Final answer:
Comparing AUM across countries is challenging due to different rules for sustainable funds, currency differences, and distinct investing laws. The overarching economic diversity and unique national characteristics further complicate direct comparisons of economic indicators like GDP or standard of living.
Step-by-step explanation:
Comparing Assets Under Management (AUM) from different countries poses several challenges. One significant issue is Different rules defining sustainable funds across regions, which can alter the inclusion criteria for what qualifies as AUM. In addition, Differences in currency denominations can significantly affect the valuation of AUM when converting to a common currency for comparison. Third, Different investing laws can impact how assets are managed and reported, thus influencing AUM figures. It is less about Different ideas about how to compare AUM but more about the structural economic and legal differences that introduce variability in the reporting and interpretation of AUM.
The national economies are drastically different in terms of economic characteristics, institutions, history, and politics, which affect their economic performance and make comparisons complex. Additionally, different approaches such as purchasing power parity are needed to enable a more accurate comparison of indicators like GDP per capita. Such diverse factors influence the standard of living, which is further complicated by the unique access each country has to capital, human capital, and technology—ingredients vital for productivity and thus economic performance.