May 2007
Director's Comments
Risk is ubiquitous. While investors and fund managers alike must remain ever vigilant of
the risks inherent in their respective portfolios, they are for the
most part unique to each individual investor and manager. These can
include risks associated with leverage, volatility, concentrations,
geopolitical developments, credit, interest rates, manager selection
and so on...but the one risk common to all investors over
which they have little if any control, is systemic risk.
Liquidity has never been greater than it is today, yet history tells us
that this can change quickly and often unpredictably.
Regulators cannot be expected to anticipate such changes, but with the
support of industry, they can attempt to monitor the aggregate risks
across all financial counterparties and step in quickly to ensure that
fallout from one specific event does not spread like contagion through
the entire financial system. Ensuring the stability of the financial
system is without question the single most important responsibility of
regulators, for without some "body" overseeing the entire system, we
risk a repeat of 1929, or worse.
To do so will require a much higher degree of coordination across
regulatory jurisdictions, for while markets have become global,
regulatory institutions have not. This lack of uniformity could, in
itself, become a major source of risk. For example, without
international coordination & cooperation, a contagion
could start in a market lacking in adequate regulatory supervision.
Investors, on the other hand, need to operate under the assumption of
'caveat emptor' - free markets require this. In the
absence of foul play, individual losses should not be the concern of
regulators. Instead, regulators should focus on assimilating
the information necessary to recognize when the entire system is at
risk, and have the necessary tools to prevent it. LTCM still serves as
a reminder of how, with the help of financial institutions, regulators
can avert a potential threat. No one, regulators included, can be
expected to foresee what event or series of events might precipitate a
meltdown, but with the industry's support, regulators may be
able to anticipate the potential for fallout and respond expeditiously.
No one wins in a systemic meltdown. All of us must recognize the risk
of such an extreme, albeit unlikely, 'fat tail'
event and support regulators' efforts to collect the data
essential to protect against it.
E. Craig Asche
Executive Director
September 2007 Exams
- EARLY REGISTRATION ENDS MAY 14 -
- Exam dates: September 10 - 21, 2007.
- Final exam registration closes July 30, 2007.
Scheduling an Examination Appointment:
Exam appointment scheduling for the September 2007 exams is slated to begin in late May. All exam appointments are scheduled directly through Pearson VUE. The testing provider typically opens scheduling around two or three months into the registration period, and when this occurs candidates will receive an email from the CAIA Association with instructions on how to schedule the examination appointment with Pearson VUE. It is not possible to schedule an exam until this occurs. Candidates who do not receive scheduling instructions by May 31st are directed to notify the Association by email at candidate@caia.org. For more information about the testing centers, please visit the Exam Locations.
All candidates are solely responsible for ensuring that contact details are correct and up to date so that scheduling instructions reach the proper address. Please review your contact details on the website and make sure the information is accurate.
Meet the Board of Directors:
Peter Douglas, CAIA
Mr. Douglas joined the CAIA Board of Directors as its fourth and most recent member in 2005. His longtime dedication to alternative investments, as demonstrated by his early achievement of the CAIA designation in 2003, and the respect he has earned from finance professionals throughout the world made him a welcomed addition to our Board of Directors. We are privileged to have his insight and guidance on the Board and pleased to introduce him to you.
To read Mr. Douglas' profile, click here.
CAIA Membership Passes 1000
Congratulations to the over 300 March 2007 Level II candidates who have recently become members of the CAIA Association! With the latest class of members, we have now reached over 1000 CAIA members, an amazing growth from our inaugural 43-member class in July 2003. A list of the new CAIA members will be published in next month's newsletter.
We would also like to extend our congratulations to all the Level I candidates who are moving on to the Level II exam. We wish all September 2007 candidates the best of luck and look forward to welcoming you all into membership very soon.
CAIA Events Roundup
Upcoming Presentations - Asia & Caribbean
We invite you to join us at one of the following CAIA informational presentations taking place in Asia this spring.
- Cayman Islands - May 16
- Singapore - May 22
- Hong
Kong - May 27
We look forward to seeing you later this year in Paris, London, Melbourne, Sydney, Toronto, Montreal, New York and more!
To see the full list, check out the CAIA events list.
The CAIA Association received a warm reception from candidates and members alike in cities across the globe this spring, including San Francisco, Chicago, Geneva, and Frankfurt.
At each event, we were greeted with enthusiastic professionals in the CAIA community, eager to make a connection with us and each other.
Photos from our Signature Event, held on April 30 and featuring a presentation by CAIA member Mark Anson are now available.
We were also excited to meet hundreds of AI professionals considering the CAIA program in cities around the world. Our sincere thanks go out to the many members and candidates who helped to spread the word to colleagues and friends. A special thanks to those who organized special CAIA presentations, such as the May 8 CalPERS & CFASS event in Sacramento and the April 23 Morgan Stanley event in New York.
Throughout the year, we will be making our way to more cities to greet the continually growing candidate and member communities. Candidates: please stay tuned for more details on CAIAA events in the following cities this year:
- Paris - October 9
- London - October 11
- New York - November 1
- Singapore - November 26
- Hong Kong - November 30
- Tokyo - December 5