CIPM Level II study plan

Define each core performance-appraisal concept in your own words: benchmark, universe, composite, and the main return and risk measures used in manager evaluation.

Distinguish time-weighted from money-weighted returns, and compute both from a short set of cash-flow examples.

Explain how a benchmark's construction (constituents, weighting, rebalancing) affects attribution and appraisal conclusions.

Set up a personal formula sheet and error log that you will maintain through the whole plan.

Compute risk-adjusted performance measures (Sharpe, information ratio, Treynor, Sortino) from sample data and interpret each result.

Decompose excess return into allocation and selection effects using a simple two-sector attribution example.

Identify the limitations of each measure when returns are non-normal or the sample period is short.

Practice explaining a performance result to a non-technical client in three sentences.

Evaluate how benchmark selection and benchmark error influence the fairness of a manager's reported record.

Analyze the effect of survivorship, backfill, and selection bias on a composite's reported performance.

Apply the standards for presenting a composite: inclusion rules, disclosures, and treatment of non-fee-paying accounts.

Draft the disclosure section of a hypothetical composite presentation.

Review weeks 1-3 material and close every gap in your error log.

Take a timed 40-question mixed set on performance appraisal and record your accuracy by subtopic.

List the criteria a plan sponsor should use when defining a manager search: mandate, risk budget, and constraints.

Compare the main manager research databases and screening approaches in terms of coverage and bias.

Write a manager search mandate that specifies objectives, constraints, universe, and screening criteria.

Build a quantitative screen on a sample manager universe and justify each filter you apply.

Explain how qualitative factors (team stability, ownership, process discipline) enter the selection decision.

Distinguish the due-diligence questions that matter for different strategy types.

Design a structured interview and scoring rubric for manager due diligence.

Evaluate fee structures and their effect on net-of-fee performance comparisons across candidates.

Analyze operational and business risks in a manager's organization and how to document them.

Prepare the questions you would ask to test the consistency of a manager's stated process with actual holdings.

Draft a manager recommendation memo that connects search findings to the client's objectives and constraints.

Describe the monitoring and termination criteria that should accompany a hiring decision.

Integrate performance-appraisal evidence into the selection and monitoring narrative.

Practice defending a recommendation against three plausible objections.

Take two full timed mock exams and record accuracy by domain and subtopic.

Re-teach your weakest three subtopics from memory without notes and check against your references.

Consolidate your formula sheet, disclosure checklist, and due-diligence rubric into one exam-day reference.

Plan the final 48 hours: review schedule, rest, and logistics.