Edward Jones experienced a slowdown in asset gathering during the second quarter, reporting $19 billion in net new assets—a 21% decline compared to the same period in 2023, as detailed in their recent 10-Q filing with the SEC.
The firm attributes this drop to higher asset outflows, with net new assets reflecting the net difference between newly invested assets and client withdrawals.
However, buoyed by rising equity markets, Edward Jones saw client assets under care rise to $2.1 trillion, representing a 14% increase year over year. The firm also expanded its client base, serving 6.5 million households by the end of the quarter, up 3% from the previous year, according to their August 9 filing.
As one of the largest wealth management firms in the U.S., Edward Jones continues to grow its advisor network. By the end of the quarter, the firm had 19,589 financial advisors, a 4% increase from the same period in 2023. This growth comes despite a rise in advisor attrition, which increased to 5.3% from 4.7%. This attrition rate represents the annualized percentage of advisors who left the firm during the period, compared to the total number of advisors at the end of the quarter.
In terms of financial performance, Edward Jones saw net revenue climb 16% to $3.9 billion, driven by higher fee and trade revenue. Net income before allocations to partners increased 15% to $470 million. Operating expenses also rose by 16% to $3.4 billion, largely due to higher advisor compensation, according to the company.
In recent years, Edward Jones has made significant changes to its business and service offerings. Notably, the firm introduced advisor teams in 2022, moving away from its traditional model of small offices with a single advisor and administrative assistant. Today, nearly 3,000 financial advisors operate in “new practice models,” where they share office space and support staff, and collaborate in teams to better serve clients.
Edward Jones is also making considerable investments in its advisory platform, technology, and overall capabilities, according to a company spokeswoman. These investments are part of the firm’s broader strategy to enhance its service offerings and adapt to the evolving needs of both clients and advisors.
