Short answer
Assets under management (AUM) is the total market value of investments a firm manages on behalf of clients. For wealth managers and RIAs, AUM drives revenue, regulatory registration thresholds and how client relationships are prioritized.
Assets Under Management (AUM) explained
Firms track AUM by client, household, advisor and firm, and monitor flows: new assets in, assets out, and market movement. In a CRM, AUM usually comes from the custodian or portfolio system and is rolled up to households. Advisory fees are often billed as a percentage of AUM.
Consistent AUM definitions matter because SEC registration, Form ADV reporting and compensation all depend on them.
How Vantage Point helps: we bring accurate AUM and flow data into Salesforce and HubSpot for advisor dashboards and leadership reporting.
Frequently asked questions
What is the difference between AUM and AUA?
AUM is assets a firm manages with discretion or advice. Assets under administration (AUA) are assets it holds or services without managing them.
What are net flows?
New assets added minus assets withdrawn over a period, excluding market performance.