A category of assets (financed by corresponding funds) that are beneficially owned by an entity’s clients and not reported on its balance sheet, while being managed by the entity on behalf of respective clients for services such as selection of investments and investment advice. Assets under management may also be administered by an entity (much like assets under administration). Though such assets are usually placed under an entity’s control, but the element of control (accounting control) does not exist, and hence the assets are recorded off-balance sheet.

Funds under management are professionally managed assets against fees for the financial services provided the managing entity.

Funds under management are also known as assets under management (AUM).