We’re often asked, has CAIA dropped quantitative analysis from the most recent version of its program? The answer is no.

With the exception of Standards of Practice, the CAIA program is now exclusively alternative investments. This was always our goal. Those familiar with CAIA early on might remember when traditional investments occupied about 25% of the Level I curriculum. Then, in 2006, this material was moved out of Level I and into the CAIA prerequisite program. It didn’t go away, nor could it, given the foundational nature of this material, but instead became “assumed to be known” by all candidates upon entering as a Level I candidate. Now, in 2010, the quantitative material that also was part of CAIA’s Level I resides in the prerequisite program, again becoming assumed to be known by entering candidates. The chief benefit of these moves is that the space that was occupied by foundational knowledge is freed to offer additional alternative-specific material. What’s more, the level of detail of the material has ticked up because quantitative analysis can be applied to specific scenarios, such as evaluating the output of a regression analysis in the context of risk management or credit derivatives.

Nelson Lacey
Director of Examinations