'Welcome to my Investor Blog. I will post news here so our Investors are kept up to date on where we are on this project. When I do so, I will send out email so you know to visit the site.
I would love active participation by our investors on this project! Many have sent me great articles about the competition and the Fund Management space. If you see anything we can use, please send it to me. I will post information as I receive it on the site. Thank you!"
NEW: Investment Portal
OmniFunds News released June 20.
This is IFM's first promotion.
"We were pleased to release our first OmniFunds News on June 20, 2017, containing several announcements:
See: OmniFunds News, June 2017 (PDF download)
New Professional "Super Funds"
OmniFunds will offer a premium "up-sell" as shown in our offering pro-forma. This will be called the "Professional" level, and we just released the first 2 OmniFunds at this level, which are designed to perform at a higher level.
I want to make sure all our IFM investors know that you will never have to pay to use the platform. We have upgraded all investors into the "Pro" level so you should see and be able to select the first 2 "Super Funds".
RIA Registration & 506c Offering
We are working securing our SEC Registration as an RIA firm now, and have several candidates including RIA in a Box. I should have a path on this within about a week. We are also pressing forward with our Public Reg D offering."
Defensive Stocks is one of our more aggressive OmniFunds. In June, this fund appreciated 17%.
"I am pleased to report that our Defensive Stocks OmniFund was up 17% for the month of June.
We have begun showing shading on the "historical" or "pre-launch" date ranges on our OmniFunds. The June record is 100% actual performance, as those of us who have been trading it can attest!"
Nirvana Club BASH
"The Nirvana Club BASH typically takes our attention from the 4th week in May through the first week of June. At this year's meeting, I took the time in one session to explain what we are doing with OmniFunds, and Jeff presented on The New OmniFunds Lab*.
OmniFunds BASH Presentations:
* In late June, we changed to call the OmniFunds Lab what it is, and to use "OmniFunds Professional" to mean the premium "Super Funds" which will be the up-sell at myOmniFunds.com at 2% of AUM. See July 4 post.
Posted July 4, 2017
Chatsworth TimeLine &
Clarification on their Participation for various events with IFM
"Chatsworth responded just ahead of the BASH to my request for a time line and their participation percentages. Due to the BASH and other events, I was unable to evaluate it then. But I am finally back to reviewing their proposal. Several investors indicated they thought we could find a better partner. This proposal clarifies a lot of what they envision as to how they could help us,
"Chatsworth Securities representives met with me on the phone yesterday to discuss questions on their proposal.
The phone call video is indexed. I appreciate investor feedback I received on their proposal, and welcome any additional thoughts you may have after listening to this call. I expect to receive additional info from them soon.
In the call, I pointed out that Tim's bio is not on the site. I just received a background document today.
Marketing the Offering
We met with RegDResources yesterday and gained access to their extensive Broker-Dealer Network. We have also compiled a list of regional private equity firms. Before contacting these resources, we will test our pitch with Oaklyn Consulting next week.
RE: Warrants. We sold all the Warrants we had for the 506c offering. My sincere thanks go to all those who requested participation.
"Regulation D Resources has completed our PPM, which begins our raise process for IFM. Tonight I held a webinar on the PPM, Warrants, as well as our Strategy.
The video is 60 minutes long and is indexed. Click here to visit the Reg D investment portal. Registration is optional since the documents are linked below."
Updated May 2
"A s I mentioned in my April 17 video, I came to know Chatsworth through Mike DeNio, who left Transcend Capital to join them this year.
On Monday, I discussed their proposal to market and promote OmniFunds to their many contacts in the financial space, and recorded the call.
The video is 30 minutes long and is indexed. I think the most interesting part is "Value to IFM" in which Lee explains his vision for our product.
I received an Engagement Letter from Chatsworth Friday (April 28) and followed up with them on Saturday. I now have all correspondence and documents, including the Engagement Letter, linked in the following PDF:
I have received great feedback from investors on the recorded call I posted on April 26. Please continue to send your thoughts and suggestions. Today, we received word that RegulationDResources.com has completed our 506c offering and web portal. My next posts will be about the offering...
"The integrated OmniFunds Lab was released into QA on Friday. This is a major milestone for the OmniFunds project! We expect The Lab to be deployed for user access soon. Today, I created a presentation showing the Lab, and discussing our AUM model, 506c offering, and how we are moving into the institutional space with various partners.
One of the topics in the video is Chatsworth Securities. Their recent proposal can be downloaded here:"
"Here in Austin, we are fortunate to have a hotbed of fintech activity. Last night I had the good fortune of hearing a talk by Chris Zahner, the creator of Schwab Intelligent Portfolios, at an Austin FinTech Meetup.
Chris studied engineering at UC Davis, and began working for Schwab in Austin in 2010. He was selected to head up the Schwab Intelligent Portfolios division in July 2014, and was given the task of catching up with the existing Robo Advisors as quickly as possible. Pulling resources from Schwab, they launched the platform in March 2015.
