Acquisition complements Folio's founding mission and gives RIAs a more streamlined way
to include SRI/ESG investment strategies in client portfolios.
McLEAN, VA and COLORADO SPRINGS, CO, Nov. 1, 2016 - 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.
Folio is theparent company of Folio Institutional, Folio Investing and VIA Folio. First Affirmative will empower RIAs with more robust investment strategies that integrate environmental, social, governance (ESG) factor analysis. First Affirmative will retain its name and business locations. Terms of the purchase agreement were not disclosed.
"Folio is dedicated to transforming the way people invest for the better. We have long provided financial advisors - and were the first brokerage platform to provide individual investors - with sector, social issue and security type filters to customize their portfolios and align their investments with their social values. In addition, we pioneered a Sharia-compliant multi-bank sweep program and have been an active proponent of SRI/ESG advisors and offerings like First Affirmative's," said Steven M.H. Wallman, FOLIOfn, Inc. founder and CEO. "We look forward to First Affirmative growing its ability to meet the needs of advisors, broker-dealers, asset managers and other firms who are seeking SRI/ESG expertise and services."
The acquisition benefits investors and those who serve them by providing access to:
· A wide array of sustainable, responsible and impact investing resources, such as Folio's investment filters and First Affirmative's proprietary investment strategies and shareholder advocacy.
· First Affirmative's investment manager-of-managers expertise, including its relationships with third-party money managers, mutual funds, ETFs, financial advisors and advisory firms who have deep SRI/ESG knowledge.
· Use of Folio's tax management tools that help manage and optimize tax results.
· Folio's integrated platform that includes custody, brokerage, model asset management, billing and client service solutions for a single, asset-based fee.
· Private investments in companies with specific sustainability or impact missions, as well as those providing jobs and creating opportunities more generally, that raise capital through Folio's online private capital network, VIA Folio.
· Planned expansion of the scope and content of The SRI Conference, the premier annual gathering of investors and investment professionals in the SRI/ESG space.
"First Affirmative has been working for more than 25 years to change the face of investing," said George Gay, CEO of First Affirmative Financial Network. "We see our new relationship with Folio as a logical and exciting step forward, and one that will elevate and transform the sustainable, responsible, impact investment industry. Investors will continue to have access to the latest technology, tools and competitive pricing. I am proud to lead the team of outstanding individuals that has built something as real, lasting and positively impactful as First Affirmative."
"Advisors who are increasingly focused on SRI/ESG investing are realizing opportunities for their clients, especially millennials and women," said Greg Vigrass, president of Folio Institutional. "Industry data tells us that investors want advisors to provide socially conscious investing choices with efficiency, innovation and enhanced user experience. The combination of Folio's and First Affirmative's offerings, client services and industry expertise makes this possible."
About FOLIOfn, Inc.
FOLIOfn, Inc. provides investment technology and other services to the financial services industry and through its wholly-owned subsidiary, Folio Investments, Inc. The firm has more than 19 patents covering an array of financial services and products and has been, and continues to be, a pioneer in a number of areas in the investing and wealth management fields.
Folio Investments, Inc. is a self-clearing FINRA broker-dealer and custodian. Folio Investments, Inc. operates under the brands Folio Investing® (online self-directed investing), Folio Institutional® (innovative advisor services), and VIA Folio® (online private securities distribution and custody). It provides services to some of the world's largest financial services firms - and some of the smallest.
About Folio Institutional
Folio Institutionalprovides an integrated brokerage and custodial platform featuring patented, state-of-the art trading, portfolio and client management tools. Folio Institutional supports institutions and more than 420 financial advisor firms nationwide that have billions of dollars in assets on the Folio platform.
About First Affirmative Financial Network
First Affirmative Financial Network is a registered investment advisor specializing in Sustainable, Responsible, Impact (SRI) investing. Since 1988, First Affirmative has been a trailblazer and leader in the responsible investment space. Based in Colorado, First Affirmative serves clients through a nationwide network of investment professionals who rely on the firm's deep expertise and broad knowledge of the nuances of a portfolio design process that is aimed at achieving the client's financial goals while positively impacting our world.
Chief Communications Officer
Copyright 2016 by FOLIOfn, Inc. Folio Investing, Folio Institutional, Folio Advisor, Folio Client, FOLIOfn, Folios, and VIA Folio are trademarks of FOLIOfn, Inc. All rights reserved. Securities products and brokerage and clearing services are offered by Folio Investments, Inc., a registered broker-dealer and member FINRA/SIPC. Investment advisory services are offered through FOLIO Research, LLC, an investment advisor registered with the Commonwealth of Virginia. Folio Investments, Inc. and FOLIO Research, LLC are separate, wholly owned subsidiaries of FOLIOfn, Inc.
Fact Sheet: FOLIOfn, Inc. and First Affirmative Financial Network
· FOLIOfn, Inc.: 1999
· First Affirmative Financial Network: 1988
· FOLIOfn, Inc.
o Steven M.H. Wallman, founder and CEO
o Greg Vigrass, EVP of FOLIOfn, Inc. and president of Folio Institutional
· First Affirmative Financial Network
o George Gay, CEO
o Steve Scheuth, President
· FOLIOfn, Inc.: McLean, VA
· First Affirmative Financial Network: Colorado Springs, CO
Assets Under Management
· FOLIOfn, Inc.: Supports institutions and more than 420 financial advisor firms nationwide that have billions of dollars in assets on the Folio platform
· First Affirmative Financial Network: Responsible for approximately $1 billion in client assets under management and administration (includes discretionary and non-discretionary)
Number of Clients
· Folio Institutional: More than 420 financial advisor firms and other institutions
· First Affirmative Financial Network: 2,500 investor households
FOLIOfn, Inc.'s SRI/ESG Track Record
· The company is one of the first custody and clearing firms to offer free, socially responsive filters on a web-based asset management platform.
· Folio customized its brokerage platform to accommodate Sharia/Halal-compliant investing, and created an FDIC-insured bank sweep program for this type of investing.
· In 2008, Folio added a filter to exclude companies blacklisted by Genocide Intervention Network.
· Folio's Model Manager Exchange offers third-party, values-based portfolio strategies that are potentially more cost effective than SRI/ESG mutual funds or separately managed accounts.