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

Describe collective investment schemes 
SAQA US ID UNIT STANDARD TITLE
243129  Describe collective investment schemes 
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 3  NQF Level 03  2 
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
8990  Describe collective investment schemes  Level 3  NQF Level 03  2   

PURPOSE OF THE UNIT STANDARD 
This Unit Standard introduces the basic concepts of collective investment schemes. It provides a broad introduction to participatory interest in a portfolio of a collective investment scheme. It will add value to 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:
  • Demonstrating knowledge and understanding of the concept of a collective investment scheme.
  • Identifying underlying assets that may be included in a collective investment scheme in securities.
  • Categorising the portfolios in collective investment schemes.
  • Explaining the relationship between collective investment scheme performance and the market. 
    		•

    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 2. 

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is:
  • Collective investment scheme portfolios include, but are not limited to, index funds, fund of funds, collective investment schemes in securities, general funds, feeder funds and money market funds.
  • The geographic classes of portfolios include domestic, worldwide, foreign and regional funds.
  • Asset classes include equity, fixed interest and asset allocation.
  • Different types of collective investment schemes include, but are not limited to, unit trusts, open ended investment companies (OEICs) participation bonds, mortgage bonds and collective investment schemes in securities.
  • Basic terminology includes, but is not limited to, participatory interest in a collective investment scheme, fees, interest, income, equity, capital growth, yield and net asset value.
  • Advantages include, but are not limited to, third party oversight by trustees, transparency, portfolio turnover, liquidity, risk diversification and investment offshore.
  • Disadvantages include, but are not limited to, risk, investment limits, volatility and income distribution.
  • Securities as defined in the Collective Investment Schemes Act (CISCA).
  • Basis for classification includes geographical, underlying assets, flexible or not.
  • Categories of asset classes are equities, bonds, money market, income and property.
  • Fees include initial fees, performance fees, annual fees and differential fees.
  • The nature of a collective investment scheme portfolio includes income type funds, general equity fund, asset allocation fund and hedged fund. 
    		•

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Demonstrate knowledge and understanding of the concept of a collective investment scheme. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The concept of a collective investment scheme is explained and the different types of collective investment schemes are described with examples. 

    ASSESSMENT CRITERION 2 
    The concept of a portfolio within a collective investment scheme is explained with reference to the different asset classes. 

    ASSESSMENT CRITERION 3 
    Basic terms associated with collective investments are explained with reference to a selected collective investment scheme portfolio. 

    ASSESSMENT CRITERION 4 
    The inherent advantages and disadvantages of collective investment schemes are identified from the point of view of a small investor/new investor. 

    SPECIFIC OUTCOME 2 
    Identify the underlying assets that may be included in a collective investment scheme in securities. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The underlying assets that can be included in a portfolio are named with reference to appropriate legislation and Financial Services Board regulations. 

    ASSESSMENT CRITERION 2 
    The implications of grouping of different types of assets within a portfolio are explained with reference to how this affects the nature of the collective investment scheme portfolio. 

    ASSESSMENT CRITERION 3 
    The risk element of selected collective investment scheme portfolios is compared and reasons are given for the difference in risk. 

    SPECIFIC OUTCOME 3 
    Categorise the portfolios in collective investment schemes. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The basis for the classification of a collective investment scheme portfolio is indicated according to its underlying assets. 

    ASSESSMENT CRITERION 2 
    The broad asset classes applied to collective investment scheme portfolios are named with examples in each category. 

    ASSESSMENT CRITERION 3 
    The geographical classes of collective investment scheme portfolios are named with examples of portfolios in each class. 

    ASSESSMENT CRITERION 4 
    Examples of specialist categories of collective investment scheme portfolios are listed with examples. 

    SPECIFIC OUTCOME 4 
    Explain the relationship between collective investment scheme performance and the market. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The impact of market trends on net asset value prices within a selected portfolio is explained with examples. 

    ASSESSMENT CRITERION 2 
    Volatility is explained in terms of market fluctuation. 

    ASSESSMENT CRITERION 3 
    The advantages and disadvantages of Rand cost averaging and lump sum investment are explained with reference to a selected portfolio. 

    ASSESSMENT CRITERION 4 
    The principle of compounding is explained with reference to a specific investment. 


    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 can collect, organise and evaluate information in comparing the risk element of collective investment portfolios and in giving reasons for the differences in the risk. 

    UNIT STANDARD CCFO COMMUNICATING 
    Learners can communicate effectively when presenting the concepts of collective investment scheme portfolios. 

    UNIT STANDARD CCFO DEMONSTRATING 
    Learners are able to demonstrate an understanding of the world as a set of related systems when explaining the impact of market trends on the net asset value prices. 

    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 8990, ' Describe collective investment schemes ', Level 3, 2 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.