Your questions answered Vol 2 - IM Private Clients
Discussion
Some news from MSFT/NVDA.
Microsoft sure has been busy lately with a flood of new and exciting productivity tools which we believe is setting a solid foundation for material future revenue growth.
Microsoft has introduced Microsoft 365 Copilot, an AI-enabled tool that can use existing documents and other data through an API called Microsoft Graph, which will help generate personal content. Copilot can function as a personal digital assistant as well as a useful generative content tool.
The tool has been integrated into Word, Excel, PowerPoint, Outlook, and Teams.
Copilot's ability to use existing data through the Microsoft Graph makes its outcomes highly personalised. Microsoft Graph is an API that developers can use to build customisable applications. The company's Graph lets applications "see" things like emails, calendar, documents, and usage patterns stored in Microsoft's cloud-based services such as Outlook.com, OneDrive, Office 365, Teams and more, providing valuable context for its content generation capabilities.
Copilot doesn't just create content from scratch, it does so knowing the contents of existing data. MSFT are introducing these features initially with their largest 8 enterprise customers.
The company has also just released cloud based virtual machines that run Nvidia Hopper 100 GPU's, their latest and most powerful AI Chips, specialising in LLM(large language model inference and training). The machines are scalable from 8 to 1000's of H100 chips. And at $40K a piece, it's good news
Only the very largest of companies can afford to build their own Super Computers. The above allows almost any entity to access AI super compute at a reasonable cost.
Microsoft sure has been busy lately with a flood of new and exciting productivity tools which we believe is setting a solid foundation for material future revenue growth.
Microsoft has introduced Microsoft 365 Copilot, an AI-enabled tool that can use existing documents and other data through an API called Microsoft Graph, which will help generate personal content. Copilot can function as a personal digital assistant as well as a useful generative content tool.
The tool has been integrated into Word, Excel, PowerPoint, Outlook, and Teams.
Copilot's ability to use existing data through the Microsoft Graph makes its outcomes highly personalised. Microsoft Graph is an API that developers can use to build customisable applications. The company's Graph lets applications "see" things like emails, calendar, documents, and usage patterns stored in Microsoft's cloud-based services such as Outlook.com, OneDrive, Office 365, Teams and more, providing valuable context for its content generation capabilities.
Copilot doesn't just create content from scratch, it does so knowing the contents of existing data. MSFT are introducing these features initially with their largest 8 enterprise customers.
The company has also just released cloud based virtual machines that run Nvidia Hopper 100 GPU's, their latest and most powerful AI Chips, specialising in LLM(large language model inference and training). The machines are scalable from 8 to 1000's of H100 chips. And at $40K a piece, it's good news
Only the very largest of companies can afford to build their own Super Computers. The above allows almost any entity to access AI super compute at a reasonable cost.
Nvidia revealed a range of new products and partnerships at its GTC 2023 (Global Tech Conference) developer conference on Tuesday, including a new quantum computing platform. Speaking at the annual conference, CEO Jensen Huang said that the impressive capabilities of generative AI were creating a sense of urgency for companies to reinvent themselves and become disruptors rather than being disrupted. Huang referred to this as "the iPhone moment of AI," alluding to the amount of attention that generative AI and ChatGPT, in particular, have garnered.
The new DGX Quantum platform, which is developed in collaboration with Quantum Machines, is built to train researchers working in quantum computing on the newly open-sourced CUDA Quantum platform. Additionally, Nvidia announced several new partnerships with other companies to expand the use cases of AI. The company has partnered to integrate AI into patient care and has also unveiled a new deal with AT&T to increase cost savings and improve performance.
Nvidia has also announced that it will collaborate with Microsoft to allow the tech giant's enterprise users to have access to Nvidia Omniverse Cloud and DGX Cloud. The company has also partnered with Oracle to use Nvidia BlueField for data centre acceleration. Nvidia stated that the DGX Cloud would provide companies with immediate access to multi-node AI supercomputing services for training models for generative AI. DGX Cloud instances start at £26,880 per instance per month and can scale up to thousands or even tens of thousands.
Nvidia also announced that its Omniverse Cloud would be hosted on MSFT Azure and Amazon AWS, and Google Cloud has adopted their new H100 chips. The company also showcased several new chipsets, including the L4 GPU, the L40 GPU, a new H100NVL, and the new Grace Hopper CPU, which the company claims doubles the performance over x86 CPUs on "mainstream" applications and numbers 100 million instances in data centres.
