ClickSuperGuide for funds using the ClickSuper eRollover calculator

ClickSuper Calculator guide

The ClickSuper Calculator is designed to be a quick and easy-to-use tool that will give you indicative cost implications when considering the ClickSuper solution for your fund.

You can access the calculator here:

This Guide will take you through:

1.The purpose of the Calculator

2.How to use the Calculator

3.The key assumptions that are used within the Calculator

4.How to interpret the results

5.Factors to consider when using the Calculator

6.Who to contact for further assistance

Disclaimer: This model was developed by Cuscal merely as a general indicative guide and does not take into account individual circumstances and commercial considerations of the user. The results of the model will vary depending on the information used. Cuscal has exercised due care in relation to the data and assumptions used but makes no warranty of any kind regarding their accuracy, completeness, currency or reliability. Except for liability which by law cannot be excluded, Cuscal disclaims (and you release Cuscal in relation to) all liability whatsoever for any loss or expense suffered directly or indirectly due to reliance on the information or the model.

Microsoft Office Excel 2007 Workbook

Purpose of the Calculator

What does the Calculator do? 1. Analyses the current cost structure of your

rollover and contribution processes in terms of:

– Consumable costs

– Staff costs

– Disinvestment costs

2. Calculates the indicative costs for your fund

when you implement the ClickSuper solution by

considering:

– Setup and implementation fees

– Transaction fees

– Disinvestment costs

3. Contrasts the costs of your current processes to

the ClickSuper solution and compares the cost

savings gained from ClickSuper using a cost

breakdown graph and a net present value

(NPV) comparison.

ClickSuperCost Calculator

Calculations

1 1 1 1 1 1Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Fund Administration Rollover Expenses

Consumables CostsPrepare and post cheque ($16,200) ($16,200) ($16,200) ($16,200) ($16,200)Cheque and forms are mailed ($6,500) ($6,500) ($6,500) ($6,500) ($6,500)

Staff CostsPrepare and post cheque ($62,247) ($62,247) ($62,247) ($62,247) ($62,247)Cheque and forms are mailed - - - - -

Consumables CostsDocuments scanned and identified - - - - - Data entry of received forms and validation - - - - -

Staff CostsDocuments scanned and identified - - - - - Data entry of received forms and validation - - - - -

Disinvestment CostsPrepare and post cheque - - - - - Cheque and forms are mailed ($34,521) ($34,521) ($34,521) ($34,521) ($34,521)Documents scanned and identified - - - - - Data entry of received forms and validation ($23,014) ($23,014) ($23,014) ($23,014) ($23,014)

Total Expenses - ($84,947) ($84,947) ($84,947) ($84,947) ($84,947)

Net Present Value (NPV) - ($73,867) ($64,232) ($55,854) ($48,569) ($42,234)Cumulative NPV - ($73,867) ($138,099) ($193,953) ($242,522) ($284,755)

ClickSuper Expenses

Forecast Rollover Infrastructure setup ($10,000)Implementation fee ($10,000)Transaction fee - rollover ($2,000) ($2,000) ($2,000) ($2,000) ($2,000)Disinvestment Cost ($23,014) ($23,014) ($23,014) ($23,014) ($23,014)

Total Expenses ($20,000) ($2,000) ($2,000) ($2,000) ($2,000) ($2,000)

Net Present Value (NPV) ($20,000) ($1,739) ($1,512) ($1,315) ($1,144) ($994)Cumulative NPV ($20,000) ($21,739) ($23,251) ($24,566) ($25,710) ($26,704)

NPV Comparison

Fund NPV - ($73,867) ($138,099) ($193,953) ($242,522) ($284,755)ClickSuper NPV ($20,000) ($21,739) ($23,251) ($24,566) ($25,710) ($26,704)Cost savings ($20,000) $52,128 $114,848 $169,387 $216,812 $258,051

32127.79 166975.41 284234.21 386198.38 474862.870.38 0.55 1.32 2.22 3.16

ClickSuper Evaluation

Net present value $258,051Payback period 0.4 yearsClickSuper costs as a % of current costs in Yr 1 18%

Charts

Year 1 cost comparison Consumables Staff Cost Fund Benefit DisinvestmentMember Benefit

Fund - current scenario $22,700 $62,247 $0 $57,534 $0ClickSuper $2,000 $0 $82,947 $23,014 $34,521

Disclaimer:

Outw

ard

Rollover

MEM

BER

This model was developed by Cuscal merely as a general indicative guide and does not take into account individual circumstances and commercial considerations of the user. The results of the model will vary depending on the information used. Cuscal has exercised due care in relation to the data and assumptions used but makes no warranty of any kind regarding their accuracy, completeness, currency or reliability. Except for liability which by law cannot be excluded, Cuscal disclaims (and you release Cuscal in relation to) all liability whatsoever for any loss or expense suffered directly or indirectly due to reliance on the information or the model.

