SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: 

Describe the life cycle of a unit trust 
SAQA US ID UNIT STANDARD TITLE
14516  Describe the life cycle of a unit trust 
ORIGINATOR
SGB Financial Services 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 5  Level TBA: Pre-2009 was L5 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Registered" 
2003-08-13  2006-08-13  SAQA 0249/03 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2007-08-13   2010-08-13  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard is replaced by: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
242609  Demonstrate knowledge and understanding of the establishment and ongoing maintenance of a domestic collective investment portfolio  Level 5  Level TBA: Pre-2009 was L5   

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended FOR learners who are involved in the administration and marketing of unit trusts, product development and giving information to intermediaries. It is relevant to intermediaries, liaison fund managers, portfolio managers, financial consultants and actuaries.

The qualifying learner is capable of:
  • Explaining why a Management Company may decide to establish a new fund.
  • Analysing the feasibility of a proposed unit trust fund.
  • Explaining the process involved in the establishment of a unit trust fund.
  • Explaining the on going maintenance of a unit trust fund. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    There is open access to this Unit Standard. Learners should be competent in Communication and Mathematical and Financial Literacy at NQF Level 4. 

    UNIT STANDARD RANGE 
    The assessment criteria relating to the ongoing maintenance of a fund refer to an existing fund. 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain why a Management Company may decide to establish a new fund. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Reasons why a Management Company may wish to initiate a new unit trust fund are explained with reference to a gap in the market, expectations of clients and a market demand. 

    ASSESSMENT CRITERION 2 
    2. Reasons why a Management Company may choose to establish a retail fund are explained with reference to the target market, fund limit, accessibility, disclosure and process and fee structure. 

    ASSESSMENT CRITERION 3 
    3. Reasons why a Management Company may choose to establish an institutional fund are explained with reference to the target market, fund limit, accessibility, disclosure and process and fee structure. 

    SPECIFIC OUTCOME 2 
    Analyse the feasibility of a proposed unit trust fund. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The competitiveness of the proposed unit trust is investigated in terms of the proposed fee structure, fund minimum and the past performance of the portfolio manager. 

    ASSESSMENT CRITERION 2 
    2. A cash flow forecast is analysed to determine the financial feasibility of a proposed fund. 

    ASSESSMENT CRITERION 3 
    3. The growth potential of the underlying investments is analysed using key indicators for a sectoral spread. 

    ASSESSMENT CRITERION 4 
    4. The capacity of the organisation's infrastructure to maintain a proposed fund is investigated with reference to call center capacity, administrative systems, marketing and support structures, distribution channels and regulatory and capital requirements. 

    SPECIFIC OUTCOME 3 
    Explain the process involved in the establishment of a unit trust fund. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Documents required to establish a fund are identified and an indication is given of the supplementary documents that are required to ensure compliance. 

    ASSESSMENT CRITERION 2 
    2. The roles of the Association of Unit Trusts (AUT) and the Financial Services Board (FSB) in the approval and registration process are explained and an indication is given of the documentation required by each. 

    ASSESSMENT CRITERION 3 
    3. The capital adequacy requirements of the Management Committee are explained with reference to statutory requirements for a specific fund. 

    ASSESSMENT CRITERION 4 
    4. The role of the project manager in the successful implementation of the launch of the unit trust fund is explained with reference to marketing, systems, marketing support, administrative processes, training, distribution and the appointment of custodians. 

    ASSESSMENT CRITERION 5 
    5. Price distribution networks acknowledged by the industry are identified and a decision is made as to which networks should be informed of the launch of a specific fund. 

    SPECIFIC OUTCOME 4 
    Explain the ongoing maintenance of a unit trust fund. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Techniques used to analyse the performance of a fund are explained and an indication is given of whether the technique includes a risk adjustment. 

    ASSESSMENT CRITERION 2 
    2. The factors that influence a fund's performance are identified with examples. 

    ASSESSMENT CRITERION 3 
    3. Factors that influence the continuity of a fund are identified with examples. 

    ASSESSMENT CRITERION 4 
    4. The performance of a fund over a period of one, three and five years is assessed relative to benchmarks or selected indices and an indication is given of the relative performance of a selected fund. 

    ASSESSMENT CRITERION 5 
    5. The actions fund managers could take to rectify under performance of a fund are outlined with reference to the fund's mandate and two case studies. 

    ASSESSMENT CRITERION 6 
    6. Reports required by AUT and the FSB are explained and an indication is given of how these are administered and managed to ensure compliance. 

    ASSESSMENT CRITERION 7 
    7. The role of trustees of a unit trust fund is explained with reference to the custodial function. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    This Unit Standard will be internally assessed by the provider and moderated by a moderator registered by INSQA or a relevant accredited ETQA. The mechanisms and requirements for moderation are contained in the document obtainable from INSQA (INSQA framework for assessment and moderation). 

    UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    N/A 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO COLLECTING 
    The learner is able to collect, organise and critically evaluate information in investigating the feasibility of a proposed unit trust fund. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively in explaining the concepts contained in the Unit Standard and assessing the performance of a fund. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is able to demonstrate an understanding of the world as a set of related systems in explaining the factors that influence the performance of a fund and steps managers can take to rectify underperformance. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    UNIT STANDARD NOTES 
    This unit standard has been replaced by unit standard 242609, which is 'Demonstrate knowledge and understanding of the establishment and ongoing maintenance of a domestic collective investment portfolio', Level 5, 6 credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  23973   National Certificate: Financial Services: Wealth Management  Level 5  Level TBA: Pre-2009 was L5  Passed the End Date -
    Status was "Registered" 
    2006-08-13  Was INSETA until Last Date for Achievement 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. Sanlam Life Insurance Ltd 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.