PSN Ranking Disclosures
PSN Enterprise is an investment manager database (“PSN Database”) and a division of Informa Investment Solutions.
The PSN Global Equity Universe ranking is provided for illustrative and general comparison purposes only and does not include all information applicable to an investment in a Chevy Chase Trust (“CCT”) account. The ranking is not representative of any client’s experience and past performance is not indicative of future results. There can be no assurance that CCT will achieve comparable results in the future.
The PSN ranking is based on information generated by CCT and provided to the PSN Database. The report ranks returns in the PSN Global Equity Universe as of March 31, 2020. There can be no assurance that any ranking data as of any date after April 22, 2020 when published, will produce similar rankings or that CCT’s ranking compared to the PSN Database will be the same in future periods.
CCT Global Thematic Equity is an equity asset class return for households being managed in CCT’s Global Thematic style, as determined in CCT’s subjective judgment. This asset class return does not include cash and excludes certain households based on factors described below. Therefore, the returns ranked do not take into account all households managed by CCT, and different methods of defining CCT’s Global Thematic style could produce different results. During periods of high relative equity returns, the inclusion of cash would have reduced returns and may have reduced the ranking in the PSN database. The Global Thematic Equity asset class return reflects about 56% of the households managed by CCT, because CCT, in its own judgement, excludes households where CCT determines that it cannot fully implement its investment strategy. For example, households with cash flows greater than 20 percent in three months, those with concentrated positions, and households with client-imposed restrictions, are excluded. This is not an exhaustive list and the full set of criteria is available upon request. CCT’s five year annualized rate of return for Global Thematic Equity, net of fees, is 9.30%. For comparison, the five year annualized rate of return, net of fees, for all equity managed solely by Chevy Chase Trust is 12.45%. CCT’s annualized return is calculated using beginning asset weighted monthly returns for the household members that are geometrically linked and then annualized. This return excludes holdings that CCT does not manage at a client’s direction or households with accounts opening or closing during a 3 month period.
The advertised ranking is based on annualized returns for the five year period net of fees and includes reinvestment of dividends. In addition to the advertised ranking for the five year period, CCT’s Global Thematic Equity net of fee returns were ranked in the 7th percentile for the one year period, 6th percentile for the two year period, 6th percentile for the three year period, and 2nd percentile for the four year period.
The PSN Global Equity Universe membership consists solely of equity products (excluding products primarily focused on REITs or commodities) that are not constrained by geographic region. Mutual fund and commingled fund products are not included in the PSN Global Equity Universe. At the time of the ranking, there were 320 firms and 644 products in the PSN Global Equity Universe. All managers included in the ranking self-report rates of return as well as investment style. PSN does not independently verify the information submitted to its database.
CCT, like all other participants in the PSN Global Equity Universe, pays a subscription fee to PSN to utilize its features, including the ability to run statistical reports. CCT does not pay a fee to submit its return data. Other firms that do not submit their return data will not be included in the PSN Database, but may have higher returns than the returns of the firms included in the ranking. If PSN were to use different methodologies, or include firms not participating in the Database, the results may be materially different. There are other statistics available by the PSN Database where CCT will rank higher or lower than described herein. The firms included in the PSN Global Equity Universe may have materially different investment strategies, terms, risk and reward profiles compared to CCT. As a result, prospective investors should not place undue reliance on the PSN ranking and the PSN ranking should not be used as a sole basis for investment decision.
Unless otherwise noted, the information contained herein has been compiled as of the date noted above and there is no obligation to update the information. The delivery of this material will under no circumstances create any obligation to update or correct the information subsequent to the date of publication or the date as of which such information is stated.
This material does not constitute or form part of an offer to issue or sell, or a solicitation of an offer to subscribe or buy, any securities or other financial instruments, nor does it constitute a financial promotion, investment advice or an inducement or incitement to participate in any product, offering or investment.
Forbes and RIA Database
According to Forbes’ website, RIA Database and its sister website, RIA Channel, compiled information from publicly available sources about each firm ranked on the list. RIA Database used quantitative, including assets under management, and qualitative factors in selecting those firms that appeared on the list. CCTC is not affiliated with and does not endorse Forbes or RIA Database/RIA Channel and makes no representations concerning the factors used in compiling the list. CCTC’s ranking on the Forbes list, and the associated Forbes article, should be considered informational and should not be considered as an offer for services or investment advice. Clients or prospective clients of CCTC should carefully review CCTC’s Form ADV Part 2 in evaluating the firm or any of its employees.
