Assets Under Management (AUM)
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Assets under management (AUM) is the total market value of all financial assets held by a financial institution. Growth in AUM over time, and high growth compared to industry competitors, generally indicates a strong investment strategy and high value asset management. Alternatively, AUM declines when value is lost or investors withdrawal capital from the managing institution.
Cash is also considered AUM. When an investor sells an asset for cash, and that cash remains in the custody or management of another party, AUM may not decline.
Institutions vary in their calculation of AUM because they provide different money management services. For example, a depository institution will calculate AUM as the market value of deposit accounts, whereas a mutual fund would only consider AUM to include the market value of funds that it has permission to invest on behalf of another.