Dictionary of Financial Terms - M

Managed Fund

A pooled investment fund which is actively managed. 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.

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 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

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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