Assets Under Management (AUM) is a fundamental metric indicating the market value of all assets managed by an investment management firm.
Flows can be characterised as the investor-directed movement of assets in and out of investment products.
Every aspect of an asset manager’s operations involves an AUM – whether it’s a share class, a fund, a desk or an industry exposure to institutional clients.
AUM & Flow is therefore a key process and dataset across the entire firm – either used directly or as a key input.
The Board, shareholders, investment team, Compliance and Audit are all stakeholders – in addition to Finance & Distribution.
In a sense, how to calculate AUM & Flow is a fundamental building block for the entire firm.