Choose the right money manager: Beware of Ferrari-driving bankers

Finance professors measured fund managers’ risks and returns. They were also divided into two groups: One was those who drove high-horsepower sports cars, and the other was. The result: Sports car drivers take more risks and are more likely to put their customers’ assets at risk. They also create significantly less profit for their customers.

Back and forth emptying pockets

According to the authors of the study, everyone who buys a sports car shows the intention to step on the gas more boldly and seek a little more excitement. This is also evident in the management of clients’ assets. More risks would be taken there too. The study even showed that sports car drivers are more likely to violate legal rules and deceive their customers when it comes to asset management.

Of course, this is merely an indication of increased probability and does not necessarily mean anything in the individual case. However, it is worth noting that UBS boss Sergio Ermotti is said to be driving a yellow Maserati. Also interestingly, being more present in the home office may reduce risk again. Another study showed that bankers were more honest when working from home than in the office. This is said to be because bankers are more likely to be influenced by unethical colleagues in the office.

But back to sports car drivers: One of the reasons for their poorer performance was that they traded securities much more frequently, that is, they bought and resold shares. This always costs money, and as the stock market adage goes: Going back and forth will empty your pockets.

Dacia Jogger or Citroen C3 Picasso

Overall, sports car drivers earned 2.92 percent less per year than their non-sports car counterparts. So while sports car drivers were bad for customers, minivan drivers performed best in the analysis. They earned 3.22 percent more returns than the average driver of other cars.

This means you should look for a money manager who drives, for example, a Fiat 500L, Volkswagen Touran, Renault Espace, Tesla Y, Dacia Jogger or Citroen C3 Picasso.

Finally, if you drive a sports car with a lot of horsepower, it’s wise to outsource your asset management to a minivan driver rather than taking it into your own hands, according to research.