Assets under management (AUM) refers to the total market value of the investments or assets managed by a mutual fund, hedge fund, wealth management firm, portfolio manager, or other financial services firm.
How is AUM calculated? AUM (Assets Under Management) is calculated by adding up the total market value of all the assets a financial institution manages on behalf of its clients. This includes stocks, bonds, real estate, and other investment vehicles.
The higher AUM indicate better investment inflow, quality and management experience on behalf of a fund house.
AUM meaning assets under management, which implies the cumulative sum of the market value of total securities held in a mutual fund scheme.
Example of AUM for a Mutual Fund
Let's suppose that the mutual fund's portfolio consists of $1.5B in stocks, $2B in government bonds, $1.5B in corporate bonds, and $1B in cash. The total value of the fund's assets under management will be $6B.
The “AUM” symbol (or OM – the symbol in the center) symbolizes the Universe and the ultimate reality. It is the most important Hindu symbols. At the dawn of creation, from emptiness first emerged a syllable consisting of three letters – A-U-M (often written as OM).
How Much Do You Pay? The typical AUM fee is 1% on the first $1 million. Beyond that level, the cost typically drops as your household assets cross certain thresholds. Fees may be negotiable, and it's possible to discuss a cap on fees if you have a significant amount to invest.
Who are BlackRock's largest shareholders? BlackRock, which has offered shares to the public since its 1999 IPO, is mostly owned by institutional investors, including the Vanguard Group, State Street Corp. (STT 0.01%), Bank of America (BAC 0.28%), and Temasek Holdings, a Singapore state-owned conglomerate.
The average age of the top 20% of advisors in the Report Card rose to 46.0 in 2023 from 44.3 in 2022. Their average industry tenure rose to 21.7 years from 19.2. Yet, average AUM for this segment of the advisor population dropped by 7.8% in this year's Report Card to $279.4 million, from $303 million in 2022.
Fund size in mutual funds, also known as Assets Under Management (AUM), is the total value of all the assets that a mutual fund manages on behalf of its investors. This includes the capital invested by individual and institutional investors.
BlackRock, Inc. is an American multinational investment company. Founded in 1988, initially as an enterprise risk management and fixed income institutional asset manager, BlackRock is the world's largest asset manager, with US$11.5 trillion in assets under management as of December 31, 2023.
The Net Asset Value represents capital actively “in play”: Funds held by the investment entity or already deployed in the market. On the other hand, AUM, especially for firms like private equity or venture capital, might include capital commitments not yet drawn from the Limited Partners, as noted above.
Merrill Lynch is now known as Merrill following their acquisition by Bank of America in 2009. They are currently the Wealth Management division of Bank of America and employ over 19,000 advisors. Assets under management for Merrill total over $2.75 trillion.
A higher AUM often indicates investor confidence, signaling that the fund is well-established and trusted. Key Importance of AUM: Liquidity and Stability: Funds with larger AUM tend to have better liquidity, allowing fund managers to easily manage redemptions without affecting the fund's performance.
As of January 2025, the Vanguard Group ranked second among global fund managers by assets under management (AUM). Rounding out the top three, Charles Schwab ranked third, managing fund assets totaling 7.32 trillion U.S. dollars. BlackRock was the largest fund manager, managing fund assets exceeding 11.48 trillion U.S.
Industry standards show that financial advisor fees generally range between 0.5% and 1.5% of AUM annually. Placement of a 2% fee may appear steep compared to this average. However, this fee might encompass more comprehensive services or cater to more unique, high-maintenance portfolios.
J.P. Morgan Personal Advisors charges between 0.50% and 0.60% of your assets under management annually. It's 0.60% for portfolios below $250,000, 0.50% for portfolios over $250,000. J.P. Morgan Personal Advisors does not charge commissions for selling investments.
AUM fees typically decrease as account size increases, and advisors may negotiate their fee with their most affluent clients. Advisors will usually establish a minimum account size as small accounts are labor-intensive and challenging to manage profitably.
Assets under management (AUM) is the market value of the investments managed by a person or entity on behalf of clients. AUM can reveal the management performance and experience when investors evaluate a company or investment.
Om or Aum is a beej mantra, a sacred sound, symbol, and Upanishad. Om serves as a sonic representation of the divine and is referred to as “Pranava” or the cosmic sound. It is said to encapsulate all of past, present, and future.
What Is the Meaning of AUM (Om)? Aum (ॐ) is the vibration by which the Supreme Spirit brings all things into manifestation. It is the Holy Ghost of the Christian Trinity.( 1) Paramhansa Yogananda has explained that everything — all matter, all energy, all thoughts — exists in Aum.(