What does Raum stand for?

Regulatory Assets Under Management
On March 31 2012, available public records (Form ADV) began reporting Regulatory Assets Under Management (RAUM), an SEC metric designed to calculate gross assets under management for regulatory purposes.

What is RAUM vs AUM?

RAUM vs AUM First, RAUM is gross rather than net assets, so it adds both long and short positions, even if they are hedges that cancel each other out. Second, RAUM includes the full leveraged amount, dry powder that hasn’t been called yet, and non-fee-generating assets that aren’t normally included in AUM.

How is RAUM calculated?

Calculating RAUM RAUM should be based on their fair market value using values calculated within 90 days prior to the filing of Form ADV. RAUM should be calculated on a gross basis, that is, without reducing the value by any margin loans or other indebtedness related to the account.

What is regulatory AUM?

Regulatory Assets Under Management Are Not Always All Assets Under Management. RAUM specifically refers to Regulatory AUM, which the SEC’s standard form of AUM[2]. The SEC developed this metric to have a consistent internal measurement, implementing a mandatory tiered registration of private investment advisers[3].

What is Raum in finance?

Assets Under Management (RAUM), a new SEC metric designed to calculate gross assets under management for regulatory purposes.

What are assets under advice?

assets under advice means the aggregate net asset value of securities and investment products for which the investment adviser has rendered investment advice irrespective of whether the implementation services are provided by investment adviser or concluded by the client directly or through other service providers;”

What does AUA stand for in finance?

Assets under administration (AUA) are the total assets for which a financial institution provides administrative services. Assets are owned and managed by the client while a third-party is the administration provider, typically a large bank or financial company.

What does custodian bank do?

A custodian, also known as a custodian bank, refers to a financial institution that holds the possession of customers’ securities to reduce the possibility of theft or loss. The securities and other assets can be held in electronic or physical form.

How do you determine assets under management?

AUM is the sum of the market value for all of the investments managed by a fund or family of funds, a venture capital firm, brokerage company, or an individual registered as an investment advisor or portfolio manager. Used to indicate the size or amount, AUM can be segregated in many ways.

What is the meaning of the word Raum?

Raum m (genitive Raums or Raumes, plural Räume) (physics) space capacity, volume, room Synonyms: Rauminhalt, Fassungsvermögen chamber, room Synonyms: Gemach, Gelass, Zimmer place, area, field, room, space room, hold (of a vessel or vehicle) Synonym: Hubraum (figuratively) scope, opportunity, field

What does Raum stand for in hedge funds?

RAUM will represent all of the assets managed by a single manager, including assets of separate accounts and separate private funds. It is important to remember that hedge funds are legally separate entities, often have different investors and can engage in distinct trading activities in different assets and markets.

Why is it important to know the correct Raum?

Correct RAUM is important for several reasons. First, RAUM is one of the factors that determines whether an advisory firm must register with either the SEC or state securities regulators. Another reason is that inaccurate reporting of RAUM may result in the revocation of the adviser’s registration or other disciplinary actions.

Is the Raum measure the same as Aum?

For decades hedge fund managers have supplied investors and regulators with information measuring Assets Under Management (AUM) painting a clear picture of net investor capital at risk. RAUM is a new and separate measurement developed by the SEC. It is not intended to replace AUM and does not illustrate net investor capital at risk.