Chartered Portfolio Manager – Definition

Cite this article as:"Chartered Portfolio Manager – Definition," in The Business Professor, updated February 2, 2020, last accessed August 12, 2020, https://thebusinessprofessor.com/lesson/chartered-portfolio-manager-definition/.

Back to: ECONOMICS, FINANCE, & ACCOUNTING

Chartered Portfolio Manager (CPM)

A Chartered portfolio manager is a professional designation for individuals who are specialists in portfolio management. The American Academy of Financial Management (AAFM) is the authorized institution that confers the CPM designation on qualified individuals. AAFM was later changed to the Global Academy of Finance and Management (GAFM).

To earn this designation, professionals are required to possess a degree in accounting, finance, tax or law. They must also have a minimum of three-year experience in portfolio management. Chartered portfolio managers handle investment portfolios and make decisions on behalf of their clients.

A Little More on What is a Portfolio Manager (CPM)

In investment management, portfolio managers are responsible for investments held by their clients, they also make vital investment decisions on their behalf. Being a chartered portfolio manager (CPM) is a further step taken by portfolio managers to be recognized as professionals. They are required to take a Chartered Portfolio Manager (CPM) program which covers courses like equity valuation, portfolio management, mechanisms of financial markets, and other topics.

A Chartered Portfolio Manager (CPM) accreditation is not a requirement for portfolio managers to manage a portfolio. This means whether a manager is accredited or not, he can actively or passively manage a portfolio.

Global Academy of Finance and Management

The Global Academy of Finance and Management (GAFM) was formerly the American Academy of Financial Management (AAFM). AAFM was established in 1996, it is the global institution that accredits portfolio managers and offers them the professional designation. AAFM resulted from the merger between the American Academy of Financial Management & Analysts and the Advisory Committee of the Original Tax and Estate Planning.

AAFM was changed to GAFM in 2015, this is an international institution that offers a portfolio management program for individuals who wish to become chartered portfolio managers (CPMs). GAFM also has professional membership for individuals who earn the designation. This institution offers other professional designations such as chartered portfolio manager, chartered asset manager, chartered wealth manager, chartered trust and estate planner, and others.

CPM Designation

The GAFM offers Chartered Portfolio Manager (CPM) program where participants learn active portfolio management, how to construct portfolios, drive financial markets, and other related topics.  For individuals to earn this professional designation, they must have at least three years of active portfolio management or hold a degree in accounting, tax law, finance, asset management, and other related disciplines.

After earning the CPM professional designation, chartered portfolio managers are required to take 15 hours of approved continuing education every year.

Reference for “Chartered Portfolio Manager (CPM)”

https://www.investopedia.com/terms/c/chartered-portfolio-manager-cpm.asp

https://www.gafm.com/default.aspx?page=CPM

https://www.finra.org/investors/professional-designations/cpm

https://www.academyofcpm.org/page/CPM_Program

aafminstitute.com/charteredportfoliomanager.html

Was this article helpful?