Press Releases

2017

Folio Investing Acquires More Than 200,000 Brokerage Accounts from LOYAL3

May 24, 2017 -- McLean VA — Folio Investing has acquired more than 200,000 brokerage accounts from LOYAL3, a San Francisco–based online broker–dealer. Folio converted the LOYAL3 accounts to FolioFirst, the new home for LOYAL3 customers, on May 22, 2017. more

FOLIOfn, Inc. Partners with Humane Society of the United States, Offers Investors and RIAs New Animal-Welfare Security Filters

January 23, 2017 -- McLean VA — FOLIOfn, Inc., the parent company of Folio Investing and Folio Institutional, has teamed up with The Humane Society of the United States (HSUS) to give investors and financial advisors the ability to avoid investing in companies known for behind-the-times animal welfare policies. more

2016

Navy Federal Financial Group Partners with Folio Investing to Create Next Generation Digital Investing Services

November 30, 2016 -- Vienna VA — Navy Federal Financial Group (NFFG) is working with Folio Investing to power two new, innovative investing services: a unique self-directed, online investing platform for individual investors and a cutting-edge robo advisor. more

FOLIOfn, Inc. Acquires Leading Responsible Investing RIA, First Affirmative Financial Network

November 1, 2016 -- McLean VA and Colorado Springs, CO — FOLIOfn, Inc. announced today that it has acquired First Affirmative Financial Network, one of the nation’s most prominent registered investment advisor firms specializing in sustainable, responsible, impact (SRI) investing. more

VIA Folio Now Supports Private Investing in Cannabis-Related Businesses

October 27, 2016 -- McLean VA — Investors and some cannabis-related businesses can now turn to VIA Folio for one-stop, capital raising and innovative brokerage solutions. more

Infinity Financial Services Offers Folio Institutional Model Management Platform

August 11, 2016 -- Oakland CA — Infinity Financial Services now offers its financial advisors access to Folio Institutional’s Model Manager Exchange (MMX). MMX is an online network of investment models designed to help advisors achieve new levels of speed and transparency. more

Folio Institutional’s Model Manager Exchange Adds Morningstar Managed Portfolios ETF and Mutual Fund Models

July 7, 2016 -- McLean VA — Folio Institutional has added 31 Morningstar® Managed Portfolios℠ ETF and mutual fund models to its Model Manager Exchange (MMX). Folio provides MMX, a network of thirdparty investment models, to registered investment advisors (RIAs) who seek more efficient, costeffective asset management solutions. more

Folio Investing and Folio Institutional Offer A Way to Trade NextShares™

February 26, 2016 -- McLean VA — Folio Institutional and Folio Investing welcome financial advisors, institutions and their clients to the first brokerage platform where NextShares exchange-traded managed funds (NextShares) may be traded. more

Folio Institutional Helps to Solve the Fiduciary Duty Puzzle with KTRADE

March 30, 2016 -- McLean VA — Folio Institutional, the comprehensive one-stop platform for registered investment advisors (RIAs) that combines clearing, custody and a broad array of innovative technology services, announced today that it has joined with North American KTRADE Alliance, LLC (KTRADE). more

Folio Institutional’s Greg Vigrass to Discuss Adding Value in a Digital World At 2016 T3 Advisor Conference

February 8, 2016 -- McLean VA — Folio Institutional, registered investment advisor’s (RIA) single-source solution for clearing, custody and innovative technology services, announced today its president, Greg Vigrass, will present his perspectives on the robo industry at the 2016 T3 Advisor Conference. more

2015

Folio Institutional Identifies Top Wealth Management Industry Trends for 2016
Significant Changes in FinTech, Behavioral Finance and Compliance Requirements Among Likely Developments in 2016

December 21, 2015 -- McLean VA — As the wealth management space continues to grow and strengthen, several trends are emerging that will define an advisor’s ability to attract and deliver value to clients. Folio Institutional, a leading provider of custody and brokerage services to financial professionals and institutions nationwide, servicing billions of dollars in assets, today released its inaugural list of Top Advisor Industry Trends. more

D.C.-Based Matchbox Food Group LLC Places Debt Offering on Newly Launched VIA Folio Private Capital Network

September 21, 2015 -- McLean VA — Folio Investing and Folio Institutional today announced the launch of VIA Folio: Folio’s Private Capital Network, an online equity and debt funding platform designed to connect investors, brokers and advisors with private companies seeking funding. more

Folio Announces Plans to Offer NextShares™ Exchange-Traded Managed Funds

September 8, 2015 -- McLean VA — Folio Investing and Folio Institutional, leading online brokerage services for individual investors, financial advisors, institutions and their clients, today announced plans to be the first broker-dealer to offer NextShares™ exchange-traded managed funds directly to individual investors, advisors and institutions. more

Folio Institutional Welcomes Curian Capital Advisors, Offers Seamless Migration Path

August 3, 2015 -- McLean VA — In the wake of Curian Capital’s recent decision to stop accepting new advisory clients, Folio Institutional, an online brokerage platform designed for advisors and brokerdealers, is offering an easy and seamless migration path to assist in quickly placing clients on its modern, fractional-share, multi-sleeve portfolio management platform. more

Folio Investing Acquires Accounts of BUYandHOLD
Pioneering Brokerage Firm Continues to Expand Retail Business and Commitment to Provide DIY Investors with a Smart Alternative to Fad Investing

February 19, 2015 -- McLean VA — Folio Investing announced today that it has acquired the accounts of the online brokerage firm BUYandHOLD effective February 17, 2015. For over 15 years Folio Investing has been an innovator in online brokerage services offering retail investors a way to participate in the securities market and achieve meaningful diversification, regardless of account size. more

Folio Introduces Another Breakthrough Technology Tool For Advisors
Advisor Dashboard, a web-based practice management and productivity tool, streamlines advisors’ day-to-day operations and increases efficiencies and account servicing with a customizable, holistic business view

January 28, 2015 -- McLean VA — Folio Institutional, a division of Foliofn Investments, Inc., announced today the launch of its Advisor Dashboard, a web-based productivity tool that helps advisors and home office administrators manage their businesses more quickly and efficiently. An innovative approach to a classic tool, Advisor Dashboard offers more than 60 customizable widgets, offers advisors actionable insights to help them better understand and react to the health of their business, reduce errors and increase client satisfaction. more

2,000 commission-free trades offered to Folio Investing Basic Account Clients
Free access to Folio’s proprietary Windows Trading Platform, fractional shares, and 160 Ready-to-go-Folios

January 26, 2015 -- McLean VAFolio Investing today announced a special offer for all of its Basic Plan customers. Until April 30, 2015 all of these accounts will be upgraded to Folio’s Unlimited Plan at no additional charge. more

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2014

Folio Institutional launches Private Placement Custody Platform for Brokerages, Funding Portals, Issuers, Investors and Advisors
API driven online offering streamlines the entire offering process.

October 23, 2014 -- McLean VA — Folio Institutional today announced the availability of the Folio Private Placement Platform—an innovative REST API driven private offering and custody platform that enables a seamless online brokerage experience. The depth and breadth of the platform make it ideal for firms that have, or are building their own platforms to facilitate offerings from private issuers to eligible investors. more

Folio Institutional Rolls Out State-Of-The-Art Technology To Transform The Way Advisors Do Business
Arms RIAs and IBDs with a powerful new competitive advantage; enhances the investor experience while automating advice and account servicing

August 11, 2014 -- McLean VA — Folio Institutional, a division of Foliofn Investments, Inc., today announced Advisor Connexion, a unique technology platform that gives advisors a powerful new competitive advantage—a wholly automated client offering that will also substantially lower the advisor’s operational costs—allowing firms to vastly expand the markets they currently serve. more

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2013

Folio Investing Celebrates Its Target Date Folios’ Five-Year Record of Outperformance
Folio Investing’s Successful ETF-Based Alternative to Legacy Target-Date Funds Offers Superior Diversification, Risk Targeting and Flexibility; Firm Seeks Distribution Partner to Broaden Availability

MCLEAN, Va., Jan. 24, 2013 — Folio Investing announced today that, over the five years since they were brought to market in December 2007, its Target Date Folios have significantly outperformed traditional target-date funds. The Folios have provided both higher returns and lower volatility than the competing funds during this tumultuous period. more

Target Date Folios, like target-date funds, are designed for investors planning and saving for retirement. A 2025 Target Date Folio, for example, is for investors who expect to retire in 2025.

“The performance of our Target Date Folios over the past five years proves that improved design and better diversification actually do provide tremendous value. For many though, traditional target-date funds are the only available target-date choice in their retirement plans. But, investors deserve better. That’s why we believe it is important to join with a distribution partner who can bring Target Date Folios to a much broader base of investors,” said Steven Wallman, Founder and CEO of Folio, and a former Commissioner of the U.S. Securities and Exchange Commission. “Target Date Folios can be offered not only as ‘Folios’, which are unique to the Folio Investing platform, but broadly as collective investment trusts and mutual funds,” Wallman said.

The Target Date Folios’ outperformance is due to a number of design initiatives pioneered and proven valuable by Folio Investing.

  • A Broader, More Robust Diversification Strategy. Many target-date funds’ returns are, effectively, simply a blend of a U.S. bond index and a U.S. equity index fund, such as the S&P500. When the stock market is especially volatile though, such a portfolio is also still volatile. Target Date Folios are far more diversified, including not just U.S. stocks and bonds, but also commodities, REITs, Treasury Inflation Protected Securities (TIPS) and other asset classes. Theoretically, the result should be lower volatility and higher returns at any given risk level. And, that’s what Folio Investing’s Target Date Folios have proven over the last five years.
  • Greater Choice and Customization. Target Date Folios come in conservative, moderate and aggressive risk levels for each target year, and uniquely can be further customized by investors or advisors as they see fit. That allows the Target Date Folios to be a much better match to an investor’s needs than can be provided by any “one-size-fits-all” fund.
  • Intelligent Risk Targeting, Not Simple Asset Allocation. Target Date Folios target specific risk levels over time. By contrast, target-date funds traditionally target specific asset allocations over time. But when market conditions change adversely, clinging to defined asset allocations means investors are exposed to far more risk than expected. Target Date Folios, instead, use a changing asset allocation as the means to achieving targeted risk levels, as opposed to the asset allocation being the end itself.

The Target Date Folios’ five-year track record proves the power of these innovations in design. While mitigating risk, the Folios generated higher returns than their target-date fund counterparts.

Some Specifics

Specifically, the Target Date Folios for the years 2010 through 2045 (i.e., the Folios for target retirement dates at five year intervals including and between those dates) provided higher returns and lower volatility from their inception date, December 21, 2007, through December 31, 2012 as compared to the three largest target-date funds, for the same target-date years. The average annual return for Target Date Folios is, on average, 1% per year more than the largest target-date funds, which would have an enormous impact on portfolio returns over an investor’s lifetime. For example, a range of analyses conclude that an increase in portfolio performance of 1% per year corresponds to a lifetime increase in wealth accumulation of 20%1.

Even over just the past five years, the realized increase in portfolio value is substantial.

For example:

  • An investment of $100,000 in the 2025 Moderate Target Date Folio since its inception on December 21, 2007, would have been worth $116,900 at the end of December 2012, while the same investment in the three largest target-date fund families’ 2025 target-date funds would be worth an average of only $110,800.
  • An investment of $100,000 in the 2045 Moderate Target Date Folio since its inception on December 21, 2007, would have been worth $112,300 at the end of December 2012, while the same investment in the three largest target-date families’ 2045 target-date funds of $100,000 would be worth an average of only $106,300.

For a more detailed summary of Target Date Folios’ performance, view our quarterly fact sheet on Target Date Folios, as well as our whitepaper, “Improving Target Date Offerings: Lessons Proven” on our Target Date Performance Page. In addition, Folio Investing Cumulative Gain/Loss data for Target Date Folios is available on request.

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”2 that deliver control, transparency, and low 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 investing ideas, 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.

1 For a discussion of this calculation, please visit our blog, Portfolioist.com.

2 Folios, which are special baskets of securities with specific features offered by Folio Investing, can be unmanaged, or managed by Folio Investing, by third parties or by the investor or an advisor, and are not registered investment companies.

Posted on PRNewsWire

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2012

Next Generation Portfolio Unitization Solution Announced by Folio Institutional and unitZXchange
Will Boost Use of ETFs and Mixed Model Portfolios by Qualified Retirement Plans

McLEAN, Virginia, February 14, 2012 — A next generation portfolio unitization service was announced today by Folio Institutional and unitZXchange LLC. This service allows investment advisors, model managers, and recordkeepers to more efficiently provide customized model portfolios, including mixed model portfolios, to retirement plan sponsors and participants. more

The new service is powered by Folio Institutional’s unique and patented trading and custody technology and unitZXchange’s unit accounting capability.

The companies’ unitization solution is expected to drive adoption of exchange-traded funds and mixed model portfolios by retirement plans, since the product allows any model portfolio—consisting of any mix of securities (funds, ETFs and/or individual stocks)—to be unitized. Recordkeepers, who have typically required or preferred unitized investments and Net Asset Value pricing, are no longer restricted to the trading of mutual funds.

Through the unitization service, unitZXchange creates a single unit value for model portfolios which are custodied on the Folio Institutional platform. As a result, retirement plan participants are easily provided information through existing systems that provide unit value reporting. “Because the model portfolios can now be reported with a unit value, it’s very easy for the recordkeeper to trade them through their normal daily valuation process,” said Alan Smith, vice president of retirement services, Folio Institutional. “And of course the actual model is still very much customizable. It can be easily rebalanced and updated—which can include the use of fractional shares of ETFs or individual stocks—by the advisor or investment manager through Folio’s model management system.”

While Collective Investment Trusts can offer a similar result, a major disadvantage with CITs is that they are generally only cost-effective with considerable size. The Folio / unitZXchange relationship provides a unitization solution, which offers NAV-style investment, that is both cost-efficient and accessible to recordkeepers and retirement plans of all sizes.

“Portfolio models can be offered to multiple plans and through multiple recordkeepers cost effectively because our unitization process does not require National Securities Clearing Corp. registration or a significant amount of assets under management, as would a collective trust or mutual fund,” said Smith.

The unit value and trading data of the portfolios is downloaded daily to the retirement plan’s designated recordkeeper. Online access provides price history, detailed fee accruals, and account statements. The service allows for multiple, automated fee accrual and invoicing arrangements. Fee accrual information is fully disclosed.

“This combination of the Folio and unitZXchange technologies provides plan sponsors with a significant new ability to provide customized investment management solutions to their participants,” said Larry Harris, president of unitZXchange LLC. “We have created a truly efficient way to allow investment managers to provide their services to 401(k) plans on a volume basis.”

Financial advisors or retirement plan sponsors who would like to learn more about the unitization solution may contact Alan Smith at 803-631-5078 or smitha@FolioInstitutional.com; or Larry Harris, at 703-869-2551 or lharris@unitZXchange.com.

About Folio Institutional

Folio Institutional is a leading custody and portfolio management service, delivering innovative investment solutions to financial professionals and institutions nationwide. Folio Institutional’s proprietary trading platform enables financial advisors to manage stocks, ETFs, and mutual funds as integrated investment portfolios (“Folios”) that deliver better control, greater transparency, and lower cost. Advisors can create their own Folios, much like creating customized ETFs or mutual funds, and make them available to investors. They can also access over 100 Ready-to-Go Folios representing market indices, sectors, geographical regions, target dates, and more.

For advisors who are retirement plan specialists, Folio Institutional offers Folio(k), an effective, transparent and low-cost alternative to traditional 401(k) plans.

Folio Institutional also operates the Model Manager Exchange, which allows advisors on the platform to license their portfolio models or strategies to other professionals.

A unit of FOLIOfn Inc., Folio Institutional is based in the Washington D.C. suburb of McLean, Va. FOLIOfn Inc. also includes a retail online brokerage division, Folio Investing.

About unitZXchange

unitZXchange (uZX), headquartered in Fredericksburg, Va., provides a service for creating a net asset value (NAV) equivalent for portfolios that consist of various types of assets. This NAV may be used by recordkeepers and trustees to facilitate reporting and trading of assets that are difficult to manage in retirement plans with the traditional daily recordkeeping systems for 401(k), 403(b), non-qualified and other individual account retirement plans. These portfolios are denominated in units similar to the way mutual fund shares are priced. They usually consist of an asset or group of assets in a portfolio of securities which combines with a cash equivalent to facilitate trading and settling of trades.

The company’s principals have more than 75 years of experience in the investment and retirement plan field, and have been unitizing retirement accounts for over 15 years including company stock, managed portfolios, managed separate accounts and group annuity contracts. unitZXchange’s staff has unitized assets in excess of $850 million with individual accounts ranging from $100,000 to $100 million.

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2011

Conventional Target Date Design Becoming Obsolete, Says Folio Institutional
Custodian’s Innovative Risk-Based Structure Better Serves Target Date Investors’ Needs

McLEAN, Virginia, July 18, 2011 — While many leading Target Date Funds have adjusted their asset allocations to repair recently identified deficiencies, the largest funds still appear to follow an outdated design approach, according to asset custodian Folio Institutional. more

Target Date investments are popular with individual investors and retirement plan administrators, due to convenience and the assumed protection for the investor. Over the life of a Target Date Fund, the asset allocation mix automatically becomes more conservative as the investor’s targeted retirement year approaches.

But Target Date Funds were severely tested during the stock market meltdown of 2008 when the funds dropped more than expected, and one 2010 Target Date Fund fell even further than the stock market itself.

Recent moves by several of the fund companies to incorporate some non-traditional assets into their fund allocations, along with strong stock market performance in 2010 and 2011, has led to a sense that Target Date Funds have solved their shortcomings. But there is room for more improvement, according to Folio Institutional founder Steven Wallman.

“Most Target Date Funds apply an approach to asset allocation that can be enhanced,” said Wallman. “Our analysis shows that these funds are not as well diversified as they could be beyond stocks and bonds—which are correlated with those stocks—thereby leading to a high exposure to risk from a decline in stocks.”

In a refinement to this approach, Folio Institutional launched its own series of Target Date investments in late 2007. The design of the Target Date Folios was driven by what the custodian calls “relational diversification”—an advanced institutional-level strategy which focuses on managing a portfolio’s risk level and the evolving relationships between asset classes.

“Achieving true diversification requires much more than simply combining stocks and bonds in a portfolio,” said Wallman. “Financial research over the past two decades (and subsequent changes in strategic asset allocation by institutional investors) suggests that better results can be achieved by analyzing the relationships between sectors over time, and diversifying to a far greater extent than is traditionally done. We utilize the correlations—actually the lack thereof—between asset classes and sub-asset classes to help increase diversification and target appropriate risk levels. This helps to provide more consistency in performance, reduces risk for a given level of expected returns and lowers the impact of economic variability.” The initial research on the Target Date Folios in 2007 suggested that others’ traditional Target Date strategies might be losing 1% or more in annual return due to under-diversification1 and, more importantly, taking on higher risk than needed.

In addition to the standard equity and bond components, the Target Date Folios include allocations to:

  • commodities;
  • inflation-tracking bonds (TIPS);
  • real estate assets;
  • explicit allocations to infrastructure stocks such as utilities; and,
  • other asset classes.

(See graphs depicting asset allocation glide paths.)

The performance of the Target Date Folios validates this innovative approach to asset allocation. Since their inception in late 2007 (a period of just over 3.5 years), the average return of the 2010, 2020, 2030 and 2040 Moderate Target Date Folios was 1.88% higher—per year—than the average return of the corresponding Target Date Funds2 from the three dominant mutual fund companies, and 2.62% higher per year than the average of all corresponding Target Date Funds that have been in existence over this period. Note: Target Date Folio performance numbers include the expense ratios of the underlying ETFs held in the Folios.3

“The long term impact of a performance improvement of 1% a year is significant,” Wallman noted. “The Department of Labor and others have estimated4 that a 1% increase in return over an investor’s working lifetime results in almost 30% higher wealth at retirement — in other words, 30% higher retirement income.”

According to Wallman, the need for Target Date Funds to achieve superior and intelligent diversification constitutes a key public policy issue. “Target Date Funds are the default core investment in 401(k) and other defined contribution plans,” he said. “A more perfected design will improve the chance of a financially secure retirement for hundreds of thousands of Americans—and we can do better.”

About Folio Institutional

FOLIOfn Investments Inc. delivers innovative investment solutions to financial professionals and institutions through Folio Institutional. At the core of all Folio Institutional products and services is its propriety trading platform. Folio Institutional enables users to manage stocks, ETFs, and mutual funds as integrated investment portfolios (“Folios”) that deliver better control, greater transparency, and lower cost. Advisors can create their own Folios, much like creating customized ETFs or mutual funds, and make them available to investors. They can also access over 150 Ready-to-Go Folios representing market indices, sectors, geographical regions, target dates, and more. For more information, please visit www.FolioInstitutional.com.

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.

1 Folio Investing White Paper: FOLIOfn and Target Date Folios, Dec. 22, 2007 (available on request).

2 A total of 12 return figures are used to calculate the average return: the returns of the 2010, 2020, 2030 and 2040 Target Date Funds from the three dominant fund companies.

3 Investors who hold any Target Date investment in their 401(k) or other retirement plan also usually pay an additional asset-based fee covering administration, record keeping and other charges. For retirement plans using Folio Institutional’s Target Date Folios, participants typically pay a trading and custody fee.

4 Employee Benefits Security Administration, U.S. Department of Labor, publication: A Look at 401(k) Plan Fees: http://www.dol.gov/ebsa/publications/401k_employee.html.

As with any investment, investments in Target Date Folios are subject to investment risk including the loss of the principal amount invested. Investors should consider the investment objectives and risks of the Target Date Folios before investing. For more information regarding the Target Date Folios, please visit the website: www.folioinvesting.com. Past performance is no guarantee of future results.

Next-Generation Target Date Investments Outperform Traditional Funds
ETF-Based Approach Offers Custom Risk Levels, from “Conservative” to “Aggressive”

McLEAN, Virginia, February 17, 2011 — A series of Target Date investments based on an innovative asset allocation strategy significantly out-performed the industry over the past three years, while delivering more personalized risk levels for investors, according to FOLIOfn Investments Inc. more

The custody and brokerage firm launched its series of Target Date Folios in late 2007. The goal was to provide better asset diversification and more rigorous risk management than traditional Target Date Funds, which have been the focus of some criticism in recent years. The Target Date Folios are composed of exchange-traded funds (ETFs), and were designed from the start with multiple risk levels — conservative, moderate and aggressive — to better match the specific needs of investors. Since 2007 financial advisors and 401(k) plans have had access to the Target Date Folios through asset custody unit Folio Institutional, and they are available to retail investors through online brokerage Folio Investing.

A comparison of annualized returns shows that the 2010, 2020, 2030 and 2040 Moderate Target Date Folios have outperformed the average corresponding Target Date Funds by more than 2% per year, even after applying a higher-than-likely 1% reduction in return to cover brokerage and other costs.*

For a detailed comparison of annual and cumulative results, see Folio Institutional’s briefing paper, A Better Approach to Target Date Strategies.

These results were achieved during a 36-month period which included both the 2008 stock market crash and the significant market rebound in 2009 and 2010. “The Folios performed as designed: They kept close pace with the industry during the bull market, but really excelled during the bear market period,” said FOLIOfn CEO Steven Wallman. “We believe that we have effectively enhanced the traditional structure of Target Date mutual funds offered by the majority of the industry.”

The Target Date Folios go beyond traditional diversification strategies to specifically include assets whose returns are not correlated with the general market. In addition to standard asset-class allocations, the Target Date Folios include allocations to real estate and commodities, partially for protection from inflation. Also included are infrastructure stocks, including transportation, telecommunications and utilities—asset sectors which tend not to move in tandem with the market.

The diversification goes beyond stocks. Fixed Income dollars are allocated not just to traditional (or nominal) bonds, but also to TIPS, government bonds that factor inflation into their payoff. “TIPS and other inflation-tracking assets are remarkably under-represented in other Target Date Funds,” said Folio Institutional strategic consultant Geoff Considine. “That is surprising, given the extensive research as to their value in retirement portfolios.”

According to Wallman, the overall concept of Target Date investing is solid. “Many people need help building diversified portfolios that are appropriate for their age and situation,” he said. “We think that the performance of Target Date Folios substantiate the Target Date concept—with better execution applied—as sound.”

About FOLIOfn Investments Inc.

Asset custody provider Folio Institutional and online brokerage Folio Investing are divisions of FOLIOfn Investments Inc. The company enables investors and financial advisors 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 150 Ready-to-Go Folios representing market indices, industry sectors, geographical regions, target dates, and more. Additional information is available at: www.FolioInvesting.com and www.FolioInstitutional.com.

* As with any investment, investments in Target Date Folios are subject to investment risk including the loss of the principal amount invested. Investors should consider the investment objectives and risks of the Target Date Folios before investing.

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., member of FINRA/SIPC, does not provide investment, tax, or legal advice.

Folio Institutional Expands National Sales Staff

McLEAN, Virginia, January 6, 2011 — Asset custody provider Folio Institutional has completed a significant expansion of its national executive sales staff, with the addition of three regional vice presidents. more

The new positions reflect the considerable growth of the custody and clearing service, particularly over the past year, according to Folio Institutional President Greg Vigrass. “The addition of three seasoned financial service professionals reflects our commitment to maintain high-level relationships with the advisors who rely on our platform,” said Vigrass. “We support our first-class service and technology with a deeply experienced staff to help investment managers expand their brands and grow their customers’ assets.”

Folio Institutional provides customer and portfolio management, reporting and billing services for hundreds of advisory practices and individual investment managers nationwide.

The new Folio Institutional executives are:

  • Robert Steger, vice president of sales, Pacific Northwest region. Steger, based in San Francisco, formerly was west coast sales manager for the Broadcort Clearing division of Merrill Lynch. Previously in his 20-year career, he worked at Fidelity Investments and Charles Schwab Corp. Steger holds a bachelor’s degree from the University of California, Santa Barbara.
  • David Turner, vice president of sales and retirement consultant, Western regions. The Dallas-based Turner earned his bachelor’s degree from Kansas State University and holds certification in ERISA-qualified retirement plans from the Philadelphia Institute for Employee Benefits Training. Turner’s more than 20 years of experience includes eight years as regional sales director for SEI Investments. He also held positions at American Airlines and KPMG International.
  • Rick Hope, vice president of sales, Midwest region. Hope, based in Chicago, has more than 21 years of experience in financial services. He previously was a regional vice president with DWS Investments Distributors Inc., a unit of the Deutsche Bank Group. He also worked with the retail and institutional divisions of Charles Schwab Corp. Hope is a graduate of Ursinus College, and also studied in the International Exchange Program of Tohoku Gakuin University, Sendai, Japan.

About Folio Institutional

Folio Institutional is a leading custody and portfolio management service, delivering innovative investment solutions to financial professionals and institutions nationwide. Folio Institutional’s proprietary trading platform enables financial advisors to manage stocks, ETFs, and mutual funds as integrated investment portfolios (“Folios”) that deliver better control, greater transparency, and lower cost. Advisors can create their own Folios, much like creating customized ETFs or mutual funds, and make them available to investors. They can also access over 100 Ready-to-Go Folios representing market indices, sectors, geographical regions, target dates, and more.

For advisors who are retirement plan specialists, Folio Institutional offers Folio(k), an effective, transparent and low-cost alternative to traditional 401(k) plans.

Folio Institutional also operates the Model Manager Exchange, which allows advisors on the platform to license their portfolio models or strategies to other professionals.

A unit of FOLIOfn Inc., Folio Institutional is based in the Washington D.C. suburb of McLean, Va. FOLIOfn Inc. also includes a retail online brokerage division, Folio Investing.

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2010

Folio Institutional Announces 3rd Quarter’s Top 5 RTG Folios

McLEAN, Virginia, October 21, 2010 — Portfolios consisting of the stock of Internet companies or the securities of foreign firms constitute Folio Institutional’s Top 5 performing Ready-to-Go Folios of the Third Quarter, the asset custodial firm announced today. more

Folio Institutional’s Ready-to-Go Folios are professionally designed model portfolios that advisors can purchase in a single transaction. Using RTGs as building blocks, an advisor can quickly assemble a complete and diversified portfolio. Various RTGs represent market indices, industry sectors, geographic regions, investment styles, target date investments and other categories.

The Internet Folio and Internet 5 Folio were among Folio Institutional’s Top 5 performing RTG Folios for the quarter. The Internet 5 Folio, with a return of 28.06%, turned in the best performance overall. Both Folios consist of the stocks of large companies primarily engaged in business on the Internet.

The remaining three members of the Top 5 of the third quarter consisted of portfolios of foreign companies’ U.S.-registered securities (known as “American Depositary Receipts”). Folio Institutional offers an array of pre-designed portfolios of foreign investments, including several Folios which track the Bank of New York Mellon ADR Indices.

The RTG Folio performance rankings for the third quarter reflect the very strong rally this quarter that particularly favored higher Beta assets and international equities. In the second quarter, the Top 5 RTG list consisted entirely of bear market and bond Folios.

Folio Institutional’s Top Five Ready-to-Go Folios: Third Quarter 2010

RTG Folio Q1 Return
Internet 5 28.06%
European Oil and Gas 26.97%
Foreign Small Cap 26.68%
Australia and New Zealand 25.43%
Internet 21.64%

Comparatively, the overall stock market, as represented by the Standard & Poor’s 500 Index, increased 11.29% percent in the third quarter.

For quarterly performance data on all 150 RTG Folios, along with information on their holdings and methodologies, go to: https://www.folioinstitutional.com/rtgfolios/.

About Folio Institutional

FOLIOfn Investments Inc. delivers innovative investment solutions to financial professionals and institutions through Folio Institutional. At the core of all Folio Institutional products and services is its propriety trading platform. Folio Institutional enables users to manage stocks, ETFs, and mutual funds as integrated investment portfolios (“Folios”) that deliver better control, greater transparency, and lower cost. Advisors can create their own Folios, much like creating customized ETFs or mutual funds, and make them available to investors. They can also access over 150 Ready-to-Go Folios representing market indices, sectors, geographical regions, target dates, and more. For more information, please visit www.folioinstitutional.com.

Folio Institutional Opens Model Portfolio Exchange
Online Clearinghouse Facilitates Licensing of Advisors’ Strategies

McLEAN, Virginia, September 29, 2010 — Financial advisors working with custodial firm Folio Institutional can now access the investment expertise of some of the industry’s leading portfolio managers via a new online marketplace. more

Folio Institutional’s Model Manager Exchange (MMX) was unveiled today, featuring an initial group of 150 model portfolios from 35 financial professionals. The firm expects participation in the Exchange to increase significantly during its initial year.

“The Model Manager Exchange was designed to provide an easy way for advisors using the Folio Institutional platform to interact with one another and take advantage of a peer network that provides access to a collection of great thinking,” said Folio Institutional President Greg Vigrass. “Effective today, every advisor on our platform has access to an enhanced universe of innovative portfolio models created and managed by other advisors and institutions.”

Folio Institutional is initially offering Model Manager Exchange as a free service for all registered advisors and broker-dealers who use its platform. There is currently no fee for advisors to have their models displayed on the Exchange. Advisors who offer portfolio models are required to have a minimum level of assets on the Folio Institutional platform, with those funds invested in one or more of their models. Negotiations of licensing fees are conducted directly between the sellers and buyers of the investment strategies.

Once a model is licensed for use, trades are executed via the Folio Institutional platform, which handles all back-office transactions between the licensor and licensee.

“MMX allows model managers to increase the reach and visibility of their portfolio strategies, while creating a new revenue stream for them,” said Vigrass. “Meanwhile, licensees can efficiently access third party expertise to offer their clients a broader range of managed investments.”

Interested advisors can learn more about MMX by contacting us.

About Folio Institutional

FOLIOfn Investments Inc. delivers innovative investment solutions to financial professionals and institutions through Folio Institutional. At the core of all Folio Institutional products and services is its propriety trading platform. Folio Institutional enables users to manage stocks, ETFs, and mutual funds as integrated investment portfolios (“Folios”) that deliver better control, greater transparency, and lower cost. Advisors can create their own Folios, much like creating customized ETFs or mutual funds, and make them available to investors. They can also access over 150 Ready-to-Go Folios representing market indices, sectors, geographical regions, target dates, and more.

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.

