CAIA_brochure_05.qxd
T
H
E
C
A
I
A
P
R
O
G
R
A
M
t h e
g l o b a l
M A R K O F
DISTINCTION
i n a l t e r n a t i v e
i n v e s t m e n t s
t h e
c a i knowledge
a
a s s o c i a t i o n In 1999, under the guidance of CISDM and AIMA, committed industry leaders
undertook the task of creating a professional designation exclusively for alternative investment (AI) specialists. The result of their efforts is the Chartered Alternative
Investment AnalystSM designation, or CAIASM — the industry’s first and only specialized educational standard covering real estate, private equity, commodities, hedge
funds and managed futures. | The CAIA AssociationSM was established with the belief that a strong foundation of knowledge is essential for all professionals.
Other programs do not address all of the unique attributes associated with alternative assets, but focus primarily on traditional investments. Given the area’s
explosive inflow of investable capital, now more than ever it is imperative that AI participants set themselves apart from the broader investment industry.
Earning the CAIA designation demonstrates an individual’s commitment to the profession and comprehension of its unique fundamentals.
“I have observed on a daily basis the value that participation in the CAIA
program can bring to a firm. The program provides a common analytical
foundation for our employees, making it easier for us to more effectively
serve our institutional investors. As a result, we consider the CAIA program
required training for both investment and non-investment personnel.”
Jane Buchan, CAIA, Managing Director
Pacific Alternative Asset Management Company, LLC
Member of the CAIA Association Advisory Board
c a n d i d a t e s f o r t h e c a i a d e s i g n a t i o n
Today’s global marketplace requires investment professionals to understand the industry beyond their borders. CAIA’s international appeal draws candidates
from around the world who understand this need. Since launching in 2002, the CAIA program has attracted well over 2,000 candidates from 44 countries and 6
continents.
| The program’s diverse curriculum appeals to investment advisors, consultants and analysts, fund managers and administrators, accountants, lawyers
and academics as well as compliance and back office personnel. Candidates include seasoned professionals looking to explore new areas within the AI markets,
generalists wishing to add another asset class to their investment arsenal, and new industry participants seeking to establish a core understanding of alternative investments.
“Education is important for an
global
y successful professional. The CAIA
program offers individuals a means to educate themselves in the
rapidly evolving area of alternative investments.”
Philip Halpern,Vice President and Chief Investment Officer
The University of Chicago
Board of Directors
t h e
c a i a
a s s o c i a t i o n
Alexander Ineichen, CFA, CAIA
Global Head of Alternative Investment Strategies Research, UBS Investment Research
b o a r d s
Florence Lombard
Executive Director, Alternative Investment Management Association
Thomas Schneeweis
Director, Center for International Securities and Derivatives Markets
Advisory Board
The CAIA Association Boards are comprised of leaders from the alternative investment community as well as
Jane Buchan, CAIA
Pacific Alternative Asset Management Company, LLC
academia. These individuals work to ensure that the CAIA program remains balanced between academic insight and
Garry Crowder
Lyra Capital, LLC and Starview Capital, LLC
practitioner relevance.
Peter Douglas, CAIA
GFIA pte ltd
Alkesh Gianchandani
RiskMetrics
Bob Jaeger
Evaluation Associates Capital Markets
The Board of Directors:
The Advisory Board and Curriculum
Harry M. Kat
City University, London
The responsibility of the Board of Directors is to guide
and Examination Committee:
George Martin
Gyre Capital Management, LLC
the CAIA Association towards fulfilling its mission of:
Together, the Advisory Board and the Curriculum and
David McCarthy
Martello Investment Management
• providing members with a comprehensive
Examination Committee establish the program’s structure.
Matthew Moran
Chicago Board Options Exchange
foundation of knowledge of alternative investments
The Advisory Board is broadly responsible for deciding
Anthony Scamardella
New York Board of Trade
Jeffrey J. Scott
Union Bancaire Privée Asset Management, LLC
• advocating high standards of professional conduct
what topics are essential to the curriculum, while the
Edgar L. Sullivan
General Motors Corporation
• establishing the Chartered Alternative Investment
Curriculum and Examination Committee determines the
Kathryn Wilkens, CAIA
CAIA Association
Analyst designation as the educational standard
appropriate readings, develops the corresponding Study
Gordon Yeager
Stanfield Capital Partners
for the alternative investment industry
Guides and formulates examination questions.
