+ 61 3 9020 2085 info@parityanalytic.com.au

FUND MODELLING

Share this article

The Brief

The trustee to one of the leading industry super funds in Australia was evaluating alternative strategies to reduce costs to its members, including the option of merging with another fund. 

To compare alternatives and quantify the benefits to its members, our client needed a flexible spreadsheet model with the following requirements:

 

  • Ability to evaluate the financial impact of several alternative merger proposals and compare them over a 5-year time horizon
  • Ability to quantify the per member reduction in costs due to savings in specific areas. For example, the benefit of reduced investment management fees or reduced administration fees due to increased member numbers
  • Scenario test the impact of combining trustee offices

Our Approach

Parity initially met with the CEO and finance team to develop an understanding of the key cost drivers for the fund in a ‘mini-model’.  This was followed up by additional meetings with a broader group of stakeholders, including the investments team, to review and provide feedback on the ‘mini-model’. Areas of the business which were particularly sensitive to changes in scale, such as investment management fees, were given special focus and modelled separately.   A full Fund model was then developed using Microsoft Excel.

Outcome

The modelling allowed the client to scenario test the various merger proposals.  Our analysis not only quantified the cost savings but provided detailed insight into where these would likely be achieved.  In addition, we were able to compare alternative merger structures and quantify the relative financial merits of each.

“Our analysis not only quantified the cost savings but provided detailed insight into where these would likely be achieved.”

The modelling quantified the benefits at both a fund level and member level.  It provided our client with the confidence to share the results with potential merger partners and demonstrate the benefit to members of both funds.

Parity supported the client on an ongoing basis, assisting with the analysis and implementation of additional changes as needed.

Share this article
Brownlow Medal Prediction Using Excel Based Machine Learning

Brownlow Medal Prediction Using Excel Based Machine Learning

Brownlow Medal Prediction Using Excel Based Machine LearningShare this articlelinkedintwitterA spreadsheet-based regression model using Neural Networks to rank this year’s medal contendersBy Stephen Huppert and Jack LanghammerIt may not be September, and the finals...

Project Financing

Project Financing

Our client is a leading Australian independent school that regularly places in the top 10 schools for academic results in Victoria. The client needed various…

Inventory Management

Inventory Management

Our client is a specialist whisky distillery which distributes in North America, Europe and Australia. Known for its distinct brands, they have rapidly grown off…

TAKE THE FIRST STEP TO BETTER BUSINESS DECISIONS

+ 61 3 9020 2085
info@parityanalytic.com.au

Level 19, 15 William Street,
Melbourne VIC 3000

Home                    Careers

About Us               Contact Us

Our Work              Privacy

Insights                 

QUICK CONTACT