Folio Institutional Announces 2nd Quarter’s Top 5 RTG Folios

McLEAN, Virginia, July 27, 2010 — Underscoring the stock market’s volatility in the second quarter, asset custodian Folio Institutional today announced that each of its Top 5 performing Ready-to-Go Folios for the quarter were either bear market or bond Folios. more

Folio Institutional’s Ready-to-Go Folios are professionally designed model portfolios that advisors can purchase in a single transaction. Using RTGs as building blocks, an advisor can quickly assemble a complete and diversified portfolio. Various RTGs represent market indices, industry sectors, geographic regions, investment styles, target date investments and other categories.

The Bear Market 2X Folio was Folio Institutional’s No. 1-performing Ready-to-Go Folio for the second quarter, with a return of 15.16 percent. The Bear Market 2X Folio is designed to be negatively or inversely correlated with the performance of the overall market on a daily basis. This Folio is designed to provide a short-term hedge during market downturns or periods of significant volatility. It is not designed to be used as part of a long-term strategy.

Two other similarly designed Bear Market Folios, along with two ETF-based Bond Folios, round out the Top 5 for the second quarter. In contrast, the Top 5 RTG Folios for the first quarter consisted of a mix of industry and strategy Folios.

Folio Institutional’s Top Five Ready-to-Go Folios: Second Quarter 2010

RTG Folio Q1 Return
Bear Market 2X Folio 15.16%
Bear Market 1.5X Folio 12.72%
Bear Market 1X Folio 8.81%
Bond ETF Folio 4.21%
Government Bond Folio 3.61%

Comparatively, the overall stock market, as represented by the Standard & Poor’s 500 Index, fell 11.43 percent in the second quarter.

For quarterly performance data on all 150 RTG Folios, along with information on their holdings and methodologies, go to: www.folioinstitutional.com/rtgfolios/.

About Folio Institutional

FOLIOfn Investments Inc. delivers innovative investment solutions to financial professionals and institutions through Folio Institutional. At the core of all Folio Institutional products and services is its propriety trading platform. Folio Institutional enables users to manage stocks, ETFs, and mutual funds as integrated investment portfolios (“Folios”) that deliver better control, greater transparency, and lower cost. Advisors can create their own Folios, much like creating customized ETFs or mutual funds, and make them available to investors. They can also access over 150 Ready-to-Go Folios representing market indices, sectors, geographical regions, target dates, and more. For more information, please visit www.folioinstitutional.com.

Folio Institutional Adds RPG Consultants as Record Keeper/Administrator
Alliance Eases Use of ETFs as Retirement Plan Investments

McLEAN, Virginia, June 23, 2010 — Folio Institutional today announced that New York-based RPG Consultants has become the newest third party administrator option for Folio Institutional’s financial advisor clients. This new strategic relationship will facilitate advisors’ use of exchange-traded funds (ETFs) in 401(k) plans and other types of defined contribution retirement plans. more

Folio Institutional and RPG individually service retirement plan sponsors and advisors nationwide as custodian and record keeper, respectively. The RPG401k solution will integrate with Folio Institutional’s unique investment platform to provide retirement plans with true open architecture, featuring an array of ETF and mutual fund investment choices. Financial advisors are empowered with the ability to select from an assortment of funds, including the ability to create managed strategies of ETFs.

“We believe that employees who are in 401(k) plans should be given cost effective and easily understood investments from the widest range of choices that their plan’s financial advisors can provide, and that employers should have the same cost effectiveness in a seamless operational and administrative platform,” said Alvin Rapp, RPG Consultants’ founding partner. “We encourage advisors to take advantage of the features that our platform provides, including the capability of our record keeping system to allow the advisor to develop asset allocations and other managed models using cost-effective ETFs.”

The Folio Institutional/RPG401(k) solution eliminates direct trading fees and commissions typically associated with retail ETF purchases, by utilizing the RPG-devised, fully automated, daily valuation administrative and recordkeeping program. The option of including low-cost ETFs in defined contribution and defined benefit plans means that advisors can ensure that employers and participants enjoy lower overall plan fees.

“While not specific to ETFs—an advisor can build a menu consisting of no-load or load-waived mutual funds, stocks, ETFs, or model allocations of all these securities—our solution recognizes the increasing popularity of incorporating ETFs into defined contribution plans,” said Alan Smith, Vice President of Retirement Services at Folio Institutional. “We’ve combined Folio Institutional’s commission-free trading platform with RPG’s powerful recordkeeping system to offer solutions with transparently low fees.”

About Folio Institutional

FOLIOfn Investments, Inc. delivers innovative investment solutions to financial professionals and institutions through Folio Institutional. At the core of all Folio Institutional products and services is the propriety FOLIO Advisor trading platform. FOLIO Advisor enables users to manage stocks, ETFs, and mutual funds as integrated investment portfolios (“Folios”) that deliver better control, greater transparency, and lower cost. Advisors can create their own Folios, much like creating customized ETFs or mutual funds, and make them available to investors. They can also access over 100 Ready-to-Go Folios representing market indices, sectors, geographical regions, target dates, and more. Ready-to-Go Folios can be managed or unmanaged and are offered by FOLIOfn Investments, Inc., a registered broker dealer, and are not registered investment companies. FOLIOfn Investments, Inc. does not provide investment, tax, or legal advice. FOLIOfn Investments, Inc., is a member of FINRA/SIPC. For more information, please visit folioinstitutional.com.

About RPG Consultants

RPG Consultants offers full-service retirement planning with an emphasis on defined benefit, defined contribution and 401(k) programs, complex pension strategies (including select comparability designs), non-qualified deferred compensation programs, cafeteria plans and plans covered by the Davis-Bacon Act. The firm handles the administration service requirements, including daily and quarterly valuation record keeping capabilities and cafeteria plan flexible spending accounts. RPG Consultants is a “non-producing” third-party administrator (TPA), and does not market or sell investments. More information is available at: www.rpgny.com.

Groundbreaking 401(k) Alternative Announced by Folio Institutional and ABG Carolinas
Low-Cost Folio(k) Eliminates Shortcomings of Traditional 401(k) Plan

McLEAN, Virginia, March 9, 2010 — Folio Institutional, a division of online brokerage FOLIOfn Investments Inc., in combination with Alliance Benefit Group Carolinas, the retirement plan recordkeeping and administration firm, today announced the launch of Folio(k) — a revolutionary 401(k) platform whose transparency, customization, simplicity, and low cost allows financial advisors to provide a more effective solution to retirement plan sponsors. more

Folio(k)™ is a turn-key 401(k) solution—including custody, trading, recordkeeping, and administration—and is available to advisors for a fee of 95 basis points.

While nearly half of the U.S. working population saves for retirement via a 401(k) account, recent industry and government analysis has found deficiencies in the typical 401(k). Many investors are faced with limited investment choices or do not possess the knowledge to construct a well-diversified, risk-appropriate portfolio of investments. (An October Time magazine cover story called the 401(k) savings system “a financial failure.”)

Target Date Based Solution

Folio(k) provides a simple solution: Plan sponsors and their advisors can make their primary investment choices from a set of various risk-adjustable, Target Date Folios—pre-designed portfolios of Exchange-Traded Funds (ETFs). These Target Date Folios reflect a far broader level of diversification than traditional target date funds, which focus primarily or exclusively on domestic equities and fixed income and have proven to be costly and insufficiently diversified. The Target Date Folios include allocations to all the major asset classes (including international equities, commodities, and TIPS, in addition to traditional domestic equities and fixed income). Moreover, the Target Date Folios are created with varying risk levels, including conservative, moderate, and more aggressive. Using Target Date Folios as the basic “building blocks,” advisors decide on the best mix and allocation of Folios or other investments to use in their clients’ plans, based on participants’ risk tolerance, investment time horizon, and other factors they may deem appropriate.

Advisors may periodically rebalance account holdings and have the option of using Folio(k)’s updated model portfolio data as a resource. They can rebalance, add or delete securities, or change the weightings—easily across all accounts with one simple click. An entire basket of securities can be traded in one, simple transaction with no commissions, transaction fees, or ticket charges.

Fully Transparent and Low Fees

Folio(k) also eliminates any potential for excessive or hidden investment and trading fees—another hot-button issue for traditional 401(k) accounts. Fees covering all trading, custody, recordkeeping, compliance, and administrative functions total just 70 basis points. Even with the addition of the ETF expense ratios, the total cost is less than 1 percent of plan assets (approximately 95 basis points). This low-cost structure allows advisors to add an appropriate management fee and still offer a bundled 401(k) solution at a highly competitive price.

“Sponsors and participants are asking for more transparency, better diversification, and lower costs across the board.” said Alan Smith, vice president of retirement services at Folio Institutional. “Folio(k)’s customizable portfolios of low-cost ETFs were developed with diversification and cost in mind. Participants actually own fractions of the underlying ETFs in a low cost, easy-to-use, Web-based 401(k). And fees can be deducted from plan assets, so there are no out-of-pocket expenses to the sponsor.”

Completely Web-Based

ABG Carolinas is providing all administration and recordkeeping for Folio(k). The program operates 100% online. Participant enrollment, statements, investment requests, employer reports, and materials are all delivered over the Internet.

Lisa Allen, senior vice president of ABG Carolinas, stated, “Employers are being overwhelmed by administrative complexity and cost of the traditional 401(k) structure. Folio(k) provides a solution. Advisor interest in Folio(k) has been strong, even before the formal introduction of the offering. We are thrilled to join together with Folio Institutional to offer plan sponsors and their advisors a solution for their clients.”

Learn More

For more information about Folio(k), contact Folio Institutional at 888-485-3456 or info@folioinstitutional.com, or go to: www.folioinstitutional.com/foliok/advisors.jsp.

Folio(k) will be the subject of a presentation and discussion on Monday, March 15, in Orlando, during the American Society of Pension Professionals & Actuaries “401(k) Summit.” For details, contact ABG Carolinas at 704-714-2406 or ast@abgcarolinas.com.

Folio Institutional and Alliance Benefit Group Carolinas do not offer investment advice and make no representation, either explicit or implied, regarding the suitability of specific investments, models, or group of model investments, including specifically the Target Date Folios, for individual investors or individual retirement plans. Alliance Benefit Group Carolinas and Folio Institutional are not fiduciaries and the Folios noted are designed solely as examples of low cost, diversified investments. Other investments are available on the Folio Institutional custodial platform. Retirement plan sponsors and advisors should work together to review these investments and monitor them appropriately on an ongoing basis.

About Folio Institutional

FOLIOfn Investments, Inc. delivers innovative investment solutions to financial professionals and institutions through Folio Institutional. At the core of all Folio Institutional products and services is the propriety FOLIO Advisor trading platform. FOLIO Advisor enables users to manage stocks, ETFs, and mutual funds as integrated investment portfolios (“Folios”) that deliver better control, greater transparency, and lower cost. Advisors can create their own Folios, much like creating customized ETFs or mutual funds, and make them available to investors. They can also access over 100 Ready-to-Go Folios representing market indices, sectors, geographical regions, target dates, and more. Ready-to-Go Folios can be managed or unmanaged and are offered by FOLIOfn Investments, Inc., a registered broker dealer, and are not registered investment companies. FOLIOfn Investments, Inc. does not provide investment, tax, or legal advice. FOLIOfn Investments, Inc., is a member of FINRA/SIPC. For more information, please visit folioinstitutional.com.

About Alliance Benefit Group Carolinas, LLC

For more than 20 years, Alliance Benefit Group Carolinas has been a leader in the employer-sponsored retirement plan industry. ABG Carolinas provides comprehensive solutions for all types of retirement plans, including plan design and document consulting, plan administration and recordkeeping for defined contribution and defined benefit plans, compliance services, correction program assistance, and 403(b) plan consulting. ABG Carolinas is an independent firm and does not sell investments or investment products. More information can be found on the company’s Web site at www.abgcarolinas.com.

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2009

Klear(k)™ — The Rx for Retirement Plans
Finally, A Fully Transparent, Cost-Efficient 401(k) Plan

WILMINGTON, Delaware, July 7, 2009 — Longview Financial Advisors, LLC and Folio Institutional announce today that Longview Financial Advisors has launched Klear(k)™, a revolutionary new retirement plan program that gives plan sponsors a better way to access Exchange Traded Funds (“ETFs”) thru FOLIOfn’s investment platform. Longview Financial Advisors is an SEC Registered Investment Advisor providing financial advisory services to individuals and retirement plans. Folio Institutional is a division of FOLIOfn Investments, Inc. and delivers innovative investment solutions to financial professionals and institutions. more

The Klear(k)™ program offers ETFs, no-load mutual funds, and low-cost, actively managed investment models to 401(k), 403(b), 457, and Defined Benefit retirement plans of all sizes. The goal of the program is to provide better investment options with more control, greater transparency, and lower cost to plan sponsors and participants. "Plan sponsors are interestedly seeking cost-effective retirement solutions that have transparent fees and flexible investments like ETFs and actively-managed models. Longview’s timing is certainly complimentary to the needs of plan sponsors and industry trends alike. Both seem well primed to embrace a program such as Klear(k)™,” stated Alan Smith of Folio Institutional.

Key features of the Klear(k)™ retirement plan program include:

  • Cost Efficiency: Offers reasonable and crystal-clear fees
  • Transparency: Offers a flexible and transparent investment lineup
  • Risk Management: Helps mitigate risk through portfolio diversification
  • Open Architecture: Offers multiple ETF providers
  • Managed Accounts: Offers proprietary actively managed investment models
  • Full-Service Solution: Offers investment advisory services, fiduciary benefits and TPA Services

Through Folio Institutional’s platform, Longview’s Klear(k)™ program offers investments to retirement plans and their participants as integrated investment portfolios (“Folios”) that can be bought, sold or rebalanced in a single transaction. Disciplined, diversified retirement investing is easier, and more affordable, too. “For plan sponsors who have been searching for a transparent, easy to use ETF solution, the Klear(k)™ program is the perfect answer. We are extremely excited to roll this out at a time when there is so much attention to reducing plan level fees and expenses. Finally, a plan sponsor or participant can know exactly what securities are held by their funds at all times as well as what fees they are paying,” said Peter J. Ponzio, Managing Director of Retirement Plans at Longview Financial Advisors.

Plan Sponsor and Financial Advisors interested in learning more about the Klear(k)™ program can call Longview Financial Advisors at (866) 855-0600.

About Longview Financial Advisors, LLC
Longview Financial Advisors, LLC, is a Registered Investment Adviser with offices in Wilmington, Delaware and Mount Laurel, New Jersey. As a fee-only financial advisor, Longview specializes in personal asset management for high net worth individuals, families, institutions and retirement plans. Longview offers the experience and sophistication of a large, institutional investment firm, with a level of attention and client service only an independent, employee-owned company can provide. For more information, email invest@longviewfp.com or call (866) 855-0600.

About Folio Institutional
FOLIOfn Investments, Inc. delivers innovative investment solutions to financial professionals and institutions through Folio Institutional. At the core of all Folio Institutional products and services is the propriety FOLIO Advisor trading platform. FOLIO Advisor enables users to manage stocks, ETFs, and mutual funds as integrated investment portfolios ("Folios") that deliver better control, greater transparency, and lower cost. Advisors can create their own Folios, much like creating customized ETFs or mutual funds, and make them available to investors. They can also access over 100 Ready-to-Go Folios representing market indices, sectors, geographical regions, target dates, and more. Ready-to-Go Folios can be managed or unmanaged and are offered by FOLIOfn Investments, Inc., a registered broker dealer, and are not registered investment companies. FOLIOfn Investments, Inc. does not provide investment, tax, or legal advice. FOLIOfn Investments, Inc., is a member of FINRA/SIPC. For more information, please visit folioinstitutional.com.

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2008

A Message to Our Clients Regarding the Current Situation in the Financial Markets

October 2008 — In these times of unprecedented financial uncertainty, it is important that your clients are able to remain focused on investing wisely and staying the course. FOLIOfn Institutional was created to provide financial advisors a cost-effective way to create and distribute well-diversified portfolios and strategies which they can use to manage their clients’ assets. more

We provide the tools you and your clients need to manage well diversified folios in these turbulent markets. Namely:

  • Folios/Models of up to 100 securities, funds, ETFs or a combination thereof
  • Control of tax recognition and the ability to match losses with gains when selling
  • Fixed low cost through our asset based fee program
  • Ability to customize Folio and Model holdings as needed
  • Transparency of cost and holdings available to you and your clients

Your investments are safe with us. FOLIOfn Institutional and its parent company, FOLIOfn, Inc. do not have any exposure to the current crisis gripping some of the players in the financial markets. Our only business is to provide service to you and your customers. We do not do any proprietary trading, participate in the derivatives market or provide investment banking financing. We have not provided our clients access to Auction Rate securities. Simply put, we have not engaged in any of the business lines that are under attack today.

We carry both SIPC insurance, and additional excess SIPC insurance offered through London insurers.

In addition, we have a unique network of banks where any cash you or your clients hold is placed each night so that you enjoy the benefits of FDIC insurance on your cash—for up to $2.2 million in most accounts and up to $5.5 million in retirement accounts.

Feel free to share any of this information with your clients if they have questions or concerns about FOLIOfn.

Efficient Market Advisors Launches Pioneering 403b Offering Powered by the FOLIOfn Portfolio Trading System

SAN DIEGA, California and VIENNA, Virginia, September 11, 2008 — Efficient Market Advisors, LLC (EMA), the nation’s premier Exchange Traded Fund (ETF) separate account manager, announces the launch of the first 403b program offering professionally managed portfolios of ETFs. The Efficient 403b is registered with 403bCompare.com, the California School Employee Retirement Product Information Bank. The above-mentioned registration does not imply any endorsement or evaluation of the offer by the California State Teachers’ Retirement System (CalSTRS), which administers 403b Compare.com. CalSTRS is the largest teachers’ retirement fund in the United States. Other states are expected to explore new 403b alternatives. more

This new offering in the 403b marketplace is made possible thanks to EMA’s alliance with FOLIOfn Institutional, a unique online brokerage and technology firm for financial intermediaries.

403b plans (similar to 401k’s) are retirement plans for employees of certain tax-exempt organizations such as public schools, universities, hospitals and non-profit groups. New IRS regulations taking effect in January 2009 open the door to new low-cost offerings. Leading the way is EMA’s innovative, Efficient 403B, enabled by FOLIOfn’s one-of-a-kind technology platform.

FOLIOfn Institutional features the unique, patented Folio Investing® system that allows individuals or institutions to economically create and manage diversified portfolios. This system allows fully transparent, low-cost, professionally managed investment solutions to be made available to 403b participants.

“I am extremely pleased to bring a professionally managed and cost-sensitive vehicle to 403b participants in California. There is simply no reason people should be forced to choose costly, inefficient investment products for their retirement assets,” said Herb Morgan, Chief Executive Officer (CEO) of Efficient Market Advisors, LLC.

Key features of the Efficient 403b include:

  • No individual transaction charges
  • Low-cost ETFs and low asset-based management fees
  • Online performance and asset allocation reporting
  • Target date portfolios

Efficient Market Advisors has forged an alliance with FOLIOfn Institutional to provide trading, clearing, and custody for the Efficient 403b. “We think this is a significant development in the 403b space, and given the explosive growth FOLIOfn Institutional has experienced in the 401k and retirement services markets, we see adding 403b’s as an important step. The increasing use of managed ETF portfolios is bringing some interesting and exciting investment options into this arena. We are pleased to work with Efficient Market Advisors, LLC on this important and very unique initiative,” commented Greg Vigrass, President of FOLIOfn Institutional.

About Efficient Market Advisors, LLC
Efficient Market Advisors (EMA) is widely known for having pioneered the concept of professionally managed portfolios of Exchange Traded Funds (ETFs). EMA combines time horizon and risk tolerance to construct fifteen asset allocation model portfolios, and is headquartered in Del Mar, California. For more information, call 1-888-327-4600 or visit Efficient Market Advisors on the web www.efficient403b.com.

About FOLIOfn Institutional
FOLIOfn delivers innovative investment solutions to financial professionals and institutions through FOLIOfn Institutional, a division of FOLIOfn Investments, Inc. (www.folioadvisor.com), headquartered in Vienna, Va. The proprietary and patented FOLIO trading platform is an easy-to-use, Web-based trading system that enables users to customized portfolios of securities—called Folios—which they can buy or sell in a single transaction. Financial institutions can easily make Folios available to thousands of clients. Contact Alan Smith at (803) 631-5078 for more information.

Zacks Investment Management Announces Innovative and Fully Disclosed Solution for Mid-Size Retirement Plan Market Made Possible by FOLIOfn Platform

CHICAGO, Illinois and VIENNA, Virginia, August 14, 2008 — Zacks Investment Management, an independent Registered Investment Advisor based in Chicago, Ill., is pleased to announce their entry into the mid-size retirement plan market, offering the same low-cost separately managed account (SMA) structure that they use in their private client business. Zacks Retirement Plan Solutions, a service offering of Zacks Investment Management, currently manages hundreds of micro and small defined benefit (DB) and defined contribution (DC) plans, all within a separately managed account structure utilizing Zacks Private Client investment strategies. more

“Years ago, we saw an opportunity to use the same low-cost SMA structure that we incorporate in our private client business in the retirement plan market,” noted Andy Zimmer, managing director of Zacks Wealth Management. “The benefits to the plan sponsor and the participants are 100% transparency in fees and holdings, absolute full disclosure and access to world-class investment management.”

Zacks is able to offer a separate account structure with a simplified and fully transparent fee structure as a result of its partnership with FOLIOfn Institutional, based in Vienna, VA.

“We embrace these types of partnerships that bring innovation to the market,” commented Greg Vigrass, President of FOLIOfn Institutional, the online brokerage and technology firm that provides a complete array of services to financial intermediaries. “Zacks has delivered an exciting new product to the retirement arena, and our firm was delighted to facilitate this initiative.”

“FOLIOfn is as much a technology company as they are a custodian for us,” added Zimmer. “It is because of their innovations in trading, custody and reporting that we are able to provide a fully-transparent and customized solution to thousands of ERISA plans and private clients. Their commitment to building a robust and scalable platform for our growing business has made this possible. They make the seemingly impossible feel easy.”

Five years ago, most people did not fully comprehend just how big an issue fee disclosure would be in the ERISA space, but it has fast become a topic of much concern for advisors, marketers, the U.S. Department of Labor (DOL) and—perhaps most notably—plan fiduciaries. Zimmer sees the debate as an opportunity. He commented, “With the momentum this issue has gathered in recent months, there is some indication that we may see a paradigm shift on multiple levels in regard to disclosure and liability. We are proud to be on the leading edge of this most important issue and stand ready to assist our clients, other sponsors, marketers and advisors as they seek alternative solutions on these issues in the months and years to come.”

About Zacks Investment Management
Zacks Investment Management is an independent registered investment advisor founded in 1992 and manages assets for institutions, ERISA plans and individual investors. Zacks Investment Management is headquartered in Chicago, IL and is a wholly-owned subsidiary of Zacks Investment Research, the third largest independent research provider in the United States, which was founded in 1978 (312-265-9213, www.zackswmg.com).

About FOLIOfn Institutional
FOLIOfn delivers innovative investment solutions to financial professionals and institutions through FOLIOfn Institutional, a division of FOLIOfn Investments, Inc. (www.folioadvisor.com), headquartered in Vienna, Va. The proprietary and patented FOLIO trading platform is an easy-to-use, Web-based trading system that enables users to customized portfolios of securities—called Folios—which they can buy or sell in a single transaction. Financial institutions can easily make Folios available to thousands of clients. Contact Alan Smith at (803) 631-5078 for more information.

Alliance Benefit Group Carolinas Partners with FOLIOfn Institutional To Offer New Retirement Plan Solutions

CHARLOTTE, North Carolina and VIENNA, Virginia, June 24, 2008 — Alliance Benefit Group Carolinas, LLC, a leading provider of retirement plan consulting and recordkeeping services, announced today it has entered into a strategic partnership with FOLIOfn Institutional, a division of FOLIOfn Investments, Inc. Based in Vienna, Va., FOLIOfn was founded in 1998 by Steven Wallman, a former commissioner at the Securities and Exchange Commission (SEC). more

FOLIOfn Institutional is an innovative brokerage and technology platform featuring a patented, state-of-the-art FOLIO Investing system that allows individual and institutional investors to economically create and manage a diversified portfolio—using either dollar or share weighting. So there are no minimums and investors can buy fractions of shares.

ABG Carolinas will be utilizing their defined contribution and defined benefit administrative services—together with the custody and technological resources provided by FOLIOfn Institutional—to offer advisors customized, professionally managed retirement plan solutions.

Alliance Benefit Group offers true open architecture and full fee disclosure. For its part, FOLIOfn Institutional provides cutting edge web-based technology, which allows retirement plan advisors to create customized “Folios”: baskets of securities that you can buy, sell, exchange, update, or rebalance in a single transaction. Like a mutual fund, you own an instantly diversified portfolio—but unlike mutual funds which are fairly opaque, with a Folio, you know what you own. Creating your own Folio is like creating your own ETF or mutual fund—select a group of stocks, ETFs, or mutual funds, choose the weightings for those securities, and with one click, purchase the entire Folio.

“We are thrilled to partner with FOLIOfn Institutional to offer a new solution for fee-based advisors who are looking for lower cost, managed account solutions that are 'outside the box' for their retirement plan clients,” Alliance Benefit Group Carolinas President Jim Comer stated. “Advisors can put their practices on the leading edge, taking advantage of our combined services, vision and expertise,” he added.

The resulting services package has been well received, with several Registered Investment Advisory firms already on board. The firms are seeking to partner with more advisors who are looking for solutions outside the bundled mutual fund arena.

Greg Vigrass, President of FOLIOfn Institutional, commented: “Together, we’re revamping the traditional 401(k) offering, which utilizes mutual funds and plan administration in a manner that’s neither cost-effective nor transparent, with regard to fees. In contrast, ABG’s straightforward fee structure, along with our asset-based pricing for custody and trading, results in a very compelling solution that’s cost-effective, with ultimate fee transparency.”

“An advisor, working together with FOLIOfn Institutional and ABG, can provide a best-of-breed solution for their client,” continued Vigrass. “Because FOLIOfn’s innovative technology platform allows the purchase of fractional shares, advisors can diversify cost-effectively, regardless of account size, building portfolios of low-cost ETFs, stocks, and no-load mutual funds. This enables them to provide truly customized, well-diversified strategies for any size plan and any size participant.”

About Alliance Benefit Group Carolinas, LLC
Alliance Benefit Group Carolinas offers comprehensive employee benefits consulting and administration services throughout North and South Carolina and anywhere in the United States. Alliance Benefit Group Carolinas strives to provide the highest quality third-party administrative and consulting services. Contact ABG Carolinas at (704) 523-4167 for more information.

About FOLIOfn
FOLIOfn delivers innovative investment solutions to financial professionals and institutions through FOLIOfn Institutional, a division of FOLIOfn Investments, Inc. (www.folioadvisor.com), headquartered in Vienna, Va. The proprietary and patented FOLIO trading platform is an easy-to-use, Web-based trading system that enables users to customized portfolios of securities—called Folios—which they can buy or sell in a single transaction. Financial institutions can easily make Folios available to thousands of clients. Contact Alan Smith at (803) 631-5078 for more information.

FOLIOfn Teams with Genocide Intervention Network and Launches First Ever Genocide-Free Stock Screening Tool

VIENNA, Virginia, May 12, 2008 —The Genocide Intervention Network and FOLIOfn Investments are proud to announce the launch of the first stock screening tool that empowers investors to build investment portfolios free of companies profiting from and supporting genocide in Sudan. This tool enables individual investors and investment advisors to automatically screen out companies on the Genocide Intervention Network’s “Highest Offenders” list—the companies that support conflict in Sudan at the expense of the country’s marginalized populations. Currently, only a handful of these “highest offender” companies are currently tradable at FOLIOfn Investments, Inc. but the screen will ensure that they, and any others subsequently included on the list, are automatically screened out of portfolios by those utilizing the new screen. In addition, FOLIOfn Investments, Inc. will use the screen in the preparation of its own Ready-To-Go Folios that FOLIOfn Investments offers free of charge to its customers. more

FOLIOfn is the first firm to offer a genocide-free stock screen. The “Highest Offenders,” excluded by the screen, represent a small subset of companies operating in Sudan: their operations negatively impact the political or humanitarian situation in Sudan while offering minimal benefit to Sudan’s disadvantaged populations. Furthermore, the “Highest Offenders” have proven to be largely unresponsive to engagement by shareholders.

Mark Hanis, executive director of the Genocide Intervention Network, noted that “FOLIOfn’s new screening tool will enable investors to take positive steps toward ending the genocide in Darfur and engaging companies to act on these issues throughout the world. The Folio Investing model makes it easier and more cost-effective for people to invest well, and invest with their values.”

“Folios are the next generation of investing. They offer numerous benefits to investors, including diversification, tax management capabilities, and control of their investments. This tool is an example of the benefits of that control. By knowing what they own—and caring about it—investors can have an influence on their world,” stated Steven M.H. Wallman, founder and CEO of FOLIOfn.

Individual investors can create their own Folios or pick from over 100 Ready-To-Go Folios, based on indices, geographies, sectors, themes, and even target dates. Folios differ from mutual funds, in that they are not registered with the U.S. Securities and Exchange Commission (SEC) and are managed by the individual owner or investment advisor.

Currently, three “Highest Offenders” trade on major U.S. exchanges and are screened out by the new tool. They are China Petroleum & Chemical Corporation or Sinopec Corporation (SNP), PetroChina (PTR), and Sinopec Shanghai Petrochemical Co. (SHI). This list of securities is expected to change over time as the Genocide Intervention Network periodically reviews and updates its “Highest Offenders” list.

The new FOLIO Investing stock screen is a unique tool for individual investors and complements the Genocide Intervention Network’s mutual fund screening tool. The fund tool identifies whether a mutual fund, based on the most recent fund data available, holds stocks that are on the divestment list, compiled by the Genocide Intervention Network.

About Genocide Intervention Network (www.genocideintervention.net)
The Genocide Intervention Network (GI-NET) is working to build the first permanent anti-genocide constituency in the United States, mobilizing the political will to stop genocide when it occurs. GI-NET empowers individuals with tools to stop genocide through education, fundraising for civilian protection and advocacy efforts.

As the coordinating entity for the targeted Sudan divestment movement, the Sudan Divestment Task Force (SDTF), a project of GI-NET, provides support for individuals, public fiduciaries, asset managers and government officials who are participating in targeted Sudan divestment campaigns around the world. SDTF has developed a unique and financially sound approach to shareholder engagement and divestment, focusing efforts on the most problematic and risk prone companies in Sudan. This approach, termed targeted Sudan divestment, recently was authorized by the United States government. It helps to maximize impact on the Sudanese government while minimizing potential harm to both innocent Sudanese civilians and investment returns. SDTF also provides company research and corporate engagement assistance to thousands of fiduciaries worldwide, representing more than US $3 trillion in total assets.

About FOLIOfn
FOLIOfn Investments, selected as “Best of the Web for Alternative Investing” by Forbes.com, enables investors to affordably buy or create portfolios, called Folios, of up to 100 securities each with just a few clicks of a mouse. A Folio is much like a personalized mutual fund, but individuals own the underlying securities and there is no asset-based fee for stock ownership. The patented FOLIO Investing platform offers distinct benefits for investors: low cost, ease of use, diversification, customization, tax efficiency, and performance measurement. The customization feature is ideally suited for individuals who wish to invest according to their values. In addition, the FOLIO Wizard helps investors decide what to select based on their own investment objectives.

F-Squared Investments Announces a “Next Generation” Separately Managed Account: Industry Break-Through Account Minimums of $15,000 and All-In Fees of 0.55%

WELLESLEY, Massachusetts, May 05, 2008 — F-Squared Investments, LLC has announced a “next generation” separately managed account, which they have dubbed the Individually Managed Account (IMA). With investment minimums of $15,000 and all-in fees to advisors of 0.55% per annum (inclusive of all costs including trading, custody, performance reporting, and transaction costs), the IMA is a true break-through product which is poised to reposition separate accounts within the industry. more

“We believe this product defines an entirely new product category for advisors and their clients,” said Howard Present, President and CEO of F-Squared Investments. “It not only delivers on the original promise of SMAs by reducing minimums from $100,000 to $15,000 and cutting costs an average of 45%1, but now positions the IMA as a potential substitute product for mutual funds, significantly reducing costs while adding customization and full tax management capabilities.”

