Edward Jones Investments Explained

Edward D. Jones & Co., L.P.
Type:Private
Trade Name:Edward Jones Investments
Founder:Edward D. Jones
Location:St Louis, Missouri, United States
Num Employees:52,000[1]
Industry:Investment services
Revenue:US$$12.3 billion (2022)[2]
Profit:US$1.404 billion (2022)[3]
Aum:US$1.8 trillion (Q2 2023)[4]
Num Employees Year:2022
Parent:The Jones Financial Companies
Homepage:www.edwardjones.com

Edward D. Jones & Co., L.P., (d.b.a. Edward Jones Investments), simplified as Edward Jones,[5] is a financial services firm headquartered in St. Louis, Missouri, United States.

Background

Edward Jones serves investment clients in the U.S. and Canada, through its branch network of more than 15,000 locations[6] and 19,000 financial advisors.[7] The company currently has relationships with nearly 8 million clients and $1.8 trillion in assets under management worldwide. The firm focuses solely on individual investors and business owners.

The company is a subsidiary[8] of The Jones Financial Companies, L.L.L.P., a limited liability limited partnership owned only by its employees and retired employees and is not publicly traded.[9] [10] Edward Jones appointed Penny Pennington as managing partner, effective January 2019, making her the firm's sixth managing partner and the only woman to lead a major U.S. brokerage firm.[11]

History

Edward Jones was founded by Edward D. Jones in St. Louis, Missouri in 1922.[5] (A different Edward D. Jones was a co-founder of Dow Jones.[12]) Edward Jones' son Edward D. "Ted" Jones was responsible for the creation of the individual branch network, which has spread across rural communities, suburbs and metro cities throughout the US and Canada. The first single broker office was opened by Ted, and staffed by Zeke McIntyre, in Mexico, Missouri.[13] Ted opened another branch office in Pueblo, Colorado, with his brother-in-law Bill Lloyd as manager of the multi-broker office. When Edward D. Jones Sr., found the teletypewriter line bill, he insisted Ted either shut the office down, or find some way to pay for it. Ted Jones paid for it by opening one-broker offices on either side of the teletypewriter line, stretching from St. Louis, Missouri, to Pueblo, Colorado. That is why some of the earliest Edward Jones offices were Dodge City, Hays, Great Bend, Manhattan in Kansas, and Jefferson City in Missouri. Small town branch operations took "Wall Street to Main Street" and created a high volume of sales for the company and its brokers. About 10% of its business in the 1960s was in commodity trading due to many clients being cattle farmers.

Edward Jones Investments had the naming rights for the Edward Jones Dome in Saint Louis, Missouri. After the St. Louis Rams decided to move to Los Angeles, Edward Jones Investments exercised its right to terminate its sponsorship, and the facility is now known as The Dome at America's Center.[14]

On December 22, 2004, the Securities and Exchange Commission, NASD and the New York Stock Exchange settled enforcement proceedings against Edward Jones, related to allegations that Edward Jones failed to adequately disclose revenue sharing payments that it received from a select group of mutual fund families that Edward Jones recommended to its customers.[15] [16] The company paid a $75 million fine and disclosed the revenue sharing payments on its website.[17]

On August 13, 2015, the Securities and Exchange Commission required Edward Jones to pay a $20 million fine for overcharging retail customers.[18]

The Edward Jones PAC made two contributions to Senator Josh Hawley since he was elected in November 2018 – a $2,500 contribution[19] to a luncheon in April 2019 and a $1,000 contribution[20] to a virtual event in 2020. In January 2021 Edward Jones paused all contributions to elected officials and political organizations.

The company had 18,796 advisors on staff at the end of 2022.[21]

Business model

Edward Jones financial advisors offer commission-based and fee-based financial products.[22] Offices are usually staffed by a financial advisor (licensed broker) and one branch office administrator. The branch office administrator acts as an assistant to the financial advisor, filling the roles of a secretary, manager, and co-worker.

