What is a ‘Certificate in Investment Performance Measurement (CIPM)’
The Certificate in Investment Performance Measurement (CIPM) signifies competency in the evaluation of the investment performance of investment firms. Moreover, the CIPM designation develops an individual’s skills in risk evaluation, manager selection, and investment reports based on accountability. It is issued by the CFA Institute and has two levels: Level I and Level II.
Breaking Down ‘Certificate in Investment Performance Measurement (CIPM)’
The reasoning behind the Certificate in Investment Performance Measurement designation is that there are many ways performance results may be measured and disclosed, and give the complexity of such a task, evaluating investment managers and products requires a broad range of skills. A CIPM holder will be certified in discerning different investment reporting methods, and measuring and evaluating risk. The ultimate goal of the CIPM designation is to make better investment decisions and maximizing investors’ value.
There are several jobs that may be available to CIPM holders. They include, but are not limited to, the following: performance analyst, client and investment manager relationship manager, compliance officer, sales and marketing professional, financial adviser and more.
Certificate in Investment Performance Measurement Requirements
There are no entrance requirements to enter the CIPM Level I program, but during the registration process candidates must agree to the CIPM Code of Ethics and Standard of Professional Conduct. CIPM candidates must have two years of professional experience in a position that involves performance-related activities including:
- Calculating, analyzing, evaluating, or presenting investment results
- Providing consulting, technological, legal/regulatory or accounting services directly in support of such activities
- Verifying compliance with the GIPS standards
- Supervising, directly or indirectly, persons who practice such activities
- Teaching such activities
Alternatively, candidates may have at least four years of professional experience in the investment industry that involves the following:
- Evaluating or applying financial, economic, and/or statistical data as part of the investment decision-making process
- Marketing investment management services
- Monitoring an investment firm’s compliance with applicable laws, regulations, and standards
- Evaluating or recommending investment managers
- Supervising, directly or indirectly, persons who practice the activities set forth above
- Teaching such activities
Chartered Financial Analyst (CFA) charterholders and candidates who have completed the Level III CFA exam can skip the CIPM level I exam and register for the CIPM Level II. Continuing education requirements are 45 hours every three years. For more, see FINRA’s CIPM professional designation informational page.
Certificate in Investment Performance Measurement Test
The CIPM exam is given twice a year, in March and September. For the March exam, registration generally opens Oct. 1 and runs until Jan. 31, and the testing window runs for two weeks beginning in the middle of March. For the September exam, registration generally opens April 1 and runs until July 31, and the testing window runs for two weeks beginning in the middle of September. For more on scheduling, windows and scholarship periods see the CIPM Exam Calendar page. Fees for the program are $475 for early registration (May 31 deadline) and $675 for standard registration (July 31 deadline). The CIPM Program also offers scholarships to students and faculty participating in its University Affiliation Program. The test itself involves two 180 minutes examinations that are both proctored and closed-book. For more, see the CIPM Program on the CFA Institute’s website.