2000 Press Releases

American Century Ventures Makes Strategic Investment In Innovative Online Financial Services Company FOLIOfn


KANSAS CITY, Missouri – American Century Ventures, the strategic investment group for American Century, today announced an investment in FOLIOfn (www.foliofn.com), a Vienna, Va.,-based online financial services company.

FOLIOfn’s initial product—FOLIO Investing—allows investors to build, purchase, customize and control their own stock portfolios for a flat monthly or annual fee with no trading commissions.

“FOLIO Investing combines many of the best qualities of mutual funds, traditional brokerage services and online trading in a whole new way for investors to buy and trade,” said Steven M.H. Wallman, founder and chief executive officer for FOLIOfn, and a former Securities and Exchange Commissioner. “We are delighted to begin a relationship with American Century because of its role as an industry leader, and because we believe FOLIO Investing is a terrific complement to—and extension of—mutual fund offerings.”

FOLIO investors can choose from nearly 80 pre-selected Folios that can be customized however they wish, or they can build their own using FOLIOfn’s online tools. Any Folio can include as few as one or as many as 50 stocks, and investors also can choose to use the FOLIO Investing system to buy and trade stocks in their Folios one at a time, for the same flat fee.

“When you bet on a new company, you bet on its leadership,” said Harold Bradley, president of American Century Ventures. “In his years at the SEC, Steve Wallman proved to be a strong advocate for investors. This sense of looking out for the best interest of investors is a philosophy American Century shares and holds as a core value.”

American Century has a decades-long reputation for investor advocacy through the sponsorship of new ideas and adoption of innovative technologies. Founder James E. Stowers, Jr. was a pioneer in using computers for stock selection in the 1970s. Later, American Century was one of the first mutual fund companies to capture the Internet’s power by offering its investors online transactions in 1996. Just this spring, American Century launched Fund Advisor, making it among the first mutual fund companies to offer an impartial online advice tool.

“American Century understands that technology is changing the way investors behave,” said Bradley. “When we see a disruptive technology, product or company in the investment world—like FOLIOfn—we want to be actively involved and participate in that innovation, rather than sit on the sidelines and merely watch change happen in our industry.”

American Century Ventures’ mission is to make investments only in companies that complement the strategic direction of American Century and whose technology or products American Century can use to improve its business and help its investors.

“Through investments like FOLIOfn, American Century is actively supporting the development of products that offer investors control, choice and a personalized investing experience,” said Diane Mulcahy, vice president of American Century Ventures.

To date, American Century Ventures has invested more than $45 million in nine portfolio companies, including stakes in Optimark Technologies, TradePoint Financial Networks, W.R. Hambrecht & Co., Archipelago, Third Age Media, WorldStreet, Inc., Angry Monkey, RecordsCenter.com and FOLIOfn. Initial investments have ranged from $2 million to $8 million.

Additional information about American Century Ventures can be found at its Web site, www.americancenturyventures.com.

American Century is a mutual fund, brokerage and investment services company serving nearly two million individual and institutional investors. It was recently selected as one of FORTUNE Magazine’s 100 Best Companies to Work for in America. Through its broad selection of more than 70 mutual funds, the Kansas City, Missouri-based company manages more than $110 billion in assets. James E. Stowers Jr. founded the company in 1958 and serves as chairman. His son, James E. Stowers III, is chief executive officer and William M. Lyons is president and chief operating officer. For more information on company products and services, visit its Web site at www.americancentury.com.

About Folio Investing

Folio Investing, a division of FOLIOfn Investments, Inc., is an online brokerage that enables investors to manage stocks, ETFs, and mutual funds as integrated investment portfolios called “Folios” that deliver better control, greater transparency, and lower cost. Investors can create their own Folios, much like creating personalized ETFs or mutual funds, or invest in over 100 Ready-to-Go Folios representing market indices, sectors, geographical regions, target dates, and more. The Folio Unlimited Plan features unlimited commission-free trading in twice-daily windows for only $29 a month or $290 a year. Ready-to-Go Folios can be managed or unmanaged, are not registered investment companies, and are offered by FOLIOfn Investments, Inc., a registered broker-dealer. FOLIOfn Investments, Inc. does not provide investment, tax, or legal advice. FOLIOfn Investments, Inc., is a member of FINRA/SIPC.