Edward Jones Investments

Edward D. Jones & Co., L.P., (d.b.a. Edward Jones Investments), simplified as Edward Jones, 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 and 19,000 financial advisors. 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 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. 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.

History


Edward Jones was founded by Edward D. Jones in St. Louis, Missouri in 1922. (A different Edward D. Jones was a co-founder of Dow Jones. ) 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. 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.

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. The company paid a $75 million fine and disclosed the revenue sharing payments on its website.

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

The Edward Jones PAC made two contributions to Senator Josh Hawley since he was elected in November 2018 – a $2,500 contribution to a luncheon in April 2019 and a $1,000 contribution 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.

Business model
Edward Jones financial advisors offer commission-based and fee-based financial products. 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. Edward Jones has 18,892 brokers on staff and more than 15,000 branch offices across the United States. 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.

Corporate affairs
The company has its corporate headquarters in the City of Des Peres in St. Louis County, Missouri. Adjacent to the company headquarters is the Edward Jones South Campus, located at the intersection of Ballas Road and Manchester Road. 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.

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.

Controversy
Edward Jones was the subject of a successful anti discrimination suit from it's 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.

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. In 2021, Fortune ranked it number 20.