Edward Jones Acquires Natixis Overlay | Investment News
Edward Jones will aquire Natixis Investment Managers’ overlay management services division, which will allow the firm to grow its portfolio incorporation and financial planning capabilities.
Since 2011, Edward Jones and Natixis IM have partnered, and the latest buyout will allow Natixis Investment Managers to continue as the “direct-indexing” provider to Edward Jones’ unified managed account offerings.
St. Louis-based Edward Jones aims to take on Natixis Investment Managers’ ‘overlay’ business in its push to offer “comprehensive” services, including financial planning and investment management to more high-net-worth clients.
Edward Jones previously outsourced these resources through Natixis, and following the purchase of the division, the broker-dealer will assume the manager role for Natixis Investment Managers’ U.S. UMA accounts.
The overlay services will help Edward Jones incorporate its clients’ investments through managed diversified portfolios, which include tax strategies.
As part of the purchase, about 40 Natixis employees will move to Edward Jones, a Natixis spokesperson told Connect Money.
“Bringing these services in-house gives us greater flexibility to innovate based on the needs of our clients,” Russ Tipper, principal and head of products at Edward Jones, said. “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.”
The transaction is set to close at the end of the year. Financial terms of the deal were not disclosed.
This move comes as Edwards Jones is aiming to enhance its offerings with “tailored” and “sophisticated” products and services for high-net-worth clients. The firm rolled out its first private client services offering, called Edward Jones Generations in March, for high-net-worth clients with at least $10 million in investable assets.
Edward Jones Generations clients will be allowed to access private market investments, including private equity, private credit, and private real estate, through the Edward Jones Advisory Solutions UMA program.
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