Answer
AUM is a key metric used in family offices and investment management to measure the total market value of assets handled for clients.
Definition: AUM stands for Assets Under Management, which refers to the total market value of investments managed on behalf of clients by a financial institution, family office, or investment firm.
Why It Matters:
- Indicates the size and capacity of a family office or fund
- Often used as a benchmark for fees and performance comparisons Example: A family office managing USD 300 million in portfolios would state its AUM as $300M.
FAQ:
Q: Does AUM include real estate?
A: Yes, if the office directly manages or oversees those assets.
Q: Is higher AUM always better?
A: Not necessarily—service quality and strategy matter too.
Editor’s Note:
AUM is a cornerstone metric in the wealth management industry and a key term every investor should understand.
Tags: AUM, family office metrics, wealth management glossary