Assets Under Management (AUM)

Assets under management (AUM) refers to the total value of financial assets — like stocks, bonds, cash, and other investments — overseen by a financial institution or investment manager. It serves as a key measure of the size and success of an investment firm or fund. A rising AUM typically signals successful investments and confidence from clients, while a drop may result from falling asset values or clients pulling out their money.

AUM includes not just investments, but often any client cash held for investment purposes. For instance, if an investor sells shares but leaves the cash in their managed account, that cash usually still counts toward AUM.

Different organizations may tally AUM in distinct ways based on their specific services. Banks might include all deposit balances, while mutual funds usually count only the funds they actively manage or invest for clients. As such, it’s important to understand how each institution defines and calculates AUM when comparing figures.