December 2000 — Gone are minimum investment requirements and expense ratio bills. Gone is frustration over lack of input in a fund’s selection. Gone is the ethereal sense of detachment from not actually owning the stocks. For a flat fee of $295 a year, consumers can assemble up to three baskets, or FOLIOs, each containing as many as 50 stocks Stocks can be selected by the consumer, or they can be chosen from a long list of specialty prefab portfolios. Once the basket is in hand, its purchaser can trade the stocks it contains, rebalance the FOLIO as often as desired, or trade it in its entirety. As long as trading is done during two daily time windows, there is no getting nickel and dimed every time a trade is made… As each purchase and sale is tracked as an individual tax lot, FOLIO picks the exact shares that minimize the tax bill.
November 26, 2000 — In addition to baskets of stocks, FOLIOfn lets you trade individual stocks commission-free It’s less than you’d likely spend on sales charges and management fees if you invested, say, $10,000 in a traditional mutual fund. If you trade individual stocks often, you’ll probably save even more, since most online brokers charge between $7 and $20 each time you buy or sell a stock.
Should You Build Your Own Index Portfolio?
November 3, 2000 — FOLIOfn, an Internet brokerage, caused an enormous stir five months ago when it rolled out its new concept: Prepackaged baskets of stocks, called Folios, that investors can buy and trade for a flat fee. The concept: Investors can save on fees, keep taxes low and customize their portfolios. The idea has caught fire.
Folios: The Next Wave In Investing?
November 2, 2000 — Imagine putting together a portfolio of 20 to 50 stocks and paying between $200 and $300 a year in brokerage fees for the privilege. Now imagine putting together two or three such portfolios and paying no additional charge.
Stock List Investing Just Got Easier
Mutual Funds Central.com
October 25, 2000 — Investors can now own personalized stock portfolios, or so-called synthetic funds, based on FORTUNE magazine’s America’s Most Admired Companies and The World’s Most Admired Companies lists. Just introduced by FOLIOfn, these baskets of stocks—or “Folios”—contain the Top 10 companies on FORTUNE’s list of America’s Most Admired Companies and the Top 25 companies on FORTUNE’s list of The World’s Most Admired Companies.
Personal Portfolios: A Rapidly Growing Alternative to Mutual Funds and Stock Picking
Tower Group Report
October 2000 — …by combining model portfolios with advice, trade execution, and favorable fee schedules, the personal portfolio firms are appealing to several segments of the individual investing community: disenchanted mutual fund investors, beaten-up stock pickers, frustrated capital gains tax payers, cost-conscious index fund investors, technology-savvy Internet investors, and others. Because personal portfolios have properties that mitigate at least some of the negative contributors to these segments, they are likely to gain traction very quickly.
Build Your Own Mutual Fund
Bloomberg Personal Finance
October 2000 — Today, with one click of your mouse, you can buy and sell fully diversified portfolios of hundreds of stocks… That’s simplicity.
Heroes: 10 Unsung Champions of E-finance
October 2000 — Wallman is an innovator. At the Securities and Exchange Commission, he was an early proponent of decimalization… a soon to be initiated move that will save investors billions. Now he’s utilized the technology of the Web to shake up the mutual fund industry. At FOLIOfn, individuals can create and modify their own personalized portfolios of up to 50 stocks for a flat fee of $295 a year. Compared with funds, that’s a more flexible (and potentially cheaper) way to diversify… Says Wallman: “We want people to rethink the way they invest.”
FOLIOfn Touts a Better Way of Investing
September 25, 2000 — In a time when oil prices are souring, the euro is weakening and the stock market continues its volatile behavior, many investors might be looking for a different way to invest. "Steve Wallman, founder, chairman and chief executive officer of FOLIOfn says his company offers that way: a customized basket of stocks that an investor can own and control without a huge cost.
Doing Without Mutual Fund Managers: New Internet Firms Are Causing Ripples in the Industry with Offers of Do-it-Yourself Portfolios
September 24, 2000 — So, are you ready to be your own fund manager? FOLIOfn makes it easy. It created 80 prepackaged Folios, which look like mutual funds. But unlike funds, FOLIOfn has no expenses, and there is no portfolio manager running the fund or making the capital gains tax decisions for you.
FOLIO Investing Puts Buyer in Driver’s Seat
Detroit News/Free Press
September 17, 2000 — Another advantage over mutual funds: The consumer manages the income-tax impact by controlling the buy and sell decisions.
Do-it-Yourself Mutual Funds
September 13, 2000 — FOLIOfn… is the first firm to offer custom baskets of stocks that, essentially, replace funds. “Unlike a traditional fund—where capital gains generated by the manager’s trades become your annual headache—you control the Folio’s tax bill. You can sell losers, hold winners, and manage your money for maximum tax efficiency.”
