523940 Portfolio Management and Investment Advice

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.

Examples Census gives

• 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, 2022 NAICS descriptions.

When to use a different code

Census classifies these close-sounding activities somewhere else. Businesses mainly engaged in:

• 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.
• Establishments known as publishers providing generalized investment information to subscribers are classified in Subsector 513, Publishing Industries.

Source: US Census Bureau, 2022 NAICS cross-references.

Businesses that use this code

• Financial advisor

Activities listed under 523940

The Census index assigns these 16 activities to this code. If your business matches one, this is your code.

• 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

Source: US Census Bureau, 2022 NAICS index file.

SBA size standard for 523940

To count as a small business for SBA loans and federal contracts under NAICS 523940, your business (including affiliates) must not exceed $47 million in average annual receipts. Check your business.

Source: SBA table of size standards, effective March 17, 2023.

Closest UK SIC 2007 codes

There is no official one-to-one link between NAICS and UK SIC. These codes share the same international class (ISIC Rev. 4: 6630, 6619), so treat them as a starting point and check the definition.

• 66190Activities auxiliary to financial intermediation n.e.c.UK SIC
• 66300Fund management activitiesUK SIC

Built from Census concordances 2022→2017 NAICS and 2017 NAICS→ISIC Rev. 4.

Similar codes to compare

• 523910Miscellaneous Intermediation