in the asset price.
Tips to transform AUM analytics & reporting
AUM analytics & reporting is not as easy as it seems. Sometimes, entities spend a lot on AUM analytics and still get the wrong results. Some tips to transform your AUM analytics & reporting in 2022 are as follows:
- Focus on data accuracy
If the base data provided for AUM is wrong, no good can be done. You need to know the correct price of an asset at present for AUM. If AUM uses wrong data, growth projection can take a toll. You need to change your asset data as your company grows or evolves.
- Get trained staff for AUM
AUM reporting requires continuous efforts. As the value of assets changes in the market, the value of AUM changes. You need skilled analysts or management personnel to work for AUM analytics & reporting.
- Focus on asset lifecycle
What is the lifecycle of all assets under management? Will some assets be transferred soon? All these questions need to be answered before you draft an AUM report. Some assets increase their value over time which needs to be monitored.
- Review at frequent intervals
In this ever-changing investment landscape, AUM needs to be a continual process. An entity should conduct AUM analysis on a large scale every quarter to cope with the changing investment landscape.
- Outsource AUM analytics and reporting
It is a challenge to find expert AUM analysts for your organization. Ditch the recruitment process and outsource the AUM process to a reliable third party. By doing so, you don’t have to go through the hassles of creating reports now and then. One can focus on their core responsibilities instead of updating the price of assets under management. Start transforming your AUM analytics and reporting in 2022!
