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NAICS Code· 523940

NAICS 523940: 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 Cross-References.Show more

NAICS 523940 – Portfolio Management and Investment Advice encompasses professional services related to the strategic oversight, asset allocation, risk assessment, and performance monitoring of financial portfolios on behalf of government entities. This includes advisory services for public pension funds, trust accounts, endowments, and other government-held investment vehicles, as well as the development of investment policies, compliance frameworks, and fiduciary governance structures.

21
Active Contracts
$12.2M
Total Obligations (12mo)
11
Awarded Contracts (12mo)
10
Contractors Awarded (12mo)
19
Median Bidders per Award
+313.9%
YoY Growth

Industry Spending Overview

Federal obligations, top contractors and agencies, and related industry codes for NAICS 523940.

AI Industry Description

NAICS 523940 – Portfolio Management and Investment Advice encompasses professional services related to the strategic oversight, asset allocation, risk assessment, and performance monitoring of financial portfolios on behalf of government entities. This includes advisory services for public pension f...

NAICS 523940 – Portfolio Management and Investment Advice encompasses professional services related to the strategic oversight, asset allocation, risk assessment, and performance monitoring of financial portfolios on behalf of government entities. This includes advisory services for public pension funds, trust accounts, endowments, and other government-held investment vehicles, as well as the development of investment policies, compliance frameworks, and fiduciary governance structures. Services often involve quantitative modeling, macroeconomic forecasting, alternative asset class analysis, and adherence to regulatory standards such as ERISA or Governmental Accounting Standards Board guidelines. Within the federal contracting landscape, this NAICS supports mission-critical financial stewardship, ensuring that taxpayer-funded assets are managed prudently to meet long-term fiscal obligations. No contractor data is available to identify top performers in this sector, suggesting a fragmented or highly specialized vendor base that may include boutique asset management firms, registered investment advisors, and financial consulting firms with government clearance and fiduciary expertise. The competitive landscape is likely dominated by firms with deep expertise in public sector finance and regulatory compliance rather than large-scale primes. No agency data is available to identify primary buyers, though demand is typically driven by agencies managing large trust funds or retirement systems, such as the Office of Personnel Management, Department of Treasury, or independent federal retirement boards. Procurement is often tied to fiduciary oversight mandates and long-term liability management. The market is characterized by low volume but high complexity, with opportunities concentrated in agencies requiring specialized financial advisory capabilities. Contractors with proven experience in public pension management, ESG integration, and government-specific investment regulations are best positioned to compete. Procurement tends to be project-based or through long-term advisory contracts, favoring firms with established credibility and security clearances.

Small Business Size Standard

The SBA threshold that decides who can bid NAICS 523940 work as a small business.

$47.0M
Applies to the whole industry code

The SBA cap for this NAICS (13 CFR 121.201). A business at or under it can self-certify as small for work in this code, which is what makes it eligible for a small-business set-aside. The cap is set per NAICS, so the same company can be small in one code and not in another.

13 CFR 121.201, effective January 1, 2026. The SBA revises the table roughly once a year.

Top Contractors

Companies with the highest total award value under NAICS 523940, ranked by dollars won.

Competition

How many companies historically bid on federal awards in NAICS 523940, from bidder counts reported on USAspending.

Crowded Field

Median above 5 bidders per reported award. · 40 reported awards

Median Bidders

19

Per reported award, all-time

Single-Bid Awards

43%

Share of reported awards with one bidder

10+ Bidder Awards

57%

Share of reported awards with 10+ bidders

Reported Awards

40

87% of 46 total awards

Bidder Count Distribution by Fiscal Year

Share of reported awards in each bidder-count bracket per federal fiscal year.

How this code compares up the NAICS hierarchy. Parent cohorts pool every code under their prefix, so they are the steadier baseline when a 6-digit sample is thin.

Industry FamilyCompetitionMedian BiddersSingle-BidBidder MixReported Awards
523940This Code
Portfolio Management and Investment Advice
Crowded Field1943%
4087% of 46
52394NAICS Industry
Crowded Field1943%
4087% of 46
5239Industry Group
Other Financial Investment Activities
Usually Single-Bid177%
28,44395% of 30,049
523Subsector
Usually Single-Bid176%
29,55095% of 31,253
52Sector
Finance and Insurance
Usually Single-Bid171%
55,86385% of 65,585

Bidder counts reported on past federal awards in this NAICS (USAspending). An open opportunity has no bidders yet, so this is the historical norm for similar work, not a fact about this solicitation. Not all awards report bidder counts, and fewer bidders often means incumbent-held work rather than an easier win. Federal reporting of bidder counts fell from ~96% of awards (FY2016) to ~30% (FY2018 onward); the chart shows shares of reported awards, and washed-out stretches mark years with fewer than 30 of them.

Related NAICS Codes

Industries similar to Portfolio Management and Investment Advice, by shared sector, subsector, and industry group.

