FPA/OppenheimerFunds, Inc. Study Reveals: Although The Playing Field is Leveling Between Male and Female Financial Planners, Distinct Differences in Practice Management Exist

DENVER, April 6 /PRNewswire/ -- There are clear differences between how female and male financial planners approach their businesses with regard to practice management, client management and sales and marketing management. This is one of the major findings of a new study issued by the Financial Planning Association(R) (FPA(R)) and OppenheimerFunds, Inc., a leading asset manager. The study sought to uncover gender differences between the sexes when it comes to financial planners.

"Women are good at building and maintaining relationships-valuable qualities that help them excel as financial planners," said Lauren Coulston, Assistant Vice President and Manager of Advocacy Programs at OppenheimerFunds, Inc. "They are more likely than men to spend additional time on client service, which is important in building a practice and keeping clients satisfied."

"Financial planning is a great profession in which women can succeed. As the survey results suggests, there is not a glass ceiling that exists so a woman's success is based solely on her ability to provide a high level of service to her clients," said James A. Barnash, CFP(R), President of FPA.

The survey of 5,000 FPA members was conducted in August and September 2004. Respondents completed a questionnaire that was administered via the Internet. Among the members that completed the questionnaire, 140 were men and 184 were women. The margin of error was 4%.

The differences between men and women financial planners are evident in the following categories: practice management, practice size, client demographics and business development.

Practice Management

Highlights from this area include: how men and women differ with regard to referrals and how successful they feel they are at managing clients versus managing money.

Referrals from current clients and professional contacts are the most popular method of prospecting, and according to planners, the most effective.

   * Men are substantially more dependent on obtaining referrals from
     clients than women (77% vs. 66%).

   * On the other hand, women are somewhat more dependent on obtaining
     referrals from professional contacts.

   * Women are substantially more optimistic about growing their practices
     from referrals.  More than half (53%) of women planners indicate that
     their practices will grow more than 50% through referrals vs. 33% for
     men.

Interestingly, more than 8 in 10 (81%) planners believe they are more effective at managing their clients than managing money.

   * Substantially more women planners believe they are more effective at
     managing clients than men (86% vs. 75%).  In fact, women enjoy this
     aspect of the business more than men (84% vs. 72%).

   * More men believe they are most effective (25% vs. 14%) and enjoy (28%
     vs. 16%) the managing money aspect of the business.

"Female planners value the referrals they receive through professional networking," said Coulston. "They know that referrals are key to business building and take advantage of those opportunities more than men do. It would appear that they have greater success growing their practice through referrals than other methods."

Practice Size

While the majority of both men and women planners prefer not to have very large practices, 10% of women have practices with 500 or more clients vs. 7% of men.

  Client Demographics

   * Female planners have a higher percentage of high net worth clients (29%
     vs. 22% for men)

   * Female planners have a younger client base with more Generation X
     clients.  (14% vs. 12% for men)

"Attracting and keeping Gen X clients gives planners the opportunity to cultivate a long relationship with them," said Coulston. "The fact that female planners have more Gen X clients could indicate that they are more concerned with growing their businesses."

Business development

Time management is one of the greatest challenges to most planners in managing their practice. While men are more challenged by complying with regulations and managing referral relationships with allied professionals, women are substantially (41% vs. 28%) more challenged by improving profitability.

"This does not mean that women planners are less successful, especially given that they have more higher net worth clients than men," said Coulston. "But profitability is something that presents a challenge, so women spend more time focusing on it."

About OppenheimerFunds, Inc.

OppenheimerFunds, Inc. is one of the nation's largest and most respected investment management companies. As of March 31, 2005, OppenheimerFunds, Inc., including subsidiaries and controlled affiliates, managed assets of more than $170 billion, including assets in more than 60 mutual funds and more than 7 million shareholder accounts.

Before investing in any of the Oppenheimer funds, investors should carefully consider a fund's investment objectives, risks and charges and expenses. Fund prospectuses contain this and other information about the fund, and may be obtained by asking your financial advisor, calling us at 1.800. 525.7048 or visiting our website at http://www.oppenheimerfunds.com/. Read prospectuses carefully before investing.

Shares of mutual funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.

The products and services of OppenheimerFunds, Inc. and its controlled affiliates include: mutual funds, hedge funds of funds, qualified retirement plans for individuals and corporations. OppenheimerFunds is widely recognized as a leader in educating and empowering investors and for its award-winning customer service.

OppenheimerFunds, Inc., Two World Financial Center, 225 Liberty Street, 11th Floor, New York, NY 10080. OppenheimerFunds, Inc. is a member of the MassMutual Financial Group and is not affiliated with Oppenheimer & Co, Inc. or Oppenheimer Capital.

About the FPA

The Financial Planning Association(R) (FPA(R)) is the membership organization for the financial planning community. Its 28,500 members are dedicated to supporting the financial planning process in order to help people achieve their goals and dreams. FPA believes that everyone needs objective advice to make smart financial decisions and that when seeking the advice of a financial planner, the planner should be a CFP(R) professional.

CFP(R), CERTIFIED FINANCIAL PLANNER(TM) and the federally registered CFP (with flame logo) are certification marks owned by the Certified Financial Planner Board of Standards, Inc. These marks are awarded to individuals who successfully complete CFP Board's initial and ongoing certification requirements.