Once again, Jones is back on top. JD Power for the second straight time, #1 customer satisfaction. Kiplinger’s and Smart Money ranks Jones #1 Full service. Jone’s does what’s right for the customer and avoids selling annuities that pay brokers 7% like the bank. They avoid mutual fund fee based money like Raymond James, and don’t discriminate against avg net worth like Merrill. Ms, Ag, UBS, and Piper have become the bottom of the barrell. Good luck next year boys.
But what if there is a solid fee-based investment for a client? Should they walk away from another firm that can offer everything EDJ has, plus this, or invest with MF's and stocks that the FA (err, IR) will then have to let sit, or, in instances of money-motivated FAs (every firm has them, not saying you are one), churn the assets so they can make a paycheck.
I am not against EDJ. It's a fine firm for some and there is no perfect firm for all. However, there is something wrong when an FA has $90M in assets and is only doing $350k in production. He's frustrated because of the limited product offering. If he were at a firm that had some type of fee-based business, this FA would easily be doing $800k.
It all boils down to ethics. Yes, RJ screwed up, but much of that comes from "rogue" FAs that are self-serving and don't do what's in the clients best interest. This is a big reason VAs and other fee-based business options get a bad rap.
Just my .02.
I have a lot of respect for Jones brokers.... I couldn't "Cold Walk" and prospect as hard as those guys. I like how they can run newspaper ads and market themselves. But I don't think the overall business model works The Jones guys have to sell products constantly to make money and they pick and chose individual stocks & bonds.
I see nothing wrong with managed money. If the Jones guys actually had access to these types of services, I think they would be tough to compete with.
Do you really want the guy next door, (who managed a shoe store 3 years ago, but is now an "expert" in investments) picking and choosing stocks for you? Or do you want a team of five P.H.D's doing it?
iconsult100- We have SMA at Jones. The overall business model is over 9000 individual 1 broker offices. Do they exist ? Yes. Does the model work? Umm yes. Is it for everyone? no. What is this about individual stocks and bonds? Isn’t that what is in a SMA?
I don't want to bash Jones, but rankstocks is missing the point. Jones brokers FANATICALLY believe they are doing what is in the client's best interest. Jones brokers are good people (hence the rankings derived from great relationships). The self-righteousness, though, is way over the top and based on a false premise.
The real reason EDJ frowns on fee-based biz is because:
1) Their GROWTH agenda is based on hiring newbies (most of whom an ability to overcome objections and close sales is their primary strength--car sales, etc) who have no AUM. Brokers will starve and the firm will lose a lot of money if these newbies aren't selling 3pt bonds and 5pt funds. Can't let Vets have fee-based because most of those newbies are going into towns where existing branches exist and no client in their right mind would work with a broker at Jones who isn't allowed to play with all the live ammo....
2) As stated in the SEC settlement, 2/3 of the firms profit comes from revenue sharing. Uncle Milty's greatest contribution to the firm was his ability to keep Jones brokers focused on the "preferred funds", thereby allowing him to twist the knife a little harder for more payola. If Jones moves to fee-based, a significant portion of our assets would go to lower expense funds immune from Jones' normal shakedown, reducing the GP's/sub LP's 88% pool.
Let's debate these two points. I am open to a change of opinion on this, but no kool-aid allowed. I know of a GP in STL who in essence agrees that fee-based could make sense, but he won't risk rocking the boat.
Jones reps--please read the SEC settlement and take your heads out of the sand!
EIA, no comment on point #1 (not saying you are right) But your point #2 is sooo naive.. Do you know how much profit the firm would put to the bottom line with fee based? We would quickly give up revenue sharing! And so would very other firm that is of any size if their reps sold as much fee based as you may suggest. As for the 88% pool, well, you are a bit off there as well.
Inconsult100, just what did you do prior to this career?
This Jones Koolaid party is mighty dull. They obviously didn’t survey my clients…
Can't argue point 2 without addressing point 1...they go hand in hand. I agree that the firm could make more on fees than revenue sharing, but not under our "healthy growth" model.
Re 88%, as I recall from the SEC settlement, GP's keep 78%, Sub LP's get 10% and the 6000+ LP's get 12%...please correct if I am wrong on this because it has me bent out of shape.
