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CIMA Adds Post-Modern Portfolio Theory To Curriculum

The Investment Management Consultants Association announced that it has changed the requirements for attaining the designation of Certified Investment Management Analyst, or CIMA.

What’s new? Test takers need to apply not only Modern Portfolio Theory (MPT) but Post-Modern Portfolio Theory (PMPT) as well.

Followers of PMPT have—over the years—criticized the investment management industry for using what they say is an inferior approach to asset allocation. Famous detractors of MPT include Jeremy Grantham, Nassim Nicholas Taleb (author of the “Black Swan”) and Ray Dalio (CEO of Bridgewater Associates, a $75 billion hedge fund) among others. Registered Rep.’s July cover story, titled “Everything You Know About Asset Allocation is Wrong,” discusses the origins of the debate and the differences between the two methodologies.

The higher standards, announced in the IMCA release, stem from findings of a job analysis survey conducted by IMCA in 2007 and are designed to meet third-party accreditation standards. “The job analysis showed us that CIMA professionals work in a variety of different roles in financial services, from institutional investment management consultants to business executives within financial services firms,” said Dede Pahl, IMCA’s executive director. “We have seen increased interest from various sectors of the financial services industry as they realize the value and importance of obtaining advanced investment management consulting education.”

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