Building a viable business that lasts is not easy. There is no charge for the transfer to Folio. Folio has been a leader in online brokerage since its inception in 2000 and was created to build better investors through its enduring and proven investment philosophy of diversification, low cost, client customization, consistent investing and tax minimization. Clients can access their Motif accounts through May 20; the accounts will move to Folio Investing the next day. As you look for new ways to boost your bottom line, re-centering your business on planning can make a big difference. We’ve come a long way since we started this journey together and there is a lot for us to be proud of. So that Folio can setup your new account(S) we will provide them with your account information, including bank account information you have provided us. Its technology will live on, however, because Charles Schwab is … Last month, Motif, an innovative brokerage platform focused on thematic investing, told its clients it was closing up shop. All Rights Reserved. The other evening, I received some disconcerting news that Motif Investing is closing. “In many cases, these businesses were ‘built to sell’ or had models that were designed to aggregate eyeballs and attention, which would be used for future monetization. “Scale means everything now, so you have to be big to make a go of it.”, There’s also the “problem” of raising too much capital, according to Welsh: “Eventually, it does run out as you operate in the red for years and years.”. Motif is similar to the now-defunct platform. For years, Motif … “During periods like this, anything we can bring to a client that covers more than just performance data (aka ‘bad news’) helps clients understand where they are, what’s important and how the market news really impacts them,” he said. According to Fritz, there is “hope” for fintech firms focused on planning and on environmental, social and governance or impact investing. Folio Investing is taking over the accounts. Its ETF models, launched with Goldman Sachs, had about $264 million in assets. Notice: On April 17, 2020, Motif announced that it would closing down operations.Existing investors would see their portfolios transferred to Folio, another investment firm. (If you decide to leave Folio after the transfer, you will incur a transfer fee. “They’ll just recast the spotlight onto firms that are both innovative and have a solid business model that can weather downturns like this.”. For two decades, they have revolutionized the way people invest online.As a result, many of the solutions you are familiar with at Motif will now be available to you as a Folio customer, in addition to many other innovations and features designed to enhance your investing experience. Furthermore, its sophisticated tracking of individually created funds (motifs), allowed me to display results of my investing progress and decisions. Motif Investing serves customers in the United States. If you would like to access historical documents generated while your Motif account as open, please download them from the Motif site by the end of day, May 20, 2020, when the site will no longer be available.Q: Will my dividends be reinvested?A: As part of this conversion, Folio will setup all accounts for dividend reinvestment. Others, like Ezra Group CEO Craig Iskowitz, agree that “many closing announcements” are to come. The Company provides thematic investing solutions for individuals and financial advisors. With high costs, intense competition and fee compression, it’s “very hard to turn a profit in these more commoditized arenas,” the consultant explained. In order to facilitate the transfer of clearing services from Pershing to Kingdom, notice is hereby given that as of the close of business on May 22, 2020, Pershing will resign as your IRA custodian for your Traditional, Roth IRA, or IRA Rollover. The letter didn’t explain why the company was suddenly closing. Motif Investing allows investors to select a particular motif, or theme-based portfolio, which typically includes about 20 to 30 stocks or ETFs, for a fee of $9.95 per trade. At the time of conversion, Kingdom will then amend your account with the applicable IRA Custodial Agreement, which is appended to the Folio Customer Agreement. But now, the technology is easily replicable for cheap; and no one wants thousands of tiny accounts,” he added. You will be able to access tax records for activity in your Folio account online through Folio’s website. Long Only, Deep Value, Hedge Fund Manager. Get tips to ensure you connect with your client and their loved ones so wealth transfer doesn’t hurt your business. If you wish to liquidate and close your account instead of transferring it, you may incur a taxable event when selling your securities holdings.Q: Where do I get my tax forms?A: Pershing will issue you by mail a copy of your tax forms for activity in your Motif account to your address of record. Poll: 15 Classic Books on Investing and the Markets . Motif “was really a micro-player in the custodian world and relied on Folio anyway, so no real disruption there,” he explained, referring to the movement of accounts after it closes. More broadly, Motif’s closure and expected shutdown of more fintech players this year doesn’t “spell disaster for innovation,” Fritz explains. You will be able to access account statements and trade confirms online through Folio’s website. Founded in 2010, this fintech startup received backing from Goldman Sachs, JPMorgan, and US Bank. … Free unlimited access to ThinkAdvisor.com which provides advisors, like you, with comprehensive coverage of the products, services and trends necessary to guide your clients in making critical wealth, health and life decisions. The company notified users via email on April 17 in a message saying, “At … Motif Investing, a digital brokerage that provided thematic investing and automated advice, has closed its doors for good. hope” for fintech firms focused on planning and on environmental, social and governance or impact investing. First, I want to thank you for all your support in taking Motif to where it is today. A bummer for them, their clients and the fintech community in general. The portfolio management software company founded in 2012, which enabled retail investors and financial advisors to invest in thematic portfolios … Motif Investing Announces Plans To Shut Down In May April 23, 2020 • Christopher Robbins Motif Investing, an online broker pioneering a digital social and thematic investing service, has … If you have a margin account at Motif, it will be opened as a margin account at Folio as long as you meet certain requirements (e.g., it is not an IRA account). “This is the tip of the ‘tip of the iceberg’; I estimate that we’ll lose 20% of the firms in [Michael] Kitces’, What makes more closures of, specifically, low-cost. “This is the tip of the ‘tip of the iceberg’; I estimate that we’ll lose 20% of the firms in [Michael] Kitces’ fintech map by this time next year,” said Doug Fritz, founder and president of F2 Strategy. Copyright © 2020 ALM Media Properties, LLC. I won’t be surprised to see what his next great iteration is,” said April Rudin, president of The Rudin Group, a global marketing firm. By Dave Nadig on April 20, 2020 If you missed it in the mix of all the other news, Motif Investing announced this weekend that it was closing its doors. According to its March filing with the Securities and Exchange Commission, Motif had $18.2 million in assets from individual investors and $586.3 million from banks. And as the industry is shifting towards providing more planning services to clients, don’t get left behind! However, if you have not completed a transfer to another firm by May 12, 2020, your account will be transferred to the Folio Investing platform and you will be responsible for any Folio charges you incur there, including their monthly fees and fees to transfer to another firm. You can review the Folio Privacy Policy online. In connection with the move to Kingdom, Pershing has agreed (and this letter will serve as notice of the appointment) to appoint Kingdom as the successor custodian for your IRA. We're delighted you're here. As criminals get smarter you must take extra steps to protect both your clients and your firm. To preserve your Motif portfolio view, you will want to take a snapshot or download your motifs prior to the transfer date.In the meantime, you may continue to log into your account at www.motif.com. The company was founded nearly a decade ago and has focused on providing thematic investing solutions … Please see the Pricing and Sweep Disclosures below, or visit www.folioinvesting.com for more information on the services and fees at Folio.Q: Where can I obtain additional information about Folio Investing?A: Please visit www.folioinvesting.com.Q: How do the brokerage fees on Folio Investing compare with my Motif account?A: Folio Investing has discounted its leading Folio Unlimited pricing plan for Motif customers. That idea was to give individual … Your account will be automatically transferred for no fee or charge to you to Folio as noted above. Financial Advisers — Read on www.investmentnews.com/motif-investing-closes-191780 last week, Motif Investing, told its clients it was closing shop. The entire letter that I received some disconcerting news that Motif Investing announced it! The next level with FREE practice-management tips career and take your firm 's production the... 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