1.TITLE:Apply technical knowledge and insight into the management of collective investment portfolios

______

2.UNIT STANDARD NUMBER:242607 replaces14511

3.LEVEL ON NQF:5

4.CREDITS:3

5.FIELD:Business, Commerce and Management Studies

Sub Field:Finance, Economics and Accounting

6.PURPOSE:

This Unit Standard develops an understanding of collective investment scheme portfolios and is useful for learners who require Category I licensing under the Financial Advisory and Intermediary Services Act (FAIS). It is intended learners who are Marketing Managers, Sales People, Marketing Consultants of Collective Investment Scheme Managers, Product Developers, Wealth Managers, Broker Consultants, Financial Planners, Intermediaries and Advisors.

The qualifying learner is capable of:

  • Demonstrating knowledge and understanding the financial markets and instruments used in portfolios of collective investment schemes.
  • Explaining the techniques and practices used by portfolio/fund managers.
  • Evaluating the effectiveness of the management of a portfolio.
  • Describing the regulatory and contractual parameters of investment management.

7.LEARNING ASSUMED TO BE IN PLACE:

It is assumed that learners are competent in Communication and Mathematical Literacy at NQF Level 4.

8.SPECIFIC OUTCOMES AND ASSESSMENT CRITERIA:

Specific Outcome 1:Demonstrate knowledge and understanding of the financial markets and instruments used in portfolios of collective investment schemes

Assessment Criteria:

1.1The financial markets used by collective investment schemes are named and an indication is given of the types of financial instruments available from each.

1.2Different financial instruments are explained in terms of expected risk and return.

Specific Outcome 2:Explain the techniques and practices used by portfolio/fund managers

Assessment Criteria:

2.1A risk analysis for a selected portfolio is interpreted and an indication is given of the risk level of the portfolio.

2.2A report on the attribution analysis of a portfolio is analysed to determine the strength and weaknesses of a specific portfolio in terms of selecting asset allocation and stock selection.

2.3The approach used by a portfolio/fund manager is identified and an indication is given of a specific manager’s expertise, investment strategy and techniques for stock selection.

2.4The concept of liquidity in a portfolio is explained and an indication is given of the implications of liquidity or illiquid assets.

2.5The manner in which taxation is applied is explained with reference to tax liabilities.

Specific Outcome 3:Evaluate the effectiveness of the management of a portfolio

Assessment Criteria:

3.1A portfolio is evaluated against peer portfolios and whether it meets its objectives.

3.2The performance of a portfolioanalysed with reference to the relationship between performance management and the portfolio.

Specific Outcome 4:Describe the regulatory and contractual parameters of investment management

Assessment Criteria:

4.1A portfolio is evaluated for compliance with the regulatory and classification limits of the portfolio.

4.2The portfoliomandate is interpreted and compared to the portfolio holdings.

4.3A portfolio is analysed to determine whether it complies with the prospectus, deed, Collective Investment Schemes Control Act (CISCA), Financial Advisory and Intermediary Services Act (FAIS) and the Association of Collective Investments (ACI) codes and standards.

9.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.
  1. RANGE STATEMENT:

The typical scope of this Unit Standard is:

  • Financial markets are physical markets: the JSE Securities Exchange, BESA, SAFEX, New York Stock Exchange, Hang Seng, NASDEC, Dow Jones, London Stock Exchange, Nikkei, DAC and CAC.
  • Money market intermediaries – banks and non physical markets: capital market and equity market.
  • Markets include the Money Market, Capital Market and Equity Market.

11.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 indicating whether a portfolio is being optimally managed.
  2. The learner is able to collect, organise and critically evaluate information analysing a portfolio for compliance.intended for learners who are Marketing Managers, Sales People, Marketing Consultants of Collective Investment Scheme Managers, Product Developers, Wealth Managers, Financial Planners and Advisors

Search words: collective investments, collective investment portfolios

1

L5 CIS portfolio management 18 June 2006