debating with yourself again?  who won?

Ok people it's time to set the record straight.  I was #16 at EDJ in MAP business before I left.  I had about $12 mm under management.  I sent Doug Hill, Weddle, Ray Robbins and others numerouse wires (didn't have email) to raise the payout to 40% like the other products.  They finally raised the payout after 3 years of me griping about it.  They also did not want Goldman or Lord Abbett in the program because they didn't have the back office support because they knew there would be a flood of money going into the program.  It still only represents $1.2 billion dollars under management.  According to Steve Novak, CFO, the MAP department is a blip on the screen (a rounding error in his words) to the bottom line of the company. 

Jones is the only firm on Wall Street that pays the SMA managers .75 bpts.  That is the reason the average cost is 2.0 to 2.5.  I never discounted anything because then I couldn't make any money.  Basically it works out that the broker gets $4,000 net per year for every $1,000,000 in management.  That's equities.  So in order to have $1000/month you needed $3,000,000 in AUM. 

As for the GP's.  I asked Bachmann about it at a breakfast one time and he said point blank, "if you plan on running a fee-based business Edward Jones is not the place for you."  There were 5 witnesses to my question and his answer.  Doug "3 mil" Hill didn't like the program because it had no revenue sharing.  I think Weddle is excited about the program and I believe that Jones has to make it part of the strategy in order for them to keep and attract talent. 

Interesting stuff, spiked!