Edward Jones took in 26.3% more in revenue-sharing payments from mutual funds last year than it did in 2020, with American Funds topping the list of revenue-sharing partners, according to news reports.
In all, Edward Jones collected $313.2 million in revenue-sharing payments in 2021, FA-IQ sister publication Ignites writes, citing an annual disclosure.
“The growth in revenue sharing in 2021, from 2020, is attributable to market performance and additional client investments in eligible assets that earn revenue sharing under the corresponding agreements,” a spokesperson said, according to the publication.
Once again, American Funds, which has had a long-standing relationship with the St. Louis-based broker-dealer, paid Edward Jones $121.8 million in revenue-sharing fees last year, which was 23.4% more than in 2020 and constituted 38.9% of everything Edward Jones collected in revenue sharing during the year, disclosures indicate.
American Funds' payments included a bonus in the amount of $5 million in recognition of the firms' strategic partnership, according to American Funds’ prospectuses cited by the publication. The Los Angeles-based firm has for decades been on Edward Jones' historically tight strategic partner list. American Funds also disclosed a bonus payment of $5 million to the distributor in its own fund prospectuses.
American Funds didn’t respond to Ignites’ requests for comment.
New to the list is Fidelity, which signed an agreement with Edward Jones that took effect June 1, 2022 and Eaton Vance, which is now part of Morgan Stanley Investment Management and signed a deal effective April 1, 2022.
Edward Jones' partners pay rates equivalent to between 0.035% and 0.13% on assets within their products, disclosures indicate.
MFS, meanwhile, paid Edward Jones $36.9 million in 2021, which was 37.2% more than in the prior year, and Franklin Templeton paid $31.8 million last year, which was 18.7% more than in 2020, according to the publication.
Other mutual fund providers who paid Edward Jones revenue-sharing fees included BlackRock, JPMorgan, Invesco, PGIM, Hartford, John Hancock, Lord Abbett and Nuveen, Ignites writes.
JPMorgan’s payments to Edward Jones grew the most of all mutual fund firms paying last year: The company paid 67.6% more than it did in 2020, a total of $18.6 million, according to the publication.
PGIM’s payments totaling $3.7 million last year were 54.2% greater than in 2020, Ignites writes.
None of the firms paying revenue-sharing fees paid less last year than in 2020, according to the disclosures cited by the publication.