T H E

C A I A
P R O G R A M

setting the

S TA N D A R D
i n a lt e r n at i v e

investments
 knowledge
t h e ca i a a ss o c i at 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 “CAIA” — the industry’s first and only specialized educational standard. | 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

the alternative space, but focus primarily on the traditional asset classes. 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, Managing Director
Pacific Alternative Asset Management Company
 ca n d i dat e s f o r t h e ca i a d e s i g n at 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. In the program’s first year alone, it attracted candidates from over 25 countries and 5 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.

global
“Education is important for any 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
 t h e ca i a a ss o c i at i o n Board of Directors
Alexander Ineichen, CFA, CAIA
Global Head of Alternative Investment Strategies Research, UBS Investment Research
boards 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
academia. These individuals work to ensure that the CAIA program remains balanced between academic insight and Garry Crowder
practitioner relevance. Peter Douglas, CAIA
Alkesh Gianchandani
Bob Jaeger
The Board of Directors: The Advisory Board and Curriculum
Harry M. Kat
The responsibility of the Board of Directors is to guide and Examination Committee:
David McCarthy
the CAIA Association towards fulfilling its mission of: Together, the Advisory Board and the Curriculum and Matthew Moran
• providing members with a comprehensive Examination Committee establish the program’s structure. Anthony Scamardella
foundation of knowledge of alternative investments The Advisory Board is broadly responsible for deciding Jeffrey J. Scott
Edgar L. Sullivan
• advocating high standards of professional conduct what topics are essential to the curriculum, while the
Kathryn Wilkens
• establishing the Chartered Alternative Investment Curriculum and Examination Committee determines the
Gordon Yeager
Analyst designation as the educational standard appropriate readings, develops the corresponding Study Mark Yusko
for the alternative investment industry Guides and formulates examination questions.
Curriculum and Examination Committee
• promoting professional development through
Omer Ahmed
ongoing education
Mark Anson, CFA, CAIA
• facilitating communication amongst industry Matthew Celebuski
professionals Christopher C. Geczy
Helyette Geman
Thomas Henker
Hossein Kazemi, CFA
“The CAIA program is a well structured course that allows financial professionals with Rainer Kensy
a broad array of educational backgrounds to move up the learning curve quickly and Cedric Kohler
Nelson Lacey, CFA
in a structured fashion. The program is comprehensive and well balanced between Josh Lerner
Stuart McCrary
academic and practitioner research. I am delighted to be part of the program.”
Mark Rzepczynski
Alexander M. Ineichen, CAIA, CFA, Global Head of Alternative Investment Strategies Research Richard Spurgin
Hilary Till
UBS Investment Research; Member of the CAIA Association Board of Directors
Jot Yau
Pacific Alternative Asset Management Company, LLC
Lyra Capital, LLC and Starview Capital, LLC
GFIA pte ltd
RiskMetrics
Evaluation Associates Capital Markets
City University, London
Martello Investment Management
Chicago Board Options Exchange
New York Board of Trade
Union Bancaire Privée Asset Management, LLC
General Motors Corporation
Worcester Polytechnic Institute
Stanfield Capital Partners
Morgan Creek Capital Management, LLC
Crescent Capital Management
California Public Employees’ Retirement System (CalPERS)
JP Morgan Chase
University of Pennsylvania
Essec/University Paris Dauphine
University of New South Wales
University of Massachusetts Amherst
Echlin Asset Management
Merrill Lynch
University of Massachusetts Amherst
Harvard University
Chicago Partners
John W. Henry and Co.
Clark University
Premia Capital Management
Seattle University
the caia curriculum

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 for. 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, Director of Hedge Fund Investments
Northern Trust Global Advisors, Inc.
curriculum topics*

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
Basic Risk and Return Relationships Commodities and Managed Futures Alternative Investments in Institutional Portfolios
Market Efficiency Investing in Commodity Futures Risk and Return Opportunities in Alternative Investments
Portfolio Management Commodity Futures in a Portfolio Context Asset Classes
Risk Management Managed Futures Regulatory Issues
Options and the Black-Scholes Option Pricing Model
Derivatives and Market Strategies Real Estate Risk Management
Valuation of Residential and Income-Producing Properties Risk Management from the Perspective of Investors,
Consultants and Third Parties
Professional Standards and Ethics The Secondary Mortgage Market
Risks Inherent in Hedge Fund Strategies
Fundamental Responsibilities Real Estate Investment Trusts (REITs)
Risks Inherent in Private Equity Investments
Relationships with and Responsibilities to the Profession
Risk Management Techniques
Relationships with and Responsibilities to the Employer Private Equity
Investment Strategies
Advanced Topics
Performance Measurement
Performance and Style Analysis
Global Issues
Benchmarking and Indexing
Securitization of Alternative Assets

