Glossary

Assets Under Management (AUM)

Assets under management measures the total market values of all the funds controlled by an individual or financial institution on behalf of their clients.

What Is Assets Under Management (AUM)?

Assets under management (AUM), also known as funds under management, is the total market value of investments or assets that are managed by a hedge fund, mutual fund, or wealth management company on behalf of their clients. AUM changes depending on the performance of the funds and the money investors are putting in or taking out.
Assets under management (AUM) is a well-known practice in the crypto and the DeFi space. Cypto traders, who are just stepping into the crypto space need to find a reliable wallet and exchange that support their desired cryptocurrencies that becomes quite hectic for beginners. It is preferred to go for the wallets and exchanges that support a large number of coins and tokens.
Due to the complications involved in the process, many agencies are coming forward with a new tool called asset management. Rather than dealing with several accounts and wallets, crypto asset management platforms do the job of helping customers by merging their holdings. 

AUM is a significant marker that manages all the aspects of funds and crypto. If the AUM is $1 million, then it is considered small fry, but if it’s more than $1 billion, then it’s considered a big project. Since regulated funds need the proper third-party services, such as fund administrators, auditors, and custodians, they tend to require at least $10 million to cover overhead costs. In most countries, managing a fund requires a license by local security exchange commissions.

Author:

Varit Bulakul is the president of investment banking and digital assets at The Brooker Group, a publicly listed financial consultancy and capital management company based in Thailand. Varit was instrumental in the Brooker Group’s move to digital assets and drives the company’s vision to bring the digital asset ecosystem to the traditional financial services sector. The Brooker Group was the first publicly listed company to invest directly into DeFi and DApps projects. 

Prior to joining the Brooker Group, Varit was an auditor at Deloitte in Bangkok and received a BA in science in accounting and finance from Lehigh University and a master’s degree in accounting from Boston College.