Analysis
NAICS 525 is the 2022 subsector for funds, trusts, and other financial vehicles, part of 52 (Finance and Insurance). Census lists 46 example activities under it in the official index.
Between 2018 and 2023 the number of establishments grew 85% and employment rose 123%. The 2018 count used NAICS 2017, so part of a large move can come from codes being redefined rather than from businesses opening or closing.
County Business Patterns counts 2,006 US establishments in this code in 2023, employing 9,639 people at an average annual payroll of $173,124 per employee (99th percentile of national industries). 82% of the establishments have fewer than five employees, which marks it as a small-business industry.
Across its national industries Census lists 46 index entries; typical ones are employee benefit pension plans, employee benefit plans (except pension), compensation, workers, insurance funds and funds, mutual, open-ended.
It splits into 2 more detailed codes. The largest by establishments is 5259 (Other Investment Pools and Funds) with 2,006.
Official definition
Industries in the Funds, Trusts, and Other Financial Vehicles subsector group legal entities (i.e., funds, plans, and/or programs) organized to pool securities or other assets on behalf of shareholders or beneficiaries of employee benefit or other trust funds. The portfolios are customized to achieve specific investment characteristics, such as diversification, risk, rate of return, and price volatility. These entities earn interest, dividends, and other investment income, but have little or no employment and no revenue from the sale of services. Establishments with employees devoted to the management of funds are classified in Industry Group 5239, Other Financial Investment Activities.
Establishments primarily engaged in holding the securities of (or other equity interests in) other firms are classified in Sector 55, Management of Companies and Enterprises. Equity real estate investment trusts (REITs) that are primarily engaged in leasing buildings, dwellings, or other real estate property to others are classified in Subsector 531, Real Estate.
Source: US Census Bureau, NAICS 2022 Manual.
Index entries (46)
- Employee benefit pension plans
- Employee benefit plans (except pension)
- Compensation, workers, insurance funds
- Funds, mutual, open-ended
- Bankruptcy estates
- Closed-end investment funds