SCR Calculator User Manual

Version Last modified 2024-3-21

Transactional Cashflow Planning

Cashflow Planning for Multiple Years

Future cashflows can be modelled and used by the optimiser. In both 'Current' and 'New' tabs, click the "Add CFs" button to add first 10 years' cashflows in the data table - they appear as 10 additional columns named 'Y1', 'Y2', ... , 'Y10' in each tab respectively.

Note that the cashflow projection in the Fixed Income Portfolio Optimiser is assumed tobe semi-annual coupon throughout. You will observe this if you change the projection frequency to "Quarterly" or "Monthly". This is a simplification, and different from the Portfolio SCR form, where daily cashflow modelling is assumed.

Then go to the 'Settings' tab's lower left corner, select "Y1", "Proportional Sum", ">=" and enter the desired cashflow 5000 for Y1 (in units of thousands, current level 2301), and add this constraint to the rhs box:

Repeat this porcess for "Y2" and enter a desired cashflow 20000 (current level 9560), and add this second constraint to the rhs box:

Then run optimisation again. It should succeed and if you export the optimised portfolio, you should find that columns "Y1" and "Y2" sums of cashflows satisfy the requirements.

Maximise Cashflow in a Particular Year

If you wish to maximise the cashflow in a particular year only, you can set that as the Objective. For instance, screenshot below show that our objective is to maximise first year's cashflow:

Our result shows an optimised 19mm cashflow in Year 1 would have been generated, everything else the same: