What is Assets Under Management (AUM)?
Assets Under Management (AUM) is the total market value of investments that a financial institution (asset manager, hedge fund, VC, wealth manager, robo-advisor) manages on behalf of clients. AUM is the primary size metric for the asset management industry: it determines management fee income, market position, and operational scale.
How AUM is calculated
For different fund types:
- Mutual funds / ETFs: NAV × shares outstanding, calculated daily
- Hedge funds: Sum of investor positions, monthly NAV
- VC / PE funds: Committed capital (during investment period) + NAV of portfolio (during harvest)
- Wealth managers: Sum of client portfolio market values
- Sovereign wealth funds: Government-published total reserves
Largest AUM (2025, global)
- BlackRock: ~$11T+ (largest asset manager)
- Vanguard: ~$10T+ (passive ETF/mutual fund giant)
- Fidelity: ~$5T+
- State Street Global Advisors: ~$4T+
- JPMorgan Asset Management: ~$3.5T+
- Türkiye top asset managers (2025): Ak Portföy, İş Portföy, Garanti BBVA Asset Management, Yapı Kredi Portföy
AUM by fund type
- Passive (ETFs, index funds): ~$15T+ global; rapidly growing
- Active mutual funds: ~$30T+; slower growth
- Hedge funds: ~$4T+
- Private equity: ~$8T+
- Venture capital: ~$1T+
- Real estate: ~$5T+
AUM fee structure
| Type | Typical fee |
|---|---|
| Passive ETF | 0.03-0.20% per year |
| Active mutual fund | 0.5-1.5% per year |
| Hedge fund | 2/20: 2% management + 20% performance |
| VC fund | 2/20 (declining post-investment period) |
| Wealth manager | 0.5-1.0% per year |
| Robo-advisor | 0.15-0.50% per year |
AUM growth dynamics
AUM grows via three channels:
- Net inflows: New investor capital minus redemptions
- Market appreciation: Portfolio asset values rising
- Acquisitions: Buying competitor or product line
2024-2026 trend: passive ETFs continue grabbing share from active funds; alternative assets (PE, VC, crypto) grow despite mainstream skepticism.
AUM regulatory disclosure
- US SEC Form ADV: RIAs disclose AUM annually
- EU AIFMD: Alternative fund managers report AUM to their home national competent authorities
- Türkiye SPK: portfolio management companies need SPK authorisation and must meet minimum capital and capital adequacy rules set by the Board
Practical implications for founders
For startups building wealth management or robo-advisor products in Türkiye: an SPK portfolio management company (portföy yönetim şirketi) licence, with minimum capital and capital adequacy requirements set by the SPK; AUM-based fee models vs platform or subscription trade-offs. For founders raising from family offices: AUM tier matters: multi-billion AUM family offices write larger checks but slower decisions.
Sources. Capital Markets Board of Türkiye (SPK).