CAIA - Chartered Alternative Investment Analyst Chartered Alternative Investment Analyst (CAIA) is a professional designation given out by the

Chartered Alternative Investment Analyst Association to establish an educational standard for individuals that specializes in the area of alternative investments hedge funds, venture capital, private equity and real estate investment and commodities. This is necessary because the realm and scope of alternative investments is dramatically different from conventional investments such as stocks, bonds, mutual funds and exchange-traded funds. Therefore, a specific designation is necessary to distinguish individuals who are best qualified in dealing with this specific class of investment. The CAIA designation demonstrates mastery of alternative investment concepts, tools and practices and promotes adherence to the highest standards of professional conduct.

Area of focus: The CAIA curriculum focuses on analysis, application and standards of practice and also creates the benchmark that institutions, investors and regulators recognize worldwide. Its diverse curriculum appeals to investment advisors, consultants and analysts, fund managers and administrators, accountants, lawyers, academics and compliance and back office personnel. The candidates for the qualification typically include seasoned professionals looking to explore new areas within the alternative investments markets, generalists wishing to add more asset classes to their investment arsenal, and new industry participants seeking to establish a core understanding of alternative investment. CAIA curriculum gives importance to issues such as due diligence, portfolio management, risk management and portfolio monitoring. Ethics and professional codes of conduct are the keystone of the program. Founded by the CAIA Association in 2002, it has quickly gained momentum over the past few years. For professionals in the alternative investment field, gaining this designation will distinguish you as an expert within your industry. The designation is quickly becoming recognized by

institutions, regulators, and investors as the seal of distinction in the alternative investment industry. There are more than 5,000 CAIA designees from over 75 countries around the globe. Essentials for enrolment to the Program: The right to use the CAIA designation is earned by (1) successfully completing the CAIA program (passing both the Level I and Level II exams) and (2) becoming a member of the CAIA Association. In order to qualify for membership in the Association, you must fulfill each of the following: 1. Pass the Level II exam within three years of passing the Level I exam 2. Hold a U.S. bachelors degree or the equivalent, and have more than one year of professional financial experience, or alternatively have at least four years of professional financial experience (with no degree) 3. Submit payment for the annual CAIA Association membership fee 4. Agree on an annual basis to abide by the Member Agreement Membership is the final requirement for individuals who wish to use the CAIA designation. The Levels: There are two levels in CAIA course structure. In Level 1, candidates study the application of basic analytical tools, as well as the fundamentals of alternative investment vehicles. The Level 1 curriculum covers:

Quantitative analysis Investment theory Regulatory issues Trading strategies Performance measurement

The Level II curriculum is roughly divided into two sections alternative investments, and integrated topics. The curriculum covers such areas as:

Asset allocation Portfolio oversight Style analysis

Risk management Alternative asset securitization Secondary market creation Performance and style attribution

and the Time: The Level I and Level II exams are held twice each year, in March and September, giving candidates the opportunity to complete the CAIA program within a single year. Many candidates do so but it is not compulsory. In fact in March 2011, in response to candidate feedback, the CAIA Association eliminated the earlier policy requiring candidates to pass both CAIA exams (Level I and Level II) within three years. Study time required for each candidate is different depending on abilities, constraints and tiredness. However, it is estimated that Level I requires 150 200 hours of study, while Level II requires 200 hours or more. Finally, because the study guides number of keywords and learning objectives differ across the topics in both levels, the amount of time per topic will vary widely.

Exam Fee Detail as of March 2012:

New Level 1

New Level II

Early Program Enrollment Exam registration Total $400

Standard $400

Early $0

Standard $0

Retake $0

$1,150

$1,250

$900

$1,000

$350

$1,550

$1,650

$900

$1,000

$350

The CAIA Association offers a $ 100 percent discount on first-time exam registration fees for candidates registering before the early registration deadline.

For the study materials, CAIA candidates can take the help of the CAIA curriculum resources and CAIA study guides. These preparation materials are endorsed by the CAIA Association and are the candidates best source of information. There is also a list of companies offering preparation programs for the CAIA Level I and Level II exams. Some of them are: Uppermark, Kaplan Schweser, Beta Educational Services, Kaplan Financial Schweser-London, Hong Kong and Singapore and the like. UpperMark is dedicated solely to the CAIA exam. Priced at $1,099 for UpperMark Platinum Suite Live and $799 for UpperMark Platinum Suite Online (all services are designed for the current CIA exam, prices may vary from time-to-time), UpperMark makes studying easier while covering every aspect of the curriculum. Likewise, Kaplan Schweser study materials are easy to understand and concise. Schwesers Premium Plus study solution (Level 1and 2) is priced at $1,049.

The CAIA exams are administered by computer at test centers around the world. After registering for an exam, candidates are required to schedule an appointment with a testing center. Before registering for an exam, candidates are advised to review the current list of exam locations from the CAIA website in order to determine whether CAIA exams are offered in a specific location or not. In case your choice of location does not show up in the list that means the CAIA exams are presently not delivered in that particular place.

Career prospects after CAIA: By completing the program and becoming a member of the CAIA Association, you earn the right to use the CAIA designation The Global Mark of Distinction in Alternative Investments. The CAIA designation can help you to enhance your industry marketability. Designees can be found in a variety of positions, including working in/as: hedge funds, real estate and private equity fund

management, chief investment officers (CIO), consultants to institutions, family offices, ultra-highnet-worth individuals, investment analysts, regulators, due diligence officers, investment bankers, asset allocators, capital introduction specialists, fund administrators, lawyers, accountants and the like. Once you become a CAIA member, you will benefit from the Associations ever-expanding network of partnership with other educational and professional development organizations. The CAIA Association and its membership place high value on ongoing education. Earning the designation is the first step in a CAIA members access to a host of professional development opportunities like Certified Financial Planner Board of Standards, Inc. (CFP), and Life Office Management Association (LOMA). Also, participants in the CAIA program must submit annual membership dues of $350 in order to remain members in good standing.