Custom-made Mutual Funds
Best of the Web
September 11, 2000 —"…Say you’re a disciplined saver who has always invested $500 or $1,000 a month in diversified mutual funds. For $295 a year, FOLIOfn will spread your monthly contribution over three "Folios" containing up to 50 stocks each. That’s less than you pay annually to keep $25,000 in a typical managed no-load fund. You can create these Folios from scratch, or customize one of 75 templates on the site, each designed to match a certain style or sector, for example, large cap, aggressive growth, biotechnology. And if one of the stocks tank, you can do a little tax swapping—sell that stock for a tax loss and replace it with an equivalent one.
Now planners can pick baskets of stocks
September 11, 2000 — FOLIOfn waded into the retail market three months ago and now has its eye on another pond—the institutional market.
A Closer Look at Build-Your-Own-Fund Web Sites
September 2, 2000 — [FOLIO Investing is] an intriguing idea and one that ties in nicely with the popularity of exchange-traded index funds… The stock baskets you build with FOLIOfn are a little like index shares. But…there’s a lot of flexibility in how you customize them.
Do-it-Yourself Mutual Funds
August 28, 2000 — Low fees are only part of the advantage… When you buy one of these Folios, the underlying stocks are never traded unless you [make] the trade yourself. That gives the investors both control over their investments and control over their taxes.
Web Trading for Every Budget
August 27, 2000 — With each Folio, you can screen out (or in) and stock you choose. “If you want to sell, you can. You can weed our losers, or balance losers with winners for tax purposes. That flexibility is among the major advantages Foliofn has over mutual funds, where you have no control over the tax consequences of the manager’s buying and selling.”
A Tisket, A Tasket: New Sites Let You Put Together Your Own Baskets of Stocks
September 21, 2000 —One of the most intriguing features of Foliofn is the ability to rebalance your portfolio should market moves throw it out of whack… One FOLIOfn feature we’d like to see catch on is the ability to pay… by credit card, rather than having the fees deducted from your investment account.
Build a Portfolio on the Cheap
The Philadelphia Inquirer
August 15, 2000 — A new online service even small investors diversify their holdings for less than a broker would charge. And there are no account minimums.
Online Funds, Built to Order
The New York Times
August 13, 2000 — “There’s a lot of potential in the idea,” said John Rekenthaler, director of research at Morningstar, Inc. “Diversification with more customization, more ability to control one’s tax bill and potentially lower costs—that’s an attractive combination.”
FOLIOfn Envisions a Revolution
San Jose Mercury News
August 12, 2000 — Once considered a farsighted SEC commissioner, Steve Wallman now has launched an online brokerage that even competitors say could spark a ‘revolution’ in how investors buy and sell stocks and mutual funds.
FOLIOfn On Fire: Firm Makes Hot List
Washington Business Journal
August 11–17, 2000 — If FOLIOfn gets any hotter, it’s going to burst into flames.
Basket Weaver: Former regulator’s Web-based product could threaten the fund industry
August 7, 2000 — Move over, Charles Merrill, Charles Schwab, Edward Leffler. Make way for Steven Wallman, who at age 46 could join you in the annals of mass-market financial ground-breaking.
FOLIOfn Lets You Customize Your Own Portfolio
August, 2000 — You’ve probably heard about FOLIOfn, a company that lets you invest regularly in a customized portfolio for a low cost. In addition, it makes it easy for you to rebalance your portfolio. “… [I]f you’re a regular stock investor and you’d like to dollar-cost average into stocks of your own choosing, it is probably a good deal.”
August 2000 — As the tough-talking, reform-bent Commissioner of the SEC, Steven Wallman gave speech after speech advising Americans to study up before making their investment picks.
August 2000 — When Wallman says “We’ve combined the diversification benefits of mutual funds with the customized service of a brokerage to rethink how you invest,” he’s not kidding.
Fund’s New Rival: Web Sites for Trading
July 30, 2000 — … [T]he FOLIOfn model has definite appeal for individual investors, many observers say.
Following the Money: Financial Services and the Net
July 26, 2000 — FOLIO Investing is the kind of product innovation that investment banks and other firms have been developing for years for institutional investors, but which historically haven’t been available for individuals.
One on one with Steven M.H. Wallman
July 24, 2000 — Steven M.H. Wallman spent several years as a Commissioner at the Securities and Exchange Commission wondering if there was a better way for people to invest in the stock market. Every time he delivered a speech on investing wisely, he’d go through the typical laundry list of advice: Read SEC filings, evaluate the share price, etc., before you buy any stocks.
July 2000 — I recently stumbled across a Web-based financial innovation that I think really is potentially revolutionary … You can think of Folios as a sort of mutual-fund alternative for the new economy.
American Century Ventures Takes Stake In FOLIOfn
Dow Jones News Service
July 11, 2000 — American Century Ventures, the investment arm of American Century Investments (X.ACC), has bought an undisclosed stake in online financial services company FOLIOfn.