The one-broker-per-office model allows clients to choose their broker directly, and deal with that person exclusively.[23] [24] Edward Jones has 18,892 brokers on staff[25] and more than 15,000 branch offices across the United States.[26] In 2022, the company launched a teaming program that allowed multiple branches to service clients. Prior to its introduction, clients were directed to a single branch office.[27]

Corporate affairs

The company has its corporate headquarters in the City of Des Peres in St. Louis County, Missouri.[28] [29] [30] Adjacent to the company headquarters is the Edward Jones South Campus, located at the intersection of Ballas Road and Manchester Road.[31] The Edward Jones North Campus is located on a zoned plot southeast of the intersection of Interstate 270 and Dorsett Road in the City of Maryland Heights in St. Louis County.[32]

Edward Jones has locations in the United States and Canada. The company had offices in the United Kingdom for 10 years, before selling the division to British brokerage firm Towry Law in 2009.[33]

Controversy

Edward Jones was the subject of a successful anti discrimination suit from its minority stock brokers. There was an allegation that Edward Jones did not allow minority brokers equal access to support programs and lucrative territories. The company paid out 34 million dollars.[34]

Awards and rankings

Fortune magazine ranked Edward Jones at number seven on their Fortune List of the Top 100 Companies to Work For in 2020 based on an employee survey of satisfaction.[35] In 2021, Fortune ranked it number 20.[36]

