What Are Assets Under Management (AUM)?

By Matthew DiLallo – Updated Feb 25, 2025 at 11:29 PM

Key Points

AUM reflects total market value of managed financial assets, key for firm's growth and profit.
AUM changes due to market value shifts, investor cash flows, and corporate transactions.
High AUM can increase firm's income from fees; falling AUM may signal losing client trust.

Assets under management (AUM) are the financial assets a person or entity manages for their clients. AUM is a key performance metric for many companies in the financial sector. A growing AUM suggests a company is increasing its business and profits.

Loading paragraph...

An infographic defining and explaining the term "assets under management (AUM)" — Source: The Motley Fool

Loading paragraph...

What Are the 11 Stock Market Sectors?

The larger stock market is made up of multiple sectors you may want to invest in.

How to Invest in Apple Stock

Get step-by-step guidance on investing in Apple stock and learn the ins and outs of this technology company.

How to Invest in GE Vernova

Here's an overview of GE Vernova's business and whether the stock would benefit investors' portfolios.

Loading paragraph...

About the Author

Matt DiLallo has been a contributing Motley Fool stock market analyst specializing in covering dividend-paying companies, particularly in the energy and REIT sectors, since 2012. He also covers pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

TMFmd19

@MatthewDiLallo

Matt DiLallo has positions in T. Rowe Price Group. The Motley Fool recommends T. Rowe Price Group. The Motley Fool has a disclosure policy.