Boston, April 30, 2013 – A new report from Aite Group identifies and quantifies the value of the Certified Investment Management Analyst® (CIMA) certification to financial advisors, team practices, and wealth management clients.
The analysis, commissioned by the Investment Management Consultants Association® (IMCA®), is based on a late December 2012 to January 2013 Aite Group financial advisor survey of two distinct advisor groups: one of CIMA professionals and one of financial advisors who work primarily with individuals and families and represent the general financial advisor population in the United States.
This report finds that CIMA professionals are more successful than other financial advisors. More than 80% of CIMA professionals have achieved ownership of their practices, compared to 60% for other financial advisors, and over 60% earn at least US$215,000, compared to 18% for other advisors. CIMA professionals are successful because they work for successful practices that generate stronger revenue per client than do other practices. Many CIMA practices adopt a wealth management business model, assembling advisors with different designations to create well-rounded practices composed of generalists and specialists. CIMA practice members are more likely to describe their firm as a "wealth manager" than are other financial advisors.
Aite Group finds that CIMA practices follow best practices when managing investments, including establishing an investment policy with clients and monitoring the performance of investment managers based on policy guidelines. They are also more likely to build portfolios using both low-cost instruments and instruments that have the potential for stronger returns than the traditional basket of mutual funds.
“CIMA practices are successful because they combine a holistic wealth management approach with specialized investment management expertise, which appeals to high-net-worth individuals” says Sophie Schmitt, senior analyst at Aite Group specializing in wealth management. “In addition, these practices have secured deep relationships with their clients as shown through the larger share of investment wallet captured relative to other practices.”
This 40-page Impact Report contains 35 figures. Clients of Aite Group's Wealth Management service can download the report.