Value of CIMA Certification

Earn
More.
CIMA Certification
Gain
Higher
Satisfaction.
®
CPWA Certification
®
Possess
Institutional
Expertise.
World-class Education
Value
and Impact of
Capture
Additional
Assets.
Membership
Advise
Affluent
Clients.
Own Your
Practice.
Join an
Elite
Group.
Manage
More
Assets.
About IMCA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 3
Value of CIMA Study Methodology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 4
CAREER SATISFACTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 5
KNOWLEDGE IMPACT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 6
VALUE OF TIME AND EFFORT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 7
SHARE OF CLIENT ASSETS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 8
ADVISOR DISCRETION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 9
IMPACT ON PORTFOLIO CONSTRUCTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 10
EARN MORE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 11
GENERATE MORE REVENUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 14
ANSI ACCREDITATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 15
HOW DO I EARN THE CIMA CERTIFICATION?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 18
Confidence
Competence
compensation
CREDIBILITY
2
Confidence
Competence
compensation
CREDIBILITY
About imca
Investment Management Consultants Association® (IMCA®) is a nonprofit credentialing and membership
association for advanced investment and wealth management professionals.
CIMA® Certification
If you want to attain mastery as an investment advisor or consultant to individual or institutional
clients, the Certified Investment Management Analyst® (CIMA) certification is a must-have. It
confirms your competence as an advanced investment advisor or consultant.
CPWA® Certification
The Certified Private Wealth Advisor® (CPWA) certification benefits advisors who specialize in
providing comprehensive, advanced financial planning to address the needs of high-net-worth clients.
Education and Membership Benefits
IMCA provides world-class education and conferences to help you maintain competence and
confidence in a turbulent and challenging financial climate.
3
Value of CIMA Certification
Study Methodology
IMCA commissioned Aite Group to identify and quantify the benefits of obtaining CIMA® certification to
clients, advisors and their practices/firms.
The research findings are based on two financial advisor surveys:
• An online survey of 199 CIMA professionals fielded by the IMCA in December 2012/January 2013
• A separate January 2013 Aite Group survey of 403 financial advisors
Overall, the study compares 252 practices with at least one CIMA professional to 349 practices with no
CIMA professional
Given the number of advisors participating in this research, the data discussed in this report pertaining to
the sample of CIMA professionals has a 7-point margin of error at the 95% confidence level and the data
from the sample of other financial advisors has a margin of error of 5 points at the 95% confidence level.
Confidence
Competence
compensation
CREDIBILITY
4
Confidence
Competence
compensation
CREDIBILITY
CIMA professionals have more career satisfaction vs. other advisors
Almost half indicate being “very satisfied” with their career whereas one-quarter of other financial advisors say the same.
Q. How satisfied are you with your career?
48%
28%
13% 1% 10%
5
CIMA
professionals
Other financial
advisors
25%
Very satisfied
Satisfied
34%
Areas of satisfaction and dissatisfaction
26%
Unsatisfied
3%
Very Unsatisfied
12%
CIMA certification increases confidence and knowledge
For more than half of CIMA professionals, obtaining CIMA certification had a significant or a considerable impact on their
knowledge of investment management, their confidence with management investments and their confidence with
offering investment management services to clients.
Obtaining CIMA certification also boosted advisors’ career satisfaction.
Q. What impact
has obtaining
CIMA
certification
had on you
and your clients
in terms of the
following
factors?
(Advisors stating impact
has been significant or
considerable.)
Knowledge of investment management
69%
Confidence in managing investments
Confidence with offering investment
management services to clients
64%
Satisfaction with your career
54%
Client service practices
35%
Client trust in you
35%
Client satisfaction with your services
34%
Career advancement
Satisfaction with your employer
Confidence
71%
Competence
28%
22%
compensation
CREDIBILITY
6
Confidence
Competence
compensation
CREDIBILITY
Almost all advisors agree: Investing time and effort in CIMA certification
was worthwhile
Advisors who obtained the CFP® shared similar views about obtaining CFP® certification (both CIMA and other advisors).