Forbes: Top Women Wealth Advisors
The Forbes ranking of America’s Top Women Wealth Advisors, developed by SHOOK Research, is based on an algorithm of: qualitative data, such as telephone and in-person interviews, a review of best practices, service and investing models, and compliance records; as well as quantitative data, like revenue trends and assets under management. All advisors have a minimum of seven years’ experience. Portfolio performance is not a criteria due to varying client objectives and lack of audited data. CCTC did not compensate or pay a fee to Forbes nor SHOOK in exchange for rankings. SHOOK Research invites advisors that meet the minimum requirements to complete an online survey. CCTC provided information to SHOOK as part of this process. The requirements at the time of nomination were as follows:
Basic Requirements For Top Women Wealth Advisors
- 7 years as an advisor
- Minimum 1 year at current firm, with exceptions (acquisitions, etc.)
- Advisor must be recommended, and nominated, by their firm
- Completion of an online survey
- Over 50% of revenue/production must be with individuals
- Acceptable compliance record
- Revenue/production; weightings assigned for each
- Assets under management—and quality of those assets—both custodied and a scrutinized look at assets held away. (Although individual numbers are used for ranking purposes, we publish the entire team’s assets)
- Client-related data, such as retention
- Portfolio performance is not a factor; audited returns among advisors are rare, and differing client objectives provide varying returns
- Telephone and in-person meetings with advisors (if an in-person meeting cannot be accomplished, exceptions are considered in which the interview will occur after a ranking has been published).
- Compliance records and U4s. Some “dings” can be overlooked (e.g., firm or product failure beyond the scope of an advisor’s due diligence; the older a ding, the less we look). Since there are many gray areas, the SHOOK team is willing to listen to a firm that is willing to stand behind the advisor with written support from leadership.
- Advisors that provide a full client experience: Service model; investing process; fee structure (higher % of fee-based assets earns more points); Breadth of services, including extensive use of firm’s platform and resources (e.g., liabilities)
- Credentials (years of service can serve as proxy)
- Use of team and team dynamics
- Community involvement
- Discussions with management, peers, competing peers
- Telephone and in-person meetings
The following conditions will be considered in order to lessen weightings infractions:
- Infractions that are denied or closed with no action
- Complaint arose from a product, service or advice initiated by a previous advisor or another member or former member of team
- Length of time since complaint
- Complaints related to product failure not related to investment advice (some limited partnerships, adjusted-rate securities, etc.)
- Complaints that have been settled (must be proven) to appease a client who remained with the advisor for at least one year following settlement date
- Complaints that are proven to be meritless
- Actions taken as a result of administrative error or failure by firm
Once an advisor’s compliance rating falls into a tenable category, the following conditions must be met:
- An advisor’s rating must be among SHOOK’s highest qualitative measures including in-person interview
- Letters of recommendation from firm
The algorithm is designed to fairly compare the business practices of a large group of advisors based on quantitative and qualitative elements. Data are weighted to ensure priorities are given to dynamics such as preferred “best practices,” business models, recent business activity, etc. Each variable is graded and represents a certain value for each measured component. These data are fed into an algorithm that measures advisors against each other.
According to Barron’s, participation in the Top 50 RIA Firm Ranking is by invitation from Barron’s only. Barron’s invites about 200 handpicked firms, who are pre-screened for assets under management and revenue levels that will render them competitive for the ranking. CCTC is not affiliated with and does not endorse Barron’s and makes no representations concerning the factors used in compiling the list.
Other firms that are not included in Barron’s Top 50 RIA Firm Ranking have different assets under management/revenue than the firms included in Barron’s Top 50 RIA Ranking. If Barron’s were to use different methodologies or include all relevant firms, the results may be materially different. There may be other rankings or statistics where CCT would rank higher or lower than as described herein. The firms included in Barron’s Top 50 RIA Firm Ranking have materially different investment strategies, terms, and risk and reward profiles as compared to CCTC. As a result, prospective investors should not place undue reliance on the Barron’s Top 50 RIA Firm Ranking and the Barron’s Top 50 RIA Firm Ranking should not be used as a basis for any investment decision. The Barron’s Top 50 RIA Firm Ranking is provided for illustrative and general comparison purposes only and does not include all information applicable to an investment in any CCTC product or account. As a result, the information contained in the Barron’s Top 50 RIA Firm Ranking is incomplete. There can be no assurance that CCT will achieve comparable ranking in the future. This material does not constitute or form part of an offer to issue or sell, or of a solicitation of an offer to subscribe or buy, any securities or other financial instruments, nor does it constitute a financial promotion, investment advice or an inducement or incitement to participate in any produce, offering or investment. Any offer to purchase or buy securities or other financial instruments will only be made pursuant to definitive offering documentation, which will be furnished to qualified investors on a confidential basis at their request for their consideration in connection with any such offering. Any investment decision should be based on the information contained in such definitive offering documentation and not based on the ranking discussed herein.
