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: 

Advise Retirement Fund Trustees and Corporates on the structure of a Fund's investments 
SAQA US ID UNIT STANDARD TITLE
242578  Advise Retirement Fund Trustees and Corporates on the structure of a Fund's investments 
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 is intended for learners who advise Retirement funds on the investment of funds. It will be useful for Investment Advisors, learners in Group Benefits who want to understand the investment side of Retirement Funds and intermediaries who advise Trustees and Corporates.

The qualifying learner is capable of:
  • Applying knowledge of legislation and governance to the investments of a retirement fund.
  • Analysing the investment objectives of a retirement fund.
  • Constructing a portfolio for a retirement fund.
  • Explaining how investment advisors select and evaluate Fund Managers. 

  • 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:
  • Issues of legislation and governance include, but are not limited to, the Financial Services Charter and currently accepted guidelines for governance.
  • Full range of traditional, balanced and specialist mandates, alternative investments, socially responsible investments, sharia and targeted development investments.
  • Defined benefit and defined contribution funds: all members' potential needs including age, risk profile, time horizon and financial sophistication.
  • Evaluation of the Fund manager includes qualitative and quantitative assessment.
  • Benchmarks include peer, market and absolute benchmarks. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Apply knowledge of legislation and governance to the investments of a retirement fund. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Knowledge of legislation is applied to advise clients on an investment strategy that is appropriate and legally compliant to the membership. 

    ASSESSMENT CRITERION 2 
    Changes in legislation that have implications for retirement funds are analysed to determine the impact on the investments of a Fund. 

    ASSESSMENT CRITERION 3 
    The roles and responsibilities of role players on committees and sub-committees are analysed in terms of accountability. 

    ASSESSMENT CRITERION 4 
    Legal contracts, mandates and other agreements are analysed to ensure that appropriate governance is in place. 

    SPECIFIC OUTCOME 2 
    Analyse the investment objectives of a retirement fund. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The investment objectives of a retirement fund are analysed in terms of risk profile of the members and the perception of the risk appetite of members of defined contribution funds. 

    ASSESSMENT CRITERION 2 
    A continuum of investment strategies in a selected retirement fund is analysed with reference to age bands, volatility, risk, term, time horizon and the financial sophistication of the members. 

    ASSESSMENT CRITERION 3 
    Conditions under which a retirement fund may offer members a choice of investment strategy are explained with reference to the consequences of agreeing to such a choice. 

    ASSESSMENT CRITERION 4 
    An asset liability model is explained as a statistical tool in a fund. 

    SPECIFIC OUTCOME 3 
    Construct a portfolio for a retirement fund. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The characteristics of the asset classes are analysed in terms of their relationship with other asset classes, risk and return. 

    ASSESSMENT CRITERION 2 
    Funds available for investment are allocated to different asset classes to meet the objectives of a specific fund. 

    ASSESSMENT CRITERION 3 
    Alternative investments are identified that may enhance the achievement of the Fund's objectives at a lower risk. 

    ASSESSMENT CRITERION 4 
    Theories of risk diversification are discussed and applied to a selected portfolio. 

    ASSESSMENT CRITERION 5 
    A benchmark is constructed for a specific fund. 

    ASSESSMENT CRITERION 6 
    The performance of a fund is evaluated against the objectives of the Fund and the selected benchmarks. 

    ASSESSMENT CRITERION 7 
    Proposals for a portfolio are presented and discussed with the Trustees of a retirement fund. 

    SPECIFIC OUTCOME 4 
    Explain how investment advisors select and evaluate a Fund Manager. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The investment philosophies, processes, people and performance of different Fund Managers are compared in order to select a fund manager. 

    ASSESSMENT CRITERION 2 
    Asset managers are selected and the selection motivated for a specific retirement fund. 

    ASSESSMENT CRITERION 3 
    Individual management and multi-management are compared and explained with reference to circumstances when an investment advisor would recommend a multi-manager. 


    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 thinking have been made in constructing an investment portfolio for a retirement fund. 

    UNIT STANDARD CCFO ORGANISING 
    The learner is able to organise and manage him/herself and his/her activities responsibly and effectively in benchmarking the performance of a fund. 

    UNIT STANDARD CCFO COLLECTING 
    The learner is able to collect, organise and critically evaluate information in order to propose an investment portfolio. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively using visual, mathematics and language skills in explaining the proposed portfolio and choice of fund manager. 

    UNIT STANDARD CCFO SCIENCE 
    The learner is able to use science and technology effectively and critically in manipulating information using a computer. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is able to demonstrate an understanding of the world as a set of related systems by analysing the relationship between the asset classes. 

    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: retirement fund, trustees, investments, retirement fund 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.