September 2007
Director's Comments
The Subprime Crisis of 2007
Black Monday - 1987
Asian Debt Crisis - 1997
Long-Term Capital Management - 1998
Bursting of the Dot-Com Bubble - 2002
Subprime - 2007
Each of these events has been viewed as a turning point in the world's
capital markets; a time of reassessment and reevaluation for banks,
investors and governments alike.
Today, we're seeing the same thing over subprime concerns. However,
unlike previous crises, there seems to be a more sedate reaction than
we've seen in the past. Despite some redemptions at hedge
funds, a pause in the LBO and CDO market, a virtual stop in
mortgage-backed liquidity and a tightening of credit standards, there
is the sense that "we've been through this before."
As occurred after the events above, financial professionals have
entered a period of questioning and introspection. No one
knows exactly what will happen in the months to come, who will move
forward relatively unscathed and who will close up shop, what lessons
are to be learned about leveraging or the ratings agencies' role in
structured credit. What is clear, however, is that liquidity
is a variable, not a constant.
By now, the cycle that follows a watershed event is familiar:
retrenchment, a reappropriation of money, and regrowth. The
remaining question is how soon regrowth will come, and whether (and
what, exactly) the market will learn from the latest "crisis" in order
not to repeat the same mistakes in the future.
With that in mind, the CAIA Association has been hard at work enhancing
our curriculum to reflect the changes in market conditions, risk levels
and trading strategies. We have always considered our
curriculum to be dynamic - evolving in as close to real-time as
possible - to ensure it's the most relevant and thorough educational
format available to alternative investment professionals.
As we enter the autumn and our next exam cycle, I know that the CAIA
Association will continue to provide the best AI education in the
world. We will be expanding our global member
chapters, increasing the number of networking events, and traveling to
new regions of economic growth to ensure that our curriculum and
membership benefits reach as many professionals as possible.
Best regards,
E. Craig Asche
Executive Director
September
2007 Exams In Session
The September exams are now underway. We wish the best of luck to the over 2400 individuals who have registered for this exam cycle.
Grade Release Information
Grading will commence AFTER the examination window closes on September 21st. Please do not contact the Association for grades at this time. An announcement will appear on the homepage when grades are available. Examinees will also be notified via email.
Level I grades are expected to be released approximately two weeks from the last examination day. Level II, which includes essays, takes more time and these grades are generally available between four and five weeks after the last examination day.
For more information about the grading process, please visit the Grading FAQs.
Registration for the next exam period (March 10 - 21, 2008) opens October 1, 2007
Survey
Snapshot
As promised, we offer this brief snapshot of some items we believe will be of interest:
- Of those who did not register for a 2007 exam, 61% plan to
enroll in 2008/2009, and an additional 27% are considering doing so
- Over 50% of respondents hold a graduate degree
- The countries with greatest representation were:
- US - 40.7% (42.8% of 2007 candidates)
- Switzerland - 10.9% (11.9% of 2007 candidates)
- UK - 6.2% (8.5% of 2007 candidates)
- Canada - 5.0% (4.3% of 2007 candidates)
- India - 4.2% (1.3% of 2007 candidates)
- Our audience spans the range of interest & focus:
- Of all respondents only 50.8% work primarily or exclusively in alternatives
- While hedge funds remain the area of greatest interest (84.1%), all alternative investment areas are of interest to at least 25% of you
- Your goals continue to be in line with our mission - over 80% of both current and past candidates enrolled in the program to develop and demonstrate their alternative investment knowledge.
Our thanks go out to all who participated in our summer survey. If you're interested in learning more about our candidates and members, visit the designation section of our website.
Portrait of a CAIA Member
Wei Mei
Tan
Vice President, Cash Flow CDO Distribution &
Structuring
Credit Suisse
Wei Mei
Tan has been in the alternative investment industry since she started
her professional career, first on the buy side in Singapore and
currently on the sell side in Hong Kong. She's currently a Vice
President on the Credit Suisse Cash Flow CDO Distribution and
Structuring team for Asia ex-Japan, based in Hong Kong.
Ms. Tan began her career in alternative investment in 2001 when she
worked as a portfolio manager for the US Private Equity Funds portfolio
at Temasek Holdings in Singapore. Since then, she has augmented her
practical experience with education through the CAIA Association.
"During my time at Temasek, I began working with structured credit
products, which I found to be an interesting intellectual and practical
challenge," Ms. Tan said. "In order to enhance what I already knew
about the markets, I looked to the CAIA curriculum for guidance and a
broader knowledge of alternative investments than I previously had."
Ms. Tan continued: "The time preparing for and passing the two levels
has paid off. I have solidified my understanding of structured credit
products, especially as they relate to a broader investment portfolio.
