Space, how long has Franklin been your main fund family? Maybe since they pay revenue sharing now? What are they number 2 in the system since they started paying-to play.

Actually I started looking at them about 6 months before they became a preferred fund family.  A client transferred some in and while doing the due diligence on the funds they owned I taught myself about FT. I was looking for something besides American and they had a great lineup.  

I've looked at Columbia.  They've got some great stuff in the Small/Mid Cap space, but their Large Value doesn't keep up with Franklin or American.  Dodge and Cox only has one fund open right now.  I wish I did have access to T Rowe Price.  I'd put them up with Franklin and American any day.  I haven't looked at ING, but thanks for the advice. 

spears - I'd agree.  That's one of the reasons we have the Goodknight plan.  Long term plan in my office is to have 100 $1 million+ clients that I focus on.  One down, 99 to go! 

My goal at the end of the day is to make what my clients need to make.  How they pay me to do it is only one part of the equation.  Knocking Jones because we don't do fee based biz the way you do is like not eating at MCD's because they sell KO not PEP.  Of course you guys probably don't like hamburgers anyway.

Space:

The International Stock fund & the income fund for Dodge & Cox are still open.

But I do not think you can use them any way with Jones!

Man, I wish D&C's two funds were still open.  I have owned Stock for years in my own account, but I was dumb about 6 years ago and dumped Balanced.  Now I can't get back in.  But their Balanced Fund is basically a meshing of Stock and Income.  A client could do perfectly fine just owning Stock, Income, and Int'l in varying %'s.

And by the way, Revenue Sharing no longer has anything to do with your P&L directly.  You are given a pro-rata P&L credit of ALL assets under management.  So there is not a DIRECT incentive to use PF's.  (For example, if I had $100mm AUM, and that was 1% of all AUM in the firm, I would get a credit of 1% of ALL Revenue Sharing Income on my P&L).

"I've looked at Columbia.  They've got some great stuff in the Small/Mid Cap space, but their Large Value doesn't keep up with Franklin or American.  Dodge and Cox only has one fund open right now.  I wish I did have access to T Rowe Price.  I'd put them up with Franklin and American any day.  I haven't looked at ING, but thanks for the advice. "

You just don't get it do you.  Not every fund family has to be everything to everyone.  Please don't tell me that your only reason for not using a fund family is the lack of a large cap value that competes with Franklin and American.  You can use investments from all over to compliment each other.  I don't use the entire ING universe in fact I have only optimized their international holdings.  If you have someone who wants to be invested in something with some pop and they can stomach some movement, ING Russia has to go through your thought process (albeit only a very small fraction of people should own this fund).  If you want something with lower correlation to the market, you have got to think of ING Global Real Estate or the Wells S&P 500 Reit index fund.  If you are only using a fund family for their entire lineup, you are missing out on some fantastic opportunities my friend.  I do hope that I run into one of your clients someday as the first question I will ask them is, why didn't spiff use a low correlated real estate fund in your portfolio.  Was he afraid of the 35% return it put up last year, never mind, your ICA was almost up 16%.

Space, how long has Franklin been your main fund family? Maybe since they pay revenue sharing now? What are they number 2 in the system since they started paying-to play.

That makes the second time that Franklin is on the Jones list. The last time

they were dropped was when they stopped paying kickbacks.

[quote=Starka]That makes the second time that Franklin is on the Jones list. The last time

they were dropped was when they stopped paying kickbacks.[/quote]



This whole preferred fund thing is absurd. It’s time the SEC killed this entire practice.



Also all this moaning about closed fund’s. Roll your own fund with
ETF’s. I  hope everyone realises that the almost all of the
outperformance of value funds vs the S&P500 vanishes when you
benchmark them against S&P500 Value index/Russell 1K Value.

Absolute Bottom Line: At Edward Jones, advisors are not ALLOWED to sell Dodge and Cox, Fidelity, Vanguard or any other good, NO LOAD funds. This DENIES the client great investment opportunities. No load funds are CHEAPER and JUST AS GOOD OR BETTER than loaded funds. You can't call yourself a FINANCIAL ADVISOR or FIDUCIARY if you can't recommend NO LOAD funds. Therefore, Broker24 and Spaceman Spiff, et al, you are IGNORING GREAT INVESTMENTS by NOT being able to recommend Vanguard, Fidelity and Dodge and Cox, among others and you are HURTING your clients with LARGE SALES CHARGES.

You are denying your clients great NO LOAD families and your firm pushes you to sell certain LOADED families. That is WRONG and you know it.

Open end mutual funds are a rip-off anyway.



The day is coming when they’ll be fewer in number and they’ll trade at

significantly lower commissions, with trails being a thing of the past.

[quote=farotech]

Absolute Bottom Line: At Edward Jones, advisors are not ALLOWED to sell Dodge and Cox, Fidelity, Vanguard or any other good, NO LOAD funds. This DENIES the client great investment opportunities. No load funds are CHEAPER and JUST AS GOOD OR BETTER than loaded funds. You can’t call yourself a FINANCIAL ADVISOR or FIDUCIARY if you can’t recommend NO LOAD funds. Therefore, Broker24 and Spaceman Spiff, et al, you are IGNORING GREAT INVESTMENTS by NOT being able to recommend Vanguard, Fidelity and Dodge and Cox, among others and you are HURTING your clients with LARGE SALES CHARGES.