[quote=rankstocks]Once again, Jones is back on top. JD Power for the second straight time, #1 customer satisfaction. Kiplinger's and Smart Money ranks Jones #1 Full service. Jone's does what's right for the customer and avoids selling annuities that pay brokers 7% like the bank. They avoid mutual fund fee based money like Raymond James, and don't discriminate against avg net worth like Merrill. Ms, Ag, UBS, and Piper have become the bottom of the barrell. Good luck next year boys.[/quote]
If this is true, then why didn't Edward Jones return the fees to their clients?
Why didn't they disclose to their client base what actually happen?
Just let one of your clients read the WSJ January 22nd article and see how high you are rated by JD Lower, KipLickers or Fart Money yes, Doug "3 Mil" Hill has to be your idol, pays 3 million to stay out of jail, also has to pay part of the 44 million paid out by the GPs what a great legacy ?
The honest and hard working IR's and BOA's that have had to cover-up and not disclose this to their clients, and You are soooooo proud of FRAUD and this activity..............?
Your arrogance only exceeds your dishonesty, but then again who do you work for? Doug "3 Mil" Hill Fraud expert
Could someone more astute than me please confirm a couple of
items: 1) If I’m understanding the recent EJ 10Q, 2/3 of the firm’s
total revenue comes from open end mutual fund sales. In addition, 1/3
of total firm revenues come from one mutual fund vendor (I would guess
American Funds). Is this correct? 2) Also, can someone confirm
for sure the above-mentioned 78/10/12 GP/SLP/LP splits? Can that be
I thought they had a few hundred GP’s and several thousand LP’s.
Thanks for any help.
Yeah...JD Power. Same company that surveyed boat owners and gave bayliner the highest customer satisfaction rates several years ago. It's because their customers didn't know any better.
If Jones customers are happy it is because of relationship they have with their advisor...oh excuse me "IR". It has very little to do with the firm. The GP's would have you believe otherwise though. Don't let them trick you into beleiving they have anything to do with it. Any firm can print statements and sell A share mutual funds.
You chose RJ over EDJ, and you'll have to live with the horrible reputation you and your ilk have developed. You lost your right to comment a year ago when your ethics turned south.
On the topic of revenue sharing, for all you deep-diggers...where can we get the real DOLLARS in revenue sharing Jones received for any given period of time?
[quote=noggin]iconsult100- We have SMA at Jones. The overall business model is over 9000 individual 1 broker offices. Do they exist ? Yes. Does the model work? Umm yes. Is it for everyone? no. What is this about individual stocks and bonds? Isn't that what is in a SMA? [/quote]
According to the recruiting calls I've been getting, your SMA program has a minimum of $500,000 and less than 10% of the brokers use them. There's no Mutual Fund Wrap program. I can use SMA's at 60k and mutual fund wrap at 10.
Yes, everything boils down to stocks and bonds, but the difference is who makes the decisions to buy and sell. That is why your model is broke. Not everyone with a series 7 should be picking and choosing individual securities.
Again, I would recruit an established Jones broker any day and both the broker & the clients would make a lot more money using the fee-based platforms.
Inconsult100, just what did you do prior to this career?
I was a graduate student. Joined a major firm in 2000 and been running a fee-based business ever since.
Re point 1, you are correct...if anything you are low on the Am Fds portion of the biz....
Point 2---Yup....a few hundred GP/Subordinated GP's, 6,000+ LP's. Sure makes that allocation a little tougher to swallow, doesn't it? But we are all "owners" sharing the wealth.....guess I should be thankful.
I realize I am confirming my original point, so maybe someone else can chime in.....
ICONSULT- Maybe I am oversimplifying things but the client and broker both make more money, wow… The overall purpose of a wrap program is to provide the broker with a steady monthly paycheck from what I have seen…
Thanks for the replies. I am considering EJ and would like the Forum’s
thoughts on another matter too. My visits with EJ have confirmed that
the company is on a very aggressive recruiting effort. My immediate
area already has 3 Jones offices within a 20 mile radius. Questions: 1)
Why is their focus on growth so intense? It seems their radar screen is
only adding more reps to the exclusion of other concerns (products,
tech, etc.). 2) Can someone in or out of Jones explain exactly how more
offices in a small area actually benefit both the new and existing reps?
Thanks for any/all help and I’m not looking for any emotional rants here.