CIMA study guide
CIMA · Work through your exam, one topic at a time.
The Certified Investment Management Analyst (CIMA) certification is a professional credential for financial advisors and investment consultants who manage investment portfolios for affluent and institutional clients. The program emphasizes applying advanced investment theory to practical portfolio construction, portfolio management, and risk management rather than product sales. The CIMA study guide has 5 sections and about 1,839 words.
01Fundamentals: Economic, Market and Analytical Foundations
Begin with the macro backdrop: the business cycle (expansion, peak, contraction, trough), GDP, employment, inflation and interest rates. Know which indicators lead (yield curve, building permits, equity prices, money supply), coincide (industrial production, personal income) and lag (unemployment, CPI, prime rate).
311 words, about 2 min02Investments: Asset Classes, Valuation and Derivative Basics
Equities: dividend discount and Gordon growth models, P/E and EV/EBITDA, growth versus value. Fixed income: the inverse price-yield relationship, Macaulay versus modified duration, convexity, credit spreads, curve strategies (bullet, barbell, ladder) and immunization.
299 words, about 1 min03Behavioral Finance, Portfolio Theory & Construction
Cognitive errors stem from faulty reasoning and are broadly correctable with education; emotional biases stem from feelings and are usually accommodated or adapted to. Belief-perseverance biases include conservatism, confirmation, representativeness, illusion of control and hindsight.
632 words, about 3 min04Performance Analysis: Measurement, Attribution and Risk Adjustment
Time-weighted return strips out the effect of external cash flows and is the correct measure of manager skill; money-weighted return (IRR) reflects the client's actual experience and is dominated by flow timing. Know holding-period returns, geometric annualization, and the difference between gross and net-of-fee results.
290 words, about 1 min05Portfolio Implementation and the Consulting Process
A disciplined loop: discover (goals, constraints, behavioural profile), design (IPS and strategic allocation), implement (manager search, due diligence, funding), monitor (performance, style drift, organisational change), then review and adapt. Document every stage; the IPS is the contract that anchors later decisions.
307 words, about 2 min