Asset managers' clientele showing signs of aging?

The Institute for Asset Management (InVV) at the Technical University of Aschaffenburg has raised concerns about the potential aging of asset management clients in a recent long-term study. The study, based on data from asset managers who participated in at least seven of the now eight surveys, revealed a significant shift in the demographic profile of clients.

On average, 43 companies participated each year in the surveys. The study found that the CEOs of these asset management companies are, on average, just under 60 years old or have surpassed the age of 55. This is a concerning trend, as one in five clients is over 70 years old, and this proportion has seen a significant increase, rising by five percentage points. By 2021, the proportion of investors over 60 years old in the client base had increased to 42 percent.

In contrast, the proportion of 30 to 50-year-olds has been stagnant at around 27 percent for several years. This stagnation of younger investors is causing concern about the future of the asset management industry. The demographic clock is ticking, as the average age of CEOs in the sector is close to or over 60 years old.

The question of attracting young generations to asset management is becoming increasingly urgent, according to Hartwig Webersinke. The asset management industry is struggling to gain young investors under 50 years old. Three companies did not provide any information, and six of the remaining companies managed over 500 million euros, while twelve managed an asset between 50 and 150 million euros, and seventeen managed an asset between 150 and 500 million euros.

The stagnation of younger investors is not only a problem for the future of the industry but also for the current state. No relief has been seen from younger investors (under 50 years old) in the current state. The study also revealed that in the first survey in 2014, investors over 60 years old accounted for 39 percent of the client base, which has since increased to 42 percent by 2021.

The search results do not contain specific names of independent asset managers involved in the InVV report who have participated in at least seven of the eight recent surveys. However, the findings of the study serve as a wake-up call for the asset management industry to address the issue of attracting younger investors and diversifying their client base.