Edward Jones announced it intends to acquire Natixis Investment Managers’ (Natixis IM) Overlay Management Services capabilities through the purchase of select assets and an exclusive license for certain proprietary technology. And Natixis IM will continue to serve as a direct-indexing provider to Edward Jones’ UMA offerings. The deal is expected to close later this year, at which time Edward Jones will serve as the overlay manager for its U.S.-based Unified Managed Accounts (UMA).
Overlay management services play an essential role in the firm’s comprehensive financial planning and investment management service offerings, providing implementation of clients’ investments through a professionally managed diversified portfolio that includes tax strategies while also aligning with their financial goals. And Edward Jones previously outsourced these services through Natixis IM. Natixis IM is well-positioned to support the firm through its UMA implementation experience, direct indexing, tax loss harvesting, and other capabilities and investment products.
Edward Jones and Natixis IM have had a long working relationship since 2011. And as part of the transaction, Edward Jones is extending offers of employment to some Natixis IM associates working in overlay management services.
The closing of the deal is subject to customary closing conditions. And the terms of the deal are not being disclosed.
KEY QUOTES:
“We are committed to investing in new technology and capabilities that are focused on enhancing the ways we serve more clients more completely, and across different client segments. This includes comprehensive financial planning and an expanded suite of product and service offerings, including those traditionally focused on high net worth investors, that we will now be delivering to select clients.”
“Bringing these services in house gives us greater flexibility to innovate based on the needs of our clients. We believe that this integration will further strengthen our competitive advantage by building deeply personalized client portfolios, focusing on what is unique to each client. Additionally, we expect that these services will create scale and efficiency for our branch teams, which can increase our financial advisors’ capacity to serve more clients more completely.”
Russ Tipper, principal at Edward Jones
“We have always admired Edward Jones’ commitment to serving its clients through deep, personal relationships and we are proud to announce this groundbreaking partnership. We are excited to transition to a strategic way of working with our long-time client combining our UMA implementation knowledge, industry-leading direct-indexing prowess and investment management expertise with Edward Jones’ comprehensive financial planning and investment management capabilities to benefit investors’ unique needs and preferences.”
David Giunta, President and CEO for the U.S. at Natixis IM
