Cipm Storybook

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Transcript of Cipm Storybook

What is your measure of value?What is your measure of value? Jed Schneider, CIPM Mnica Gordillo, CFA, CIPM Course of Study Enrollment Justin Taheri, CFA, CIPM Tom Scholz, CFA, CIPM Body of Knowledge Susan Koo, CIPM Ralf Hudert, CIPM Practice Analysis Standard Setting Debi Rossi, CIPM Annie Lo, CFA, CIPM Requirements Take your own measure 3 4 8 10 11 12 16 18 20 24 26 27 30 32 36 37

Now that investment performance measurement has its own professional designation, the answer is simple: the Certificate in Investment Performance Measurement (CIPM). Investment performance professionals around the world are demonstrating their mastery of this specialized field by earning the right to use the CIPM designation. Although the CIPM program is designed with performance analysts in mind, many successful candidates have other responsibilities. They include institutional investors, consultants, portfolio managers, marketing professionals, client and consultant relationship managers, compliance officers, portfolio accountants, and information technology professionals, among otherspeople whose work in the investment industry calls for a solid understanding of performance concepts, analytical techniques, and presentation standards. Established by CFA Institute, the CIPM program is a specialty credentialing program that develops the performance evaluation and presentation expertise of investment professionals who pursue excellence

with a passion. With a razor-sharp focus on this distinct field, the CIPM program makes full use of the organizations four decades of experience in the education and testing of investment professionals at the highest levels of ethics and technical expertise. The CIPM programs online, interactive curriculum is based on a body of knowledge defined by the global practice of the investment performance profession. The curriculum emphasizes investment tools and inputs necessary for performance measurement, attribution and appraisal, and the application of the Global Investment Performance Standards (GIPS). Two levels of examinations establish a candidates competence in performance-related activities and mastery of the skills needed for consistent and precise execution.

As the industry demands a global standard, the CIPM program is the gauge that clients and firms will use to measure investment performance specialists around the world.

www.cfainstitute.org/cipm

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Theres something about the numbers that is always intriguing.JED SCHNEIDER, CIPM With the conviction of a sports fan discussing his favorite team, Jed Schneiders passion for unveiling the hidden patterns in numbers is palpable. I really, really enjoy spending time helping people understand performance, Schneider admits. I actually can talk about it a little bit too much sometimes. Evidence of this passion surrounds him: One entire wall of his office is a well-used whiteboard covered in scrawled formulas and remnants from end-of-quarter discussions and calculations. Theres something about the numbers that is always intriguing. This natural curiosity for finding patterns and order using statistics goes a long way in explaining his position as the executive director of performance reporting for Morgan Stanley. Schneider is a natural fit for the challenge of applying his training to solve the range of complex and potentially problematic performance issues. With performance, not only do you have to handle the day-to-day processing, you need to be very educated in the calculation methodologies and have the ability to communicate to your clients some of the higher-end type of analytics, he says. Having this expertise is critical for someone like Schneider, whose responsibilities include overseeing a staff of 25 analysts tasked with monitoring the performance of over 2 million constantly evolving portfolios managed by over 8,000 individual financial advisers. www.cfainstitute.org/cipm 5 And even though he had nearly a decade of experience in the performance field and a masters degree in statistics, Schneider believes that it wasnt until he earned the CIPM designation that he finally achieved real recognition in the eyes of his colleagues. Before the CIPM program came out, performance analysts and people in the performance industry did not really get any type of recognitionit was just another job, he explains with a look of clear frustration. You are held in very high regard [by] your colleagues, your managers, and the organization itself when they see that you have gone through the training and the studying to actually pass this test, he says. When someone walks in and looks for somebody who is a resident expert in performance, theyll go, Wow, this person has a CIPM.