Fewer advisors who obtained the CFA ® (5%) strongly agreed that obtaining the CFA ® was worth the time and effort (note that the
CFA ® is specifically oriented to advisors or portfolio managers who analyze individual companies and securities which has
become less and less the role of the advisor to individuals and families).
Q. How much do you agree with the following statement? The time and effort required to
obtain and maintain the following certification(s) has been worthwhile.
51%
34%
1%
10% 4%
CIMA
46%
38%
11%
2%
3%
CFP®
5%
47%
32%
CFA ®
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
16%
0%
7
CIMA practices have succeeded in capturing a larger share
of client investment assets
CIMA practices attract a larger share of clients’ investment assets according to members of CIMA practices:
• 70% of clients allocate 75%+ of their investments to the CIMA practice
• Other practice members estimate that 55% of their clients have allocated 75%+ of their clients’ investment assets to their practice
Q. Please estimate for what
percentage of clients
your practice has
captured investment
share of wallet.
(Share of wallet = the investments held at
your firm as a percentage of total client
investment assets)
41%
29%
19%
7%
4%
CIMA
practices
8
Other
practices
34%
23%
22%
10% 10%
100% (% of clients for whom your practice manages 100% of their investments)
75% to 99%
50% to 74%
25% to 49%
Less than 25% of total investment assets
Confidence
Competence
compensation
CREDIBILITY
Confidence
Competence
compensation
CREDIBILITY
CIMA practices manage more investments on a discretionary basis
and have greater adoption of UMAs
In team practices, only 10% of fee-based assets managed by CIMA practices is managed on a non-discretionary basis whereas
other team practices manage twice as many assets in this manner. This difference indicates that investors have confidence in
their practice’s ability to manage investments without their oversight.
The significant difference in the proportion of client assets held in UMA accounts for CIMA practice vs. other practices shows that
CIMA practices believe in holistic investment management and that they have the tools to manage investments at the household
level in a highly tax efficient manner.
Allocation of fee-based assets by investment
management approach for solo practices
CIMA
professionals
Other financial
advisors
17%
26%
31%
26%
17%
11%
21%
3%
2%
14% 24%
4%
4%
Nondiscretionary advisory accounts
Advisor-directed
Allocation of fee-based assets by investment
management approach for team practices
CIMA
professionals
Other financial
advisors
11%
21%
Separately Managed Accounts (SMAs)
Unified Managed Accounts (UMAs)
32%
33%
24%
11%
19%
5%
15% 2%
20%
3%
3%
Mutual fund advisory
ETF advisory
Other
9
CIMA practices
are more likely
to invest in
individual
securities, ETFs
and alternatives
vs. other
practices
CIMA practices are less
likely to manage client
assets in insurance or
annuity accounts
compared to other
practices indicating their
strong focus on offering
traditional investment
products.
Individual stocks
22%
23%
Mutual funds
(on brokerage platform)
Exchange-traded
funds (ETFs)
Individual bonds
(e.g., not bond funds)
Mutual funds (on fund
company's platform)
7%
8%
9%
Other
3%
2%
2%
1%
1%
1%
1%
1%
Foreign exchange
(FX or forex) 0%
Futures
Confidence
Competence
16%
13%
4%
1%
Annuities, fixed
Options
12%
4%
1%
Real estate
Variable life
insurance
12%
6%
Annuities, variable
Hedge funds/
private offerings
22%
17%
3%
2%
10
5%
Allocation of Client Assets
Across Instrument Types
Practices with at least one CIMA
professional
Practices with no CIMA
professionals
compensation
CREDIBILITY
Confidence
Competence
compensation
CREDIBILITY
CIMA professionals earn significantly more than other financial advisors
Over one-third of CIMA professionals earn $380,000 or more while 6% of other financial advisors earn the same.
