DEFINITION of 'Chartered Wealth Manager - CWM'

Chartered Wealth Manager (CWM) refers to a professional designation issued by the Global Academy of Finance and Investment (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 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 client’s risk tolerance, personal situation 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 analyses large amounts of financial news and data, and provides his or her client 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 (NYC) 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 Portfolio Manager - CPM

    Chartered portfolio manager is a professional designation offered ...
  2. Chartered Asset Manager - CAM

    A professional designation offered by the American Academy of ...
  3. Chartered Market Analyst - CMA

    A professional designation awarded by the American Academy of ...
  4. American Academy Of Financial Management ...

    A globally-recognized academic institution that issues a variety ...
  5. Charter

    A legal document that provides for the creation of a corporate ...
  6. Chartered Bank

    A chartered bank is a financial institution, whose primary roles ...
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

    The Wealth Management Certified Professional Designation

    The recently introduced Wealth Management Certified Professional credential includes a research-based curriculum for advisors.
  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. 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.
  5. Retirement

    Certifications For Estate Planning

    These certifications can lead to a promising career, but is estate planning for you?
  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. Investing

    Charter Offers $1B In Senior Unsecured Notes

    Charter Communications said it is offering $1 billion in senior unsecured notes due in 2027.
  8. 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.
  9. Financial Advisor

    How to Construct an Annual Review for Clients

    One of the best things that advisors can provide to clients is an annual review of their financial situation. Here are some guidelines.
  10. Financial Advisor

    Financial Certifications With The Best ROI

    These certifications will land you a long, profitable career for an affordable price.
RELATED FAQS
  1. What is private wealth management?

    Understand what private wealth management is from the perspective of both the private client as well as the private wealth ... Read Answer >>
Trading Center