CIPM Level II case studies
CIPM Level II · Put your knowledge to work in context.
The Certificate in Investment Performance Measurement (CIPM®) is a two-level credential offered by CFA Institute for professionals who evaluate investment results, analyse risk, and select managers. 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. The curriculum develops skills in performance evaluation, attribution, appraisal, manager search and selection, and reporting based on the Global Investment Performance Standards (GIPS®). Level II builds on Level I and increases in complexity; it also contains all of the manager search and selection content, with emphasis on performance appraisal and on applying the appropriate tools and inputs in more complex investment decision-making situations. The CIPM Level II case studies are 5 cases and about 2,998 words.
1The Style Drift That Wasn't
At a mid-sized endowment, the investment committee is reviewing a small-cap value manager that has underperformed its benchmark, the Russell 2000 Value Index, by 340 basis points annualized over three years. The manager's assets grew from 400 million to 1.8 billion after two strong years.
665 words, about 3 min2Finalist Selection Under Funding Pressure
An 8 billion corporate pension plan is searching for a high-yield bond manager to run a 400 million mandate. The plan is 84% funded and the investment committee wants to reduce risk.
628 words, about 3 min3Currency Overlay: Hero or Drag?
A global equity portfolio has a local-currency return of +9.2% for the year, while its benchmark, the MSCI World Index, returned +8.6% in local currency. The plan's policy hedges 50% of developed-market currency exposure.
600 words, about 3 min4The Portable Alpha That Wasn't
A public pension plan is selecting an emerging-markets equity manager. One finalist, a boutique founded four years ago, presents a 10-year track record.
565 words, about 3 min5Smoothing in Core Real Estate
A foundation is evaluating a core real estate manager. The manager reports a 10-year annualized return of 8.4% with volatility of 6.1%, a Sharpe ratio of 1.1, and a beta to the NCREIF ODCE Index of 0.85.
540 words, about 3 min