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What is the Chartered Alternative Investment Analyst (CAIA) Program?

The CAIA program is comprises of a two-tier exam process through which one may earn the CAIA Charter, the designation for alternative investment professionals offered by the CAIA Association. The CAIA Charter is the global mark of distinction in alternative investments.

What are the requirements to obtain the CAIA designation?

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:

Pass the Level II exam within three years of passing the Level I exam
Hold a U.S. bachelor's 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
Submit payment for the annual CAIA Association membership fee
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 exams are offered twice each year, once in May and once in September. The next exam date is September 10-17, 2007. The exams are administered in computerized format at proctored test centers around the world.

What is covered in the CAIA Exams?

The Level I exam is composed of three sections. Section 1 of Level I covers quantitative methods. Section 2 of Level I covers the foundations of alternative investments and includes such topics as alternative investment asset classes, trading strategies employed by alternative investment managers, sources of returns to these asset classes and strategies, and background on legal aspects of alternative investments. Section 3 of Level I covers standards for professional conduct. The format for the entire Level I exam is multiple-choice.

The Level II exam concentrates on (i) the application of portfolio theory to alternative investments, (ii) selection of assets, managers, and strategies, (iii) oversight and due diligence of investment managers, (iv) and risk management. Standards of professional conduct is included as a separate section. The format for the Level II exam is both multiple-choice and essay.

Source: Chartered Alternative Investment Analyst Association

Related Sites

Chartered Alternative Investment Analyst Association
Administers the CAIA program

CAIA Review Courses and Study Guides

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CAIA Texts

Level 1 Readings (Readings apply to September 2007 exam date only)

Level 2 Readings (Readings apply to September 2007 exam date only)