Motif Investing, a San Mateo, CA-based platform for low-cost, ideas-based investing, raised $35m in funding.
Backers included JPMorgan Chase & Co., Wicklow Capital, and Balderton Capital and previous investors Goldman Sachs, Foundation Capital, Ignition Partners, and Norwest Venture Partners. Balderton, Wicklow and JPMorgan Chase will designate board observers.
The company intends to use the funds for international expansion as well as a roll out of new wealth management services for retail investors and advisors (see the release below).
Led by Hardeep Walia, CEO and co-founder, Motif Investing is an online broker that lets users invest in big ideas. Its social platform allows individuals and investment advisors to invest in stock and bond portfolios built around everyday ideas and broad economic trends and create brand-new motifs from scratch.
The company is a registered broker-dealer and a member of SIPC.
FinSMEs
08/05/2014
Motif Investing Partners With Financial Advisors to Introduce Flat-Fee Trading and Rebalancing Platform
With Launch of Horizon Models, the Company Also Extends Services for Self-Directed Retail Investors to Include Commission-Free Allocation Models and Rebalancing for the Horizon Motifs
SAN MATEO, CA–(Marketwired – May 8, 2014) – Motif Investing, a pioneer in low-cost, ideas-based investing, today announced that it is extending its platform to make available traditional wealth management services. Working closely with financial advisors, Motif Investing has created a transparent and cost-effective flat-fee offering specifically tailored to advisors’ needs. The Motif Advisor Platform will enable advisors to fully serve clients for a fraction of the cost of many current alternatives.
Motif Investing also introduced its Horizon motifs, providing self-directed retail investors with simple, commission-free allocation models and rebalancing. Additionally, the company disclosed that it has secured $35 million in funding to help further these services and expand internationally (see separate release for details).
“Motif arms advisors with remarkably powerful tools while dramatically reducing costs. We allow them to focus on what they do best — providing financial advice to clients,” said Motif Investing CEO, Hardeep Walia. “We also give self-directed retail investors a free offering that we believe is a significant improvement on allocation models currently available.”
An Advisor’s Best Friend
The Motif Advisor Platform, which was recently awarded “Best of Show” at the FinovateSpring conference, streamlines how advisors can build, monitor, and rebalance model portfolios. It also changes how advisors communicate with clients via user-friendly social technology. Advisors can use the platform to build their own model portfolios or use existing models in Motif Investing’s catalog including the new, commission-free Horizon motifs. In addition, Motif Investing will be launching a new family of smart beta motifs exclusively for advisors next month.
“Motif Investing has accomplished something special with its Advisor platform. There is nothing else like it,” said Ross Almlie, Investment Advisor at Jamieson Capital Advisors. “On the most basic level, it saves me a staggering amount of time, and it’s very simple to use. Then you dig in and look at the level of sophistication and the associated costs savings. I view this as a ‘must have’ service.”
Flat-fee pricing for the Motif Advisor Platform starts at just $20 per month per customer based on assets. For financial advisors who want more information about the Motif Advisor Platform and its pricing structure, or who would like to schedule a free consultation contact Motif Advisor representatives at 855-506-6843 or visit https://www.motifadvisor.com.
Horizon Models: Giving Self-directed Investors Freedom from Transaction Fees
Motif Investing’s new Horizon motifs are offered with no added advisory fees and no trading commissions. This is in contrast to “robo-advisors” which can be accompanied by management fees ranging from 0.15%-0.35% of total assets per year. While these management fees may initially sound small, they cause a significant drag on returns over the lifetime of an investor’s portfolio. By eliminating transaction fees, like commissions, Motif Investing can help investors reap the benefits of that cost savings in their returns.
The new Horizon motifs are also fully customizable asset allocation models, which is another differentiator from “robo-advisors” that allow investors to choose from one of several predefined, unalterable asset allocations models that can include overlap of asset classes. Motif customers who elect to customize their Horizon motifs to meet their unique investing needs can do so and pay the same total commission of $9.95, as they have for motifs they have already built or customized.
