The push of Edward Jones in the high value of net value will not be “damage” of its long concentration on investors in lower assets, according to managing partner Penny Pennington.
In an interview last week at Wealthmanagement.com New York City offices, Pennington discussed The recently announced generations initiative of the firmdesigned for clients with investable assets over $ 10 million.
Edward Jones has long been “Main Street advisor”, with an essential clientele of investors with wealth ranging between $ 250,000 and $ 5 million. Although the firm is paying more attention (and sharing more resources to) its push for HNW business, Pennington stressed that such action would benefit all its clients.
“What happens when you develop something like generations Edward Jones is that everything else is raised,” she said. “We all know that what rich people love becomes what the least rich people want and get.”
Generations is the first group of Private Customer Services of Edward Jones specially designed for HNW space US. The firm plans to present the service for some HNW clients in the second quarter of this year and make it more widely available by 2026.
Generations will include financial planning and investment management (with advisers assisted by representatives at Ernst & Young and Husch Blackwell's legal firm to assist in tax and legal issues). Clients can receive assistance with the analysis of money flow, trust and assets needs, philanthropic strategies and business owners planning (including property planning documents and tax preparation as needed), and third -party references for other needs.
Edward Jones has about 9 million clients, more than 20,000 financial advisers nationwide and more than $ 2.2 trillion in client assets. Pennington said the firm has “brick and mortar office” in two -thirds of all US circles.
At the end of 2023, Edward Jones had more than 400,000 HNW clients; Although it is likely to be higher now, Pennington refused to specify how much Edward Jones' business would be (whether in assets or customer number) would be HNW as generations were in full swing.
“Is it 80%? No, it's not. Is it 5%? No, it's more than that, “she said.” The idea is to have our right part of the high value of a particular type of client. “
Like their concentration throughout the country when it aimed at the massive wealth, Pennington said the firm required HNW clients across the country without exclusively focusing on the “shores”.
Pennington argued that customers with $ 1 million to $ 10 million are paradoxically undeserved in many areas of the country, as wealth managers only want to aim for customers with a higher amount of investment assets. Edward Jones hopes to be the first stop as these individuals climb to the high net value space.
“We have taken the strategy and we have the investment resources to invest properly for all those groups to raise all their experience,” Pennington said.
In the same week were announced “Breza”, It was reported that Edward Jones would restructure her home office in St. Louis, resulting in some administrative vacations.
According to Pennington, the firm will invest more in improving segmentation and customer services, the efficiency of the branch and the growth of financial advisers. While the Interior Office was focused on investment tips, brokerage platforms and training programs for young councilors, Pennington admitted that things had “received little bureaucratic” in the headquarters.
Advisers “see that decision -making is slow in the home office,” Pennington said. “They know that if we become more efficient in the Interior Office …. we will allocate investments to ensure that their practices are more successful.”