CIPM Level I case studies
CIPM Level I · Put your knowledge to work in context.
The Certificate in Investment Performance Measurement (CIPM®) is a two-level, self-study credential offered by CFA Institute that builds advanced skills in performance evaluation, risk analysis, and manager selection. It is aimed at investment performance analysts, investment consultants, portfolio managers, risk analysts and managers, compliance officers, financial advisers and planners, and managers of managers - people who must understand, explain, and report investment results credibly to clients and colleagues. The CIPM Level I case studies are 5 cases and about 4,507 words.
1June Return for a Daily-Valued Portfolio: Modified Dietz, Time Weighting and the Large-Flow Policy
A €1.2 billion balanced mandate is reported monthly. The custodian values the portfolio daily, but the firm's performance system still runs monthly Modified Dietz because the composite's other portfolios are valued only at month-end.
868 words, about 4 min2Energy Underweight in a Global Equity Portfolio: Allocation Sign, Interaction and Arithmetic versus Geometric Excess
An active global equity manager runs a $700 million portfolio against the MSCI World index. In the first quarter the portfolio returned 6.80% and the benchmark 6.00%.
903 words, about 5 min3Three-Year Small-Cap Record: Sharpe Comparison, Information Ratio and Statistical Significance
A small-cap manager has exactly 36 months of live history. Annualized return is 11.2%, the Russell 2000 returned 9.0%, and the risk-free rate averaged 3.0%.
872 words, about 4 min4Composite Construction: A Restricted Portfolio, a Minimum Asset Level and a Mid-Quarter Removal
A firm runs a 'Core Balanced' composite with a 10 million minimum asset level. One 25 million portfolio carries a client-imposed prohibition on tobacco and gambling securities and must hold at least 5% cash; the firm has excluded that portfolio from the composite since 2022, mentioning the exclusion only in a footnote to the fee schedule.
944 words, about 5 min5Marketing a New Composite: Linked Model Performance, a Representative Portfolio and an Error in 2022
A boutique wants to market a 'Global Opportunities' strategy to a pension consultant. The composite was formally created in January 2020.
920 words, about 5 min