Edward Jones
In 1998, Edward Jones is one of the largest and most profitable retail brokers in the financial services industry, but few people know its name. Jones has 3,900 branches, compared with Merrill Lynch, there is still a 5-11; and Jones has a team of 4,000 investment agencies, which makes it a seventh largest service retailer. In the 1990s, the average tax before Jones's share capital was 36%, which not only exceeded the average level of comprehensive service retailers (18%), but also more than its more famous competitors, such as Merrill Lynch. Company (33%), AG Edward (31%) and PAINE Webber (20%).
Jones and its only brokerage agencies have formed such a image in the public: providing cautious financial advice for rural investors, and the publicity of the media has also strengthened this image. Recently, "Wealth" magazine describes the characteristics of this company with "Wall Street's Wal-Mart". In 1998, Jones was in the high-speed expansion process. In 2004, it would be able to develop to 10,000 agencies in 2004, including 400 institutions in the UK and 1,100 to 1,500 institutions in Canada. John Bachman, Jones' business executive, believes that growth is the primary condition for survival. The "Wealth" magazine summarizes its business philosophy:
Why do you have this expansion? The first reason is due to actual considerations: In a market, Jones needs more brokers to advertise across the country, expand its technology, and share other daily expenses. The second reason is due to strategic considerations: Not only the opponent's brokerage company is growing, but also the company, banks and fund companies have also entered the market of Jones. If the company can't grow rapidly, becoming the main financial services company, then, whether it is more important in our client, it will eventually lose this position. After all, since the window system is able to control the situation, will I really care about whether Apple creates a good computer?
With the new competitors, transport mechanisms and products in the entire financial retail service industry, Bawns and his collaborators (companies are still all private) every day, it faces new development. Jones keeps leading or beyed in a firm belief and cautious investment in personal services?
Retail Financial Services in the late 1990s
In the last 30 years of the 20th century, new financial services for individual investors have grown forward. In the late 1990s, all comprehensive service brokerage companies, discounts, mutual fund companies, commercial banks, insurance companies and independent financial plans hoped to be able to share a piece of money in consumers. At the end of 1998, approximately 80 million US individual investors have more than $ 14.5 trillion "mobile" assets, as well as 27 trillion US dollars in the securities market through the pension plan, personal trust and life insurance policy. In short, the US investor's financial assets have turned many in the 1990s. It has increased from $ 15 trillion in 1990 to $ 30.3 trillion in 1998 (see Table 1).
It is estimated that global retail financial services (including consumer credit and mortgage) brought $ 2.3 trillion in net income and $ 20 billion in tax income. By 2002, these numbers are expected to increase to 3 trillion US dollars and $ 380 billion. In the 1996 Report, Charles Schwab estimated that approximately 40% of customers "invest-in" assets were controlled in the United States. Commercial bank (30%), mutual fund company (10%), company trust (7%), financial planner (6%), discount brokerage company (4%) and insurance companies (4%) controlled the remaining market. Among them, 20,000 registered financial plans in the United States are the fastest growing institutions, and many financial plans are also lawyers or accounting. Five largest comprehensive retail brokerage companies in a comprehensive service broker - Merrill Lynch, Salomon Smith Barney, Morgan Stanley Dean Witter, Prudential Securities Corporation (Prudential Insurance Company) and PAINE Webber Companies - In 1997, the US securities industry accounted for 20% to 50% of the $ 20%. They hired 47,500 retail brokers with 2,300 institutions worldwide (see Table 2 and Table 3). Among these companies, there are two of the recent mergers of investment banks and large retail companies. Morgan Stanley is an advanced investment bank that merges with retail brokerage companies and the credit card giant Dean Witter in May 1997. In November 1997, Salomon Brothers Group, a strong subscription and trading company merged with Smith Barney.
In general, comprehensive service brokerage company has sufficient funds, can have a wide range of retail products and services, including no bills, precious metals, foreign bonds, options, futures, merchandise, mortgage, credit card, insurance and loans. Customers have been adjacent to nearby branches, which provide customers with investment advice and transactions. Typically, these recommendations are based on consumer's short-term and long-term investment goals and strive to protrude personality.
Comprehensive Services Broker created a variety of account selection with different service levels. Accounts that collect trading commissions still dominate, and its scope from allowing consumers to buy or sell securities to the basic account of Merrill Lynch, cash management accounts automatically enter cash balance to the monetary market fund and provide Check and debit card. Typically, the commission of each transaction is $ 200 to $ 300, and the commission rate can be negotiated, and the customers who prefer their preferred discounts can be given up to 70% discount. Most comprehensive service brokerage companies also provide customers with cost-based or "bundled" accounts for customers with more than 100,000 assets. These accounts provide customers with a specific number of free stock trading a year to change the annual cost of investment assets. Broker companies try to allow customers to use cost-based accounts because they believe that these fees provide more stable income streams compared to commissions. For example, Merrill Lynch hopes that the proportion of customers who will use cost accounts in 2001 increase from 6% to more than 20%.
Recently, comprehensive service brokerage companies have also entered the online field. Most new accounts allow customers to transaction through online transactions or through brokers on the same pricing structure. Prudential's consultant plan introduced in May 1999 requested that account assets should exceed 100,000, and $ 25 per transaction is charged with annual cost from 1.5% to 0.25%, and the standard of annual fee depends on the size of the account. Other companies also intend to implement the same plan. In June 1999, Merrill Lynch introduced two online trading accounts. The first is Total Access, which is a modified version of an account created by a relatively wealthier customer in 1999. This account takes an annual fee for the starting point of $ 1,500 for unlimited transactions through brokers or online. Merrill also said that at the end of 1999 it will provide online discount transactions, with $ 29.95 per transaction. Discount services do not provide any agent help for our customers, but customers are allowed to enter Merrill Lynch's research institutions, enjoy the payment bill and similar CMA services.
At the same time as online channels, the branch network is still the center channel of the comprehensive service brokerage company. This network includes hundreds of branches mainly located in the metropolis, which usually have 20 to 25 brokers, a division manager, 5 to 10 sales assistants. Merrill Lynch has also established 180 "satellite" agencies, including 2 to 4 brokers, mainly in small towns. Although these brokers are very popular with most products and services provided by the company, the company often encourages them to develop expertise in a certain product area so that each branch has a product expert. The knowledge about financial software and theory is also an important skill. All brokers and most sales assistants of Comprehensive Services Brokers are "registered agents", which means they have passed a series of tests, licenses for the State Securities Trading Committee and the New York Stock Exchange, can sell securities.
Each broker has to handle 300 to 600 accounts, with an average account balance to $ 90,000 to $ 130,000. However, this huge average is somewhat incorrect. Because for a broker, only his 10% to 20% of customers burden 80% of the commissions and expenses he charged (often referred to as "total output value"). In 1997, the average of $ 39 million in total production is $ 160,000 in income. The best agents can get more than 1 million income every year. The company usually motivate brokers to launch special products. The company often invites excellent brokers to participate in the company's broker club, and give them a tourist holiday as a reward. According to industry analysts, new brokers have a success rate of approximately 50% to 60%, and the average training cost of each broker is $ 100,000.
