This is a fictional $100bn fund with 240 simulated accounts, $3bn in opening bank cash and $1bn of eligible surplus. It is not a benchmark or a forecast for any actual fund.
- Cash released
- $1bn of average deployable surplus maintained throughout the modelled period, after payment requirements, buffers and restrictions.
- Annual return uplift
- 4 percentage points more than the cash’s existing use, generating $40m of incremental returns every year. This is a return difference, not a deposit interest rate.
- Reinvestment
- Each year’s $40m is invested at year-end. Accumulated incremental wealth earns an assumed 7% annually. First-year gains compound for nine years.
- Ten-year result
- $552.7m = $400m in annual incremental returns + $152.7m in reinvestment growth. The original $1bn is excluded.
- Practical boundaries
- Cash pools retain entity, currency, ownership and mandate boundaries. Recipient accounts are payment destinations, not recoverable fund cash. TMS visibility alone does not establish sweep eligibility.
- What is excluded
- Implementation and operating costs, taxes, changing markets and deployment ramp-up. Returns are hypothetical and not guaranteed. This is future additional wealth, not present value or net ROI.