What You Need to Know
- The firm's growth in headcount and assets under care slowed in 2020.
- A spokesperson said the firm was "gradually restarting hiring" after pausing some hires due to the pandemic.
- Edward Jones has invested heavily in its digital strategy.
The number of Edward Jones financial advisors grew 3% in 2020 to 19,225 from 18,704 at the end of 2019, while total client assets increased 15% to $1.5 trillion, according to a 10-K filing with the Securities and Exchange Commission by parent company The Jones Financial Cos. on Friday.
Due to the pandemic, the firm paused hiring of non-licensed financial advisors March 24 through Aug. 31, 2020.
In 2019, advisor headcount grew 6% while assets under care grew 22%.
Net new assets for 2020 grew 3% to $66 billion, while the number of client households increased 4% to 5.7 million, the company said.
Client dollars invested through buy and sell transactions declined 3% to $114 billion, but inflows and outflows of client dollars into Edward Jones advisory programs jumped 32% to $41 billion.
Net revenue increased 7% to nearly $10.1 billion in 2020. Operating expenses increased 6% to $8.8 billion, “primarily due to an increase in compensation and benefits expense,” the company said.
“Financial advisor compensation increased largely due to an increase in revenues on which commissions are earned, an increase in the number of financial advisors, and an increase in compensation related to supporting new financial advisors and trainees,” it said. Home office and branch compensation grew mainly due to higher wages, according to the company.
“Edward Jones continues to grow its impact by focusing on hiring both experienced financial advisors and non-licensed candidates and increasing the number of clients and communities it serves,” according to an Edward Jones spokesperson.