In addition to retail business, most comprehensive service brokerage companies have also established a large number of asset management services to develop private mutual assistance funds, management pension plans, company and other institutional financial assets. Based on these assets, Merrill Lynch, Salomon Smith Barney, Morgan Stanley Dean Witter, Prudential, in 1998, in the forefront of 20 mutual assistance funds in the United States. Bank investment, market and other trading activities account for 40% to 60% of the net income of comprehensive service companies, which also have a large-scale asset and hundreds of fixed-income researchers.
The development of online transactions in the budget industry has deeply influence the discounted industry. It is estimated that in 2002, 90% discount customers can trader online. At the end of 1998, there were 100 companies to offer online transactions, and only 60 in 1997. However, 10 largest companies have controlled 90% of their daily online transactions. Most online companies are existing financial services companies, including branches of a comprehensive service brokerage company, traditional discount company and mutual fund company. At the end of 1998, the online account totaled $ 3.7 million, with $ 78 billion assets, and plans to reach $ 20.4 million in 2003 and $ 31 million in assets. In 1996, an investigation and study of mutual fund shareholders in various retail channels showed that customers who were mainly purchased by the BREBCE purchased funds compared to users who were mainly serving brokerage companies, they were more young and willing to take risks. Other studies have shown that trading habits have also changed. Usually the customer of the comprehensive service brokerage company is 5 times a year, while the online agent's customers have 25 times a year.
Depending on the commission rate, the discount company can be divided into three levels. The first level is to provide the highest level of personalized services and the most widely used companies, such as Charles Schwab and Fidelity Broker. They usually charge a commission of $ 25 to $ 30 for each transaction. The second level is mainly some online experts, such as E * TRADE, and they charge each transaction to $ 20 commissions, they offer the same services as high-level discount companies (for example, you can get research reports and IPOS) ), But mainly relying on electronic information and tools to help customers. The third level is a brokerage company that is driven by the transaction, such as Ameritrade, who charges $ 8 to $ 10 a commission for each transaction, providing the least product and service. Lower levels and intermediate levels have controlled approximately 55% online accounts and 25% online assets, but high-level discounts have 43% of their accounts and 57% of assets, and the comprehensive service brokerage company has the remaining 2 % Accounts and 18% assets.
Although online services are increasingly important, Schwab and Fidelity continue to provide customers with services to customers and transactions (helping trading operators or brokers). For example, the four regional call centers of SCHWAB and nearly 300 domestic branches have dealt with 40% of all customer services in 1998, while the data is 50% in 1997. Most discounts of the company's phone operator's annual salary between $ 20,000 to $ 50,000, and quite stable. However, some companies also pay the bonus based on the number of phones handled every day. Schwab's telephone centers hire approximately 3,500 customer service staff, 60% of which are registered agents. In the branch, all staff is a service agent, and its annual salary is between 50,000 US dollars.
The discount of the commission for each transaction in $ 20 below $ 20 is usually no branch, mainly relying on the Internet for transactions. In order to establish brand awareness, stimulate account growth, these companies will use a lot of expenses for marketing. For example, E * TRADE is expected to pay 300 to $ 500 in marketing in 1999, and its advertising budget has increased to $ 210 million. The online brokerage company also hopes to vigorously expand its business in asset management, insurance and commercial financing through alliances or joint ventures.
In the 1990s, one of the most important product innovations in the industry is the mutual fund supermarket. In 1992, SCHWAB introduced a large scale of fund supermarkets. The fund supermarket will set up multiple management companies. Discounts no longer charges additional costs to our customers, but a fee of 0.25% to 0.35% of investment assets to the Fund. Since the fund supermarket has brought great convenience to customers, the fund supermarket is becoming an increasingly important distribution channel. In 1998, the fund supermarket accounted for approximately 1/3 of the fund sold directly to investors (ie, sold by brokerage). At the end of 1998, the Mutual Assistance Fund has a "combination" or "family" in the United States to operate more than 7,300 funds. In 1994, there were only 400 fund families and 5,300 funds. The largest five fund family - Fidelity, Vanguard, Capital Research and Management, Merrill Lynch and Putnam, accounting for more than 30% of the industry fund assets. In 1996, the latest information showed approximately 23 billion income and 7 billion tax profits. 60% of the new fund sales in 1998 were distributed through brokerage companies, banks and insurance companies. The remaining parts are sold directly to investors (23%) and to sell to institutions and retail investors (17%) through program and cost accounts.
The Mutual Association includes a shareholder who contributes capital, represents the Board of Directors and a Administration of Operational Funds (such as Fidelity) on behalf of the shareholders' interest. In addition to the implementation of investment functions outside, the Board of Directors shall sign a contract with the managers of fund assets, and the main subscriber of the distribution of the public and other companies. The investment management company can implement these functions in part or all of them. Investment Management Corporates management fees and 12B-1 fees from fund's assets to compensate for its expenses in funds distribution and marketing. In 1998, the average rate of equity funds (that is, the percentage of the total operating costs accounted for the average management assets).
Fund companies usually hire a large number of researchers to help investment program managers invest in decisions. Different facilities are usually required if you don't rely on the outside customer service and other funds to operate. A new fund's start-up cost is about $ 150,000, but it may also float between 30,000 to 300,000. In addition, before the Fund sells the shares to the public, the SEC requires at least $ 100,000 seed capital, and usually the fund needs to have 50 million capital to win.
In the late 1990s, most mutual funds success is due to their business gradually penetrating the retirement assets of individual investors. Between 1991 and 1998, the fund assets owned by the retirement account paid by the employer from 1650 US $ 964 billion. The mutual funds accounted for 42% in the event of 401 (k) at the end of 1998, and only 10% of the share of 10% in 1991. More than 27 million people participated in the 401 (k) program in 1998, and only 8 million in 1994, the data is expected to rise to 32 million in 2002, and the Control Fund has risen from 24% of IRA assets. 44% in 1998.
The mutual fund company uses the Internet to conduct marketing and transactions in the Internet. Recently, some companies upgrade their web pages, build a mature online agent, and provide stocks, bonds, and other securities. VANGUARD launched its own online agent at the end of 1998, and each transaction charges $ 20. It also hire a large number of investment advisers to provide customers with more services. Since it is expected that 1.2 trillion mutual fund assets will be transferred to an online account in 2003, the company has stimulated a lot of similar activities.
