2002 Press Releases

More Than 500 Credit Unions Offering MEMBERS FOLIO Investing℠

06/02/2002

VIENNA, Virginia and MADISON, Wisconsin – 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.

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 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.

About Folio Investing

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