Chartered Alternative Investment Analyst
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[edit] Chartered Alternative Investment Analyst (CAIA)
Chartered Alternative Investment Analyst (CAIA) is a designation offered by the CAIA Association to investment professionals who complete two examinations in succession.
The "alternative investments" industry is characterized as dealing with asset classes and investments other than standard equity or fixed income products. Alternative investments can include hedge funds, venture capital, private equity, real estate, managed futures and other derivatives, and foreign exchange investments.
The CAIA curriculum is designed to provide finance professionals with a broad base of knowledge in traditional and modern alternative investment vehicles, including real estate, private equity and commodities, as well as hedge funds and managed futures.
The CAIA program is divided into two distinct levels. Level I focuses on the fundamentals of both the traditional and alternative investment markets, while Level II concentrates on advanced topics in alternatives. Both incorporate issues of ethics and professional conduct – essential components of the CAIA program.
The Level I curriculum is broadly divided into two sections – traditional and alternative investments. Candidates study the application of basic analytical tools as well as the fundamentals of alternative investment vehicles. In addition to reviewing essential concepts in finance, investments and statistics, candidates learn to differentiate between the various AI trading strategies and performance measurements. Candidates registered for the program are assumed to have an elementary, undergraduate understanding of the basic concepts of traditional finance.
The Level I curriculum covers such areas as:
- quantitative analysis
- traditional markets and instruments (equities, bonds)
- investment theory and valuation
- risk management and due diligence
- foundations of alternative investments
- professional standards and ethics
The Level II curriculum includes in-depth material on risk management and portfolio optimization, requiring candidates to apply the skills and knowledge from Level I to the more extensive Level II concepts.
The Level II curriculum covers such areas as:
- asset allocation
- portfolio oversight
- trading strategies
- style analysis
- advanced risk management
- regulatory issues
- alternative asset securitization
- secondary market creation
- performance and style attribution
- indexation and benchmarking
Starting with the September 2007 Level I exam curriculum, the CAIA program will remove the traditional investments material and focus exclusively on alternative investments. The Association's goal is to focus more of the curriculum across hedge funds, private equity, real estate, managed futures and commodities.
Similar to the CFA designation, the CAIA holder is required to maintain membership in the CAIA Association and adhere to professional and ethics standards. The goal of the CAIA Association is to make the CAIA designation the worldwide standard of excellence in the alternative investments field. Currently, there are over 500 CAIA members.
The Chartered Alternative Investment Analyst Association is an independent, not-for-profit global organization committed to education and professionalism in the field of alternative investments. Founded in 2002, the Association is the sponsoring body for the CAIA designation. Recognized globally, the designation certifies one’s mastery of the concepts, tools and practices essential for understanding alternative investments and promotes adherence to high standards of professional conduct.
[edit] References
Knight, Victoria, Marietta Cauchi. "Analyst Designation Attracts Students", The Wall Street Journal, May 10, 2006. Retrieved on 2006-08-23.
Cantrell, Amanda. "Hedge funds feel more heat", CNN, May 4, 2006. Retrieved on 2006-08-23.
[edit] External links
CAIA Association Official Website. Chartered Alternative Investment Analyst Association (August 2006). Retrieved on 2006-08-23.
AIMA Official Website. The Alternative Investment Management Association (August 2006). Retrieved on 2006-08-23.
CISDM Official Website. Center for International Securities and Derivatives Markets (August 2006). Retrieved on 2006-08-23.
CFA Institute Official Website. CFA Institute (August 2006). Retrieved on 2006-08-23.