Unless otherwise noted, the information contained herein has been compiled as of the date noted above, and there is no obligation to update the information. The delivery of this material will under no circumstances create any implication that the information herein has been updated or corrected as of any time subsequent to the date of publication or, as the case may be, the date as of which such information is stated.
In 2020, CCTC paid Baron’s a fee after the publication of the rankings to be listed in the Baron’s RIA Firm Directory.
The staff of the Washingtonian surveys firms and hundreds of financial experts by asking for subjective recommendations for the top wealth managers in selected categories. CCTC responded to surveys sent by the Washingtonian in both the peer-nominated and firm-nominated categories on behalf of its employees who are named in the list. No quantitative information is used to compile this recognition. In 2015, CCTC paid Washingtonian a fee after the publication of the employee recognitions to continue to list the recognitions for its employees on Washingtonian’s website.
Washington Business Journal – Women Who Mean Business Award
Award winners are selected by a panel organized by the Washington Business Journal. The winners were selected from a group of nominees that applied for the recognition. Washington Business Journal does not disclose further information regarding its selection process. The nominees are professionals from a variety of backgrounds and are not limited to those who specialize in investments or wealth management. Expertise in these areas was not a factor considered by the panel.
Any awards or recognitions referred to by Chevy Chase Trust Company (CCTC) are provided for informational purposes only and should not be relied on as a basis for retaining CCTC’s financial planning or investment management services. Awards and recognitions by rating services, companies and/or publications are independent of and not affiliated with CCTC and should not be construed to guarantee any client experience or results from CCTC, nor do they represent a current or past endorsement of CCTC or its employees. Rankings published by magazines and others may be based solely on information prepared and/or submitted by the firm or its advisors. None of the awards or recognitions referenced by CCTC take into account client experience. Past performance does not guarantee future results.
Many CCTC employees maintain professional designations or licenses issued by third-party organizations. The general criteria for those professional designations are listed below.
Chartered Financial Analyst (CFA)®
Issuing organization: CFA Institute
Required Prerequisites/Experience: Bachelor’s degree and four years of professional experience involving investment decision-making or four years of qualified work experience (full time, but not necessarily investment related)
Educational Requirements: Self-study program (250 hours of study for each of three levels)
Examination Type: Three course exams
Required Continuing Education/Experience: None
Accredited By: None
Chartered Financial Analyst® and CFA® are registered trademarks of CFA Institute.
Certified Financial Planner (CFP)®
Issuing organization: Certified Financial Planner Board of Standards, Inc.
Required Prerequisites/Experience: A bachelor’s degree (or higher) from an accredited college or university and three years of full-time personal financial planning experience
Complete a CFP-board registered program or hold one of the following:
- CPA (Certified Public Accountant)
- ChFC (Chartered Financial Consultant)
- CLU (Chartered Life Underwriter)
- CFA (Chartered Financial Analyst)
- PhD in business or economics
- Doctor of Business Administration
- Attorney’s License
Examination Type: CFP Certification Examination
Required Continuing Education/Experience: 30 hours every two years
Accredited By: National Commission for Certifying Agencies
Certified Financial Planner® and CFP® are registered trademarks of Certified Financial Planner Board of Standards, Inc.
Chartered Alternative Investment Analyst (CAIA)®
Issuing organization: Chartered Alternative Investment Analyst Association
Required Prerequisites/Experience: Bachelor’s or equivalent degree and more than one year of business experience in the financial industry or four years of experience in the financial industry
Required Education: Self-study certification program requires the successful completion of both the Level I and Level II examinations
Examination Type: Two CAIA exams
Required Continuing Education/Experience: None
Accredited By: None
Chartered Alternative Investment Analyst® and CAIA® are registered trademarks of Chartered Alternative Investment Analyst Association.
Certificate in Investment Performance Measurement (CIPM)®
Issuing organization: CIPM Association, a body associated with the Chartered Financial Analyst Institute
Required Prerequisites/Experience: Meets one of the following requirements:
- Be a full-time employee of a degree-granting educational institution offering at least a bachelor’s or equivalent degree and teaching a minimum of 6 credit hours per quarter or semester
- Be a full-time administrative employee of a degree-granting educational institution offering at least a bachelor’s or equivalent degree and teaching a minimum of 3 credit hours per quarter or semester
- Be a full-time, qualified employee of an entity that supervises or regulates the operations, standards of practice, or business conduct of the investment management industry
- Be an eligible GIPS® (Global Investment Performance Standards) volunteer
- Be an eligible, full-time undergraduate or part-time graduate student of a CFA Program Partner or University Recognition Program participant*
Required Examinations: Self-study certification program requires the successful completion of both the Principles and Expert examinations.
