A minimum score of 70% on the AIF® examination is required to attain the AIF® designation. The proctored exam is a timed, closed-book assessment of the Prudent Practices and methodology, as well as their proper application. It consists of eighty (80) multiple choice questions with a time-limit of one hundred twenty (120) minutes. Re-testing is governed by the examination retake policy.
AIF® Examination Blueprint
The exam will include 80 items, of which only 70 will count toward the candidate score. All items will be multiple-choice single-response questions. Candidates will have up to two hours to complete the exam. The outline below shows the number of scored items that will be included in each of the four content domains.
- Organize. Fiduciary Roles and Responsibilities Are Clearly Documented and Defined (15 to 19 items)
1.1. Demonstrate an awareness of fiduciary duties and responsibilities.
1.2. Provide investments and investment services consistent with governing documents.
1.3. Document the roles and responsibilities of all involved parties, whether fiduciaries or non-fiduciaries.
1.4. Identify, then avoid or manage, material conflicts of interest in a manner consistent with the duty of loyalty.
1.5. Execute written agreements that contain no provisions conflicting with fiduciary obligations.
1.6. Prudently protect sensitive personal identifying information and assets of clients from theft, embezzlement, and business disruption risks.
- Formalize. The Investment Policy is Consistent with the Portfolio’s Objectives and Risk and Return Assumptions (17 to 21 items)
2.1. Identify an investment time horizon for each investment objective of the client.
2.2. Identify an appropriate risk level for the portfolio.
2.3. Evaluate the distribution of projected portfolio returns in the context of the client’s risk and return objectives.
2.4. Ensure that selected asset classes are consistent with the portfolio’s time horizon and risk and return objectives.
2.5. Ensure that selected asset classes are consistent with implementation and monitoring constraints.
2.6. Confirm that the investment policy statement contains sufficient detail to define, implement, and monitor the portfolio’s investment strategy.
2.7. Apply environmental, social, and governance (ESG) factors to investment due diligence in conformity to governing documents and the fiduciary obligations of investment decision-makers.
- Implement. Decisions Regarding Investments and Services are Implemented in Accordance with the Duties of Loyalty and Care (15 to 19 items)
3.1. Follow a prudent due diligence process to select each service provider.
3.2. Implement statutory or regulatory investment safe harbors in compliance with the applicable provisions.
3.3. Make and document decisions regarding investment strategies and types of investments in accordance with fiduciary obligations.
- Monitor. The Portfolio is Monitored Regularly to Ensure Consistency with Benchmarks and Overall Objectives (15 to 19 items)
4.1 Conduct periodic reviews of investment performance against appropriate market and peer group benchmarks and overall portfolio objectives.
4.2. Conduct periodic reviews of qualitative and/or organizational changes of investment managers and other service providers.
4.3. Conduct periodic reviews of policies for trading practices and proxy voting.
4.4. Conduct periodic reviews to ensure that investment-related fees, compensation, and expenses are fair and reasonable for the services provided.
4.5. Conduct periodic reviews of the organization’s effectiveness in meeting its fiduciary responsibilities.