Mark Yusko
Morgan Creek Capital Management, LLC
• promoting professional development through
Curriculum and Examination Committee
ongoing education
Omer Ahmed
Crescent Capital Management
• facilitating communication amongst industry
Mark Anson, CFA, CAIA
California Public Employees’ Retirement System (CalPERS)
professionals
Matthew Celebuski
Bear Stearns
Christopher C. Geczy
University of Pennsylvania
Helyette Geman
Essec/University Paris Dauphine
Thomas Henker
University of New South Wales
“The CAIA program is a well structured course that allows financial professionals with
Hossein Kazemi, CFA
University of Massachusetts Amherst
Rainer Kensy
Echlin Asset Management
a broad array of educational backgrounds to move up the learning curve quickly and
Nelson Lacey, CFA
University of Massachusetts Amherst
in a structured fashion. The program is comprehensive and well balanced between
Josh Lerner
Harvard University
Stuart McCrary
Chicago Partners
academic and practitioner research. I am delighted to be part of the program.”
Mark Rzepczynski
John W. Henry and Co.
Alexander M. Ineichen, CFA, CAIA, Global Head of Alternative Investment Strategies Research
Richard Spurgin
Clark University
Hilary Till
Premia Capital Management
UBS Investment Research; Member of the CAIA Association Board of Directors
Jot Yau
Seattle University
t h e c a i a c u r r i c u l u m
The CAIA program is divided into two distinct levels. Level I reviews the traditional tools of investment analysis and introduces candidates to the fundamentals of each
AI asset class, while Level II concentrates on advanced topics in alternatives. Both incorporate segments on ethics and professional conduct — essential components of the
CAIA program. | The curriculum is designed to provide investment professionals with a broad base of knowledge in traditional and modern alternative vehicles, including
real estate, private equity and commodities, as well as hedge funds and managed futures. | Study materials are chosen for their clarity, depth and synthesis of industry
insights. To maintain currency, the curriculum is revised annually to incorporate new developments and the latest academic research.
“There are many books and articles that I have been meaning to read
but never found the time. The CAIA program forced me to do so, and
in the process, gave me new insights into the industry. For anyone who
is serious about alternative investments, this program is a must!”
Ken Stemme, CFA, CAIA, Director of Hedge Fund Investments
Northern Trust Global Advisors, Inc.
c u r r i c u l u m t o p i c s *
Level I
Level I (cont’d)
Level II
Traditional Markets and Instruments
Hedge Funds
Professional Standards and Ethics
Quantitative Analysis
Establishing a Hedge Fund Investment Program
Relationships with and Responsibilities to Clients
and Prospects
Fixed Income Securities
Due Diligence
Relationships with and Responsibilities to the
Equity Securities
Risk Management
Investing Public
Regulation and Institutionalization of Hedge Funds
Valuation and Investment Theory
Hedge Funds and Managed Futures
Basic Risk and Return Relationships
Commodities and Managed Futures
Convertible Arbitrage Strategies
Market Efficiency
Investing in Commodity Futures
Valuation Models
Portfolio Management
Commodity Futures in a Portfolio Context
Evaluating Trading Strategy Performance
Risk Management
Managed Futures
Entries, Exits and Filters
Options and the Black-Scholes Option Pricing Model
Hedging Techniques
Derivatives and Market Strategies
Real Estate
Market Psychology, Market Inefficiency and
Valuation of Residential and Income-Producing Properties
Trend Following Strategies
Professional Standards and Ethics
The Secondary Mortgage Market
Fundamental Responsibilities
Real Estate Investment Trusts (REITs)
Venture Capital and Private Equity
Relationships with and Responsibilities to the Profession
Agency Costs and Contracting Theory
Relationships with and Responsibilities to the Employer
Private Equity
Venture Capital Fund Raising and Investing
Investment Strategies
Exiting Venture Capital Investments
Performance Measurement
Real Estate
Alternative Structures
Leverage Use and Dividend Policy
Performance Factors
Advanced Topics
Risk Management
Securitization in Alternative Assets
Regulation and Taxation
* As of July 2005; please visit www.caia.org for current curricula.
Global Aspects
t h e c a i a e x a m i n a t i o n s
The CAIA examinations are offered semi-annually,
Level I - 200 Multiple Choice Questions
Level II - 100 Multiple Choice Plus 3 Essay Questions
giving candidates the oppor tunity to complete the
The Level I exam seeks to corroborate a candidate’s
The Level II exam is a more versatile assembly of
CAIA program within a calendar year. The exams are
understanding of the tools and terms that comprise
questions and problem solving. The same risk management
administered electronically at Prometric testing centers
alternative investment markets. Candidates will be asked
and performance issues provide the basis of a more
around the world, with Level I lasting 4 hours and Level II
to distinguish among various trading strategies and
in-depth investigation.
lasting 3.5 hours. Both exams allow candidates to review
performance measurements.
their responses and offer feedback.
