[quote=jewalter]

I would argue that in a Managed Account "churning" is alive and well.  if I were a client of a managed account and I saw NO activity, I would ask "What am I paying YOU for?".  Therefore, trades are placed in SOME managed accounts to justify fees...Not ALL, mind you, but some.[/quote]

Care to guess how many trades are placed as you suggested versus the number of mutual fund switches or "touchdown" bonds, or assets allocated across mutual fund families just due to YTB concerns at Jones?

BTW, if my clients were to ever ask why there was no activity in a flat fee (not managed, btw) account I'd tell them the truth, we don't trade on a calender basis to justify a trade, we trade when it's in the client's best interest.

[quote=jewalter]

munytalks,

Yeah, you mean the survey taken by JD Power, or Forrester Research last year... Sure do.

Ranks Highest in Investor Satisfaction with Full Service Brokerage Firms- J.D. Power

One of the best advocates for its customers - FORRESTER RESEARCH

[/quote]

Mr. Hill-Walter- AGAIN- Read the Entire article. Don't just read the posts from St. Louis on the re-prints. FIRST OFF- AND DON"T tell me I am wrong because I was in St. Louis when the words came out of the GP's mouth about this survey- EDJ submitted a PRE-SELECTED LIST OF CLIENTS TO CONTACT FOR THIS SURVEY-

The topics the clients' were questioned on were Do you like your broker, are the statements easy to read, were your trades executed quickly, correctly. etc.

Survey and Study are TWO different excercises. STUDIES have shown what is BEST for a client

[quote=jewalter]

 FACT - Edward Jones is given a priveledge by the SEC to not have a branch manager in every office.  This is due to our compliance record. [/quote]

Do you have any evidence to support that claim, or to prove that Jones isn't operating under the same OSJ location requirements granted every firm if they so choose?

Mike - you'll get carpal tunnel trying to educate this fool. Watch this-

Hey Mr. Hill-Walter- explain what an OSJ is.

MB - great point here - the fact is the SEC or NASD will not make favorable decisions based on a compliance record to this extent.  What their concerns are fall on the ability of a firm to properly supervise its staff to include their advisors.  What the regulators are ok with is Jones being able to properly supervise their branches with a registered principal off site.  It's no different for OSJs that have non-OSJ offices or satellite offices. 

This is a line that is fed to the new IR early on in Study for Success...brain wash early and often and one will begin to believe that we really are the most ethical firm on Wall St.

Mike & Muny on a side note - any comments on what professionals in the industry feel about Jones?  How are they viewed by HNW clients, third party research firms, industry analysts - not the JD Powers who has no industry knowledge? 

Just curious...that would appear to be a bit more of an unbiased summation in my eyes.

munytalks,

You know absolutely nothing about me besides the fact that I enjoy working at Edward Jones.

I understand your condescending comments are a by-product of anonomys message boards and do not hold that against you (I am actually guilty of the same in my response to BrokerRecruit, to which I hereby apologize for)...whoever you are.  I'm sure you do not converse like that with individuals on a regular basis. 

The bottom line is, for whatever respective reasons, you like the indy channel and I like Jones.  I'm sure you don't go out and try to "screw" clients on a regular basis.  You may think that I and Everyone at Jones tries to get the highest commision off each and every trade and each and every client.  The bottom line is that your opinion is an opinion.  I'm happy you stated it.

You may think that Jones reps are just too stupid to figure out managed accounts, and that's fine.  We just think that on the whole, the aren't suited for all of our clients.  That's our opinion.

As you are probably aware, there are certain trade-offs to working at Jones, as with any firm.  We accept these, and my individual opinion is that they are in the client's best interest.  It's just my opinion.

Now, you can call me any name you wish, or belittle my firm all you want...but, if we found ourselves sitting beside each other at a bar, I'm sure we could have a friendly conversation about what makes us different (at least I hope we could).

I wish you the best in your endeavors,

-jewalter

Ever tried hammering a nail with a tape measure, or using a mitre saw as a level, or tried using a phillips-head screwdriver instead of a flat-head?  Similar to SOME (before you get pissed at me for "attacking" the best company in the history of the galaxy to work for) clients as they relate to the products and tools at Jones.

So Walter, are you saying that there is gray area with the NASD/SEC?  Last time I checked, rules were rules and they were black and white.  The NASD has regulations on OSJ supervision and I believe it states that there must be a local or corporate OSJ within 200 miles, or something like that.  If you think I'm wrong (which I could be) look it up and give me the exact statute.  But I'm sorry, EDJ does not get "special privelege" (spelled without a d) from the NASD. 

And please don't try to educate me on the industry.  I am well aware of how things operate and I work directly recruiting mutual fund and portfolio managers as well.  I don't want someone bs-ing me about why they executed a trade so that they can pay the bills.  How many $500k fee-based accounts have you signed up?  I am much more comfortable working with a portfolio manager that will manage my accounts for a 1% fee with some discretion.  Well worth it, chief.