In addition to these developments, the company made several automotive-related announcements. These included BMW using Omniverse to create its first entirely virtual factory (as are Mercedes) and a new partnership with Chinese electric vehicle manufacturer BYD to use NvidiaDrive for software-defined vehicles (the largest EV manufacturer in Asia and soon, the world).
In conclusion, data centres must increase their workloads per energy unit, and the company that can deliver higher performance for less energy consumption and lower costs will be the winner. If you are looking for AI applications, Nvidia is the company that can supply the framework and the only company that offers the full-stack solution. These are exciting times for companies in this space. The company believe they are addressing a $1T market
The new DGX Quantum platform, which is developed in collaboration with Quantum Machines, is built to train researchers working in quantum computing on the newly open-sourced CUDA Quantum platform. Additionally, Nvidia announced several new partnerships with other companies to expand the use cases of AI. The company has partnered to integrate AI into patient care and has also unveiled a new deal with AT&T to increase cost savings and improve performance.
Nvidia has also announced that it will collaborate with Microsoft to allow the tech giant's enterprise users to have access to Nvidia Omniverse Cloud and DGX Cloud. The company has also partnered with Oracle to use Nvidia BlueField for data centre acceleration. Nvidia stated that the DGX Cloud would provide companies with immediate access to multi-node AI supercomputing services for training models for generative AI. DGX Cloud instances start at £26,880 per instance per month and can scale up to thousands or even tens of thousands.
Nvidia also announced that its Omniverse Cloud would be hosted on MSFT Azure and Amazon AWS, and Google Cloud has adopted their new H100 chips. The company also showcased several new chipsets, including the L4 GPU, the L40 GPU, a new H100NVL, and the new Grace Hopper CPU, which the company claims doubles the performance over x86 CPUs on "mainstream" applications and numbers 100 million instances in data centres.
In addition to these developments, the company made several automotive-related announcements. These included BMW using Omniverse to create its first entirely virtual factory (as are Mercedes) and a new partnership with Chinese electric vehicle manufacturer BYD to use NvidiaDrive for software-defined vehicles (the largest EV manufacturer in Asia and soon, the world).
In conclusion, data centres must increase their workloads per energy unit, and the company that can deliver higher performance for less energy consumption and lower costs will be the winner. If you are looking for AI applications, Nvidia is the company that can supply the framework and the only company that offers the full-stack solution. These are exciting times for companies in this space. The company believe they are addressing a $1T market
Edited by AdamIM on Wednesday 22 March 13:01
Phooey said:
Regarding this one-off additional 0.15% fee. I appreciate IM have added costs but I would prefer it to be added to the fund charges rather than ‘one-off’. It feels like a tax rather than a transparent cost. Just my honest opinion
my question is what is the effective date for the fee as I couldn't see it in the email?I know how IM likes constructive feedback so here goes..
Personally I feel IM's 'active' portfolios are very fairly priced - cheap in comparison with similar in the market. The Index tracker (collection of etf's) portfolios are about right - not the cheapest, but very close, and the added value of a Private Client Manager makes them work. I would be happy to pay an additional 0.15% on active portfolios, but an extra 0.15 on the tracker (Index) portfolios wouldn't work for me. 0.15% as a one-off fee across the board is not, IMO, a fair way of increasing fees.
Personally I feel IM's 'active' portfolios are very fairly priced - cheap in comparison with similar in the market. The Index tracker (collection of etf's) portfolios are about right - not the cheapest, but very close, and the added value of a Private Client Manager makes them work. I would be happy to pay an additional 0.15% on active portfolios, but an extra 0.15 on the tracker (Index) portfolios wouldn't work for me. 0.15% as a one-off fee across the board is not, IMO, a fair way of increasing fees.
superlightr said:
Phooey said:
Regarding this one-off additional 0.15% fee. I appreciate IM have added costs but I would prefer it to be added to the fund charges rather than ‘one-off’. It feels like a tax rather than a transparent cost. Just my honest opinion
my question is what is the effective date for the fee as I couldn't see it in the email?I dumped 2 providers of service to me that I have used for last 10 years based on a lower hike in price than that.
( 0.15/0.87 )
Ok its not a world shattering sum and it is nothing compared to the losses in my funds either, but it does leave a bad taste
PM3 said:
Ok its not a world shattering sum and it is nothing compared to the losses in my funds either, but it does leave a bad taste
Is that not the point, though? This is the ultimate "value-added" industry? We can all see the added value of our portfolios. I'd rather charges were levied on profits (i.e., the value added).The more you make for us, the more we pay you, rather than the more we give you, the more you take.