* as of July 2004
t h e ca i a e xa m i n at i o n s

The CAIA examinations are offered semi-annually, Level I Level II

giving candidates the opportunity to complete the CAIA
program within a single year. The exams are administered
electronically at Prometric testing centers around the
world, with Level I lasting 4 hours and Level II lasting 3.5
hours. Both exams allow candidates to review their
responses and offer feedback.
The Level I exam assesses the candidate’s ability to The Level II exam requires candidates to apply the skills and
apply basic analytical tools and their understanding of knowledge from Level I to questions of risk management
fundamental alternative investment vehicles. In addition to and portfolio optimization.
demonstrating their knowledge of essential concepts
Level II questions cover such areas as:
in finance, investments and statistics, candidates must
• asset allocation
be able to differentiate between the various AI trading
• portfolio oversight
strategies and performance measurements.
• style analysis
Level I questions cover such areas as: • risk management
• quantitative analysis • alternative asset securitization
• investment theory • secondary market creation
• regulatory issues • performance and style attribution
• trading strategies • indexation and benchmarking
• performance measurement

standards
 candidacy

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:
www.caia.org/certification/registration.asp program. They are structured to facilitate self learning for • successfully complete the CAIA Level II exam
or by contacting us to request the registration packet. today’s busy professional. The Guides offer clear instructions within three years of passing Level I
for successful preparation by breaking down each reading • hold a U.S. Bachelor’s degree (or equivalent)
Discounts are available to employees of AIMA and into keywords, main points and learning objectives. and possess more than one year of professional
CISDM member firms. In addition, graduate students financial experience, or alternatively,
may qualify for special student rates and a limited Once enrolled in the CAIA program, candidates may access possess a minimum of four years’ professional
number of scholarships. Please inquire directly for details. the appropriate Study Guide through the Candidate financial experience
Services section of our website. On average, candidates • agree to abide by the Membership Agreement
AIMA/CISDM members Standard
Level 1 Registration $100 USD $200 USD spend 100 hours of study time per level, but may vary from of the CAIA Association
Level 1 Exam* $750 USD $1000 USD as much as 150 hours to as little as 70 hours, depending • establish and maintain membership in the
Level II Registration $100 USD $200 USD
upon the individual’s background and level of experience. CAIA Association
Level II Exam* $750 USD $1000 USD
Annual membership dues $150** USD $250 USD

* Candidates who register before the Early Registration deadline receive a 10%
discount off the exam fee. Deadline dates are available at www.caia.org.
** 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
membership*

International Recognition Industry Networking Additional Benefits

The CAIA charter is the global mark of distinction that
immediately sets our members apart. Increased scrutiny
by both investors and regulators make it imperative
that alternative investment specialists have a way to
differentiate themselves. The curriculum’s focus on analysis,
application, and standards of practice create the
benchmark that institutions, investors and regulators
recognize and welcome internationally.
The strength and breadth of one’s professional network
can be crucial to success in this field. By using the
Member Directory, individuals can benefit from the
collective knowledge of the Association. This resource
enables members to communicate and share information.
Organized by area of specialization, the Directory allows
members to locate fellow charterholders with specific
areas of expertise.
Membership brings more than just recognition and
networking opportunities. The CAIA Association also
encourages charterholders to stay on top of the industry’s
latest research and developments through access to the
Association’s online bibliography, as well as discounts
to professional conferences and financial publications.
The CAIA Association is not alone in its commitment to
ongoing education. Several professional organizations now
offer continuing education credits to individuals who
successfully complete the CAIA program. Please inquire
directly for a complete listing.

* Chartered Alternative Investment Analyst Association, Inc. 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 CAIA
designation. The terms “member” or “prospective member” are not to be
construed as defined in the Massachusetts corporations’ law or in any other
context. While the Association’s “members” or “prospective 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.
t h e ca i a a ss o c i at i o n

The Chartered Alternative Investment Analyst AssociationSM 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 AssociationSM

29 South Pleasant Street
Amherst, Massachusetts 01002