What Is a Certified Investment Management Analyst (CIMA)?

Managing your investments can be a more complicated and overwhelming part of building wealth. Even if you have a system, it can get complex to choose assets, stay informed, and understand how everything fits into your portfolio. Therefore, it’s helpful to have a financial advisor work alongside you. While there are several options, a well-known credential that signifies this skill set is the Certified Investment Management Analyst (CIMA) title.

In this article, we’ll highlight the CIMA certification and explain how individuals who carry it can help clients. We’ll also offer an overview of the process one must go through to earn the title, including the educational, professional, and ethical requirements. Finally, we’ll outline how to find one of these experts and whether you need one.

CIMA Definition

The Certified Investment Management Analyst (CIMA) title is a professional certification offered by the Investments & Wealth Institute (IWI). Individuals with the title have expertise in advanced topics such as investment advisory, behavioral finance, risk management, and statistics.

CIMAs may work in various roles at financial services and portfolio management firms. As financial advisors, however, the knowledge they earn in the program to attain the title allows them to help clients build and assess portfolios according to their time horizon, risk tolerance, and goals. Therefore, they can prove highly proficient in portfolio management and investment planning roles.

Like other professional credentials and designations in the financial advice industry, the CIMA title represents an expert who wields a strong level of capability in investment management topics. Beyond that, though, it’s a distinguished mark of trust because titleholders must adhere to a code of ethics set forth by IWI.

Becoming a CIMA

Holding the CIMA mark in the financial services industry is a symbol of prestige and knowledge. Behind it, though, lies an immense amount of time spent learning, working, and sharpening skills. To earn the title, one must complete an educational requirement, gather requisite professional experience, and agree to abide by an ethical code of conduct.

To enter the program and become eligible to earn the title, a candidate must meet the following prerequisites:

• Complete an application for the program, which includes a background check and fee.
• Collect and properly document three years of professional experience in the financial services industry upon completion of the program.
• Pay a $5,995 fee for the application and educational program.

Below is more information about the requirements to earn the title:

Education

Students must complete an educational course once accepted and enrolled in the CIMA program. But while IWI is the issuing organization for the designation, the coursework is available through one of two programs in the U.S. (a third is available for international Asia Pacific-region students), the Yale School of Management and the University of Chicago Booth School of Business. The two are the same in cost but differ in details such as course delivery and time frame. IWI includes a comparison table on its website that highlights the differences between providers.

During the course, students gain comprehensive exposure to various financial topics organized across five domains and sub-sections of subjects. Each covers a unique area of expertise or focus for a professional. For instance, one focuses on types of investments, while another focuses on more abstract concepts such as behavioral finance and building portfolios.

The program culminates with a 4-hour, 110-question multiple choice exam comprising content from the five domains and their sub-topics. The exam can take place either in-person or online under the watch of a proctor.

Ethical Standards

Before receiving their title, CIMA professionals must sign and agree to follow IWI’s Code of Professional Responsibility. This dictates the behavior and conduct a CIMA titleholder must uphold while maintaining their certification. While fully available for transparency on IWI’s website, the code outlines philosophies such as avoiding conflicts of interest, practicing with integrity, and upholding strong ethical principles.

Who Should Hire a CIMA?

With a detailed and in-depth education on advanced financial topics, such as portfolio construction and behavioral finance, and a sweeping knowledge of investments, CIMA professionals often work in investment advisory roles. That is, as financial advisors, they excel at working one-on-one with clients to build tailored portfolios that fit into their unique circumstances.

Consider hiring someone with the CIMA certification if you would like to build a portfolio and desire help constructing an asset allocation that works for you. They may also be an exceptional choice as a financial advisor if you already have a portfolio to manage or are a high-net-worth individual with complex needs and investments that need an expert’s touch.

Cost to Hire One

The cost of hiring a CIMA can vary depending on various factors. However, it most often hinges on their company and your advisory relationship.

For example, you’ll likely pay a percentage of your assets under management (AUM) if you’re expecting to receive a continued portfolio management service where the professional has a lot of influence over your investments—often around 1%. If it’s a one-off consultation, it’s not uncommon to see a flat fee.

While it’s difficult to pinpoint the exact number that CIMA professionals may charge clients, it’s worth noting that titleholders tend to be some of the highest earners in the industry. According to IWI, 33% of CIMA professionals working as financial advisors reported earning $380,000 per year or more.

How to Find a CIMA

CIMA titleholders may own registered investment advisor (RIA) firms where they offer portfolio management services. However, perhaps more commonly, they may work at established advisory, financial services, or family office companies offering either discretionary or non-discretionary management options.

As is true with most designations in the industry, it’s common to see individuals with the CIMA title hold other credentials, such as Chartered Financial Analyst (CFA), Certified Financial Planner (CFP), or Certified Private Wealth Advisor (CPWA).

There are several viable ways to find a CIMA expert, including:

• The National Association of Personal Financial Advisors (NAPFA) is a free resource that allows you to search for advisors and firms in your ZIP code. It will let you see who works at each firm and what credentials they hold, such as CIMA.
• A free online matching tool, such as this one, is an effective way to find an expert that fits your needs. After answering a few questions about your goals, it will connect you with a fiduciary expert near you.
• Word of mouth can be another helpful method to find a CIMA. For example, try asking friends or family who have financial advisors or those in your network if they know one.
• FINRA BrokerCheck is a reputable resource that lets you find and research experts by looking up their firm or name. Along with their credentials, you can vet them by work experience and disciplinary history.
• The Investment Adviser Public Disclosure (IAPD) is a tool offered by the SEC that lets you search for firms and professionals, like BrokerCheck. Specifically, though, it lets you research those registered as investment advisers.

Frequently Asked Questions

Is a CIMA like a CFA?

Another well-known and reputable designation, chartered financial analysts (CFAs) are professionals highly skilled in advanced financial topics and statistics and, consequently, often work in portfolio management and investment advisory roles. CIMA professionals are similar in that they receive training in intersecting areas; however, the two are not the same. The CIMA certification focuses primarily on investment management and, therefore, sets up individuals to work in those roles, whereas the CFA program is broader and more involved.

Is a CIMA professional a fiduciary?

CIMA professionals must adhere to IWI’s code of ethics, which includes many of the principles that align with the fiduciary standard of the financial advising industry. For instance, this includes avoiding and being transparent about conflicts of interest, prioritizing client needs, and maintaining integrity.

Do CIMA professionals have to receive continuing education?

Yes, IWI requires a CIMA professional to complete continuing education (CE) to renew their title. To satisfy the requirement, they must document at least 40 hours of CE every two years, including two credit hours for ethics training and one credit hour for tax and regulatory topics.

Are CIMAs always financial advisors?

While they commonly work in investment advisory and portfolio management roles, CIMAs don’t always work as financial advisors. They may also work in larger financial services firms, using their expertise to work as analysts, managers, or in statistics roles.