Drawing upon more than two decades of financial leadership experience, Scott Bushley oversees operations at Boston’s Granite Point Capital. Scott Bushley previously functioned as the head of business operations at BNY Mellon Investment Management, a multi-affiliate investment manager comprised of nearly $2 trillion in total assets under management (AUM).
AUM refers to the combined market value of investments managed by a person or entity on behalf of his/her or its clients and can be used to help evaluate the success of a particular company or investment. The means of calculating AUM varies among financial institutions, as some limit it to discretionary investment management funds while others include cash, mutual funds, and bank deposits.
In order for a client’s portfolio to be counted toward total AUM, it must fit the U.S. Securities and Exchange Commission’s definition of a securities portfolio, meaning that at least 50 percent of its total value must come from securities like cash or private fund assets. Precious metals and real estate do not count as securities.
The number of stock units multiplied by its most recent market price determines asset value. For instance, if a portfolio contains 200 units of Nike stock that, at the time of calculation, is trading at $110, the value of that particular stock would equal $22,000. This formula is used for every asset in the portfolio. The resulting figures are then added together to determine total value of that particular portfolio. The sum of the value of all portfolios is the total AUM.
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