Gender Plays Surprising Role in Client-Financial Advisor Relationship, New Research Shows

• Survey of 323 male and female participants working with financial advisors at 78 major financial institutions shows that one-in-four females are inclined to work with female advisors versus one-in-every-ten men who select same.
• 34% of single females would rather work with female advisors; just 22% of married women select female advisors.
• 76% of female clients are likely to make joint decisions with their partners versus 39% of married male clients who do likewise.
• 40% of female clients working with female advisors express higher tolerance for disappointing returns versus 22% of male clients working with female advisors.

BERWYN, Pa–(BUSINESS WIRE)– A major study examining the importance of gender in financial advisor relationships reveals a great divide between the opinions of men and women working with financial advisors. According to the research report “Does Gender Really Matter?” released today and sponsored by Brinker Capital, the gender of advice-driven clients strongly influences a myriad facets of the relationship with their financial advisor, from initial selection through relationship quality to tolerance for underperforming investment decisions.

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“We knew there would be some degree of disengagement between advice-driven investors and their financial advisors, based on the gender of each, but we were surprised to see that gender is an underlying issue in the needs, attitudes and satisfaction levels of female clients versus male clients who work with financial advisors,” said Noreen Beaman, Chief Operating Officer at Brinker Capital. “Our study demonstrates that key gender issues continue to exist despite increasing parity between men and women in America. Additionally, it shows that progress still needs to be made in gender politics and the financial world.”

“Does Gender Really Matter?” offers a comprehensive look into the opinions that drive decision-making, client satisfaction and overall attitude toward financial advisors, taking both advisor and client gender into consideration.

Brinker Capital’s research was based on a national survey of 323 male and female participants working with financial advisors from 78 different financial institutions.

Does Gender Really Matter?

Examining a variety of issues, Brinker Capital’s survey highlights how gender differences play a key role in the sentiment toward financial advisors. Females appear to have a somewhat stronger propensity to work with advisors of their own gender, with 25% of women using female advisors while only 10% of men gravitate toward female advisors. Other key findings include:

• 34% of single female clients select a female advisor versus 22% of married female clients.
• 84% of female clients feel their advisor listens and understands their financial needs; 74% of male clients feel their advisor listens and understands their needs.
• Female clients (40%) working with female advisors express higher tolerance for investment decisions made by their advisor that did not meet expectations versus only about 22% of the male clients.
• 46% of females using an advisor say their advisor helps them build knowledge, while 37% of male clients feel their advisor helps them build knowledge.

Who knows, is it worth the risk?

Additionally, there are gender distinguishers when it comes to knowledge and taking risks. Female clients feel less knowledgeable than men in most key areas of finance and investing. Overall, women feel less knowledgeable than men in the areas of personal finance, investing, estate planning and understanding of financial markets. That said, female clients are far more risk averse than male clients with only 21% of female clients categorizing themselves as being “extremely/very comfortable” in taking investment risk verses 42% of the male population sampled.

Then there is the issue of age and longevity. Naturally, female clients are more concerned about outliving their money.

Decisions, decisions

The study also revealed that personal relationships also have an impact on financial decision-making and the treatment clients receive from their advisors. Married female clients (76%) are far more likely to make joint financial decisions with their spouse. Only 39% of the male population sampled makes joint financial decisions with their spouse. Interestingly, we discovered that financial advisors are also swayed by gender. Advisors working with female clients tend to direct their relationship jointly to both the female client and their spouse. Several key findings include:

• 63% of married female clients say advisors direct their relationship jointly to them and their spouse versus 41% of married male clients say the advisor directs their relationship to them and their spouse.
• Only 29% of married women say their advisor directs their relationship solely to them.
• In the event of a death or divorce, 47% of female clients are “extremely likely” to retain their advisor versus 32% of the male clients.

“This study gives us great insight into the relationship between gender and personal finance and shows that a ‘one-size-fits-all approach’ does not work for financial advisors,” said John Coyne, President at Brinker Capital. “We believe this study will serve as an effective tool for us to improve customer satisfaction and provide resources to the advisors we work with to further strengthen relationships with their clients.”

For a copy of the full report, please contact Matt Kirdahy.

About Brinker Capital

Brinker Capital, Inc. is a leading independent investment management firm which provides managed account investment programs to individual and institutional investors through financial advisors. Brinker was founded in 1987 by Charles Widger and is located in suburban Philadelphia. Visit Brinker’s website at www.brinkercapital.com.

Brinker CapitalMarilyn Shearman, 610-640-6830
or
Middleberg CommunicationsMatt Kirdahy, 212-812-5665, ext. 117

Source: Brinker Capital