F-Squared Investments’ IMA is being made available to registered investment advisors via the FOLIOfn trading and custody platform. Included in the pricing is fully-automated customization and tax management overlay for all client accounts. FOLIOfn also offers the ability to download client account data to many of the accounting platforms in the industry, enabling consolidated reporting regardless of an Advisor’s other custodial relationships. Advisors who want access to any of F-Squared’s IMA products can easily access them by contacting F-Squared (www.f-squaredinvestments.com). Investment advisory accounts for the program will be on the FOLIOfn Institutional investment platform (www.folioadvisor.com).

F-Sqaured Investment’s IMAs currently can be invested in any of five actively managed model portfolios, which are designed to track the performance of specific AlphaCycle® Indexes. The five investment options now available include: Large Cap Core, Large Cap Growth, Small Cap Value, Small Cap Growth, and Financials. AlphaCycle Indexes deliver actively managed results and, over rolling 3-year time periods, have outperformed their corresponding passive index benchmarks 78% of the time2. For more information regarding the AlphaCycle Indexes and historical performance, visit www.activeindexsolutions.com.

“By bringing together our low-cost investment models and leveraging the technological capabilities of our partners at FOLIOfn and Smartleaf, we have been able to bring down both costs and minimums while also providing valuable solutions for tax management and customization,” stated John Nelson, SVP and Director of Sales and Marketing for F-Squared, adding that “another key to the delivery is the ease of implementation, brought about by full automation of all these features.”

The AlphaCycle IMA offers world class investment management with all the innate tax and customization advantages of separately managed account portfolios — and at these minimums and costs it becomes a powerful alternative to mutual funds, ETFs, and mutual fund wrap programs. It is significantly less expensive than a mutual fund, whose average fees generally range between 120 to 140 basis points, and the IMA is more tax efficient and customizable as well. With respect to ETFs, the AlphaCycle IMA allows for access to active strategies (versus a passive ETF), while providing customization and tax management advantages. In fact, research has shown that tax management strategies can add up to 0.6%3 to net return, which would more than offset the full fee charged for the AlphaCycle IMAs.

“The investment world can ill afford the luxury of standing still,” concluded Mr. Present, “yet, the mutual fund represents 40+ year-old technology; the traditional SMA is 25 years old. Applying thoughtful use of current technology and approach allows us to both improve the solution for the client while meaningfully reducing the fees.”

1. Morningstar, Financial Research Corporation, Dover Research, and F-Squared Investments
2. American Stock Exchange, Morningstar Direct, F-Squared Investments
3. McIntire and Stein, 2003

F-Squared Investments: Thought Leadership. Cost Leadership.®
1-866-288-7657

About F-Squared Investments
F-Squared Investments is an SEC registered investment advisor that was founded on the premise of providing investors with the highest possible retained returns. The firm creates investment solutions with the goal of generating repeatable, consistent investment value-add and then delivering the investments with the lowest possible costs. F-Squared supports that goal by having established itself as the low cost industry leader in providing active, equity investment management*. F-Squared has a series of 18 publicly listed AlphaCycle Indexes, each consisting of a select list of highly rated actively managed mutual funds. The funds within each index are selected by institutional consultants, providing multi-manager solutions and imbedded manager rotation. F-Squared investment solutions do not, however, result in the purchase of any existing mutual funds. To learn more about F-Squared Investments and its investment approach, visit us at www.f-squaredinvestments.com or www.alphacycleinvesting.com.

About Smartleaf, Inc.
To learn more about Smartleaf and their separate account overlay technology, visit them at www.smartleaf.com.

* Morningstar Direct, Financial Research Corporation, and F-Squared Investments

All rights reserved. “AlphaCycle" is a service mark of Active Index Solutions, LLC. This material is proprietary and may not be reproduced, transferred or distributed in any form without prior written permission from Active Index Solutions, LLC. Active Index Solutions, LLC reserves the right at any time and without notice to change, amend, or cease publication of the information. This material has been prepared solely for informative purposes. The information contained herein has been obtained from sources that we believe to be reliable, but its accuracy and completeness are not guaranteed. It is made available on an “as is” basis without warranty. Investment products that may be based on AlphaCycle Indexes are not sponsored by Active Index Solutions, LLC or F-Squared Investments, LLC, and neither firm makes any representation regarding the advisability of investing in them. Inclusion of a mutual fund in an index does not in any way reflect an opinion of Active Index Solutions or F-Squared Investments regarding the investment merits of such a mutual fund. None of the mutual funds included in the index have given any real or implied endorsement or support to Active Index Solutions or to this index. One cannot invest directly in an index. Returns represent past performance, and are not guarantees of future results or indicative of any specific investment.

FOLIOfn Launches Bear Market Folios Designed to Increase in Value as Market Declines

IENNA, Virginia, March 26, 2008 — FOLIOfn, Inc., the innovative online brokerage firm and provider of investment products, launched three Bear Market Folios last month, which are designed to increase in value as the broad market declines (and vice-versa). The Folios are comprised of a variety of inverse mutual funds and ETFs. more

No portfolio will perform well in all markets. However, for every 1% decline in the broad market’s value, the Bear Market 1X Folio is designed to gain about 1% in value; the Bear Market 1.5X Folio is designed to gain about 1.5%; and the Bear Market 2X Folio is designed to gain about 2% in value. Because these Folios are designed to go up as the market goes down, they are also expected to go down as the market goes up. Thus, if the market goes up 1%, the Bear Market 1X Folio will likely lose 1% in value, the Bear Market 1.5X will lose 1.5%; and the Bear Market 2X will lose 2%.

Investors can use these Folios to be in the market when they believe the broad markets are likely to decline. These Folios could also be used by investors as a short-term hedge in cases where an investor’s other assets are exposed to the moves of the broader market.

A white paper discussing the theory and construction of FOLIOfn’s Bear Market Folios—written in an easy-to-understand and informative way—can be found at FOLIOfn’s website.

FOLIOfn delivers innovative investment solutions to financial professionals and institutions through FOLIOfn Institutional, a division of FOLIOfn Investments, Inc., headquartered in Vienna, Virginia, (703) 245-5757. The proprietary and patented FOLIO trading platform is an easy-to-use, web-based trading system that enables users to customize portfolios of securities—called Folios—which they can buy or sell in a single transaction. Financial institutions can easily make Folios available to thousands of clients.

Creating a Folio is similar to creating a personalized ETF or mutual fund. Folios can afford significant tax advantages, ability to customize, transparency, and lower costs, while allowing for proper diversification. Financial advisors can also choose from over 100 Ready-To-Go (RTG) Folios, representing different market indices, sectors, geographic locations and asset classes. In addition, they can purchase investment vehicles such as mutual funds and ETFs cost-effectively. The FOLIOfn platform allows commission-free investing for a low monthly fee, as well as dollar-based and fractional share investing. Folios can be managed or unmanaged and are offered by FOLIOfn Investments, Inc., a registered broker dealer, and are not registered investment companies.

FOLIOfn Launches “Low Volatility” Folios: About Half the Volatility of the S&P 500, But With Strategic Exposure to Equities

VIENNA, Virginia, March 19, 2008 — FOLIOfn, Inc., the innovative online brokerage firm and provider of investment portfolios, launched two Low Volatility Folios last month, which have the goal of offering about half the volatility of the S&P 500, while still retaining strategic exposure to equities to boost long-term expected returns. more

The “Low Volatility Folio” is comprised of a mixture of ETFs and individual stocks, while the “Low Volatility ETF Folio” is comprised entirely of ETFs. These Folios are built out of securities with a low correlation to one another and the broader market, and also feature screens on volatility.

During periods when the return of the S&P 500 increases or decreases significantly, the return on these portfolios are designed to increase or decrease by smaller amounts. In other words, the lower volatility of these folios means that their maximum returns and losses in any given period are likely to be of a lower magnitude than those experienced by the S&P 500. These portfolios may be attractive to medium and long-term investors who want a portfolio that does not track the market during periods of large market swings, but that can provide equity exposure with lower volatiliy than the broader market.

A white paper discussing the theory and construction of FOLIOfn’s Low Volatility Folios—written in an easy-to-understand and informative way—can be found at FOLIOfn’s website.

FOLIOfn delivers innovative investment solutions to financial professionals and institutions through FOLIOfn Institutional, a division of FOLIOfn Investments, Inc., headquartered in Vienna, Virginia, (703) 245-5757. The proprietary and patented FOLIO trading platform is an easy-to-use, web-based trading system that enables users to customize portfolios of securities—called Folios—which they can buy or sell in a single transaction. Financial institutions can easily make Folios available to thousands of clients.

Creating a Folio is similar to creating a personalized ETF or mutual fund. Folios can afford significant tax advantages, ability to customize, transparency, and lower costs, while allowing for proper diversification. Financial advisors can also choose from over 100 Ready-To-Go (RTG) Folios, representing different market indices, sectors, geographic locations and asset classes. In addition, they can purchase investment vehicles such as mutual funds and ETFs cost-effectively. The FOLIOfn platform allows commission-free investing for a low monthly fee, as well as dollar-based and fractional share investing. Folios can be managed or unmanaged and are offered by FOLIOfn Investments, Inc., a registered broker dealer, and are not registered investment companies.

FOLIOfn Launches Target Date Folios to Meet Investors’ Retirement Needs: Called a “Fix” to the “One-Size-Fits-All Approach of Target-Date Funds” by The Wall Street Journal

VIENNA, Virginia, March 13, 2008 — FOLIOfn, Inc., the innovative online brokerage firm and provider of investment portfolios, recently launched a suite of Target-Date Folios to meet investors’ retirement needs and furnish an alternative to target date mutual funds. In a major article published on December 27, 2007, The Wall Street Journal cited these Folios as a “fix” to the “one-size-fits-all approach of target-date funds.” more

The Target-Date Folios are offered in conservative, moderate and aggressive versions and are currently all ETF-based. Similar to Life Cycle mutual funds, these Folios simplify the retirement planning process. Target-Date Folios yield the benefits of funds—namely, ease of use, diversification, and a reasonable equity glide path—while providing the added benefits of Folio Investing: increased transparency, the ability for individual investors to customize the underlying assets in the portfolios, improved tax management, and low expenses.

Investors simply select the Target-Date Folio that best matches their anticipated retirement date, preferred risk level and investing style, then start investing for the future. Those who are unsure about their preferred risk levels and investing style can utilize a Folio Wizard—offered free on the site—to review their investment objectives and risk tolerance.

“For investors who want a customized approach to retirement planning, without the limitations or costs of mutual funds, our Target-Date Folios may provide an ideal solution,” commented Steve Wallman, founder and CEO of FOLIOfn.

A white paper discussing the theory and construction of FOLIOfn’s Target Date Folios—in an easy-to-understand and informative way—can be found at FOLIOfn’s website. The paper discusses the shortcomings of current target date fund offerings and how FOLIOfn has addressed these with its new suite of offerings.

About FOLIOfn
FOLIOfn, Inc. (www.foliofn.com) was voted “Best of the Web for Alternative Investing” by Forbes magazine. Its unique, patented Folio Investing offering enables investors to create their own Folios—much like creating a personalized ETF or mutual fund. Folios can provide significant tax advantages, ability to customize, transparency, and lower costs, while allowing for proper diversification. Investors can also choose from over 100 Ready-To-Go (RTG) Folios, representing different market indices, sectors, geographic locations and asset classes. In addition, through the FOLIOfn website, investors can purchase investment vehicles such as mutual fuds and ETFs cost-effectively. The FOLIOfn platform allows commission-free investing for a low monthly fee, as well as dollar-based and fractional share investing. Folios can be managed or unmanaged and are offered by FOLIOfn Investments, Inc. a registered broker dealer, and are not registered investment companies.

FOLIOfn, Innovative Online Brokerage Firm, Actively Licenses Patents and Technology

VIENNA, Virginia, February 19, 2008 — FOLIOfn, Inc., a leader in the online brokerage industry, has been actively licensing its patents and/or its technology to other companies. It has provided licenses for use in the advisor channel in the U.S., as well as for general use in Japan. more

FOLIOfn has numerous patents covering aspects of its unique technology platform that enables investors to create and manage multiple portfolios of securities, called Folios, with one click of the mouse. In recognition of this achievement, Forbes magazine named FOLIOfn the “Best of the Web for Alternative Investing.”

“We continue to seek licensees of our patents and technology,” said Steve Wallman, founder and CEO of FOLIOfn. “We currently have 12 issued patents, including those that pertain to FOLIO Investing as well as patents on various tax management interfaces, portfolio risk management and even a unique type of mutual fund.”

About FOLIOfn
FOLIOfn’s FOLIO Investing offering (www.folioinvesting.com) represents the next generation in investing, after mutual funds and Exchange-Traded Funds (ETFs). Its unique, patented FOLIO Investing enables investors to create their own Folios, much like creating a personalized ETF or mutual fund. This affords significant tax advantages, ability to customize, transparency and lower costs, while allowing for proper diversification. Investors can also choose from more than 100 Ready-To-Go Folios, representing different market indices, sectors, geographic locations and asset classes. FOLIOfn recently launched conservative, moderate and aggressive versions of target-date Folios, as well. Plus, the firm offers three Bear Market Folios, designed to increase in value as the broad market decreases in value. Investors can also purchase investment vehicles such as ETFs and mutual funds cost-effectively. The FOLIOfn platform allows commission-free investing for a low monthly fee, as well as dollar-based and fractional share investing. Folios can be managed or unmanaged and are offered by FOLIO Investments, Inc., a registered broker dealer and are not registered investment companies. FOLIOfn also provides a comprehensive platform for more than 150 registered investment advisory firms, independent broker-dealers and money managers through its FOLIO Advisor service (www.folioadvisor.com).

FOLIOfn, Innovative Online Brokerage Firm, Licenses Patents To Sharebuilder

VIENNA, Virginia, February 7, 2008 — FOLIOfn, Inc., a leader in the online brokerage industry, has licensed a subset of its patents to Sharebuilder Corporation (www.sharebuilder.com), for limited use in the U.S. and Canada. This is the third time that FOLIOfn (www.foliofn.com) has licensed its patents and/or its technology to other companies. Previously, it has provided licenses for use in the advisor channel in the U.S., as well as for general use in Japan.

FOLIOfn Partners with ICLUBcentral: A Perfect Marriage for Smarter Investing

VIENNA, VIRGINIA JAN. 9, 2008 — FOLIOfn, the innovative online brokerage firm, and ICLUBcentral, the leading provider of accounting software and online analysis tools for investors and investment clubs, announced a new partnership designed to benefit investors. more

The partnership will be a boon to ICLUB’s 200,000 members from across the country, many of whom are active in investment clubs. ICLUB’s software helps its members select the best securities to invest in, while FOLIOfn furnishes an extraordinarily cost-effective platform for executing trades and managing these portfolios.

“FOLIOfn offers a superb and unique investment platform to our community of fundamental investors,” said Doug Gerlach, President of ICLUBcentral. “We believe that individuals can successfully manage their own portfolios; FOLIOfn shares our commitment to providing the right tools to help individual investors achieve their investment goals. Combining FOLIOfn’s services and ICLUBcentral’s educational resources is the perfect marriage for smarter investing.”

“We are delighted to partner with ICLUBcentral. The FOLIO Investing platform is the ideal venue for their members to manage their portfolios,” commented Steve Wallman, founder and CEO of FOLIOfn. “We strongly support ICLUBcentral’s dedication to better investing and education.”

FOLIOfn (www.foliofn.com) was voted “Best of the Web for Alternative Investing” by Forbes magazine. Its unique, patented Folio Investing enables investors to create their own Folios much like creating a personalized ETF or mutual fund. This affords significant tax advantages, ability to customize, transparency, and lower costs, while allowing for proper diversification. Investors can also choose from about 100 Ready-To-Go Folios, representing different market indices, sectors, geographic locations and asset classes. FOLIOfn recently launched conservative, moderate and aggressive versions of target-date Folios, as well. In addition, investors can purchase investment vehicles such as mutual funds and ETFs cost-effectively. The FOLIOfn platform allows commission-free investing for a low monthly fee, as well as dollar-based and fractional share investing. Folios can be managed or unmanaged and are offered by FOLIO Investments, Inc. a registered broker dealer, and are not registered investment companies.

Based in Cambridge, Massachusetts, ICLUBcentral Inc. (http://www.iclub.com) develops quality tools for individual investors and investment clubs, including software products, web sites and the market-beating Investor Advisory Service newsletter. Its products include:

  • The online community for smarter investors at StockCentral.com, including web-based analysis and screening tools, an integrated Data Service, and community discussion forums
  • Stock analysis software: Investor’s Toolkit, Stock Analyst, Classic Plus, and Take Stock, stock screening software: Stock Prospector
  • Equity investing newsletter: the Investor Advisory Service

Since 1989, ICLUBcentral has developed club accounting software and web sites for investment clubs. Today, ICLUBcentral’s online club management suite at www.myiclub.com and desktop Club Accounting solutions are used by the majority of investment clubs and other investment partnerships in the United States, making ICLUBcentral the clear market leader in investment club solutions.

ICLUBcentral also organizes a variety of educational seminars, webinars and other events for investors, including the InvestEd conference, annually drawing hundreds of investors and investment club officers from around the country.

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2007

Folio Investing Helps Avoid Year-End Tax Bite of Mutual Funds: A Problem Investors May Not Be Aware Of

VIENNA, Virginia, December 12, 2007 — People who want to reduce their tax bill next April should start taking steps now, before the end of the year—and that includes tallying up the gains and losses from their investments. Investors with mutual funds in their taxable portfolios may find themselves hit with an unexpected tax bite. Each year, mutual funds are required by Federal law to distribute at least 98% of realized capital gains, interest, and dividends received to all shareholders. Investors can be hit with a taxable gain on a mutual fund, even if they’ve only held the fund for a day, or if the fund has had a loss for the year. Mutual funds can cause tax problems because investors have no control over when and how much their funds realize in gains. This is a problem investors may not be aware of. more

The tax bite can be enormous. As reported in Money magazine on April 18, 2007, shareholders in taxable mutual fund accounts got “slammed by Uncle Sam in 2006.” They paid at least $23.8 billion in taxes, according to Lipper, a fund research company, which tabulated this number in their report entitled “Taxes in the Mutual Fund Industry 2007: Assessing the Impact of Taxes on Shareholder Returns,” That figure includes the impact on investors who simply held their funds and reinvested their distributions. Over time, this can seriously erode investors’ returns. According to Lipper, during the past 20 years, the average investor in a taxable stock mutual fund gave up the equivalent of 17% to 44% of his returns to taxes.

FOLIOfn (www.foliofn.com), an innovative on-line brokerage firm, offers a solution to this problem. It’s called a Folio—an entire basket of securities that can be managed with just the click of a mouse. Folio Investing™ offers significant tax advantages over mutual funds, such as the ability to harvest tax losses while deferring gains. And because Folios are not mutual funds, Folios allow investors to avoid the embedded gains and forced distributions that come from mutual funds.

With Folios, investors directly own the securities in their portfolio and can manage the tax consequences. For example, if you hold a Folio for a year, you can sell any losers to realize more short-term losses before that year-end, then defer selling the winners until after that year-end to realize long-term capital gains—something you cannot do with mutual funds.

FOLIOfn Investments , named “Best of the Web for Alternative Investing” by Forbes magazine, allows diversification, customization, transparency and the ability to purchase fractionalized shares of securities. The proprietary and patented FOLIOfn trading platform is an easy-to-use, Web-based trading system. The firm also delivers innovative investment solutions to financial professionals and institutions through FOLIOfn Institutional, a division of FOLIOfn Investments, Inc. (www.folioadvisor.com), headquartered in Vienna, Va., (703) 245-5757. Folios may, or may not be, professionally managed. FOLIOfn Investments is a registered broker-dealer.

Transamerica Financial Advisors Announces Alliance with FOLIOfn Institutional for New ETF Program

LOS ANGELOS, September 27, 2007 — Transamerica Financial Advisors, Inc. (“Transamerica”) announced the selection of FOLIOfn Institutional to launch its new Transamerica I-Series, a separately managed account program utilizing Exchange Traded Funds (ETFs). more

This launch is part of a long-range strategy to introduce new and innovative investment programs to the Transamerica advisor network. Scheduled for late September, the rollout will initially consist of five ETF-based asset allocation portfolios developed for clients of Transamerica’s Investment Advisor Representatives.

“We created this program to satisfy the demand from advisors for a model-based ETF solution that was low-cost and provided broad diversification for their clients,” explained Sandy Brown, President of Transamerica Financial Advisors. Eventually, the Transamerica I-Series product offering will be expanded to include other ETF-based strategies such as core-satellite and target maturity portfolios. “FOLIOfn Institutional’s innovative technology platform is ideally suited to ensure a successful launch,” Brown said. “The Transamerica I-Series strengthens Transamerica’s overall fee-based offerings and will attract new advisors to our Advisory programs.”

“We are excited about the opportunity to align our firm with a market leader like Transamerica Financial Advisors on this important initiative,” commented Greg Vigrass, President of FOLIOfn Institutional. “We see this roll-out as significant and feel the opportunity exists to jointly deliver some innovative and unique programs.”

About Transamerica Financial Advisors, Inc.
A full-service broker/dealer, Transamerica Financial Advisors, Inc. is a Financial Industry Regulatory Authority (FINRA) member broker/dealer, a SEC registered broker/dealer and investment advisor, and an AEGON company.

AEGON is one of the world’s leading life insurance and pension companies, and a provider of investment products. With headquarters in The Hague, the Netherlands, AEGON companies employ approximately 27,000 people. AEGON’s established markets include the United States, the Netherlands and the United Kingdom. Visit https://tfa.transamerica.com for more information about Transamerica Financial Advisors.

About FOLIOfn Institutional
FOLIOfn delivers innovative investment solutions to financial professionals and institutions through FOLIOfn Institutional, a division of FOLIOfn Investments, Inc. (www.folioadvisor.com), headquartered in Vienna, Va., (703) 245-5757. The proprietary and patented FOLIO trading platform is an easy-to-use, Web-based trading system that enables users to customize portfolios of securities, called FOLIOs, which they can buy or sell in a single transaction. Financial institutions can easily make FOLIOs available to thousands of clients.

Two Leading Wall Street Experts, Clients of FOLIOfn, to Speak at “The Money Show” in Washington, DC

VIENNA, Virginia, September 5, 2007 — FOLIOfn, Inc., an innovative online securities firm, announced today that two Wall Street experts—both clients of their FOLIOfn Institutional division—will give presentations at The Money Show on Sept. 6–8, 2007 in Washington, DC. Ken Kam, Portfolio Manager for Marketocracy Masters 100 Fund, and John Reese, Founder and CEO of Validea.com and Validea Capital Management, will be among the 50 leading financial experts slated to address this major investment forum. About 5,000 financial professionals and investors from all over the country are expected to attend the event, to be held at the Wardman Park Marriott. more

Ken Kam of Marketocracy and John Reese of Validea will both address the workshop entitled “Knowing When to Fold ’Em,” (11:35 am–12:20 pm on Sept. 7). Following that, Mr. Kam will speak at panels entitled “MSN Money’s Strategy Lab: Beat the Market Six Months at a Time” (3:00 pm–3:45 pm on Sept. 9); “Managing Your Family’s Money: Succession Planning” (8:00 am–8:45 am on Sept. 8) and “Technology and Biotechnology: The Next Wave” (12:30 pm–2 pm on Sept. 8). Mr. Reese of Validea will speak at a panel entitled “Invest Using the Strategies of Wall Street Legends” (5:45 pm–6:30 pm on Sept. 7 and also at 10:35 am-11:20 am on Sept. 8).

FOLIOfn Institutional’s proprietary FOLIO trading platform offers financial advisors a unique advantage in the investment business (www.folioadvisor.com). This easy-to-use, web-based investing system enables users to customize portfolios of securities—called FOLIOs—which they can buy or sell in a single transaction, and which financial institutions can easily make available to thousands of accounts.

In addition, FOLIOfn enables individual retail investors to benefit from the firm’s innovative technology platform. With a single click, investors can purchase and manage a diversified portfolio of securities—similar to creating your own mutual fund or Exchange-Traded Funds (ETFs). By using FOLIO Investing and investing in whole portfolios of securities, investors combine one of the best aspects of mutual funds (diversification) with the benefits of owning individual securities through a traditional brokerage service. Investors can create their own FOLIOs or select from 73 Ready-to-Go FOLIOs, based on various indexes, sectors, themes, styles, and various other investment choices that meet a wide variety of interests and goals.

The FOLIOfn model offers distinct benefits for investors: Customization and low cost, tax tracking tools, performance measurement, a FOLIO wizard to help investors decide what to select and customer service to make the most of all the FOLIO benefits.

“FOLIOs are the next generation offering after mutual funds and unparalleled in what they offer investors,” summarized Steven M.H. Wallman, founder and CEO of FOLIOfn. FOLIOs differ from mutual funds, in that they are not registered with the SEC and are managed by the individual owner, not a professional manager.

FOLIOfn will be exhibiting in booth #413 at The Money Show in Washington, DC. Press appointments with FOLIOfn at The Money Show can be arranged by contacting susan@assadi.com or kristen@assadi.com or by phone at 800 922 8792.

About FOLIOfn Institutional

FOLIOfn delivers innovative investment solutions to financial professionals and institutions through FOLIOfn Institutional, a division of FOLIOfn Investments, Inc. (www.folioadvisor.com), headquartered in Vienna, Va., (703) 245-5757. The proprietary and patented FOLIO trading platform is an easy-to-use, Web-based trading system that enables users to customize portfolios of securities, called FOLIOs, which they can buy or sell in a single transaction. Financial institutions can easily make FOLIOs available to thousands of clients.

Exclusive Financial Services for First Responders Available at Fire-Rescue International

ATLANTA, Georgia, August 24, 2007 — First responders attending the Fire-Rescue International conference will be able to learn about exclusive financial services available to them from executives of the countrys only company dedicated to serving their financial needs. more

Company founder and former firefighter Dennis Smith and Vice Chairman, retired FDNY Fire Chief Peter Hayden of First Responders Financial Services, LLC, booth 4356, will be available to discuss the full spectrum of products developed and offered exclusively to those who protect our country: firefighters, EMT/paramedics, law enforcement officers and nurses.

Financial services and products are available to individuals and institutions including:

  • A fully liquid, high interest-bearing institutional cash management account provided through FOLIOfn Investments, Inc. that allows fire departments to better manage their resources while earning a very attractive interest rate. These accounts also offer extended FDIC insurance coverage for balances up to $1.75 million.
  • A Responders Rewards program that provides up to 40 percent discounts from hundreds of online retailers including Target, Sharper Image and Petco.
  • Discount Automobile and Home insurance underwritten by Hartford Insurance.
  • A First Responders rewards credit card that offers an introductory 0 percent APR.
  • A full-service discount mortgage program offered through Carteret, the countrys largest mortgage brokerage.

First Responders Financial Services provides exclusive tailor-made financial services and products to enhance the lives of our nations first responders. Membership is free to qualified first responders and their immediate families.

For more information, come to booth 4356 or visit www.firstresponders.com

FOLIOfn to Sponsor Major Investment Education Conference in California

VIENNA, Virginia, August 8, 2007 — FOLIOfn will be a sponsor of a major investment education conference called InvestEd in Costa Mesa, Ca. The conference—scheduled for August 18–19—will attract about 300 officers of investment clubs representing thousands of members in investment clubs from across the country. They will gather for a weekend of seminars about the latest trends in better investing, including stock analysis, software and portfolio strategies. more

FOLIOfn (www.foliofn.com) is an innovative online brokerage firm based in the Washington, DC metro area, ideally suited to meeting the needs of individual investors. Its unique, patented Folio Investing enables investors to create their own Folios, much like creating a personalized ETF or mutual fund. This affords significant tax advantages, ability to customize, transparency, and lower costs, while allowing for proper diversification. Investors can also choose from over 75 Ready-To-Go (RTG) Folios, representing different market indices, sectors, geographic locations and asset classes. In addition, investors can purchase investment vehicles such as mutual funds and ETFs cost-effectively, thanks to the platform. The FOLIOfn platform allows for commission-free investing for a low monthly fee, as well as dollar-based and fractional share investing.

Ryan Walker, Marketing Manager at FOLIOfn, will be demonstrating the unique Folio Investing platform at the InvestEd Conference Cyber Cafe.

FOLIOfn has a partnership with ICLUBcentral (www.iclub.com), a leading provider of software to help individual investors manage their stock portfolios and investment clubs. ICLUBcentral has 200,000 members from across the country and organizes a variety of educational seminars, webinars and other events, including the InvestEd conference, which is their largest event of the year.

Archie Richards, Expert on ETFs, to Address Major African Investment Forum — Names FOLIOfn as: “The Best U.S. Brokerage Firm for Long-Term Investing”

VIENNA, Virginia, July 25, 2007 — Archie M. Richards, Jr., newspaper columnist and author of the authoritative book Understanding Exchange Traded Funds (McGraw-Hill, 2007), will address 300 investors and representatives from major African investment firms in Johannesburg on July 30–31. Although his key message is that ETFs are an excellent way to buy the market, he will declare that, in his opinion, FOLIOfn is “the best U.S. brokerage firm for long-term investing.” more

FOLIOfn (www.foliofn.com) is an innovative online brokerage firm based in the Washington, DC metro area. Its unique and patented Folio Investing provides investors the ability to purchase ETFs or other investment vehicles cost-effectively. It also enables investors to create their own Folios, much like creating a personalized ETF or mutual fund. This affords significant tax advantages, ability to customize, transparency, and lower costs, while allowing for proper diversification.

Currently, Folio Investing is only offered in the United States, but FOLIOfn has stated its willingness to partner with non-US brokerages that could offer Folio Investing to their local markets.

Mr. Richards is invited to speak at the conference in Johannesburg, entitled “Exchange Traded Funds: Mechanics and Applications,” organized by the investment firm Jessina Naome & Associates, SA (www.jessinanaome.co.za). The conference features two days of presentations by global experts on ETFs and investment strategies.

Mr. Richards, who has over 30 years of experience as a broker and financial planner, is the President of Archie Richards Enterprises, LLC and writes a nationally-syndicated newspaper column in the U.S. read by thousands of people. His web site is www.archierichards.com. Mr. Richards has no affiliation with FOLIOfn Investments, Inc.

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2006

FOLIOfn Promotes Greg M. Vigrass to Newly Created Position of President and CEO of FOLIOfn Institutional

VIENNA, Virginia, September 15, 2006 — FOLIOfn Investments, Inc., recognized as one of the country’s most innovative online brokerage and investment companies, announced today that Greg M. Vigrass has been promoted to the newly created position of President and CEO of FOLIOfn Institutional. more

Vigrass, formerly Executive Vice President and President of FOLIOfn Investments, Inc., has been with the company for more than three years. This appointment reflects the rapid growth the firm has seen in its institutional investment business, and FOLIOfn’s increasing focus on this market segment.

“Independent broker-dealers, RIAs and wealth managers contribute significantly to the success of FOLIOfn,” said Vigrass. “The creation of this new position is in direct response to the steady and strong growth of FOLIOfn in the Institutional marketplace. I am excited that we are committing even more attention and resources to these essential business partners.”

The company currently has over 175 Institutional business partners who manage client assets through FOLIOAdvisor. With an increased focus on servicing this rapidly growing segment of its business, FOLIOfn expects to significantly enhance its partners’ practices through its innovative and patent-protected trading and wealth management solution. In addition, FOLIOfn has made a significant investment in technology development that will roll out new functionality and scalability in 2007. That development promises to complement well this additional management and sales attention in the institutional space.

Vigrass’ financial services experience began 16 years ago. Before joining FOLIOfn, he was Vice President, Sales and Marketing for Globenet Capital Corporation. Prior to that, he worked for 10 years at Charles Schwab & Co., Inc., spending significant time in institutional sales and service roles at Schwab Institutional’s Services for Investment Managers (SIM) division.

“Greg has been a great asset to our business,” said Steven M.H. Wallman, CEO and founder of FOLIOfn. “More and more advisors are coming to appreciate the power, time savings and cost savings of managing money on our unique platform, combined with the palpable client benefits that our platform provides. Greg is one of the key reasons why we’re having so much success in informing and attracting these clients.”

