2006 Press Releases

FOLIOfn Joins With Pentagon Federal Credit Union To Offer Folios Of Up To 50 Securities For One Low Fee Of $15


ALEXANDRIA and VIENNA, Virginia (PR Newswire) – Pentagon Federal Credit Union, the nation’s third-largest credit union, and the innovative online brokerage FOLIOfn Investments, Inc. today announced an exclusive offer that allows Pentagon Federal members to buy or sell Folios for only $15 each.

Folios are the brokerage’s unique baskets of up to 50 securities that can be purchased with no minimum investment. With Folios, investors can instantly own a diversified portfolio of securities. And they control the holdings as well as timing of gains and losses—all without the fees and costs of mutual funds.

More than 100 Ready-to-Go® Folios are available that invest in numerous sectors and investment styles. Or members can build their own Folios with stocks, funds or ETFs of their choosing.

The firm is also featuring four Ready-to-Go® Folios for Penfed members including “Support Our Troops,” which contains stocks of major U.S. defense procurement companies. This Folio had a total return of 15.6% for the year ended Sept. 30, 2006 (compared with a 10.6% return for the S&P 500).

“This offer will allow Penfed members to discover the revolutionary power, savings and simplicity of Folio investing,” said Stan Craig, chief marketing officer of FOLIOfn. “Never before have we offered a complete Folio for such a low one-time fee and with no monthly charges.”

Through FOLIOfn, Pentagon Federal Credit Union members can own a broad range of stocks, ETFs, mutual funds and ADRs. These securities can also be individually traded at FOLIOfn for $4 for buys and sells in twice-daily Windows—an unbeatable value compared to other major U.S. brokerages. Market orders are just $9. The FOLIOfn Window-tradable universe includes over 5,000 of the most widely traded securities.

“The customization of this program for Pentagon Federal members aligns with the value proposition that our members expect from us,” said Elizabeth Henkel, Executive Vice President, Business Development, for Pentagon Federal. “The FOLIOfn offering fits perfectly with our mission of providing low cost and high value with our core products. Best of all, the investment products offered by FOLIOfn are designed to be easily understood and used.”

FOLIOfn requires no minimum investment because the firm’s patented brokerage system can trade securities (including ETFs, stocks and funds) in fractions of shares. This allows customers to invest any amount of money, spread over a range of individually chosen securities. Members choose their securities, based on their own investment interests and risk profiles. They can, for example, own $50 of a high-priced stock such as Berkshire Hathaway. This kind of choice is unavailable to ordinary investors, unless they put up nearly $100,000 for one share at the current market price.

FOLIOfn’s system enables investors to benefit from diversification. They can customize their own Folios, which gives them control over their individual securities. Rather than receiving a capital gains distribution notice that the typical mutual fund issues each December, owners of Folios decide when to recognize capital gains and losses, minimizing their taxes.

About Pentagon Federal

Pentagon Federal Credit Union serves 720,000 members in the Air Force, Army, Coast Guard, Department of Homeland Security, Department of Defense, defense-related companies, and the Veterans of Foreign Wars. They were federally chartered in 1935 and serve members worldwide. Pentagon Federal Credit Union is one of the strongest and safest financial institutions, with $9 billion in assets. They offer mortgages, credit cards, automobile loans, personal loans, checking, money market savings and other accounts. Pentagon Federal Credit Union is comprised of member-owners and is headed by a volunteer Board of Directors.

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.