09/06/2023 Alexander

Insights on UK Companies House financial services segment data

We segmented data on SIC codes related to financial services from UK Companies House as at 16.05.23 and found some interesting insights.

Pension funds have been around the longest

Pension funds have the highest average age of 18 while banks have approximately been around for a decade. However, open-ended investment companies are relatively young at 4 years of age.

Almost half the banks are 5 years old or younger

26.6% of banks in the UK are 2 years old or less and 46.6% of banks in the UK are 5 years old or less. However, the average age still stands at 10 years old. For a sector that’s associated with being a dinosaur, it’s surprising that only 10 banks have been around for 100 years or more.

Almost half of financial services holding companies are 2 years old or younger

48.5% of financial services holding companies are 2 years old or less. This is a total of 4,476 who have been in operation for 2 years or less. This is huge compared to the 526 financial services holding companies who have been in operation for more than 20 years.

More than half of investment trusts are 2 years old or younger

60% of investment trusts are two years old or younger. The sector is so young that almost a quarter, 24.5%, have not even been in operation for a full year.

More than half the unit trusts are 5 years old or younger

57.8% of unit trusts are 5 years old or younger. There are 36 companies who have been operating for less than a year in contrast to 9 companies who have been in operation for more than 30 years.

Almost half of venture and development capital companies are 2 years old or younger

45.8% of venture and development capital companies are 2 years old or younger. There are 773 companies who have been operating for less than a year in comparison to 178 who have been around for more than 20 years. Given that venture and development capital have longer investment horizons, the fact that there are 4x more companies who have only been around for less than a year compared to those who have lasted 2 decades is a cause to do proper due diligence.

More than half of open-ended investment companies are 2 years old or younger

57.9% of open-ended investment companies, totalling 3,621, are 2 years old or younger. 1,285 of them have been in operation for less than a year.

Pension funds seem to have an even spread of age

Only 6.5% of pension funds are 2 years old or less. In general, there seems to be a more even distribution of pension funds by age.

Almost a fifth of funds are less than a year old

19.6% of funds, totalling 1,370, have been in operation for less than a year.
47.7%, totalling 3,324, have been in operation for 2 years or less.