Schwab’s Robo Advisor is pretty much a standard Robo offering. It trades its own ETFs because of the residual revenue inherent in ETFs. And like almost all other Robo Advisors, they promote the platform's low fees, re-balancing and tax-loss harvesting features as reasons to sign up..."
"Now that the final assets are coming together, we can start getting the word out to investors and participants in the FinTech space to generate interest in our offering and understand how we need to adjust it.
I produced a 10 Minute video that explains the enormous opportunity in the Robo Advisor space, why OmniFunds is a superior approach and how our first OmniFunds deliverable is already beating the Robo Advisors.
In the original IFM offering documents, two specific options were discussed for financing for the end of 2016 - a Public Regulation "D" (506c) offering, a Regulation A+ "Mini IPO", or early acquisition. My team is currently evaluating these options with Oaklyn Consulting. At this point the Public Reg D path seems to have the most advantages.
As I mentioned last week, we are pushing now to get the Probability Allocation Model and OmniFunds Lab deployed for users. We are also using the above video to make contacts with institutional players, venture capital firms, and other capital networks.
A very important step towards our acquisition goal is to generate a track record, and I appreciate those IFM investors who have established OmniFund accounts. I believe that once we can deploy the A.I.-based funds, we will show dramatic improvements in returns over other options in the marketplace. I will keep you informed as these new assets are deployed."
"The new web site at www.myomnifunds.com* has a clean message and a simplified My OmniFund page. Feedback has been positive, with some enhancements requested (such as, the ability to see actual account progress from day to day) and we are working on those. Thank you.
* Web Design by FootHills Creative
We have been working with Oaklyn Consulting on how to begin cultivating acquisition interest among the various players. I created a 10-minute video for this that I plan to publish here tomorrow.
As far as I know, we are the ONLY company applying probability to the allocation problem. We are about to release a MAJOR enhancement to the Genetic Algorithm called Frequency Domain, which we believe will provide enough rules to accurately assess probability of movement on any symbol. My team is testing it now; we are just days away from this announcement.
We have been using a spreadsheet upload method in the OmniFunds Lab, but are building a web-centric version to make it easier to define new OmniFunds (described in my September 22 post). This "pro" feature will also be released to OmniFunds users in mid-February."
"As we begin to demonstrate OmniFunds to the financial services community, it will be important for our staff to focus on the OmniFunds mission (as opposed to other products that generate cash flow). Therefore, we have decided to offer a limited extension on our March Regulation "D" Offering.
My team is currently working on the items mentioned in the "Current Focus" section of the presentation. You can expect more blog posts as the new assets are released. We are tremendously excited to be at this juncture in the OmniFunds project, and want to say "thanks" for making all of this possible."
Note: The October extension was fully subscribed in November.
"I am pleased to announce that Version 1.0 of our OmniFunds web site is now live. The questionnaire is accessed by clicking "Get Started" on the home page. The powerpoint and video for my presentation to OmniFunds owners are here:
This is a major milestone for our project. We are moving ahead on the other items on our agenda, including:
Now that the site is live, I am working with our designer to improve the content for pushing into both the consumer the investor communities."
"Our team worked hard to meet my October 1 goal for the first OmniFunds web site release. I will say that we are close. In this update, I show some of the pages (Questionnaire and Main Account Page) and discuss the remaining things we need to do. I expect to get there this week.
We have also spent some time investigating the Registered Investment Advisor space. Various articles characterize RIAs as either fearing the Robo onslaught or wanting to leverage the technology for their clients. In this investigation, we uncovered special clearing firms that offer fixed AUM rates for RIAs who want to manage client funds without paying commissions. This opens up additional possibilities for us that I discuss in the presentation.
As I indicated in my prior post, I will make a broad announcement to our OmniFunds users and all our customers when the key features have been completed. And of course, I will post here and let you know."
"I am pleased to report that we have completed the OmniFunds Server Engine that calculates OmniFunds from the Project Files we have been uploading to the server. Using these tools, we have also completed 3 OmniFunds that trade different assets.
You can experience this now by clicking the Get Started link on the image at the top of the page to get to the questionnaire. Answer the simple questions and you will then see the OmniFunds page with a SAVE option. The three OmniFunds are listed on the left side of the page.
Of course, we are still adding features, including the investor questionnaire, account pages, and brokerage connection. I will make a broad announcement to our OmniFunds users and all our customers when the key features have been completed.
I published a video presentation explaining the assets we have built and deployed since my last update, including the OmniFunds Server Engine, OmniFunds Laboratory, Risk Controls, Overlays and more.
Watch for more news as we complete additional features leading to release of the project.
"About a month ago, I hired 360 Partners to study the Robo Advisor & Investment space to guide us as to the right kinds of content we should add to MyOmniVest.com to optimize interest, This analysis is based on the previously reviewed keywords pertaining to the space...