I still don't know why you think I know nothing about Jones or the industry when you, in fact, are incorrect.  So go push the Jehovahs out of the way in order to get to Ma and Pa Kettle's door first.

"EDJ submitted a PRE-SELECTED LIST OF CLIENTS TO CONTACT FOR THIS SURVEY"

NOW we're getting somewhere.  I've often thought that the client satisfaction surveys might also have something to do with the average level of sophistication in the Jones client base.  Typically, EDJ operates in smaller communities with smaller, less sophisticated clients.  In general, these clients are easier to please because they've been used to CDs and savings accounts, so most investments are going to be a big step up in average return.  Typically, EDJ reps are nice, community-oriented folks with less competition (heck, sometimes, they are the only game in town), so they are looked at with great respect and admiration by the local population, even if they have only average (or in some cases, far below average) skills in invesment management. That, and some strategic selection of clients for survey purposes, and the general level of client sophistication may explain a lot.

Frankly, I've met plenty of angry EDJ clients with portfolios full of Putnam, Goldman Sachs, Van Kampen, Lucent, preferred stocks, and 20-year GMACs to know that not everyone is satisfied with Jones...not by a long shot.  Many clueless EDJ clients only become angry after being told what they have in their portfolio ("it matures WHEN?!!")

It's moments like these, and there have been plenty of them over the years, that cause me to doubt the validity of such surveys, and resent how they are presented as the unbiased, gospel truth.

Gag.

walter - here's the deal.  My stance on this board has always been that there are firms out there for everyone.  The indy I work exclusively with is fantastic and has attracted a lot of talent from Jones, LPL, RJ, Commonwealth, ML, etc.  There isn't a perfect firm for everyone.  My BD isn't perfect for everyone.  There are things I dislike about them, but, as a whole, those things are very minor and typically don't impact the client or advisor. 

That's always been my viewpoint, as well as the fact that I'm happy you like Jones.  When I call guys like you, I don't call them a kool-aid chugging clone, but I respect their decision that they're happy and wish them luck in a very professional way.  Now, when people attack, I attack back, especially when I'm told that I know nothing about this industry (which is completely untrue) and I make an extremely good living for talking on the phone for 30-35 hours/week.  I have nothing personal against Jones.  My views relate to my being a former prospective client. 

I keep in touch with many Jones reps and they are great guys and great advisors.  They know all sides of the business and certainly don't try to screw the clients to turn a buck.  It's simply something that happens everywhere.  I have seen, that because of the model, there is the possibility that it could happen frequently at Jones.  That's all.

Good luck.

Walter:  "aren't suited for OUR clients"  Like your clients are any differnt than mine?  My clients used to be Jones clients and they LOVE the fee based approach.  Truth is you are just another noob with a couple of years under his belt at Jones and your preaching what you have been taught as being gospel.  Jones CAMPAIGNS FOR ALL OF THOSE AWARDS--it's great marketing, I'll admit--and I'll bet it will even help you land that $10,000 ICA ticket--but don't think for  minute that your at a special firm for special people...you are not.  Far from it.  ANd, I do know better than you.

For brokers 3 years and under Jones aint so bad--and it might even be better than being at many of the large wires (don't know I never worked at a large wirehouse), but it doesn't come close to what any decent indy firm offers.

Mr. Hill-Walter, I know enough about you based on your own posts in here.

So let's do some role play- Here's the scenario. A $500K account comes to you from another firm where he was paying a fee. The account is almost all stock. The client likes stock and wants to actively trade his account.

What do you do? Take the account but then try to sell him ICA? Take the account but first explain that he will have to pay for each and every trade now- and show him how much? Take the account and explain the commission fees when he complains? Or, tell him you would love to work with him but he is better off finding an advisor who will continue the flat fee basis that most benefits him?

This was my most challenging situation when I was at Jones. Sometimes I could see where clients were better off either fee based or managed. But the program that was BEST for these clients did not exist at Jones. As an Independant, I really can offer what is best.

INDY- FOR YOU- Yes, it was announced that select IR's were being contacted to submit lists of SELECTED clients for this survey-further the clients KNEW it was coming. Remember, Jones would NEVER sell lists of any sort of the client base-nor could they legally lend the names for the purpose of the survey. So people knew it was coming.

Closing- I doubt we'd ever meet each other in a bar- I never liked the Train Wreck.

Indy, you are right about the typical EDJ client. Jones emphasizes the fact that the sales lit is written with an 8'th grade reading level. Take a look at the ad campaign they've got going on right now.." Edward Jones...making sense of investing" I'd be willing to bet if you asked any current Jones rep or former Jones rep, both would agree a majority of time spent talking to clients / prospects is spent "educating".

"The FACT remains that Edward Jones continues to uphold a CULTURE of doing what is right for the client."

I remember hearing something about people intuitively thinking the opposite when words like: value, ethics, integrity, honesty are used in advertising.