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Form ADV Part 1A Item 5G(2) · Answer type: yn · Item 5G - Advisory Services
Item 5G(2) asks whether the firm provides portfolio management for individuals and/or small businesses. This is the primary service checkbox for advisers who manage personal investment accounts, family portfolios, or small business investment assets.
Portfolio management means ongoing supervision and decision-making for securities portfolios - not one-time advice or occasional recommendations. This includes selecting investments, monitoring holdings, making buy and sell decisions, rebalancing allocations, and adjusting strategies based on market conditions or client needs.
Individual portfolio management covers personal accounts, joint accounts, trust accounts, retirement accounts (IRAs, 401k rollovers), and similar individual investor relationships. Small business portfolio management includes investment accounts for partnerships, LLCs, S-corporations, and other smaller entities managing business assets or retirement plans.
5G(2) represents the traditional investment adviser service of running investment portfolios for people and smaller entities. Most individual investors seeking professional investment management should expect to see Yes on this checkbox when evaluating firms.
This differs from 5G(1) financial planning services that focus on broader financial advice, and from institutional services like 5G(3) investment company management or 5G(5) large business management that serve different client categories.
Many firms mark Yes on both 5G(2) and financial planning, offering comprehensive wealth management. Others focus purely on investment management without broader planning services. Some mark No on 5G(2) and Yes on other service categories, serving institutional clients or providing non-management advisory services.
The checkbox does not specify whether management is discretionary (adviser can trade without asking) or non-discretionary (client approval required for trades). That detail appears in the Item 5F regulatory AUM section.
5G(2) - Portfolio management for individuals and/or small businesses (Yes / No).
This is one checkbox in Item 5G, "Advisory Services." Firms mark each service they provide. Empty or No on a box means that service is not claimed on this checklist.
If you want professional management of your personal investment accounts or small business assets, look for Yes on 5G(2). This indicates the firm reports individual/small business portfolio management as a core service offering.
A Yes does not tell you the investment approach, performance results, fee structure, or minimum account requirements. Firms marking Yes might use active trading strategies, passive indexing, value investing, growth focus, or any other investment philosophy. They might charge asset-based fees, performance fees, or other compensation structures.
The checkbox also does not indicate service quality, communication frequency, or client satisfaction levels. Some firms with Yes provide excellent service while others disappoint clients. It only confirms the firm claims this service category on Form ADV.
For small businesses, 5G(2) covers investment management but not broader business consulting, tax planning, or operational advice. Those services might appear under 5G(12) Other or not be offered through the advisory business.
A No on 5G(2) means the firm does not claim individual/small business portfolio management as a service. This might indicate focus on institutional clients, financial planning without investment management, or specialized advisory services not involving ongoing portfolio supervision.
Yes
The firm reports providing portfolio management for individuals and/or small businesses. On Best Investors, find Item 5G on the firm's ADV panel and confirm 5G(2) is marked Yes.
Check the firm's regulatory AUM figures in Item 5F to understand the scale of assets under management. Also review other 5G checkboxes to see what additional services the firm offers - many individual-focused firms also provide financial planning, while others focus purely on investment management.
Ask the firm about minimum account requirements, investment approaches, fee structures, and whether they offer discretionary or non-discretionary management arrangements.
No
The firm does not report individual/small business portfolio management on 5G(2). Look at other marked 5G boxes to understand what services it does offer - possibly institutional management, financial planning without investment management, or specialized advisory services.
If you need individual portfolio management, consider whether the firm's other services meet your needs or look for firms with Yes on 5G(2). Some firms focused on planning or consulting can refer investment management to partner firms when needed.
Compare the firm's total client count in Item 5C and compensation methods in Item 5E to understand its business model when 5G(2) is No.