Female financial advisors are in a better position for future success than their male counterparts, according to PriceMetrix.
Women have clients with more assets, price their services more consistently and service more female investors than men advisors, according to a new study from PriceMetrix, a practice management software and data services company.
“Bigger clients and more consistent pricing, not to mention a higher proportion of female clients, are significant advantages,” says Doug Trott, president and CEO of PriceMetrix.
In previous research, PriceMetrix found that advisors with a higher percentage of households with higher net assets in their books do better over the long run than advisors with a lower percentage.
In the new study, PriceMetrix found that the typical female advisor has 56 households with $250,000 or more in assets, and 72 smaller households. The median male advisor, on the other hand, has 51 higher net worth households and 78 smaller ones. The average household for women has $178,000 in investment assets compared to $152,000 for men.
To compile the study PriceMetrix used its database of 40,000 advisors, including RIAs, wirehouse advisors, regional dealers and bank-owned dealers. PriceMetrix estimates 12 percent of the advisors are female.
Men and women advisors have some similarities, PriceMetrix says. They have almost the same percentage of managed and fee based business, with 22 percent for men and 21 percent for women. Men charge slightly more than women, with a 0.77 percent return on assets compared to 0.73 return for women.
Female advisors' clients are 51 percent women. By contrast, the typical male advisor has a client base that is 44-percent female.