According to a recent survey released by Fidelity Investments, older men may be the stereotypical U.S. wealth managers, but they are getting a run for the money from their younger and female counterparts. Matt Reiner, Chief Investment Strategist at CIA, said younger advisers could be succeeding because of their ability to relate to clients still shaken by the financial crisis of 2008.
Younger advisers are also comfortable with technology, making them more efficient, Reiner said. If not for him and his younger coworkers, he said, the 15-person firm, which manages $1 billion in client assets, would still be analyzing investments with pen and paper.
Reiner’s 59-year-old boss and father, Michael Reiner says there was a time when clients picked an adviser by “counting the gray hairs,” but more people have grown to appreciate younger advisers, who are often more focused on research and willing to adjust their strategies with the markets.
However, Reiner, who founded Capital Investment in 1996, is not writing himself off, saying clients still like seeing a firm headed by someone with a long tenure.
More from the Survey:
On average, advisers under age 48 manage 16 percent more in client assets than those who are older, and women manage 5 percent more than male advisers, according to the survey, which was conducted in March.
But with third-party research firms verifying that this was a representative sample, the results could be a nascent sign of change in the wealth management industry, said Fidelity, which has done this survey six times since 2005.
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