About FOLIOfn
FOLIOfn is an innovative online securities firm that provides a unique advisor platform, FOLIO Advisorsm, offering fully integrated, model-driven, portfolio and practice management services while supporting flexible pricing options including asset-based and flat-fee pricing. Advisors can efficiently deliver customized investment solutions for low fees that include trading, custody, clearing, tax management and reporting tools, model creation, rebalancing and online proxy voting. FOLIO Advisor offers client level customization tax relief methodology, and social, sector, and individual security exclusions. Founded by former U.S. Securities and Exchange Commissioner Steven M.H. Wallman, FOLIOfn has grown into one of the largest brokerages by number of trades handled in the U.S. Its websites are Folioadvisor.com and FOLIOfn.com.

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2005

Pentagon Federal Credit Union Names FOLIOfn As Its Exclusive Online Brokerage Provider

ALEXANDRIA, Virginia and VIENNA, Virginia, October 17, 2005 — Pentagon Federal Credit Union, the nation’s third largest credit union, and the Internet-based brokerage FOLIOfn Investments, Inc., today announced that FOLIOfn has become the exclusive provider of online brokerage and investment services for the credit union’s members. Pentagon Federal Credit Union has 650,000 members and is a product and service leader in the credit union industry. Its membership includes both active and retired U.S. Army, Air Force, Coast Guard and Department of Homeland Security personnel and their families, as well as VFW members and their families. more

“For many years we have searched to find the right provider of brokerage and investment services for our members, and we are very pleased to join forces with FOLIOfn,” said Pentagon Federal Credit Union CEO Frank Pollack. “They are a firm that understands and can support our mission of delivering best-in-class, high-value, easy-to-use services that are good for our members. FOLIOfn’s range of products and services meets the diverse investment needs of our membership—from the simplest and lowest-priced offerings for beginning investors to highly sophisticated ones for those who are more experienced,” Pollack said.

Through FOLIOfn, Pentagon Federal Credit Union members will be able to purchase a broad range of stocks, ETFs, mutual funds and ADRs, as well as invest in “Folios”—diversified, customizable portfolios of individual securities that investors can select and manage on their own. FOLIOfn also offers “Ready-to-Go Folios”—pre-built portfolios, based on various indices and investment styles, that contain up to 50 securities that investors can modify as they wish.

Pentagon Federal Credit Union members also can select from nine new “Mini Folios”—portfolios of between three and five ETFs each, with each portfolio representing an investing style, from short-term to long-term and conservative to aggressive. A simple-to-use FOLIO Wizard® makes it easy for investors to choose the Mini Folio that best fits their investment “personalities” and goals.

Like other Folios, the pre-built Mini Folios can be customized by the investor. Pentagon Federal Credit Union members with less than $15,000 to invest can own a Mini Folio for a special price of $5.00 per month, with no minimum investment. The cost includes five commission-free trades per month.

“We believe these Mini Folios will be an easy way for many of our members to begin an investing program with a properly diversified portfolio,” Pollack said. “They will be able to build and control their investment portfolios over time, and they will be able to do it on a very cost effective basis.”

FOLIOfn requires no minimum investment because the firm’s patented brokerage system can trade securities—including ETFs, stocks and funds—in fractions of shares, allowing customers to invest any amount of money and have it spread over a range of individual securities that they choose, based on their own investment interests and risk profiles. FOLIOfn’s system enables investors who could not otherwise own a broad portfolio of individual securities to obtain the benefits of diversification, along with the customization and control over tax consequences that only come with ownership of individual securities. The system also enables one of the securities industry’s lowest trading costs.

“Our firm’s mission is applying technology to bring services to the market that enable better investing for all investors—the small ones as well as the large ones,” said Steven M.H. Wallman, CEO of FOLIOfn Investments’ parent company, FOLIOfn, Inc. “We are very pleased to have the opportunity to provide these benefits to Pentagon Federal Credit Union members.”

FOLIOfn is a leading provider of brokerage services to the credit union industry. The firm also delivers its services to this market through its alliance with CUNA Mutual Group, the primary supplier of financial services solutions to credit unions and their members, worldwide. Through its CUNA Mutual alliance, FOLIOfn makes its brokerage services available to the members of more than 1,000 credit unions.

About FOLIOfn
FOLIOfn, Inc. (http://www.foliofn.com and http://www.folioadvisor.com) is a financial services and technology company that delivers leading-edge brokerage and investment solutions to financial services firms, investment advisors and individual investors. FOLIOfnoffers its services on both a full-service basis and a technology-licensed basis. Through its wholly-owned, registered clearing broker-dealer subsidiary, FOLIOfnInvestments, Inc. (member, NASD/SIPC), the company offers an integrated brokerage and technology platform featuring its patented, state-of-the-art Folio trading capability, as well as execution, clearance and settlement services. FOLIOfn’s wholly-owned proxy advisory and voting service, PROXYGovernance, Inc., provides company-specific proxy voting recommendations designed to support the growth of shareholder value, as well as voting services.

Built on the Folio-technology operating system and brokerage platform are a number of integrated applications, including:

  • FOLIOfn® online investing, offered directly to retail customers and through intermediaries, which lets individual investors buy customizable portfolios of securities in a single, low-cost transaction.
  • FOLIOAdvisor®, which allows investment advisory firms, and money managers to easily and cost effectively create and manage custom portfolios for their clients.
  • FOLIOManager®, with FOLIOAllocator® technology, which provides an efficient way for financial institutions, including banks, broker-dealers, mutual fund companies and insurance companies, to sponsor next-generation, uniquely flexible multi-manager, multi-security-type managed account programs.
  • FOLIOVote®, a fully web-based proxy voting platform. FOLIOfn was the first financial services company to make proxies, annual reports and proxy voting available to its clients online.

Major U.S. investment advisory firms use FOLIOfn’s brokerage and portfolio management services, while other domestic and international firms, including Nikko Cordial, Inc., have licensed FOLIOfn’s technology for internal use.

FOLIOfn and KPMG to Offer Turn-Key Managed Account Program for Financial Services Firms

VIENNA, Virginia, March 21, 2005 — 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. more

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 FOLIOfn
FOLIOfn, Inc. (http://www.foliofn.com and http://www.folioadvisor.com) is a financial services and technology company that delivers leading-edge brokerage and investment solutions to financial services firms, investment advisors and individual investors. FOLIOfnoffers its services on both a full-service basis and a technology-licensed basis. Through its wholly-owned, registered clearing broker-dealer subsidiary, FOLIOfnInvestments, Inc. (member, NASD/SIPC), the company offers an integrated brokerage and technology platform featuring its patented, state-of-the-art Folio trading capability, as well as execution, clearance and settlement services. FOLIOfn’s wholly-owned proxy advisory and voting service, PROXYGovernance, Inc., provides company-specific proxy voting recommendations designed to support the growth of shareholder value, as well as voting services.

Built on the Folio-technology operating system and brokerage platform are a number of integrated applications, including:

  • FOLIOfn® online investing, offered directly to retail customers and through intermediaries, which lets individual investors buy customizable portfolios of securities in a single, low-cost transaction.
  • FOLIOAdvisor®, which allows investment advisory firms, and money managers to easily and cost effectively create and manage custom portfolios for their clients.
  • FOLIOManager®, with FOLIOAllocator® technology, which provides an efficient way for financial institutions, including banks, broker-dealers, mutual fund companies and insurance companies, to sponsor next-generation, uniquely flexible multi-manager, multi-security-type managed account programs.
  • FOLIOVote®, a fully web-based proxy voting platform. FOLIOfn was the first financial services company to make proxies, annual reports and proxy voting available to its clients online.

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2004

TheStreet.com and FOLIOfn Join Forces to Offer “TheStreet.com Folios”

NEW YORK, New York and VIENNA, Virginia, October 13, 2004 — TheStreet.com, Inc. (Nasdaq:TSCM), a leading multimedia provider of financial commentary, research, analysis and news, today announced that it has teamed with FOLIOfn, Inc., an online investing firm and financial services technology provider, to create “TheStreet.com Folios.” This new approach to investing combines the financial expertise found in TheStreet.com’s premium subscription products with FOLIOfn’s patented portfolio investing system’s low-cost and fractional shares trading advantages. The program will kick-off with the launch of the “Action Alerts PLUS Folio,” available at www.foliofn.com/thestreet, which is designed to make investing easier and more convenient for a diverse range of self-directed investors. more

“Some of our subscribers asked us for an easier way to keep up with the high amount of recommendations that are given in our premium subscription offerings,” said James Lonergan, TheStreet.com president and COO. “We’ve listened and understand their needs. By integrating our subscriptions with FOLIOfn’s cutting-edge investing technology, we have created a way for investors at every level to implement a practical and complete model-based investing strategy based on their individual needs and financial goals.”

FOLIOfn’s patented, Web-based brokerage technology will empower investors to take full advantage, simply and easily, of TheStreet.com’s portfolio recommendations, actions and advice. The technology enables individuals to invest in dollar amounts with no minimum investment, and allows them to buy and sell fractions of shares. Investors can buy an entire portfolio at once, and have any dollar amount automatically distributed at the proper weights across all of the stocks in the portfolio.

FOLIOfn also makes it quick and easy to mimic a portfolio as it is updated. When TheStreet.com updates its model, subscribers can go to FOLIOfn’s web site where they can adjust their own portfolios to mimic the model, easily placing all the necessary buy and sell orders with just a few mouse clicks. Investors also can customize their portfolios, buying or selling individual securities as they wish at any time.

Trading costs for an actively managed portfolio also are attractive using FOLIOfn’s “window trading” system.

“We are very pleased that TheStreet.com has chosen our unique online investing service to empower their Action Alerts PLUS subscribers to put this complete portfolio strategy into practice,” said Steven M.H. Wallman, CEO of FOLIOfn. “FOLIOfn brings a unique accessibility and affordability to portfolio-based investing that will add real value to the Action Alerts PLUS offering.”

In addition to the Action Alerts PLUS Folio, other subscription products using TheStreet.com model portfolios will be integrated with FOLIOfn technology in the near future.

About TheStreet.com, Inc.
TheStreet.com, Inc. (Nasdaq: TSCM) is a leading provider of independent research, financial commentary, analysis and news. Founded in 1996, the Company completed its initial public offering in May 1999. On the Internet, its premium, subscription-based Web site, “RealMoney.com” is accompanied by the professionally oriented subscription sites, “Street Insight,” “RealMoney Pro Advisor,” and the free, flagship site, “TheStreet.com.” The Company also produces a suite of subscription services for use by professionals and self-directed investors, each designed to help a specific segment of the investing public make better-informed investing and trading decisions. TheStreet.com’s wholly-owned subsidiary, Independent Research Group LLC (IRG), develops independent research and services focused exclusively on meeting the performance needs of hedge funds and money managers. IRG’s proprietary equity research provides in-depth, action-oriented investment ideas from its in-house, top-tier industry analysts, without the conflicts created by investment banking, underwriting and proprietary trading.

About FOLIOfn
FOLIOfn, Inc. (www.foliofn.com and www.folioadvisor.com) is a financial services and technology company that delivers leading-edge brokerage and investment solutions to financial services firms, investment advisors and individual investors. FOLIOfn offers its services on both a full-service basis and a technology-licensed basis. Through its wholly-owned, registered clearing broker-dealer subsidiary, FOLIOfn Investments, Inc. (member, NASD/SIPC), the company offers an integrated brokerage and technology platform featuring its patented, state-of-the-art Folio trading capability, as well as execution, clearance and settlement services. FOLIOfn’s wholly-owned proxy advisory and voting service, PROXY Governance, Inc., provides company-specific proxy voting recommendations designed to support the growth of shareholder value, as well as fully automated voting services.

Built on top of the underlying Folio-technology operating system and brokerage platform are a number of integrated applications, including:

  • FOLIO Investing®, offered directly to retail customers and through intermediaries, which lets individual investors buy customizable portfolios of securities in a single, low-cost transaction.
  • FOLIO Advisor®, which allows advisory firms, money managers and RIAs to easily and cost effectively create and manage custom portfolios for their clients.
  • FOLIO Manager℠, with FOLIO Allocator℠ technology, which provides an efficient way for financial institutions, including banks, broker-dealers, mutual fund companies and insurance companies, to sponsor next-generation, uniquely flexible multi-manager, multi-security-type managed account programs.
  • FOLIO Vote®, a fully web-based proxy voting platform. FOLIOfn was the first financial services company to make proxies, annual reports and proxy cards available completely electronically.

Firms including Quick & Reilly, Zacks Investment Management and Brinker Capital have applications running on an ASP basis with FOLIOfn, while other domestic and international firms, including Nikko Cordial, Inc., have licensed the FOLIOfn technology for internal use.

Nirvana Systems Recommends FOLIOfn as Broker for Its Omni Trader Users

VIENNA, VA, June 16, 2004 — FOLIOfn, the innovative online brokerage firm and financial services technology provider, announced it has cooperated with Nirvana Systems, the developer of OmniTradertm technical analysis software, to allow OmniTrader users to interface with FOLIOfn’s brokerage Web site from within OmniTrader. The interface will allow OmniTrader users to more efficiently build and trade their portfolios.

more

OmniTrader automates the technical analysis process to quickly identify “buy” and “sell” candidates among a selected field of stocks. OmniTrader users typically trade between three and five stock positions per day, buying stocks that have upward pressure and selling ones that are losing momentum. The new OmniTrader interface permits users to quickly adjust their target holdings and, with just a few mouse clicks, have them sent directly to FOLIOfn for execution.

“FOLIOfn’s system complements our software and makes it attractive for investors of all sizes,” said Nirvana Systems CEO Ed Downs. “Our investors prefer holding a relatively large, diversified portfolio of securities to reduce risk, as well as having very economical trading to manage their portfolios effectively. If an investor shifts in and out of five positions a day, he will generate 200 trades in a month. Using ordinary discount brokers that charge from $7 to $10 per trade, that’s $1,400 to $2,000 per month in commissions. An investor with a $10,000 retirement account is going to have a difficult time overcoming those costs.

“The FOLIOfn system permits trading of fractional shares, so individuals with any amount to invest can buy a fully diversified portfolio,” Downs said. “And the firm’s extremely low trading costs make an active strategy like ours practical for everyone. FOLIOfn’s flat-fee trading plans begin at $19.95 per month, or $199 per year, for 200 trades per month. That averages out to less than 10 cents a trade.”

Nirvana Systems’ OmniTrader initiative with FOLIOfn follows last month’s introduction by Reuters.com of eight Reuters Select Folios that can be purchased and efficiently updated on the FOLIOfn Web site. The eight model portfolios are based on the Reuters Select stock screening system.

“We’re seeing growing interest among independent research organizations, investment newsletters and technology providers who recognize the advantages our brokerage platform provides for their customers,” said FOLIOfn Executive Vice President Greg Vigrass. “Our technology, for the first time, makes it affordable for many customers of these firms to actually put their portfolio strategies into practice. We’re pleased to be creating these new opportunities,” Vigrass said.

About FOLIOfn
FOLIOfn, Inc. (www.foliofn.com and www.folioadvisor.com) is a financial services and technology company that delivers leading-edge brokerage and investment solutions to financial services firms, investment advisors and individual investors. FOLIOfn offers its services on both a full-service basis and a technology-licensed basis. Through its registered clearing broker-dealer subsidiary, FOLIOfn Investments, Inc., the company offers an integrated brokerage and technology platform featuring its patented, state-of-the-art Folio trading capability, as well as execution, clearance and settlement services. Built on top of the underlying Folio-technology operating system and brokerage platform are a number of current applications, all available and integrated together on a single system, including:

  • FOLIO Investing®, offered directly to retail customers and through intermediaries, which lets individual investors buy customizable portfolios of securities in a single, low-cost transaction.
  • FOLIO Advisor℠, which allows advisory firms, money managers and RIAs to easily and cost effectively create and manage custom portfolios for their clients.
  • FOLIO Manager℠, now with FOLIO Allocator℠ technology, which provides an efficient way for financial institutions, including banks, broker-dealers, mutual fund companies and insurance companies, to sponsor next-generation, uniquely flexible multi-manager, multi-security-type managed account programs.

Firms including Quick & Reilly, Zacks Investment Management and Brinker Capital have applications running on an ASP basis with FOLIOfn, while other domestic and international firms, including Nikko Cordial Corporation, have licensed the FOLIOfn technology for internal use.

Reuters.com and FOLIOfn to Offer Reuters Select Folios

VIENNA, Virginia, May 11, 2004 — FOLIOfn, Inc., the innovative online brokerage firm and financial services technology provider, today announced it has teamed up with Reuters.com to market Reuters Select Folios—investment portfolios that combine the benefits of Reuters.com’s stock screening expertise with FOLIOfn’s low-cost, fractional shares trading and portfolio management technology. The Folios, which are available exclusively through FOLIOfn at www.foliofn.com, for the first time make it practical for all investors to cost-effectively implement complete portfolio strategies based on independent investment research. more

Vienna, VA, May 11, 2004

Reuters Select Folios consist of eight stock selection models applied to the FOLIOfn universe of more than 4,000 tradable securities. Reuters.com will provide regular updates for the model Folios—each containing approximately 35 to 50 securities that represent various investment styles, such as “Favored Value Plays” and “Relative Growth”. The Reuters Select Folios will be maintained in a premium section of FOLIOfn’s retail brokerage site and also will be accessible via links from the Reuters.com site (www.reuters.com). Investors who become FOLIOfn members can access the premium area of the site, including all eight model Folios and commentary outlining the strategy and screening criteria for each Folio, for a $99 annual fee.

“The FOLIOfn service will enable investors to simply, instantly and cost effectively make full advantage of our stock screens and research,” said Azhar Rafee, Global Head of Reuters.com. “This will be a very economical way for investors—large and small—to pursue a true, model-based investing strategy with complete, diversified portfolios,” he added.

FOLIOfn’s patented, Web-based brokerage technology will make buying and owning Reuters Select Folios affordable and easy. The technology permits buying and selling fractions of shares, allowing investors to buy these complete portfolios with no minimum investment. It also enables very low-cost trading (subscription plans for FOLIOfn members begin at 200 trades per month for $19.95 per month or $199 per year), allowing the portfolios to be very inexpensively updated as models change. Investors can “resynch” their Folios to the updated models with just a few mouse clicks. They also can customize the portfolios, buying or selling individual securities at any time.

“The combination of models based on Reuters.com screens with direct ownership of the individual securities in the portfolio provides tremendous advantages for investors,” said FOLIOfn Chairman and CEO Steven M.H. Wallman. “They have complete transparency of their holdings and costs. They can exclude specific securities or sectors from their portfolio that they may already own through other investments. They also can control when capital gains and losses are taken and, as a result, they can control their tax consequences.

“Financial advisors use our technology platform to administer separately managed accounts that provide these benefits for their clients,” Wallman said. “It’s a logical next step to use the same platform to empower self-directed investors to implement a strategy of this kind.”

The Reuters Select Folios will provide an active complement to FOLIOfn’s Ready-to-Go Folios, a group of more than 75 portfolios based primarily on indices and other quantitative measures that the brokerage firm makes available to its clients at no additional cost. All Folios offered by FOLIOfn are portfolios of individual securities, each of which is directly owned and capable of being traded by the investor at any time. Investors can modify model Folios or create their own. FOLIOfn offers no recommendations or advice, but provides a brokerage platform that allows investors to efficiently use the advice and recommendations of others.

About FOLIOfn
FOLIOfn, Inc. (www.foliofn.com and www.folioadvisor.com) is a financial services and technology company that delivers leading-edge brokerage and investment solutions to financial services firms, investment advisors and individual investors. FOLIOfn offers its services on both a full-service basis and a technology-licensed basis. Through its registered clearing broker-dealer subsidiary, FOLIOfn Investments, Inc., the company offers an integrated brokerage and technology platform featuring its patented, state-of-the-art Folio trading capability, as well as execution, clearance and settlement services. Built on top of the underlying Folio-technology operating system and brokerage platform are a number of current applications, all available and integrated together on a single system, including:

  • FOLIO Investing®, offered directly to retail customers and through intermediaries, which lets individual investors buy customizable portfolios of securities in a single, low-cost transaction.
  • FOLIO Advisor℠, which allows advisory firms, money managers and RIAs to easily and cost effectively create and manage custom portfolios for their clients.
  • FOLIO Manager℠, now with FOLIO Allocator℠ technology, which provides an efficient way for financial institutions, including banks, broker-dealers, mutual fund companies and insurance companies, to sponsor next-generation, uniquely flexible multi-manager, multi-security-type managed account programs.

Firms including Quick & Reilly, Zacks Investment Management and Brinker Capital have applications running on an ASP basis with FOLIOfn, while other domestic and international firms, including Nikko Cordial Corporation, have licensed the FOLIOfn technology for internal use.

FOLIOfn and Nikko Create Japan’s First Managed Account Program

VIENNA, Virginia, March 29, 2004 — FOLIOfn, Inc., an innovative online brokerage and financial services technology firm, said today that it has formed a partnership with Nikko Cordial Corporation, one of Asia’s largest financial services groups, that will enable Nikko to use FOLIOfn’s advanced portfolio management and trading technology to create and market the first separately managed account programs ever to be offered in Japan. Nikko will launch its marketing effort for the separately managed account offering, to be called “Premier-port,” in April.more

FOLIOfn’s portfolio management and trading technology will provide the systems backbone for Premier-port, which Nikko estimates will be at least a $20 billion business in ten years. The Web-based, portfolio management technology allows mass customization of client accounts, which can be linked to multiple investment models, enabling thousands of accounts to be efficiently managed by a single financial advisor. Additionally, all accounts managed in the system can be customized, for example, for specific security exclusions, tax strategies or other reasons.

Steven M. H. Wallman, CEO and Founder of FOLIOfn, said, “Our patented platform is now the first that allows for the seamless integration of equities and funds in one or multiple manager run models within a single account. While the program sponsor or advisor is now able to offer the most cost efficient and comprehensive managed investment program in the industry, the real winner is the client—who is provided with a customized investment solution at a fraction of the cost of traditional programs.”

“We conducted a worldwide search for a technology platform for Premier-port, and we have chosen FOLIOfn’s system for its flexibility, innovativeness, ease of integration and scalability,” said Nikko Cordial Advisors Chief Executive Officer Yoshishige Saigusa. Nikko Cordial Advisors, Ltd., an investment advisory company, is a new Nikko subsidiary that has been created to direct Nikko’s managed accounts business, and is licensed to use FOLIOfn’s technology in Japan.

“We are very pleased that our technology was chosen as the lever to open this new market in Japan,” said FOLIOfn Chairman and Chief Executive Officer Steven M.H. Wallman. “Nikko is a visionary company, and we are excited to be partnering with them in this venture that, we believe, will change the securities marketplace in one of the world’s largest financial markets.”

Nikko will market Premier-port through Nikko Cordial Securities, Inc., one of Japan’s largest, full-service securities companies, which offers investment products and services to individual investors. Nikko Cordial Securities also will establish Premier-port Advice Centers in its retail facilities to market and service Premier-port separately managed accounts.

“We are targeting a range of affluent investors, from the ‘mass affluent’ to ‘high net worth’ investors,” Saigusa said. “These are people who want a more individualized managed investment vehicle than a mutual fund, and we believe Premier-port will provide the combination of customization and sophisticated investment management they are seeking.”

Nikko’s commitment to making separately managed accounts an important part of its business is underscored by the fact that the company has joined the Washington D.C.-based Money Management Institute, the trade association for the managed accounts industry, and has become its first international member.

In the United States, separately managed accounts are achieving popularity with the same affluent market segments, and realizing faster sales growth than mutual funds. According to Boston-based Financial Research Corporation, assets in separately managed accounts increased by 29 percent in 2003, while mutual fund assets increased 25 percent.

The efficiency of FOLIOfn’s portfolio management technology, its fractional shares trading capability and its “window trading” system, which dramatically lowers trading costs by internally aggregating and netting all trades in a given security from all accounts, allow separately managed accounts to be cost-effectively offered to a broader range of investors than previously has been possible. These investment vehicles traditionally have been limited to high net worth investors.

Adapting FOLIOfn’s system for Nikko’s Premier-port program required innovative solutions for a number of significant challenges. For example, FOLIOfn created a generic Application Programming Interface to allow its technology to interface with Nikko’s existing portfolio accounting system. The “front-end” of FOLIOfn’s system had to be adapted to accommodate Kanji, the Japanese alphabet system of approximately 2,000 characters.

FOLIOfn also added the ability to short-sell securities to accommodate mixed “long-short” models planned for the separately managed account program. The company adapted its system to accommodate Japanese securities and currency, and other functions were made to satisfy the demands of regulators and Japanese investors. The pages of the Web-based system were given a look-and-feel, and navigation reflecting Nikko’s branding and operational needs. FOLIOfn also trained Nikko’s IT developers to equip them to launch and maintain the system.

“The task was very comprehensive,” Wallman said, “but it was made much easier by the fact that our system is Web-based and totally agnostic in its ability to support any language, security type or currency. This capability was extremely important to Nikko.”

FOLIOfn’s technology currently is being used by more than 800 financial institutions on either a turnkey platform or licensed basis.

“In the licensing arena, we’re seeking and forming alliances with domestic and international partners who can provide scale, access to important markets and other strategic advantages,” Wallman said.

About FOLIOfn
FOLIOfn, Inc. (www.foliofn.com and www.folioadvisor.com) is a financial services and technology company that delivers leading-edge brokerage and investment solutions to financial services firms, investment advisors and individual investors. FOLIOfn offers its services on both a full-service basis and a technology-licensed basis. Through its registered clearing broker-dealer subsidiary, FOLIOfn Investments, Inc., the company offers an integrated brokerage and technology platform featuring its patented, state-of-the-art Folio trading capability, as well as execution, clearance and settlement services. Built on top of the underlying Folio-technology operating system and brokerage platform are a number of current applications, all available and integrated together on a single system, including:

  • FOLIO Investing®, offered directly to retail customers and through intermediaries, which lets individual investors buy customizable portfolios of securities in a single, low-cost transaction.
  • FOLIO Advisor℠, which allows advisory firms, money managers and RIAs to easily and cost effectively create and manage custom portfolios for their clients.
  • FOLIO Manager℠, now with FOLIO Allocator℠ technology, which provides an efficient way for financial institutions, including banks, broker-dealers, mutual fund companies and insurance companies, to sponsor next-generation, uniquely flexible multi-manager, multi-security-type managed account programs.

Firms including Quick & Reilly, Zacks Investment Management and Brinker Capital have applications running on an ASP basis with FOLIOfn, while other domestic and international firms, including Nikko Cordial Corporation, have licensed the FOLIOfn technology for internal use.

About Nikko Cordial Corporation
Nikko Cordial Corporation (www.nikko.jp), a company whose shares are traded on the Tokyo, Osaka, Nagoya, Frankfurt, Düsseldorf, Luxembourg, Euronext (Paris) and Singapore stock exchanges, is one of the largest financial corporate groups in Japan offering total financial services with a focus on securities services. The company was established as a new corporate group providing innovative and comprehensive financial solutions in October 2001, when Nikko Securities Co., Ltd. was reorganized into a holding company after over 80 years since its foundation. Goals of Nikko Cordial Corporation are to strengthen ties with customers by proactively offering cutting-edge financial technology, introducing new products and services.

Nikko Cordial Advisors, Ltd., an investment advisory company, is a new Nikko subsidiary that has been created to direct Nikko’s managed accounts business. We will launch our separately managed account product, which will be named ”Premier-port”, in April 2004.

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2003

FOLIOfn Builds Mutual Fund Supermarket

VIENNA, Virginia, September 30, 2003 — FOLIOfn, Inc., the innovative online brokerage firm and financial services technology provider, announced that it has expanded its open-ended mutual fund offering on its FOLIO Advisor and FOLIO Manager platforms to create a one-stop shopping solution for financial advisors as well as separately managed account (SMA) and mutual fund wrap sponsors. The FOLIO Advisor platform has been unique in allowing advisors along with SMA and wrap sponsors to create and manage diversified portfolios of securities for multiple clients on a highly cost-effective basis. Furthermore, the FOLIO Manager platform offers the most efficient SMA platform in the market. more

Folios provide distinct benefits, including ease of mass customization, great tax efficiency, specific security exclusions, and simplicity of use as well as significant cost advantages. Through its FOLIO Advisor and integrated FOLIO Manager platforms, FOLIOfn provides superior portfolio management, model synchronization and trading front office technology, with integrated tax management tools, automated stock exclusions, online proxy voting, client level access, multiple client and firm level permissioning, and much more.

Steven M. H. Wallman, CEO and Founder of FOLIOfn, said, “Our patented platform is now the first that allows for the seamless integration of equities and funds in one or multiple manager run models within a single account. While the program sponsor or advisor is now able to offer the most cost efficient and comprehensive managed investment program in the industry, the real winner is the client—who is provided with a customized investment solution at a fraction of the cost of traditional programs.”

Wallman continued, “Advisors have been quick to use traditional securities—any that can be traded on an exchange or NASDAQ—in Folios. However, those who also wished to use open-end mutual funds along with traditional securities in models and allocations, or to keep such funds in a client’s portfolio, had to maintain these investments outside of our platform. Our new mutual fund supermarket meets the needs of advisors as well as sponsors and allows us to continue to grow our business. In addition, we also look forward to making mutual funds available to our retail client base later this year.”

Greg Vigrass, Vice President and Head of FOLIOfn Institutional Sales, added, “A deep mutual fund offering makes our platform even more powerful and allows us to further expand our already growing institutional sales efforts to advisors, brokers, banks, SMA sponsors and now also mutual fund wrap sponsors, as well as our technology licensing initiatives to large financial institutions. Advisors can now execute asset allocation strategies across mutual funds and individual securities all within one account using our highly efficient and robust platform—a distinct value-added and unique capability.”

For a full listing of the mutual fund families currently on the FOLIO Advisor platform, please go to www.folioadvisor.com

About FOLIOfn
FOLIOfn, Inc. (www.foliofn.com and www.folioadvisor.com) is a financial services technology company that delivers leading-edge brokerage and investment solutions to financial services firms, investment advisors and individual investors. Through its registered clearing broker-dealer subsidiary, FOLIOfn Investments, Inc., the company offers an integrated brokerage and technology platform featuring its patented state-of-the-art Folio-trading capability as well as execution, clearance and settlement services. Built on top of the underlying Folio-technology operating system and brokerage platform are a number of current applications all available and integrated together on a single system, including:

  • FOLIO Investing®, offered directly to retail customers and through intermediaries, lets individual investors buy customized portfolios of securities in a single transaction while providing very inexpensive discount brokerage services.
  • FOLIO Advisor® allows advisory firms, money managers and RIAs to easily create and manage custom portfolios for their clients.
  • FOLIO Managed Accounts® provides an efficient way for financial institutions, including banks, broker-dealers, mutual funds, and insurance companies, to sponsor a unique managed account program.

FOLIOfn offers it services on both a full-service basis and technology licensed basis. Firms such as Quick & Reilly, Brinker Capital, Zacks Investment Management, and over 700 credit unions have applications using FOLIOfn technology.

FOLIOfnAwarded a Patent for its Unique Method of FOLIO Investing

VIENNA, Virginia, September 12, 2003 — FOLIOfn, Inc., an innovative online brokerage firm and financial services technology provider, announced that it has received patent #6,601,044 on its proprietary window trading functionality. This is the fifth patent that FOLIOfn has been granted since its inception in 1998.more

The most recent patent grants a broad set of claims on the business method underlying FOLIOfn’s securities portfolio window trading functionality using odd lots and fractional shares. This methodology, known as “FOLIO Investing,” introduced a unique way for retail investors to create, easily and simply, a completely personalized basket of securities (a “Folio”) that can be bought, sold and modified at a low cost.

Building on our existing functionality and the FOLIO Investing concept, FOLIOfn also offers the most unique and efficient separately managed account (SMA) platform on the market—a platform that easily allows for mixing different security types in models managed by multiple managers within one account. Through FOLIO Advisor and FOLIO Manager, FOLIOfn provides superior portfolio management, model synchronization and trading front office technology, with integrated tax management tools, automated stock exclusions, online proxy voting, client level access, multiple client and firm level permissioning, and much more.

