Recruiting and encouraging women advisers is the route to better returns for clients and a more favorable image for the advice business.
That's the message delivered by Blair duQuesnay, an adviser at New York's Ritholtz Wealth Management, in an opinion column on the website of The New York Times.
On the basis of returns alone, women advisers are better than their male counterparts, says Ms. duQuesnay, who cites a study by the Warwick Business School which concluded that women outperformed men at investing by 1.8%.
She cites other research — "Boys Will Be Boys," published in the Quarterly Journal of Economics, by Terrance Odean at U.C. Berkeley and Brad Barber at U.C. Davis — which found that accounts owned by women outperformed those of men because women traded a whopping 69% less than men and incurred less in trading costs.
"Why did the men trade more?" asks Ms. dueQuesnay. "The research indicates men regularly exhibit overconfidence in their ability."
Because most of today's advice business sprung from the commission-based brokerage world, the culture of so much of the current advice business is shaped by an "eat what you kill" mentality that turns off most women, she said, asserting that not having more women providing advice is hurting clients and the business alike.
"The future of finance should be female," she says. "It wouldn't just be more fair. If the years of data are any indication, it's a future in which all of us would make more money.