Commercial banks of commercial banks fell 8,800 by 12,700 in 1989 to the end of 1998. With the decline in legal barriers in the state ownership of branches, banks begin to merge with efficiency and expand their delivery networks. The banking industry has experienced some of the biggest mergers in the history of US companies. Comprehensive service brokerage company and insurance giant Travelers and commercial bank Citigroup's total merger were completed in 1998, and the US Bank and Federal Bank's 60 billion merges created the first double coast branch network. Banc One Company and the first Chicago NBD's 30 billion merger forms a bank in the central and western regions of the United States. After the dust is settled, the six banks led by the Citigroup generally points the remaining market. Commercial banks have been the largest financial manager in the United States, and now its market share is gradually occupied by other intermediary agencies. Their core business - collects the difference between customer deposits and loans - it began to shrink many years ago. In 1998, its net interest income accounted for 60% of net income, but since 1993, its net interest income has only increased by 5.6% a year. In the 1990s, with the gradual elimination of restriction barriers, banks began to expand their business in brokerage, insurance, asset management and other financial services.
Bank uses various distribution channels including branch, ATMS, telephone centers, and Internet, have a great difference in the cost of each distribution channel. If the customer is working through the banking staff, the bank needs to pay about $ 1.4. The customer only pays $ 0.4 or $ 0.2 by the Bank through ATM transactions or online transactions. The latest studies have shown that 73% of customers still handle business through bank salespersons, 62% of customers use ATMS, 45% of customers to go to the bank counter every month to handle 3 business. Just only 11% of customers use PC to apply for banking. It is estimated that 60% to 70% of the transaction of bank branches is not profitable. Therefore, many banks gradually turn to smaller design (such as visual trading booths) to reduce operating costs.
More and more banks begin to offer online services. In 1998, in the top 100 banks, there were 52 banking business based on personal computers, 27 network services for trading. The services they provide include account transfer, bill payment ($ 3 to $ 9.95 per month), lending application and decision, and using popular account management software. More and more banks are also providing online transactions and expert consultation. According to the latest survey, 15 of the top 100 banks provide some form online transaction, and the price of each transaction is between $ 15 to $ 30. Banks are also merged online transactions, including Toronto Dominion purchased Waterhouse Securities, Fleets Bank merged Quick-Reilly. Banks also competed with brokerage companies to sell investment products (such as Banc One and Wells Fargo jointly united with Morgan Stanley Dean Witter). Salomon Smith Barney arranges brokers to the bank to provide limited mutual assistance funds and pensions for those who have not covered by their branches.
Edward Jones
Edward Jones History
Mr. Edward Jones graduated from New York University. After spent 6 years of securities salesperson in New York, I opened my own brokerage company in the urban area of St. Louis, Missouri in 1992. In its early history, Mr. Jones and his company are like traditional brokerage companies, subscribe stocks and bonds and sell securities to customers. In 1994, Jones became a member of the New York Stock Exchange.
Until 1955, in Edison
China
Under the leadership of Mr. Ted.jones, Jones began to establish branches in the rural market. Based on his experience in the Midwest, Thair Jones believes that rural investors are ignored by most brokerage companies. He speculated that in many small towns, Jones's branches will be the first alternative to local banks, although his father hopes that he can carry out business in the metropolis, but Ted decided to only 12,200 people in Missouri. The first branch of the company opened. By 1967, Jones had 62 branches of branches scattered in small towns in the Midwest. In the late 1960s and the early 1970s, like many companies in Wall Street, Jones also faced a serious economic issue, almost collapsed at the pressure of the Bear and the background office crisis. The general economic recession makes John Bachman to plan a memorandum for Ted. In the memo, he summarizes a series of action steps, including from 100 branches to 1,000 goals (see Table 4), Badman is a broker responsible for long-term plans and company finance. Bashenman believes that Jones must use its unique rural market resources before other competitors do not act. After adopting the "Action Plan" of Bawan, the company gradually recovered with the financial market in the late 1970s and in the late 1970s, and became one of the company implemented a paperless trading system, thereby alleviating the background office. Difficulties.
In 1980, Bayman became the business executive of Edward Jones (the company has 304 branches), starting challenging into a new rural market, and enters the metropolis market for the first time. In 1986, the company has 1,000 branches. By 1990, 65% of its 2,650 branches are located in the suburbs of the big city. In 1993, Baximan claims that it has reached 10,000 branches in 2000. In 1994, Jones did its first international institution in Ontario, Canada. However, in 1995, the company was forced to delay its goal of 10,000 branches to 2004, which was postponed for 4 years. Rapid growth accelerates the consuming rate of brokers, and the performance of a broker who is less than 24 months has declined. Jones re-established a broker training and development plan, including new screening standards for broker applicants, 1996 Jones's branches resume large-scale growth.
Although Jones has slowed down in 1995, between 1990 and 1997, Jones still achieved a broker year increasing 13% a year. And the daily net revenue increased by 26% in this period (see Table 5 and Table 6). By the end of 1997, Jones had 3,790 branches in the United States, with 106 Canada. In 1998, the company plans to start 33 branches in the UK, and 8 of them will be equipped with experienced brokers from US companies.
product and service
Broker Edward Jones offers a variety of brokerage products and services, but the company is only distributing the individual producers' products without developing any internal mutual assistance funds or other private investments. Jones's brokers usually recommend large stocks to customers, cautiously choose Open Mutual Assistance Funds, Retirement Vendors, Treasury Bonds, Municipal Bonds and Corporate Bonds and Deposit. Jones does not sell options or goods. A closed mutual assistance fund will only be provided when the company is trading in their net assets; preferred stocks are only available when the priority stocks are repaid. Edward Jones's brokers rarely recommends the original public securities, and will not pay for stocks for export transactions per share per share, almost every Jones's brokers have obtained sales insurance. license. The company has reached an agreement with multiple national insurance companies to provide life insurance, medical insurance, and fixed and variable retirement annuity, where retirement is the main part of its sales insurance.
Jones encourages diversification and encourages minimal investment portfolio. If the broker can achieve a set of a variety of levels in its customer portfolio, you can get a travel holiday. The broker never received a reward because he launched a special product. In 1997, the stock list recommended by Jones is only 6.3%, and the list of many other brokerage companies will exceed 100%. On average, Jones's clients hold an average of about 20 years, while the general individual investors will sell a fund every 3 years. In 1997, the commission received from securities and insurance reached 81,8 million US dollars, or almost 75% of net income from sales securities and insurance commissions. The commission rate listed by the company is consistent with other comprehensive service brokerage companies. The Mutual Association is the biggest source of Jones's commission income, mainly including 1% to 5.75% of the sales value (see Table 7). Jones is the largest distributor of Putnam and capital research and management mutual fund family. The Fund Group is very envious of the distribution channels throughout the country and its long-term investment philosophy. Although Jones has more than 100 sales agreements, it still maintains business links with seven fund families sold to almost 95% of their mutual assist funds. Jones's Product Inspection Commission is agency that identifying all the main products and services provided to consumers, responsible for adding or decreasing or decline from their securities list.
