Jones new platform

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Oct 9, 2007 5:05 pm

THIS TOPIC IS NOT FOR JONES BASHING PLEASE! I JUST WANT TO KNOW IF ANYONE KNOWS ANYTHING NEW. WHAT I HAVE HEARD IS BY 2008 IT WILL BE AN "ETF/MFUND WRAP" OF 75-100 BPS. I LOVE THE ETF PART, BECAUSE THEIR TAX EFFICIENCY IS UNDERUTILIZED AT JONES. I ALSO LOVE THAT WE'LL HAVE ANOTHER OPTION, TO PICK BEST OF THE BEST "LOAD-WAIVED" A-SHARES, OR WHATEVER THEY DECIDE ON SHARECLASS.  I ALSO HEARD THAT THE PERSON HIRED TO OVERSEE IT ALSO DID THIS AT A.G. EDWARDS, BUT BY BEING LATE TO THE PARTY THEY HOPE TO AVOID OTHERS' MISTAKES. TIME WILL TELL..........ANY OTHER SCOOP?

Oct 9, 2007 5:29 pm

Yeah I got the scoop,


Weddle has been dangling the carrot for 1 1/2 years about a fee based program...I do know that they will not allow you to change any of your current clients who own revenue sharing products into the "NEW" fee based platform.  It will only be available for new money. 
 
I'm glad to see they are coming to the party...albeit 12 years too late...Of course Jones is going to tell you it's going to be better, more ethical, and better for the client than any other brokerage firm out there. 
 
You will NEVER have control of the pricing model!  I also think that if they are saying 2008, you can look for it in 2009, 2010.
Oct 9, 2007 9:34 pm

yes, i agree that normally I would not believe the 2008 timeframe--but my info is that the urgency is there in this case. No, it will not be perfect, and if it is really bad then some folks will leave. Possibly they will keep it so "affordable" with their long-term philosophy that few FAs will use it! After all, need to make a buck (and a trip). However, it's also possible that they can finally get more revenue (the ongoing fees) without increasing revenue sharing. And it would be nice if 2/3's of firm revenue was not from one vendor! Diversify!

Oct 10, 2007 6:58 am

Unfortunately, you have drank the kool-aid.  You don't realize how long it takes to implement something as significant as a whole new platform.  My guess is they will try and make some kind of announcement to the troops at the Summer Regionals 2008 and then they will implement the platform sometime in 2009,2010. 

 
You have to remember Jones is in the process of losing 100 FA's a month to defection...100 FA's a month to non-production.  They are doing everything they can to make you believe they will be competitive with the rest of the industry when it comes to fee-based.  Unfortunately, I don't see them implementing anything significant that will allow advisors the freedom to choose what's best for the client.  Jones chooses what's best for the client and that's it.  They will not allow flexibility in pricing, they will not allow you to transfer your book of A-shares to fee based, they will not allow you to mess with the mothership.
Oct 10, 2007 9:41 am

I feel fairly open minded--I sip the koolaid! However, my understanding is that as a % of total FAs, ALL FIRMS lose reps and ALL FIRMS keep adding more. It's not a JONES thing.  Also, I think Jones is correct that it is not fair to switch clients who already paid a load--however, I hope they treat it like they now treat other switches (they allow loaded funds to switch to a loaded annuity after 4 years generally). As far as pricing, lack of flexibility is a tradeoff I can live with to not be in a branch setting. I AGREE ON THIS: if they do not allow the FA to choose with some significant freedom which ETFs/Funds are wrapped, then I will be angry. I still predict this will be in play in 2008, because Weddle announced 3 months ago that the vendor finalists were being interviewed (apparently Jones is outsourcing this technology, which could speed things along).

Oct 10, 2007 12:01 pm

Just a thought--


They told us in 2000 that we were going to get email.  I think they implemented that strategy in 2006.
 
John Bachman told me from his mouth in 2003, "If you plan on building a fee-based business, you shouldn't do it at Edward Jones." 
 
As far as attrition, all brokerage firms experience this, you are right...the problem is EDJ has a model that is perfect for poaching.  Experienced FA's get tired of starting at ZERO every month and they are tired of getting paid 40% of .25 bps on trails.  They start searching for other solutions. 
 
I will reiterate, Jones is a great place to start...I went to a lot of wonderful countries and they allowed me to build a great business without spending a whole lot of out of pocket.   They just tied my hands when it came to servicing my clients who wanted a fee based platform.
 
I would assume that this "interview" process that you are talking about is a stalling tactic. 
I'm glad you said, "sipping."  That koolaid tastes real good when you are going on trips and going to regionals. 
 
 
Oct 10, 2007 1:41 pm

Again, in seriousness, I believe it was "announced" at the 07 regional meetings, and a Jones person I talked to recently hasn't heard anything lately. It's too bad if advisors can't move existing assets into it, because what about those Putnam and Hartford funds still laying around that people finally want to unload.

