🇦🇺Australia
ALM Modeling Delays
2 verified sources
Definition
Lack of suitable matching assets (small bond market) forces manual proxy construction and derivatives.
Key Findings
- Financial Impact: 20-40 hours per quarterly ALM review at AUD 500/hour = AUD 10,000-20,000
- Frequency: Quarterly or ad-hoc rate events
- Root Cause: Shortage of duration-matched bonds in Australia
Why This Matters
The Pitch: Australian Pension Funds lose AUD 50,000+ per analysis cycle on manual ALM modeling. Automated tools match liabilities instantly.
Affected Stakeholders
Actuary, Portfolio Manager
Deep Analysis (Premium)
Financial Impact
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Current Workarounds
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
Poor ALM Decisions
AUD 25% excess contributions for underfunded plans (e.g., 80% funded requires 125% levered assets)
LDI Collateral Calls
AUD millions in collateral for swap MTM losses (no cash offset from liability gains)
Fehlentscheidungen bei Asset-Allokation durch ungeeignete aktuariellen Annahmen
Estimated opportunity cost of 0.5–1.0% of assets per annum from suboptimal asset allocation in a AUD 100–500 million DB fund, i.e., AUD 0.5–5 million per year, cumulating to AUD 2.5–25 million over 5 years.
Fehlentscheidungen bei Rentenplanung durch falsche Inflations- und COLA-Annahmen
Quantified (logic-based): A 1 percentage point understatement of effective COLA over 20 years on a AUD 30,000 p.a. income target creates ≈AUD 6,000–7,000 per member real purchasing power gap; at 50,000 members this is ≈AUD 300–350 million equivalent mis‑estimation of retirement income needs over the liability horizon.
Funded Status Reporting Penalties
AUD 10,000+ per breach (ATO administrative penalties up to AUD 18,000 for entities; typical 20-40 hours/month manual reporting)
TBAR Lodgement Delays
AUD 5,000-15,000/year in GIC (15.5% pa on shortfalls) + 20 hours/quarter manual delays
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