rise and fall. They may increase when investment performance is positive, or when new customers and new assets are brought into the firm. Rising AUM normally increases the fees which the firm generates. Conversely, AUM are reduced by negative investment performance, as well as redemptions or withdrawals, including fund closures, client defections and other generally adverse events. Lower AUM tend to result in lower fees generated. Content The precise definition of AUM varies by institution, as some firms may include certain assets as being "under management", while others may not. Some include bank deposits, mutual funds, and cash in their computation, while others only consider the discretionary funds that investors have given an advisor to trade on their behalf. While different firms may include assets that others do not in their AUM computation, Assets Under Management typically include: Capital raised from investors; Capital belonging to the principals of the fund management firm. For example, if fund managers contribute of their own capital to the fund and raise additional $10B from investors, their AUM is . Net asset value vs assets under management Net asset value (NAV) is the total value of assets minus all its liabilities of a fund, such as a mutual fund or ETF, often shown on a per-share basis. NAV shows what price shares in a fund can be bought and sold at. AUM by contrast refers to the value of assets managed by an individual or firm, not a fund. Unlike NAV, AUM is in reference to the total value of assets being managed rather than expressed on a per-share basis. Assets under advisement A related concept in the investment industry to assets under management is assets under advisement (AUA). This measures the total market value of all the financial assets that are advised by a financial institution, which is typically an investment consultant or intermediary. The advisory firm generally does not have discretion to manage the assets, but rather provides advice as to how those assets may be managed. For example, consider an investment consultant that is hired by a pension fund to advise the fund on portfolio construction, asset allocation, fund manager selection, etc. The consultant would include the in their firm's AUA. The consultant does not have discretion to manage the assets and thus would not include the assets in their firm's AUM. Global investment consultants with the largest AUA include Mercer (