What Is Assets Under Management (AUM)?

While “AUM” is used broadly across the industry to describe how much money a firm manages, the SEC’s specific reporting requirement for Form ADV uses a more precisely defined version of this figure called Regulatory Assets Under Management (RAUM), which follows a set calculation methodology. Outside of regulatory filings, firms may present AUM in marketing materials using their own reasonable methodology, provided it’s not misleading and is clearly explained.

Because AUM growth is often used as a headline marketing metric, firms should be careful that any AUM figures used publicly are accurate, consistently calculated, and don’t conflict with what’s reported on Form ADV.