Steven M. H. Wallman, CEO and Founder of FOLIOfn, said, “We are pleased that this patent has been granted and expect that it will allow us to strengthen our position in the financial services marketplace as it is a rare occurrence that a patent is issued for a new way of investing. We feel that we are uniquely positioned as a robust brokerage solution that provides instant diversification on a cost-effective basis, permitting a smarter way to invest. We believe this patent will allow us to enhance our existing retail and advisor sales and partnership efforts as well as our technology licensing opportunities.”

Chris Broussard, Head of Retail Marketing for FOLIOfn, said, “Our proprietary portfolio window trading functionality is the backbone of the FOLIOfn system. Customers can purchase baskets of up to 50 securities in a single transaction by leveraging the fractional share and odd lot capabilities of FOLIOfn’s sophisticated brokerage platform. The smaller investor now can benefit from the advantages of a diversified portfolio that formerly only wealthy investors were able to access.”

The smaller investor now can benefit from the advantages of a diversified portfolio that formerly only wealthy investors were able to access.”

Greg Vigrass, Vice President and Head of FOLIOfn Institutional Sales, added, “This patent makes our technology even more attractive in the marketplace and will assist us in furthering our institutional brokerage services to advisors, brokers, banks and sponsors as well as our technology licensing initiatives to large financial institutions. The range of potential users and licensees is great given that the FOLIOfn platform is uniquely able to accommodate and offer value-added services across a wide range of offerings, from low cost retail investing to “recommended” accounts to advised accounts to multi-disciplinary accounts.”

About FOLIOfn
FOLIOfn, Inc. (www.foliofn.com and www.folioadvisor.com) is a financial services technology company that delivers leading-edge brokerage and investment solutions to financial services firms, investment advisors and individual investors. Through its registered broker-dealer subsidiary, FOLIOfn Investments, Inc., the company offers an integrated brokerage and technology platform featuring its unique state-of-the-art Folio-trading capability as well as execution, clearance and settlement services.

FOLIOfn offers it services on both a full-service basis and technology licensed basis. Firms such as Zacks Investments, Brinker Capital, Quick & Reilly, and about 700 credit unions have applications using FOLIOfn technology.

FOLIOfn Annouces its Expanded Institutional Sales Efforts

NEW YORK, New York, March 31, 2003 — FOLIOfn, Inc., an innovative financial services and technology provider, announced that it is dedicating new resources to its sales effort for FOLIOfn Institutional. Gordon Henderson has been appointed as President, FOLIOfn Institutional, responsible for licensing and offering FOLIOfn technology and technology services to larger financial services companies, including broker-dealers, insurance companies, mutual funds and banks. In addition, Greg Vigrass has joined as Vice President, Institutional Sales, and will be spearheading FOLIOfn’s sales efforts with financial advisors and advisory firms, money managers, and mutual funds and others participating in the Separately Managed Account (SMA) industry. more

“We are pleased to have the opportunity to include industry leaders such as Gordon Henderson and Greg Vigrass on our team,” said Steven Wallman, founder and CEO of FOLIOfn. “We look forward to leveraging Gordon and Greg’s breadth of expertise to expand our business as well as better serve the needs of our existing clients and partners.”

Gordon Henderson, President, FOLIOfn Institutional, said, “FOLIOfn’s powerful technology platform offers an extraordinary range of possibilities and is one of the most cost-efficient and scalable solutions of its kind. Since it is such a unique offering that has already sparked great interest from large financial institutions, both domestically and abroad, I look forward to demonstrating its capabilities to a targeted group of leaders throughout the financial industry. My role is to build on FOLIOfn’s licensing successes of last year. As the platform can accommodate such a wide range of needs, from low cost retail investing to advised accounts to multiple-disciplinary accounts, it makes the range of possible licensees quite broad.”

Greg Vigrass, Vice President, FOLIOfn Institutional, said, “I am very excited to be a part of the FOLIOfn team and look forward to expanding our sales effort, especially to advisors and independent broker-dealers nationwide. Over the next 3 months, we will put a lot of energy into strengthening our offering to these market segments. It is our intention to actively work with firms in these areas to ensure we deliver focused, effective solutions.”

Prior to joining FOLIOfn, Mr. Henderson was Chairman of Global Trade Technologies, Inc., a leading enterprise solutions provider of bond trading systems, and Chairman and CEO of TradingLinx, an Internet delivered platform for achieving post-trade/pre-settlement Straight-Through Processing. Mr. Henderson was also Founder, Chairman, and Chief Executive Officer of BondNet Trading Systems, Inc. Mr. Henderson also founded Corporate Bonds, Inc., a member of the New York Stock Exchange, and was employed as Senior Vice President of the Chicago Stock Exchange. He has over 30 years of experience in the financial services industry.

Before FOLIOfn, Greg Vigrass served as Vice President, Sales and Marketing for Globenet Capital Corporation. Prior to that, Mr. Vigrass worked for over 10 years at Charles Schwab & Co., Inc. where he spent much of his time in institutional sales and service roles at Schwab Institutional. He has over 15 years of experience in the financial services industry.

About FOLIOfn
FOLIOfn, Inc. (www.foliofn.com and www.folioadvisor.com) is a financial services technology company that delivers leading-edge investment solutions to financial services firms and investors.

Through its registered broker-dealer subsidiary, FOLIOfn Investments, Inc., the company offers an integrated brokerage platform featuring its unique basket-trading capability and state-of-the-art execution, clearance and settlement services.

  • FOLIO Investing℠, offered directly to retail customers and through intermediaries, lets individual investors buy customized portfolios of securities in a single transaction.
  • FOLIO Advisor℠ allows advisory firms, money managers and RIAs to easily create and manage custom portfolios for their clients.
  • FOLIO Managed Accounts℠ provides an efficient way for financial institutions, including banks, broker-dealers, mutual funds, and insurance companies, to sponsor a unique managed account program.

FOLIOfn offers it services on both a full-service basis and technology licensed basis. Firms such as Brinker Capital, Quick & Reilly, and more than 500 credit unions have applications using FOLIOfn technology.

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2002

FOLIOfn Enters into Multi-Million Dollar Licensing Transaction with a Gloval Financial Services Company

VIENNA, Virginia, August 28, 2002 — FOLIOfn, Inc. today announced that it is licensing its software and intellectual property to a major multi-national financial services company for use in a foreign market. The license arrangement is expected to bring in several million dollars in revenue during the balance of 2002 and into 2003. more

“This agreement marks a very significant milestone for our company,” said Steven Wallman, founder and CEO of FOLIOfn. “This market environment has been challenging to most financial services companies over the past two years. We launched our first offering at the beginning of a very volatile bear market, and have had to grow against that headwind ever since. Throughout, the terrific team at FOLIOfn has risen above that challenge. This agreement, with additional financing and revenues that are now committed from other sources, has allowed us to overcome those hurdles and to grow successfully as an independent company.”

“We are pleased that another major license has been sold—this is the second for the company—to another very sophisticated and substantial financial services firm that understands the unique power of our technology and the underlying concepts and innovations embodied in our technology. And we are very pleased that this transaction now allows us to define our own destiny from a financial standpoint, and eliminates the need for additional financing. We will still look for growth capital, but this license and the related revenue and financing activities we currently have committed should allow us to achieve our financial goals over the next couple of years,” added Wallman.

About FOLIOfn

FOLIOfn, Inc. (www.foliofn.com and www.folioadvisor.com) is a financial services technology company that delivers leading-edge investment solutions to financial services firms and investors.

Through its registered broker-dealer subsidiary, FOLIOfn Investments, Inc., the company offers an integrated brokerage platform featuring its unique basket-trading capability and state-of-the-art execution, clearance and settlement services.

  • FOLIO Investing, offered directly to retail customers and through intermediaries, lets individual investors buy customized portfolios of securities in a single transaction.
  • FOLIO Advisor allows advisory firms, money managers and RIAs to easily create and manage custom portfolios for their clients.
  • FOLIO Managed Accounts provides an efficient way for financial institutions, including banks, broker-dealers, mutual funds, and insurance companies, to sponsor a unique managed account program.

FOLIOfn offers it services on both a full-service basis and technology licensed basis. Firms such as Brinker Capital, Quick & Reilly, and more than 500 credit unions have applications using FOLIOfn technology.

FOLIOfn Announces New Sales and Marketing Initiatives

VIENNA, Virginia, August 12, 2002 — FOLIOfn, Inc. today announced plans to expand its sales and business development efforts in response to recent product enhancements and the increased interest in the use of FOLIOfn technology. Interest is coming from financial advisors, mutual funds, and participants in the Separately Managed Account (SMA) industry. more

“This new initiative, has been driven by interest from independent financial advisors, as well as SMA sponsors and money managers either participating, or wishing to participate in this rapidly growing segment of the managed money business,” said Mike Avon, director of business development at FOLIOfn.

“We are in the process of enlarging our sales and marketing groups to meet the demands of the marketplace,” said Steven Wallman, founder and CEO of FOLIOfn. “While increasing focus on selling and generating revenues, we also will further streamline other parts of our organization, because much of our technological developmental work has now been completed.”

To assist in this strategic initiative, industry consultant Alan Sislen has increased the consulting time that he will be spending with FOLIOfn. Mr. Sislen, founder and president of Managed Account Perspectives, LLC provides executive level management consulting to current and prospective participants in the growing managed account industry. Prior to starting this consulting firm, Mr Sislen was the first vice president and senior director of Merrill Lynch’s Investment Consulting Group.

“FOLIOfn is a entrepreneurial company that has developed an outstanding technology platform for the financial services industry,” said Mr. Sislen. “Although I have consulted with FOLIOfn during the last year, now that their platform is largely completed, I look forward to helping them begin to realize the potential of what they have built. The marketplace is looking for more efficient and more economical business models. FOLIOfn will be one of the leading firms providing the managed account industry and individual financial advisors with highly efficient ways to manage and intelligently grow their businesses.”

In addition to the company’s new advisor and managed accounts marketing initiatives will be the launch of a retail focused radio advertising campaign beginning in mid-August. Radio spots will initially be aired on WTOP AM/FM in the Washington D.C. metropolitan area. In addition to the radio campaign, the company has targeted cost effective online advertising programs.


About FOLIOfn
FOLIOfn, Inc. (www.foliofn.com and www.folioadvisor.com) is a financial services technology company that delivers leading-edge investment solutions to financial services firms and investors.

Through its registered broker-dealer subsidiary, FOLIOfn Investments, Inc., the company offers an integrated brokerage platform featuring its unique basket-trading capability and state-of-the-art execution, clearance and settlement services.

  • FOLIO Investing, offered directly to retail customers and through intermediaries, lets individual investors buy customized portfolios of securities in a single transaction.
  • FOLIO Advisor allows advisory firms, money managers and RIAs to easily create and manage custom portfolios for their clients.
  • FOLIO Managed Accounts provides an efficient way for financial institutions, including banks, broker-dealers, mutual funds, and insurance companies, to sponsor a unique managed account program.

FOLIOfn offers it services on both a full-service basis and technology licensed basis. Firms such as Brinker Capital, Quick & Reilly, and more than 500 credit unions have applications using FOLIOfn technology.

More Than 600 Credit Unions Now Offering MEMBERS FOLIO Investing

Vienna, VA/Madison, WI, July 30, 2002 — FOLIOfn, Inc. announced today that the MEMBERS FOLIO Investing program has quickly hit another important milestone—more than 600 credit unions now offer the value-added service. This service allows credit union members to easily and affordably buy individual securities, as well as entire baskets of securities, in one transaction. more

MEMBERS FOLIO Investing is offered through a partnership between FOLIOfn Investments, Inc. and the CUNA Mutual Group, the world’s leading credit union financial services provider. The investment service was brought to CUNA Mutual by MEMBERS Development Company, LLC, an alliance of credit unions and their service organizations.

“More and more credit unions are realizing the value of this service to their members,” says John Henry, CEO of MEMBERS Development Company, and senior vice president of sales and marketing for CUNA Mutual. “As online initiatives become of greater importance to the credit union in attracting and maintaining customers, MEMBERS FOLIO Investing continues to be at the forefront of their consideration for a low-cost, easy to use brokerage for their members.”

Credit unions that offer the service include Navy Federal Credit Union, the largest credit union in the world, and range from Coast Central Credit Union in California to Service Credit Union, which serves the greater New England area. Many credit unions are initiating multi-channel marketing programs to make their members aware of the service.

“Our members are excited about MEMBERS FOLIO Investing because it is such a wonderful value and its so easy for even a beginning investor can get started,” states Jeffrey Stewart, Manager of Atlantic States Financial LLC, located at Coastal Federal Credit Union. “The best part is, there are no minimums to invest and no inactivity fees. And the $2.95 buys and sells allow them to affordably start building a diversified portfolio.”

Members can now choose a new pricing plan: For just $14.95—the price of a single trade at some other brokerages—members can open an account and make unlimited commission-free window trades per month. Members can select other pricing plans as well, including a popular one that allows the buying and selling of securities for just $2.95—or make automatic, recurring investments for just $1.95—in our twice-daily windows. Members can also make trades that go directly to the market for $14.95. Regardless of the strategy they choose, members can invest in any dollar amount and there is no minimum investment to get started.

“Other services cannot match the benefits of MEMBERS FOLIO Investing,” says Steve Wallman, founder and CEO of FOLIOfn, Inc. “Some companies tout low commissions but they charge more if you sell securities. And some only let you trade once a week instead of twice daily,” he adds. “We offer by far the most comprehensive service, and we’ll continue to enhance it. We spend a lot of time working with our customers, listening to what they think and how we can improve our service.”

MEMBERS FOLIO Investing Features

  • Members can choose transactional pricing. Unlike some brokerage options, with MEMBERS FOLIO Investing both buys and sells are just $2.95. Automatic recurring investments are just $1.95.
  • Members can also choose a flat fee. For just $14.95 a month, members can open an account and create a FOLIO of up to 50 stocks. They can make unlimited commission-free trades.
  • Credit union members can buy entire baskets—or FOLIOs—of stocks with one click of the mouse.
  • Investors can also buy individual ETFs, REITs and closed-end bond funds, as well as baskets of those securities.
  • No matter what pricing plan they choose, customers can trade in the twice-daily windows. Where possible, investor trades are matched between the bid/ask spread, resulting in execution prices better than if the customer went direct to the market.

About FOLIOfn
FOLIOfn, Inc. (www.foliofn.com and www.folioadvisor.com) is a financial services technology company that delivers leading-edge investment solutions to financial services firms and investors.

Through its registered broker-dealer subsidiary, FOLIOfn Investments, Inc., the company offers an integrated brokerage platform featuring its unique basket-trading capability and state-of-the-art execution, clearance and settlement services.

  • FOLIO Investing, offered directly to retail customers and through intermediaries, lets individual investors buy customized portfolios of securities in a single transaction.
  • FOLIO Advisor allows advisory firms, money managers and RIAs to easily create and manage custom portfolios for their clients.
  • FOLIO Managed Accounts provides an efficient way for financial institutions, including banks, broker-dealers, mutual funds, and insurance companies, to sponsor a unique managed account program.

FOLIOfn offers it services on both a full-service basis and technology licensed basis. Firms such as Brinker Capital, Quick & Reilly, and more than 500 credit unions have applications using FOLIOfn technology.


About MEMBERS Development, CUNA Mutual
MEMBERS Development Co., is a credit union/CUNA Mutual jointly owned, credit union controlled, development company dedicated to identifying and providing high-value products and services to credit union members. The CUNA Mutual Group is the leading financial services provider to credit unions and their members worldwide, offering insurance, investment and technological solutions through strategic relationships and modern service channels.

FOLIOfn Platform to be Used by John Hancock Advisors and Sovereign Asset Management Corporation

VIENNA, Virginia, July 30, 2002 — FOLIOfn announced today that John Hancock Advisers and Sovereign Asset Management Corporation will manage model portfolios called Model Folios on the FOLIOfn platform. The two money management firms are part of the John Hancock Private Client Group and will make these Model Folios available to other advisory firms through www.folioadvisor.com, an advisor and managed account service. more

The availability of these professionally managed model portfolios is the latest enhancement to FOLIOfn’s service. This service is at the forefront of the fast-growing Multiple Discipline Account (MDA) market. With FOLIOfn’s advisor service, financial professionals can open a single account for a client and “subscribe” the client to multiple model portfolios. This allows advisors to efficiently invest client assets in various styles and asset classes managed by different managers. Additionally, through this service advisors can customize each account to a much greater degree than available through other systems. For example, they have the ability to select the most appropriate money managers within specific asset-classes, tailor specific holdings according to individual client needs and invest in mutual funds, equities, ETFs, REITs, closed-end funds, and ADRs, all within the same account. Other benefits include a simplified workflow, which features automated reporting, account opening, advisor set up and more.

“The value we bring to the financial services industry is our investment expertise and our experience in the Privately Managed Account Marketplace ,” said Gil Baker, Sales Senior Vice President, National Sales Director of John Hancock Advisers. “We are delighted to be able to deliver that expertise via Model Folios.”

Initially, John Hancock Advisers and Sovereign Asset Management Corporation will manage five Model Folios. They join a growing list of money management firms that have signed up to manage Model Folios for various managed account programs on the FOLIOfn platform. State Street Research & Management, Nuveen Asset Management, Fred Alger Management, AIM Private Asset Management, 1838 Investment Advisers, and others have already agreed to manage Model Folios for Brinker Capital’s new FOLIOfn-based managed account program.

“We are especially pleased to be able to offer Model Folios managed by John Hancock Advisers and Sovereign Asset Management Corporation, which rank among the top managers in the industry,” said Steve Wallman, CEO and founder of FOLIOfn.

“Clearly, offering managed account services on our platform is gaining momentum, and that’s attracting top money managers,” added Wallman. “We expect that momentum to grow as the financial services industry continues to search for superior ways to offer these services.”

The new model portfolios will be available later in the quarter. FOLIOfn says it will continue to add more top-name money managers over the coming quarters.

About FOLIOfn

FOLIOfn, Inc. (www.foliofn.com and www.folioadvisor.com) is a financial services technology company that delivers leading-edge investment solutions to financial services firms and investors.

Through its registered broker-dealer subsidiary, FOLIOfn Investments, Inc., the company offers an integrated brokerage platform featuring its unique basket-trading capability and state-of-the-art execution, clearance and settlement services.

  • FOLIO Investing, offered directly to retail customers and through intermediaries, lets individual investors buy customized portfolios of securities in a single transaction.
  • FOLIO Advisor allows advisory firms, money managers and RIAs to easily create and manage custom portfolios for their clients.
  • FOLIO Managed Accounts provides an efficient way for financial institutions, including banks, broker-dealers, mutual funds, and insurance companies, to sponsor a unique managed account program.

FOLIOfn offers it services on both a full-service basis and technology licensed basis. Firms such as Brinker Capital, Quick & Reilly, and more than 500 credit unions have applications using FOLIOfn technology.

FOLIOfn Launches New SMA Technology — FOLIO Allocator

VIENNA, Virginia, July 23, 2002 — FOLIOfn today announced FOLIO Allocator, its innovative, next-generation technology SMA (Separately Managed Account) product. This technology product will provide advisors, money managers, mutual fund companies, wrap sponsors and others with a unique and innovative way to deliver mass customizable higher-level client services more efficiently. more

FOLIO Allocator allows an advisor or sponsor to:

  • Create multiple templates and allocations for clients;
  • Easily administer accounts with multiple portfolios in each account;
  • Employ multiple managers from multiple firms for a single account;
  • Subscribe global allocations among all portfolios;
  • Have greater ability to customize for each customer.

With FOLIO Allocator, the advisor or sponsor significantly reduces the account opening workload and realizes far greater asset management efficiencies. In addition, this technology creates new opportunities for sponsors and others to create new products and offer new services. There is no other technology like it available on the market today.

“The financial services industry has been searching for a way to deliver SMA or MSMA (Multiple Style/Discipline and Multiple Manager Account) programs with greater ease and efficiency,” said Steven Wallman, founder and CEO of FOLIOfn. “We are responding to that demand with FOLIO Allocator. Our breakthrough technology provides advisors and sponsors with the ability to deliver multiple portfolios—more easily and more customizable to individual clients’ needs—in one single account. This is going to revolutionize the SMA business and allow the multi-manager industry to take off.”

While SMA and MSMA programs have been successful in attracting new assets, current technology makes it very difficult for most advisors or sponsors to scale to a larger client base or additional managers. Before FOLIO Allocator was introduced, advisors or sponsors who wanted to create these programs opened multiple accounts for one client and struggled with account-by-account allocation issues. This account workflow and process has extraordinary inefficiencies and high cost.

“Our customers aim to stay on the cutting edge of the financial services industry. They are counting on us to provide the tools and the technology for them to be successful,” said Wallman. “We will continue to deliver a stream of enhancements to our platform, allowing firms to offer just about any service they think is right for them. We look forward to more companies building entire new product lines based on our technology.”

This new technology launched today highlights FOLIOfn’s on-going commitment to enhancing its industry-leading brokerage and technology platform, upon which a broad array of financial applications can be created. It complements the myriad other benefits that the FOLIOfn platform offers. The list includes simple yet powerful paperless workflow processes, tax-lot accounting, portfolio management, portfolio customization tools, complete Web-based interfaces for clients, online reporting tools and various levels of “permissioning” so that advisors, sponsors, managers and customers can all be allocated the level of responsibility and discretion each desires or needs to manage the account efficiently or even create new kinds of programs.

About FOLIOfn

FOLIOfn, Inc. (www.foliofn.com and www.folioadvisor.com) is a financial services technology company that delivers leading-edge investment solutions to financial services firms and investors.

Through its registered broker-dealer subsidiary, FOLIOfn Investments, Inc., the company offers an integrated brokerage platform featuring its unique basket-trading capability and state-of-the-art execution, clearance and settlement services.

  • FOLIO Investing, offered directly to retail customers and through intermediaries, lets individual investors buy customized portfolios of securities in a single transaction.
  • FOLIO Advisor allows advisory firms, money managers and RIAs to easily create and manage custom portfolios for their clients.
  • FOLIO Managed Accounts provides an efficient way for financial institutions, including banks, broker-dealers, mutual funds, and insurance companies, to sponsor a unique managed account program.

FOLIOfn offers it services on both a full-service basis and technology licensed basis. Firms such as Brinker Capital, Quick & Reilly, and more than 500 credit unions have applications using FOLIOfn technology.

More than 500 Credit Unions Offering MEMBERS FOLIO Investing

VIENNA, Virginia and MADISON, Wisconsin, June 6, 2002 — The MEMBERS FOLIO Investing program has hit an important milestone: More than 500 credit unions now offer the groundbreaking service, which allows credit union members to easily and affordably buy individual securities, as well as entire baskets of securities, in one transaction. This far surpasses the April 2002 goal of 400 credit unions offering the service. more

MEMBERS FOLIO Investing is offered through a partnership between FOLIOfn Investments, Inc. and the CUNA Mutual Group, the world’s leading credit union financial services provider. The investment service was brought to CUNA Mutual by MEMBERS Development Company, LLC, an alliance of credit unions and their service organizations.

Since the service was launched in April 2001, the popularity of MEMBERS FOLIO Investing has soared, exceeding initial credit union sign-up goals for the partnership. The popularity of MEMBERS FOLIO Investing reflects the multitude of investor benefits the service offers, says John Henry, CEO of MEMBERS Development Company, and senior vice president of sales and marketing for CUNA Mutual. Credit union members—some of whom are just now beginning to invest for the long-term—really appreciate that they have an easy and low-cost way to build a diversified portfolio of stocks.”

Members can now choose a new pricing plan: For just $14.95—the price of a single trade at some other brokerages—members can open an account and make unlimited commission-free window trades per month. Members can select other pricing plans as well, including a popular one that allows the buying and selling of securities for just $2.95—or make automatic, recurring investments for just $1.95—in our twice-daily windows. Members can also make trades that go directly to the market for $14.95. Regardless of the strategy they choose, members can invest in any dollar amount and there is no minimum investment to get started.

“Other services cannot match the benefits of MEMBERS FOLIO Investing,” says Rich Hagen, vice president at FOLIOfn Investments, Inc. “Some companies tout low commissions but they charge more if you sell securities. And some only let you trade once a week instead of twice daily,” he adds. “We offer by far the most comprehensive service, and we’ll continue to enhance it. We spend a lot of time working with our customers, listening to what they think and how we can improve our service. We are committed to making our service even more beneficial and easy to use.”

MEMBERS FOLIO Investing combines traditional investing, including real time trades and the ability to buy one security at a time, with the opportunity to quickly and easily invest in entire security portfolios. Members who want the diversification benefits of mutual funds combined with the control and tax advantages of direct stock ownership can purchase a diversified portfolio, or “FOLIO,” of up to 50 stocks and other securities quickly and securely online. They can create their own FOLIOs from scratch or choose from more than 100 ready-to-go FOLIOs, which can be customized. Members can also buy and sell individual securities or entire FOLIOs in commission-free window trades, which can be placed at any time and are executed twice daily, when they select the monthly or annual flat-fee pricing plan.

Credit unions that offer the service include Navy Federal Credit Union, the largest credit union in the world, and range from Coast Central Credit Union in California to Service Credit Union, which serves the greater New England area. Many credit unions are initiating aggressive marketing programs to make their members aware of the service.

“We are gratified that so many credit union members are taking advantage of the MEMBERS FOLIO Investing service,” says Steven Wallman, founder and CEO of FOLIOfn Inc. “We think our service is perfect for a wide range of individual investors—from the experienced pro to the beginner. We are in negotiations with other financial institutions that want to offer a similar level of service to their customers. And this experience confirms our belief that demand for such services is escalating.”

MEMBERS FOLIO Investing Features

  • Members can choose transactional pricing. Unlike some brokerage options, with MEMBERS FOLIO Investing both buys and sells are just $2.95. Automatic recurring investments are just $1.95.
  • Members can also choose a flat fee. For just $14.95 a month, members can open an account and create a FOLIO of up to 50 stocks. They can make unlimited commission-free trades.
  • Credit union members can buy entire baskets—or FOLIOs—of stocks with one click of the mouse.
  • Investors can also buy individual ETFs, REITs and closed-end bond funds, as well as baskets of those securities.
  • No matter what pricing plan they choose, window trades are executed twice a day and for any trades that can be matched against other investors, investors receive mid-point pricing on the matched shares.

About FOLIOfn

FOLIOfn, Inc. (www.foliofn.com and www.folioadvisor.com) is a financial services technology company that delivers leading-edge investment solutions to financial services firms and investors.

Through its registered broker-dealer subsidiary, FOLIOfn Investments, Inc., the company offers an integrated brokerage platform featuring its unique basket-trading capability and state-of-the-art execution, clearance and settlement services.

  • FOLIO Investing, offered directly to retail customers and through intermediaries, lets individual investors buy customized portfolios of securities in a single transaction.
  • FOLIO Advisor allows advisory firms, money managers and RIAs to easily create and manage custom portfolios for their clients.
  • FOLIO Managed Accounts provides an efficient way for financial institutions, including banks, broker-dealers, mutual funds, and insurance companies, to sponsor a unique managed account program.

About MEMBERS Development, CUNA Mutual
MEMBERS Development Co., is a credit union/CUNA Mutual jointly owned, credit union controlled, development company dedicated to identifying and providing high-value products and services to credit union members. The CUNA Mutual Group is the leading financial services provider to credit unions and their members worldwide, offering insurance, investment and technological solutions through strategic relationships and modern service channels.

FOLIOfn Offers the Lowest Trades with No Minimums; Introducing $4.00 Buys and Sells

VIENNA, Virginia, April 26, 2002 — FOLIOfn, the pioneer of FOLIO Investing and other financial innovations, launched a new $4 pricing plan to attract a growing target audience, beginning online investors who want to “pay as they go” and trade for a minimal cost. more

“This plan allows customers who aren’t ready to own a diversified portfolio right away, to build one step by step for minimal costs,” says Steve Wallman, CEO and founder of FOLIOfn, “There are no account minimums, and since both buys and sells are $4.00, they cannot get a better bargain at any other brokerage.”

FOLIOfn uses its innovative twice-daily window trading system to keep commissions as low as possible, and pass the savings onto its customers, making it an ideal solution for those looking for a long-term investment strategy based on the benefits of diversification. Also, since FOLIOfn, where possible, matches customer orders internally between the bid and the ask price, customers can in many cases get better execution prices, thus increasing their savings. Customers have the option of trading at any time, by sending orders directly to the market, for $14.95 a trade.

“So many aspects of the FOLIO Investing system are geared toward helping the investor minimize their costs and maximize their returns,” says Rich Hagen, Vice-President of Retail Operations, “Now, we can share our superior service for an excellent value to broader consumer groups, both the more sophisticated investor, who wants to diversify immediately and sees the value of a low, flat fee option and beginning investors, who want to minimize upfront investing costs, and pay as they go.”

FOLIO Investing’s pricing plans include a number of investing features, such as portfolio-picking tools, performance charting, tax management tools, back-testing, automatic rebalancing, and twice-daily window-trading. Adding the $4.00 a buy and sell option, now available at http://www.foliofn.com, allows even more investors to enter the market and experience the cost-savings and efficiency of FOLIO Investing.

About FOLIOfn
FOLIOfn, Inc. (www.foliofn.com and www.folioadvisor.com) is a financial services technology company that delivers leading-edge investment solutions to financial services firms and investors.

Through its registered broker-dealer subsidiary, FOLIOfn Investments, Inc., the company offers an integrated brokerage platform featuring its unique basket-trading capability and state-of-the-art execution, clearance and settlement services.

  • FOLIO Investing, offered directly to retail customers and through intermediaries, lets individual investors buy customized portfolios of securities in a single transaction.
  • FOLIO Advisor allows advisory firms, money managers and RIAs to easily create and manage custom portfolios for their clients.
  • FOLIO Managed Accounts provides an efficient way for financial institutions, including banks, broker-dealers, mutual funds, and insurance companies, to sponsor a unique managed account program.

FOLIOfn Concludes Transaction to Repurchase Securities

VIENNA, Virginia, March 18, 2002 — FOLIOfn, the company that pioneered Folios and other financial innovations, has repurchased a variety of debt and equity securities from a former investor. more

The transaction in part allowed FOLIOfn to retire nearly all of its outstanding debt.

Under terms of the transaction, FOLIOfn paid $1.5 million to PSINet, an Ashburn, Va.-based Internet service provider that previously invested in the company, for various convertible notes, warrants, and preferred shares. PSINet filed for Chapter 11 protection from creditors in June.

“This is good news for our investors, partners, customers, and employees. We are delighted to be able to retire the debt and reacquire certain equity interests in a transaction that is anti-dilutive for the company’s investors,” says Steve Wallman, founder and CEO of FOLIOfn Investments, Inc. “Like most companies, we are constantly looking for ways to strengthen our balance sheet, and this was a superb opportunity.”

Buying back these shares demonstrates our confidence in our future, says Wallman. “We want to invest aggressively in our own company because we believe we are on track for success in the future. We think this is an excellent investment opportunity for the extended FOLIOfn family, and gives us the flexibility to raise additional capital in a variety of ways if we want to.”

About FOLIOfn
FOLIOfn, Inc. (www.FOLIOfn.com and www.folioadvisor.com) is a financial services technology company that delivers leading-edge investment solutions to financial services firms. Through its registered broker-dealer subsidiary, FOLIOfn Investments, Inc., the company offers an integrated brokerage platform featuring its unique basket-trading capability and state-of-the-art execution, clearance and settlement services. Its FOLIO Investing service is a direct to consumer offering that allows investors to buy customized portfolios of securities in a single transaction. FOLIO Advisor allows advisory firms, money managers and RIAs to easily create and manage custom portfolios for their clients. FOLIO Managed Accounts provides an efficient way for financial institutions, including banks, broker-dealers, mutual funds, and insurance companies, to sponsor a unique managed account program. FOLIOfn’s financial backers include Advent Software, Inc. (NASDAQ: ADVS); American Century Ventures; The Mayfield Fund; meVC Draper Fisher Jurvetson Fund I (NYSE: MVC); PSINet; and Seichou Technology Fund, a Nomura investment asset. FOLIOfn is a registered broker-dealer, regulated by the Securities and Exchange Commission and registered in all 50 states, and also a member of the Financial Industry Regulatory Authority and SIPC. In addition, FOLIOfn Advisor, Inc., a subsidiary of FOLIOfn, Inc., is a Registered Investment Advisor.

