1.TITLE:Analyse the role of international investment in wealth management

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2.UNIT STANDARD NUMBER:242563

3.LEVEL ON NQF:5

4.CREDITS:6

5.FIELD:Business, Commerce and Management Studies

Sub Field:Finance, Economics and Accounting

6.PURPOSE:

This Unit Standard is intended for learners who advise clients on existing collective investment portfolios. It is applicable to Fund Managers and Administrators, Broker Consultants, Employee Benefits Consultants and Emigration Consultants and Intermediariesand learners who require Category I licensing under the Financial Advisory and Intermediary Services Act (FAIS).

The qualifying learner is capable of:

  • Demonstrating knowledge and insight into vehicles available for offshore investment.
  • Distinguishing between investing offshore through a managed investment vehicle and direct offshore investment vehicle.
  • Analysing the effects of financial indicators on international investments.
  • Analysing the application of international asset classes to financial planning.

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 insight into vehicles available for offshore investment

Assessment Criteria:

1.1Three offshore investment vehicles are analysed and compared in terms of their objectives, risk factors, income tax, goals and whether foreign exchange is required, asset allocation spread.

1.2An offshore investment is recommended based on an investment needs analysis with specific reference to the compatibility of the products, risk and the client’s risk profile.

Specific Outcome 2:Distinguish between investing offshore through a managed investment vehicle and direct offshore investment

Assessment Criteria:

2.1The concept of a managed offshore investment vehicle is explained with reference to the currency of the investment and when direct management is appropriate.

2.2The concept of direct offshore investment is explained with reference to when direct management is appropriate.

Specific Outcome 3:Analyse the effects of financial indicators on international investments

Assessment Criteria:

3.1The effects of currency, interest rate, exchange rate and inflation on offshore investment are analysed for a specific portfolio.

3.2The possible effects of changes in major resource prices on offshore investments are analysed with reference to a specific portfolio.

Specific Outcome 4:Analyse the application of international asset classes to a specific client’s portfolio

Assessment Criteria:

4.1The effects of strategic asset allocation on international investments are analysed to determine the suitability for a specific investor.

4.2The implications of deviating from strategic asset allocation are explained for a specific investor.

4.3Changes to the asset allocation in an international portfolio are recommended to meet the needs of a specific investor.

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 includes, but is not limited to:

  • Recommendations for offshore investments may be suggestions for wealth management or retirement funding.
  • Risk factors of the four asset classes include geographical, currency, inflation, interest rates, political and legal factors.
  • Products should include reference to the €; ₤; $ and the Pacific Rim.
  • Vehicles available for offshore investments include, but are not, limited to, domestic and offshore Collective Investments, annuities, linked products, life wrap products, feeder funds, international Rand denominated funds and mutual funds.
  • Currency includes, but is not limited to, $, ₤, €, Yen and Yuan

11.NOTES:

  • CRITICAL CROSS FIELD and DEVELOPMENTAL OUTCOMES:

This Unit Standard supports in particular, the following Critical Cross-field Outcomes at Level 5:

  1. The learner is able to collect, organise and critically evaluate information in showing insight into offshore investment vehicles and analysing data and risk profiles.
  2. The learner is able to communicate effectively using visual, mathematics and language skills in the modes of oral and/or written presentations in explaining different offshore investment vehicles and the effects of financial indicators on international investments.
  3. The learner is able to demonstrate an understanding of the world as a set of related systems by explaining the effects of economic indicators on offshore investments.

Search words: offshore investments; international investments; international asset classes

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L5 international investment 18 June 2006