Some clients at Edward Jones are about to experience lower costs, as the firm announces reductions in certain fees for its wealth management services.
Starting on October 1, the annual advisory fee for clients with assets between $500,000 and $1 million will drop to 1.2% from the previous 1.25%. Additionally, Edward Jones is removing a minimum monthly fee, a move that will be particularly beneficial for clients with smaller accounts.
These adjustments apply to several of the firm's investment advisory programs, including Guided Solutions Flex and Fund accounts. Edward Jones, like many other brokerage firms, has a tiered fee structure based on the amount of assets a client holds. In its managed solutions program, the firm currently charges 1.35% for the first $250,000 invested and 1.30% for assets between $250,000 and $500,000, as noted in a recent SEC filing.
For clients with over $10 million in assets, the fee drops significantly to 0.50%. These fees cover a range of services, including ongoing analysis of a client's investment needs, periodic consultations, and continuous review and selection of investments tailored to the client's goals.
An Edward Jones spokesperson explained that the fee adjustments are part of a broader effort to create a more equitable structure for all clients. “Edward Jones regularly reviews its pricing strategies to find ways to improve our offerings and better meet the needs of our clients,” she said.
This update was first reported by industry publication FundFire last week.
As one of the largest brokerage firms in the U.S., Edward Jones operates with nearly 20,000 financial advisors, serving 6.5 million households and overseeing $2.1 trillion in assets as of the close of the second quarter.
The firm has been actively evolving its business model, introducing additional products and services to its clients. Last month, Edward Jones expanded its collaboration with U.S. Bank to provide clients with checking accounts and enhanced credit card options.
