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Form ADV Part 1A Item 5I(2)(b) · Answer type: currency · Item 5 - Wrap Fee Programs
Item 5I(2)(b) reports the dollar amount of the firm's regulatory assets under management attributable to acting as portfolio manager for a wrap fee program. This represents assets where the firm provides investment management services within wrap programs sponsored by other firms or external platforms.
As a wrap program portfolio manager, the firm manages client portfolios according to specific investment strategies while participating in another firm's wrap fee program structure. The wrap sponsor handles client relationships, program operations, and fee collection, while the portfolio manager focuses on investment decisions and portfolio implementation.
This role differs from wrap program sponsorship where the firm operates the entire program structure. As a portfolio manager within wrap programs, the firm typically receives a portion of the wrap fee as compensation for investment management services, while the sponsor retains responsibility for client service and program administration.
5I(2)(b) represents only the portfolio manager role portion of wrap-related assets, separate from 5I(2)(a) sponsor regulatory AUM and 5I(2)(c) dual sponsor-and-manager AUM. Form ADV separates these roles to prevent double-counting when firms participate in multiple ways.
Portfolio manager participation in wrap programs allows investment management firms to access client assets through established wrap platforms without operating their own program infrastructure. This can provide access to clients who prefer wrap fee arrangements while allowing the manager to focus on investment strategy rather than program operations.
The portfolio manager regulatory AUM reflects assets from clients who selected the firm's investment strategies through wrap program platforms, typically based on performance records, investment approaches, and strategy fit with client objectives within the wrap sponsor's manager lineup.
Many specialized investment managers participate as portfolio managers in multiple wrap programs simultaneously, allowing broader client access to their investment strategies through various sponsor platforms while maintaining focus on investment management rather than client service operations.
5I(2)(b) - Amount of your regulatory assets under management attributable to acting as portfolio manager for a wrap fee program (currency).
This is one field in Item 5I(2), "Wrap Fee Program Assets." The firm reports portfolio manager-role regulatory AUM as of its Form ADV reporting date.
5I(2)(b) shows the scale of the firm's participation as an investment manager within wrap programs sponsored by other firms. If you access investment managers through wrap fee platforms, this figure indicates the firm's experience serving clients in wrap program environments.
Substantial portfolio manager AUM can indicate the firm's track record and acceptance within wrap program platforms, suggesting that wrap sponsors have selected them based on investment performance, operational capabilities, and client suitability criteria.
The figure does not tell you which wrap programs include the firm as a manager, their investment performance within those programs, fee splits between managers and sponsors, or client satisfaction levels. Wrap program performance and costs depend on both manager selection and sponsor platform efficiency.
Portfolio manager regulatory AUM also does not indicate the firm's ability to serve clients outside wrap program structures. Some excellent investment managers participate in wrap programs while also providing traditional separate account management or other advisory services.
The amount does not guarantee continued participation in wrap programs, as sponsors periodically review and may replace managers based on performance, client preferences, or program changes that could affect future asset levels.
The value is a dollar amount representing portfolio manager-role regulatory AUM as of the Form ADV reporting date. For example, 15000000 represents $15,000,000 in wrap portfolio manager regulatory AUM.
On the firm's Best Investors ADV panel, find Item 5I and look for 5I(2)(b) in the wrap assets section. Compare this to 5I(2)(a) sponsor AUM and 5I(2)(c) dual-role AUM to understand the firm's wrap program participation mix.
Also compare 5I(2)(b) to 5F(2)(c) total regulatory AUM to see what portion of the firm's advisory business operates through portfolio manager roles in wrap programs versus direct client relationships.
Zero or blank 5I(2)(b) typically means the firm does not serve as a portfolio manager in wrap programs, though they might sponsor their own wrap programs or focus entirely on traditional advisory relationships.
When considering firms that participate as wrap program managers, ask about which wrap platforms include their strategies, their track record within wrap programs, and whether they offer similar strategies through direct separate account relationships.