Edited by pingu393 on Wednesday 22 March 18:38
pingu393 said:
Is that not the point, though? This is the ultimate "value-added" industry? We can all see the added value of our portfolios. I'd rather charges were levied on profits (i.e., the value added).
The more you make for us, the more we pay you, rather than the more we give you, the more you take.
In a bizarre way I would have preferred the one off fee ( which is minor as stated ) to have been levied when my collective accounts with IM were overall at their peak - I’ve not looked for a couple of weeks but prior to that overall since October 2020 I was worth almost exactly the same as I started with. The more you make for us, the more we pay you, rather than the more we give you, the more you take.
I'd like to know what the increased costs due to inflation actually refers to?
Julian has said before they have £2bill under management. So 0.15 is what £3mill? thats a sizeable increase in cost base if thats really what they need to cover?
And yes the email not having any mention of when such levy is happening wasn't exactly great comms. Surely there has to be a timescale before which this applies in which anyone who wants to can move their funds otherwise its just basically, "sorry chaps we are taking 0.15% of your assets"
Julian has said before they have £2bill under management. So 0.15 is what £3mill? thats a sizeable increase in cost base if thats really what they need to cover?
And yes the email not having any mention of when such levy is happening wasn't exactly great comms. Surely there has to be a timescale before which this applies in which anyone who wants to can move their funds otherwise its just basically, "sorry chaps we are taking 0.15% of your assets"
Edited by markiii on Wednesday 22 March 12:09
Hello all
Firstly, my apologies for the email going out prematurely this morning, it was not supposed to go until tomorrow after I had posted on the matter here.
To, the point in hand, let me get straight to the heart of the matter in plain English;
With IM you have one single fee which covers everything - absolutely everything.
With other providers you have the headline annual management fee, then platform fee, but on top of these you have the very opaque transaction fees, dealiing charges, currency costs, custodianship, etc.).
Further more, you have full access to our financial planning guidance, tax planning and guidance and all other unlimited personal support as and when required, including resourses such as here.
We price ourselves incredibly keenly in providing all of this at a very low annual charge that should really be compared to much more expensive offerings than standard DIY platforms and investments with scripted helpline centres for all assistance you may require and variable fees on top of the headline rates in any event.
We do this by ensuring we are profitable on day one with our 1.5% initial charge covering all upfront costs and providing a 'subsidy pot' of sorts for such eventualities as this. The issue we have experienced here is that we waized this charge for all PHers and the subsequently saw 17% inflation rate over the last year or so.
This has to be addressed and as I said the prematurely sent email we considered the fairest way of doing this was not to increase the annual fee, but to levy a small one off payment as we consider inflation will not continue at its previous rate and we expect a return to normal.
I must also say that I considered this would be viewed in the way it was intended whilst other sectors happily use this inflatory hike to justify increasing their fees across the board permanently - despite this inflation rate not being permanent (in our considered opinion).
To address some questions;
If anyone would like to discuss then please feel free to DM me or email me if you already have my address. If demand is there and enables us to do so we can even look at different charging modles that suit different people;
1) All inclusive (the current model)
2) Annual managementcharge plus additional fees on top (the industry norm)
3) Profit linked (the hedge fund model)
What we do not want anyone to think is that what we are doing now is trying to move the goal posts or profit from today's circumstances. We are simply taking the fairest way we see possible to ensure we don't lost money in providing our services to you due to discounts already made.
Finally, if anyone remains of the opinion that we are not treating you fairly we will refund this charge should you wish to leave us, though we sincerely hope you understand the situation and do not. It never has been and never will be our intention to behave like our competitors in anything, so certainly not with fair charging for a fair and strong service.
Cheers
Julian
Firstly, my apologies for the email going out prematurely this morning, it was not supposed to go until tomorrow after I had posted on the matter here.
To, the point in hand, let me get straight to the heart of the matter in plain English;
With IM you have one single fee which covers everything - absolutely everything.
With other providers you have the headline annual management fee, then platform fee, but on top of these you have the very opaque transaction fees, dealiing charges, currency costs, custodianship, etc.).
Further more, you have full access to our financial planning guidance, tax planning and guidance and all other unlimited personal support as and when required, including resourses such as here.
