[quote=Spaceman Spiff] I love how people seem to be able to twist things around. First, according to the release from Weddle, Jones has made the decision to not accept revenue sharing dollars from Advisory Funds. Wasn’t a huge deal anyway because there wasn’t a large percentage of preferred funds being utilized. Who said that it was the fund companies that are refusing to pay revenue sharing?

Second, this is where you might want to check you’re buddy’s math skills, there will be a 9 basis point admin fee starting in October. Which isn’t anywhere near 10% of the full charge. Even if you are discounting, you have to discount down to 90 bps to get to 10%. As far as I can tell it’s a 6.6% charge. At the end of the day they’ll still not be paying the whole 1.35%. It comes out to be a net increase of $103 a year on a $100K account. That’s 1 basis point.



Didn’t you folks say that revenue sharing was a bad thing? Wouldn’t this be a good turn of events for Jones? How do you spin this for a negative? Oh, I forgot. Everything that Jones does is bad. Never mind.

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We all know I’m not a Jones fan - but I wouldn’t see anything wrong with them raising their prices if they were adding any kind of value in that mutual fund wrap.



I interviewed a guy today who was considering Jones. Just so you Jonesies know - I told him you were a good outfit and that if he wanted to take old ladies money, it was a great place to go!

[quote=Spaceman Spiff]I love how people seem to be able to twist things around.  First, according to the release from Weddle, Jones has made the decision to not accept revenue sharing dollars from Advisory Funds.  Wasn’t a huge deal anyway because there wasn’t a large percentage of preferred funds being utilized. Who said that it was the fund companies that are refusing to pay revenue sharing? 

  Second, this is where you might want to check you're buddy's math skills, there will be a 9 basis point admin fee starting in October.  Which isn't anywhere near 10% of the full charge.  Even if you are discounting, you have to discount down to 90 bps to get to 10%.  As far as I can tell it's a 6.6% charge.  At the end of the day they'll still not be paying the whole 1.35%.  It comes out to be a net increase of $103 a year on a $100K account.  That's 1 basis point.    Didn't you folks say that revenue sharing was a bad thing?  Wouldn't this be a good turn of events for Jones?  How do you spin this for a negative?  Oh, I forgot.  Everything that Jones does is bad.  Never mind.  [/quote]   On a net basis, clients will still pay 135 or less.  The 9 bips are being netted against the fund accounting reimbursements we get from fund companies (that ALL firms get, which are the same everywhere), which Jones was rebating back to the client accounts.  Now, the client won't see much of any credit, as the 9 bips approximates what we get in shareholder accounting credits.  So now instead of the client paying 1.26 (1.35 less credits of .09), the client will pay about 1.35 (actually slightly less because they will still get credited for 12b-1's as long as they are not legislated away).