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FOLIOfn Provides Credit Unions With Customized Investment Baskets

More than 500 credit unions have signed on to FOLIOfn's Member Folio Investing program since it was first offered a year ago.

FOLIOfn provides the credit unions with marketing materials as well as assistance in co-branding a Web site for consumer use. Using online tools, credit union consumers have the option of choosing a pre-selected basket of securities or customizing their own portfolio. The Web site includes a questionnaire asking investors about their risk tolerance and investment goals so that it can recommend an asset allocation model for consumers to start with.

"We think that our product is something that can meet the needs of any investor, whether they're just starting out or have been in the market for some time," said Rich Hagen, vice president of FOLIOfn Investments. Hagen added that credit union members are an extremely loyal group that once satisfied with a product, will stick with it. Credit unions value the program because it is an additional way for them to keep assets in house, Hagen added.

"We know there are some self-directed investors, and if we didn't provide some online vehicle they'd be going elsewhere," said Tom Yee, vice president of investment services at Navy Federal Financial Group, a subsidiary of Navy Federal Credit Union.

Navy Federal Financial, established in April of 2000, has a total of 9,700 investment accounts and $96 million in assets under management. The company began offering the service about a year ago and at the end of May it had 1,729 memberships within the Member Folio program.