Certificate in Investment Performance Measurement (CIPM)

An investment’s performance could mean the difference between a comfortable retirement and a few more years of work. Therefore, it’s vital for financial planners and investment managers to accurately assess investment performance for their clients. A Certificate in Investment Performance Management (CIPM) can tell clients that a financial professional has the expertise they’re looking for. Learn what a CIPM does and how they qualify.

What Is a CIPM Certification?

The Certificate in Investment Performance Measurement is a professional credential focused on investment performance evaluation and reporting. The designation is offered by the CFA Institute and is designed for professionals who analyze, measure and present investment results. It emphasizes transparency, accuracy and ethical standards in the reporting of portfolio performance.

The CIPM program centers on the tools and methods used to evaluate how investment portfolios perform over time. Professionals with this certification are trained to analyze returns, assess risk and interpret performance data for investment managers and institutional clients. Their work often helps organizations better understand whether investment strategies are meeting their objectives.

CIPM-certified professionals often work in roles related to performance analysis, portfolio evaluation and investment reporting. They may support asset managers, institutional investors or financial firms that need accurate performance data to communicate with clients and regulators. By specializing in performance measurement, CIPM professionals help ensure that investment results are reported clearly and consistently.

Services Offered By CIPM Professionals

Professionals with the CIPM often specialize in evaluating how investment portfolios perform over time. They may calculate and analyze returns for portfolios, funds or institutional investment programs. Their work helps investment managers and organizations understand whether a portfolio is meeting its performance objectives.

CIPM professionals may also conduct performance attribution analysis, which examines the factors that contributed to an investment portfolio’s gains or losses. This process breaks down returns to determine how decisions such as asset allocation, security selection or market timing affected results. These insights can help investment managers refine strategies and better understand what is driving portfolio performance.

Another key service provided by CIPM professionals is analyzing the relationship between risk and return within a portfolio. They may evaluate whether the level of risk taken aligns with the investment strategy and expected outcomes. By assessing volatility, benchmarks and risk-adjusted performance metrics, CIPM specialists help organizations interpret portfolio results more accurately.

CIPM professionals often help prepare performance reports for clients, stakeholders or regulators. These reports explain how investments performed over a given time period and how results compare with relevant benchmarks. Clear and transparent reporting helps investors better understand the effectiveness of investment strategies and maintain trust in the reporting process.

Click Your State to Get Matched With Financial Advisors That Serve Your Area

Choose your state and answer some questions to get matched with up to three fiduciary advisors that serve your area.

CIPM Issuing Body

The CIPM designation is awarded by the CFA Institute. This is the same organization that offers the Chartered Financial Analyst (CFA) designation.

The CFA Institute says there are no prerequisites to earn the CIPM designation. However, one of the requirements for the certificate is membership in the CFA Institute. Consequently, that membership requires a four-year bachelor’s degree or equivalent experience.

CFA Institute membership also requires 48 months of professional experience in investment decision-making. Plus, applicants for membership have to supply two to three professional references.

Candidates who qualify for membership in the CFA Institute have to take two exams to earn the CIPM designation.

CIPM Exams

Other than what is required to join the CFA Institute, earning a CIPM certificate doesn’t require any pre-certification education. Applications only have to pass the pair of exams.

The tests are referred to as Level I and Level II, formerly known as Principles and Expert. The Level I test is 100 multiple-choice questions, but applicants get three hours to take it.

More than a third of the questions address performance measurement. Performance attribution, performance appraisal, ethical standards, presentation skills, and the GIPS standard comprise the rest of the test. About half of the applicants pass this test, according to the CFA Institute.

The Level II test has 80 questions. It presents 20 scenarios, each followed by four multiple-choice questions. Applicants get three hours to complete this test.

The Level II test primarily focuses on manager selection. However, it also looks into performance attribution and appraisal, ethical standards, presentation, Global Investment Performance Standards (GIPS) and performance measurement. About half of the applicants pass this test as well.

People who hold the CFA designation can skip the first test and go directly to the Level II exam.

CIPM Conditions and Costs

The institute provides a set of study aids to help students with the exam. They include an e-book and an online learning program with flashcards, practice questions, and a mock exam.

When registering to take the exams, applicants must agree to follow the CFA Code of Ethics and Standards of Professional Conduct. Meanwhile, to keep their certificate current, they have to take 15 credit hours of continuing professional development.

There are two dates for each exam, in March and September. As a result, most applicants can complete their certification requirements in one year.

It costs $675 to register for the exams, with a July 31 deadline each year. That covers the cost of the exam and the CFA Institute study materials. However, early registration (before May 31) reduces the cost to $475. Applicants also have to pay the CFA dues of $275 annually.

CIPM Jobs

The CIPM certificate is an optional career credential. Therefore, orders don’t receive any special privileges or powers. The certificate has been offered since 2006. As of 2023, according to the CFA, there are 2,600+ CIPM certificate holders.

While the CIPM certificate is optional, it’s seen as a badge of expertise and accomplishment that can advance a career. As a result, CIPM holders often work at investment banks, investment management firms, investment research companies, and retirement plan sponsors.

Comparable Certifications

The Chartered Financial Analyst, also awarded by the CFA institute, is the most popular investment certification. Over the last half-century, more than 165,000 people have earned CFA badges. It’s considered the designation of choice within the asset management field.

Further, the Chartered Alternative Investment Analyst (CAIA) is sponsored by the Chartered Alternative Investment Analyst Association. The association has about 11,000 members. This designation demonstrates knowledge and credibility in alternative investments.

Finally, the Certified Investment Management Analyst (CIMA) is a designation from the Investments and Wealth Institute. This certificate requires completing a college-level course of study. A short list of approved educational institutions offers these courses. Those schools include the University of Pennsylvania Wharton School, Yale School of Management, and the University of Chicago Booth School of Business.

How to Find a CIPM Advisor

One way to find a professional with the CIPM is by searching financial advisor directories or professional networking platforms. These tools often allow you to filter advisors by credentials, specialties and location. Looking for professionals who list the CIPM designation can help you identify individuals who specialize in investment performance analysis and reporting.

Because the CIPM designation is administered by the CFA Institute, you may also be able to find credential holders through the organization’s professional directories or membership networks. These resources can help verify whether a professional has earned the certification and remains in good standing with the issuing body.

Before working with a CIPM professional, it’s important to review their credentials, professional experience and licensing status. Some CIPM holders may work in institutional investment roles rather than providing direct financial advice to individuals. Reviewing an advisor’s background and areas of expertise can help ensure their skills align with the services you need.

Bottom Line

Earning a CIPM isn’t essential for an investing career. But it will help establish expertise and credibility in investment performance, fund manager assessment and presentation skills. You can earn a CIPM in a year through moderate expense and effort. The limited upfront investment of time and money may give it an appealing cost-benefit ratio compared to other investment industry certificate programs.

Investing Tips

If someone who specializes in assessing investment performance sounds like they could benefit your portfolio, consider finding an advisor with a CIPM. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goal, get started now.
Knowing how an investment will perform is only helpful if you have goals for that investment to reach. Do you know how much you’ll need to invest, how much risk you’re willing to accept, and how much of a bit inflation will take out of your investment? If not, SmartAsset’s investing guide can make the picture a little clearer.