CIPM Level I study guide
CIPM Level I · Work through your exam, one topic at a time.
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. Level I is a three-hour, 100-question multiple-choice exam that emphasizes the conceptual foundations of performance measurement, attribution, appraisal, and presentation, together with the GIPS® standards; the source states this level is weighted more heavily on performance measurement and attribution. Level II adds complexity and carries all of the manager search and selection content. The CIPM Level I study guide has 3 sections and about 1,548 words.
01Performance Measurement and Attribution
This domain carries the heaviest weight on CIPM Level I. The exam tests whether you can compute a return correctly, pick the method that matches the decision being made, and then decompose an active return into the decisions that produced it.
523 words, about 3 min02Performance Appraisal
Performance appraisal asks a different question from attribution: not where the excess return came from, but whether the manager demonstrated skill once the risk taken to earn it is accounted for. Level I tests the formulas, when each measure is appropriate, and the diagnostics that tell you when a ratio is meaningless.
517 words, about 3 min03Performance Presentation, Including the GIPS Standards
Performance presentation tests whether you can put a track record in front of a prospective client without misleading them. The GIPS standards are the core of this domain: they are a voluntary, firm-wide ethical framework for presenting investment results - not a law, not a guarantee of future performance, and not a certification of any individual.
508 words, about 3 min