Assets Under Administration (AUA)
What Are Assets Under Administration (AUA)?
Assets under administration (AUA) is a measure of the total assets for which a financial institution gives administrative services and charges a fee for doing as such. Assets under administration are gainfully owned and managed by clients who contract with a third-party administration provider. AUA contrasts from assets under management (AUM) in that the service provider doesn't have watchfulness over asset allocation choices. Services offered by asset administration providers incorporate fund accounting, tax reporting, trade reporting, and custody. Asset administration service providers incorporate a portion of the world's largest banks and financial institutions.
Grasping Assets Under Administration (AUA)
Assets under administration may likewise be reported with assets under custody. These offerings center around the administrative and operational parts of an investment fund's requirements. Administrative service providers perform an investment company's all's administrative services or some portion thereof. Both institutional and retail funds need broad help for administration.
The Difference Between AUA and AUM
Assets under administration are not quite the same as AUM. AUM alludes to assets that are actively managed by fund managers and portfolio managers with fiduciary responsibility and authorization to pursue investment choices for investors.
For AUA, the service provider doesn't have tact over asset allocation choices, however they truly do charge a fee as a percentage of the assets. AUM is a measure utilized by an investment adviser showing how much in assets they have do have discretionary control over. For financial institutions and companies, most have a larger AUA than AUM.
Assets Under Administration (AUA) Providers
Asset administration service providers incorporate a portion of the world's largest banks and financial institutions. R&M Consultants and Global Investor survey the industry yearly to report on the top companies and services.
Top services reported by category incorporated the following:
- Settlement and care
- Client service and relationship management
- Client reporting
- Month to month accounting and valuation reports
- Service quality
- Corporate activities
- Client confronting innovation
- Tax recovers
- Network
- Proxy casting a ballot
- Auxiliary
- Securities lending program
As indicated by a survey led by eVestment, the most active private equity and debt fund administrators for 2018 (the most recent data), positioned by assets under administration and the number of funds, were the accompanying:
- SS&C Technologies
- State Street
- SEI
- Gen II Fund Services
- Citco Fund Services
In 2020, SS&C Technologies reported $1.69 trillion in alternative assets under administration as of Dec. 31. 2018. State Street Alternative Investment Solutions had $1.2 trillion. In January, 2019, Citco Group of Companies ("Citco") announced that its global AUA had reached $1 trillion.
As per eVestment, alternative assets under administration as of Dec. 31, 2018 totaled $10 trillion, which was up 18.8% from 201. Alternative investments incorporate private equity or venture capital, hedge funds, managed futures, art and collectibles, commodities, derivatives contracts, and real estate.
Features
- Administrative services incorporate accounting, tax reporting, trade reporting, and custody.
- Assets under administration (AUA) are the total assets for which a financial institution offers administrative types of assistance.
- Assets are owned and managed by the client while a third-party is the administration provider, commonly a large bank or financial company.
