Chartered Alternative Investment Analyst (CAIA) (pronounced "KAI-ah") is a professional designation offered by the CAIA Association to investment professionals who complete a course of study and pass two examinations. The "alternative investments" industry is characterized as dealing with asset classes and investments other than standard equity or fixed income products. Alternative investments can include hedge funds, private equity, real assets, commodities, and structured products. The CAIA curriculum is designed to provide finance professionals with a broad base of knowledge in alternative investments.
The Chartered Alternative Investment Analyst Association was founded in 2002 by the Alternative Investment Management Association (AIMA) and the Center for International Securities and Derivatives Markets (CISDM). The CAIA Association is an independent, not-for-profit, global organization committed to education and professionalism in the field of alternative investments. CAIA designees are required to maintain membership in the CAIA Association and adhere to professional and ethical standards. As of 2021, there are over 12,000 CAIA members.
The Journal of Alternative Investments is the official publication of the CAIA Association. The JAI is one of nine journals published by Institutional Investor Journals.
Curriculum
The CAIA program is divided into two levels. The Level I curriculum focuses on the fundamentals of alternative investment markets, while Level II concentrates on advanced topics in alternative investments. Both levels take a global perspective and incorporate issues of ethics and professional conduct. Candidates can take exams from anywhere in the World.
Level I
The CAIA Level I exam consists of 200 multiple-choice questions. The Level I curriculum covers six topics, listed below. CAIA Level I candidates are assumed to have an elementary undergraduate understanding of the basic concepts of traditional finance and quantitative analysis.
The Level I curriculum covers: Professional Standards and Ethics Standard 1: Professionalism Standard 2: Integrity of Capital Markets Standard 3: Duties to Clients Standard 4: Duties to Employers Standard 5: Investment Analysis, Recommendations, and Actions Standard 6: Conflicts of Interest Standard 7: Responsibilities as a CFA (CAIA) Institute Member or CFA (CAIA) Candidate Introduction to Alternative Investments What is an Alternative Investment? The Environment of Alternative Investments Quantitative Foundations Statistical Foundations Measures of Risk and Performance Foundations of Financial Economics Benchmarking and Performance Attribution Alpha, Beta, and Hypothesis Testing Regression, Multivariate, and Nonlinear Methods Real Assets Natural Resources and Land Commodity Forward Pricing Commodities: Application and Evidence Operationally Intensive Real Assets Liquid and Fixed-Income Real Estate Real Estate Equity investments Hedge Funds Structure of the Hedge Fund Industry Macro and Managed Futures Funds Event-Driven Hedge Funds Relative Value Hedge Funds Equity Hedge Funds Funds of Hedge Funds Private Equity Introduction to Private Equity Equity Types of Private Equity Debt Types of Private Equity Structured Products Introduction to Structuring Credit Risk and Credit Derivatives CDO Structuring of Credit Risk Equity-Linked Structured Products
The CAIA Association recommends that candidates devote 200 or more hours of study to prepare for the Level I exam.
Level II
The CAIA Level II exam consists of 100 multiple-choice questions, plus three sets of constructed-response (essay) questions. The Level II curriculum is broadly divided into two sections: alternative investments and Core and Integrated Topics. Candidates must apply the skills and knowledge from Level I to gain a deeper understanding of issues involved in each of the areas of alternative investments. The Core and Integrated Topics text is updated annually to reflect the latest industry and research developments.
The Level II curriculum covers:
Topic 1 - Emerging Topics
Topic 2 - Ethics, Regulation and ESG
Topic 3 - Models
Topic 4 - Institutional Asset Owners and Investment Policies
Topic 5 - Risk and Risk Management
Topic 6 - Methods for Alternative Investing
Topic 7 - Accessing Alternative Investments
Topic 8 - Due Diligence and Selecting Strategies
Topic 9 - Volatility and Complex Strategies
The CAIA Association recommends that candidates devote 200 or more hours of study to prepare for the Level II exam.