CIPM® Exam Level I vs. Level II: Key Differences Explained
- Kateryna Myrko
- Jun 25
- 4 min read
The Certificate in Investment Performance Measurement (CIPM®) is a two‐level program administered by the CFA Institute designed to certify professionals in investment performance measurement, attribution, and appraisal. While both levels share a common goal—validating your expertise in performance analysis—they differ substantially in structure, depth, and candidate pathways. This guide unpacks the critical distinctions to help you decide which level to pursue (or how to prepare if you’re tackling both).
1. Exam Structure & Format CIPM Exam Level I Level II
Feature | Level I | Level II |
Question Format | 100 stand-alone multiple-choice questions | 20 item-set vignettes (4 questions each) |
Total Questions | 100 | 80 |
Duration | 3 hours | 3 hours |
Focus | Foundational concepts and calculations | Applied case studies and synthesis |
Results | Pass/Fail within 60 days | Pass/Fail within 60 days |
Both levels are proctored at Prometric centers worldwide and administered in English only .
2. Content Focus & Topic Weightings
2.1 Level I: Building the Foundation
Level I ensures you master core principles of investment performance before moving to complex applications: CIPM Exam Level I Level II
Performance Measurement Concepts (25 %)
Time- vs. money-weighted returns
Geometric vs. arithmetic linking
GIPS® Standards & Presentation (20 %)
Composite construction
Verification and compliance
Performance Attribution (20 %)
Brinson models (allocation vs. selection)
Factor-based attribution basics
Appraisal Fundamentals (15 %)
Risk-adjusted return metrics (Sharpe, Information Ratios)
Ethics & Professional Standards (20 %)
Global ethical guidelines and case study applications
2.2 Level II: Applying & Synthesizing
Level II tests your ability to apply Level I concepts in real-world scenarios and make informed judgment calls:
Advanced Appraisal Techniques (30 %)
Multi-period attribution
Fixed-income and multi-asset attributions
Manager Search & Selection (30 %)
RFP construction and screening criteria
Statistical and qualitative manager evaluation
Related Tools & Applications (20 %)
Scenario analysis
Portfolio optimization considerations
Ethics & Case Studies (20 %)
Complex ethical dilemmas in performance reporting
3. Eligibility & Candidate Pathways
3.1 Level I Registration
Open to All: No educational or professional prerequisites.
Ethics Commitment: Agreement to the CFA Institute Code of Ethics and Standards of Professional Conduct.
Technical Requirements: Valid passport for exam admission and English proficiency for comprehension of complex exam vignettes .
3.2 Direct Entry to Level II
CFA Charterholders & CFA Level III Passers: May waive Level I and register directly for Level II.
Ethics & Conduct Review: Direct‐entry candidates must also meet the Institute’s ongoing professional conduct standards .
4. Difficulty & Pass Rate Comparison
Exam Level | March 2025 Pass Rate | Five-Year Average |
Level I | 40 % | ~42 % |
Level II | 36 % | ~38 % |
Why Level II Is Tougher: Item-set vignettes require deeper analysis, multi‐step reasoning, and seamless integration of quantitative and qualitative insights.
Implication: Aspiring candidates should expect a steeper learning curve and plan for more intensive case‐based practice at Level II .
5. Study Commitment & Recommended Strategy
5.1 Estimated Study Hours
Level I: ~150 – 160 hours
Level II: ~160 – 200 hours, with emphasis on item-set practice
5.2 Structured Study Plan
Foundational Reading (Weeks 1–4): Thoroughly read official curriculum; summarize formulas and concepts.
Topic Drills (Weeks 5–10): Use question banks to target weak areas—especially quantitative modules for Level I and scenario analysis for Level II.
Mock Exams (Weeks 11–14): Simulate timed conditions—review wrong answers immediately to reinforce learning.
Ethics Deep-Dive (Ongoing): Integrate ethics case studies weekly; these carry significant weight across both levels.
Final Review (Last 2 weeks): Quick-fire flashcards, formula recap, and key standard checks (GIPS® compliance details, calculator policies).
6. Registration, Fees & Scheduling
Exam Windows: Twice yearly—March and September.
Fees (per Level): Early USD 575 / Standard USD 775.
Rescheduling: USD 25 fee applies within your confirmed window.
Materials: Digital curriculum is included; optional printed texts cost ~USD 110.
Prometric Centers: Over 160 countries—book early to secure your preferred slot.
7. Frequently Asked Questions
Q1: Can I prepare for both levels simultaneously?A1: It’s possible but not recommended. Master Level I concepts first to ensure a strong foundation before tackling Level II’s applied scenarios.
Q2: Do I need work experience before registering?A2: No for registration; however, two years of relevant professional experience is required to earn the CIPM® charter after passing both exams.
Q3: How do item-sets differ from multiple-choice?A3: Item-sets present a case vignette followed by four related questions, testing your ability to analyze and apply concepts in context rather than isolated calculations.
Q4: What calculators are allowed?A4: Only the Texas Instruments BA II Plus (and Pro) and Hewlett Packard 12C (and Platinum) models may be used in both exams.
8. Conclusion
Choosing between CIPM® Level I and Level II—or planning your progression through both—hinges on understanding their distinct formats, content emphases, and preparation demands. Level I builds the quantitative and theoretical groundwork; Level II challenges you to apply those foundations in realistic, multi-layered scenarios. By aligning your study strategy to each level’s unique requirements, committing sufficient hours, and leveraging the CFA Institute’s Learning Ecosystem, you’ll enhance your confidence and performance on exam day.
Embark on your CIPM® journey with clarity and structure—whether you’re laying the groundwork with Level I or demonstrating mastery in Level II, this roadmap equips you to achieve the designation and advance your career in investment performance measurement.
Boost your chances of success in the CIPM Program with the right preparation—explore our exclusive study materials and resources to excel in your certification journey!
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