US broker-dealer Edward Jones said it intends to purchase overlay management services capabilities from Natixis Investment Managers (Natixis IM).
The agreement signed involves the acquisition of “select” assets as well as an exclusive licence for certain proprietary technology.
Financial specifics of the agreement were not revealed.
According to the agreement, Natixis IM will remain a direct-indexing provider for Edward Jones’ unified managed accounts (UMA) in the US.
The deal is anticipated to be finalised later this year, enabling Edward Jones to assume the role of overlay manager for its US-based UMA offerings.
Edward Jones said that overlay management services are integral to its financial planning and investment management services, facilitating the execution of client investment strategies through diversified, professionally managed portfolios.
These portfolios incorporate tax strategies and align with clients’ financial objectives. Previously, Edward Jones relied on Natixis IM to provide these services.
Natixis IM US CEO and president David Giunta said: “We have always admired Edward Jones’ commitment to serving its clients through deep, personal relationships and we are proud to announce this groundbreaking partnership.”
Natixis IM’s expertise in UMA implementation, direct indexing, tax loss harvesting, and other investment products has been a key factor in supporting Edward Jones.
The two firms have maintained a partnership since 2011.
Edward Jones is providing employment offers to some Natixis IM staff involved in overlay management services.
Edward Jones principal Russ Tipper said: “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.”
In March this year, Edward Jones introduced a new private client service, Edward Jones Generations, designed for high net worth individuals in the US. It will be available to select clients in Q2 2025, with a wider launch planned for 2026.
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