Required Continuing Education/Experience: Must be a member of the CIPM Association with the following requirements:
- Two years of professional experience in one or more positions substantially entailing performance-related activities, such as calculating, analyzing, evaluating, or presenting investment results
- Providing consulting, technological, legal/regulatory, or accounting services directly in support of such activities
- Verifying compliance with the GIPS standards
- Supervising, directly or indirectly, persons who practice such activities
- Teaching such activities
- Four years of professional experience in the investment industry that consists, to a majority extent, of:
- Evaluating or applying financial, economic, and/or statistical data as part of the investment decision-making process marketing investment management services
- Monitoring an investment firm’s compliance with applicable laws, regulations, and standards
- Evaluating or recommending investment managers
- Supervising, directly or indirectly, persons who practice the activities set forth above
- Teaching such activities
Accredited By: CIPM Association
Certificate of Investment Performance Measurement® and CIPM® are registered trademarks of CIPM Association.
Chartered Market Technician (CMT)®
Issuing Organization: Chartered Market Technicians Association
Required Prerequisites/Experience: A minimum of five (5) years of approved professional work experience. This requirement is reduced to three years for those successfully completing the CMT program. Members must also be sponsored by three persons who have Member status with the CMT Association and no more than one sponsor may be affiliated with the candidate’s current firm.
Educational Requirements: Self-Study program
Examination Type: Three course exams (40-140 hours of exam preparation for each level)
Required Continuing Education/Experience: Voluntary, but members who participate are asked to satisfy a 15-credit level before the end of the calendar year
Accredited By: None
CMT ® is a registered trademark of the Chartered Market Technician Association
Certified Trust and Financial Advisor (CTFA)
Issuing Organization: ABA Institute of Certified Bankers
Required Prerequisites/Experience: Must meet one of the following requirements:
- Three years of wealth management experience plus ICB-approved training program; or
- Five years of personal trust experience and a bachelor’s degree; or
- Ten years of personal trust experience.
Examination Type: Final Certification Exam
Required Continuing Education Requirements: 45 credits every three years with a minimum of six hours in each of four knowledge areas
Accredited by: None.
Certified Anti-Money Laundering Specialist (CAMS)
Issuing Organization: Association of Certified Anti-Money Laundering Specialists (ACAMS)
Required Prerequisites/Experience: Minimum of 40 qualifying credits based on education, other professional certification and professional experience, per ACAMS Credit Award System.
Education Requirements: Passing grade on the CAMS Exam
Examination Type: Final Examination (closed book, proctored)
Required Continuing Education Requirements: 60 credits every three years
Accredited by: None
Certified Fraud Examiner (CFE)
Issuing Organization: Association of Certified Fraud Examiners (ACFE)
Required Prerequisites/Experience: Combination of two years professional experience and 50 points on proprietary scale
Education Requirements: Minimum of Bachelor’s degree or substitute years of fraud-related professional experience
Examination Type: Four separate, online, closed-book, timed examinations
Required Continuing Education Requirements: 20 hours (10 hours of ethics) of Continuing Professional Education every 12-month period
Accredited by: None
Certified IRA Professional
Issuing Organization: ASCENSUS
Required Prerequisites/Experience: Minimum of two years of IRA compliance or operations experience or have achieved CIS II certification, and Attend Ascensus’ IRA Online Institute, IRA Institute, or another approved prerequisite no more than 60 days before the examination date. Or, have at least three years of IRA compliance and operations experience.
Education Requirements: None
Examination Type: Final certification exam (closed book, proctored)
Required Continuing Education Requirements: 24 hours every 3 years
Certified Public Accountant (CPA)
Issuing Organization: State Board of Accountancy
Prerequisites: Varies by State. See https://www.accountingedu.org/become-a-cpa.html
Education Requirements: Varies by State. See https://www.accountingedu.org/become-a-cpa.html
Examination Type: Varies by State. See https://www.accountingedu.org/become-a-cpa.html
CPE Requirements: Varies by State. See https://www.accountingedu.org/become-a-cpa.html
Outside Links and Articles
From time to time, CCTC posts links and other material to its website that are published by outside sources. These articles are for informational purposes only. The opinions stated therein are those of the author and not necessarily the opinions of CCTC or any of its affiliates. These articles contain facts and statistics quoted that appear to be reliable, but they may be incomplete or condensed and we do not guarantee their accuracy. Fact and circumstances may be materially different between the time of publication and the present time. This communication is not an offer or solicitation to purchase or sell any security, and it is not a research report. Individuals should consult with a qualified financial professional before making any investment decisions.