Jed Schneider, CIPM Executive Director, Performance Reporting New York, NY, United States

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Certificate in Investment Performance Measurement

Even the most difficult situations can have solutions.MNICA GORDILLO, CFA, CIPM Amid the frenetic pace of the downtown financial district in Madrid, Mnica Gordillo is the picture of calm. As head of performance for Banco Bilbao Vizcaya Argentaria (BBVA), she likes to solve complex problems and seek answers to client questions. And sometimes, those same problem-solving skills apply to her personal life as she endeavors to strike a balance between work and family: She and husband Manuel have a two-year-old daughter and a newborn son. Analyzing, extracting, and summarizing the relevant information that can help to improve decisions is where I am most helpful to my company and is where I thrive, Gordillo adds. Aside from daily performance analyses and weekly attribution studies, her team also oversees compliance with the GIPS standards. In fact, the performance measurement team interacts with almost everyone in the organization, from marketing and communications through accounting and portfolio management, so interpersonal skills are paramount. Building good relationships while you build your knowledge is key in performance measurement, she says. You can create credibility and trust around figures, returns, analyses, and policies if you can be confident in the numbers that are in the reports. And if the calculations are done in a standard, homogenous way, everybody that gets to have a look at the numbers will be able to understand and compare them with confidence, Gordillo says. 8 Certificate in Investment Performance Measurement The concepts of performance are very simple, but the production of the figures is not simple at all, and thats where the CIPM program can really make a difference, Gordillo adds. The same philosophical elements that fuel her professional life also guide her personal life: trust, teamwork, and compromise. The CIPM program requires a significant amount of study time in order to pass the two exams, and that was a huge challenge for Gordillo with a full-time work load and family. Her strategy involved careful planning to schedule time during lunch and in the evenings after the family was in bed. It requires focused, dedicated time apart from your day that you must schedule to accomplish, and it was quite tough for me, but the study helped me to obtain a quicker solution to some of the problems that I was tackling daily in my job, she says. My greatest strength is the ability to always provide a reasonable answer to a question or problem because even the most difficult situations can have solutions.Mnica Gordillo, CFA, CIPM Head of Performance Madrid, Spain

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Course of StudyThe CIPM program is based on a self-study curriculum. The convenient online courseware allows you to customize your study around busy work schedules and various learning styles. Each level of the program includes learning objectives that give an overview of the material, learning outcome statements that indicate the level of knowledge that should be gained from each lesson, and reading assignments for in-depth study of all topic areas.

EnrollmentEnrolling in the CIPM ProgramThere are no prerequisites to enroll in the CIPM program. And although the CIPM program is developed and managed by CFA Institute, you do not need to be a CFA charterholder to enroll. Candidates enroll several months before the examination windows to gain access to the curriculum and eligibility to sit for an exam. The exams are administered by Pearson VUE at test center locations around the world. Each exam is three hours in length. The Principles exam consists of 100 multiple choice questions, and the Expert exam contains 20 item sets (scenarios followed by four multiple choice questions). Visit www.cfainstitute.org/cipm for information and schedules for upcoming exams.

CIPM Exam Guideline Topic Area WeightsMAJOR TOPIC AREA Ethical and Professional Standards Performance Measurement, Attribution, and Appraisal The Global Investment Performance Standards Total PRINCIPLES EXPERT LEVEL LEVEL 15% 45% 40% 100% 15% 50% 35% 100%

Scheduling an Exam

CIPM Program ScheduleENROLLMENT PERIOD MayJuly NovJan EXAM WINDOW Oct Apr RESULTS Dec June

Each level of the CIPM program has a different learning focus, while maintaining a constant emphasis on professional ethics. The Principles level emphasizes the conceptual foundations of performance measurement, attribution, and appraisal as well as the provisions of the GIPS standards. The Expert level emphasizes performance evaluation and presentation, including application of the appropriate tools and inputs in more complex situations and the GIPS Guidance Statements.

The computer-based CIPM examinations are offered during two exam windows each year, in April and October. Thus, it is possible to finish the exam sequence in a years time. Once the enrollment process is complete, candidates are responsible for scheduling an examination at a time that suits their individual needs.

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