You are denying your clients great NO LOAD families and your firm pushes you to sell certain LOADED families. That is WRONG and you know it.

[quote=Maxstud]
If you don't like the business model, find one you do like and go there.

CNN money has a fees and expense calculator on their website, I don't know how accurate it is.  I put in Dodge and Cox balance fund, $25,000 investment for 10 years the total expenses are $2468.08, put in Capital Income bBilder for the same parameters, with load and it comes to $2327.90.  Both seem very reasonable. 

Now you may say that nobody holds a fund for 10 years, can't speak for you but I do.  Heck I held a couple of Janus funds from around '93 until late last year.  Rode them up and then all the way down and my personal return on my statement was 11% avg annual.  You don't have to always have the number one fund in every category to do well, and sometimes you number one fund won't be number one all the time.

Good luck.
[/quote]

maxipad,

so where was your held ........ at your firm if it was were you able to make switches within Janus?

[quote=compliancejerk]

maxipad,

so where was your held ........ at your firm if it was were you able to make switches within Janus?

I've looked at Columbia.  They've got some great stuff in the Small/Mid Cap space, but their Large Value doesn't keep up with Franklin or American."

I use Columbia Marsico 21st Century for the Large/ Multi Cap Growth space. Compare it to Growth Fund of America ( a pure apple to apples comparison) and Tom Marsico outperforms on a risk- adjusted basis for every time period out there... Also, Columbia's Acorn series of funds are top tier as well...

[quote=blarmston]

I use Columbia Marsico 21st Century for the Large/
Multi Cap Growth space. Compare it to Growth Fund of America ( a pure
apple to apples comparison) and Tom Marsico outperforms on a risk-
adjusted basis for every time period out there… Also, Columbia’s
Acorn series of funds are top tier as well…

I may be jumping to a general comment on the title of this thread as opposed to following the last comment, but here's my opinion.

There is nothing wrong with Jone's IR's that a little research and perspective can't cure.  I remember a training class when I started at jones that stated there were managed funds that outperformed the S&P 500 and then was given a hypo proving it.  I was new so I bought into it.  A few years later I went into the same hypo and looked at the details as noticed that the hypo did not include dividends paid by the S&P but did include the dividends paid by the mutual fund in question.  I contacted SL to ask why and was told the index doesn't track it as part of the overall gains so it won't show on the hypo.  I didn't actually use that hypo as part of my daily practice, so it didn't concern me that I might had given out innaccurate information, but had I not done the research I might have bought that information without a second thought.  Stating all of that, there are some managed funds that can outperform the S&P, just not the one Jones was plugging at that particular class. 

Anyway, without teaching terms like Due Diligence and the need to always attempt to do the right thing for your client the jones IR's are somewhat handicapped.  In my experience they are all nice people that are trying to do the right thing, but don't have the complete toolbox to get the job done.  It sort of scares me to think they are going to the FA model without actually giving more training to truly explain what that means.  I new computer program does not make a mutual fund salesman into an FA.

[QUOTE] A few years later I went into the same hypo and looked at the details as noticed that the hypo did not include dividends paid by the S&P but did include the dividends paid by the mutual fund in question.  I contacted SL to ask why and was told the index doesn't track it as part of the overall gains so it won't show on the hypo. [/quote]

Actually, it does, you need to compare the mutual fund Total return to the S&P500 Total Return Index. I'll let you guess why alot of people don't do this comparison...

Most S&P vs whatever comparisons/examples are hopeless muddled by using only the price return index vs the total return Index.

[quote]I didn't actually use that hypo as part of my daily practice, so it didn't concern me that I might had given out innaccurate information, but had I not done the research I might have bought that information without a second thought.  Stating all of that, there are some managed funds that can outperform the S&P, just not the one Jones was plugging at that particular class.[/quote]

There are plenty of unmanaged funds that can beat the S&P500TR as well. I.e S&P600 Value and other small cap value index funds. The S&P Dividend Aristocrats  (SDY) also beat the SPY on a total return basis.

[quote]In my experience they are all nice people that are trying to do the right thing, but don't have the complete toolbox to get the job done.  It sort of scares me to think they are going to the FA model without actually giving more training to truly explain what that means.  A new computer program does not make a mutual fund salesman into an FA.[/quote]

Thoughtlessness is not an excuse for competence/incompetence. To paraphrase Hannah Arendt:

It was sheer thoughtlessness that predisposed him to become one of the greatest criminals of the period.

When  EDJ moves to a fee platform, the IR's will again be outclassed by everyone else who is more intelligent/thorough. The only way to cure this problem is to move to a business model based on best practices. And EDJ must do enough training so that IR's can understand, internalise, and explain those practices. 

[quote=AllREIT]

There are plenty of unmanaged funds that can beat the S&P500TR
as well. I.e S&P600 Value and other small cap value index funds.
The S&P Dividend Aristocrats  (SDY) also beat the SPY on a
total return basis.

[quote=joedabrkr]

[quote=AllREIT]

There are plenty of unmanaged funds that can beat the S&P500TR
as well. I.e S&P600 Value and other small cap value index funds.
The S&P Dividend Aristocrats  (SDY) also beat the SPY on a
total return basis.

Jones has an ETF Focus list.