2005 Press Releases

FOLIOfn And KPMG To Offer Turn-Key Managed Account Program for Financial Services Firms


VIENNA, Virginia – FOLIOfn, Inc., the innovative, Web-based broker-dealer and separately managed accounts platform firm, today announced it is working with audit, tax and advisory firm KPMG LLP to offer a turn-key wealth management program that will give financial services firms the ability to easily and cost-effectively provide managed account programs for their clients. The new Managed Asset Services program is targeted to investment advisory firms, independent broker-dealers, brokerage operations within other financial services firms, and bank trust and private client services units.

The program is fully outsourced and private-labeled, providing financial firms with a customizable set of services and full control over the identity, structure and cost of their programs. Other key features include streamlined program administration and Web-based technology that eliminates the need for specialized hardware or additional software. Financial firms can implement the program quickly with little up-front investment and at ongoing costs 25 to 30 percent lower than most competing offerings or internal programs.

“We believe we are offering the most efficient solution for an advisory firm, a regional broker-dealer or a mid-sized bank to move into the fast-growing managed account business,” said FOLIOfn CEO Steven M.H. Wallman. “By combining FOLIOfn’s patented technology with KPMG’s expertise in the investment advisory services field, we have created a flexible new alternative for financial firms that want to offer their clients sophisticated separately managed account or wrap-fee investment programs without a large commitment of their own resources and on a highly profitable basis.”

Under the agreement between the two firms, KPMG’s investment advisory professionals provide manager due-diligence and access to a range of independent separate account managers and mutual funds. This “best in class” slate of investment managers and funds represents a wide variety of investment styles and strategies. The flexible, open architecture of the platform also enables financial firms to easily incorporate their own in-house investment managers into the program.

KPMG also provides front-end tools for the program based on its proprietary Acumen technology. The tools allow investment advisors to efficiently “profile” their clients to determine their individual financial goals, risk tolerances, personal investment preferences and tax circumstances. The software then allows advisors to create customized investment programs to address clients’ specific objectives.

The program’s front-end elements are integrated with FOLIOfn’s Web-based portfolio automation, brokerage, clearing, record-keeping and reporting systems. FOLIOfn’s technology allows investment managers to actually manage their models on the firm’s platform. Client portfolios then can be driven directly from the models, with buy and sell orders automatically being entered for hundreds of client portfolios as the models change.

The flexible FOLIOfn platform allows multiple security types—equities, mutual funds, ETFs, ADRs, etc.—to be combined within a single model for truly customized separately managed account offerings. The firm’s patented, ATS-based trading system allows internal matching of buys and sells, allowing trading costs to be dramatically reduced. FOLIOfn’s fractional shares trading capability also enables financial firms to lower minimum investment levels and expand the market for their managed account services. The FOLIOfn technology additionally provides the efficiency of online performance reporting and delivery of statements and confirms, as well as online proxy voting.

All of the program’s services are delivered through a single portal that carries the sponsor financial firm’s own graphic brand identity. Sponsor financial firms also control all pricing to their clients. KPMG charges the sponsor firms a single, asset-based fee for the program.

“We are very pleased to be working with KPMG to offer this unique program, which opens doors to expanded business development opportunities for a broad range of investment advisors and asset managers,” Wallman said.

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.