Assets Under Management (AUM)

Assets Under Management (AUM) is the primary metric used to measure the scale of an advisory practice. It represents the aggregate market value of all client portfolios managed by an advisor or firm. Advisory fees are often calculated as a percentage of AUM — typically 0.5% to 1.5% annually — making AUM growth both a business objective and a measure of client trust. For income-focused advisors, monitoring AUM alongside dividend yield and income reliability gives a more complete picture of client portfolio health than market value alone.