What Is the Difference Between AUM And FUM?

Asset under management (AUM) and funds under management (FUM) are two terms used in the financial industry to refer to the amount of money being managed by an individual or institution. AUM is a measure of the total value of all assets held by an entity, while FUM measures only those assets that are invested in collective investment vehicles, such as mutual funds or hedge funds. AUM includes all securities, cash equivalents, derivatives and other financial instruments owned by an investor or institution. Conversely, FUM includes only those investments that have been pooled with others and professionally managed. 

Both AUM and FUM are important metrics for organisations in the financial sector, as they provide insight into how well their investments are performing compared to the market. Additionally, AUM and FUM can be useful for investors to gauge how much money is being managed by a particular fund manager or institution. As such, it’s important for organisations in the financial industry to track their AUM and FUM in order to make informed decisions about their investments. 

The two terms are closely related, but they should not be confused with each other. While both AUM and FUM measure the amount of assets held by an entity, they do so in different ways: AUM considers all assets under an investor's control, while FUM only considers those investments that have been pooled together into collective investment vehicles. Furthermore, changes in FUM may not always reflect corresponding changes in AUM, as FUM can be affected by inflows and outflows of capital from collective investment vehicles, whereas AUM is more closely tied to the overall market performance.