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Chartered Asset Manager Definition
Chartered Asset Managers are professionals who are skilled in asset management. These sets of professionals are certified by an accredited institute, especially the American Academy of Financial Management (AAFM). CAM is also a professional designation awarded to financial professionals who exhibit an in-depth knowledge of asset and financial management.
A Little More on What is a Chartered Asset Manager (CAM)
A chartered asset manager Program is meant for an individual with hands-on financial experience of three years or more. The program certifies professionals through these five courses. Any Chartered Asset Manager is first groomed in financial strategy. This is an introductory aspect of being certified as a Chartered Asset Manager. This course details asset management practices such as the current economic environment, regulation, reporting, compliance and many other concepts that revolve around financial strategies.
Another is the Investment Management & Managed Funds, this is steered towards teaching professionals on risks and returns, investment strategies, modern portfolio theories, and others.
Professionals are then instructed on making vital and strategic decisions. The Key Financial Decisions module features capital budgeting, dividend policies, capital structural policies from the market and political views. Intending certified professionals are taken through understanding risks business and individuals face and how to reduce such risks. The Risk Management course entails this.
Unlike the above modules, the Asset Management Strategies and cases are more practical in that students develop their own asset management plans and present these plans.
When students complete the above courses, they are awarded the academic designation of Chartered Asset Manager (CAM). Likewise, anyone who is a registered member of the American Academy of Financial Management AAFM) is also awarded CAM and RFS (Registered Financial Specialist). They can decide to write either on their resume. This is due to the fact that legal jurisdictions disallowed some professionals to ascribe certified after their names.
Benefits of CAM designation
Whoever has the CAM designation according to AAFM should be able to: Identify and give meanings to the elements of good asset management practice, Identify functions and responsibilities of the asset, differentiate practices in reporting and monitoring, identify rhe advantages and disadvantages of managing portfolios and others. It also listed that the individual should be able to add AAFM membership on their resume and also be a certified member published on the AAFM site.
The AAFM Board of Standards was founded in 1996 as a result of a merger between the Founders Advisory Committee of the Original Tax and Estate Planning Law Review and the American Academy of Financial Management & Analysts. The AAFM is a recognized institution that certifies and trains students on financial management practices.