NAV and AuM

This section explains the NAV and AuM in our concept.

NAV stands for "Net Asset Value" whereas AuM stands for "Asset under Management". The main difference between the two figures is that AuM may exclude or transform the signs of certain holdings and/or total accruals from the total figure depending on the configuration of your DECAF Instance.

NAV is calculated as follows:

$$\text{NAV} = \text{Total Net Value of All Holdings} + \text{Total Net Value of All Accruals}$$

In the case of AuM, however:

1. Some holdings or accruals may be excluded before calculating the totals, or
2. Some holdings or accruals may be added as absolute values to the totals.

The configuration can be performed for the following holding types and total accruals:

Type	Consideration	Effect on AuM	Example	Example Effect on AuM
Overdraft (Holding)	exclude	$0$	-1,000	0
	net	$+x$ (as is)	-1,000	-1,000
	absolute	$+$|$x$|	-1,000	+1,000
Loan (Holding)	exclude	$0$	-1,000	0
	net	$+x$ (as is)	-1,000	-1,000
	absolute	$+$|$x$|	-1,000	+1,000
Total Accruals	exclude	$0$	-1,000	0
	net	$+x$ (as is)	-1,000	-1,000
	absolute	$+$|$x$|	-1,000	+1,000

Therefore, NAV and AuM are the same if all holdings and accruals are configured to have net effect on the AuM:

$$\left. { \begin{aligned} \text{Overdraft} &:= \text{net}\\ \text{Loan} &:= \text{net}\\ \text{Accruals} &:= \text{net}\\ \end{aligned} } \right\} \Rightarrow \text{NAV} = \text{AuM}$$

By default, DECAF Instances are configured to exclude all these holding types and total accruals.