Quick & Reilly Partners with FOLIOfn to Launch Q FOLIO Investing

NEW YORK, New York, January 9, 2002 — Quick & Reilly and FOLIOfn today announced that they have as partners launched Q Folio Investing™, a specially tailored version of FOLIO Investing, to Quick & Reilly’s customers. Quick & Reilly is one of the nation’s leading brokerage firms and a FleetBoston Financial (NYSE: FBF) company. FOLIOfn is the financial services innovation company that, among other things, pioneered a new way to invest based on customized securities portfolios called “FOLIOs.” more

Quick & Reilly customers who use Q Folio Investing™ can now buy, customize, and sell FOLIOs conveniently and securely online at www.quickandreilly.com. Customers can also invest in dollar or share amounts for greater ease and diversification, and they can take advantage of the tax benefits that come with stock ownership, including the ability to potentially lower their tax liabilities. These and other FOLIO Investing benefits are being offered alongside the full suite of benefits Quick & Reilly offers its investors, including access to a Personal Financial Consultant, advice on the right investment choices to meet investors’ goals, access to a nationwide network of investor centers, a priority support desk and the ability to invest in a full range of investment products including bonds, mutual funds, and options. Q Folio Investing™ can be integrated into Quick & Reilly’s Asset Management Account, giving investors access to ATMs, Visa debit card, and other quality services of FleetBoston Financial. Investors also have access to free real-time quotes, alerts, streaming quotes and S&P stock reports as an added benefit of Q Folio membership.

“This latest product innovation is evidence of Quick & Reilly’s commitment to offer the widest range of investment options, supported by the advice and guidance of a Personal Financial Consultant,” said Donald E. Froude, President and Chief Executive Officer of Quick & Reilly. “Q Folio Investing™ provides a number of tailored advantages, making it easier than ever for our customers to invest wisely and in ways that suit their individual financial objectives.”

“Our customers are getting a unique version of FOLIO Investing that is personalized and integrated with their existing Quick & Reilly accounts,” said Mike Quinn, Senior Vice President in charge of Internet Strategy and Management at Quick & Reilly. “The FOLIOfn partnership allowed us to get to market quickly with a proven brokerage platform that provides a service unsurpassed in the industry, and enables us to focus on our core competencies of providing value added service to our clients.”

“We’re thrilled to be working as partners with one of the nation’s largest and most well-respected brokerage firms,” said Steven Wallman, Founder and CEO of FOLIOfn. “For FOLIOfn, this partnership is an opportunity to have our unique and innovative service offered to hundreds of thousands of potential investors in combination with the strong brand and resources of a firm like Quick & Reilly. We are delighted that Quick & Reilly’s customers can benefit from FOLIO Investing’s ability to offer both diversification and control alongside their other Quick & Reilly accounts and services.”

In addition to other specially tailored services, Quick & Reilly customers are able to choose from a special selection of FOLIOs, based on a range of investment strategies. Customers can buy those FOLIOs “as is,” modify them before or after purchase, or build their own FOLIOs from scratch. Each FOLIO can hold up to 50 securities, including stocks, closed-end bond funds, Exchange-Traded Funds (ETFs), and Real Estate Investment Trusts (REITs).

Entire FOLIOs, or individual securities, can be bought or sold commission-free in window trades, which are trades that can be placed at any time and are executed twice per day, or in real time for an extra fee. Window trades make it easy and affordable for customers to add to diversified portfolios on a regular basis.

Quick & Reilly customers can benefit from other unique FOLIO Investing features as well. For example, when a customer decides to sell a stock, FOLIOfn’s tax management system automatically selects the shares that best meet that customer’s chosen tax planning objective. They may also use the system to manage tax paperwork. In addition, investors can take advantage of FOLIOfn’s stock selector and stock screening tools, including a “wizard” that helps investors find FOLIOs that meet their investing goals and a tool that can automatically exclude stocks based on social issues or reflect other investor preferences.

About Quick & Reilly
Quick & Reilly is a leading multi-channel brokerage firm, offering advice and guidance through more than 800 Personal Financial Consultants in its Investment Centers and investment products through 300 licensed investment specialists in Fleet Bank branches. Quick & Reilly is the broker of choice for over 1.8 million investors nationwide. The firm has grown to a leading position with a nationwide network of Investor Centers and one of the leading Internet securities trading systems, www.quickandreilly.com. Quick & Reilly, Inc. is part of FleetBoston Financial, a $200 billion diversified financial services company with an outstanding record of growth and profitability. FleetBoston Financial is headquartered in Boston and listed on the New York Stock Exchange (NYSE: FBF) and the Boston Stock Exchange (BSE: FBF).

About FOLIOfn
FOLIOfn, Inc. (www.foliofn.com and www.folioadvisor.com) is a financial services technology company that delivers leading-edge investment solutions to financial services firms. Through its registered broker-dealer subsidiary, FOLIOfn Investments, Inc., the company offers an integrated brokerage platform featuring its unique basket-trading capability and state-of-the-art execution, clearance and settlement services. FOLIO Investing, offered directly to retail customers and through intermediaries, lets individual investors buy customized portfolios of securities in a single transaction. FOLIO Advisor allows advisory firms, money managers and RIAs to easily create and manage custom portfolios for their clients. FOLIO Managed Accounts provides an efficient way for financial institutions, including banks, broker-dealers, mutual funds, and insurance companies, to sponsor a unique managed account program. FOLIOfn’s financial backers include Advent Software, Inc. (NASDAQ: ADVS); American Century Ventures; The Mayfield Fund; meVC Draper Fisher Jurvetson Fund I (NYSE: MVC); PSINet; and Seichou Technology. FOLIOfn is a registered broker-dealer, regulated by the Securities and Exchange Commission and registered in all 50 states, and also a member of the Financial Industry Regulatory Authority and SIPC. In addition, FOLIOfn Advisor, Inc., a subsidiary of FOLIOfn, Inc., is a Registered Investment Advisor.

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2001

FOLIOfn Introduces Unique New Pricing Plan

VIENNA, Virginia, October 29, 2001 — FOLIOfn, the financial services company that pioneered stock basket investing and other innovations, has introduced a unique new pricing plan for its FOLIO Investing service in which investors pay fees only for the months following those in which the stock market rises. more

Investors who choose the new plan pay a flat fee of $39.95 at the beginning of each month—but only if the Standard & Poor’s 500 has risen over the course of the prior month. If the S&P 500 declines during a given calendar month, FOLIOfn will waive its fee for the following month.

“We want to encourage Americans to invest in the stock market, which history shows offers the best returns over time,” said FOLIOfn Founder and CEO Steven Wallman. “We think our new membership plan will ease any short-term concerns while providing a sensible and affordable way to invest for the long term.”

Investors who choose the new plan get all the benefits of FOLIO Investing, including the ability to select from more than 100 Ready-to-Go FOLIOs—baskets of as many as 50 stocks, closed-end bonds funds, ETFs, and REITs—based on risk level, sector, and other popular investing criteria. Investors can buy or sell entire FOLIOs or individual securities commission-free in window trades, which are trades that can be placed at any time and are executed at two designated times each day. FOLIOfn customers are entitled to 500 commission-free window trades per month (with additional window trades priced at only $1.00 per security) and there is no minimum investing or trading amount, making it affordable for investors to add to diversified portfolios on a regular basis.

“Rather than attempting to pick the ‘right’ one or two stocks, investors at FOLIOfn can lower their risk by purchasing entire portfolios of securities,” said Wallman. “And now risk-averse investors can rest assured that if the S&P 500 declines, they won’t have to pay an investing fee the next month—all without taking the chance of sitting on the sidelines.”

FOLIOfn’s fee lets investors purchase up to three FOLIOs, which can be held in up to three separate accounts. Investors can get help in selecting Ready-to-Go FOLIOs by using the FOLIO Wizard, a questionnaire that generates an investor’s profile and selection of FOLIOs that meet that profile. They can change any FOLIO before or after purchase, or build their own FOLIOs from scratch. They can also take advantage of the company’s stock selector and its stock-screening tool, which can automatically exclude individual stocks or entire industries.

In addition, FOLIOfn members can potentially improve their returns by using the company’s automated tax planning system to lower the taxes on their investments. When a customer decides to sell a stock, the system identifies the shares that meet the customer’s chosen tax planning objective. Investors may choose from eight tax objectives and also use the system to manage tax paperwork.

FOLIOfn also offers traditional brokerage services, such as real-time trades for $14.95 per security. This fee is not waived when the market declines.

The company’s standard membership plan for individual investors—$29.95 per month or $295 per year—remains available. If existing customers wish, they may switch to the new pricing plan, which will be available through the end of 2002.

About FOLIOfn
FOLIOfn, Inc. (www.foliofn.com and www.folioadvisor.com) is a financial services technology company that delivers leading-edge investment solutions to financial services firms. Through its registered broker-dealer subsidiary, FOLIOfn Investments, Inc., the company offers an integrated brokerage platform featuring its unique basket-trading capability and state-of-the-art execution, clearance and settlement services. Its FOLIO Investing service is a direct to consumer offering that allows investors to buy customized portfolios of securities in a single transaction. FOLIO Advisorsm allows advisory firms, money managers and RIAs to easily create and manage custom portfolios for their clients. FOLIO Managed Accounts provides an efficient way for financial institutions, including banks, broker-dealers, mutual funds, and insurance companies, to sponsor a unique managed account program. FOLIOfn’s financial backers include Advent Software, Inc. (NASDAQ: ADVS); American Century Ventures; The Mayfield Fund; meVC Draper Fisher Jurvetson Fund I (NYSE: MVC); PSINet; and Seichou Technology Fund, a Nomura investment asset. FOLIOfn is a registered broker-dealer, regulated by the Securities and Exchange Commission and registered in all 50 states, and also a member of the Financial Industry Regulatory Authority and SIPC. In addition, FOLIOfn Advisor, Inc., a subsidiary of FOLIOfn, Inc., is a Registered Investment Advisor.

FOLIOfn, ICLUBcentral Offer Investment Clubs a New Way to Invest

VIENNA, Virginia and CAMBRIDGE, Massachusetts, October 4, 2001 — FOLIOfn, the creator of a new way to invest based on “FOLIOs,” or baskets of stocks, and ICLUBcentral, the market leader in investment club products, are joining forces to give investment clubs a new, easy, and affordable way to build, manage, and monitor securities portfolios online. more

The FOLIOfn and ICLUBcentral partnership will give the more than 45,000 investment clubs that use ICLUBcentral’s online and desktop applications access to a comprehensive package of brokerage services designed to meet the specialized needs of investment clubs. For example, individual club members will be able to log in and monitor the performance of their club account at any time at both www.iclub.com. Clubs can also buy and sell securities in the dollar amount of their choice, rather than by the share, through FOLIOfn’s specialized brokerage services.

Through FOLIOfn, clubs will be able to create and manage their own FOLIOs of stocks and other securities, make up to 500 free trades per month executed in twice daily trading windows (with additional window trades for just $1 each), easily harvest tax losses with FOLIOfn’s proprietary tax lot accounting system, and enjoy individual access to club account information. Club members can use ICLUBcentral’s sophisticated investment club software to discuss and vote on securities transactions and organizational issues, perform investment club accounting, and create and submit IRS tax forms.

“Investment club members appreciate the importance of diversification and direct stock ownership,” said FOLIOfn Founder and CEO Steven M.H. Wallman. “With this partnership, ICLUBcentral members can act on more of their investing ideas because they can use our innovative brokerage platform to buy and sell individual stocks and entire baskets of securities commission-free as part of ICLUBcentral’s comprehensive club offering.”

“This partnership will allow us to offer an innovative investment method to our investment club clients,” said Robert Brooker, ICLUBcentral CEO. ”Investment club members will benefit from FOLIOfn’s commission-free trading. This partnership is another way in which we are helping investment clubs by expanding the options available to investment clubs while simplifying investment club administration.”

Clubs will be able to own three FOLIOs of up to 50 securities each for the same low, flat fee and no minimum investment requirement that applies to individual investors at FOLIOfn. Clubs can create their own FOLIOs from scratch or choose from over 100 Ready-to-Go FOLIOs, which can be customized. In addition to the window trades, clubs will be able to buy and sell individual securities or entire FOLIOs through direct trades for a small additional fee, an option available for all FOLIOfn investors. When a club sells a security that has decreased in value, FOLIOfn's unique tax lot accounting system will allow the club to select the shares that keep the club’s tax bills the lowest, or the club can choose from seven other tax-planning objectives.

ICLUBcentral enables successful online group investing by making it simple for individual investors to form investment clubs online with minimal effort from club members and no compromise of club security. ICLUBcentral’s software and online tools offer an intuitive user interface that facilitates communication and collaboration across geographic boundaries. ICLUBcentral also operates and maintains the official online investment club administration and accounting platform for the National Association of Investors Corporation (NAIC). NAIC is a 600,000 member non-profit organization that provides investment education for investment clubs and individual investors. ICLUBcentral software and online tools are currently available free of charge at www.iclub.com and www.naic-club.com.

About FOLIOfn
FOLIOfn, Inc. (www.foliofn.com) together with its wholly owned self-clearing brokerage subsidiary FOLIOfn Investments, Inc. is harnessing the power of the Internet to create better, smarter and easier ways to invest. In addition to offering traditional brokerage services, FOLIOfn’s first product, FOLIO Investing, lets investors buy and trade entire stock portfolios with just a few clicks of the mouse. FOLIOfn Institutional, a division of FOLIOfn, offers products powered by the FOLIOfn technology platform to the institutional market. FOLIO Advisor (www.folioadvisor.com), the first product from FOLIOfn Institutional, is a technology platform advisors can use to manage client accounts, including an easy and efficient way to capitalize on the growing demand for separate accounts using customized stock portfolios. FOLIOfn’s financial backers include Advent Software, Inc. (NASDAQ: ADVS); American Century Ventures; Mayfield; meVC Draper Fisher Jurvetson Fund I (NYSE: MVC); PSINet; and Seichou Technology Fund, a Nomura investment asset. FOLIO Investing and FOLIO Advisor are offered through FOLIOfn Investments, Inc., a member of FINRA and SIPC. FOLIOfn and its subsidiaries are based in Vienna, Va. Unlike FOLIOs, mutual funds are separate securities registered with the SEC that are separately sold and managed apart from their underlying securities. FOLIO Investing, like all investing, involves risk including the loss of principal.

About ICLUBcentral
ICLUBcentral is a leading provider of group financial products to financial institutions and online communities. ICLUBcentral’s online sites for investment clubs enable personal investors to leverage the Internet to communicate and collaborate with others on investing decisions, making group investing easier and more social. Over 45,000 clubs currently use ICLUBcentral products to manage their investment dollars, including members of the National Association of Investors Corporation (NAIC), a 600,000-member non-profit organization that provides investment education for investment clubs and individual investors. ICLUBcentral built, operates, and maintains the official NAIC online investment club communication and tax accounting platform, which can be found at www.naic-club.com. Based in Cambridge, MA, ICLUBcentral has been producing investment club software since 1989.

Brinker Capital Selects FOLIOfn’s Institutional Platform to Meet Growing Demand

KING OF PRUSSIA, Pennsylvania and VIENNA, Virginia—August 8,2001 — Brinker Capital (www.brinkercapital.com), the nation’s oldest independent provider of managed account services for investment advisors, has chosen FOLIOfn (www.folioadvisor.com) as a back-office trading, custody, and accounting platform for Brinker Capital’s managed account programs. Brinker Capital, with over $3 billion in assets under advisement, provides financial advisors with access to world-class investment managers and works with advisors to develop customized investment strategies for their clients. FOLIOfn Institutional, a division of FOLIOfn, offers a wide range of services for financial professionals and institutions, including an efficient and flexible way to offer managed accounts using the company’s totally integrated operating platform. more

Brinker Capital’s selection of FOLIOfn followed an exhaustive evaluation of alternative ways to provide the best and most efficient managed account platform. ”The managed account business is continuing to grow at a rapid pace,” said Charles Widger, President and CEO of Brinker Capital. ”We have spent the last few years significantly increasing front-end technology to support advisors and their clients. In addition to adding sophisticated online reporting capabilities, we have recently introduced the Brinker Capital ProGen System as a turn-key online proposal generation system for investment advisors. Now, with FOLIOfn, our front-end systems will be fully integrated with its back office operations. We analyzed numerous systems and we concluded that FOLIOfn has the best technology. We are excited that FOLIOfn shares a similar vision for the use of technology to meet the changing needs of investment advisors.”

“We’re proud to work with a company that has such a well-deserved national reputation for excellence,” said Steven Wallman, founder and CEO of FOLIOfn. ”More and more investors want the tax efficiency, the control and the customization they get from being invested in a portfolio of securities that is managed with their needs in mind. In order to meet this demand, advisors are turning to program sponsors like Brinker Capital because of their commitment to helping advisors provide customized investment strategies to meet the unique needs of each client.”

“Our platform provides the efficient and flexible back-office support Brinker Capital needs to expand its managed account programs,” explained Jim Vitalie, President of FOLIOfn Institutional. ”Through this relationship with FOLIOfn, Brinker Capital can now provide managed accounts service to a far larger number of advisors and their clients than ever before.”

Managed accounts, also referred as separate accounts or wrap accounts, are individual accounts that are offered through investment advisors and are managed by professional money managers. With managed accounts, investors directly own individual securities in their portfolios and therefore can benefit from greater tax efficiency and control over their holdings.

About Brinker Capital
Founded in 1987 by Charles Widger, Brinker Capital is an independent investment consulting firm and provider of managed account services. With over $3 billion in assets under advisement, Brinker Capital works with financial advisors to meet the investment needs of a broad range of individual and institutional investors. Brinker Capital was founded on the principle that no two investors are alike, and on the strong belief that all investors should have access to customized investment services that were once only available to the largest institutions. Brinker Capital offers investment manager due diligence, asset allocation, and client communications services, all designed to help financial advisors meet the investment needs of their clients.

About FOLIOfn
FOLIOfn, Inc. (www.foliofn.com) together with its wholly owned self-clearing brokerage subsidiary FOLIOfn Investments, Inc. is harnessing the power of the Internet to create better, smarter and easier ways to invest. In addition to offering traditional brokerage services, FOLIOfn’s first product, FOLIO Investing, lets investors buy and trade entire stock portfolios with just a few clicks of the mouse. FOLIOfn Institutional, a division of FOLIOfn, offers products powered by the FOLIOfn technology platform to the institutional market. FOLIO Advisor (www.folioadvisor.com), the first product from FOLIOfn Institutional, is a technology platform advisors can use to manage client accounts, including an easy and efficient way to capitalize on the growing demand for separate accounts using customized stock portfolios.

FOLIOfn’s financial backers include Advent Software, Inc. (NASDAQ: ADVS); American Century Ventures; Mayfield; meVC Draper Fisher Jurvetson Fund I (NYSE: MVC); PSINet; and Seichou Technology Fund, a Nomura investment asset. FOLIO Investing and FOLIO Advisor are offered through FOLIOfn Investments, Inc., a member of FINRA and SIPC. FOLIOfn and its subsidiaries are based in Vienna, Va. Unlike FOLIOs, mutual funds are separate securities registered with the SEC that are separately sold and managed apart from their underlying securities. FOLIO Investing, like all investing, involves risk including the loss of principal.

Industry Expert Alan Sislen Advises FOLIOfn on Managed Account Business and Product Development

VIENNA, Virginia, July 9, 2001 — FOLIOfn, Inc. (www.foliofn.com and www.folioadvisor.com) announced today that Alan M. Sislen, a nationally recognized expert on the managed account business, has agreed to assist the company in expanding its managed account business, including the development of new products. more

Mr. Sislen, the former First Vice President and Senior Director of Merrill Lynch’s Investment Consulting Group, has formed Managed Account Perspectives, LLC, providing executive level management consulting to current and prospective participants in the growing managed account industry, including mutual fund companies, money managers, and broker-dealers. According to Cerulli Associates, assets in managed accounts are growing rapidly, increasing 23 percent, from $517 billion in the fourth quarter of 1999 to $636 billion in the fourth quarter of 2000.

“Alan knows a lot about the industry, the people, and the products, and we expect to learn a lot from him,” said FOLIOfn Founder and CEO Steven Wallman. ”While the idea of managing separate accounts for wealthy investors is not new, opening these accounts to mainstream investors has just started to take off. Alan’s 30-plus years in the business will be a tremendous asset as we continue to refine our managed account system.”

“I am very excited about the opportunity to work with FOLIOfn, one of the true financial services innovators,” said Mr. Sislen. ”FOLIOfn continues to redefine investment products and services for financial institutions, professional investment advisors, and individual investors.”

“I think it speaks well of what we’ve already accomplished that someone like Alan would agree to work with us,” added FOLIOfn Institutional President James S. Vitalie. ”We look forward to adding Alan’s expertise as we compete in this fast-growing and rapidly evolving market.”

Before founding Managed Account Perspectives, Mr. Sislen spent 31 years with Merrill Lynch. In his most recent role, he was the senior executive directly responsible for the fee-based advisory services ML Consults®, Mutual Fund Advisor®, MFA-Selects, Strategic Portfolio Advisor, and Personal Investment Advisor, as well as Merrill Lynch’s institutional level Consulting Services. Mr. Sislen served on the Professional Advisory Council of the Investment Management Consultants Association (IMCA) and on the Board of Governors of the Money Management Institute (MMI). In 2000, MMI presented him with its Managed Account Pioneer Award. Mr. Sislen is also a frequent speaker at industry events and is often quoted by the media on topics related to managed accounts.

FOLIOfn’s first product for the institutional market, FOLIO Advisor, is an easy, efficient, and low-cost Web-based platform investment advisors, money managers, and financial institutions can use to provide a range of advisory services, and it also offers a turnkey managed accounts brokerage solution. For example, advisors and money managers can easily create and subscribe multiple clients with individual preferences to model portfolios and have clients' trades executed directly, or through a broker, using the FOLIOfn platform. Advisors, money managers, and firms can also create and manage models for advisors to use.

Independent advisors and advisory firms using FOLIO Advisor today benefit from a number of proprietary features including a low-cost trading platform and automated tax lot tracking and tax management that lets advisors easily manage clients' tax liabilities, which may produce significant tax savings. FOLIO Advisor also provides for online account opening, delivers all statements and performance reports online (with paper available, if needed), and takes care of client billing.

FOLIOfn is working now, with Mr. Sislen, to finalize a new offering that will let advisors partner with third-party money managers. The company is also in discussions with broker-dealers, banks, mutual fund companies, and other institutions interested in using FOLIOfn’s technology platform to offer innovative services to retain and attract customers.

About FOLIOfn
FOLIOfn, Inc. (www.foliofn.com) together with its wholly owned self-clearing brokerage subsidiary FOLIOfn Investments, Inc. is harnessing the power of the Internet to create better, smarter and easier ways to invest. In addition to offering traditional brokerage services, FOLIOfn’s first product, FOLIO Investing, lets investors buy and trade entire stock portfolios with just a few clicks of the mouse. FOLIOfn Institutional, a division of FOLIOfn, offers products powered by the FOLIOfn technology platform to the institutional market. FOLIO Advisor (www.folioadvisor.com), the first product from FOLIOfn Institutional, is a technology platform advisors can use to manage client accounts, including an easy and efficient way to capitalize on the growing demand for separate accounts using customized stock portfolios.

FOLIOfn’s financial backers include Advent Software, Inc. (NASDAQ: ADVS); American Century Ventures; Mayfield; meVC Draper Fisher Jurvetson Fund I (NYSE: MVC); PSINet; and Seichou Technology Fund, a Nomura investment asset. FOLIO Investing and FOLIO Advisor are offered through FOLIOfn Investments, Inc., a member of FINRA and SIPC. FOLIOfn and its subsidiaries are based in Vienna, Va. Unlike FOLIOs, mutual funds are separate securities registered with the SEC that are separately sold and managed apart from their underlying securities. FOLIO Investing, like all investing, involves risk including the loss of principal.

FOLIOfn Launches Enhanced Technology Platform for Investment Advisors and Money Management Professionals

VIENNA, Virginia, June 12, 2001 — FOLIOfn, Inc. (www.foliofn.com and www.folioadvisor.com) today announced the launch of an exciting new portfolio investing and management tool. The new product, which has been added to the FOLIO Advisor platform, allows advisors and money managers easily and in one step to create and subscribe multiple clients with individual preferences to stock portfolio models. Advisory and money management firms can also create, publish, and manage models for their advisors to use. more

“Gone are the days of tedious, time intensive account-by-account changes,” said James S. Vitalie, President of FOLIOfn Institutional. ”For the first time, advisory firms and individual advisors who track stocks and portfolios can increase their efficiency—and increase their business—by subscribing clients to whole model FOLIOs instead of manually recreating the same portfolios in different client accounts. The FOLIO Advisor platform is designed to help advisors maximize their most valuable offering—their advice—by automating routine tasks and paperwork and by providing real time data access.”

Investment advisors use FOLIO Advisor to offer custom stock portfolios under a variety of pricing options, including a low asset-based fee with no minimums, commissions, or transaction charges. Using this proprietary platform, advisors can buy for their clients whole portfolios (FOLIOs) of individual stocks that can be customized quickly and easily, and can be private-labeled for firms and advisors.

“More and more investors want the benefits of separate accounts,” Vitalie added. ”The FOLIO Advisor platform is a separate account solution for virtually any financial institution. We’ve heard from banks, insurance companies and brokerages as well as money managers and advisory firms that want to use our platform to capitalize on this growing demand.”

FOLIO Advisor offers advisors and money managers the opportunity to create their own FOLIOs from scratch, or they can start with one of more than 100 “Ready-to-Go” FOLIOs based on sectors, indexes, risk level, Wall Street Analyst recommendations, and other criteria. Advisors can customize any FOLIO to individual clients' specific needs by adding or subtracting stocks, or using FOLIOfn’s automated stock exclusion and search tools. Advisors can easily update or rebalance FOLIOs with just a few mouse clicks as often as they like with no additional cost.

FOLIO Advisor’s automated tax lot tracking and tax management system lets advisors easily manage clients' tax liabilities, which may produce significant tax savings. FOLIO Advisor provides for online account opening and also delivers all statements and performance reports online (with paper available, if needed) and takes care of client billing. In addition, advisors can allow their clients to review reports and analysis online, as well as download tax information into popular tax preparation programs. Through relationships with vendors like Advent Software and others, investment advisors are also able to download their FOLIO Advisor data into leading portfolio management software seamlessly.

This summer, FOLIOfn will allow advisors to partner with third party money managers on the FOLIO Advisor platform. ”We have investment advisors who look forward to the addition of those managers while others will continue to manage their client portfolios personally,” Vitalie explained.

How Does It Work? One FOLIO Advisor Example
Barbara Smith’s advisory firm, Smith Investments, tracks a group of large cap stocks as a basis for investing client assets. Barbara creates a few models with those stocks and designated weightings and different risk levels. She chooses to name one model the Smith Large Cap Low Risk Portfolio.

Later, Steve Jones, an advisor at Smith Investments, decides to subscribe several of his clients to the Smith Large Cap Low Risk Portfolio model.

Each quarter, Barbara reviews and makes changes to her models. Steve has directed that his client accounts be updated immediately to replicate changes made to the model. Therefore, when Barbara changes her model, FOLIO Advisor generates the necessary trades for each of Steve’s client accounts subscribed to that model.

Steve has also established a profile for each of his clients, reflecting their tax objectives and investing preferences. For example, one of his clients does not want to own tobacco stocks. When Barbara adds a tobacco stock to her model, the FOLIO Advisor system knows to exclude that stock for Steve’s client. That same client wants to minimize his short-term capital gains. When Barbara sells some holdings to rebalance the model, the FOLIO Advisor system knows which shares to select to meet this tax objective.

About FOLIOfn
FOLIOfn, Inc. (www.foliofn.com) together with its wholly owned self-clearing brokerage subsidiary FOLIOfn Investments, Inc. is harnessing the power of the Internet to create better, smarter and easier ways to invest. In addition to offering traditional brokerage services, FOLIOfn’s first product, FOLIO Investing, lets investors buy and trade entire stock portfolios with just a few clicks of the mouse. FOLIOfn Institutional, a division of FOLIOfn, offers products powered by the FOLIOfn technology platform to the institutional market. FOLIO Advisor (www.folioadvisor.com), the first product from FOLIOfn Institutional, is a technology platform advisors can use to manage client accounts, including an easy and efficient way to capitalize on the growing demand for separate accounts using customized stock portfolios.

FOLIOfn’s financial backers include Advent Software, Inc. (NASDAQ: ADVS); American Century Ventures; Mayfield; meVC Draper Fisher Jurvetson Fund I (NYSE: MVC); PSINet; and Seichou Technology Fund, a Nomura investment asset. FOLIO Investing and FOLIO Advisor are offered through FOLIOfn Investments, Inc., a member of FINRA and SIPC. FOLIOfn and its subsidiaries are based in Vienna, Va. Unlike FOLIOs, mutual funds are separate securities registered with the SEC that are separately sold and managed apart from their underlying securities. FOLIO Investing, like all investing, involves risk including the loss of principal.

FOLIOfn Announces FOLIO Wizard Investor Assistance Tool; New Folio Categories Include REITs, Wall Street Analyst Picks, and Bonds

VIENNA, Virginia, March 6, 2001 — FOLIOfn, the innovative financial services company and originator of FOLIO Investing, which allows investors to create and trade personalized portfolios of individual stocks at the click of a mouse, as well as trade commission-free in twice-daily windows, has added a wide range of features, including a tool to help investors select FOLIOs—or baskets of stocks—to meet their investing objectives. more

The FOLIO Wizard walks investors through questions about their investing goals, risk tolerance, and investing experience to produce an investor profile and selection of Folios meeting that profile. Investors may then choose from the list of Folios generated by the Wizard or any of FOLIOfn’s more than 100 Ready-to-Go Folios. They may also create their own Folios stock-by-stock, using FOLIOfn’s stock selector tools. Whatever their choice, investors can modify Folios, before or after purchase, commission-free.

“Investors want different levels of help and assistance, so FOLIOfn’s services are designed to meet a range of needs,” said FOLIOfn founder and CEO Steven M.H. Wallman. ”Investors can assemble their own Folios, stock-by-stock, or purchase Ready-to-Go Folios that are based on investment objectives, preferences, and strategies. Now, investors can also use the easy FOLIO Wizard to get quick and convenient assistance in choosing their Folios. No matter how investors build their Folios, they can customize them whenever and as often as they wish, commission-free.”

More Ready-to-Go Folios: REIT, Wall Street Analyst Folios
Folios comprised of Real Estate Investment Trusts, or REITs, are among the latest additions to FOLIOfn’s roster of more than 100 Ready-to-Go Folios. REIT Folios make it affordable for individual investors to own stock in a mix of real estate investment trusts, publicly traded companies whose principal area of activity is real estate. These companies invest in and operate a broad range of real estate properties, including offices, apartments, and retail space.

“REITs are a wonderful creation because they have made it possible for individuals to invest in large-scale commercial properties,” said Wallman. ”Our REIT Folios take that accessibility a step further by making it affordable for individual investors to diversify across the entire REIT sector, rather than trying to pick the one or two REITs they think will perform the best. These Folios are a reflection of FOLIOfn’s ongoing commitment to making investing better and easier.”

The three new REIT Folios are based on specific sectors of the real estate market—Industrial/Office, Retail, and Residential—as classified by the National Association of Real Estate Investment Trusts. They are: the Industrial/Office REIT Folio, comprised of 19 of the largest industrial, office, and mixed-use REITs; the Retail REIT Folio, comprised of 12 of the largest shopping center, regional mall, and free-standing REITs; and the Residential REIT Folio, comprised of 13 of the largest REITs that primarily invest in residential properties such as apartments and manufactured homes.

Investors also have a new option in Ready-to-Go Folios based on the stock recommendations of Wall Street analysts. FOLIOfn’s three Wall Street Analyst Folios—Analyst Choice, Analyst Growth, and Analyst Upgrades—provide investors an opportunity to invest in stocks of the S&P 500 that Wall Street analysts recommend most highly to their clients, predict will have the highest earnings growth over one year, or whose analyst recommendations improved the most over one quarter, respectively.

