Meaning of "Surplus"


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I was reading a company's website and the following information is available.

Key Financial Measures:
Total Assets 10,526
Surplus 1,681
Total Comprehensive Income 172
Total Funds under Management 25,000

1) What does "surplus" mean here? Is it the same thing as shareholders' equity? What do you think?

2) What does Total Funds under Management mean?

Any help would be appreciated!
 
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Surplus is just the difference of income and expense.
If in any particular year the income is more than expense it is called 'Surplus' and if;
expense is more than it is called 'Deficit'.
 

bklynboy

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Would be good to know what industry this is from. Surplus in Insurance means equity (Assets - Liabs) and represents the residual amount owned by policyholders. AUM is not an official number but is usually the total invested assets managed from internal and external sources and is usually associated with broker/dealers.
 
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Would be good to know what industry this is from. Surplus in Insurance means equity (Assets - Liabs) and represents the residual amount owned by policyholders. AUM is not an official number but is usually the total invested assets managed from internal and external sources and is usually associated with broker/dealers.
Yes, it's in the insurance industry. So I guess surplus and shareholders' equity are the same thing.

What does "invested assets" mean? How is it different from "total assets" on the balance sheet?
 

bklynboy

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Invested assets is just that - its what you invest - bonds, stocks, LP's, etc to generate investment income. Total assets includes all other assets that are not used to generate investment income.
 
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Invested assets is just that - its what you invest - bonds, stocks, LP's, etc to generate investment income. Total assets includes all other assets that are not used to generate investment income.
OK, so invested assets is basically a component of total assets, i.e. investments.

If invested assets is just a type of asset that makes up total assets, how come we have total assets < invested assets (total funds under management)? How is this possible?
 
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bklynboy

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AUM includes third party assets being managed and are off balance sheet. Invested assets are those owned by the company and are a subset of total assets on the balance sheet. So If I manage mutual funds for investors, these are part of AUM but not part of invested or total assets. For companies that manage external assets (mutual funds, pensions, etc) these are usually the primary component of AUM and the reason its higher than assets on the balance sheet.
 

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