Student Declaration Form

Complete and attach to your assessment answers before submitting for assessment

The Tasks you submit for assessment must be your own work and cannot be completed by another person. Initial each item on the list below to show you have read and understood the requirements of the assessment and that the submitted work is your own then sign the declaration.

Your own work means it cannot be copied from course materials or other text. Your answers must be in your own words.

I agree for my information to be shared with Ringa Hora Services Workforce Development Council (RHSWDC), the New Zealand Qualifications Authority (NZQA) and the Ministry of Education (MoE) for the purposes of moderation to ensure consistency and for verifying, recording and management of results.

Signed: ……………………………………………………….. Date: ……………………..

31859 Assessment Tasks

You are expected to answer all the following questions in the blue shaded cells and save your assessment document with a new name with the unit standard number, your name and the date — e.g. 31859 John Smith 17 August

Task 1 (US 31859 PC 1.1 and 1.2)

In approximately 100 words, explain the key provisions of the following Acts.

For each Act, provide at least THREE examples of how the requirements of the Act impact on the provision of investment services.

Task 2 (US 31859 PC 2.1 and 2.2)

In 100 words for each role, explain the purpose AND responsibilities of the following key roles in investment organisations. Your answer needs to include at least THREE key responsibilities.

1. Portfolio Manager
2. Market Analyst
3. Chief Investment Officer

Task 3 (US 31859 PC 3.1 & 3.2)

Complete the table below to explain each of the following portfolio management techniques. You should have at least 100 words in your answer for each of the techniques (500 words in total).

Task 4 (US 31859 PC 4.1)

In approximately 80 words each describe the nature of the following investment risks and identify an investment strategy to minimise the risk:

1. Capital risk
2. Concentration risk
3. Currency risk
4. Financial risk
5. Market risk
6. Liquidity risk
7. Negative returns
8. Returns below inflation rate

Task 5 (US 31859 PC 4.2)

Evaluate the effectiveness of each of the following processes and solutions for managing investment risk and return. Your answer should be approximately 100 words for each process/solution (total answer should be approximately 500 words).

1. Diversification of asset allocation
2. Management style
3. Derivative products
4. Currency management
5. Dollar cost averaging

Investment Assessment Decision Form

The Assessment Decision Form is completed by the assessor and the results will be returned to you within 10 working days of receipt by the assessor of your assessment.

31859 Unit Standard Title: Demonstrate and apply knowledge of the investment services environment and concepts

Outcome 1: Explain and apply knowledge of the regulatory framework when providing investment services.

1.1 Explain key provisions of legislation, regulations, and codes of conduct that impact the daily operations of providers of investment services.

1.2 Apply knowledge of key provisions of legislation, regulations, and codes of conduct when providing investment services.

Range: Evidence of three examples.

Outcome 2: Explain key roles in investment organisations.

Range: roles may include but are not limited to — portfolio manager, market analyst, chief investment officer.

2.1 Explain the purpose of key roles in investment organisations.

2.2 Explain the responsibilities of key roles in investment organisations.

Outcome 3: Explain portfolio management techniques.

3.1 Explain portfolio management theories in terms of asset allocation, diversification, and risk management.

3.2 Explain portfolio management approaches in terms of methodology and diversification benefits.

Range: Methodologies may include but are not limited to — active and passive, value and growth, country and sector allocation.

Outcome 4: Demonstrate and apply knowledge of the concept of investment risk and return.

4.1 Describe the nature of investment risk in relation to different types of investment strategies.

Range: Investment risk may include but is not limited to — capital risk, concentration risk, currency risk, financial risk, market risk, liquidity risk, negative returns, returns below inflation rate.

4.2 Evaluate processes and solutions for managing investment risk and return in terms of their effectiveness.

Range: Processes and solutions may include but are not limited to — diversification of asset allocation and management style, risk insurance, derivative products, currency management, dollar cost averaging.