Ready-to-Go Bond FOLIOs Increase Investor Diversification Opportunities
FOLIOfn has added a whole new asset class to its Ready-to-Go Folio offerings with the introduction of Bond Folios. These Folios, comprised of a number of closed-end bond funds that can be bought and sold in FOLIOfn’s window trades, provide investors with additional opportunities for diversification.

The five Bond Folios—Corporate, Global, Government, High-yield, and Municipal—carry varying risk levels and meet various investor needs. For example, investors willing to take on greater risk may be interested in the Folio comprised of high-yield bond funds, which may provide higher-than-average interest payments but invest mainly in corporate bonds that are considered speculative investments. More conservative investors, on the other hand, might look to the Municipal Bond Folio—FOLIOfn’s newest Bond Folio—comprised of bond funds that invest mainly in bonds issued by cities, counties, and states where bond rating agencies generally consider the issuers’ ability to meet the bonds’ obligations “adequate” or better. This Folio might also appeal to investors in high tax brackets since a number of municipal bonds offer interest income that may be exempt from federal and state taxes.

About FOLIOfn
FOLIOfn, Inc.- (www.foliofn.com)—together with its wholly owned self-clearing brokerage subsidiary FOLIOfn Investments, Inc. is harnessing the power of the Internet to enable individual and institutional investors to invest and trade better, smarter, and easier.

FOLIOfn’s first product, FOLIO InvestingSM, lets investors buy and trade individual stocks or entire portfolios of up to 50 stocks, called “Folios,” with just a few clicks of the mouse. FOLIO Advisor (www.folioadvisor.com), the investment advisor version of FOLIO Investing, lets investment advisors buy and manage Folios for their clients. Investors and advisors can purchase and modify “Ready-to-Go” Folios or create their own Folios and can buy and trade stocks as often as they wish, executed in twice-daily trading windows, at no additional charge or through trades that go directly to the market for a low additional fee. They may also use FOLIOfn’s unique, automated tax planning system to help meet individual or client tax objectives and manage tax paperwork. In short, FOLIOfn products combine the diversification benefits and simplicity of buying mutual funds with the control and tax savings of direct stock ownership.

FOLIOfn’s financial backers include American Century Ventures, Mayfield, meVC Draper Fisher Jurvetson Fund I (NYSE: MVC), and PSINet (Nasdaq: PSIX). FOLIO Investing is offered through FOLIOfn Investments, Inc., a member of FINRA and SIPC. FOLIOfn Institutional, a division of FOLIOfn Investments, Inc., is offering FOLIO Advisor and FOLIO Investing to financial advisors and the institutional market. FOLIOfn and its subsidiaries are based in Vienna, Va. Unlike Folios, mutual funds are separate securities registered with the SEC that are separately sold and managed apart from their underlying securities. FOLIO Investing, like all investing, involves risk including the loss of principal.

Advent Software, Nomure Make Strategic Investments in FOLIOfn

VIENNA, Virginia, February 28, 2001 — FOLIOfn, the online brokerage that invented FOLIO Investing., today announced that it has received strategic investments from Advent Software, Inc. (NASDAQ: ADVS), the leading provider of enterprise investment management software, and Seichou Technology Fund, a Nomura investment asset. more

“These are exciting relationships for our company as we continue to enhance our first product, FOLIO Investing, and introduce new investment advisor offerings and other services,” said Steven M.H. Wallman, founder and CEO of FOLIOfn.

“We are thrilled about our alliance with Advent, the leading software provider to investment advisors. Advent’s wide reach and solid reputation in the financial services industry help make us a powerful combination.”

“We are equally enthusiastic that an investment asset owned by Nomura, one of the world’s premier global investment banks, has participated in this round. We’ve been talking with a number of prospective international partners, and we are excited about our expansion opportunities,” Wallman added.

“FOLIOfn has built a terrific new product for the industry, and we’re very excited to be able to offer it to our clients. Our extended relationship with them is another example of how committed we are to investing in the future for our clients,” said Peter Caswell, President and CEO of Advent.

Last month, Advent Software and FOLIOfn announced an alliance that will enable both companies to better serve investment advisors. As part of that relationship, FOLIOfn will be the exclusive provider of FOLIOs (custom baskets of stocks) through the Advent Office™ portfolio accounting and management system, licensed by more than 6,000 investment management firms. Investment advisors who use FOLIO Advisor, the version of FOLIO Investing designed to allow investment advisors to easily buy and manage customized stock portfolios for their clients, will be able to seamlessly download their FOLIO Advisor data into Advent Office.

About FOLIOfn
FOLIOfn, Inc.- (www.foliofn.com)—together with its wholly-owned self-clearing brokerage subsidiary FOLIOfn Investments, Inc. is harnessing the power of the Internet to enable individual and institutional investors to invest and trade better, smarter, and easier.

FOLIOfn’s first product, FOLIO Investing, lets investors buy and trade individual stocks or entire portfolios of up to 50 stocks, called “Folios,” with just a few clicks of the mouse. FOLIO Advisor (www.folioadvisor.com), the investment advisor version of FOLIO Investing, lets investment advisors buy and manage Folios for their clients. Investors and advisors can purchase and modify “Ready-to-Go” Folios or create their own Folios and can buy and trade stocks as often as they wish, executed in twice-daily trading windows, at no additional charge or through trades that go directly to the market for a low additional fee. They may also use FOLIOfn’s unique, automated tax planning system to help meet individual or client tax objectives and manage tax paperwork. In short, FOLIOfn products combine the diversification benefits and simplicity of buying mutual funds with the control and tax savings of direct stock ownership.

FOLIOfn’s financial backers include American Century Ventures, Mayfield, meVC Draper Fisher Jurvetson Fund I (NYSE: MVC), and PSINet (Nasdaq: PSIX). FOLIO Investing is offered through FOLIOfn Investments, Inc., a member of FINRA and SIPC. FOLIOfn Institutional, a division of FOLIOfn Investments, Inc., is offering FOLIO Advisor and FOLIO Investing to financial advisors and the institutional market. FOLIOfn and its subsidiaries are based in Vienna, Va. Unlike Folios, mutual funds are separate securities registered with the SEC that are separately sold and managed apart from their underlying securities.

About Advent Software
Advent Software, Inc. is the leading provider of Enterprise Investment Management solutions. The company provides a suite of complementary products for the front, middle and back offices of investment management organizations. Advent has more than 700 employees located in San Francisco, New York and Australia. The company’s common stock is traded on the NASDAQ National Market under the symbol ADVS.

Advent Software Announces Alliance with FOLIOfn

SAN FRANSCISCO, California and VIENNA, Virginia, January 10, 2001 — Advent Software, Inc. (NASDAQ: ADVS), the leading provider of enterprise investment management software, and FOLIOfn (www.foliofn.com), the creator of the unique FOLIO Investing service, today announce a strategic alliance under which FOLIOfn will be the exclusive provider of Folios (custom baskets of stocks) through the Advent Office™ portfolio accounting and management system licensed by more than 6,000 investment management firms. more

As part of this groundbreaking relationship, Advent will build an interface between Advent Office and FOLIOfn, and make FOLIO Advisor available directly to Advent Office clients. FOLIO Advisor (www.folioadvisor.com) is the investment advisor version of FOLIO Investing that allows investment advisors to easily buy and manage customized stock portfolios for their clients. FOLIOfn officially announced the launch of FOLIO Advisor today, in a separate release.

“We’ve been talking to hundreds of investment advisors and advisory firms about FOLIO Advisor,” said FOLIOfn founder and CEO Steven M.H. Wallman. ”Advisors have told us they view FOLIO Advisor as an easy and affordable alternative to existing separately managed accounts. As Advent is the largest provider of software to the industry, it just made sense for us to partner with Advent to serve better the advisor market. Clearly, combining the value of FOLIO Advisor with accessibility to Advent’s services will provide advisors with an even more attractive and robust offering. It’s estimated that Advent’s clients manage more than $5 trillion in assets. FOLIOfn expects significant penetration into Advent’s client base through this partnership, which will offer tremendous possibilities for rapid growth in our system.”

“Investment advisors are continually looking for ways to improve service to their clients in a cost-effective fashion. FOLIOfn has developed a truly unique new investment vehicle, and we’re excited about the opportunities it will provide to the professional investment market,” said Stephanie DiMarco, Chairman of Advent Software. ”Our goal is to be consistently on the leading edge of providing state-of-the-art technology and services to the professional investment community. Offering FOLIO Advisor to our client base is a logical progression in that effort.”

Investment advisors can use the FOLIO Advisor platform to buy for their clients whole portfolios of individual stocks—called Folios—that can be customized quickly, easily and automatically, and can also be private-labeled for firms and advisors. FOLIO Advisor offers scores of model Folios based on sectors, indexes, risk level, Wall Street analyst recommendations, and other criteria. Advisors can also use FOLIO Wizard to assist in selecting Folios for clients. Advisors can customize any of these Folios to their clients' specific needs by adding or deleting stocks and can update or rebalance Folios with just a few mouse clicks as often as they like with no additional cost. Advisors can also choose to create their own Folios from scratch with the help of online screening tools. In addition, FOLIO Advisor offers a revolutionary, automated tax lot tracking and tax management system that lets advisors easily manage a client’s capital gains and losses.

Advent Software has been providing the professional investment community with industry-leading software and services since 1983. The Advent Office™ suite of integrated solutions automates a wide range of investment activities, from portfolio management and partnership accounting to client relationship management, reconciliation processing, trading, and order management. Because these solutions are scalable, they are used by investment organizations of all sizes—from the single financial planner managing several million dollars, to large enterprise-wide firms with tens of billions of dollars under management.

Investment advisors who use FOLIO Advisor will be able to seamlessly download their FOLIO Advisor data into Advent Office, licensed by more than 6,000 investment firms around the world, in this exclusive relationship. In addition, FOLIOfn will have exclusive access to Advent TrustedNetwork for its newly created style of investing. Advent TrustedNetwork is the only solution for the professional investment community designed to provide consolidated, cross-institutional data to investment advisors and online financial service providers. With Advent TrustedNetwork, financial institutions can offer their clients investment advice based on the client’s entire portfolio, not just the assets held at that institution. And future versions of “MyAdvent,” a personalized home page for the Advent Office software system, will connect advisors directly to FOLIO Advisor.

About Advent Software
Advent Software, Inc. is the leading provider of Enterprise Investment Management solutions. The company provides a suite of complementary products for the front, middle and back offices of investment management organizations. Advent has more than 700 employees located in San Francisco, New York and Australia. The company’s common stock is traded on the NASDAQ National Market under the symbol ADVS.

About FOLIOfn
FOLIOfn, Inc.- (www.foliofn.com) -together with its wholly-owned self clearing brokerage subsidiary FOLIOfn Investments, Inc. is harnessing the power of the Internet to enable individual and institutional investors to invest and trade better, smarter, and easier. FOLIOfn’s financial backers include American Century Ventures, Mayfield, meVC Draper Fisher Jurvetson Fund I (NYSE: MVC), and PSINet (Nasdaq: PSIX). FOLIOfn’s first product, FOLIO Investing, is offered through FOLIOfn Investments, Inc., a member of FINRA and SIPC. FOLIOfn Institutional, a division of FOLIOfn Investments, Inc., is offering FOLIO Investing to financial advisors and the institutional market. FOLIOfn and its subsidiaries are based in Vienna, VA. Unlike Folios, mutual funds are managed by a paid fund manager and registered with the SEC. FOLIO Investing, like all investing, involves risk including the loss of principal.

Editor’s Note: For more information or to license Advent Software products, readers can contact Advent Software, 301 Brannan Street, San Francisco, CA 94107; phone (415) 543-7696, or visit Advent’s web site at http://www.advent.com.

Advent Software, Inc. is a registered trademark of Advent Software. All other products or services mentioned herein are trademarks or registered trademarks of their respective companies.

FOLIOfn Launches FOLIO Advisor

VIENNA, Virginia, January 10, 2001 — FOLIOfn, Inc. (www.foliofn.com) today announced the launch of FOLIO Advisor (www.folioadvisor.com), an easy-to-use, affordable alternative to existing separately managed accounts. Also today, FOLIOfn announced an exclusive partnership with Advent Software, Inc. (NASDAQ: ADVS). more

Investment advisors can use FOLIO Advisor, the investment advisor version of FOLIO Investing, to offer custom stock portfolios under a variety of pricing options including a low fee with no minimums, commissions, or transaction charges. Using this proprietary platform, advisors can buy and manage entire personalized stock portfolios for a client with a few clicks of the mouse and in the same amount of time it would take to buy a single stock or mutual fund.

“We’ve talked to hundreds of investment advisors and dozens of advisory firms who are eager to offer their clients the benefits of FOLIO Investing,” said FOLIOfn founder and CEO Steven M.H. Wallman. ”FOLIO Advisor makes it easy to offer customized services that used to be reserved for only the wealthiest clients. Our partnership with Advent, where we are the exclusive provider of this type of investing service, makes FOLIO Advisor even more attractive and will guarantee that we are able to reach quickly an even broader audience of advisors.”

“All evidence points to an explosion in the growth of customized, separately managed accounts,” said Jeff Helms, Managing Director of FOLIOfn Institutional. ”But until now, customized accounts just weren’t affordable for mainstream investors, and they weren’t easily incorporated into a fee-based advisory program. FOLIO Advisor combines commission-free trading and sophisticated modeling and recommendation tools to let advisors provide customized service to a broad range of clients with an affordable, easy-to-use platform.”

“With FOLIO Advisor and through our relationship with Advent, advisors can wrap together valuable customer services such as investment planning, policy development, portfolio management, performance measurement and trade execution, all in a single investment program for a single fee,” Helms added.

According to Cerulli Associates, assets in separately managed accounts were more than $1 trillion at the end of 1999, an increase from just under $300 billion in 1995. Cerulli attributed this continuing growth to demand for tax efficient and customized investing programs.

Investment advisors can use the FOLIO Advisor platform to buy for their clients whole portfolios of individual stocks—called Folios—that can be customized quickly, easily and automatically, and can also be private-labeled for firms and advisors. FOLIO Advisor offers scores of model Folios based on sectors, indexes, risk level, Wall Street Analyst recommendations and other criteria. Advisors can also use FOLIO Wizard to assist in selecting Folios for clients. Advisors can customize any of these Folios to their clients' specific needs by adding or subtracting stocks and can update or rebalance Folios with just a few mouse clicks as often as they like with no additional cost. Advisors can also choose to create their own Folios from scratch with the help of online screening tools.

Through FOLIOfn’s exclusive relationship with Advent, investment advisors will be able to seamlessly download their FOLIO Advisor data into Advent Office, licensed by more than 6,000 investment firms around the world. In addition, FOLIOfn will have exclusive access to Advent TrustedNetwork for its newly created style of investing. Advent TrustedNetwork is the only solution for the professional investment community designed to provide consolidated, cross-institutional data to investment advisors and online financial service providers. And the next version of “MyAdvent,” a personalized home page for the Advent Office software system, will connect advisors directly to FOLIO Advisor.

FOLIO Advisor offers a revolutionary, automated tax lot tracking and tax management system that lets advisors easily manage a client’s capital gains, resulting in tax savings that can more than offset the client’s advisor fees. Also, FOLIO Advisor delivers all statements and performance reports online (with paper available if needed) to maximize the time advisors can spend with clients—instead of on paperwork. FOLIO Advisor even takes care of client billing. Advisors can also allow their clients to review reports and analysis online.

About FOLIOfn
FOLIOfn, Inc.- (www.foliofn.com) -together with its wholly-owned self clearing brokerage subsidiary FOLIOfn Investments, Inc. is harnessing the power of the Internet to enable individual and institutional investors to invest and trade better, smarter, and easier. FOLIOfn’s financial backers include American Century Ventures, Mayfield, meVC Draper Fisher Jurvetson Fund I (NYSE: MVC), and PSINet (Nasdaq: PSIX). FOLIOfn’s first product, FOLIO Investing, is offered through FOLIOfn Investments, Inc., a member of FINRA and SIPC. FOLIOfn Institutional, a division of FOLIOfn Investments, Inc., is offering FOLIO Investing to financial advisors and the institutional market. FOLIOfn and its subsidiaries are based in Vienna, VA. Unlike Folios, mutual funds are managed by a paid fund manager and registered with the SEC. FOLIO Investing, like all investing, involves risk including the loss of principal.

FOLIOfn Teams with WR Hambrecht + Co to Make IPOs More Accessible to Investors

VIENNA, Virginia, January 5, 2001 — FOLIOfn, Inc. announced today that its members will have the opportunity to participate in initial public offerings (IPOs) through WR Hambrecht + Co’s OpenIPO, a new, more accessible way to take companies public using an auction-based model. FOLIOfn has also added a new IPO Center where interested members can sign up to receive alerts when an IPO becomes available, learn more about offerings, and bid on those offerings. more

“OpenIPO is a trailblazer in using technology to democratize and improve the traditional financial services model,” said FOLIOfn founder and CEO Steven M.H. Wallman. ”Typically, IPOs are only available to institutional investors and a few, select individual investors. In contrast, the OpenIPO process is available to all qualified investors. It’s designed to achieve a fair valuation that brings the issuing company the resources it needs and deserves, and encourages the participation of long-term investors.”

Bill Hambrecht, Chairman and CEO of WR Hambrecht + Co., added, “Steve Wallman recognized early on the ability of the Internet to drastically change how investing is done and, like WRH+Co, FOLIOfn is innovating the financial services industry by putting more choice and power in the hands of the individual investor.”

In the OpenIPO process, interested participants bid on stock at the price they believe is fair and all qualified bids—whether from an individual or an institution—are treated equally. An OpenIPO auction is typically open for bids for 3–5 weeks prior to the effective date of an offering. FOLIOfn members will be able to submit bids directly from the IPO Center.

Once the bidding concludes, the OpenIPO auction assembles the bids and, working from highest to lowest, finds the first bid price that will sell all the offering’s shares. This is the maximum price at which the issuing company will offer its shares. Taking that into account, along with a number of economic and business factors, the issuing company and underwriters then decide the offering price.

All participants bidding at or above the offering price will receive, at a minimum, a pro-rated amount of shares for which they bid, and all winning bidders pay the same price for shares they buy.

About FOLIOfn
FOLIOfn, Inc.- (www.foliofn.com) -together with its wholly-owned self-clearing brokerage subsidiary FOLIOfn Investments, Inc. is harnessing the power of the Internet to enable individual and institutional investors to invest and trade better, smarter, and easier. FOLIOfn’s first product, FOLIO Investing, lets investors buy and trade individual stocks or entire portfolios of up to 50 stocks, called “Folios,” with just a few clicks of the mouse. Investors can purchase and modify “Ready-to-Go” Folios or create their own Folios from scratch—all for a low, flat fee of $29.95 per month. For that amount, investors can create and trade up to three Folios, which can be in up to three different accounts (for example, a retirement account, joint account, and custodial account) or all in one account. Investors can buy and trade stocks as often as they wish in twice-daily trading windows at no additional charge or in direct trades (those that go directly to the market) for $14.95. They may also use FOLIOfn’s unique, automated tax planning system to help meet their tax objectives and manage tax paperwork. In short, FOLIO Investing combines the diversification benefits and simplicity of buying mutual funds with the control and tax savings of direct stock ownership.

FOLIOfn’s financial backers include American Century Ventures, Mayfield, meVC Draper Fisher Jurvetson Fund I (NYSE: MVC), and PSINet (Nasdaq: PSIX). FOLIOfn’s first product, FOLIO Investing, is offered through FOLIOfn Investments, Inc., a member of FINRA and SIPC. FOLIOfn Institutional, a division of FOLIOfn Investments, Inc., is offering FOLIO Investing to financial advisors and the institutional market. FOLIOfn and its subsidiaries are based in Vienna, Va. Unlike Folios, mutual funds are separate securities registered with the SEC that are separately sold and managed apart from their underlying securities. FOLIO Investing, like all investing, involves risk including the loss of principal.

About WR Hambrecht + Co
WR Hambrecht + Co (www.wrhambrecht.com) is a financial services firm committed to using the Internet and auction process to provide openness, fairness and access for investors, as well as fair pricing for issuers. The firm’s earliest and best-known innovations are OpenIPO, an auction-based model for initial public offerings, and OpenBook, an auction for corporate debt offerings. WR Hambrecht + Co provides underwriting and advisory services for technology and emerging growth companies, as well as equity research, sales and trading, electronic brokerage and private equity offerings for institutions and individuals. WR Hambrecht + Co has offices in San Francisco, New York, Boston, Philadelphia and Seattle and is backed by industry leaders including: American Century, American Express, Crimson Ventures, epartners, Fidelity Ventures, Instinet Corporation, Novell, Park Avenue Equity Partners, LP, Scudder Technology Fund, Kemper Technology Fund and Texas Pacific Group.

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2000

Cuna Mutual Group and MEMBERS Development Company Partner with FOLIOfn

MADISON, Wisconsin, December 20, 2000 — CUNA Mutual Group, working with MEMBERS Development Company, LLC, announced an exclusive partnership to offer FOLIOfn’s innovative new product, FOLIO Investing℠, to credit unions and their members throughout the country. more

MEMBERS FOLIO Investing, as this service will be branded in credit unions, will include FOLIO Investing, the innovative brokerage service invented by FOLIOfn, as well as the traditional discount brokerage service already available as part of FOLIO Investing, and a new, easy and affordable dollar-based stock investing system for novice investors or those who simply wish to make small investments in individual stocks.

“MEMBERS Development Company and CUNA Mutual work together to offer high-value solutions and maximum convenience to the nation’s credit unions and their tens of millions of members,” said John Henry, CEO of MEMBERS Development Company, and vice president of sales and marketing for CUNA Mutual. “Through the products we develop, we help credit unions offer their members a better deal in financial services. MEMBERS FOLIO Investing is a great product for credit unions because it represents a good deal and a sound way to invest.”

“Our partnership with FOLIOfn advances CUNA Mutual’s efforts to help credit unions provide attractive investment solutions to their various member segments, said Kevin Lentz, vice president of Member Services at CUNA Mutual. “The FOLIO Investing concept provides a strong value proposition for credit union members whether they want to invest in personalized stock portfolios or simply use the FOLIOfn system for affordable stock investing.”

“It fits nicely with CUNA Mutual’s MEMBERS Brokerage Account, which is aimed at member segments seeking the flexibility to manage their brokerage account through multiple channels—enabling on-line, call center and representative access in a single account.”

CUNA Mutual and MEMBERS Development Company plan to offer MEMBERS FOLIO Investing through approximately 200 credit unions within six months and more than 500 credit unions within two years. CUNA Mutual provides financial and insurance products and services to some 95 percent of the 10,700 credit unions in the United States. More than 5,000 credit unions already have at least one MEMBERS Financial Services relationship with CUNA Mutual.

“Millions of credit union members will soon have access to MEMBERS FOLIO Investing,” said FOLIOfn founder and CEO Steven M.H. Wallman. Both CUNA Mutual and MEMBERS Development Company are committed to developing and offering innovative new products that maintain the value and quality credit union members expect and demand. We believe that MEMBERS FOLIO Investing, which uses new technology to offer investors a new way to invest and a great value, is a terrific addition to that menu.”

MEMBERS FOLIO Investing lets investors buy and trade individual stocks or entire portfolios, called “Folios,” with just a few clicks of the mouse. Investors can purchase and modify “Ready-to-Go” Folios or create their own Folios from scratch—all for a low, flat fee of $29.95 per month. For that amount, investors can create and trade up to three Folios, which can be in up to three different accounts (for example, a retirement account, joint account, and custodial account) or all in one account. Each Folio can include up to 50 stocks.

Investors can buy and trade stocks as often as they wish in twice-daily trading windows at no additional charge. They may also use FOLIOfn’s unique, automated tax planning system to help meet their tax objectives and manage tax paperwork. In short, MEMBERS FOLIO Investing combines the diversification benefits and simplicity of buying mutual funds with the control and tax savings of direct stock ownership.

MEMBERS FOLIO Investing also includes traditional discount brokerage services such as direct trades for $14.95, and a new option designed especially for beginning investors. The new service, which will be available early in 2001, will feature a very affordable, easy, dollar-based stock investing system.

“This is truly an innovative package of services,” Henry said. “There’s no other product like it in the credit union marketplace.”

“The FOLIOfn range of brokerage services will meet the needs of every level of credit union member investor,” Wallman said. “As investors add to their assets or learn more about investing, they can move from our new service for novice investors to more traditional brokerage services or begin to use the power of MEMBERS FOLIO Investing.”

“This is the perfect combination of an advanced offering that draws on new technology to meet the diverse needs of credit union members,” Henry added.

MEMBERS Development Company, owned by 37 credit unions or their service organizations and the CUNA Mutual Group, was formed earlier this year to leverage their combined resources to help credit unions expand member services portfolio with high-value member products and services. The new MEMBERS FOLIOfn investment products will be made available to credit unions through CUNA Mutual and its field force.

FOLIOfn, Inc. (www.foliofn.com), together with its wholly-owned self clearing brokerage subsidiary FOLIOfn Investments, Inc., is harnessing the power of the Internet to enable individual and institutional investors to invest and trade better, smarter, and easier. FOLIO Investing is offered through FOLIOfn Investments, Inc., a member of FINRA and SIPC. FOLIOfn and its subsidiaries are based in Vienna, VA. Unlike Folios, mutual funds are separate securities registered with the SEC that are separately sold and managed apart from their underlying securities. FOLIO Investing, like all investing, involves risk including the loss of principal.

CUNA Mutual Group (www.cunamutual.com) is the leading financial services provider to credit unions and their members worldwide, offering insurance, investment and technological solutions through strategic relationships and modern service channels.

AFP and FOLIOfn Join to Deliver FOLIO Investing Services to More than 14,000 Financial Officers

BETHESDA, Maryland, October 25, 2000 — The Association for Financial Professionals (AFP, www.AFPonline.org), which represents more than 14,000 financial officers, announced today that its members will receive special access to FOLIO Investing℠. This service allows investors to buy and trade personalized portfolios of stocks, called “Folios,” with no minimums, commissions or asset-based fees, and is available as a retail service and for company 401(k) plans or as an employee benefit. more

FOLIO Investing lets investors buy and trade individual stocks or entire portfolios with a few clicks of the mouse. Investors can purchase and modify “Ready-to-Go” Folios or create their own Folios from scratch—all for a flat fee. Investors can create and trade up to three Folios, which can be in up to three different accounts (for example, retirement, joint and custodial accounts) or all in one account. Investors can buy and trade stocks as often as they wish in twice-daily trading windows at no additional charge (or make trades that go directly to the market for $14.95). Each Folio can hold up to 50 stocks.

“We are pleased to be affiliated with FOLIOfn and to add stock folio management to our financial Web portal,” said Jim Kaitz, AFP’s president and CEO.

AFP and FOLIOfn Partnership

“This is a great match,” said Steven M.H. Wallman, founder and CEO of FOLIOfn. “AFP members can bring their expertise to the power and simplicity of FOLIO Investing. We’re pleased that AFP recognizes the value of this unique product, which makes it easy to combine the diversification benefits and simplicity of mutual funds with the personalization, control and tax planning of direct stock ownership, and we believe AFP members will respond as well.”

About FOLIOfn
FOLIOfn, (www.foliofn.com) together with its wholly-owned self-clearing brokerage subsidiary FOLIOfn Investments, Inc. is harnessing the power of the Internet to enable individual and institutional investors to invest and trade better, smarter, and easier. FOLIOfn’s financial backers include PSINet (Nasdaq: PSIX), one of the nation’s leading Internet service providers, Mayfield, one of the country’s elite venture capital partnerships, meVC Draper Fisher Jurvetson Fund I (NYSE: MVC), a venture capital fund that provides individual investors access to private equity investments, and American Century Ventures, the strategic investment group for American Century, a mutual fund, brokerage, and investment services company serving nearly two million individual and institutional investors and managing more than $110 billion in assets. FOLIOfn’s first product, FOLIO Investing, is offered through FOLIOfn Investments, Inc., a member of FINRA and SIPC. FOLIOfn Institutional is offering FOLIO Investing to financial advisors and the institutional market. FOLIOfn and its subsidiaries are based in Vienna, Va. Unlike Folios, mutual funds are managed by a paid fund manager and registered with the SEC. FOLIO Investing, like all investing, involves risk including the loss of principal.

About AFP
The Association for Financial Professionals in Bethesda, Maryland, formerly the Treasury Management Association, has grown in the past 20 years into a community of more than 14,000 individuals representing a broad spectrum of financial disciplines. AFP turns knowledge into performance by supporting members throughout all stages of their careers with research, continuing education, career development, professional certifications, publications, representation to key legislators and regulators, and the development of industry standards.

NAIC Presents Government Service Award to FOLIOfn VP for Content and Investor Education

VIENNA, Virginia, August 22, 2000 — During its annual Investors Congress and Expo, the National Association of Investors Corporation (NAIC)’s Investment Education Institute (IEI) presented Nancy M. Smith with its “Dutch Shoe” award in recognition of her outstanding contributions to the field of investment education. The NAIC is a non-profit association dedicated to investment education for individuals and investment clubs, founded in 1951. more

Smith now serves as Vice President of Web Content and Investor Education for FOLIOfn, an online brokerage offering a revolutionary new way to invest. Prior to joining FOLIOfn, Smith was Director of the Office of Investor Education for the U.S. Securities and Exchange Commission (SEC). Under her leadership, that new office undertook a variety of new initiatives to educate and protect investors, including the establishment of a web site for investors and nationwide investor town meetings. Smith was also instrumental in the drive to require companies to write prospectuses in plain English.

“Nancy is clearly one of the leading investor advocates in the country, and I applaud the NAIC for recognizing her work,” said FOLIOfn founder and CEO Steve Wallman, a former SEC Commissioner. “I saw her commitment to investors every day during my tenure at the SEC, and it’s why I was so thrilled that she agreed to join FOLIOfn. We are committed to running this brokerage in a way that benefits investors, and Nancy’s guidance serves us well in that effort.”

Prior to joining the SEC, Smith served as Director of the New Mexico Securities Division, where she directed the state agency charged with protecting New Mexico citizens from fraudulent and unfair securities offerings and practices. In that role, Smith was active in the North American Securities Administrators Association (NASAA), the oldest international organization devoted to investor protection. She was among a group of five state regulators who represented NASAA in an investigation of problems associated with limited partnerships sold by Prudential Securities in the 1980s. The probe led to Prudential paying over $1 billion to wronged investors.

In her current position with FOLIOfn, Smith is a member of the company’s management team and is involved in all aspects of developing and introducing new products, including FOLIOfn’s first product, FOLIO Investing. She directs all content developed for the site and has focused on integrating educational and help information into the site’s brokerage area, rather than having it only available in separate sections.

Smith, who has also worked as a senior legislative aide on Capitol Hill, earned undergraduate and law degrees from Georgetown University, and now lives in Virginia with her husband, Jeff.

About FOLIOfn
FOLIOfn Inc., (www.foliofn.com), together with its wholly-owned brokerage subsidiary FOLIOfn Investments, Inc., is harnessing the power of the Internet to enable individual and smaller institutional investors to invest and trade better, smarter and easier. FOLIO Investing, the first in the series of smart financial services from FOLIOfn, offers a whole new way to invest and trade, combining many of the best qualities of mutual funds, traditional brokerage services and on-line trading. FOLIOfn’s financial backers include PSINet, one of the nation’s leading Internet service providers, Mayfield, one of the country’s elite capital partnerships, and numerous other investors, including Jefferson Partners of Toronto. FOLIO Investing is offered through FOLIOfn Investments, Inc., a member of FINRA and SIPC. FOLIOfn and its subsidiaries are based in Vienna, Va.

Transcript of America Online Chat with FOLIOfn CEO Steve Wallman

Question: What prompted you to develop FOLIOfn in its present format?
SW: We wanted to come up with a better way for investors to invest that would combine the benefits of diversification and the benefits of direct stock ownership. more

Question: What was one of the biggest changes you saw made while you were commissioner of the Securities and Exchange Commission from 1994–97?
SW: The opportunity to use electronic means, specifically the Internet, to provide innovative ways to invest.

Question: How do you feel stocks compare to mutual funds for investors?
SW: We think that there are advantages in both, which is why we created FOLIO Investing. The advantages include the diversification benefits of mutual funds with the taxes, control, personalization, and control over fees that come from direct stock ownership.