A specific listing of knowledge areas includes:
A specific listing of knowledge areas includes:
• asset allocation
• quantitative methods
• investment strategies
• valuation
• asset securitization
• investment theory
• indexing and benchmarking
• professional standards
• regulation and taxation
• risk management and performance measurement
• global markets
in real estate, private equity, commodities, hedge
funds and managed futures
standards
c a n d i d a c y
Registration
Study Guides
Designation Requirements
Candidates may register through our website by visiting
The CAIA Study Guides make up the foundation of the
To receive the CAIA designation, the candidate must:
http://www.caia.org/charterprogram/registration.asp.
program. They are structured to facilitate self learning for
• successfully complete the CAIA Level II exam
Discounts are available to employees of AIMA and
today’s busy professional. The Guides offer clear instructions
within three years of passing Level I
CISDM member firms. In addition, full-time academics —
for successful preparation by breaking down each reading
• hold a U.S. Bachelor’s degree (or equivalent)
faculty and graduate students — may qualify for special
into keywords, main points and learning objectives.
and possess more than one year of professional
rates. Please contact academic@caia.org for details.
financial experience, or alternatively,
Once enrolled in the CAIA program, candidates may access
possess a minimum of four years’ professional
AIMA/CISDM members
Standard
the appropriate Study Guide through the Candidate
financial experience
Level 1 Registration
$100 USD
$200 USD
Services section of our website. Candidate surveys suggest
• agree to abide by the Membership Agreement
Level 1 Exam*
$750 USD
$1000 USD
an average of 120 hours of study time per exam. Please
of the CAIA Association
Level II Registration
$100 USD
$200 USD
Level II Exam*
$750 USD
$1000 USD
note that there is significant variance around this average,
• establish and maintain membership in the
Annual membership dues
$150** USD
$250 USD
with some estimates of over 150 hours.
CAIA Association
* Candidates who register before the Early Registration deadline receive a 10%
discount off the exam fee only. Deadline dates are available at www.caia.org.
** AIMA/CISDM membership discount applies to inaugural year only.
“Education and professional conduct are the essential cornerstones for the long-term
growth of alternative investments. Hats off to the CAIA Association for establishing
the industry designation that covers both. We strongly support our firm’s
participation in the program and encourage other organizations to do the same.”
John T. Xanthoudakis, Chairman and CEO
Norshield Financial Group
m e m b e r s h i p *
International Recognition
furthering the opportunity to strengthen one’s professional
CAIA Job Board
The CAIA charter is the global mark of distinction that
contacts, enhance membership bonds and provide a
The CAIA Association facilitates job placement in the field
immediately sets our members apart. Increased scrutiny by
powerful voice in determining the future direction of
of alternative investments through its online Job Board.
both investors and regulators makes it imperative that
the Association.
As the industry continues to expand, so too does the
alternative investment specialists differentiate themselves.
need for qualified professionals. The Job Board enables
The curriculum’s focus on analysis, application and standards
Alternative Investment Research
financial institutions to alert CAIA designees to existing
of practice creates the benchmark that institutions, investors
Staying abreast of alternative investment developments
employment opportunities.
and regulators recognize and welcome internationally.
presents a challenge in this fast-changing industry.
To assist our membership, special subscriptions are
Additional Member Benefits
Industry Networking
available to a number of professional research materials,
The CAIA Association is not alone in its commitment
The strength and breadth of one’s professional network
most notably The Journal of Alternative Investments
to ongoing education. Several professional organizations
is crucial to success in this field. Organized by area of
— the CAIA Association’s official publication. In addition,
now offer continuing education credits and exam
specialization, the Member Directory enables individuals
members have access to the Association’s online
exemptions to individuals who successfully complete the
to communicate with fellow designees having expertise in
Bibliography — a compilation of alternative investment
CAIA program. Please inquire directly for a complete listing.
a range of investment disciplines. Local CAIA Chapters
research abstracts — and discounts to numerous
have begun forming in financial centers around the globe,
professional conferences.
* Chartered Alternative Investment Analyst Association®, Inc. (hereinafter
the “Association”) is a Massachusetts non-profit corporation. The term
“Member” refers only to those individuals who have met all of the
Association’s criteria for achieving the CAIASM designation. The term
“Member” is not to be construed as defined in Chapter 180 of the General
Laws of Massachusetts (governing non-profit corporations) or in any other
context. While the Association’s Members will not have statutory voting
rights in the Association, such Members will have ample opportunity, and
indeed are encouraged, to provide feedback to the Association.
This Member input will be essential in determining the future policies and
direction of the Association. The term “Prospective Member” refers only to
those individuals attempting to become Members of the Association as
herein defined.
t h e c a i a a s s o c i a t i o n
The Chartered Alternative Investment Analyst Association® is a not-for-profit, independent, professional organization
serving the global alternative investment industry and is the sponsoring body for the CAIA charter.
Address
Executive Director: E. Craig Asche
Chartered Alternative Investment Analyst Association®
Telephone: (413) 253-7373
29 South Pleasant Street
Facsimile: (413) 253-4494
Amherst, Massachusetts 01002
Visit us at: www.caia.org
Email us at: info@caia.org
SM
Chartered Alternative Investment Analyst Association®
29 South Pleasant Street
Amherst, Massachusetts 01002
