Fee Based at Jones..BOOYAH!

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Nov 17, 2005 10:50 am

Heard through the grapevine that sometime next year Jones will be rolling out a fee based platform.  What hypocrits!!!


Maybe it's NOT true as Jones has been so outspoken against fee based business over the years?  Either way, I'm getting back to work now....but when I heard the news I kind of smiled to myself and shook my head.  It will be extra doses of kool-aid to retrain all those brokers into using fee based business.  Then there will be even more of an incentive to leave.  Get paid 90% on fee based instead of the 40% Jones will pay. 


I still remember:  "We don't like it..as it's not in the best interest of our clients"  Whose clients Mr Miltenberger or Mr BAchmann, or Mr Hill, or Mr Weddle?  Whose clients?  How can they be your clients if you have never even met them or don't know they exist?


Again, can't confirm this...but it's what I heard.

Nov 17, 2005 1:27 pm

One would have to believe that a fee platform would have adverse effects on Jones rev sharing.  The larger tickets that go to single fund families in the quest for breakpoints, the longer than avg hold time due to A share pricing... These along with others give Jones great leverage to extract the maximum trubute from the great 8 fund families.  Could spell the end of the pref family structure Jones currently has.  And to the GP's that still produce, it might justify a real M/F research dept.


It might just be better for the clients...who ever they belong to.

Nov 17, 2005 2:38 pm

It's all about the math as you guys are so quick to remind us. New administration may bring new ideas...who knows.


By the way, Zackman, how do you have time for spreading rumors? And why should we believe your source(s)?

Nov 17, 2005 3:43 pm

That's interesting Zacko.  The other day I had a weird thing happened that I don't want to go into detail on however what it amounted to is this. 


A low life prick GP in my area just tried to get copy of my fee based paperwork via a 3rd party pretending to want to open an account with me. 


It didn't make sense at the time but now it does.  These Jones GPs are like cockroaches.  What a scum organization. 


7yrvet...I believe Zacko knows more about EDJ and what goes on inside that pit of a company that you will ever know.     

Nov 18, 2005 9:35 am

In the past, the information I have recieved has been reliable when it came from this individual.  In my "real life" I hardly ever even discuss Jones anymore as I have been gone for two years.  This individual brought it up to me out of the blue when we weren't even discussing Jones.


Please keep in mind that as a "lowly" IR or even LP--you will be amongst the last to hear of it--if indeed it is true. 


7yr, I can't even confirm it's true--but I believe it to be more than just a rumor based upon what I was told.  Those who know me know that I just don't make sh it up.  I could care less actually--but it does  show that Jones is losing more brokers than they figured based upon thier generic and antiquated way of doing business.  Why else do you think they increased payout on MAP to a whopping 40% from an already generous 35%?  Note the sarcasm as even B of A pays 50% on managed money. 

Nov 18, 2005 12:05 pm

I would agree with Zackos source. With new leadership in place there will be a lot more changes coming along. I know you don't care for him Zack, but Weddle has championed the IR for a long time. Look for more.

Nov 18, 2005 1:00 pm
7yrvet:

It's all about the math as you guys are so quick to remind us. New administration may bring new ideas...who knows.


By the way, Zackman, how do you have time for spreading rumors? And why should we believe your source(s)?



It's all about the math.  That's right.  It's all about the math for GP's.


If they have to do this to keep brokers from leaving, how does that jive with what they have said in the past about what is best for clients.

Nov 18, 2005 1:40 pm

Up to 26 million in fee based (incl C shares).  I do like it--but I still do like production as well. 


If Jones begins offerring fee based..then will this change their outlook on C shares?


I know at RJFS they are setting a 500k cap on C shares per HH. 

Nov 18, 2005 6:16 pm

Edward Jones  go back on something?  Say it ain't so....


If they do go to FEE BASED, it will only be because they are loosing too many experienced IR's.


Could it really only be about the "MONEY"?

Nov 18, 2005 8:25 pm

Enough discussion on this.  Just tell you the last fool in the cubes to turn off the lights at the end of the day. 

Nov 19, 2005 3:16 pm
Malcolm:

That's interesting Zacko.  The other day I had a weird thing happened that I don't want to go into detail on however what it amounted to is this. 


A low life prick GP in my area just tried to get copy of my fee based paperwork via a 3rd party pretending to want to open an account with me. 


It didn't make sense at the time but now it does.  These Jones GPs are like cockroaches.  What a scum organization. 


7yrvet...I believe Zacko knows more about EDJ and what goes on inside that pit of a company that you will ever know.     



By the way what happen to the Drones & Clones defending the GP'S, maybe they have finally figured out why the GP's just have them bend over again and again.............. Your description of GP's is right on............................

Nov 19, 2005 10:39 pm

I was always under the impression that the map program was fee-based...if not, could someone tell me exactly what map is?

Nov 20, 2005 9:13 am

Map is a stripped down version of a seperate acct manager program.

Nov 20, 2005 10:05 am

Zacko-


For comparison purposes,  could you please explain  what the fully clothed version looks like at RJ or other firms.


In your opinion, does Jones management filter money managers differently in their SMA program? Supposedly Goldman and Lord Abbett are soon to be included, does that have any signifcance? I have been told (please confirm) that Lord Abbett is the largest SMA provider currently.


Nov 20, 2005 6:15 pm
7yrvet:

Zacko-


For comparison purposes,  could you please explain  what the fully clothed version looks like at RJ or other firms.


In your opinion, does Jones management filter money managers differently in their SMA program? Supposedly Goldman and Lord Abbett are soon to be included, does that have any signifcance? I have been told (please confirm) that Lord Abbett is the largest SMA provider currently.




7yrvet,


Sounds like you might be looking around?.....Maybe you are a smarter than previously thought...........

Nov 21, 2005 11:01 am

Raymond James puts ALOT of time and effort into capital markets analysis before they even look at managers.   These assumptions are then matched with managers to help a build a portfolio.  They are very quick to fire managers and slow to hire them (which I like) and no one gets preferential treatment.  You'd have to visit Tampa to really see the nuts and bolts...but I was quite impressed.


They also have a mutual fund research department (Like an in house morningstar) where they actually research load & No-load funds alike.  These folks are CFA's researching funds and interviewing portfolio managers  They assemble portfolios with these funds (NO preferred funds and all bought at NL with 12-b1's going back to client) about a dozen funds per portfolio and have a wrap program attached.  There are several differnt portfolio's to choose from.  Performance has been very good with below average risk.  Best you got at Jones is the AMerican funds Triad...with a mutual funds marketing department to push preferreds.  BIG difference from what you have 7year. 

Nov 21, 2005 9:17 pm

Zippo,



When the 12b1 goes back to the client is it a taxable event?



BPD

Nov 22, 2005 12:03 am
BigPayDay:

Zippo,

When the 12b1 goes back to the client is it a taxable event?

BPD


Wow...only a Kool-aid drinker would ask such a stupid question about a fee-based platform........

Nov 22, 2005 10:48 am

No..it's a fee offset.  Good question though--many people ask it.

Nov 23, 2005 12:42 am

I think 7yrvet has left the building..............maybe soon leaving the Edward Jones House.......................


HAPPY THANKSGIVING.....