In addition to commissions, 1997 Jones received an asset-based cost and other costs of $ 209 million. The service cost of the Mutual Assistance Fund is the most important source of cost income, about 110 million US dollars. The company's seven preferred mutual assistance funds also pay the annual income for annual income according to the customer assets they hold. According to the different fund group, these costs were charged at 0.15% to 0.25% of assets, reached $ 22 million in 1997. Jones also won income from insurance companies ($ 30 million US dollars), from customers to get the cost of monetary market ($ 36 million) and IRA account ($ 12 million).
Investment Bank Industry Edward Jones restricts its investment banking activities, cautiously subscribe stocks and bonds. In 1997, the company subscribed 140 securities. Including 4 separately managed securities, 27 joint management of securities, with $ 4 million in income. From 1992 to 1997, almost 90% of the company's stock trading involves gas, water or electricity. As a member of Jones, as a member of Cindida, the company subscribed stocks involved a wider industry. Jones does not think that the investment banking is a department with its own profit and loss. All subscription costs and other income are returned to the broker.
Like most broker companies, Jones has forms 16 research analysts (13 of them research assets) a specialized sector similar to customer issues and technology. One analyst of the company describes the company's investment model into a mixture of growth and value investment. "We are not interested in hot stocks or very cheap stocks. We like those companies that have been established, growing, because we can buy their stocks below their real long-term value." Zacks did in 1997 A investment study shows that in 15 major brokerage companies analyzed, the stock list recommended by Jones has a minimum replacement rate of 16.3%. The stock list recommended by Jones also brought the highest annual income (39.5%), and its investment plan has the highest capitalization level ($ 39.53 billion).
Market and Executive Trading Jones companies involve various off-site companies securities, municipal bonds, US government bonds, unit investment trusts and mortgage securities. In the process of market, Jones will venture our assets. But unlike most of the comprehensive service brokerage companies: it never trades your account. Like all brokers, in order to implement customer buy (or sell) commands, Jones either buy (sell) securities in the open market, the so-called commissioned transaction; either decrease (or increase) market or other exchanges Come stock. Most stock trading is done on the basis of commission; however, fixed income sales are mainly inventory transactions. Jones has a higher net capital reserve than most brokerage companies. In 1995, Bank Services In 1995, Jones has purchased $ 8.6 million Buen National Savings and Loan Institutions in Colombia, Missouri, as it provides bank trust services to 50 states nationwide. By 1998, trust institutions have no profit, but the company believes that this is better than expected. Jones believes that its trust institution has better performance than the trust mechanism of other brokerage companies. In 1998, Jones always coincided with the company partners in early stages of additional banking services to their customers. These services include: free credit card, housing mortgage, and share capital loans (divided into five or five Northwest Group), as well as small commercial loans (combined with Merchantile Bancorp).
Online Services on Jones's website (www.edwardjones.com), each broker has its own web page, which releases photos of his (or her) and its interested stock list. Investors can see the price of the Mutual Assistance and the stock to choose, and you can send questions to the broker in e-mail. Jones plans to provide online services in account balances and banking services at the end of 1999, such as online services. The company decided not to provide online trading services because it believes that its customers are not good at "self-service" service. In general, Jones does not think that the network service can reduce the time of the broker in administrative affairs, so that the efficiency of the broker can be improved. But the network can provide customers with a convenient way to contact the company 24 hours a day.
client
Jones specially carses personal investors' preference and regards its brokers as "informed buyers" between their customers and many investment products. The company is proud of its facialholding customer service, and a supervisor describes the client of Jones as "knowing that I don't understand the informed investors". Various internal studies have shown that most Jones customers want to have a comfortable old age, economically independent, and can maintain a peaceful mentality. Jones divided its customers into three classes - retired groups, retired people, and small owners (SBOS).
· Retirement is the 65-year-old and 65-year-old person who have no active employment. They brought 50% commission income for Jones (see Table 8). Jones's retired customers are often very concerned about its asset storage, hoping to provide good economic guarantees for their legacy, and do not become the economic burden of the family and can smoothly transfer their inheritance or real estate.
· The front-end population includes 18-64 years old before the full-time employment. They often need help in economic and retirement programs, and are ready to buy a house or send a child to college. This part of the population hopes to minimize tax burden of its investment.
· SBOS is a small business owner hiring 5 or less than 5 employees. The investment objectives of this group are similar to retired people, but they also hope to guarantee enough capital for their companies.
Jones organizes some professional people to provide relevant knowledge for new customers such as lawyers and registered public accountants (CPAs). In order to establish contact with these occupational people, the company has established continuing education programs and other discussion classes, and continuing education programs and discussion classes through the company's satellite TV networks to each branch. For example, in Missouri Colombia, the CPA does not need to leave the city, you can participate in the discussion class to explain the nearest changes in the federal tax law. Clients join Jones from Adult Education Cranes are usually the company's most profitable customer. Jones's $ 2.85 million average account balance is approximately $ 50,000, and more than 85% of the company's account is only $ 500 commission for the company (see Table 9). About 50% of customers only have only one investment product, usually a mutual assistance fund. It is estimated that the company has a separate connection with 2/3 customers. However, 96% of customers who have 3 or more investment products believe that Jones is their only broker. Among the Jones's customers, the most popular brokerage company is A. G. Edwards, Merrill Lynch, Morgan
Stanley
Dean Witter, Salomn Smith Barney Company and Fidelity Broker.
Branch network
The office of almost every Jones branch is equipped with an investment agency (IR) and a branch administrator (BOA), which is mainly responsible for dealing with customer transactions, documents, daily customer consultation and company letters. The area of the branch is about 700 to 900 square feet, including two to three rooms. A competitor of the company commented: "The Office of the Branch of Jones is like the living room of someone."
The daily work in the investment agent (IR) in the branch is a lot. The broker should meet in the office and the customer, host the investment discussion class, answer the phone, etc. Customers usually visit the way on the way to get off work, and enter the branch will feel very comfortable. New brokers often spend a lot of time, developing customers near their branches.
The branch is the only profit center within the company. Every broker is not only responsible for the company's commission income, but also guarantees the profitability of your branch. Revenue and expenditures, including mutual fund service fees, other commission revenues and the company's daily expenses will be returned to branches. In addition to the allocated daily expenses and equipment costs, direct costs such as rent, BOA salary, and 50% of postage expenditures from branch's balance sheet (broker privately assumed another half of telephone charges and postage). In 1997, the company's average annual operating cost was $ 132,000 per branch, including a direct cost of $ 41,000 and a total cost of 91,000.
A new branch has a average pre-cost of $ 48,000, mainly including customer network equipment and laser printing fees ($ 17,000), satellite disc cost ($ 10,500), furniture and identification fee ($ 10,500), rental maintenance fee (7,000 Dollar), as well as DVD players, copiers and other devices ($ 3,000). On average, a new broker spends 18 months to compensate for about $ 50,000 in addition to training costs in addition to training costs.
Location, organizations and places choose to have the largest rural market in several leading brokerage companies. However, about 67% of its branches are located in urban areas. The company believes that competitors and branches in the market are in terms of urban or rural areas, and the skills of brokers have more impact on the company's profitability.
