A group of assets that are beneficially owned by an entity’s clients, while the entity provides administration services such as placing trades and collection of investment income on behalf of the clients. The client is directly involved in the management of such assets by means of selecting venues of investment, timing, maturity, etc.)
The owners of assets make investment decisions and have a better control over their respective assets. In addition to the above, asset administrators provide a host of services including fund accounting/ recording keeping, tax reporting, trade reporting, safekeeping, settling purchase and sale transactions, etc.
Assets under administration (AUAs) are not reported on an entity’s balance sheet.
