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 and insight to advise on the composition of a financial portfolio 
SAQA US ID UNIT STANDARD TITLE
242619  Apply knowledge and insight to advise on the composition of a financial 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 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 work in product development, marketing, product supplies, management or Intermediaries, Financial Planners, Broker Consultants and Bankers who give financial advice or engage in wealth management or financial planning.

The qualifying learner is capable of:
  • Demonstrating knowledge and insight into the current investment environment.
  • Applying knowledge of asset classes and investment instruments to analyse the risk/return characteristics and performance of an investment portfolio.
  • Revaluing and rebalancing an existing financial 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 and are working towards or have a Level 5 Financial Services Qualification or equivalent. 

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard includes but is not limited to:
  • Investment risk includes but is not limited to interest risk, fraud, interest rates, market volatility, economic cycles, inflation, consumer confidence, political instability, legal, taxation, investor and advisor knowledge of the market.
  • Historical events include political instability.
  • Different investment vehicles include at least endowment, sinking fund, collective investments, shares, direct property, cash, annuities, bonds, financial instruments, alternative investments, money market, cash or debentures. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Demonstrate knowledge and insight into the current investment environment. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The concept of investment risk is explained with examples. 

    ASSESSMENT CRITERION 2 
    The effect of the global economy on South African economic cycles is explained with current examples. 

    ASSESSMENT CRITERION 3 
    Key indicators that are used to evaluate the current investment environment are identified and explained in terms of the unit of measurement used for each and their potential impact on the present investment environment. 

    ASSESSMENT CRITERION 4 
    The way in which subjective information and sentiment impact on investment markets and investment risk is explained with reference to historical events. 

    ASSESSMENT CRITERION 5 
    The impact of government policy on the investment environment is analysed and interpreted using historical and current examples. 

    SPECIFIC OUTCOME 2 
    Apply knowledge of asset classes and investment instruments to analyse the risk/return characteristics and performance of an investment portfolio. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Two risk evaluation techniques are explained and an indication is given of when each is appropriate. 

    ASSESSMENT CRITERION 2 
    The risk/return characteristics of a portfolio is analysed in terms of potential loss of capital, compliance with a fund mandate, potential for growth, and return on investment. 

    ASSESSMENT CRITERION 3 
    The performance of an investment portfolio is analysed with reference to the fund mandate and similar portfolios and benchmarks. 

    SPECIFIC OUTCOME 3 
    Revalue and rebalance an existing financial portfolio. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Knowledge of market trends is applied to design an appropriate asset mix with reference to a strategic/house view, client preferences and the current economic cycle. 

    ASSESSMENT CRITERION 2 
    The financial instruments in a portfolio are analysed with reference to liquidity, tax implications, risk, return and term. 

    ASSESSMENT CRITERION 3 
    The underlying asset mix in a portfolio is analysed and compared to the client's risk profile and objectives. 

    ASSESSMENT CRITERION 4 
    Recommendations are made to rebalance a portfolio in the light of current economic trends and client objectives. 

    ASSESSMENT CRITERION 5 
    The implications of managing a portfolio on a discretionary basis are discussed from the point of view of the client and the intermediary. 


    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 making an investment recommendation. 

    UNIT STANDARD CCFO COLLECTING 
    The learner is able to collect, organise and critically evaluate information in order to explain how the investment environment works and in applying economic theory. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively using visual, mathematics and language skills in the modes of oral and/or written presentations in explaining asset and investment risk and the key indicators that impact on the investment environment. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is able to demonstrate an understanding of the world as a set of related systems by explaining economic cycles and the way in which subjective information and government policy impact on investment markets. 

    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: Investment instruments; long term risk; investment risk; investment portfolio; investment; asset classes. 

    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.