Jones has divided its brokerage networks into 5 areas. 102 brokers play a role in regional leaders. Regional leaders are usually experienced by experience, they voluntarily help manage new brokers, and arrange for each broker to accept guidance, responsible for coordinating various collective activities and occasionally to each branch. They are not paid because of these additional work, but they have the right to become a company's general partner member (GPM) (see "Cooperative Relations") In order to achieve 10,000 branches, Jones identified one The plan for the establishment of 8,000 new branches in urban rural areas. New brokers can but do not necessarily choose from this list. The choice of rural branch location depends on the population information of the rural area, such as the population, 55 years old, the amount of interest and dividend income reported by the personal 1099 federal tax form. In general, Jones's leaders think that there is no need to transfer, you can achieve a branch of branches every 7,500 people.
Jones tried to build multiple branches in major urban areas, but the site selection was very cautious. In many cases, the first branch of the suburbs is not in the central location, but is located in the region, which will reach the largest coverage of the area. Early in the early 1990s, new brokers had to obtain licenses to open a branch of Jones, but this limits Jones's market share in a particular area, because of the sophisticated broker usually reaches a stable After the number of customers, there is no power to expand further. At the Headquarters of the St. Louis, Jones has developed a broker group that "keep customers". Badman eventually canceled these regulations and opened the market and implemented competition in multiple branches. Take Savannah, Georgia, Boise, Idaho, these secondary cities, Baximan hopes that the company's branch is concentrated, can build brand awareness and become an influential brokerage company in the market.
In 1998, Jones began to selectively increase the broker to branches of 1,500 to 2,5000 accounts. This is part of the "Good Knight" program, which is named from Joplin, Missouri JIM Good knight, he first filed this plan. The branch of the agent is transferred to the new broker to the new broker in a branch agent (usually the most difficult customer), and the new broker will transfer new branches to the same city within 9 to 18 months. This plan is a difficult sales of forward line staff, while frontline people don't appreciate extra competition. However, Bayman will point out Joplin, and Good Knight transferred his least active account 3 times. There are three new Joplin branches that have entered the row of 250 branches of Jones.
Branches support and information system brokers depend on St. Louis support. The central service department has 130 full-time auxiliary employees (FIES), solving the procedural problems of all brokers and BOA. In 1997, Jones's support employee and sales assistant and productive ratio of 1.64, while Merrill Lynch has only 1.57. Among the companies of NYSE, non-productive personnel's ratio for productive personnel is 1.46. In order to achieve the goal of 10,000 branches, Jones plans to employ 8,500 employees to support expect 6,000 new agents (see Figure 1).
Figure 1 Compliance with full-time employee of Edward Jones
1997a
2004E 1997-2004 Investment Agent 3,954 10,000 6,046 Branch Administrative Director 4,236 10,500 6,174 St. Louis Manager 360 700 340 Total 10,430 25,000 2,010 Total 10,430 25,000 14,570 Each investment agent support rate 1.64 1.50 1.41
With the beginning of the paper trading in the 1970s, the company has conducted a lot of investment in information technology, including the 1987 investment of 32 million to establish a satellite network and a 250,000-year-old customer compute system. Jones's satellite networks are the largest in the securities industry, responsible for processing information flowing between Shengluo-headquarters and each branch. Stock and bond transactions are also input computer systems by investment agency or branch administrative supervisor, transmitting decisions through the network to the Shengluos Headquarters. Within 20 seconds, the confirmation information of the transaction can be transferred back. Stock market data, internal company information and other financial information can also be transmitted through network. The technical support of the system is provided by 730 FIE information technology groups in the San Louis Headquarters. In 1989, Jones began to broadcast TV programs through satellite networks. The company has its own TV station, and 300 programs have been made in 1997. Almost 30% of programs are customary, and include some investment symposiums, Wall Street senior analyst representatives and skills experts. The remaining programs focus on proceedings of brokers and branches personnel training and brokers and customers.
Investment agent
Jones tried to recruit those independent and innovative employees. Bashenman believes: "Jones is based on personal free awareness, and respects people's innovation. We must attract people with higher achievements and those who pay attention to free management of their own branches and business people. "
Jones's brokers have a variety of backgrounds, including former CPA, teachers, lawyers, and even pastors. Less than 10% new brokers come from other companies. Unlike other companies, Jones does not pay the startup funds to attract people to mobilize. The company also has some brokers lost to other companies, but they also attracted some other companies' brokers, basically make up for losses. In 1997, Jones had 360 brokers left the broker or tunned to other companies.
In the process of recruiting new brokers, the company emphasized independence in the operation of branches, training programs, and salary programs. Jones is not well known, which sometimes hinders its recruitment work. The company relies mainly on existing brokers as the reference resources of their recruitment. Compared with other companies' brokers, Jones's brokers have a good impression on their company.
In 1997, Jones had 25,000 candisters, of which about 6,000 officially applied for a position to the company. The Gallup organization screens out about 1/2 job seeker through a telephone interview. The telephone interview mainly determines whether the job seeker matches Jones's "Ten Successful theme", including confidence, persuasiveness and risk willingness. Recruitment does not require job seekers to have university cultures, but job seekers must have a stable professional experience, and in their vocational experiences, income and responsibility are constantly rising. After passing the phone interview, the candidate of the candidate is usually interview with an investment agent that has received interview skills. If you have passed the investment agent interview, background testing and drug testing, your job seekers can get positions. In 1997, Jones hired more than 1,000 investment agency.
Train
In the first two months of training, the new broker must be at home, and prepare a series of 7 tests and the history and cultural test of Jones. The National Securities Trader Association requires each investment agent to pass the series 7 test, and each The broker has only one test opportunity. Jones arranges 5 academic training tutors (ATL) and a tutor known as SST series for each student. ATL and SST observe the progress of the students in the San Louis Headquarters and score for their self-study test. The company believes that its new broker has passed by 92%, which exceeds only 10% to 15% of other comprehensive service brokerage companies.
After the history and cultural test of the series 7 tests and the company, the students came to the Five-day meeting to the St. Louis Headquarters. The conference content includes the rules of "Understanding your customers", as well as introducing general broker skills and techniques to develop customers. Students have to spend 3 weeks, observe customers, training and customer contact skills, study branches of administrative management, and talks with other investment agent. In the next 4 weeks, students have to start market research in the new branch location of his (or her), and require the first time to establish 150 customers, and also develop a recent business plan. Then, the student returned to St. Louis, staying for 5 days, further improving their skills, accepting the training of the Development Tutor (DL), and meets the 150-bit customers in the first time. In the 120 days of this, St. Louis's DL is responsible for supervising these investment agency students. Once these students completed the 5-day life in St. Louis, they officially became an investment agent and worked in their market. About 85% of the students in 1997 became an investment agent. The first 120 days of investment agency is the key to its success, and the company also provides powerful commissions and customers. In the new investment agent, 85% to 90% completed the established goals and entered the last stage of initial training, the Profit Development Plan (PDP). PDP requires investment agency to study in St. Louis and further increase its product knowledge and sales skills, and learn the company's marketing plan. The company also helped new investment agencies to recruit and screen branch administrative directions (BOAS) for its branches.
