Chartered Alternative Investment Analyst
Timberland is one of the non-traditional alternative investments analysed in the CAIA curriculum. | |
Type | Professional Designation |
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Established | 2002 |
Website |
www |
Chartered Alternative Investment Analyst (CAIA) (pronounced "KAI-ah") is a professional designation offered by the CAIA Association to investment professionals who complete a course of study and pass two examinations. 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, private equity, real assets, commodities, and structured products. The CAIA curriculum is designed to provide finance professionals with a broad base of knowledge in alternative investments.
The Chartered Alternative Investment Analyst Association was founded in 2002 by the Alternative Investment Management Association (AIMA) and the Center for International Securities and Derivatives Markets (CISDM). The CAIA Association is an independent, not-for-profit, global organization committed to education and professionalism in the field of alternative investments. CAIA designees are required to maintain membership in the CAIA Association and adhere to professional and ethical standards. Currently, there are over 6,700 CAIA members.
The Journal of Alternative Investments is the official publication of the CAIA Association. Edited by Dr. Hossein Kazemi of the University of Massachusetts Amherst, the JAI is one of nine journals published by Institutional Investor Journals.
Curriculum
The CAIA program is divided into two levels. The Level I curriculum focuses on the fundamentals of alternative investment markets, while Level II concentrates on advanced topics in alternative investments. Both levels take a global perspective and incorporate issues of ethics and professional conduct. Candidates can take exams from anywhere in the World. It is gives knowledge to the candidates on Investment Banking and related Subjects.
Level I
The CAIA Level I exam consists of 200 multiple-choice questions. The Level I curriculum covers eight topics, listed below. CAIA Level I candidates are assumed to have an elementary undergraduate understanding of the basic concepts of traditional finance and quantitative analysis.
The Level I curriculum covers:
- Professional Standards and Ethics
- Introduction to Alternative Investments
- Real Assets
- Hedge Funds
- Commodities
- Private Equity
- Structured Products
- Risk Management and Portfolio Management
The CAIA Association recommends that candidates devote 200 or more hours of study to preparation for the Level I exam.
Level II
The CAIA Level II exam consists of 100 multiple-choice questions, plus three sets of constructed-response (essay) questions. The Level II curriculum is broadly divided into two sections: alternative investments and Core and Integrated Topics. Candidates must apply the skills and knowledge from Level I to gain a deeper understanding of issues involved in each of the areas of alternative investments. The Core and Integrated Topics text is updated annually to reflect the latest industry and research developments.
The Level II curriculum covers:
- Professional Standards and Ethics
- Private Equity
- Real Assets
- Commodities
- Hedge Funds and Managed Futures
- Structured Products
- Asset Allocation and Portfolio Management
- Risk and Risk Management
- Manager Selection, Due Diligence, and Regulation
The CAIA Association recommends that candidates devote 200 or more hours of study to preparation for the Level II exam.
Historical pass rates
Grading begins once the examination window is closed, and Level I results are posted within three weeks after the final examination day. Level II exam results are available within six weeks after the last exam day, due to the need to grade essay questions.
The percentage of candidates that pass the CAIA exams changes from exam to exam. More than 40% of candidates are able to pass both CAIA Level I and Level II exams on first attempts.
CAIA Exam Pass Rate | |||||||||||||||||||||
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2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||
Sept. | March | Sept. | March | Sept. | March | Sept. | March | Sept. | March | Sept. | March | Sept. | March | Sept. | March | Sept. | March | Sept. | Feb. | ||
Level I | 66% | 66% | 67% | 67% | 68% | 68% | 64% | 68% | 74% | 71% | 71% | 72% | 68% | 73% | 72% | 72% | 72% | 76% | 79% | 75% | |
Level II | 67% | 68% | 68% | 66% | 63% | 62% | 65% | 62% | 58% | 59% | 58% | 56% | 56% | 58% | 62% | 70% | 69% | 65% | 67% | 63% | 65% |
Candidates may augment their study of the CAIA curriculum materials with third-party preparation programs. Those programs are offered by: UpperMark, Kaplan Schweser, Top Finance, Kaplan Finance with Schweser—Hong Kong, Kaplan Finance, with Schweser—London, Hong Kong Securities and Investment Institute (HKSI), IEB (Instituto de Estudios Bursatiles), and NYSSA.
See also
- The Chartered Financial Analyst designation of the CFA Institute
- Certified International Investment Analyst
- The Financial Risk Manager (FRM) international professional certification offered by the Global Association of Risk Professionals
- The Professional Risk Manager (PRM) certification offered by the PRMIA
- The Certificate in Quantitative Finance (CQF)
References
- Knight, Victoria; Marietta Cauchi (May 10, 2006). "Analyst Designation Attracts Students". The Wall Street Journal. Retrieved 2006-08-23.
- Cantrell, Amanda (May 4, 2006). "Hedge funds feel more heat". CNN. Retrieved 2006-08-23.
- Schonfeld, Gordon (2009). "Privilege of Peerage: The Value of Professional Designations". NYSSA. Retrieved 2014-05-26.
External links
- "CAIA Association Official Website". Chartered Alternative Investment Analyst Association. August 2006. Retrieved 2006-08-23.
- "AIMA Official Website". The Alternative Investment Management Association. August 2006. Retrieved 2006-08-23.
- "CISDM Official Website". Center for International Securities and Derivatives Markets. August 2006. Retrieved 2006-08-23.