For self-directed retail investors or financial advisors who are interested in how Horizon models are constructed or who are looking to purchase Horizon models, please go to https://www.motifinvesting.com/horizon. A detailed whitepaper outlining Motif’s investment methodology for the Horizon Models can be found at https://www.motifinvesting.com/AssetAllocationWhitePaper-V10.pdf.
About Motif Investing
Motif Investing is an online broker that lets you invest in a world of big ideas. The company, based in Silicon Valley, is changing the face of online investing through an innovative, transparent social platform that allows individuals and investment advisors to invest in stock and bond portfolios built around everyday ideas and broad economic trends — and even create brand-new motifs from scratch. Motif Investing is a registered broker-dealer and a member of SIPC. The company’s investors include Balderton Capital, Foundation Capital, Goldman Sachs, Ignition Partners, JPMorgan Chase, Norwest Venture Partners, and Wicklow Capital. Board members include former SEC Chairman Arthur Levitt and former Wall Street executive Sallie Krawcheck. Learn more at https://www.motifinvesting.com.
Investing in securities involves risk, including the possible loss of principal; individual investments or a collection of individual stocks such as motifs which are concentrated in an idea or theme may face increased risk of price fluctuation over more diversified holdings due to adverse developments within a particular industry or sector.
© 2014 Motif Investing, Inc. Member FINRA/SIPC. All rights reserved.
The Exchange Traded Funds prospectus contains its investment objectives, risks, charges, expenses and other important information you should read and consider carefully prior to making an investment decision. Please review the current prospectus, available from the Prospectus link or by contacting Motif either by phone at 855-586-6843, email at [email protected], or in writing at Motif Investing, Inc., P.O. Box 3548, Rancho Cordova, CA 95741.
ETFs have unique features that you should be aware of, which can include distribution of any gains, risks related to securities within the portfolio, and tax consequences. The data quoted herein represents past performance and is not indicative of future results. The investment return and principal value of an investment will fluctuate so that your investment, when redeemed, may be worth more or less than their original value. Current performance may be lower or higher than the performance data provided. Please review the prospectus or other research tools provided on this site for more recent performance information.
Horizon motifs provide investors with a starting point to consider in allocating assets within their larger portfolio. However, Horizon motifs should not be considered a recommended strategy or comprehensive solution to your overall investing needs. There are many considerations when structuring your portfolio, such as cash needs, family-planning needs, tax and estate planning strategies. Motif does not provide any investment, tax, or legal advice.
$0.00 commission for trades (buys, sells, following rebalances) for the benchmark versions of the nine Motif-created Core Asset Allocation Horizon motifs. Commissions for any Horizon motifs that are customized in any way — adjust weighting, add or remove securities, choose not to following rebalance event, will include a $9.95 total commission per motif transaction or pay $4.95 per stock for individual stock/ETF transactions. Regular commissions apply for other Motif-created benchmark motifs and customer-created customized motifs ($9.95 total commission per motif transaction or $4.95 per stock for individual stock/ETF transactions). Other fees may apply. Motif reserves the right to review and amend the commission pricing structure at any time in the future and will notify you in writing of any intended changes. For details on fees and commissions for non-Horizon motifs, please click here.
The term Robo-Advisors refers to a category of online Investment Advisor platforms that directly connect investors with suites of analytical tools designed to create investment portfolios that can fit the needs of an investor based on information the investor provides. These platforms rely on algorithms that take the investor’s information and use an underlying asset allocation model to help determine the individual’s optimal portfolio based on the answers to the planning questions.
Motif Advisor is a service of Motif Investing, Inc., and makes available a platform designed to streamline how advisors build, monitor, and rebalance model portfolios around various asset classes so that they can provide the highest level of service to clients. Advisors can also share market insights and portfolio updates through user-friendly social functionality.