After the trainee passes the quiz of the Series 7, they can get $ 1,500 of income per month. After all tests, their income will increase to $ 2,000 per month, or pay by the commission income created. In addition to paying the students, 1997, the total training cost of each new broker is $ 50,000.
In the career after these brokers, they also requested participation in the continuing education course, and many continuing education courses are broadcast through television networks. The company has recently established a leadership development center that brought brokers from branches to St. Louis Headquarters and evaluates its internal leadership potential in the company. Through a series of roles and discussions, the leadership of these investment agents can be scored in the leadership model of Jones. The ideal leader of Jones is to put our customers first, respect the company's history, value, and culture, in fact, instance, and maintain the talent, and have the work and have the master's consciousness.
Remuneration
The salary level of Jones brokerage accounts for the percentage of the total commission is on the same level. The broker won 36% to 37% of the total commission as direct income, plus 3% to 4% as an incentive tourism and other benefits. Jones pays a fixed percentage of the profits of each broker 3 times a year. This percentage floats between 0% to 5% depends on the company's total profitability. In general, the bonus's bonus can reach 7.5% of the total commission, but may be as high as 25% in special cases. In 1997, the branch bonus was 6.7% of the total commission (see Figure 2).
Figure 2 Edward Jones Investment Agent Remuneration
Total (million US dollars)
Each investment agent income ($ 1,000)
Proportion of commissions
Total commission
818
217
100
Direct payment, travel, etc.
340
90
41.5
Branch profit bonus
55
15
6.7
Profit sharing
20
5
2.5
Total investment agent payment
415
110
50.7
The company also leaves 24% of net income every year as profit. In 1997, about 75% of profits were assigned to brokers, this assignment was based on the share of each broker in the company's net commission and bonus. In short, although some brokers reached more than $ 500,000 in 1997. However, in general, the average per broker can increasing $ 110,000. As discussed below, the broker is eligible to become a limited partner of the company. In 1997, the average of each limited partner investment agent was able to get $ 14,000. marketing
From a historical point of view, it is called by the investment agent or advertising in the local area is the main means of promoting the brand of Jones. One of the earlier agents of Zeke McINTyre, Jones, I have said such a slogan: "If you want to buy a low price, sell high prices, please call ZEKE." St. Louis Headquarters also produces a variety of brochures and Current events, and other information. The broker can selectively give them to the customer. About 1,700,000 newsletters from 1997 were mailed to investors.
In the mid-1990s, the network of Jones's branches has been great enough. You can advertise within the country, and the company began to pay attention to the promotion brand. The company removes D. and Co., from the company name, and requires all brokers to use the same branches. A survey conducted by the company in 1997 showed that only 4% of investors know the name of Edward Jones. In the four core markets, Indianapolis, Oklahoma, Topka and Wiqi Tower, only 30% of investors know Edward Jones. In the same market, customers have higher knowledge of their competitors: such as Merrill Lynch (96%); Dean Witter; Smith Barney (60%) and A.G.edwards (40%). Jones's own research shows that in addition to Merrill Lynch, investors cannot distinguish other comprehensive service companies. Jones's customers are often highly evaluated to Jones companies in areas such as responses, recommendations, and communication skills that are important to them. And other companies' customers think that their brokers don't have much in these respects.
Jones plans to launch a national TV advertising battle in 96 markets that cover 40% of American TV users and 75% Jones customers. The cost of this advertising war is estimated to be 8 million US dollars, and 40% to 60% of investment agents must participate.
Partnership
At the beginning of 1998, Edward Jones is the last private partnership company in the main comprehensive service brokerage. In its history, members of the partners are mainly a small number of general partners (GPS). In the 1970s and 1980s, the company has established two forms, limited partners (LPS) and subsidiary limited partners (SLPs), providing more employees with sharing company profits, the establishment of partnership is also The company has brought more funds. In 1997, the Limited Partner (LPS) and Affiliated Limited Partner (SLPS) have contributed $ 130 million in capital.
In general, members of St. Louis Headquarters have purchased a limited partnership capital in the company's two-year assistant and investment agents who meet the company's specific profit objectives. The 1997 Limited Partner (LPS) contains approximately 2,600 employees, with a total of $ 24 million. The company's 71 subsequent limited partners (SLPs) only included the previous or present general partners (GPS), only $ 12 million in 1997. The General Partner (GPS) contains 139 employees, and they have the right to obtain remaining partners' income ($ 86 million in 1997) after LPS and SLPs. Every year, Jones leaves 30% of each GPS share to the ongoing business, so the actual payment for GPS is $ 62 million in 1997. The company often requires GPS to leave 1/10 partner capital annually, with GP capital, replace cash or SLP capital. leadership
Bashenman and the 16 management committee members often assess the company 's competitive status. Bashenman seeks help to many external experts, including Peter Drucker, asking them to help companies design long-term strategies and make recommendations for new products. DRUCKER Description Jones is a Union of the Union of Entrepreneurial Mental Units Controversy, Altitude Autonomous and Entrepreneurial Units.
Bashenman spends a lot of time to communicate with employees and external members. Jones also opened a seminar including basic strategic analysis and its competition for Jones companies for more than 100 senior managers. Bashenman spends time to participate in each new investment agent training course, and communicate through the satellite network from time to time. Although the company's book value rises up to 10 times, each employee of Bawns and the company firmly believes that the company is still independent and private. When they look forward to the future, Bashenman and company employees are still full of their choices.
Table 1 Financial assets of US residents (US $ 1 billion)
Minimum multiplier estimation 1
1980
1990
1995
1998
1980-90
1990-95
1995-98
Direct or "mobile" assets:
Company equity
$ 894
$ 1,778
$ 3,995
$ 6,300
9.5%
14.1%
16.5%
Bank savings
1,455
2,900
2,916
3,415
7.7
(0.2)
5.4
Mutual funds
46
468
1,265
2,498
32.3
22.3
25.9
US government and municipal bonds
270
1,104
1,313
1,113
15.7
4.5
(6.1)
Money market is divided into
62
365
449
740
14.0
2.3
17.9
Company and foreign bonds
68
264
505
458
18.5
12.2
11.6
Subtotal
$ 2,795
$ 6,878
$ 10,444
$ 14,542
10.5
7.6
11.6
Other financial assets:
Pension Fund Reserve:
