1.
TITLE:
Apply technical knowledge and skill to explain how collective
investment scheme portfolios are classified
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2.
UNIT STANDARD NUMBER:
242612 replaces 14533
3.
LEVEL ON NQF:
5
4.
CREDITS:
2
5.
FIELD:
Sub Field:
Business, Commerce and Management Studies
Finance, Economics and Accounting
6.
PURPOSE:
It is assumed that learners are competent in Communication and Mathematical Literacy
at NQF Level 4.
The qualifying learner is capable of:




7.
Explaining the rationale for the collective investment scheme portfolio
classification system in South Africa.
Explaining how the collective investment scheme portfolio classification system is
constructed.
Explaining the implications of the classification system for an investor.
Applying the classification system to an investment portfolio.
LEARNING ASSUMED TO BE IN PLACE:
It is assumed that learners are competent in Communication at NQF Level 4.
8.
SPECIFIC OUTCOMES AND ASSESSMENT CRITERIA:
Specific Outcome 1:
Explain the rationale for the collective investment
scheme portfolio classification system in South Africa
Assessment Criteria:
1.1
The need for a collective investment scheme portfolio classification system is
explained in relation to the comparison of portfolio mandates.
1.2
Ways in which the classification system protects investors are explained with
reference to transparency of mandates and facilitating investor understanding.
Specific Outcome 2:
Explain how the collective investment scheme
portfolio classification system is constructed
Assessment Criteria:
2.1
The classification system used to simplify the universe of collective investment
scheme portfolios is explained with reference to the rules for different categories.
2.2
The asset allocation in different collective investment scheme portfolios are
analysed in order to classify the portfolios in terms of the South African
classification system.
L5 unit trust class 18 June 2006
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Specific Outcome 3:
Explain the implications of the classification system
for an investor
Assessment Criteria:
3.1
The performance of portfolios in different classes is used to infer the correlation
to the economy and the selection of a portfolio for a specific investor.
3.2
The implications of portfolio classification for portfolio diversification are
explained with reference to risk, return, investor protection, tax and the current
cycle of the underlying assets.
Specific Outcome 4:
Apply the classification system to an investment
portfolio
Assessment Criteria:
9.
4.1
An investor profile is analysed to determine the client’s needs.
4.2
The risk and return identified in a needs analysis are used to suggest appropriate
categories of collective investment scheme portfolios and to substantiate the
suggestion.
ACCREDITATION AND MODERATION:
1. 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.
2. 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.
3. Moderation of assessment will be overseen by the relevant ETQA according to
the moderation guidelines and the agreed ETQA procedures.
10.
11.
RANGE STATEMENT:
The typical scope of this Unit Standard is:
 Asset classes include equity, combined equity, interest bearing and
geographic classes.
NOTES:

CRITICAL CROSS FIELD and DEVELOPMENTAL OUTCOMES:
This Unit Standard supports in particular, the following Critical Cross-field
Outcomes at NQF Level 5:
1. The learner is able to identify and solve problems in which responses show
that responsible decisions using critical thinking have been made in
suggesting appropriate categories for collective investment scheme portfolios
for a selected investor.
2. The learner is able to collect, organise and critically evaluate information
inferring the underlying assets of a collective investment scheme portfolio.
3. The learner is able to communicate effectively in explaining the rationale for
the classification system, how collective investment scheme portfolios are
classified and the implications of the classification system for the investor.
Search words: collective investment, collective investment schemes, collective investment
classificaiton
L5 unit trust class 18 June 2006
2