Question: What is FOLIO Investing?
SW: FOLIO Investing is a unique and novel system that allows an investor to buy and trade personalized portfolios of stocks (a portfolio, which we call a “FOLIO,” can hold anywhere from one to 50 stocks).

Question: When do you think FOLIOfn will offer margin accounts?
SW: We have a number of innovations in the queue. Margin is one of the enhancements we intend to offer in the next few months. By the way, we have changed our name to eliminate the brackets, to make it easier for people to find us on the Internet, so now we are FOLIOfn and no longer FOLIO[fn].

Question: Besides margin, what are some other program enhancements in your pipeline?
SW: We are improving our site almost every day. We will be adding advice, planning, education, limit orders, margin, even mutual funds [with] fixed income, and a variety of other things over the next few months. And also you should know that FOLIO Investing is only our first product. We have a number of new financial services innovations in addition to just enhancements to FOLIO Investing on the way, but we won’t announce them until they’re ready.

Question: What are the benefits of using FOLIOfn versus a more traditional mutual fund?
SW: There are a significant number of benefits, including control over taxes. (With Folios you can actually sell a stock that might be a loss and get a capital loss even though the value of the whole Folio has increased significantly.)

You can pick the specific stocks that you would like in your Folio and customize it any way you want, such as by not including tobacco stocks.

We charge only a flat fee of $29.95 per month, with no asset-based fee (the average cost for being in a mutual fund for the average investor is about $400 a year).

We permit additional trading without any additional commissions (you could trade multiple stocks each day if you wanted) and we are simpler to use than trying to pick a mutual fund. For example, if you want to invest in a sector or at a risk level or even in a geographic region, you can easily, and for no additional cost, simply buy a Folio tailored to your preference.

Those are just some of the advantages-there are a lot more.

Question: What kind of stocks do you like to invest in?
SW: Personally, I like to invest in sectors where I have some personal interest, such as the Internet and biotechnology. But I also know that I don’t know enough to pick the specific stocks that will be winners, so I like to buy a sector, exclude a few of the stocks that I know I don’t want, and therefore buy a diversified portfolio of the rest.

Question: What is the Web site and phone number?
SW: The URL is www.foliofn.com. Call 1-888-973-7890, 24 hours, seven days a week for support.

Question: What stock selection criteria do you use for the “in-house” Folios?
SW: We have a variety of different criteria depending on the specific Folio. Each of the selection criteria and methodology is described on the Web site with each Folio—but what we do not do is try to “pick winners.” We do objectively add stocks to Folios based on their objective characteristics. For example, the biotechnology Folio is comprised of a diversity of biotech stocks based on their industry (obviously) and market capitalization, variances, and other factors.

Question: What led you to push for stock pricing in decimals?
SW: The dual benefits to investors: Allowing spreads to be set in decimals will result in far smaller spreads, saving investors billions over the years, and the ease of trading in decimals which is the same way that everything else in our society is bought and sold.

Question: If a person wishes to develop their own Folio, what would it cost?
SW: Our site allows customization of our ready-to-go Folios, or building a Folio from the ground up (one stock at a time, for example), all for the same cost, a flat monthly fee which includes all the trading in our daily windows for just $29.95 per month.

Question: In developing a personal Folio, what are the limits on a Folio with your firm?
SW: You can trade up to twice a day, every business day, up to three Folios, each of which can have from one to 50 stocks chosen from a universe of 2,500 stocks without any limitation or additional fee.

Question: What are the costs, management fees and administrative fees of a Folio?
SW: A lot of people have trouble believing that $29.95 a month covers everything, but it does! (grinning)

Question: Your cost comparison between existing mutual funds and Folio management is great. Do many people use it?
SW:Yes ... and the number is increasing every day. (By the way, we have a cost calculator on the site that shows the cost of our system and other ways to invest.) But I do want to say that mutual funds, especially low cost index funds, can be great investments for those who do no or little trading and have smaller amounts to invest, in particular if there is little concern for the specific stocks (like tobacco or no tobacco) that the investor would be investing in.

Question: Do you provide research or assistance in any way for a person building a Folio?
SW: Yes, we do. We have quarterly sector reports from Argus designed specifically for us and a host of other materials, including Zacks research on companies, a risk questionnaire that helps you determine what risk level you might wish to have, and other tools.

Question: Isn’t market cap kind of vanilla in choosing a stock?
SW: Sure, but it is only one of the factors that is used.

Question: Other than market capitalization, what other factors are employed?
SW: The other factors include fundamental data, such as price-to-book, the market (or beta), and many other financial criteria, not to mention that one can create Folios based upon geographical criteria and even social criteria, such as companies that are labor-friendly.

Question: Can an investor have dividends automatically reinvested in the stocks that are held in a Folio?
SW: Yes. We also provide automatic deposit and withdrawal, and you can also decide not to automatically reinvest dividends and just put it into cash. And we provide free automatic cash sweeps as well as free checking. Plus you can pay the monthly fee with your credit card and earn miles!

Question: When one sells out of a Folio, doesn’t that create something of a tax return headache?
SW: We have terrific tax tools as part of our system, including automatically, if you wish, selecting to sell the tax lot with the highest cost basis to give you the lowest capital gain. You can also select from seven other means of selecting the tax lots to sell. We will also have download capability to various tax programs for year-end reporting.

Question: How does this company, FOLIOfn, make any money?
SW: A lot of people ask us how we can be so reasonably priced, and it turns out we can make a reasonable profit and charge fair prices. We built our system to maximize the use of technology and keep our costs low.

Question: Are you aware of a similar offering coming down the pike from Jim O’Shaughnessy?
SW: Since we’ve been offering our system, a number of people have stated their determination to copy us. We take it as a compliment.

FOLIOfn Update

WHAT: FOLIOfn’s revolutionary first product, FOLIO Investing, lets investors easily buy and sell personalized baskets of stocks—known as “Folios”—with just a few clicks of the mouse. This advisory provides background and contact information, and also updates our name and pricing changes. more

BACKGROUND: With FOLIO Investing, instead of choosing between picking stocks one at a time or buying shares in a fund, investors simply select or create Folios—each of which can hold from one to 50 stocks—that satisfy their investing goals and preferences. Investors can base their choices on preferred risk levels, personal values, industry sectors and other factors. Investors can choose, and modify any way they want, any of the scores of Ready-to-Go Folios on the site, or use our stock selector tools to create their own Folios from the ground up. Investors get the benefits of diversification and simplicity of funds, but because they own the underlying stocks, they also get tax savings and control from direct stock ownership.

HOW MUCH: FOLIO Investing costs just $29.95 per month, which covers all trading during twice-daily window trades, with no trading commissions and no asset based fees. Alternatively, investors who prefer can pay $295 for the whole year, and get two months free. For this fee, investors can create and trade up to three Folios. Investors can trade just one or two stocks a day, every day, for the same flat fee, or they can trade entire baskets or Folios.

WHO WE ARE: FOLIOfn (we used to be FOLIO[fn] but removed the brackets from our name) is based in the high-tech corridor of Northern Virginia. We’re on the Web at www.foliofn.com.

FOLIOfn was founded in 1998 by Steven M.H. Wallman, a former Commissioner of the U.S. Securities and Exchange Commission, who was widely recognized during his tenure and continues to be known for his advocacy efforts on behalf of individual investors.

The company’s financial backers include PSINet (Nasdaq: PSIX), one of the nation’s leading Internet service providers, Mayfield, one of the country’s elite capital partnerships, meVC Draper Fisher Jurvetson Fund I (NYSE: MVC), a venture capital fund that provides individual investors access to private equity investments, and American Century Ventures, the strategic investment group for American Century, a mutual fund, brokerage and investment services company serving nearly two million individual and institutional investors and managing more than $110 billion in assets. The company was founded in 1998, and officially started offering its products to the public on May 24, 2000.

FOLIO Investing is offered through FOLIOfn Investments, Inc. a subsidiary of FOLIOfn, Inc. Unlike Folios, mutual funds are managed by a paid fund manager and regulated by the SEC. FOLIO Investing, like all investing, involves risk including the loss of principal.

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

KANSAS CITY, Missouri, July 11, 2000 — 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. more

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.

About American Century
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 FOLIOfn
FOLIOfn Inc., (www.foliofn.com), together with its wholly-owned brokerage subsidiary FOLIOfn Investments, Inc., is harnessing the power of the Internet to enable individual and smaller institutional investors to invest and trade better, smarter and easier. FOLIO Investing, the first in the series of smart financial services from FOLIOfn, offers a whole new way to invest and trade, combining many of the best qualities of mutual funds, traditional brokerage services and online trading. FOLIOfn’s financial backers include PSINet, one of the nation’s leading Internet service providers, Mayfield, one of the country’s elite capital partnerships, meVC Draper Fisher Jurvetson Fund I, a venture capital investment management firm to provide individual investors access to private equity investments and numerous other investors. FOLIO Investing is offered through FOLIOfn Investments, Inc., a member of FINRA and SIPC. FOLIOfn and its subsidiaries are based in Vienna, Va.

meVC Draper Fisher Jurvetson Fund I Invests $15 Million in FOLIOfn

SAN FRANCISCO, June 22, 2000 — meVC Draper Fisher Jurvetson Fund I, an information technology venture capital fund providing individual investors access to private equity investments (NYSE: MVC), today announced a $15 million mezzanine investment in FOLIOfn, (www.foliofn.com) a new online company that is creating a series of innovative financial services products. The Fund, which closed in March 2000 and will begin trading no later than June 26, 2000 on the New York Stock Exchange under the symbol “MVC,” is the first in what will be a family of meVC venture capital funds created to give individual investors the ability to diversify their investment portfolios and participate in private equity investments. more

FOLIOfn’s first product, a proprietary system known as FOLIO Investing, uses the Internet and advanced technology to let investors easily buy and sell entire diversified baskets of stocks—known as “Folios”—with just a few clicks of the mouse. Instead of trying to pick stocks one at a time, or trying to identify the “perfect” mutual fund, investors simply select or create Folios that satisfy their investing goals and preferences. Investors can base their choices on preferred risk levels, personal values, industry sectors and other factors. Investors can choose from scores of Ready-to-Go Folios, or create their own, using stock selector tools or even picking one stock at a time. Investors can always modify any Folios to meet their preferences.

FOLIO Investing combines benefits of mutual fund investing, including diversification and simplicity, with advantages of stock investing, including corporate governance and tax planning tools that can save investors money. Its unique flat fee pricing allows investors to create and trade three Folios—comprised of one to 50 stocks each—for a flat fee of $29.95 per month or just $295 for a full year. There are no trading commissions or extra charges for twice-daily window trades.

“Until now, technology has only been used to make trading faster and cheaper,” said Steven M.H. Wallman, founder and CEO of FOLIOfn. “Our first product, FOLIO Investing, offers investors a better and an easier choice. FOLIO Investing symbolizes the changes FOLIOfn is going to launch in the investing world. meVC’s support for what we’re doing underscores the Fund’s commitment to being at the forefront of technological change.”

“FOLIOfn has developed an industry revolutionizing product that can be marketed to individual investors, company 401K plans and investment professionals alike,” said John Grillos, Chairman and Chief Executive officer of meVC Draper Fisher Jurvetson Fund I, Inc. “We believe that FOLIOfn’s strong management team headed by Steven Wallman, a former SEC commissioner, will aid the company in navigating this new and exciting landscape of investing.”

About the meVC Draper Fisher Jurvetson Fund I, Inc.

meVC Draper Fisher Jurvetson Fund I, Inc., an information technology venture capital fund, was formed through a collaborative effort between meVC, a Delaware corporation, and Draper Fisher Jurvetson, a leading venture capital investment firm. The Fund’s investment objective is long-term capital appreciation from venture capital investments in information technology companies, primarily in the Internet, e-commerce, telecommunications, networking, software and information services industries. Additional information may be obtained by writing to meVC Draper Fisher Jurvetson Fund I, Inc., 991 Folsom Street, San Francisco, California 94107, Attention: Secretary or by calling 877-474-meVC (6382).

About meVC
meVC is the first venture capital investment management firm to provide all individual investors access to private equity investments. meVC plans to sponsor a family of venture capital funds that invest in various venture capital industry sectors and geographic regions. In March of 2000, meVC launched its first Fund, a $330 million venture capital fund emphasizing investments in information technology companies. The Fund will be publicly traded on the New York Stock Exchange on June 26, 2000 under the symbol “MVC.” The company is headquartered in San Francisco, California, and can be reached via the Web at www.meVC.com or at 415-977-6150.

About FOLIOfn
FOLIOfn Inc., (www.foliofn.com), together with its wholly-owned brokerage subsidiary FOLIOfn Investments, Inc., is harnessing the power of the Internet to enable individual and smaller institutional investors to invest and trade better, smarter and easier. FOLIO Investing, the first in the series of smart financial services from FOLIOfn, offers a whole new way to invest and trade, combining many of the best qualities of mutual funds, traditional brokerage services and on-line trading. FOLIOfn’s financial backers include PSINet, one of the nation’s leading Internet service providers, Mayfield, one of the country’s elite capital partnerships, and numerous other investors, including Jefferson Partners of Toronto. FOLIO Investing is offered through FOLIOfn Investments, Inc. FOLIOfn, Inc. and its subsidiaries are based in Vienna, VA.

Statements in this announcement other than historical data and information constitute forward looking statements that involve risks and uncertainties that could cause actual results to differ materially from those stated or implied by such forward-looking statements. Potential risks and uncertainties may include, but are not limited to, recent changes in senior management, fluctuations in operating results, market conditions and changes in technology and increased competition.

FOLIOfn Launches Revolution in Online Investing

Vienna, Virginia, May 24, 2000 — FOLIOfn, Inc. (www.foliofn.com) today officially opened its virtual doors for business, offering for the first time a unique new system that will change for the better the way people invest in the stock market. more

FOLIOfn’s proprietary system, known as FOLIO Investing, uses the Internet and advanced technology to let investors easily buy and sell entire diversified baskets of stocks—known as “Folios”—with just a few clicks of the mouse. Instead of trying to pick stocks one at a time, or trying to identify the “perfect” mutual fund, investors simply select or create Folios that satisfy their investing goals and preferences. Investors can base their choices on preferred risk levels, personal values, industry sectors and other factors.

“An investor who believes the biotech sector is currently a good investment but doesn’t know which of the many biotech stocks is the right investment can now buy a whole Folio in that sector without incurring the costs, fees and taxes of a mutual fund,” said Steven M.H. Wallman, FOLIOfn’s founder and CEO. “It’s a better way to invest because an investor is obtaining a more diversified portfolio rather than just buying a few stocks. And it’s an easier way to invest because picking a sector, industry or other preference is much less difficult than trying to pick the right stock or fund.”

FOLIOfn currently provides investors with a wide selection of approximately 90 “Ready-to-Go” Folios that reflect particular market indexes, sectors or risk levels. Hundreds of additional Ready-to-Go Folios will be added over time.

FOLIOfn also provides investors with the tools to customize or create their own Folios from scratch based upon a wide variety of investing criteria. Investors can quickly and easily tailor any Folio—including every Ready-to-Go Folio—to reflect their own personal preferences. For example, if an investor wants to purchase a Folio comprised of the 30 stocks in the Dow Jones Industrial Average, but prefers not to own tobacco stocks, a few clicks of the mouse removes the tobacco company from the Folio, leaving the investor with the “Dow 29.” No mutual fund, exchange-traded fund or other vehicle can offer investors that flexibility and control.

“There are plenty of online and discount brokers, but there is simply no other system or company that offers this novel and unique approach to investing,” said Wallman, who served as a Commissioner of the U.S. Securities and Exchange Commission from 1994 to 1997. “FOLIO Investing from FOLIOfn provides investors with the first truly new way to invest in the stock market since the introduction of the index mutual fund, which first provided relatively low-cost diversification to the typical investor. We believe FOLIO Investing will become the definitive model for smart investing in the 21st century.”

Studies show that investors who own a diversified stock portfolio increase their chances of achieving higher expected returns for the same amount of risk as investors who own just a handful of stocks. Until now only the wealthiest investors and large institutions could afford to buy and trade portfolios of 20, 30 or 50 stocks. FOLIO Investing is designed specifically to help individuals and smaller institutions take advantage of the crowning principle of smart investing—diversification.

“Study after study shows that virtually no one can consistently select winning stocks, and yet many investors feel there is no good alternative to stock picking,” said Wallman.

“Many investors turn to mutual funds because they recognize the value of diversification,” Wallman added. “But they are also giving up the benefits of direct stock ownership, such as the ability to reduce taxes by controlling the decision of when and how much to sell. Moreover, many mutual funds underperform the indices, and studies show that even past superior performance is no indication of future success. In addition, mutual fund holders are often charged high fees they don’t realize they are paying because the actual amount charged isn’t clearly disclosed to investors in customer statements.”

FOLIO Investing is available for a low annual flat fee that covers all Folio trading, all year long. For a fee of just $29.95 per month (or $295 for the year) investors can create, own and trade as many as three Folios, each of which can hold from one to 50 stocks. Investors may also select a quarterly billing option and pay just $85 per quarter. Investors who wish to create more than three Folios can do so for a fee of only $95 per year (about $8 per month) per Folio. Trades are executed twice a day during trading windows. Direct trades—regular trades that go to the market for execution without waiting for a window—are available for just $14.95 per trade.

By comparison, the average domestic equity mutual fund charges an annual fee of 1.23% of assets*, which means the average mutual fund would cost $467 per year for a $38,000 investment, the amount held in funds by the typical fund investor. And this does not include sales charges. With stocks, it would cost $598 in commissions to create—just once—a single portfolio of only 30 stocks using a discount broker charging $19.95 per trade. And the investor would have to pay that amount again and again whenever he or she wanted to add to, subtract from or otherwise modify that portfolio. For just $29.95 a month, FOLIOfn lets investors purchase and trade—all year long and with no additional fees or commissions—up to three Folios containing up to 50 stocks each.

Each Folio can be changed as much as the investor wishes. For example, an investor could purchase a market index Folio and then trade it for a biotech Folio and then switch over to an Internet Folio. Over time, as various stocks change in value, a portfolio can change from what the investor originally selected. FOLIOfn makes it easy for investors to rebalance their Folios so those individual stock holdings reflect their original proportions. This rebalancing can be done as little or as often as an investor wishes, with no extra trading or commission charges.

In contrast to many other brokers and funds, FOLIOfn tracks investors’ tax lots. FOLIOfn’s sophisticated tax tools let investors sell the shares that minimize their taxes or meet other tax planning goals. In addition, FOLIOfn will automatically provide reports for tax filing, helping to simplify the tax process.

“It was important to me to create a better way to invest. It was also important to create a better way to charge for it,” said Wallman. “Flat-fee pricing aligns our interests with those of our customers because we have no incentive to encourage investors to trade more often than makes sense for them. And we don’t penalize investors for their investing success. Unlike companies charging asset-based fees, our fees don’t go up just because the market does or the amount of money in the account does. The bottom line is that we’re committed to building a company that will become synonymous with innovation and integrity in the marketplace. We will operate at the intersection of technology and finance, providing our customers with smart investing alternatives.”

About FOLIOfn
FOLIOfn Inc., (www.foliofn.com), together with its wholly-owned brokerage subsidiary FOLIOfn Investments, Inc., is harnessing the power of the Internet to enable individual and smaller institutional investors to invest and trade better, smarter and easier. FOLIO Investing, the first in the series of smart financial services from FOLIOfn, offers a whole new way to invest and trade, combining many of the best qualities of mutual funds, traditional brokerage services and on-line trading. FOLIOfn’s financial backers include PSINet, one of the nation’s leading Internet service providers, Mayfield, one of the country’s elite capital partnerships, and numerous other investors, including Jefferson Partners of Toronto. FOLIO Investing is offered through FOLIOfn Investments, Inc., a member of FINRA and SIPC. FOLIOfn and its subsidiaries are based in Vienna, Va. Unlike Folios, mutual funds are managed by a paid fund manager and registered with the SEC. FOLIO Investing, like all investing, involves risk including the loss of principal.

* Morningstar

FOLIOfn Joins Security Industry Association

Vienna, Virginia, April 15, 2000 — FOLIOfn, Inc. (www.foliofn.com) today announced that it has been admitted as a member of the Securities Industry Association. SIA is the securities industry’s trade association, representing the business interests of about 750 securities firms in North American, which collectively account for about 90 percent of securities revenue in the U.S. FOLIOfn is also a member of the Financial Industry Regulatory Authority (NASD). more

FOLIOfn, founded in 1998 by Steven M.H. Wallman, recently announced its first product, FOLIO Investing, which provides a unique and novel way for individual and small scale institutional investors to invest online. In contrast to current investment choices, FOLIOfn investors can choose their investment goals and preferences, including risk level and personal values, then buy diversified portfolios averaging 20-30 stocks that meet those needs. Investors directly own the stocks in each of their portfolios, known as Folios, which gives them combined benefits of diversification and direct stock ownership. More information about FOLIO Investing is available at www.foliofn.com.

About FOLIOfn
FOLIOfn Inc., (www.foliofn.com), together with its wholly-owned brokerage subsidiary FOLIOfn Investments, Inc., is harnessing the power of the Internet to enable individual and smaller institutional investors to invest and trade better, smarter and easier. FOLIO Investing, the first in the series of smart financial services from FOLIOfn, offers a whole new way to invest and trade, combining many of the best qualities of mutual funds, traditional brokerage services and on-line trading. FOLIOfn’s financial backers include PSINet, one of the nation’s leading Internet service providers, and two private venture capital partnerships, Mayfield and Jefferson Partners. FOLIO Investing is offered through FOLIOfn Investments, Inc. FOLIOfn and its subsidiaries are based in Vienna, Va.

New Company to Offer Innovative Online Financial Products and Services to Benefit Individual Investors

Vienna, Virginia, March 2, 2000 — FOLIOfn, Inc. (www.foliofn.com) officially launched today, announcing plans to develop an array of Internet-based financial services for individual and smaller institutional investors. At a news conference in New York City, company officials pledged to leverage the full power of the Internet to create innovative products and services to benefit these investors. more

“Our goal is nothing short of a total revolution in individual investing,” said FOLIOfn founder and chairman Steven M.H. Wallman. “Until today, the Internet has been used primarily as a new distribution channel to offer existing services. We’re putting technology to work to create new and exciting financial services that weren’t possible before the Internet.”

FOLIOfn also today unveiled its first offering, FOLIO Investing, a revolutionary new investment tool that allows investors to buy and sell entire stock portfolios, known as Folios, with just a few mouse clicks. With FOLIO Investing, investors choose their risk or other personal investing preferences, then directly invest in whole portfolios that match those preferences.

FOLIO Investing helps eliminate the unnecessary risk, cost and guesswork that is inherent in investing one stock at a time. For example, to invest in the Internet industry, rather than trying to pick individual stocks, an investor can invest in the sector by buying an Internet Folio. Investors can also modify Folios any way they want. Perhaps most importantly, investing in diversified portfolios of stocks instead of just a handful of stocks can provide investors a lower level of risk for the same expected rate of return—or the potential for a higher expected rate of return for the same level of risk.

FOLIOfn was founded in 1998 by Wallman, who served from 1994 through 1997 as a Commissioner of the U.S. Securities and Exchange Commission. During his tenure, Wallman was widely recognized for his advocacy efforts on behalf of individual investors. He played an integral role in setting policies at the SEC that paved the way for the widespread adoption of Internet and other technologies within the financial services industry. Wallman is also a senior fellow (non-resident) at the Brookings Institution in Washington, D.C.

“While other brokers are using the Internet to let investors trade faster and cheaper, FOLIOfn is a brokerage founded to enable investors to invest better, smarter and easier,” Wallman said. “We will operate at the intersection of technology and finance, providing our customers with innovative, leading edge solutions made possible only by the power of the Internet. We intend our products and services to become the model for personal investing in the 21st century.”

FOLIOfn, with over 100 employees, and FOLIOfn Investments, Inc., its wholly-owned brokerage subsidiary, is based in the Washington D.C. suburb of Vienna, Virginia in the heart of the Northern Virginia high technology corridor.

The company’s major financial backers include PSINet, one of the nation’s largest independent Internet service providers, and Mayfield, one of the country’s elite capital partnerships, as well as numerous other investors including Jefferson Partners of Toronto.

PSINet, headquartered in Herndon, Virginia, is an Internet Super Carrier offering global e-commerce infrastructure and a full suite of retail and wholesale Internet services through wholly-owned PSINet subsidiaries. Services are provided on PSINet-owned and operated fiber, satellite, web hosting and switching facilities providing direct access in more than 800 metropolitan areas in 27 countries on five continents. William L. Schrader, founder, chairman and CEO of PSINet, Inc., and PSINet vice president John Muleta serve on FOLIOfns board of directors.

Mayfield, founded in 1969, is a private venture capital partnership that provides entrepreneurs with the experience, resources, teamwork and vision required to turn new ideas and technologies into successful businesses. Mayfield has $1.5 billion of capital invested in more than 300 information technology and healthcare companies that today represent a total market value exceeding $100 billion. Mayfield general partners Allen Morgan and George Pavlov serve on FOLIOfns board of directors.

Jefferson Partners and its predecessors have been successful private equity investors since 1984 and over that time have helped over 50 entrepreneurs build their companies in the information technology and Internet sectors.

Other members of the FOLIOfn board of directors and senior executives come from the U.S. Treasury Department, First Union Bank, JP Morgan, MCI Worldcom, GTE, Deutsche Banc Alex. Brown, Bankers Trust Corp., Coopers & Lybrand and American Management Systems.

About FOLIOfn
FOLIOfn Inc., (www.foliofn.com), together with its wholly-owned brokerage subsidiary FOLIOfn Investments, Inc., is harnessing the power of the Internet to enable individual and smaller institutional investors to invest and trade better, smarter and easier. Founded by Steven M.H. Wallman, a former Commissioner of the U.S. Securities and Exchange Commission, FOLIOfn will offer an array of exciting Internet-based brokerage and financial services designed for better investing. FOLIOfn is built on core values including a determination to act with the highest possible integrity and openness and a commitment to investor education. FOLIO Investing, the first in the series of smart financial services from FOLIOfn, offers a whole new way to invest and trade. It combines the best qualities of mutual funds, traditional brokerage services and on-line trading. FOLIO Investing is offered through FOLIOfn Investments, Inc. FOLIOfn and its subsidiaries are based in Vienna, Virginia, in the heart of Northern Virginia high technology corridor.

FOLIOfn Introduces FOLIO Investing, A Revolutionary New Way for Individuals to Invest

Vienna, Virginia, March 2, 2000 — FOLIOfn, Inc. (www.foliofn.com) today announced a revolutionary new system that will change, for the better, the way people invest in the stock market. FOLIO Investing, the company’s first product, harnesses the power of the Internet so that individual investors can buy and sell entire stock portfolios with just a few mouse clicks, instead of having to pick individual stocks or mutual funds. more

With FOLIO Investing, investors choose their risk, industry or other personal investing preferences, then directly invest in whole portfolios that match those preferences. FOLIO Investing helps eliminate the unnecessary risk, cost and guesswork that is inherent in investing one stock at a time. For example, to invest in the Internet industry, rather than trying to pick individual winners, an investor could invest in the sector by buying an Internet Folio. Perhaps most importantly, FOLIO Investing turns traditional investing concepts on their head. Instead of trying to buy the pieces to create a desired investment portfolio, just buy the portfolio. FOLIO Investing takes advantage of the fact that investing in a portfolio of stocks, instead of just a handful of stocks can provide investors a lower level of risk for the same expected rate of return or the potential for a higher expected rate of return for the same level of risk.

Folios, containing up to 50 stocks each, provide diversification like that currently available through mutual funds. Folios can be easily tailored to investors’ financial goals and investing preferences, and FOLIOfn’s low flat fee lets investors decide how best to manage their accounts, without encouraging or discouraging trading. Using the proprietary FOLIO Investing system, investors can create, buy and trade Folios that meet short- and long-term financial goals regardless of how much they have to invest.

Todays launch marks FOLIOfn’s first public announcement of its service. The company expects to begin full scale commercial service in late April.

“This isn’t about getting people to trade more often, or to buy and sell stocks faster,” said FOLIOfn founder, chairman and CEO Steven M.H. Wallman. “This is about leveraging the full power of the Internet to help investors invest and trade better, smarter and more easily. We want to change the way investors think about investing.”

With more than ten thousand stocks and mutual funds to choose from, investing is more complex than it has ever been, and much more confusing than it should be. Using FOLIOfn’s proprietary system, investors easily create a portfolio comprised of individual stocks not by trying to decide which individual stocks to purchase (although they can do that too) but by determining their personal investing preferences and goals. Investors select from a list of “Ready-to-Go” Folios that reflect specific interests, market sectors or a particular investing philosophy, or they build personalized Folios one stock at a time or through various stock screeners.

“Experts agree that diversification, whether across the market or within an industry, is one of the foundations of successful and smart investing,” Wallman said. “But the simple ability just to hold a diversified portfolio has been available generally only through mutual funds, and buying a portfolio tailored to an individuals preferences has been available only to extremely wealthy investors. Until now.”

With FOLIO Investing, investors avoid the cost and complexity of buying stocks one at a time because they buy entire portfolios. But because FOLIOfn investors directly own the stocks in their Folios, they avoid the high fees and annual tax bill that can come with many mutual funds, and can even take advantage of easy tax planning ideas that can save large amounts of money. And unlike mutual fund investors, FOLIOfn investors always know exactly what’s in their portfolio, and can customize and tailor their Folios to reflect their preferences and values, while still maintaining the benefits of diversification.

FOLIOfn is committed to the idea of using the Internet to make cutting edge financial services and products that are better for investors and available to all at fair and reasonable prices.

“Most people have no idea how much they are paying their mutual fund in fees,” Wallman said, noting that average annual mutual fund expense ratio is about 1.23% of total assets. “An investor with $50,000 in mutual funds, pays an average of $615 per year or more than $50 per month in fees alone. On average, the vast majority of domestic equity mutual funds underperform the stock market.”

Selecting individual stocks can be even more expensive. Purchasing the number of stocks needed to build a diversified portfolio, and adding to those holdings on a monthly or even quarterly basis, would require a large number of transactions and cost hundreds or even thousands of dollars depending on whether you use an on-line or traditional broker. More important, it is very difficult for the average investor to build a diversified portfolio without the right tools.

FOLIO Investing allows investors to trade entire Folios buying and selling the 50 stocks each Folio can include up to twice a day, every day, all for one low flat fee. FOLIO Investing also allows for the purchase and sale of fractional shares, and for buying and selling in dollars or in shares, so investors can, on an ongoing basis, easily and affordably invest whatever amount they choose.

Wallman founded FOLIOfn after serving as a Commissioner of the U.S. Securities and Exchange Commission. According to Wallman, that experience led him to believe there really is a better and easier way to invest. That way is the rationale behind FOLIO Investing.

“Online brokers are spending hundreds of millions of dollars publicizing systems that make stock trading faster and cheaper, but don’t really make investing any better or easier,” Wallman said. “FOLIO Investing operates at the intersection of technology and finance, providing innovative solutions made possible only by the power of the Internet. The idea behind our company is to provide innovative financial services that take investing to the next level.”

About FOLIOfn
FOLIOfn Inc., (www.foliofn.com), together with its wholly-owned brokerage subsidiary FOLIOfn Investments, Inc., is harnessing the power of the Internet to enable individual and smaller institutional investors to invest and trade better, smarter and easier. Founded by Steven M.H. Wallman, a former Commissioner of the U.S. Securities and Exchange Commission, FOLIOfn will offer an array of exciting Internet-based brokerage and financial services designed for better investing. FOLIOfn is built on core values including a determination to act with the highest possible integrity and openness and a commitment to investor education. FOLIO Investing, the first in the series of smart financial services from FOLIOfn, offers a whole new way to invest and trade. It combines the best qualities of mutual funds, traditional brokerage services and on-line trading. FOLIO Investing is offered through FOLIOfn Investments, Inc. FOLIOfn and its subsidiaries are based in Vienna, Virginia, in the heart of Northern Virginia’s high technology corridor.

The company’s major financial backers include PSINet, one of the nation’s largest independent Internet service providers, and Mayfield, one of the country’s elite capital partnerships, as well as numerous other investors including Toronto-based Jefferson Partners.

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