Your report may show that a firm's total assets under management (AUM) have gone up or down over time. This guide helps you understand what those changes can mean and how to respond.
Rising AUM often reflects new clients, additional assets from existing clients, or acquisitions of other practices. Sharp or sustained declines can point to lost clients, market outflows, business line exits, or reputational or regulatory pressure.
Meaningful changes in total assets under management can signal whether a firm is growing in a healthy way or losing clients and assets. Sharp declines, especially when combined with other negative indicators, can point to stress, reputational issues, or business line changes that may affect service and stability.
1. What to Review in Your Alert
The complete details of the AUM change, not just the summary
The size of the change (for example: small, steady growth vs. a sudden spike or drop).
The timeframe of the change and whether it coincides with market volatility, news, or leadership changes.
Look for confirming or conflicting signals in other metrics like advisor headcount, client retention, or new disclosures to confirm if they are moving in the same direction.
2. Questions to Ask Your Advisor or Firm
What explains the recent increase or decrease in AUM at the firm?
Are changes mostly due to market performance, new clients, or clients leaving?
Looking at the AUM chart over time, what caused these changes - market performance, clients moving money in or out, or the firm buying or selling parts of its business?
Has this trend affected staffing, service levels, or the firm's long-term strategy?
3. When to Consider Taking Further Action
If AUM is falling quickly and the firm cannot provide a clear explanation.
If you notice service issues, turnover, or other warning signs at the same time.
If you’re uncertain about your firm’s direction, it may be time to consider whether it’s still the right fit for you. You can begin exploring other options while continuing to keep an eye on your accounts.
Use our search tool to quickly find, compare, and continuously monitor new advisors and firms, giving you a clear picture of their background and track record before you make your decision. You can also learn what to expect when changing firms and how it could affect your finances here.
If you have questions or feel uncertain, reach out to us anytime at support@advisorcheck.com.
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