Glossary of Terms



Analysis of broad trends and influences on the economy. By contrast, Micro-economics focuses on the impact of individual companies and markets.

Management Fee

A fee charged for management of your investment portfolio.

Managed Fund

A fund that pools money invested by many investors to buy a portfolio of assets, and is then managed by expert professionals to achieve a profit that is distributed among the investors after management fees and other operational costs and profits to the creators of the fund are paid.

Manual Import Method (Bank Data)

A method of importing bank transaction data manually from a file exported from your bank software, in lieu of paying for SISS live data feeds. Manual data import may be more tedious, as it require exporting statements, modifying the file to match specifications, and then importing to Mclowd. Once the file has been successfully imported, you can allocate transactions exactly as you do when using SISS Data Feed. No costs apply for using the manual import method.

Margin Lending

Lending under rules that allow you to borrow money for the purposes of investing it. The amount of credit loaned is based on the amount of assets owned by the borrower available to use as security on the loan.

Marginal Tax Rate

The rate of tax a person must pay on their income ―varied according to income levels.

Market Capitalisation

The notional value of a company, calculated by multiplying the total number of shares on issue by the market price.


A cloud-based goods and services exchange portal provided by Mclowd to facilitate matching of SMSF trustee needs with providers of goods and services. Providers can post advertisements, receive alerts when trustees post jobs or requests, offer quotes, and accept payment through the portal. Trustees can post requests, receive quotes, scan provider profiles, select a provider and accept a quotation, track job progress, and make payment through the portal, all with confidence that providers registered on the Mclowd portal are trustworthy suppliers delivering quality service at a fair prices. The service is completely free to buyers. Sellers pay Mclowd a 10% commission on each job accepted through the portal.

Market Price

The last reported price at which a stock sold (if on an exchange). Mclowd updates market prices for the assets you hold through direct data feed.

Market Timing

Timing the purchase or sale of stocks on the basis of short-term price patterns and temporary market opportunities, combined with judgements of underlying value. While market timing can be highly profitable, it is extremely difficult to get right consistently, particularly for an individual investor.

Master Fund/Master Trust

A fund or trust that allows a large number of unconnected companies and/or individuals to operate through sub-funds in the same fund. Generally operated by banks, life insurance companies, and specialist superannuation administrators.

Maximum Pension Withdrawal

There are no maximum draw-down limits for pensions commencing on or after 20 September 2007, except for transition-to-retirement income streams. Members drawing a transition to retirement pension are not permitted to draw more than 10% of the account balance in any one year, and may not make any lump sum withdrawals.


Another word for Average.

Means Test

An assessment of resources a person has available to support themselves.


Cloud-based software (located at that enables trustees to efficiently record transactions, track investment values and profits, and manage financial reporting, compliance, and tax return lodgement.


The number that appears exactly half way in a set of data, as distinct from ”average” which is the total of all numbers in the data set divided by the number of numbers in the set.

ME Bank

A licensed bank owned by some of Australia’s biggest Industry SuperFunds ―originally created to give members of Industry SuperFunds access to low cost banking and better service.

Member Weighted Average

Mclowd calculates the Members Weighted Average (MWA) percentage for each member of the fund when processing year end in order to determine the share of fund profit each member should receive. The MWA percentage is computed by adding your opening balance, total contributions, and total past profit accruals and comparing the total with the total value of non-segregated fund assets.

Note that returns on segregated assets are tallied separately and added to the profit share calculated using the MWA percentage.


A corporate restructure in which two companies combine into one.


Analysis of the impact of individual companies and markets on the economy.


A move from managing your fund via another method, or paying a service provider, to managing through Mclowd OR a movement of your fund assets from one superannuation fund to another. On migration to Mclowd, you need to supply Mclowd with essential data about the fund and its members, then carefully enter information about all current asset holdings, liabilities, etc. See Chapter 3. FUND SET UP in the Mclowd User Manual for detailed instructions for setting up your fund on Migration to Mclowd.

Migration support can be purchased direct from Mclowd ($220 inc GST), or you may post a request in the Marketplace, where you will find numerous service providers with the requisite knowledge of the Platform.

Migration Date

The Migration Date is the 1st of July in the first year for which you wish to record transactions in Mclowd.

For example, if you used another accounting method until December 2014, but decided to switch to Mclowd to process the 2014-2015 tax year, your migration date would be July 2014. In this case, your Start Year would be 2014-5.

Minimum Pension Payments

The minimum amount that must be paid to a member receiving a pension or transition to retirement pension during a financial year or part thereof. The minimum amount varies according to the age of the member.

Age is the member’s age either on the date on which the pension commences, or, in subsequent years, July 1 of the financial year in which the payment is made.

The minimum amount is calculated as a percentage of the account balance. ”Account Balance” means one of the following:

  • the pension account balance on 1 July in the financial year in which the payment is made
  • if the pension commenced during the financial year – the balance on the commencement day
  • if the amount of the pension account balance is less than the withdrawal benefit that the member would be entitled to if the pension were to be fully commuted – the amount of the withdrawal benefit.

If the pension commences after 1 July, the minimum payment amount for the first year is calculated proportionately to the number of days remaining in the financial year, starting from the commencement day.

The applicable percentages as at January 2018 are:

  • 4% of account balance if under 65 years of age
  • 5% of account balance if aged between 65 and 74
  • 6% of account balance if aged between 75 and 79
  • 7% of account balance if aged between 80 and 84
  • 9% of account balance if aged between 85 and 89
  • 11% of account balance if aged between 90 and 94
  • 14% of account balance if aged over 95

Morgan Stanley Capital Index (MCSI)

An index often used as a benchmark to compare against the returns of overseas shares.

Multi-Factor Authentication Security

An advanced two-step verification process that adds an additional security level to your Mclowd account. Mclowd implements a high level of security to protect your privacy and data, but MFA adds an extra layer that makes it all but impossible for anyone―even someone who knows your email address and discovers or guesses your password―to gain unauthorized access to your Fund data. Refer to details of how to set up MFA in Section 1: YOUR ACCOUNT―MANAGING YOUR MCLOWD ACCOUNT in the Mclowd User Manual.

Mortar Board

A symbol used in Mclowd, usually displayed on the right of a title bar, indicating that user help is available. Click the mortar board symbol to access helpful information.


about the author:

Lorraine Cobcroft

With a background in accounting and financial management, followed by two decades writing software documentation, Lorraine joined the Mclowd team in mid-2016 and is enjoying working with a dynamic team to enhance an innovative product that has the potential to revolutionize the way Australians manage their retirement funding. Lorraine is also an accomplished business writer, ghost-writer, novelist and short-story writer and poet.

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