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Form ADV Part 1A Item 5F(2)(c) · Answer type: currency · Item 5F - Regulatory Assets Under Management
Item 5F(2)(c) is the firm's total regulatory assets under management (RAUM) in U.S. dollars. This represents the combined value of discretionary and non-discretionary assets under continuous and regular supervision that qualify for regulatory AUM reporting on Form ADV.
Total regulatory AUM is the primary size metric for investment advisory firms. It combines 5F(2)(a) discretionary RAUM where the adviser can trade without client approval for each transaction, and 5F(2)(b) non-discretionary RAUM where clients retain approval authority over individual trades.
RAUM differs from marketing "assets under advisement" or "assets influenced" figures that some firms use in promotional materials. Regulatory AUM follows specific SEC definitions requiring continuous and regular supervisory services under 5F(1), not occasional advice or project-based consulting.
Total RAUM is used in some Form ADV registration-basis questions, including Item 2A thresholds. This field does not state an examination schedule or predict how regulators will treat the firm.
5F(2)(c) represents assets as of the Form ADV reporting date, not a real-time or average figure. Asset values fluctuate with market conditions, client additions and departures, and portfolio performance, so RAUM is a point-in-time snapshot for regulatory purposes.
The calculation includes only assets where the firm provides ongoing portfolio supervision services. It excludes financial planning clients without managed assets, educational seminar attendees, newsletter subscribers, or other advisory relationships that do not involve continuous securities portfolio management.
Total RAUM also excludes assets in separately managed account (SMA) arrangements where other firms provide the primary advisory services, even if this firm provides some consultation or oversight role without continuous supervision authority.
For firms with multiple service lines, 5F(2)(c) might include mutual fund assets they advise, private fund assets, institutional separate accounts, and individual client portfolios all combined into one regulatory AUM figure when they meet the continuous supervision criteria.
Some firms show dramatic RAUM changes between reporting periods due to client additions or departures, particularly institutional clients or private funds that can represent large individual relationships affecting total firm assets significantly.
5F(2)(c) - Total regulatory assets under management (currency).
This is one field in Item 5F, "Regulatory Assets Under Management." The total should equal the sum of discretionary and non-discretionary regulatory AUM when both categories are present.
Total regulatory AUM provides the clearest picture of the firm's advisory business scale. When comparing advisers, 5F(2)(c) shows whether you are considering a small boutique firm, mid-sized regional adviser, or large institutional manager in terms of assets under supervision.
RAUM shows the amount of assets reported under the regulatory definition. It does not establish operational resources, research capability, technology, staff depth, performance, service quality, or client fit.
Some investors prefer smaller firms for personalized attention and specialized expertise, while others favor larger firms for comprehensive resources and institutional-level capabilities. The right size depends on your service preferences, account size, and complexity of advisory needs.
5F(2)(c) also does not predict fee competitiveness, since both large and small firms can offer attractive or expensive fee structures depending on their business models and target markets.
The figure does not indicate client satisfaction, investment performance, or adviser quality. Some small firms with modest RAUM provide exceptional service and results, while some large firms with substantial assets may not suit individual client needs despite their scale.
Use RAUM as a reported scale measure, then review services, client types, and fees separately.
The value is a dollar amount representing total regulatory AUM as of the Form ADV reporting date. For example, 250000000 represents $250,000,000 in total regulatory assets under management.
On the firm's Best Investors ADV panel, find Item 5F and look for the total RAUM labeled 5F(2)(c). This should equal the sum of 5F(2)(a) discretionary and 5F(2)(b) non-discretionary amounts when both are present.
When both fields are present, total RAUM divided by 5F(2)(f) total account count gives only a mathematical average across reported RAUM accounts. It does not show the typical account, client wealth, account minimum, or client type.
Also compare 5F(2)(c) to 5C(1) total clients served when available to understand the relationship between assets under management and total client relationships, since some clients may not have RAUM accounts.
When evaluating firms, consider total RAUM in context with your account size, service needs, and preferences for firm scale rather than using arbitrary size criteria to determine suitability.