The CAIA designation has allowed me to command greater credibility from
clients. Even better, the CAIA member network helped me connect with
like-minded professionals when I transitioned to Hong Kong in 2005."
While Ms. Tan has benefited professionally from the CAIA Association,
she has also supported the Association's growing presence in Asia. She
became the first Singaporean awarded the CAIA designation when she
successfully sat for the Level I and II exams in July 2003 and February
2004, respectively. She was also directly responsible for starting the
Association's Singapore Chapter in 2004, which has 41 members today and
expects 171 candidates to sit for the September 2007 exams.
Before joining Credit Suisse in 2006, Ms. Tan spent one year at JP
Morgan as Product Manager for Global Structured Credit and Structured
Alternative Investments (Asia ex-Japan) in Hong Kong and four years
(2001-2005) at Temasek Holdings in Singapore.
Ms. Tan graduated from Nanyang Technological University in Singapore in
2001 with an honours degree in Accountancy. In addition to the CAIA
designation, she is a CFA Charterholder and CPA.
Roxanne
Alexander
Senior Vice President, Evensky & Katz Wealth
management
Roxanne
Alexander is a Senior Vice President at Evensky & Katz Wealth
Management, a private wealth and financial planning firm with
approximately $550 million under management based in Coral Gables,
Florida. Ms. Alexander completed the CAIA program in
September 2006 and became a member of the Association in November 2006.
Ms. Alexander works directly with the firm's Chief Planning Officer to
develop financial plans and investment policies, which may include
alternative investments, for new clients. Ms. Alexander also
sits on one of the firm's advisory teams, which allows her to work
closely with existing clients to incorporate traditional and
alternative asset classes into their portfolios.
"When my company began evaluating and including alternative investments
in its recommendations, I decided that I needed to learn more about
these products to best serve my clients," said Ms. Alexander.
"I had heard that the CAIA Association was the best resource for
learning about alternatives, so I registered to take the Level I
exam. The curriculum's emphasis on a broad range of AI
strategies has given me the knowledge and background to evaluate the AI
universe. Although we create core portfolios using mainly
traditional investments and asset classes, some clients come to us with
existing alternative investments, so the program helped me determine
where AI assets can fit in a portfolio""
Before joining Evensky & Katz in 2001, Ms. Alexander was the
owner/director of Jewel Homes and Properties, a Kingston, Jamaica-based
real estate company that specialized in locating and evaluating
Jamaican real estate for multinational corporations. She is a
member of the Evensky & Katz Investment Committee, The
Financial Planning Association (FPA), and the Association of Investment
Management Research. In addition to her CAIA designation, Ms.
Alexander is a Certified Financial Planner.
Ms. Alexander is also the author of numerous trade articles and has
co-authored a chapter in the 2006 book Retirement Income Redesigned:
Master Plans for Distribution.
Ms. Alexander holds a Bachelor of Science in Management and Accounting
from the University of the West Indies and a Masters Degree in
Investments and Financial Planning from the University of
Miami.
CAIA Job Board
Did you know that the CAIA Association has a Job Board for CAIA members? If you or your firm are looking for finance professionals with a strong knowledge of and commitment to alternative investments, let us know!
According to our recent membership poll, CAIA members list the Job
Board as one of the top three sections of the website they visit each
month. If you'd like to reach CAIA members in your employee
search, visit the Job
Board Submission page today.
CAIA Events Roundup - Fall 2007
The CAIA Association is on the move again and excited to
resume a
very busy travel schedule for the fall. Our year has been filled with
enthusiastic visits with our candidates and members and inspiring
encounters with alternative investment professionals eager to explore
the CAIA program. We're delighted that we'll have the
opportunity to
meet many more of you in the course of our upcoming global tour and are
equally looking forward to seeing the familiar faces of our faithful
supporters.
Don't forget to register yourself and your colleagues for an
"Introduction to the CAIA Association" presentation in a city near
you. And if you don't see your area listed, we encourage you
to
contact our offices to arrange a private presentation for your firm.
You can reach us at events@caia.org. The introductory events
allow you
to pose questions directly to CAIA representatives and network with
other AI professionals.
- Sydney
- September 25
- Toronto - September 26
- Montreal
- September 27
- Paris
- October 9
- London
- October 11
- New York - November 1
CAIA
Association Featured in Opalesque
How to get an A.I. education?
By Benedicte Gravrand
Geneva, Switzerland: Are you or planning to be involved in the world of alternative investments as a fund manager, a risk manager, an investor, an analyst, an accountant, a lawyer, in marketing, in investor relations, in the back-office...? True, you can learn all about alternative investments on the ground. However, to get an edge and enter the A.I. world with good basic knowledge and knowledge on the latest developments, you can also study, pass exams and get a recognised certification. The CAIA was designed to do just that. Now, over 1100 people worldwide have the CAIA designation.