CFA Institue

CFA Institue

June 30, 2005 16:48 ET

New CFA Institute Training Program to Be Available for Investment Performance Practitioners; New Independent Advisory Body Also Formed

CHARLOTTESVILLE, Va.--(CCNMatthews - Jun 30, 2005) -

CFA Institute today announced a new certification program, scheduled to begin in the first half of 2006, which will teach investment professionals the intricacies of investment performance analysis and reporting. The two-level program is based in part on the Global Investment Performance Standards® (GIPS®) that CFA Institute and 23 other investment organizations around the world sponsor. The new Certificate in Global Investment Performance Standards (CGIPS™) fills a void in the marketplace for an education and credentialing program specifically focused on performance evaluation and presentation.

CFA Institute also today announced the formation of an independent Advisory Council that will provide guidance on CGIPS program policies.

This specialized, practice-oriented program is designed for those employed by investment management organizations, firms engaged in verifying claims of compliance with the GIPS standards, investment consulting firms and third-party performance providers such as custodial banks. It also will be attractive to professional staff members of regulatory agencies, plan sponsors and performance measurement software developers.

"A testing program for the performance measurement industry is long overdue," said Carl Bacon, chairman of StatPro Group plc, a United Kingdom-based provider of portfolio analytics solutions to the global asset management industry. "In my view, performance measurement is a profession in its own right. The development of the CGIPS program, which can only benefit us, is a natural progression of the importance and value others have placed in this industry."

CFA Institute, which has more than forty years of experience in managing and administering a globally recognized exam - the rigorous Chartered Financial Analyst® (CFA®) exam - has been developing the CGIPS program for the past year. While progress on the CGIPS program is still underway, CFA Institute plans to offer two sequential levels of examinations: "Principles" and "Expert."

The "Principles" exam will test candidates on the CFA Institute Code of Ethics and Standards of Professional Conduct, performance evaluation fundamentals (including rudimentary attribution analysis), and the provisions of the GIPS standards. The "Expert" level will cover the CFA Institute Code and Standards, advanced performance analysis techniques and the finer points of the GIPS standards and guidance statements. Each exam will be computer-based and three hours in duration.

CFA Institute plans to make the first "Principles" exam available in the first half of 2006 and the first "Expert" exam in the second half of that year. Both CGIPS exams will be given in English. As CFA Institute continues to build this program, it will provide more information about the costs to candidates.

Upon completion of both exams and having met other requirements, candidates will receive a certificate and the right to use the CGIPS designation. Other requirements include having at least two years of professional experience in a performance-related position, participating in a mandatory continuing education program and adhering to a professional conduct program.

A vital element of the CGIPS program is the formation of the CGIPS Advisory Council, whose role will be to represent the stakeholders' interests. Major responsibilities include counseling CFA Institute on certification policies and recommending examination topic weights.

The five members of the CGIPS Advisory Council are:

-- Karl H.K. Lung, CFA, (Hong Kong) president of the Hong Kong Society of Financial Analysts;

-- John P. Meier, CFA, (San Francisco) managing director, Strategic Investment Solutions, Inc.;

-- Gabriele Montalbetti, CFA, (Milan) partner, Independent Global Managers;

-- Neil E. Riddles, CFA, (Fort Lauderdale, Fla.) chief operating officer, Hansberger Global Investors, Inc.; and

-- Karyn D. Vincent, CFA, (Portland, Ore.) founder of Vincent Performance Services LLC.

Vincent, Riddles, along with Bacon, are also members of the Investment Performance Council (IPC), a standing committee of the CFA Centre for Financial Market Integrity. The IPC's role is to promote the adoption and implementation of a single investment performance presentation standard throughout the world as the common method for calculating and presenting investment performance.

"A key objective of the CGIPS certification program is to professionalize the field of investment performance evaluation and presentation by recognizing its status as an expert domain, improving standards of practice, and rewarding individual achievement," said Bob Johnson, CFA, managing director of the CFA Program Division, which will oversee the CGIPS program. "We are delighted to have such a distinguished group of investment practitioners agree to serve on our Advisory Council. Their participation will help ensure the success of the program."

Johnson added that CGIPS is truly intended to be a specialist designation and not a replacement for the CFA program. "CFA Institute is designing this program for those individuals who, because of their careers or professional aspirations, do not find that the CFA program meets their needs," he explained.

Interested candidates may view a free, 30-minute Webcast on the CGIPS program at Questions about the credentialing program may be directed to

About CFA Institute

CFA Institute is the global, non-profit professional association that administers the Chartered Financial Analyst® (CFA®) curriculum and examination program worldwide and sets voluntary, ethics-based professional and performance-reporting standards for the investment industry. In addition to the CFA program, CFA Institute also develops and manages global standards for investment professionals such as the Asset Manager Code of Professional Conduct, Trade Management Guidelines and the Global Investment Performance Standards® (GIPS®). The GIPS standards were most recently revised in February 2005. For more information about these changes, visit

CFA Institute has 76,000 members in 119 countries. Its membership includes the world's 64,000 CFA charterholders, as well as 131 affiliated professional societies and chapters in 52 countries and territories. More information may be found at or by calling 1-800-247-8132 or 1-434-951-5499 in the U.S., 44-207-712-1719 in London or 852-2868-2700 in Hong Kong.

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