Planning for potential increases in disbursements and risk of managed funds conditional on desired short-term performance levels

As increasing disbursements (such as costs and fees) risk portfolio leverage risk) may affect managed fund performance, analysts go beyond risk-adjusted return measures for performance appraisal. A methodology that assesses in a multidimensional framework is data envelopment analysis (DEA). variant of DEA inverse DEA. In this paper, applied to determine output (investment income benefit payments) targets given perform at desired efficiency level when increase known levels envisaged. An output-oriented model assuming variable returns scale formulated with theoretical underpinning. The proposed modelling ensures that, an input augmented estimated included the observed set, frontier best established set does not change. sample Australian superannuation funds demonstrate how obtain pathways improve its under different input-augmentation scenarios. suggest feasible targets, managers find them valuable forward planning.