Quick Definition

Assets Under Management (AUM) refers to the total market value of the investments that a financial institution manages on behalf of its clients.

Examples

• 1A mutual fund with $500 million in AUM has that amount of money invested across various stocks, bonds, and other assets.
• 2A wealth management firm reports an increase in AUM from $1 billion to $1.5 billion over a year due to new client acquisitions and investment growth.
• 3An investment advisor managing individual portfolios with a combined total of $100 million in assets is responsible for that AUM.
• 4A pension fund with $10 billion in AUM uses these assets to generate returns that will fund future pension payments.

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