Analysis
NAICS 523940 is the 2022 national industry for portfolio management and investment advice, part of 52394 (Portfolio Management and Investment Advice). Census lists 16 example activities under it in the official index.
Census lists 5 related activities that belong elsewhere, most often in 5231, 523910, 523991 and 525920. Businesses that do several things are classified by their primary activity, the one that generates the most value, so check those boundaries before settling on this code.
Its index entries, the activities Census uses to assign businesses to this code, include certified financial planners, customized, fees paid by…, financial investment advice services, customized, fees paid…, financial planning services, customized, fees paid by client and investment advice consulting services, customized, fees…, among 16 in all.
For example, investment banking, securities intermediation, and commodity contracts intermediation are classified in 5231 (Securities and Commodity Contracts Intermediation and Brokerage) instead.
County Business Patterns publishes no national count for it, either because the code is out of the survey's scope or because the figures are suppressed to protect individual businesses.
Official definition
This industry comprises establishments primarily engaged in managing the portfolio assets (i.e., funds) of others on a fee or commission basis and/or providing customized investment advice to clients on a fee basis. Establishments providing portfolio management have the authority to make investment decisions, and they derive fees based on the size and/or overall performance of the portfolio. Establishments providing investment advice provide financial planning advice and investment counseling to meet the goals and needs of specific clients, but do not have the authority to execute trades.
Illustrative Examples:
Financial planning services, customized, fees paid by client Investment advisory services, customized, fees paid by client Managing trusts Portfolio fund managing
Source: US Census Bureau, NAICS 2022 Manual.
Not this code if…
| The business mainly does | Use instead |
|---|---|
| Investment banking, securities intermediation, and commodity contracts intermediation | 5231 Securities and Commodity Contracts Intermediation and Brokerage |
| Acting as principals (except investment bankers, securities dealers, and commodity contracts dealers) in buying or selling financial contracts | 523910 Miscellaneous Intermediation |
| Administering personal estates | 523991 Trust, Fiduciary, and Custody Activities |
| Legal entities (i.e., trusts, estates, or agency accounts) administered on behalf of the beneficiaries under the terms of a trust agreement, will, or agency agreement | 525920 Trusts, Estates, and Agency Accounts |
| Establishments known as publishers providing generalized investment information to subscribers | 513 Publishing Industries |
Index entries (16)
- Certified financial planners, customized, fees paid by client
- Financial investment advice services, customized, fees paid by client
- Financial planning services, customized, fees paid by client
- Investment advice consulting services, customized, fees paid by client
- Investment advice counseling services, customized, fees paid by client
- Investment advisory services, customized, fees paid by client
- Investment management
- Managing investment funds
- Managing mutual funds
- Managing personal investment trusts
- Managing trusts
- Mutual fund managing
- Pension fund managing
- Personal investments trusts, managing
- Portfolio fund managing
- Private equity fund managing