Explore contracts across multiple NAICS codes Browse all NAICS Codes

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NAICS 523940 FAQ

Frequently Asked Questions

NAICS code 523940 covers 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 Cross-References.

Recently Posted in Portfolio Management and Investment Advice

NAICS: 523940
New
SLED
RFP# 11-27, 403(b) Investment & Advisory Services
Solicitation # 11-27
The Lafayette Parish School System is soliciting proposals under RFP# 11-27 for a qualified investment consulting and advisory firm to serve as the Investment Advisor for its 403(b) Defined Contribution Plan. The plan currently manages approximately 28 million dollars in assets for roughly 1,320 participants. The primary objectives of this engagement are to reduce member costs, streamline operations by consolidating over 18 million dollars in legacy assets, and implement a comprehensive member education strategy. The selected advisor must act as an express ERISA fiduciary, either as a 3(21) non-discretionary co-fiduciary or a 3(38) discretionary investment manager, and ensure compliance with IRS 403(b) regulations, SECURE 2.0 updates, and state public school retirement mandates. The contract is intended for an initial five-year term with options for one-year renewals. Compensation will be based on asset thresholds, requiring a flat annual fee for assets up to 15 million dollars and either a flat or asset-based fee for assets between 15 million and 30 million dollars; third-party compensation such as commissions or 12b-1 fees is strictly prohibited. Proposals must be submitted electronically via Beacon Bid and in six physical copies by November 17, 2026, at 2 PM CST. To ensure a blind review, all submissions must be strictly anonymized, omitting all firm names and logos. Evaluation is based on a 170-point scale, with the highest weight placed on fiduciary status and compensation. Finalists must present in person to the Board Insurance Committee to avoid automatic disqualification, with the final contract award scheduled for December 10, 2026.
Lafayette Parish School System

POSTED

3 days ago

DEADLINE

in about 1 month
View Details
NAICS: 523940
SLED
Request for Proposals for Financial Advisory Services
Solicitation # 39266
The Town of Eastford, Connecticut, is soliciting sealed proposals from qualified firms to provide Independent Municipal Financial Advisory Services. The selected firm will support the Town's debt management and long-term fiscal strategy, with a scope of work that includes advising on the issuance and management of municipal debt for infrastructure and public facilities, assisting with long-term loans, providing analytical support, and conducting pre-audit reviews. The advisor is expected to attend Board of Selectmen or Town Meeting sessions and must operate in accordance with MSRB Rule G-23, Connecticut statutes, and industry best practices. Proposals must be sealed, marked as EASTFORD FINANCIAL ADVISORY SUBMISSION, and submitted to the Office of the First Selectman by 12:00 pm on October 21, 2026, with the contract award scheduled for November 9, 2026. The Town intends to establish a multi-year agreement with optional renewal periods, subject to annual appropriation. Evaluation will be based on firm and personnel qualifications, experience, proposal clarity, understanding of Eastford's needs, references, fee structure, and legal disclosures. Required certifications include SEC and MSRB registration, a statement of independence, and disclosures regarding regulatory actions or conflicts of interest within the last three years. The selected firm must maintain significant insurance coverages, including 3 million dollars per claim for Professional Liability and 1 million dollars per occurrence for General Liability, naming the Town of Eastford as an additional insured. Services cannot commence until all insurance documents are approved and written authorization is issued.
DAS Procurement

POSTED

12 days ago

DEADLINE

in 8 days
View Details
NAICS: 523940
SLED
Uniformed Retirement System - Investment Consulting Services
Solicitation # CES100001123
Fairfax County is seeking proposals for a non-discretionary investment consulting firm to provide comprehensive advisory services for the Uniformed Retirement System (URS), which manages approximately 2.5 billion dollars across public and private markets. The selected consultant will support the URS Board of Trustees and Staff in areas including strategic asset allocation, the development and updating of the Investment Policy Statement, manager research and selection, risk analytics, and performance reporting. Key deliverables include monthly flash, quarterly, and annual performance reports aligned with Global Investment Performance Standards, as well as the oversight of private market pacing plans and commitments. The Chief Investment Officer will serve as the primary point of contact for the consultant. Proposals must be submitted electronically via the Euna Bonfire portal by November 2, 2026. The evaluation process consists of a preliminary review, potential oral presentations for high-rated offerors, and a final selection based on the best overall proposal. Award criteria are weighted toward the technical narrative at 50 percent, the statement of qualifications at 30 percent, and the reasonableness of the fee proposal at 20 percent. Offerors are required to propose a single, all-inclusive annual fee for an initial three-year term with two optional extension years. Compliance requirements include maintaining statutory workers compensation and employer liability insurance of at least 1 million dollars and adhering to strict cybersecurity, HIPAA, and ADA standards. Payment is subject to appropriations by the Fairfax County Board of Supervisors, with invoices submitted quarterly and paid within 30 days of receipt. Required submission documents include a technical narrative and several certifications regarding business classification, ethics in public contracting, and debarment status.
Fairfax County

POSTED

13 days ago

DEADLINE

in 19 days
View Details

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