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: 

Apply knowledge of investment to hedge funds 
SAQA US ID UNIT STANDARD TITLE
242577  Apply knowledge of investment to hedge funds 
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 6  Level TBA: Pre-2009 was L6 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

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 does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This Unit Standard introduces hedge funds as a way of diversifying risk in an investment portfolio and as an alternative to the conventional asset classes. It will be useful for asset Managers, Financial Planners, Investment Managers, Retirement Fund Trustees, Individual and Corporate Clients and Business Entities.

The qualifying learner is capable of:
  • Explaining the use of hedge funds as an investment instrument.
  • Analysing different strategies used in creating a hedge fund.
  • Presenting a case for hedge funds in an investment portfolio.
  • Researching the role of hedge funds in the financial services industry.
  • Researching the characteristics of a good hedge fund. 

  • 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 and are working towards or have a Level 5 Financial Services Qualification or equivalent. 

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is:
  • Clients may be individuals or business entities. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the use of hedge funds as an investment instrument. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The concept of a hedge fund is explained with examples. 

    ASSESSMENT CRITERION 2 
    Reasons why hedge funds make money are explained with reference to market efficiency. 

    SPECIFIC OUTCOME 2 
    Analyse different strategies used in creating a hedge fund. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The concept of leverage is explained in terms of market exposure. 

    ASSESSMENT CRITERION 2 
    The concept of script lending is explained with examples. 

    ASSESSMENT CRITERION 3 
    The terminology going long going short is explained in the context of hedge funds. 

    ASSESSMENT CRITERION 4 
    Directional and non-directional strategies are contrasted with reference to the fund manager's mandate. 

    ASSESSMENT CRITERION 5 
    Different hedge fund strategies are identified and explained with examples. 

    SPECIFIC OUTCOME 3 
    Present a case for hedge funds in an investment portfolio. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Reasons why a specific client should invest in a hedge fund are explained with reference to a current or proposed portfolio. 

    ASSESSMENT CRITERION 2 
    The risk profile appropriate for investors in hedge funds is investigated in relation to an investment portfolio. 

    ASSESSMENT CRITERION 3 
    The application of tax in different hedge fund structures is explained with reference to the effect on an investor profile. 

    SPECIFIC OUTCOME 4 
    Research the role of hedge funds in the financial services industry. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The role of hedge funds in the financial services industry is researched in a global and local context. 

    ASSESSMENT CRITERION 2 
    The regulatory environment that governs hedge funds in South Africa is explained with reference to legislation and the role of the Financial Services Board. 

    SPECIFIC OUTCOME 5 
    Research the characteristics of a good hedge funds. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The characteristics of a successful hedge fund are researched with reference to risk management, regulation, track record and manager credibility. 

    ASSESSMENT CRITERION 2 
    Reasons why a specific hedge fund failed are analysed to identify potential pitfalls. 

    ASSESSMENT CRITERION 3 
    The advantages and disadvantages of hedge funds in an investment portfolio are explained with reference to risk and cost. 


    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 IDENTIFYING 
    The learner is able to identify and solve problems in which responses show that responsible decisions using critical and creative thinking have been made in presenting a case for hedge funds in an investment portfolio. 

    UNIT STANDARD CCFO COLLECTING 
    The learner is able to collect, organise and critically evaluate information in researching the role of hedge funds in the financial services industry and the characteristics of a good hedge fund. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate presenting a case for hedge funds in an investment portfolio. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is able to see the world as a set of related systems explaining concepts such as going long going short. 

    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 
    Search words: Hedge funds, alternative investments. 

    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  Level TBA: Pre-2009 was L5  Reregistered  2021-06-30  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.
     
    1. AFRICAN UNION SKILLS DEVELOPMENT PTY LTD 
    2. ALCARI 233 CC T/A ALCARI (Eversdal)(TP) 
    3. Boland Public FET College - Central Office 
    4. CKP Development Agency (Pty) Ltd. 
    5. COLLEGE OF CAPE TOWN 
    6. College of Cape Town - Central Office 
    7. False Bay College 
    8. Intec College 
    9. Masifunde Training Centre (Pty) Ltd 
    10. North Link College 
    11. Old Mutual Life Assurance Company South Africa 
    12. Ray Strodl Consulting (Pty) Ltd 
    13. Ripple Effect 4 (Pty) Ltd 
    14. Sanlam Life Insurance Ltd 
    15. Sanlam Life Insurance Ltd. 
    16. South Cape College 
    17. South Cape Public FET College - Central Office 
    18. The Institute of Health Risk Managers (Pty) Ltd 
    19. Umfolozi FET College - Central Office 
    20. Universal Healthcare Services (Pty) 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.