What is 'Chartered Wealth Manager - CWM'

Chartered Wealth Manager (CWM) is a professional designation issued by the Global Academy of Finance and Management (GAFM), formally the American Academy of Financial Management (AAFM). The prerequisites for the CWM program are three years or more of experience in wealth management and a GAFM-approved degree or other approved program.

BREAKING DOWN 'Chartered Wealth Manager - CWM'

The Chartered Wealth Manager program focuses on topics such as relationship management, communication, sales and financial planning and requires 15 hours per year of continuing education requirements.

The GAFM is a global institution that offers candidates certification to improve their knowledge and credentials in finance, accounting and management consulting. It offers other certifications such as Accredited Financial Analyst (AFA), Accredited Management Consultant (AMC) and Master Financial Planner (MFP). The GAFM Board of Standards was launched in 1996 through a merger between Founders Advisory Committee of the Original Tax and Estate Planning Law Review and American Academy of Financial Management & Analysts.

Functions of a Chartered Wealth Manager

A CWM typically assists retail investors with the following:

  • Build Investment Strategies: Chartered Wealth Managers build strategies around their clients' risk tolerances, personal situations and long-term financial goals. For example, a CWM may build a stock portfolio of high yielding dividend stocks for an investor who seeks passive income.

  • Provide Independent Advice: A CWM analyzes large amounts of financial news and data and provides clients with an independent assessment of the information. For instance, after reading through a prospectus for an upcoming initial public offering (IPO), a CWM may advise his client to avoid investing.

  • Actively Listen: Clients’ circumstances continually change. A CWM organizes regular meetings with investors and determines if a change in their situation requires an investment strategy review. For example, after a client meeting, a CWM may decide to do a portfolio rebalance after learning about an inheritance. Actively listening helps to ensure CWMs satisfy the Know Your Client (KYC) rule.

  • Teaching: A CWM actively educates investors about the financial markets and how to build wealth. They teach their clients about fundamental principles such as diversification, asset allocation and the importance of discipline. If a CWM has active trading clients, they may explain the importance of capital preservation and risk/reward.

  • Financial Guardian: Chartered wealth managers monitor the markets for clients and alert them to new opportunities or potential risks that might impact their portfolios. For instance, a CWM may inform a client about a surprise profit warning that is likely to negatively impact a portfolio holding.

RELATED TERMS
  1. Chartered Trust And Estate Planner

    Chartered Trust And Estate Planner is a professional accreditation ...
  2. Chartered Market Analyst - CMA

    Chartered Market Analyst (CMA) is a globally recognized certificate ...
  3. Chartered Bank

    A chartered bank is a financial institution, whose primary roles ...
  4. American Academy Of Financial Management ...

    The American Academy Of Financial Management is a globally recognized ...
  5. Wealth Tax

    Wealth tax is a tax based on the market value of assets that ...
  6. The Institute Of Chartered Accountants ...

    The Institute of Chartered Accountants of Scotland is the world's ...
Related Articles
  1. Personal Finance

    Career advice: Financial planner or wealth manager

    Learn the differences between a career in financial planning and a career in wealth management to identify which is more suited to your goals and talents.
  2. Financial Advisor

    Career Advice: Investment Banking vs. Wealth Management

    Take a comparative look at two of the most popular career choices in the financial sector, wealth management and investment banking.
  3. Financial Advisor

    How Big Is the Wealth Management and Financial Advisor Industry?

    Learn about the world's $74 trillion in managed assets, and why the wealth management industry is drastically different following the financial crisis of 2007-2008.
  4. Retirement

    Certifications For Estate Planning

    Learn about considerations when choosing a career in estate planning. Find information about different types of certifications, and how to get them.
  5. Managing Wealth

    How to Find the Best Wealth Manager

    Finally there exists a small number of financial advisors who can be considered modern wealth managers. Here's how to find them.
  6. Investing

    Charter: M&A Talk Abounds Ahead of Earnings Report

    Charter is slated to report Q4 earnings, but investors will want to hear more about Verizon.
  7. Tech

    What Advisors Can Learn From Ultra-Wealthy Clients

    The demands of bellwether ultra-wealthy clients are changing; here's what to expect and how to adjust your practices.
  8. Financial Advisor

    Manage Your Clients' Expectations

    You can't control how they react to the market, but you can help them understand the reality of the situation.
  9. Financial Advisor

    How Legacy Planning Can Help Capture New Clients

    Don’t underestimate the importance of legacy planning with your clients—it could serve as method for you to create new business with any heirs.
  10. Tech

    What Wealth Managers Need to Survive the Future

    Here is some insight into why wealth managers should accelerate plans to adopt technology and be willing to partner with financial tech firms.
RELATED FAQS
  1. How do I get started with a career in asset management?

    Find out how to get started with a career in asset management whether you are still a student or wanting to making a career ... Read Answer >>
Trading Center