Empowering Investors: Edward Jones Unveils Proprietary SMA and Expands Financial Planning Services

In a strategic move to enhance its offerings, leading financial services firm Edward Jones has launched its own professionally managed Separately Managed Account (SMA), focusing primarily on large-cap U.S. stocks. This new SMA will be exclusively available to clients enrolled in the firm's existing Unified Managed Account (UMA) program, providing them with a tailored investment solution. Concurrently, Edward Jones is also rolling out comprehensive financial planning services to its clients with at least $250,000 in advisory program accounts, further solidifying its commitment to delivering holistic wealth management solutions.

Unlocking Personalized Investment Strategies and Comprehensive Financial Guidance

Introducing the Edward Jones Proprietary SMA

Edward Jones' new proprietary SMA will offer clients a diversified portfolio of 40 to 60 large-cap U.S. securities, with a focus on companies with a market capitalization exceeding $10 billion. This SMA will be benchmarked against the S&P 500 index, providing investors with a familiar and widely recognized performance benchmark. The minimum investment requirement for this SMA is set at $50,000, and it will be available to clients free of charge, with the standard Edward Jones advisory fees, including a maximum of 135 basis points for the advisory services and 5 basis points for the platform usage, applying.This move marks a significant departure from the firm's previous approach, as it has historically offered SMAs from third-party managers. By launching its own proprietary SMA, Edward Jones aims to provide its clients with greater choice and flexibility in how they consume investment advice, while also driving efficiency for its branch network without compromising the personalized service that has become the hallmark of the firm.

Expanding Financial Planning Services

Concurrent with the introduction of the proprietary SMA, Edward Jones is also rolling out comprehensive financial planning services to its clients with at least $250,000 in the firm's advisory program accounts. These services will include estate planning, tax planning strategies, and scenario modeling, among other offerings. The firm's financial advisors will receive additional compensation for providing these expanded services, which are designed to cater to the evolving needs of high-net-worth clients.The gradual rollout of this financial planning initiative will begin in October, with approximately 600 Edward Jones advisors initially offering these services to their clients. This move is part of the firm's broader strategy to attract more high-net-worth individuals, a segment that has historically been underserved by the firm's focus on middle-class clients.

Positioning for the Future: Attracting High-Net-Worth Clients and Experienced Advisors

The launch of the proprietary SMA and the expansion of financial planning services are key components of Edward Jones' long-term strategy to broaden its offerings and appeal to a wider range of clients, particularly those with higher net worth. The firm has previously discussed plans to establish a dedicated high-net-worth business in 2024, which will provide more sophisticated investment options, including advanced tax and estate planning services.Additionally, Edward Jones is actively seeking to bring in experienced independent advisors who are nearing retirement and looking to transition their practices. By pairing these seasoned professionals with the firm's younger advisors, Edward Jones aims to leverage the combined expertise and experience to better serve its growing client base, including the high-net-worth segment.These strategic initiatives underscore Edward Jones' commitment to evolving its service model and staying ahead of the curve in the rapidly changing financial services landscape. By empowering its clients with personalized investment solutions and comprehensive financial guidance, the firm is positioning itself as a trusted partner for investors of all wealth levels, poised to capitalize on the growing demand for holistic wealth management services.