Financial Glossary

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Managed Fund

A pooled investment fund which is actively managed. Professional fund managers invest in stocks and shares and use their expertise to attempt to give better returns than the stockmarket. Often, investment is only possible through a linked life insurance policy issued by the insurance company which is managing the fund.

Market Capitalisation

the value of a company as measured by the total stockmarket price of its issued and outstanding shares. This is calculated by multiplying the number of shares by the current market price of a share. It is also widely used as a definition of company size - hence, big corporations are usually referred to as large cap stocks (See also Small Caps)

Matching Gifts Programme

A corporate contributions program that will match contributions made by employees, retirees, and their spouses to qualifying nonprofit organizations. Specific guidelines regarding the type of organizations included, donor eligibility, and the dollar amount which will be matched are established by each corporation.

Matching Grant

A grant or gift made with the specification that the amount donated must be matched from other sources on a one-for-one or some other prescribed basis.

Maturity Date

The date on which a payment becomes due at the end of the term of an endowment policy or a fixed term security or loan.

Maturity Value

The amount payable to the insured at the maturity date of an endowment policy.

Maxi

The Maxi ISA can hold all three of the different type of investments that are allowed; Cash, Life Assurance and Stocks and Shares. One Company manages the investments on behalf of the individual investing.

Maxi ISA

The Maxi ISA allows an investor to save all three of the different elements of ISA investments that are allowed, with one savings institution.The three elements of ISA investment are as follows:

Cash (see Cash ISA)
Stocks and Shares (see Stocks and Shares ISA)
Life Insurance (see Life Insurance ISA)

Maximum investment limits within a Maxi ISA for the 1999/2000 tax year are as follows:

£7000 total investment which can be broken down as
up to £3000 in Cash,
up to £1000 in Insurance,
balance up to £7000 in Stocks & Shares .

Maximum investment limits within a Maxi ISA for the 2000/2001 tax year will be as follows:

£5000 total investment which can be broken down as
up to £1000 in Cash,
up to £1000 in Insurance,
balance up to £5000 in Stocks & Shares .

By contributing to a Maxi ISA, you cannot contribute to a Mini ISA in the same tax year.

Maximum Investment Plan

A Unit Linked Endowment Policy tailored specifically for Savings. The Maximum Investment Plan incorporates life assurance cover at the lowest level required for the policy to remain as a qualifying policy for tax purposes.

MER

Medical Examiners Report. A report by a doctor who is required to examine the individual concerned especially for the purpose. Used for underwriting purposes.

MIB

Motor Insurers Bureau.

Micropal Star Rating

This is a rating developed by Standard & Poor's Micropal, a company who monitor the performance of different types of investment funds. The fund you have selected has a rating from Micropal. Over the past three years Micropal have evaluated the performance and the riskiness of the fund compared to other funds in the same grouping (or what is known as a sector). The higher the number of stars awarded - maximum 5 - the better Micropal believe the fund is. It should be remembered that this rating is a snapshot only, and that past performance is no guide to the future. Investors should always consult with an Independent Financial Adviser before investing.

Mini ISA

A Mini ISA only allows an investor to save in one of the three different elements of ISA investments that are allowed, although an investor can hold more than one Mini ISA to utilise the overall Mini ISA investment limit and can invest with more than one savings institution. e.g. an investor can have Stocks & shares ISA with Company X, cash ISA with company Y and a Life Assurance ISA with company Z. The three elements of ISA investment are as follows:

Cash (see Cash ISA)
Stocks and Shares (see Stocks and Shares ISA)
Life Insurance (see Life Insurance ISA)

Maximum investment limits within a Mini ISA for the 1999/2000 tax year are as follows:

Up to £3000 in a Cash Mini ISA,
Up to £1000 in an Insurance Mini ISA,
Up to £3000 in a Stocks & Shares Mini ISA .
Maximum £7000 total investment per annum across multiple Mini ISA's

Maximum investment limits within a Mini ISA for the 2000/2001 tax year will be as follows:
Up to £1000 in a Cash Mini ISA,
Up to £1000 in an Insurance Mini ISA,
Up to £3000 in a Stocks & Shares Mini ISA .
Maximum £5000 total investment per annum across multiple Mini ISA's

Micropal Star Ratings

Independent investment funds analysts Micropal continually monitor all of the UK's unit trusts, measuring the balance between each fund's performance over three years against the up or down movements in its unit price (i.e. the volatility). They then award stars on a scale from 0 to 5, with the highest number going to those funds with the lowest volatility - and therefore risk - in relation to their overall performance. Five stars is the top award.

MIRAS

Mortgage Interest Relief at Source. The mortgage lender will reduce the monthly payment required from a borrower by the amount of tax relief applicable to the interest on the loan. The lender can claim the balance from the Inland Revenue.

Monetary Policy

influencing the direction of an economy through control of the money supply (See also Fiscal Policy)

Money Purchase Scheme (Defined Contribution Scheme)

A pension scheme providing benefits determined by the contributions made in respect of a member and the investment return on those contributions. At retirement the accumulated fund is used to purchase an annuity. All personal pensions (and some occupational schemes) are 'money purchase schemes'.

Morbidity

Relative incidence of disease and accidents in a well-defined class or classes of persons.

Morbidity Table

Actuarial statistics showing the frequency and duration of a sickness.

Mortality Table

A statistical table showing the probability of death (death rate) at each age.

Mortgage

A loan used to buy your house, where your house is used as security until you've paid off the loan (usually after a fixed period). There are three main types of mortgage:

• A repayment mortgage - you pay off the loan by instalments of capital and interest so that after the agreed period you have paid off all the loan
• An interest only mortgage - you pay only interest on your mortgage and make other arrangements to repay the capital, like an endowment policy.
• A flexible mortgage allows you to make overpayments and take payment holidays.

Mortgage Deed

This is the legal document that you sign to say that the lender has a legal charge over your property.

Mortgage Indemnity Premium (MIP)

Insurance that covers the lender in case your property is repossessed and the lender cannot get the money.

Motor Insurers' Bureau

The Motor Insurers' Bureau is a body funded by motor insurance companies, which deals with claims for injury compensation when the driver at fault is not insured, or cannot be traced.

Mutual

A commercial organisation owned by its members (as opposed to being owned by shareholders). Examples are Building Societies and some life insurance companies.

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