IAIA

[Desert Sleet]

<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by naeem sarwar</i>
<br />What is the value of internatioal alternative investment analyst as compare to CFA?thanks.

naeem
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There was a time when a Bachelors degree in Mediaeval History and a few well-placed chums in the financial world were enough to launch a career in asset management. But those days are well and truly over. Today, in an industry that is under increasing pressure to perform – and to perform ethically and transparently – demonstrable professionalism is the name of the game.

As the industry internationalises, and companies seek a qualification with global relevance, Smith is certainly not alone in seeing the CFA as the natural choice. Some see it as the only choice.

“There’s only one game in town,” “The CFA is standard in the US – the largest and most important market in the world – and so much finance comes from the US. So, by default, the CFA is seen as the qualification to have by young, thrusting, upwardly mobile investment managers.”

But the CFA is not the only game in town. Four years ago, the Association of Certified International Investment Analysts (ACIIA) was founded. The ACIIA is a partnership of 25 national and regional associations and it offers its own qualification – Certified International Investment Analyst (CIIA).

There is also the Chartered Alternative Investment Analyst (CAIA) designation, which aims to provide a global professional standard for the alternative investment industry. The CAIA started in the US, but is gaining ground in Europe. The French business school Edhec offers preparatory courses on an exclusive basis through Edhec Alternative Investment Education.

But what can these qualifications offer that the CFA can’’t? This question is asked of the CIIA in particular, which presents itself as a direct alternative to the CFA.

Some are dismissive of the CIIA. “I don’t have much knowledge of it and I’m not that attracted to it,” some ppl say. “It’s a little late in the day for them to challenge the CFA.”

So why did the ACIIA feel it necessary to create a new qualification when the CFA has been around for 40 years and enjoys widespread recognition?

The key difference between the CIIA and the CFA is that CIIA combines local and global knowledge. This is particularly relevant for European investment professionals.

“You should not just be directed to a global body of knowledge,” says Rau. “You should also have local knowledge. In Europe we have to take care of local regulations.”

CFA prioritises information about the US over local information that may be more relevant for European practitioners. “The CFA deals with a lot of things you need if you work in the US,”. “But candidates from other countries are missing out on local and regional knowledge.”

The CIIA offers US GAAP (generally accepted accounting principles), but fouses on regional regulations and jurisdictions. This is not because of an aversion to all things American, but because the ACIIA has no activities in the US.

ACIIA is “a democracy that is not led out of any one country”. Questions for the exams come from the participating countries. If we want to cover a country in the CIIA, we look for a partner in that country. Theye’re looking for a partner in the US, and have taken some concrete steps.

The CIIA is accredited by the Financial Services Authority (FSA), but ACIIA has found it hard to make headway in the British market. The UK Society of Investment Professionals, the natural partner for the ACIIA, is in bed with the CFA Institute. They are not allowed by the Americans to offer the European exam.

Another advantage of the CIIA, in my view, is that it offers its examination in eleven languages, so that candidates are not confined to English. This can be important for a French, Spanish or Chinese candidate

No one wants to say so directly, but the whole CFA/CIIA competition is starting to look a bit like a face-off between the Anglo-Saxon world and everyone else. Some of the language used in the ACIIA’s official documentation reflects these concerns.

"The ACIIA is a democratic co-operation of national societies as competent partners,” the ACIIA profile says. “Each national society plays an important role in the global CIIA education programme and the national sovereignty, individual culture and language of each member.”

However, as also a CIIA-accredited professional, i will highlight some advantages in the CIIA programme that are entirely unconnected to cultural issues. Speed – you can take the final exam in nine months as opposed to three years for the full CFA – and a different learning style.

The CAIA may seem like more of a complement to the CFA than an alternative. The programme aims to teach about all alternative investments, from hedge funds and private equity to commodities and real estate, and so covers quite different material from the CFA.

People do the CFA because they know they won’t move on if they don’t have it. By contrast, the CAIA programme teaches students about subjects they won’t have touched on at university. “Look at weather derivatives,” . “They’re becoming increasingly popular. You learn about weather derivatives on the CAIA programme.”

I believe that CAIA can operate as a complement to the CFA or as an alternative. “CAIA stands on its own feet but can also be seen as an AI complement to the CFA programme,. “CFA charter holders who want to explore alternative investments beyond the fundamentals covered in the CFA programme will find interest in CAIA.”

But with the growth of alternatives, we may be anticipating a future trend. “I am convinced that, in the future, the investment community will be given a choice focus on bonds and equities or specialise in alternative investments, such as hedge funds, commodities, private equity, and real estate.”


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