Portfolio Management and Investment Advice

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

Establishments primarily engaged in investment banking, securities intermediation, and commodity contracts intermediation are classified in Industry Group 5231, Securities and Commodity Contracts Intermediation and Brokerage; Establishments primarily engaged in acting as principals (except investment bankers, securities dealers, and commodity contracts dealers) in buying or selling financial contracts are classified in Industry 523910, Miscellaneous Intermediation; Establishments primarily engaged in administering personal estates are classified in U.S. Industry 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 are classified in Industry 525920, Trusts, Estates, and Agency Accounts; Establishments providing investment advice in conjunction with their primary activity, such as the sale of stocks, bonds, annuities, and real estate, are classified according to their primary activity; and Establishments known as publishers providing generalized investment information to subscribers are classified in Subsector 513, Publishing Industries.