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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
243130  Explain the basic principles of asset management that apply to financial markets and insurance 
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 4  NQF Level 04  4 
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
113917  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 who require a basic introduction to investments and asset management. It will add value to Healthcare Benefits Administrators, Trainee Financial Planners, Intermediaries, Product Developers, Coordinators of Medical Schemes, Financial Call Centre Agents and Trustees and Principal Officers of medical schemes and retirement funds. It complies with the current legislated practices in giving financial advice.

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

    LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners are competent in Communication and Mathematical 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 include, but are not limited to active or passive, quants, and 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.
  • Investment style includes, but is not limited to active, passive, value and growth.
  • Mandates include, but are not limited to socially responsible, environmental, green, ethical, Sharia compliant and community development.
  • Analysis of commentaries, etc., includes, but is not limited to 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. 
    		•

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain concepts related to financial markets. 

    ASSESSMENT CRITERIA     

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

    ASSESSMENT CRITERION 2 
    The concepts of risk and return are explained with reference to term. 

    ASSESSMENT CRITERION 3 
    The concept of investment style is explained with examples. 

    ASSESSMENT CRITERION 4 
    The concept of a mandate is explained with reference to how the mandate impacts on investment portfolios. 

    ASSESSMENT CRITERION 5 
    The concepts of fundamental versus technical research/analysis are explained with reference to how the type of research affects the investment process. 

    SPECIFIC OUTCOME 2 
    Distinguish between different asset management companies. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The philosophy and style of a selected asset management company is investigated and an indication is given of how philosophy and style impact on performance and risk. 

    ASSESSMENT CRITERION 2 
    Marketing material from a selected asset management company is analysed and to ascertain whether this reflects the asset management company's philosophy and style. 

    ASSESSMENT CRITERION 3 
    Commentaries, performance surveys and marketing material from a selected asset management company are analysed and an opinion is expressed as to whether the provider is stable and reputable. 

    ASSESSMENT CRITERION 4 
    The concepts of fixed and performance fees are explained with examples. 

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

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    An asset management company's decision making policy is investigated and an indication is gives of whether it is a consensus or individual driven process and the implications of decision making style for investment decisions. 

    ASSESSMENT CRITERION 2 
    The investment process used by a selected team is explained in terms of its focus. 

    ASSESSMENT CRITERION 3 
    The concept of asset allocation is explained with reference to defined objectives and strategic asset allocation. 

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

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 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 
    Legislation that impacts on asset management is identified and an indication is given of the consequences of non-compliance. 

    ASSESSMENT CRITERION 3 
    The impact of excessive trading on a portfolio is explained with reference to costs incurred, the investment policy and effects on performance. 


    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 
    Learners are capable of collecting, organising and critically evaluating information in investigating the philosophy and style of an asset management company. 

    UNIT STANDARD CCFO COMMUNICATING 
    Learners are capable of communicating effectively in explaining the effects of excessive trading 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 asset management. 

    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 113917, "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  66613   Further Education and Training Certificate: Wealth Management  Level 4  NQF Level 04  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.