Q. What is your yearly income?
13%
25%
29%
33%
CIMA
professionals
11
Other financial
advisors
62%
Less than $140,000
$140,000 to $214,999
20%
$215,000 to $379,999
$380,000 or more
12%
6%
When correcting for years of industry experience,
CIMA professionals still earn more
For advisors with at least 25 years of industry experience, more than half of CIMA professionals earn more than $380,000 while
14% of other financial advisors earn the same.
Q. What is your yearly income?
(Financial advisors with at least 25 years of industry experience)
9%
15%
19%
57%
CIMA
professionals
12
Other financial
advisors
43%
Less than $140,000
Confidence
$140,000 to $214,999
19%
24%
$215,000 to $379,999
$380,000 or more
Competence
compensation
14%
CREDIBILITY
Confidence
Competence
compensation
CREDIBILITY
When correcting for the impact of a CFP® certification,
CIMA professionals still earn more
CIMA professionals who do not have a CFP® certification are also significantly more likely to earn $380,000 or more than other
financial advisors.
Q. What is your yearly income?
(CIMA professionals without a CFP® certification vs. other financial advisors without a CFP® certification)
13%
24%
27%
13
36%
CIMA professionals
(not including CFP® professionals)
Other financial advisors
(not including CFP® professionals)
65%
Less than $140,000
$140,000 to $214,999
$215,000 to $379,999
19%
$380,000 or more
11% 6%
CIMA practices
practicesmanage
managemore
more
client
assets
generate
client
assets
andand
generate
moremore
revenue than
revenue
thanother
otherpractices
practices
Median total
1212
months
revenue
Median
totalassets
assetsand
andlast
last
months
revenue
$550,000
$550,000
CIMA
CIMA
professionals
professionals
$80M
14
$80M
$250,000
$250,000
Other financial
advisors
Other financial
advisors
$20M
$20M
Median last twelve months revenue
Median
client assets
Median
last twelve months revenue
Median client assets
(Solo practices with at least 70% of revenue from families/individuals. Advisors have at least three years of industry experience.)
(Solo practices with at least 70% of revenue from families/individuals. Advisors have at least three years of industry experience.)
Confidence
Competence
compensation
CREDIBILITY
Confidence
Competence
compensation
CREDIBILITY
What is ANSI accreditation?
Just like a reliable professional is certified against standards, a certification program should be
accredited by an independent third party to demonstrate that it meets best practices in certification. CIMA
certification earned third-party accreditation by the American National Standards Institute (ANSI), making
it the first financial services credential in the United States to meet an international standard for personnel
certification (ANSI/ISO 17024).
To prove the validity of CIMA certification, IMCA submitted to a rigorous review of its processes and
policies, and committed to a process of ongoing monitoring and improvement.
15
How does ANSI accreditation benefit my
clients and me?
There are hundreds of financial services credentials in the marketplace—with varying degrees
of credibility. Very few credentials meet standards that are accredited by a third party. CIMA
certification does. For you, this means that:
• The certification process is valid, reliable, fair, transparent, and objective
• You can be confident that CIMA certification consistently distinguishes those who meet a level of
competency and skills as an investment advisor or consultant from those who do not
• The content in the CIMA certification program is derived from an independent job analysis of the
knowledge and skills needed by today’s investment advisor professionals
• The program is supported by an organization with sound management systems
• CIMA certification has been accredited as a quality credential, which protects its value for you and
provides reassurance for regulators, compliance departments, and your clients. In short, CIMA
certification is at the top of the list of bona fide certifications
Confidence
Competence
compensation
CREDIBILITY
16
Confidence
Competence
compensation
CREDIBILITY
Registered education providers for the
CIMA certification program
17
Candidates for CIMA certification attend a week-long executive education program at a top-25 business
school registered with IMCA, currently The Carnegie Mellon Tepper School of Business, The University
of Chicago Booth School of Business and The Wharton School, University of Pennsylvania.
How do I earn the CIMA certification?
Be prepared for an intense, challenging
course of study, but be confident that
you will leave with a sharpened ability to
think through complex problems on your
clients’ behalf.
