What are Assets Under Management in the context of a Registered Investment Advisor (“RIA”)?

Definition: Assets Under Management (“AUM”) typically refers to the total amount of client assets of a financial advisor’s practice (both on a fee and commission basis.) With respect to an RIA, “assets under management” has a strict SEC definition to include only advisory assets that are directly managed by the advisor.

When used in an RIA context: “The RIA has $500 million in assets under management.”

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