The Best of Both Worlds?
June 12, 2000 — When Steve Wallman surveyed individual investors’ options from his seat on the Securities & Exchange Commission in the mid-1990’s, he didn’t like what he saw … So when Wallman left the SEC in 1997, he set out to create an investment vehicle that combines the diversification of funds with the advantages of individual stocks. The result is FOLIOfn, his Vienna (Va.) online brokerage.
Tax Smart Investing—The Taming of the Code
June 12, 2000 — Then there’s FOLIOfn.com, an intriguing new service launched in May by former SEC commissioner Steven Wallman. For a flat $295 a year investors can maintain three ‘Folios’ with up to 50 stocks in each. You can build our own special portfolio or pick from dozens of prepackaged ones designed to mimic a stock index or a style (say large cap, or value), a sector or a certain level of risk.
Folios: A new way to invest — Online brokerage offerings are ‘intriguing’ fund experts say
June 2, 2000 — For those disenchanted with mutual funds—their cost, restrictions on when they can be bought and sold, once-a-day pricing or investors’ inability to control the tax bite they impose—there’s a new choice. FOLIOfn, a new online brokerage, seeks to give investors the advantages of stocks with the diversification of mutual funds.
Another way to sidestep mutual funds
May 31, 2000 — For the annual fee, you get unlimited trading in three portfolios of up to 50 stocks each, with automatic reinvestment of dividends. Because FOLIOfn, a registered broker/dealer, makes the trades itself, portfolios can be assembled using fractional shares with regular monthly or quarterly investments.
Feel the need to pick your portfolio? Investors can try their hand as fund manager at affordable prices
May 26, 2000 — [L]ike many things reserved for the very rich, having your own diversified stock portfolio had certain advantages … And thanks to the Internet, owning a portfolio of individual stocks isn’t reserved for the very rich any more … One interesting recent example is FOLIOfn (www.FOLIOfn.com), an Internet site headed by Steve Wallman, a former commissioner at the Securities and Exchange Commission.
Reinventing the return: PSINet chief on stock trading software: “I couldn’t stand it; I had to invest!”
Washington Business Journal
May 26—June 1, 2000 — Steve Wallman is a man on a mission. A soft-spoken former commissioner at the Securities and Exchange Commission wants to do no less than fundamentally tear apart traditional investing practices. Wallman’s company, FOLIOfn—the fn represents financial innovation—has created a completely new way to invest in stocks, and it has the potential to forever alter the global investment landscape.
Exchange-Traded Funds are Only the Beginning
May 19, 2000 — Lurking on the horizon are radical, Internet-based offerings that take the advantages for which ETFs were created—low cost, tax awareness, and liquidity—several steps further. Witness dot-com start up FOLIOfn, which sells the ability to construct, maintain, and monitor a personalized mutual fund (including commissions on all trades and the ability to make tax-related trades on command) at an all-in annual price of $295.
The Unmutual Fund: An Iconoclast Says He Has a Better Idea for Individuals
The New York Times
May 18, 2000 — Mr. Wallman says he has found a better and, in many cases, cheaper way for investors to create their own, customized baskets of stocks, which he calls Folios, and two months ago he started selling them over the Internet.
25 Hot New Companies
Fortune Small Business
May 2000 — Who better than a former SEC commissioner to show you how to customize your own mutual fund? Steven Wallman, who spent three years at the SEC spearheading the introduction of online trading, has started an online service called FOLIOfn. The service lets investors marry the diversification benefits of a mutual fund with the extra oomph of investors’ own stock picks … Backed with more than $75 million the company, based in Vienna, Va., “is definitely a David versus Goliath play” in taking on the mutual fund industry, admits Chairman and CEO Wallman, age 46. Wallman has the vision thing (“We want to change the investing world,” he says) and several additional online products in the works. Move over, Mr. Schwab.
The Online Finance 40—Steven Wallman, Chairman, FOLIOfn
May 2000 — The ubiquity and easy access of the Internet play right into the hands of Steven Wallman, a former securities industry regulator whose latest venture, FOLIOfn, could give the mutual fund industry a run for its money. Says he, “I want to encourage things that help democratize financial services.”
Buying stock a little bit at a time
May 2000 — …FOLIOfn offers something different. For $295 a year you get access to unlimited trades…in what the company calls ‘Folios’ or preset baskets of as many as 50 stocks assembled to represent a particular industry, index or risk tolerance… The idea is innovative and Folios could provide easy diversification…
Kiplinger’s Personal Finance
May 2000 — This Spring you’ll have access to a whole new way of buying stocks, which could be as revolutionary as former Vanguard chief John Bogle’s introduction of index funds 25 years ago. FOLIOfn, a new online company at www.FOLIOfn.com, will give investors the benefits of individual stock ownership with the instant diversification of mutual funds.