I just received their report, which includes recommendations on content development. 360 Partners searched 6 different areas ranging from unsophisticated (consumer investor) to more professional topics.
As one might expect, specific searches for Robo Advisors are dwarfed by those for general investment advice and "how to invest." This indicates we need to create a content map that is focused on education about investing in ETFs, with an explanation of the automated approach. I am meeting with 360 Partners tomorrow afternoon to discuss the report and Content Creation Plan and will add a blog post about that later this week. (Quick Update 9-22-16: Post is pending)
"Several in our group have sent me news on Cambria Investments providing their Trinity Portfolios to Betterment customers. I really appreciate getting information like this! In my opinion, this is really good news for us for several reasons that I thought I would post in the Blog.
If you look at the Cambria FAQ, you can read more information about the Trinity Portfolios. If you click "How do I know which Trinity Portfolio is right for me?" you will see how these portfolios are constructed. They are simple allocations, with increasing exposure to stocks as you move up from "1" to "6" on the risk scale. Allocations are fixed, with no mention of switching.
We note they have introduced a "Trend" component, which increases with higher risk. This is related to our Ranking concept, though it is undefined. Our offering goes well beyond this to include Market States and Filtering. Hopefully, the curves we show will illustrate the point. We note that the Trinity Portfolio page does NOT show performance of any kind.
My Conclusion: The fact that Betterment is adopting portfolios from outside parties and reducing fees is very exciting. Competition is a good thing in this market, because our offering can provide a competitive advantage for any of these firms. Our revenue advantage is the "Artificial Intelligence Up-Sell" we will provide - something I don't see any other company doing."
"A lot has happened since my last update after the BASH. This Post is about the progress we have made, and our current plan to bring OmniFunds to market. Our original goal: Complete a "Minimum Viable Product" in September so we can begin promoting OmniFunds in October.
In the above report, I discuss the progress we have made since launching the OmniFunds project in April. The biggest news is our implementation of a server connection to Interactive Brokers, which will be a benefit for all our customers, but a huge benefit for OmniFunds.
We also closely studied and implemented Modern Portfolio Theory allocation, leading us to the first OmniFunds Web Site. With key technologies in place and an initial web marketing partner chosen, we are now on a fast track to bring OmniFunds up and drive traffic to the site."
"Nirvana Club BASH 2016 unveiled exciting new technology that has resulted from our work on OmniFunds. Please watch the BASH Proceedings at the Nirvana Club Web site:
In this presentation, you will learn about the discoveries we made in May on using the Genetic Algorithm for ranking symbols, through the use of new indicators based on the GA component. This is enabling us to apply a large number of technical factors to the problem, so we can extract the proper model for general fund switching.
The Artificial Intelligence component will be in the "upsell" that is shown in the Pro Forma. From what I am seeing, A.I. based ETF Ranking will dramatically improve the selection of ETFs to trade, identifying those that have the highest "technical" chance for success.
In June, we are continuing to develop Genetic Algorithms for Ranking while working to complete the OmniFunds Application that will be ported to the web site."
"I am pleased to announce the start of my Investor Blog, which I will keep updated for our investor community. Here is a quick look at what's happening at IFM/Nirvana right now:
Since we closed the investment in April, we have been working to create the engine that will first be released in the software version of OmniFunds (the Prototype) and then ported to our servers to run on the Web with Mobile Access.
We have seen some very good outcomes using the Prototype. A few weeks ago, the first Sector Trading application was provided with Release 5. To me, these early OmniFunds clearly show that our application has potential to outperform virtually all other fund management approaches in use today.
But we need to move FAST this summer. Building OmniFunds through hypothesis and simulation tests is very time consuming. The next advance must facilitate the rapid development of new OmniFunds methods that incorporate varying degrees of Reward and Risk at the user's specification.
Our research the last few weeks has yielded a path that we believe is going to propel OmniFunds well beyond anything any of us had originally envisioned. Essentially, it has to do with applying Artificial Intelligence methods to identify those ETFs that are likely to gain ground in each Market State.
My next Blog will show how we are using these amazing tools to create powerful new OmniFunds that can be readily deployed in the prototype, while at the same time yielding a path to take the coded technology to the web, making it easy for the average investor to engage. "
"OmniFunds started as a promising idea about a year ago. ETF switching just made sense, and we knew we had the tools to attack the problem. But we had no idea of the Tsunami that was forming in the fund management space. Who would have thought that by Q1 of 2016, in an otherwise uninteresting private capital market, that Robo Advisor firms like Wealthfront and Betterment would raise additional hundreds of millions of dollars?
We greatly appreciate all those who came in on the start of OmniFunds. We met and exceeded our first fundraising target, reaching the extended goal of $1.5m by the end of April. Now, I am engaging my entire team to push on the technology and marketing fronts so we can get this amazing product out into the world this summer to bring on subscribers and begin cultivating interest.
Everyone at Nirvana knows that this is our chance to hit the market hard with everything we've learned. We're on board, and are glad you are, too."