# Assets Under Management

*Careers & Credentials — Finicade finance glossary*

AUM is the total market value of assets a firm manages, and it's the industry's headline metric because fees are usually a percentage of it. That link creates a structural incentive to gather assets rather than to close a strategy at its capacity limit — a genuine conflict, since strategies that work at $500m frequently stop working at $10bn.

**Also known as:** AUM, assets under advisement

**Related terms:** [Management Fee](https://finicade.com/glossary/management-fee), [Wealth Management](https://finicade.com/glossary/wealth-management), [Hedge Fund](https://finicade.com/glossary/hedge-fund), [Fund of Funds](https://finicade.com/glossary/fund-of-funds), [Expense Ratio](https://finicade.com/glossary/expense-ratio)

Source: https://finicade.com/glossary/assets-under-management