Inw

ard

Rollover

$258k

($50k)

-

$50k

$100k

$150k

$200k

$250k

$300k

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

ClickSuper Payback PeriodNet Present Value

5 Year Horizon

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Fund - current scenario

ClickSuper

Consumables, $22,700

Consumables, $2,000

Staff Cost, $62,247

Staff, $0

Fund Benefit, $0

Fund Benefit, $82,947

Year 1 Cost ComparionCurrent vs ClickSuper

Rolllovers

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Fund - current scenario

ClickSuper

Disinvestment $57,534

Disinvestment $23,014

Member Benefit $0

Member Benefit $34,521

Year 1 Member ExperienceCurrent vs ClickSuper

Rolllovers

How to use the Calculator

Steps:1.Fund return per annum, over the past three quarters

2.Cost to produce a cheque

3.Cost for an average printed page/ETF

4.Average staff salary

5.Time required to prepare cheques for dispatching

6.Setup cost estimate

7.Implementation cost estimate

To use the Calculator, simply key in the required inputs in the yellow cells on

the “Inputs” sheet which are relevant to your business:

Questions to tailor the eRollover calculator to your fund

What was your fund's return rate p.a, over the last year? 7.00%

What is your total of Outward Rollovers p.a? 10,000

What is average value of an Outward Rollover? 6,000$

What is your total of Inward Rollovers p.a? -

What is average value of an Inward Rollover? -$

How much does it cost you to produce a cheque? 1.50$

What does an average printed page/ETF form cost you per page? 0.04$

What is the average salary for your staff processing rollovers? 50,000$

How much time is spent to prepare each cheque for dispatching? 0.2 hrs

How much do you expect it to cost to setup ClickSuper in your business? 10,000$

Implementation fee to setup ClickSuper for your business? 10,000$

Disclaimer: This model was developed by Cuscal merely as a general indicative guide and does not take into account individual circumstances and commercial considerations of the user. The results of the model will vary depending on the information used. Cuscal has exercised due care in relation to the data and assumptions used but makes no warranty of any kind regarding their accuracy, completeness, currency or reliability. Except for liability which by law cannot be excluded, Cuscal disclaims (and you release Cuscal in relation to) all liability whatsoever for any loss or expense suffered directly or indirectly due to reliance on the information or the model.

➔ Your assumptionsSpecific inputs you provide for your fund will form the basis of the model assumptions as detailed in the “Assumptions”

sheet. There are some other generic model assumptions which we have supplied “base case” estimates for including:

– Average rollover amount of $36k is the amount stated from the Cooper review

– Rate of return for funds currently set at 4.75% (cash rate)

– Average contribution amount of $480

– Staff loading costs of 23%

– Discount rate of 15%

– These should be used as a guide only, and actual data should be incorporated into the model where appropriate.

➔ Volume of rolloversThe key factors driving the result is the volume of rollovers per year.

➔ Other assumptions to note: – Exceptions processing have been excluded for demonstration purposes

– Disinvestment time frame (money out of market) has been assumed to be the same when processing rollovers

and contributions

– Rollover calculator is on a ‘per rollover per member’ basis per year

– The calculator assumes the same cost base for rollovers and contributions

Assumptions

How to interpret the results

Once your inputs have been keyed in, the Calculator automatically calculates and breaks down

the individual cost components of your current processes and compares these to the ClickSuper

solution.

For Rollovers:

– Fund savings arise largely from the reduction in consumables and staff costs

– Member savings arise from reducing the disinvestment period

How to interpret the results

The net present value of this investment is a gain of $582k over a five year period.

The Calculator compares the cost savings gained from using ClickSuper with the setup and implementation costs of the product to determine the net present value (NPV) and payback period. ➔ The NPV represents the net worth of gains/losses of the investment over a five year period (in today’s money terms)

➔ The payback period represents the time it takes to recoup the initial investment costs.

In this example:

The payback period for the $30,000 investment is 3 months.

ClickSuper Evaluation    

  Net present value $582,242 

  Payback period 0.3 years

For more information

For more information, please contact: Dean MartinTelephone: 0421 183 214Email: info@clicksuper.com.au