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

Demonstrate knowledge and understanding of the establishment and ongoing maintenance of a domestic collective investment portfolio 
SAQA US ID UNIT STANDARD TITLE
242609  Demonstrate knowledge and understanding of the establishment and ongoing maintenance of a domestic collective investment portfolio 
ORIGINATOR
SGB Insurance and Investment 
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  6 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Reregistered" 		 2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2026-06-30   2029-06-30  

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 replaces: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
14516  Describe the life cycle of a unit trust  Level 5  Level TBA: Pre-2009 was L5  6   

PURPOSE OF THE UNIT STANDARD 
This Unit Standard develops an understanding of different collective investment portfolios and how each is used to meet the needs of clients. It is intended for learners who are involved in the administration and marketing of unit trusts, product development and giving information to intermediaries and who advise clients on existing portfolios. It is relevant to Intermediaries, Liaison Fund Managers, Portfolio Managers, Financial Consultants, Financial Planners and Actuaries and learners who require Category I licensing under the Financial Advisory and Intermediary Services Act (FAIS).

The qualifying learner is capable of:
  • Explaining why a collective investment manager may decide to establish a new portfolio.
  • Analysing the feasibility of a proposed collective investment portfolio.
  • Explaining the process involved in the establishment of a collective investment portfolio.
  • Explaining the on going maintenance of a collective investment portfolio. 
    		•

    LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners are competent in Communication and Mathematical Literacy at NQF Level 4. 

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is:
  • The assessment criteria relating to the ongoing maintenance of a fund refer to an existing fund.
  • Unit trust funds include retail and institutional funds.
  • Fee structure includes different ways of levying fees for balanced and specialist portfolios, actively and passively managed portfolios, collective investment schemes and funds of funds. 
    		•

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain why a collective investment manager may decide to establish a new portfolio. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    Reasons why a Collective Investment Portfolio Manager may wish to initiate a new collective investment portfolio are explained with reference to a gap in the market, expectations of clients and a market demand. 

    ASSESSMENT CRITERION 2 
    Reasons why a Manager may choose to establish an institutional portfolio rather than a retail portfolio are explained with reference to the target market, fund limit, accessibility, disclosure and process and fee structure. 

    ASSESSMENT CRITERION 3 
    The investment strategies used for institutional portfolios and socially responsible investments are explained with reference to balanced and specialist portfolios. 

    SPECIFIC OUTCOME 2 
    Analyse the feasibility of a proposed collective investment portfolio. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The capital adequacy requirements of the Manager are explained with reference to statutory requirements for a specific portfolio. 

    ASSESSMENT CRITERION 2 
    The competitiveness of a proposed collective investment portfolio is investigated in terms of the proposed fee structure, minimum investment and the past performance of the portfolio manager. 

    ASSESSMENT CRITERION 3 
    A cash flow forecast and underlying assets of a proposed collective investment portfolio are analysed to determine the financial feasibility and growth potential of a proposed portfolio. 

    ASSESSMENT CRITERION 4 
    The capacity of the organisation's infrastructure to maintain a proposed portfolio 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 collective investment portfolio. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The roles of the Association of Collective Investments (ACI) 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 and the requirements of the Financial Advisory and Intermediary Services Act (FAIS) and the Finance Intelligence Centre Act (FICA). 

    ASSESSMENT CRITERION 2 
    The parties involved 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, price distribution networks and the appointment of custodians. 

    SPECIFIC OUTCOME 4 
    Explain the ongoing maintenance of a collective investment portfolio. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 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 
    The factors that influence a fund's performance and the continuity of a fund are identified and the performance of a fund over a period of one, three and five years is assessed relative to benchmarks or selected indices. 

    ASSESSMENT CRITERION 3 
    The actions portfolio managers could take to rectify under performance of a portfolio are outlined with reference to the portfolio mandate. 

    ASSESSMENT CRITERION 4 
    The structure of a portfolio is analysed to determine whether it is appropriate in terms of the current economic situation and future expectations. 

    ASSESSMENT CRITERION 5 
    Reports required by the Association of Collective Investments (ACI) and the Financial services Board (FSB) are explained and an indication is given of how these are administered and managed to ensure compliance. 

    ASSESSMENT CRITERION 6 
    The role of Trustees of a collective investment portfolio is explained with reference to the custodial function. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • Anyone assessing a candidate against this Unit Standard must be registered as an assessor with the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this Unit Standard must be accredited as a provider through the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines and the agreed ETQA procedures. 
    		•

    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 collective investment portfolio. 

    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 portfolio. 

    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 portfolio and steps managers can take to rectify underperformance. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    This unit standard replaces unit standard 14516, 'Describe the life cycle of a unit trust', Level 5, 6 credits.

    Search words: Collective investment, unit trust, collective investment scheme; collective investment portfolio. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  66611   National Certificate: Wealth Management  Level 5  NQF Level 05  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  As per Learning Programmes recorded against this Qual 


    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.
     
    NONE 


    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.