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Form ADV Part 1A Item 5B(1) · Answer type: number · Item 5 - Employees
Item 5B(1) asks approximately how many of the employees reported in Item 5A perform investment advisory functions (including research).
This counts the subset of total employees who do the core work of investment advising - making investment decisions, conducting research, analyzing securities, managing portfolios, providing financial planning, and giving investment recommendations to clients. It excludes purely administrative, marketing, or operational staff.
The count includes research analysts, portfolio managers, financial planners, client relationship managers who provide investment advice, and senior staff who oversee investment decisions. Support staff like receptionists, accountants, and compliance officers typically do not count unless they also perform advisory functions.
"Including research" clarifies that investment research activities count toward advisory functions even when researchers do not directly interact with clients. Firms often have dedicated research teams whose analysis supports portfolio management and client advice.
This figure comes from the total employee count in Item 5A, so it cannot exceed that number. Some firms have most employees in advisory roles, while others have substantial non-advisory operations that support the investment business.
5B(1) - Approximately how many of the employees reported in 5.A. perform investment advisory functions (including research).
This appears in Item 5B, Employees, which breaks down the firm's workforce by function and registration status.
The advisory employee count indicates the firm's capacity for investment analysis, client service, and portfolio management. A higher number suggests more resources dedicated to core advisory functions versus administrative or sales activities.
However, more advisory employees does not guarantee better investment performance or client service. Some firms operate efficiently with smaller teams, while others require larger staffs for their business models or client bases.
The count also does not reveal employee experience levels, qualifications, or specific responsibilities. A firm might have many junior employees or a few senior professionals, both of which could show similar advisory function counts.
Review total client count in Item 5C(1) and regulatory AUM in Item 5F(2)(c) as separate firm-scale measures. Form ADV does not show client assignments, employee workloads, or which employees support RAUM accounts.
The number also does not indicate which employees might work on your account or their individual capabilities. Client assignments depend on firm policies, account size, and service arrangements not captured in this aggregate count.
Look for the approximate number in Item 5B(1) on the firm's Best Investors ADV panel. Compare this with the total employee count in Item 5A to see what percentage of staff performs advisory functions.
A count close to the total employee figure suggests most staff members are involved in investment advisory work. A much smaller number indicates significant non-advisory operations like administration, technology, or compliance.
Review related employee counts in Item 5B(2) broker-dealer representatives and Item 5B(3) state IAR registrations to understand professional licensing and dual roles within the advisory workforce.
Use the advisory employee count as a staffing measure only. It does not establish an adviser-to-client ratio, operational capacity, or personalized service.
Keep in mind that employees can appear in multiple Item 5B categories when they hold different registrations or perform various functions within the firm.