InsiderFlow › Glossary › What does AUM (assets under management) mean?

What does AUM (assets under management) mean?

AUM is the total wealth a fund or asset manager administers on behalf of clients: the measure of its size.

BlackRock is said to manage over $10 trillion: that's its AUM, the sum of all client capital across its funds and ETFs. AUM drives the manager's revenue, which collects percentage fees on that wealth.

For active funds, enormous AUM is a paradox: the more capital you run, the harder it is to beat the market, because your every move shifts prices. That's why some legendary funds close to new investors.

Concrete example

A fund with $10 billion AUM and 1% fees collects $100 million a year, whatever the results: which is why gathering assets is the real business of asset management.

How you see it in InsiderFlow

On InsiderFlow these concepts come alive on real data: what big funds and insiders are buying, explained every day.

Frequently asked questions

Is high AUM a guarantee of quality?

It's a guarantee of trust gathered, not future returns: size can even hinder performance.

Who has the world's largest AUM?

The passive giants: BlackRock and Vanguard, above $10 and $9 trillion respectively (indicative, growing figures).