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Net Flows

New client money coming in minus money withdrawn, over the period -- the organic growth engine of an asset manager, stripping out the effect of markets rising or falling. Positive net flows mean the firm is winning more assets than it is losing, which compounds fee revenue durably; persistent net outflows are the central risk for a traditional manager, because they shrink the fee base regardless of how markets perform. Read net flows alongside AUM growth to separate genuine franchise strength from a passive market tailwind.

Related terms

Absorption Rate · AFFO per Share · Allowed Return on Equity · Alternative Investments · Anchor Tenant · Assets Under Management

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