Government retirement fund
$ 275
$ 1,264
$ 2,042
$ 3,013
16.5%
10.1%
13.8%
Private customizes 2
-
743
1,424
2,211
Nm
13.9
15.8
Private established
524
894
1,353
2,144
5.5
8.6
16.6
Life insurance company
172
596
1,002
1,356
13.2
10.9
10.6
Bank private trust
265
552
803
1,274
8.3
6.5
17.4
Life insurance reserves 3
221
392
566
718
5.9
7.6
8.3
other
2,333
3,664
4,189
5,024
4.4
2.6
6.5
Total financial resources
$ 6,585
$ 14,983
$ 21,823
$ 30,265
9.1
7.1
11.7
1 Calculate the minimum multiplier calculation based on the specified range of all years.
2 Includes 401 (k) plans and federal employee retirement power savings.
3 includes a federal government life insurance plan for $ 34 billion in 1998
Table 2 part of the largest US retail brokerage company, January 1998
agency
Types of
Registration representative
Branch
Retail
Institutional
domestic
foreign
Big city's proportion 1
Merrill Lynch Company 2
Comprehensive service
14,475
852
695
50
87
Salomon Smith Barney Company
Comprehensive service
10,319
878
442
41
90
Morgan Sanole Dean Witter
Comprehensive service
10,000
2,000
420
Twist
93
AMEX Financial Consulting Company 3
advisory
8,776
-
3,328
-
N / a
Prudential securities company
Comprehensive service
6,473
229
261
33
96
Paine Webber 4
Comprehensive service
6,249
71
292
Seduce
96
A.G.edwards
Comprehensive service
6,169
72
592
-
74
CHARIES SCHWAB Company 5
discount
4,915
29
271
1
100
Fidelity Broker 5
discount
4,702
475
98
3
100
EDWARD Jones
Comprehensive service
3,954
-
3,790
106
67
1 This includes only the US branches of the United States. The range of large cities is determined by the US management and budget.
2 includes 180 domestic satellite branches.
3 Includes 7,273 separate contractors in 3,148 institutions.
4 Includes three domestic satellite branches and 7 foreign satellite branches.
5 Many Schwab companies and Fidelity's brokers in the company's call center.
Table 3 Part 3 Compare, 1997 ($ Million USD)
Edward Jones
Merrill Lynch2
MS DEAN WITTER1
Salomon Smith Barney 2
Paine Webber4
A.G.edwards
12/31/97
12/31/97
12/31/97
12/31/97
12/31/97
12/30/97
Net income
$ 1,091
$ 15,669
$ 11,866
$ 10,947
$ 4,112
$ 1,931
commission
71%
30%
17%
27%
36%
56%
Major trade income
15%
twenty four%
31%
twenty three%
26%
11%
Cost income
7% 3
185
twenty one%
16%
13%
15%
investment bank
1%
18%
twenty three%
19%
11%
9%
Net interest
4%
7%
7%
14%
10%
9%
other
1%
4%
1%
1%
3%
0%
cost
$ 977
$ 12,619
$ 8,289
$ 8,289
$ 3,439
$ 1,514
welfare
62% 4
51%
46%
55%
59%
64%
equipment
12%
10% 5
4%
4%
7%
5%
communication
7%
N / a
5%
5%
4%
5%
advertising
N / a
4%
3%
3%
2%
N / a
Minimum broker cost
1%
3%
4%
4%
2%
1%
Expert fee
N / a
5%
3%
2%
3%
N / a
other
7%
7%
4%
4%
7%
4%
Pre-tax income
$ 114
$ 3,050
$ 3,597
$ 2,658
$ 673
$ 417
1997Dupont ratio
Pre-tax ros
10%
19%
30%
twenty four%
16%
twenty two%
Net income / average. Assets
74%
6%
5%
4%
8%
46%
Average assets / average shares 5.1
33.2
N / a
32.4
29.9
3.1
Pre-tax ROE
40%
40%
N / a
33%
37%
31%
Average tax before ROE
1990-1997
36%
33%
N / a
N / a
20%
31% 6
1995-1997
34%
37%
N / a
34%
26%
30% 6
Other operational information
employee
11,000
56,600
47,000
34,400
16,627
12,810
Retail broker
3,954
14,475
10,000
10,319
6,249
6,169
Shares analyzen
13
438
177
212
54
42
Branch
3,896
745
448
483
299
592
Retail customer assets (billions)
$ 144
$ 1,0377
$ 302
$ 6548
$ 2978
N / a
Retail account (million)
2.9
9.07
3.5
5.08
2.98
¬2.1
The broker of each institution
1.0
19.4
22.3
21.4
20.9
10.4
Account of each broker
720
620
350
490
470
340
Assets for each account
$ 50K
$ 120K
$ 90K
$ 130K
100k
N / a
1 Expect the impact of Morgan Sanoley / Dean Witter, only include information on securities and asset management.
2 It is expected that the impact of Salomon / Smith Barney combines, in addition to the $ 838 million reconstruction costs.
3 Contains the completion of insurance income of $ 30 million in insurance funds and total $ 30 million.
4 Contains other taxes payable and $ 35 million.
5 Contains communication fees, depreciation fees and costs.
6 averages have been continued until February 1998.
7 is estimated in accordance with the publicly available information.
8 includes agency.
Table 4: Memorandum of John Bashenman
To: Tyd Jones
From: John Barthman
Theme: Edward Jones's future
- Through some years of experience, we know how to operate small branches and make it profit.
- Excellent talents will go to our company to find work.
- Our company's growth will be restricted by our ability to deal with problems, rather than being limited by lack of opportunities.
- Our new branch is marked with the turning point of our company.
From today's five years, we have patents about small branches, or we have been developed by our company. In the future, we have more knowledge than other companies in this business. At this point, we don't need more new ideas, but it is necessary to plan and administrative mechanisms to make large-scale implementation of our existing ideas.
We have developed the development of these companies such as McDonald's or Holiday Inn, more harvest more than research Reinholdt & Gardine or Goldman Sachs.
It has already reached the time for the following things:
1. Comprehensively, we have learned everything,
2, accurately determine our goals,
3. Establish a mechanism that achieves its goals.
For future plans must quantify and form a text. We only know what business do you want to do, don't want to do anything. Decisions will become simpler, more efficient.
If we can quickly enter the company's growth phase, there should be urgency and clear directions. Here are a simple summary of some action steps.
- 1000 branches will be opened as the primary goal, and to determine the schedule for implementing this goal.
- Our company's goal is to become the best retailer in the United States. We promise that the retail business means we need to expand the retail salesman team through everything they do.
- Establish a mechanism that can effectively manage and control 1000 branches.
- Accelerate development and further improve reporting skills, providing meaningful branches earnings data more quickly.
- Complete recruitment and hiring programs completely.
- Establish a plan to help employees in the following special period: (1) The first 180 days (2) Branch of the staff and the company's recession. - Develop a salary plan that can put the salesperson's income and branches profit.
- Establish an extension remuneration plan to avoid taxes and link employees with the company.
- Find a way for key employees to invest in companies.
- Learn more about the cost of headquarters and branches so that there is always a program that can reduce cost within 30 days in our office.
- Pay more and more attention to the rationality of the securities selected by employees in their daily work. Develop other consistency control methods.
