What is the Certificate in Investment Performance Measurement (CIPM)?

If your investment portfolio is spread across a large number of asset managers, it is vital to know who manages your money and how they manage it. By hiring a financial advisor or asset manager who has completed their Certificate in Investment Performance Measurement (CIPM), you can be more confident and confident that their oversight will ensure that your underlying investments are well managed.

Let’s take a closer look at what the CIPM certification is, what it takes to achieve it, and whether it makes sense for you to consider working with an advisor who has earned the CIPM based on your individual requirements.

What is the Certificate in Investment Performance Measurement (CIPM)?

The Certificate in Investment Performance Measurement is administered and awarded by the CFA Institute. While the CFA institute’s primary certification is the Chartered Financial Analyst (CFA) designation, many financial professionals who have earned their CFA credentials choose to pursue CIPM certification as well.

What is a Chartered Financial Analyst (CFA)?

A Chartered Financial Analyst (CFA) is a globally recognized and respected financial certification for financial professionals looking to develop their expertise in wealth management. It is administered by the CFA Institute, an international organization that strives to promote knowledge and financial literacy in investment.

With a CFA designation, finance professionals gain the knowledge and skills necessary to succeed in finance, banking, and securities. The curriculum is specifically designed to reinforce a number of key investment principles.

Read more about the CFA designation.

Holders of a CIPM certificate often work for asset managers and financial institutions. You will also find financial advisors and asset managers who have achieved CIPM certification, primarily those who serve high net worth individuals with more complex and varied investment portfolios.

A finance professional who has achieved CIPM certification demonstrates his commitment to continued investment education, ethics and standards set by the CFA Institute and considered unparalleled by many industry observers.

Should You Hire a CIPM Certified Consultant?

A financial advisor who has achieved CIPM certification can provide significant value to their clients, especially:

Wealthy Investors: As a wealthy investor, you want to get the most out of your money. Since your situation can be complex, you can count on a CIPM certification holder to help you discover investment opportunities that other financial professionals may not feel comfortable with. They know what it takes to look beyond the surface and help you achieve your short- and long-term financial goals. Investors with large or complex portfolios: If you have a large portfolio spread across many investment managers, staying on top of performance updates and changes between underlying positions can be overwhelming. A CIPM certificate holder can effectively monitor your investments and know how to ask the right questions to determine whether you should remain invested or be reassigned to another manager. Investors in Special Situations: Unfortunately, investors sometimes become the unwitting victims of investment fraud carried out by an unscrupulous financial advisor. In other cases, investors may have a significant interest in a public or private company that is at risk of bankruptcy or otherwise under pressure. In these kinds of circumstances, a CIPM certificate holder can be invaluable in determining the best options available and optimal results when the going gets tough.

What is the value of hiring an advisor who has earned the CIPM?

J Lawrence Manley Jr., CFA retires well with our simple yet sophisticated investment process

To better understand the drivers of your investment returns and ensure you get the highest returns at your desired level of risk, you should work with a fiduciary with the CIPM designation. A consultant with the CIPM label has in-depth knowledge of risk analysis, performance measurement and manager evaluation. Importantly, they can explain advanced and complicated investment performance data and products.

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J Lawrence Manley Jr., CFA | Manley Capital Management

🔗 Website | Asset manager profile

What is required to achieve and maintain CIPM certification?

Those hoping to earn their CIPM certification must meet certain requirements set forth by the CFA Institute. Here is a brief overview of the requirements:

CIPM experience requirements

Before taking the CIPM exam, a finance professional must first apply for regular CFA Institute membership, which requires the following work experience:

At least four years (48 months) experience in evaluating or applying financial, economic and/or statistical data as part of the investment decision process; supervise persons who carry out such activities; or teaching such activities. To be considered for a position, at least 50% of your time must be spent directly on the investment decision-making process or producing a work product that provides information or adds value to that process. Work must be full-time and can be earned before, during, or after participating in the CIPM program.

CIPM exam

The CIPM exam consists of two parts: Level I and Level II. Level I consists of 100 multiple choice questions, to be completed in three-hour sessions in the same sitting.

After passing Level 1, a CIPM candidate can sit the Level II exam which contains 20 item sets, each containing 4 multiple choice questions. Level II exam time is 3 hours.

All CFA charter holders and candidates who have successfully passed the Level III CFA Program exam are exempt from CIPM Level l and can enroll directly for Level ll.

According to the CFA Institute, candidates spend an average of 155 hours preparing for the exam.

CIPM Continuing Education Requirements

Once a finance professional has completed their CIPM certification, they must continue their education. The CFA Institute requires all certificate holders to complete 15 credit hours of continuing professional development to maintain their CIPM designation.

How to find the best CIPM advisor for you?

For many individuals and families, the financial advisor you hire is more likely to hold the Certified Financial Planner (CFP) designation than CFA or CIPM certification. However, you should be sure that you choose to work with a consultant who has earned their CIPM certification or CFA designation, as these CFA Institute-issued credentials are among the most rigorous and highly regarded advanced designations in the industry .

Particularly if you are a high net worth investor or have complex investments in your portfolio, consider speaking with a CIPM certification holder to learn how they can apply their specialist knowledge and experience to provide expert insight and oversight into your investments and retirement savings. . † You can find a growing number of CIPM certification holders on Wealthtender and you can also search the directory of CFA Institute members on the CFA Institute website.

Recommended CIPM Certification Advisors on Wealthtender

Frequently Asked Questions

How can I confirm that the financial professional I work with has achieved CIPM certification?

Visit the list of members on the CFA Institute website.

Where can I learn about other professional names of financial advisors and coaches?

Refer to this list of popular financial certifications prepared by Wealthtender to help you learn more about each designation. You’ll find a brief description of each certification, plus links to in-depth articles if you want to learn more about a particular designation.

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About the author
Brian Thorp, founder and CEO of Wealthtender profile photo

About the author

Brian Thorp

Brian is CEO and founder of Wealthtender. He and his wife live in Texas and enjoy the diversity of Houston and the vibrancy of Austin.

With over 25 years of experience in the financial services industry, Brian applies his experience and passion at Wealthtender to help more people enjoy life with less money stress.

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This post What is the Certificate in Investment Performance Measurement (CIPM)?

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