March 30, 2000 — FOLIOfn customers will be able to build their own customized portfolios or invest in any of about 75 created by FOLIOfn, which contain 20-50 stocks each. Some replicate the stodgy Dow Jones Industrial Average, while others buy Internet stocks or environmentally friendly companies. Investors will be able to customize these preset baskets of securities at any time.
Nothing itsy-bitsy about stock teenies
Op-Ed by Steven M.H. Wallman, USA Today
March 29, 2000 — Investors lose hundreds of millions of dollars a year to a centuries-old Wall Street practice: trading stock in fractions as opposed to decimals. This may seem like a small thing—a penny here and a penny there—but it adds up rapidly, and it comes directly from investors pockets.
Tired of trying to time the market? Founder of FOLIOfn touts a new way of investing
March 24, 2000 — Don’t want to pick your own stocks? Annoyed with mutual fund fees? Tired of trying to “time the market?” Steve Wallman, founder, chairman and CEO of FOLIOfn says he’s got a new spin on investing, a customized basket of stocks that an investor can own and control without a huge cost.
How to Pick a Discount Broker
The Motley Fool’s Ask FoolU
March 22, 2000 — One brokerage that is offering something slightly different is FOLIOfn. Hard to explain in this small a space, but worth a look.
March 20, 2000 — Technology is also helping brokers pioneer creative ways to trade. Former SEC Commissioner Steven M.H. Wallman is launching a brokerage, FOLIOfn, that lets investors buy and sell packages of stocks—a ‘Folio’ of, say, 28 Internet stocks—for one fee.
Investing Without the Frenzy
March 10, 2000 — A skeptic might fairly describe FOLIOfn, a new financial services company, as the perfect investment tool for Puritans. The company is setting itself apart by systematically stripping out some of the bells and whistles that have made day-trading so popular. The company is designed around the premise of investing in portfolios of companies, not individual stocks.
Who Wants to Manage a Fund?
The Industry Standard
March 6, 2000 — Steven Wallman wants to do to mutual fund managers what online trading did to stockbrokers: Push them to the sidelines. Wallman, a former commissioner for the Securities and Exchange Commission, has taken the wraps off FOLIOfn, the secret—and oddly named—financial-services startup he founded in 1998. The venture has lined up a product that aims to tip over the mutual fund industry’s apple cart: FOLIOInvesting, ready in spring, will let people create and manage their mutual funds online for the first time … FOLIOfn is taking an entirely new approach by charging a yearly subscription fee as low as $250 for an unlimited number of trades. Mutual fund managers find those low fees laughable. “They’re crazy,” says David Kugler, CEO of the Monument Funds Group. “I don’t understand how they’ll make money”… Wallman insists that not having to pay costly portfolio managers will help his bottom line, and that the electronic platform saves costs. “Their business model requires higher fees,” he says. “Ours doesn’t.”
Ex-SEC Whiz to Launch Online Service With a Twist
Wall Street Journal
March 2, 2000 — A former commissioner of the Securities and Exchange Commission who once was at the forefront of technological change at the agency is making a leap of his own into the New Economy. Steven M.H. Wallman is set to launch a securities firm, FOLIOfn, Inc., that he says will offer an innovative online service allowing customers to invest in groups of stocks in weights that can be preset, or customized according to the investors’ preferences. The new company has more than $75 million in start-up capital from investors led by PSINet Inc., an Internet service provider in Herndon, Va., and Mayfield in Menlo Park, Calif… The service offers the kind of diversification that generally requires holding a dozen or more individual stocks. But unlike a mutual fund that holds a portfolio of stocks chosen by a professional manager, the FOLIOfn portfolios can be adjusted to allow for tax-loss selling, overall risk, or other factors. It would allow investors to skip all tobacco stocks, for example.
Managing your own mutual fund
March 2, 2000 — A new Web site that launched Thursday virtually allows investors to make and manage their own mutual funds. While full-scale commercial service won’t be available until late April, visitors to FOLIOfn.com can view a demo of the operation.
FOLIOfn Launches Net-Based Financial Services
March 2, 2000 — A new company with a different-looking name says it will offer “innovative online financial products and services to benefit individual (and smaller institutional) investors.” FOLIOfn launched its first Net-based offering and announced plans to develop other services at a news conference in New York City.
March 2, 2000 — FOLIOfn, Inc. launched with plans to develop an array of Internet-based financial services for individual and smaller institutional investors. The company unveiled its first offering, FOLIOInvesting, a tool that allows investors to buy and sell entire stock portfolios, known as Folios. Investors choose their risk or other personal investing preferences, then directly invest in portfolios that match those preferences. Founder and chairman Steven Wallman is a former Commissioner of the SEC. Backers include PSINet, Mayfield and Jefferson Partners.