External links

Notes and References

  1. February 24, 2023 . FORM 10-K . . 30 . October 24, 2023 .
  2. February 24, 2023 . FORM 10-K . . 30 . October 24, 2023 .
  3. February 24, 2023 . FORM 10-K . . 36 . October 24, 2023 .
  4. News: Greenberg . Gregg . August 11, 2023 . Edward Jones head count, assets grow in second quarter . Investment News . October 24, 2023 .
  5. Web site: Edward Jones History . July 22, 2017 . live . https://web.archive.org/web/20170826075132/https://www.edwardjones.com/about/history.html . August 26, 2017 .
  6. Web site: 2020-03-17. Edward Jones to End In-Person Client Meetings. 2021-01-06. Wealth Management. en.
  7. Web site: Edward Jones (Jones Financial Companies) 2020 Fortune 500. 2021-01-06. Fortune. en.
  8. Web site: Financial Reports - Edward Jones . 2014-10-10 . live . https://web.archive.org/web/20141015194226/https://www.edwardjones.com/en_US/company/financial_reports/index.html . 2014-10-15 .
  9. Web site: Summary of JONES FINANCIAL COMPANIES LLLP - Yahoo . 2014-10-10 . live . https://web.archive.org/web/20141018121742/http://biz.yahoo.com/e/140707/8159178-k.html . 2014-10-18 .
  10. Web site: Company Overview of The Jones Financial Companies, L.L.L.P. . 2014-10-10 . dead . https://web.archive.org/web/20080415043457/http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=3585948 . 2008-04-15 .
  11. News: Edward Jones Taps Penny Pennington to Lead Brokerage. Beilfuss. Lisa. 2018-05-08. Wall Street Journal. 2019-02-11. en-US. 0099-9660.
  12. Web site: Edward Jones History: What's in a name: Edward D. Jones . 2008-08-02 . dead . https://web.archive.org/web/20081010200952/http://www.edwardjones.com/ejhistory/story_early_name/index.html . 2008-10-10 .
  13. News: 1967-10-31. Clipped From St. Louis Post-Dispatch. 20. St. Louis Post-Dispatch. 2020-09-09.
  14. Web site: Edward Jones pulls name from St. Louis dome . Kansas City Business Journal . 22 February 2016 . live . https://web.archive.org/web/20180220030250/https://www.bizjournals.com/kansascity/blog/morning_call/2016/02/edward-jones-pulls-name-from-st-louis-dome.html . 20 February 2018 .
  15. Web site: Edward Jones to Pay $75 Million to Settle Revenue Sharing Charges . . 22 September 2004 . 2017-11-08 . live . https://web.archive.org/web/20170214011934/https://www.sec.gov/news/press/2004-177.htm . 14 February 2017 .
  16. Web site: Can Your Edward Jones Financial Advisor Really Serve Your Best Interests? . McCluskey . Molly . Reeves . John . Moscovitz . Ilan . . 6 December 2012 . 2017-11-08 . live . https://web.archive.org/web/20171109191455/https://www.fool.com/investing/general/2012/12/06/can-your-edward-jones-financial-advisor-really-ser.aspx . 9 November 2017 .
  17. Web site: Revenue Sharing Disclosure Information . EdwardJones.com . 2017-11-08 . Edward Jones’ receipt of revenue sharing payments creates a potential conflict of interest in the form of an additional financial incentive and financial benefit to the firm, its financial advisors and equity owners in connection with the sale of products from these product partners . live . https://web.archive.org/web/20150325233354/https://www.edwardjones.com/en_US/disclosures/revenue_sharing/index.html . 2015-03-25 .
  18. Web site: Edward Jones to Pay $20 Million for Overcharging Retail Customers in Municipal Bond Underwritings. SEC.gov. 2015-08-13. 2015-01-07. live. https://web.archive.org/web/20150813221616/http://www.sec.gov/news/pressrelease/2015-166.html. 2015-08-13.
  19. Web site: Wealth Managers, Firms Cut Off Political Donations In Wake Of Capitol Attack. 2021-01-14. Financial Editorial. en-US.
  20. Web site: EDWARD JONES PAC - committee overview. 2021-01-14. FEC.gov. en.
  21. February 24, 2023 . FORM 10-K . . 11 . October 24, 2023 .
  22. Web site: Edward Jones Financial Advisor Review SmartAsset.com. SmartAsset. en. 2019-04-29.
  23. Web site: Company Edward Jones Cleverism.com. Cleverism. en. 2019-04-29.
  24. Web site: How Do Edward Jones and Merrill Lynch Compare?. Cussen. Mark P.. Investopedia. en. 2019-04-29.
  25. News: Greenberg . Gregg . August 11, 2023 . Edward Jones head count, assets grow in second quarter . January 11, 2024 . Investment News . Edward Jones was up 137 financial advisors at the end of the second quarter compared to the second quarter of last year, bringing its total to 18,892, the company reported Friday..
  26. News: Donachie . Patrick . March 17, 2020 . Edward Jones to End In-Person Client Meetings . January 11, 2024 . Wealth Management . Edward Jones is asking its advisors to meet only virtually with new and existing clients, and is temporarily restricting client access to all of its 15,000 North American branch offices as a result of the burgeoning spread of the coronavirus in the United States, the financial services firm announced today..
  27. Web site: 2023-07-19 . Edward Jones Moves More Advisors to Teams . 2024-02-13 . Wealth Management . en.
  28. "Headquarters & Campus Locations ." Edward Jones. Retrieved on August 20, 2010. "Edward Jones 12555 Manchester Road Saint Louis, MO 63131."
  29. Thimangu, Patrick L. "Des Peres, Mo.-Based Edward Jones Brokerage Looks to Europe for Expansion." St. Louis Post-Dispatch. November 27, 2002. Retrieved on August 19, 2009.
  30. "St. Louis firms make Fortune’s best workplaces ." St. Louis Business Journal. Thursday January 22, 2009. Modified on Tuesday January 27, 2009. Retrieved on August 19, 2009.
  31. Brown, Elizabeth A. "Long-awaited expansion at Edward Jones under way." St. Louis Business Journal. May 4, 2008. p. 2 . Retrieved on April 5, 2013.
  32. Brown, Elizabeth A. "Long-awaited expansion at Edward Jones under way." St. Louis Business Journal. May 4, 2008. p. 1 . Retrieved on April 5, 2013.
  33. News: Dunbar. Joy. Edward Jones sells UK advisory arm to Towry Law. 15 April 2015. dead. https://web.archive.org/web/20150924015829/http://www.ftadviser.com/2011/10/27/ifa-industry/companies-and-people/edward-jones-sells-uk-advisory-arm-to-towry-law-kyyoU1Qp5uvOujO3fdH1GK/article.html. 24 September 2015.
  34. https://www.forbes.com/sites/ericbachman/2021/07/26/edward-jones--co-financial-advisors-reach-34-million-settlement-in-discrimination-case/ Forbes:July 26, 2021:Edward Jones Co. financial advisors reach 34 million dollar settlement in discrimination case
  35. Web site: The 25 best companies to work for, based on employee satisfaction. Business Insider. Jessica. Snouwaert. April 1, 2020.
  36. Web site: 100 Best Companies to Work For . June 2, 2021 . . August 11, 2021.

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