Investment company managers seek to increase assets under management (AUM) since the cost of overseeing additional amounts of money rises less than the revenue rate.

Question

Quizplus · Accepted Answer

Investment company managers aim to increase AUM because the management fees are typically a percentage of the AUM, leading to higher revenue, while the marginal cost of managing additional funds is relatively low.

Investment Company Managers Seek to Increase Assets Under Management (AUM)