Welcome to the Mclowd Practitioner Update.
While expansionary monetary and fiscal policy settings continue to inflate certain asset classes, those efforts have only managed to accelerate the decline in yields being experienced by investors.
By way of example, the average PE ratio for the All Ordinaries index has hovered (in a tight band) around 15 for the last forty years.
However as this chart illustrates, that figure is now approaching 60. While not as extreme, compression of yields has been the norm in residential and commercial property for more than a decade.
These statistics will inevitably alter the economics of superannuation (SMSF or otherwise) for many years to come.
Practitioners will shortly have access to a portal where periodic valuations can be managed in a unified manner (to the extent they are not already automated). This project will address historical inflexibility as to how asset price history has been handled.
A brief screen video of the new interface / functionality can be accessed here.
Full details of recent product outcomes and current WIP are available in the December quarter Release Notes.
The content of the Knowledge Base is subject to a process of continual improvement based on:
- User feedback
- Support tickets
- Delivery of product enhancements
There are now some 300 articles, video tutorials and PDF downloads available.
Based on your feedback this security feature will be updated so that users can manage the frequency with which the token is required.
Mclowd has over 750 registered Practitioner users.
However the harsh reality is that more than 600 of these remain inactive, due to the remaining gaps in functionality and usability (vis-a-vis incumbent solutions), particularly:
- Upstream data points
- Downstream automation
At the same time the consistent message from Practitioners (active or otherwise) has been that they would prefer to pay more to access Mclowd in order to see accelerated delivery against current WIP targets.
As a consequence of this feedback and level of dormancy, a decision has been made to increase the Pro version licence fee from $30 per fund per annum to $48.
This will still leave Mclowd with pricing that is 50-80% below that charged by the main incumbent vendors, while:
- Providing greater resources to direct to ongoing software development
- Unlike those incumbents, having no minimum spend
The change will take effect from 15 February. (There will be no change to the cost of bank or broker feeds, and in due course we aim to provide open banking data as part of the Pro version).
As part of the above changes Mclowd will be enabling telephone support for Practitioner users. Details will be provided in the next user update.
Notwithstanding our efforts over a number of years, the reality is that – to date – Mclowd has not been providing effective price competition at any real scale.
But given the steady decline in yields / tax advantages (particularly for pensions assets), the imperative for those cost savings is now greater than ever.
The Mclowd Team and I look forward to working towards our 2021 targets so that more Practitioners can realise the cost savings which Mclowd’s low cost operating model supports.
Mclowd Pty Ltd