 
Anxiously awaiting what Jones decides is "right".
Oct 10, 2007 2:32 pm

Whatever they do, it will be to the benefit of the GP first. Their contention that those that own A shares can't move into fee based only underscores the dilemna that they have regarding back door revenue that slips through the fingers of the advisors to the waiting arms of the owners. You have to recognize that almost 40% of the revenues split by the partners is at risk.

 
What about converting those A shares to institutional shares? American does it all the time in non-deferred accounts. The doublespeak is rampant within Jones. Always was and probably always will be. Sorry to pop the bubble newnew..
Oct 10, 2007 4:23 pm

I wouldn't believe the rhetoric on not allowing A share movement.  Remember this is a firm of hypocrisy.  Say one thing and do another.  They're not going to tell the vets they can't move the money to fee base, not a chance.  The money will be moving out of A shares faster than the tickets can be printed.  I don't blame the brokers, they've been busting their arses for the f'in gp's for to long...go Spaceman go...move the money and enjoy the fruits of YOUR labor.

Oct 10, 2007 4:45 pm

My favorite example of the rhetoric from the GP's....There is only one profit center.

 
Yeah right. If they could read the flippin 10K, they would realize how stupid they appear to those that actually use their brain on a regular basis.
Oct 12, 2007 9:41 am

Just like the German footsoldiers in WWII.....

Oct 12, 2007 9:52 am

I don't know what is up with this forum but I posted a very clean--thoughtful post yesterday on here and it was there several hours and then it was gone.  If the purpose of the forum is to answer questions that people ask and they are very good clean answers--then they should not be taken off the forum.  Nuff said!

Oct 12, 2007 4:29 pm

I would chalk that up to a mistake.  I don't recall your post, so I can't say for sure, but I think it's apparent by the large gap of missing posts that the admin(s) here are still figuring out how to run the new software.

Oct 12, 2007 4:30 pm
Roadhard:

I don't know what is up with this forum but I posted a very clean--thoughtful post yesterday on here and it was there several hours and then it was gone.  If the purpose of the forum is to answer questions that people ask and they are very good clean answers--then they should not be taken off the forum.  Nuff said!

 
Me too.  They needed to throw a couple of knotheads off of the forum, and that would have fixed 99% of the problems.  Instead they keep messing with everything making this forum next to useless.  If the subscription wasn't free, I would cancel my RR subscription in protest to the awful job they have done with this forum.
Oct 12, 2007 10:26 pm
Indyone:

I would chalk that up to a mistake.  I don't recall your post, so I can't say for sure, but I think it's apparent by the large gap of missing posts that the admin(s) here are still figuring out how to run the new software.



I saw it.  OldLady even responded to it.  Now it seems to be gone.

Maybe Bill Good refused to advertise in RegRep.  I think he used to write a column for one of their competitors.

If I'm right, then this is probably censorship, not an accident.

Admin...have you anything to say in your defense?

Oct 15, 2007 7:27 pm

I don't understand the argument about the GP's losing revenue sharing when a fund moves to an advisory fee account. They were crediting .00054%/year to P&L's when I was there, why wouldn't they want to replace that with .6%/year (60% of 1%)?


As little as I like to give Jones the benefit of the doubt, I actually think disallowing that would be more a function of them being holier than thou and thinking the advisor shouldn't have any choice in charging the clients for investments they already bought (of course again missing the point that the client should be buying advice, not products).


CIB


Oct 16, 2007 9:28 pm

ageed. seems that fee based would be a financial boon to jones like it is everywhere else---I do know that they have compliance concerns. why? because of the structure: no Br Mgrs, so need more control.

Oct 17, 2007 9:40 am

I guess even the new platform promises can't keep them all.  This region just lost another Segment 5 broker (that's $40 k rolling 4 month average) For those of you in Rio Linda that's about $500k per year. Rumor has it that he was told to stop prospecting out of state with his buds who were retiring from Exxon Mobil.  It wasn't fair that he was taking business from those FA's in the Houston area!! So, he told the GPs to stuff it and took his business and his BOA elsewhere. I believe he went to the new Wachovia and was offered a single broker office.  So I guess it's not just those who can't make it in the business who leave Jones!!

Oct 17, 2007 10:09 am

There are so many stories like the Exxon Mobil guy.  I just heard about another $450,000 producer leaving the Seattle area.  I believe they are losing about 190/month.   Of those it's about 50 a month that are between $250,000-$1000000 producers.

Oct 17, 2007 12:01 pm

YOu guys all lie...Jones doesn't lose good brokers.  They only lose losers and non producers and people who get drunk on the trips and and and...welll you get it.  Jones is the greatest company in the whole network marketing world.