Breaking it Down: Chartered Investment Manager (CIM®) Designation

What is the CIM®?
The Chartered Investment Manager (CIM®) designation offers credentials as a prerequisite in order to qualify for a license to become a Portfolio Manager.

The Steps to CIM® Designation:

The Canadian Securities Institute (CSI) ™ offers two routes for obtaining your CIM designation.

The CSI Routes:

1. CSC + IMT + PMT = CIM (Can be found on CSI Website)
2. CSC + WME + AIS + PMT = CIM (Can be found on CSI Website)

Foran Financial supports the first option only with the following seminars:
• The Foran Investment Management Techniques seminar (IMT).
• CSI ‘s IMT™ includes 2 exams, the first is technical knowledge and the second is a case study which tests application.
• People find the second exam “not as easy”
• The Foran Portfolio Management Techniques seminar (PMT).

Note: Students can complete these Seminars in any order according to their personal schedules.

If you have any questions about the WME, IMT and PMT seminars, please leave a comment below or give us a call.

If you are interested in registering for a course or purchasing one of our products, you can do so online or over the phone.

Update: Vancouver Seminars

Vancouver seminars are going great! Here’s one response from the IMT session last week.

“Ron was (as always) SUPER great…..it’s the ONLY way to do one of these courses….for sure.”

Finishing up this weekend with PMT. If you are interested in joining us, get your order in soonest! We’re finalizing materials out tomorrow.

–Alison

PMT Exam Prep Questions

Questions

 

Chapter 2: Ethics and Portfolio Management

1. Which of the following is important in making a Code of Ethics effective?

 

I.             must be supported from senior management

II.            employees must buy in to the code

III.           training and reinforcement must be available

IV.          periodic reviews and updates

 

a) I, III, IV

b) All of the above

c) I, II, III

d) II, III, IV

 

Chapter 8: Managing Fixed-Income Portfolios

2. This is a means of protecting a bond portfolio from interest-rate risk. This is ?

 

a) horizon analysis

b) dedication strategy

c) immunization

d) barbell analysis

 

Answers

 

 

32. b) All of the above

152. c) immunization

 

For more Investment Management Techniques questions check out our PMT Quiz Book.

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Portfolio Management Techniques

Questions

Overview: Derivatives

1. A portfolio manager is considering using index put options or index futures contracts to hedge his equity portfolio. What statements are correct about the two vehicles?

I. An index futures hedge will give the portfolio manager very close protection. If the beta is taken into consideration it is hoped that every dollar lost in the portfolio would be gained by the futures contracts. For a portfolio hedge using index puts, if the beta and delta are used to determine the number of put option contracts, it can also provide very close protection.

II. There is no up-front cost to entering a futures contract, although a performance bond (initial margin) must be posted. Additional margin may be called for if the futures position moves adversely.

III. There is a cost to purchasing put option contracts; however, once the premium is paid, there are no further margin obligations (with long option positions).

IV. As long as the futures hedge is in place, there is no possibility for windfall gains. Unlike hedging with futures, put options do provide the possibility for windfall gains.

a) I, II

b) III, IV

c) I, III

d) I, II, III, IV

Chapter 3: The Institutional Investor

1. With this type of pension plan, pension liabilities (pension benefits promised to retirees) resemble those of insurers in that they are guaranteed by the sponsor. If plan investments perform poorly and do not equal the pension liability, the plan sponsor is liable for the shortfall.

a) DB plan

b) DC plan

c) DB and DC plans

d) RPP

Answers

1. d) I, II, III, IV

Statement I is correct. However delta is not discussed in the PMT text book.

For Statement I, delta represents how much the option should change in price for a $1.00 change in the stock price. For example, if the stock price falls $1.00, and the put option is expected to rise by $0.50, the delta is –0.50. If the stock price falls $1.00 and the put option price rises to $0.50, twice the amount of puts should be purchased, relative to the stock owned, to properly protect the downside risk.

Statement II is correct.

Statement III is correct.

Statement IV is correct. If puts are used to hedge a long position, and the stock rises, the investor will profit by the increase in the stock price. If the investor sells futures to hedge a long stock position, if the stock goes up, there will be losses on the short futures, which offset the profit on the stock.

2. a) DB Plan

For more Investment Management Techniques questions check out our PMT Quiz Book.

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PMT Exam Prep

Questions

 

Chapter 7: Managing Equity Portfolios

1. Canadian small-cap stocks are generally considered to be those with a market capitalization of less than ?

a) $10 million

b) $50 million

c) $75 million

d) $100 million

 

Chapter 10: Creating New Portfolio Management Mandates

2. The time it takes for the securities regulators to review and approve a mutual fund prospectus is dependent on which factors?

a) time of year

b) cleanness of prospectus

c) exemptions requested by the fund

d) all of the above

 

Answers

 

1. d) $100 million

2. d) All of the above

 

For more  on PMT, check out our Quiz book or register for a seminar.

Portfolio Management Techniques

Questions

 

Chapter 3: The Institutional Investor

1. These pension plans entitlements are typically calculated on the basis of the employee’s salary and the number of years of employment. These are?

a) DC plans

b) DB plans

c) money purchase plans

d) a and c

 

Chapter 8: Managing Fixed-Income Portfolios

2. These are portfolios of mortgages assembled and sold in tranches to increase mortgage capital for lenders and offer secure higher-yielding medium-term investments, comparable to government bonds.

a) ABSs

b) MBSs

c) CDSc

d) CDOs

 

Answers

 

1. b) DB plan

2. b) MBSs