- Determine the method of handling changes in capital requirements.
- Establish business accounting so that the assault accounting can quickly reflect the efficiency of our handling order.
- Develop business analysis to develop products with minimal needs and minimal risk. Before you need these products and projects!
- Create a formal plan for the management functions and to mention it as the same height as other plans.
- From now on starting boldly!
We are more or less to make the above work. This recommendation is designed to organize them into a company's leadership plan.
Table 5 Edward Jones Finance and Business Information, 1990-1997
year
Net income 1 (million US dollars)
Pre-tax revenue (million US dollars)
Pre-tax ROS (%)
Pre-tax ROE (%)
Branch
broker
Customer account (million US dollars)
Customer assets ($ $ nobi)
1990
$ 303
$ 23
7.4%
24.9%
1,600
1,664
1.21
N / a
1991
398
41
10.3
37.9
1,734
1,812
1.32
N / a
1992
541
62
11.5
49.4
2,185
2,262
1.48
50
1993
623
66
10.6
41.8
2,650
2,733
1.62
62
1994
632
54
8.5
29.1
3,312
3,341
1.93
68
1995
691
58
8.4
26.5
3,140
3,160
2.29
90
1996
916
93
10.1
35.8
3,400
3,580
2.55
112
1997
1,091
114
10.5
39.7
3,896
3,954
2.85
144
CAGR 20.1%
26.1%
-
-
13.6%
13.2%
13.0%
N / a
AVG.
-
-
9.7%
35.6%
-
-
-
-
1 Contains net interest income.
Table 6 Edward Jones's total financial form, 1995-1979 ($ 1,000)
Financial year
12
month
31
day
1997
1996
1995
Net income
commission
$ 772,027
$ 613,570
$ 451,952
Main transaction
166, 209
171, 903
142,916
investment bank
13,865
15,719
18,324
Money market and IRA storage fees
48,031
39,114
24,684
Interest and bonus, net profit
48,964
36,417
30,253
Other 1
42, 209
39,036
22,663
Net income
$ 1,091,305
$ 915,759
$ 690,792
Operating expenses
Wages and benefits
$ 643,025
$ 543,725
$ 406,012
Property and equipment
134,133
105,516
84,895
Communication and data processing
76,403
70,318
54,555
Copular payables and other taxes
34,964
29,557
23,661
Basic brokers and clearing costs
8,105
7,084
5,750
Other business expenses
80,491
66,671
57,733
Net (pre-tax) income
$ 114,184
$ 92,888
$ 158,186
Total assets
$ 1,554,798
$ 1,380,416
$ 1,045,501
Total partnership
$ 305,151
$ 270, 117
$ 248,294
1 Contains mutual assistance funds and insurance revenue.
Table 7 Edward Jones income from customers' product trading
1995
1996
1997
Buy and sell securities
$ 20.6bil
$ 27.3bil
$ 32.6bil
Mutual insurance fund
18.1%
21.7%
21.9%
Equity
33.0
33.3
40.2
Insurance
10.2
9.8
8.5
stable income
32.6
23.6
20.4
CDS
6.0
11.8
8.9
total
100.0%
100.0%
100.0%
Commission income
$ 539
$ 707mil
$ 818mil
Mutual insurance fund
30.2%
33.6%
36.3%
stock
24.3
23.1
27.8
Insurance
18.3
18.7
17.1
stable income
24.0
18.6
15.6
CDS
3.2
6.0
3.3
total
100.0%
100.0%
100.0%
Average commission rate
2.62%
2.59%
2.51%
Mutual insurance fund
4.36
4.02
4.15
stock
1.93
1.80
1.73
Insurance
4.70
4.94
5.03
stable income
1.93
2.04
1.92
CDS
1.38
1.33
0.92
Table 8 Edward Jones Customer Characteristics (except for the coverage account) *
Retireer
Unblened
SBOS
Total EJ account (thousands)
844
999
355
average age
70
43
42
Average annual income (thousand US dollars)
$ 37
$ 46
$ 85
Average net value (thousand US dollars)
$ 414
$ 226
$ 708
Total EJ Assets ($ $ $ $ $ $ nipple)
$ 74
$ 34
$ 24
Each account assets (thousand US dollars)
$ 87
$ 34
$ 68
The net value controlled by EJ
twenty one%
15%
8%
EJ commission percentage
50%
32%
19%
* Remove about 650,000 to keep your account and other non-classified accounts.
Table 9 Percentage of commissions of annual income, spring 1998 *
* Remove the inspector account and other non-classified accounts.
Table 10 The broker evaluates your company. October 1997
average
Edward Jones
Merrill Lynch
Smith Barney
PAINE Webber
Dean Witter
A.G.edwards
Prudential securities company
working environment
8.28
9.36
7.72
8.14
7.93
7.59
9.10
7.97
Sales of freedom of selling some kinds of products
9.07
9.90
8.16
9.08
9.16
8.02
9.78
9.08
Actual sales quota
8.75
9.52
8.12
8.90
8.58
8.78
9.28
8.08
Company employment and recruitment practice
7.61
8.84
7.75
7.08
6.90
7.00
8.19
7.52
expenditure
7.70
9.18
6.86
7.48
7.10
6.56
9.14
7.18
Auxiliary department
7.82
9.22
7.94
7.38
7.26
7.35
8.22
7.79
sales support
7.87
9.24
8.04
7.66
7.10
7.34
8.30
7.38
Sales assistant quality
7.48
NA
8.02
7.00
7.40
6.90
7.65
7.66
Sales assistant quantity
6.84
9.58
6.12
6.34
6.38
5.76
7.00
6.28
Quality of sales concept
7.86
9.14
8.22
7.32
7.78
7.62
8.20
7.64
Ongoing training
7.96
9.34
8.32
7.12
7.38
7.56
8.55
8.22
Quotation and information system
8.52
9.40
8.12
7.84
7.70
9.04
9.00
8.76
The company's quality
8.00
9.28
8.22
7.52
7.02
7.56
8.80
7.66
Account information
8.07
8.56
8.42
8.22
7.32
6.98
8.28
8.72
product
8.14
9.22
8.60
7.59
7.93
8.36
8.60
7.28
The quality of the company's research
8.25
9.16
9.12
7.08
9.02
9.42
8.10
6.86
Corporate fixed income pricing
7.56
8.86
7.61
7.58
6.74
7.37
8.51
6.58
The company provides the quality of products
8.62
9.64
9.06
8.12
8.02
8.30
9.18
8.40
management
8.49
9.48
8.84
8.46
8.08
8.55
8.99
7.80
Your division manager
7.98
NA
7.92
7.58
7.88
7.90
8.08
8.39
Company strategic focus
8.42
9.36
9.04
8.72
7.26
8.58
8.70
7.48
Company culture
9.17
9.86
9.12
9.02
8.94
8.94
9.74
8.76
The image of the company in the public
8.40
9.22
9.28
8.52
8.24
8.76
9.42
6.56