We price ourselves incredibly keenly in providing all of this at a very low annual charge that should really be compared to much more expensive offerings than standard DIY platforms and investments with scripted helpline centres for all assistance you may require and variable fees on top of the headline rates in any event.
We do this by ensuring we are profitable on day one with our 1.5% initial charge covering all upfront costs and providing a 'subsidy pot' of sorts for such eventualities as this. The issue we have experienced here is that we waized this charge for all PHers and the subsequently saw 17% inflation rate over the last year or so.
This has to be addressed and as I said the prematurely sent email we considered the fairest way of doing this was not to increase the annual fee, but to levy a small one off payment as we consider inflation will not continue at its previous rate and we expect a return to normal.
I must also say that I considered this would be viewed in the way it was intended whilst other sectors happily use this inflatory hike to justify increasing their fees across the board permanently - despite this inflation rate not being permanent (in our considered opinion).
To address some questions;
- The increase is only being applied to the relatively small number of scheme that have different pricing models (such as the 1.5% initil charge discount). It is not being levied across £2bn!
- It is one off, not the beginning of something else, which would be suicidal of us as a company.
- The fee will be run this week, before the tax year end.
- IM is not profiteering from this, we are simply ensuring our retained margin from the provision of our services remains constant.
- I am more than happy to look at changing our charging model for PHers to a lower headline fee with the additional transactional, dealing, currency and other varialble costs taken seperately - just as with every other provider.
- I know - becuase I have run the numbers - that this will cost people more in the long run as we regularly swallwed these unexpected costs before and there is very good reason the entire industry, other than ourselve, work on that basis.
If anyone would like to discuss then please feel free to DM me or email me if you already have my address. If demand is there and enables us to do so we can even look at different charging modles that suit different people;
1) All inclusive (the current model)
2) Annual managementcharge plus additional fees on top (the industry norm)
3) Profit linked (the hedge fund model)
What we do not want anyone to think is that what we are doing now is trying to move the goal posts or profit from today's circumstances. We are simply taking the fairest way we see possible to ensure we don't lost money in providing our services to you due to discounts already made.
Finally, if anyone remains of the opinion that we are not treating you fairly we will refund this charge should you wish to leave us, though we sincerely hope you understand the situation and do not. It never has been and never will be our intention to behave like our competitors in anything, so certainly not with fair charging for a fair and strong service.
Cheers
Julian
Thank you Julian.
"We are simply taking the fairest way we see possible to ensure we don't lost money in providing our services to you due to discounts already made."
I think this is very fair and appreciate changes have to be made from time to time. I'm confident you have our backs but equally it has to work for you otherwise we all lose out. Thumbs up from me.
"We are simply taking the fairest way we see possible to ensure we don't lost money in providing our services to you due to discounts already made."
I think this is very fair and appreciate changes have to be made from time to time. I'm confident you have our backs but equally it has to work for you otherwise we all lose out. Thumbs up from me.
Edited by superlightr on Wednesday 22 March 13:31
superlightr said:
Thank you Julian.
"We are simply taking the fairest way we see possible to ensure we don't lost money in providing our services to you due to discounts already made."
I think this is very fair and appreciate changes have to be made from time to time. I'm confident you have our backs but equally it has to work for you otherwise we all lose out. Thumbs up from me.
^^^^ this"We are simply taking the fairest way we see possible to ensure we don't lost money in providing our services to you due to discounts already made."
I think this is very fair and appreciate changes have to be made from time to time. I'm confident you have our backs but equally it has to work for you otherwise we all lose out. Thumbs up from me.
JulianPH said:
Hello all
.....Further more, you have full access to our financial planning guidance, tax planning and guidance and all other unlimited personal support as and when required, including resourses such as here...
Just on this can I just ask please regarding the tax planning and guidance, what is the correct channel to go through for this please? Thanks. .....Further more, you have full access to our financial planning guidance, tax planning and guidance and all other unlimited personal support as and when required, including resourses such as here...
For reference my take on fees, 0.15% of f
k all is fk all so no issue for me. supersport said:
It's less than the initial 1.5% fee so happy days
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+1. thumb]http://emoticons.datahamster.com/beer.gif[/thumb]
However I too have a question - where will the levy come from ie sale of units or the request for a fresh transfer ?
I only say that as the last time I sent money to IM it was flagged to Lloyds bank as potentially fraud and my online access to my account was frozen until I visited a branch !
The transfer then worked fine but don’t want to tempt fate twice.
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