Author: Room Zero – roomzero.com
AUM (Assets under Management) is probably the most common metric by which asset management firms are compared. AUM is a point in time measure of the total assets being managed by a buy-side firm.
AUM & Flow as a dataset looks to explain the change in AUM from one point in time to another. It doesn’t just include the flows that have been reported by a transfer agent; it should include other factors such as the impact of currency and the performance of the funds themselves. Ensuring Product and Client information are woven into that mix appropriately then opens up the explanation to a far broader set of perspectives. AUM & Flow is therefore a reliable measure of a firm’s assets under management, where they have adhered to the rules and principles of double counting. Between two points in time, AUM & Flow seeks to describe and explain the change.”