The program typically takes nine
months to one year to complete
through these steps.
Step 1
3
years
Step 2
Demonstrate at least three years
of experience in financial services
and agree to a background check.
Step 3
Step 4
150
hours
Successfully complete a week-long
executive education program at a
top-25 business school
registered with IMCA.
Study for and pass
a four-hour comprehensive
Certification Examination.
(A Level Two Exam)
Confidence
100
hours
Competence
Step 5
X ___________
compensation
1
week
As your schedule
allows, study for
and pass a
two-hour
Qualification
Examination.
(A Level One
Exam)
Sign a licensing agreement, submit
to a second background check, and
agree to adhere to the IMCA Code of
Professional Responsibility,
Standards of Practice, and Rules
and Guidelines for Use of the Marks.
CREDIBILITY
18
Confidence
Competence
compensation
CREDIBILITY
What does a CIMA professional learn?
You will take a deep dive into a process for managing large pools of money effectively and tax efficiently.
The process has four components: (1) identifying the client’s needs and objectives; (2) developing an
investment policy statement; (3) selecting and monitoring money managers; and (4) reviewing and
adjusting the portfolio on an ongoing basis.
CIMA certification includes the
following major topic areas:
I. Governance
Topics include:
IMCA Code of Professional Responsibility and Standards of Practice
Regulatory Considerations
Statistics and Methods
II. Fundamentals
Applied Finance and Economics
Global Capital Markets History and Valuation
Attributes of Risk
III. Portfolio Performance and Risk
Measurements
Risk Measurements
Performance Measurement and Attribution
19
Global Capital Markets History and Valuation
Attributes of Risk
III. Portfolio Performance and Risk
Measurements
CIMA
certification includes the
following major topic areas:
Risk Measurements
Topics include:
Performance Measurement and Attribution
Traditional Global Investments (Equity and Fixed Income)
Fixed-Income Vehicles
Foreign Exchange Market
IV. Traditional and Alternative
Investments
Alternative Investment
Options, Futures, and Other Derivatives
Tools and Strategies Based on Technical Analysis
V. Portfolio Theory and Behavioral
Finance
20
Portfolio Theories and Models
Behavioral Finance Theory
Client Discovery
Investment Policy Statement (IPS)
VI. Investment Consulting Process
Portfolio Risk Management Strategies
Manager Search, Selection, and Monitoring
Perform Portfolio Review and Revisions Process
Confidence
Competence
compensation
CREDIBILITY
Confidence
Competence
compensation
CREDIBILITY
Are there continuing requirements?
YES. Credible certification programs require ongoing education to ensure that you maintain
a high level of knowledge and competency. Every two years, you will renew CIMA certification by
completing 40 hours of continuing education, including two ethics hours. You also will reaffirm your
adherence to IMCA’s Code of Professional Responsibility, report any complaints or disciplinary
actions, and pay a certification renewal fee.
CE

$
21
How do I get started?
i
Confidence
To learn more, visit
www.IMCA.org or call 303.770.3377.
Competence
compensation
CREDIBILITY
22
IMCA® and INVESTMENT MANAGEMENT CONSULTANTS ASSOCIATION® are registered trademarks of Investment Management Consultants Association Inc. CIMA®, CERTIFIED INVESTMENT MANAGEMENT ANALYST®, CIMC®,
CPWA®, and CERTIFIED PRIVATE WEALTH ADVISOR® are registered certification marks of Investment Management Consultants Association Inc. Investment Management Consultants Association Inc. does not discriminate in
educational opportunities or practices on the basis of race, color, religion, gender, national origin, age, disability, or any other characteristic protected by law. 08-130705.01.594
CIMA
Certification
5619 DTC Parkway
®
Suite 500
Certification
CPWA
Greenwood Village, CO 80111
®
Phone: 303.770.3377
World-class
Education
Fax: 303.770.1812
www.IMCA.org
Membership