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

Explain the basic principles of asset management that apply to financial markets and insurance 
SAQA US ID UNIT STANDARD TITLE
113917  Explain the basic principles of asset management that apply to financial markets and insurance 
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 4  NQF Level 04  4 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Registered" 		 2004-02-11  2007-02-11  SAQA 1852/04 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2008-02-11   2011-02-11  

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
243130  Explain the basic principles of asset management that apply to financial markets and insurance  Level 4  NQF Level 04  4   

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for learners in a financial services environment. It is intended for brokers, broker consultants, agents, intermediaries, wealth managers and financial planners.

The qualifying learner is capable of:
  • Explaining concepts related to financial markets.
  • Distinguishing between different investment portfolio management companies.
  • Explaining the key drivers in the performance of portfolio management.
  • Explaining the risks associated with investment portfolio management.
  • Interpreting information from investment portfolio management companies. 
    		•

    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, Mathematical Literacy and Financial Literacy at Level 3. 

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is:
  • Marketing material includes, but is not limited to published brochures, websites, CD-Roms, and presentations.
  • Philosophy and style may be active or passive, quants, GARP, value and growth.
  • The quality of an investment team is assessed according to age, experience, qualifications, industry experience, company specific experience, performance record and stability.
  • Focus includes benchmark, peer or contrarian. 
    		•

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain concepts related to financial markets. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The concept of asset classes is explained with examples. 

    ASSESSMENT CRITERION 2 
    2. The concepts of sectors and indices are explained and an indication is given of how they relate to investment portfolios. 

    ASSESSMENT CRITERION 3 
    3. The concept of capitalisation sectors is explained with reference to risk and the Rand exchange rate. 

    ASSESSMENT CRITERION 4 
    4. The concepts of risk and return are explained with reference to term. 

    ASSESSMENT CRITERION 5 
    5. The concept of investment style is explained with examples. 

    ASSESSMENT CRITERION 6 
    6. The concept of performance attribution is explained with reference to risk and return. 

    ASSESSMENT CRITERION 7 
    7. The concepts of benchmarks and indices are explained and an indication is given of how they relate to investment portfolios. 

    ASSESSMENT CRITERION 8 
    8. The concept of a mandate is explained with reference to how the mandate impacts on investment portfolios. 

    ASSESSMENT CRITERION 9 
    9. The concepts of fundamental versus technical research/analysis are explained with reference to how the type of research affects the investment process. 

    ASSESSMENT CRITERION 10 
    10. The concept of investment portfolios is explained and an indication is given of why different investment portfolios follow different investment policies. 

    SPECIFIC OUTCOME 2 
    Distinguish between different investment portfolio management companies. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The philosophy and style of investment portfolio management companies is investigated and an indication is given of how philosophy and style impact on performance and risk. 

    ASSESSMENT CRITERION 2 
    2. Marketing material from a selected investment portfolio management company are analysed and an indication is given of whether this reflects the investment portfolio management company`s philosophy and style. 

    ASSESSMENT CRITERION 3 
    3. Commentaries, performance surveys and marketing material from a selected investment portfolio management company are analysed in terms of assets under management, holding structure, black employment equity alignment, length of time in operation, stability of routine, performance history, corporate governance, risk levels of the investment team and sustainability and an indication is given of whether the provider is stable and reputable. 

    SPECIFIC OUTCOME 3 
    Explain the key drivers in performance and portfolio management companies. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The importance of the decision making process in portfolio management is explained in terms of bottom up or top down decision making and the implications for investment decisions. 

    ASSESSMENT CRITERION 2 
    2. An investment portfolio management company`s decision making policy is investigated and an indication is gives of whether it is a consensus or individual driven process. 

    ASSESSMENT CRITERION 3 
    3. The composition of an investment team is investigated and a judgment is made and supported as to the quality of the team. 

    ASSESSMENT CRITERION 4 
    4. The investment process used by a selected team is analysed in terms of its focus. 

    ASSESSMENT CRITERION 5 
    5. The concept of asset allocation is explained with reference to strategic and tactical asset allocation. 

    SPECIFIC OUTCOME 4 
    Explain the risks associated with investment portfolio management. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. People related asset management risks are identified and an indication is given of systems that can be implemented to mitigate against people related risk. 

    ASSESSMENT CRITERION 2 
    2. Compliance risks in asset management are identified and an indication is given of how compliance management affects the quality of a project. 

    ASSESSMENT CRITERION 3 
    3. Asset management risks associated with the business process are identified and an indication is given of measures that can be taken to mitigate against risks associated with business processes. 

    ASSESSMENT CRITERION 4 
    4. The impact of excessive trading on a portfolio is explained with reference to costs incurred, the investment policy and effects on performance. 

    SPECIFIC OUTCOME 5 
    Interpret information from investment portfolio management companies. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. Information from an investment portfolio management company is used to recommend a new portfolio or an action on an existing portfolio. 

    ASSESSMENT CRITERION 2 
    2. Reasons for actions on a portfolio are explained and an indication is given of whether the actions are appropriate. 

    ASSESSMENT CRITERION 3 
    3. The effects of political, economic, financial and socio-economic events on a portfolio are explained and a recommendation is made based on a client`s needs and risk profile. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    Accreditation for this Unit Standard shall be obtained from the relevant Education and Training Quality Assurance Body, through summative and formative assessment by a registered assessor.
  • Assessors must be registered as an Assessor with the relevant ETQA.
  • Moderators must be registered as assessors with the relevant ETQA, or with an ETQA that has a Memorandum of Agreement with the relevant ETQA.
  • Training providers must be accredited by the relevant ETQA.

    Moderation should include both internal and external moderation where applicable. 
    		•

    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 
    Learners are capable of identifying and solving problems and making decisions is evaluating whether a provider is stable and reputable and recommending an action on a portfolio. 

    UNIT STANDARD CCFO COMMUNICATING 
    Learners are capable of communicating effectively in explaining the effects of events on a portfolio. 

    UNIT STANDARD CCFO DEMONSTRATING 
    Learners are capable of demonstrating an understanding of the world as a set of related systems by, explaining the risks associated with portfolio management, interpreting the effects of events on a portfolio and recommending a financial solution. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    UNIT STANDARD NOTES 
    This unit standard has been replaced by unit standard 243130, which is "Explain the basic principles of asset management that apply to financial markets and insurance", level 4, 4 credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  49649   Further Education and Training Certificate: Long-term Insurance  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  INSETA 
    Elective  48640   National Certificate: Financial Services Management  Level 4  Level TBA: Pre-2009 was L4  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  INSETA 
    Elective  48493   National Certificate: Financial Services: Wealth Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered"     		 2007-02-11  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.
     
    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.