Chartered Portfolio Manager (CPM): Definition, Certification Process, and Pros & Cons

A chartered portfolio manager (CPM) is a professional designation provided by the Global Academy of Finance and Management (GAFM), previously known as the American Academy of Financial Management. CPMs specialize in portfolio management, where they are tasked with making investment decisions on behalf of both individual clients and institutional investors.

In the realm of finance, a portfolio manager assumes the responsibility of managing the assets of investment funds, whether mutual, exchange-traded, or closed-end funds. Their duties include implementing the investment strategy of the fund and overseeing the daily trading activities within the portfolio. Portfolio management can be categorized into active management, where managers seek to outperform the market, or passive management, where managers aim to replicate the performance of a market index.

Clients entrust their funds to portfolio managers with the aim of meeting future financial needs, such as pension fund obligations or the operational expenses of endowment funds for educational institutions. Portfolio managers collaborate with a team of analysts and researchers to establish an investment strategy, select suitable investments, and allocate assets effectively within an investment fund or asset management vehicle.

The global academy of finance and management (GAFM) is a renowned institution that offers certifications to enhance the knowledge and credentials of finance professionals. Established in 1996, GAFM emerged from the merger of the Founders Advisory Committee of the Original Tax and Estate Planning Law Review and the American Academy of Financial Management & Analysts. In 2015, the academy transitioned its intellectual property to the global academy of finance & management.

GAFM provides various professional memberships, certifications, and designations. Candidates seeking GAFM certifications must have completed a recognized university program or a government-recognized executive educational program. While GAFM does not directly offer training, it has accredited numerous educational providers.

The academy grants several designations, including chartered asset manager, chartered market analyst, chartered trust and estate planner, chartered wealth manager, and master financial professional, alongside the chartered portfolio manager (CPM) designation.

The chartered portfolio manager (CPM) program equips individuals with essential skills in equity valuation techniques, understanding market dynamics, portfolio construction, and management strategies.

To qualify for the CPM designation, candidates must possess a minimum of three years of experience actively managing investment portfolios. Additionally, they must hold a degree in finance, tax, accounting, financial services, law, or a related field from an accredited institution. Common qualifications include CPA, M.B.A., M.S., Ph.D., or J.D.

Upon completing a GAFM accreditation course, CPMs are required to engage in 15 hours of approved continuing education annually to maintain their certification.

No, certification is not mandatory to work as a portfolio manager. However, obtaining a chartered portfolio manager (CPM) designation from GAFM can enhance your credibility and career prospects in the field of portfolio management.

Achieving the CPM designation demonstrates expertise in portfolio management, which can lead to increased trust from clients and employers. Additionally, CPMs gain access to the GAFM network and resources, providing opportunities for professional growth and development.

To qualify for the CPM designation, candidates must hold a degree in finance, tax, accounting, financial services, law, or a related field from an accredited institution. Common qualifications include CPA, M.B.A., M.S., Ph.D., or J.D.

Chartered portfolio managers are required to complete 15 hours of approved continuing education annually to maintain their certification.