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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: 

Apply technical knowledge and skill to explain how collective investment portfolios are classified and the implications of the classification for an investor 
SAQA US ID UNIT STANDARD TITLE
14533  Apply technical knowledge and skill to explain how collective investment portfolios are classified and the implications of the classification for an investor 
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
242612  Apply technical knowledge and skill to explain how collective investment scheme portfolios are classified  Level 5  Level TBA: Pre-2009 was L5   

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for learners who are product developers, wealth managers, financial planners and advisors.

The qualifying learner is capable of:
  • Explaining the rationale for the unit trust classification system in South Africa.
  • Explaining how the unit trust classification system is constructed.
  • Explaining the implications of the classification system for an investor.
  • Applying the classification system to an investment portfolio. 

  • 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 
    Asset classes include equity, combined equity, interest bearing and geographic classes. 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the rationale for the unit trust classification system in South Africa. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The need for a unit trust classification system is explained in relation to the comparison of fund mandates. 

    ASSESSMENT CRITERION 2 
    2. Ways in which the classification system protects investors are explained with reference to transparency of mandates and facilitating investor understanding. 

    SPECIFIC OUTCOME 2 
    Explain how the unit trust classification system is constructed. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The classification system used to simplify the universe of unit trusts is explained with examples. 

    ASSESSMENT CRITERION 2 
    2. The stipulated asset allocation mandates of five unit trust categories are illustrated graphically. 

    ASSESSMENT CRITERION 3 
    3. Five unit trust portfolios are analysed in order to classify the fund in terms of the South African classification system. 

    SPECIFIC OUTCOME 3 
    Explain the implications of the classification system for an investor. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The risk and return in each category are analysed and an indication is given of what risk and return indicate about the category allocation. 

    ASSESSMENT CRITERION 2 
    2. The performance of differently classified funds is used to infer the correlation to the economy and the selection of a fund. 

    ASSESSMENT CRITERION 3 
    3. The classification of a fund is used to infer the risk, return and underlying investments of a fund. 

    ASSESSMENT CRITERION 4 
    4. The implications of fund classification for portfolio diversification are explained with reference to risk, return, investor protection, tax and the current cycle of the underlying assets. 

    SPECIFIC OUTCOME 4 
    Apply the classification system to an investment portfolio. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. An investor profile is analysed to determine the client's needs. 

    ASSESSMENT CRITERION 2 
    2. The risk and return identified in a needs analysis are used to suggest appropriate categories of unit trust investment and to substantiate the suggestion. 


    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 IDENTIFYING 
    The learner is able to identify and solve problems in which responses show that responsible decisions using critical thinking have been made in suggesting appropriate categories for unit trust investment for a selected investor. 

    UNIT STANDARD CCFO COLLECTING 
    The learner is able to collect, organise and critically evaluate information inferring the underlying assets of a fund. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively in explaining the rationale for the classification system, how unit trusts are classified and the implications of the classification system for the investor. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    UNIT STANDARD NOTES 
    This unit standard has been replaced by unit standard 242612, which is "Apply technical knowledge and skill to explain how collective investment scheme portfolios are classified", Level 5, 2 credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  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.