The financial services firm Edward Jones announced its intention to acquire the Overlay Management Services capabilities of Natixis Investment Managers through the purchase of selected assets and an exclusive license for certain proprietary technology.
According to the terms of the agreement, Natixis IM will continue to serve as the direct indexing provider for the buyer’s UMA (Unified Managed Account) offerings, the latter company said in a statement.
“We are committed to investing in new technologies and capabilities focused on enhancing how we serve more clients, more comprehensively, and across different segments,” said Russ Tipper, principal at Edward Jones. “This includes comprehensive financial planning and an expanded range of products and services, including those traditionally focused on high-net-worth investors, which we will now offer to select clients,” he added.
From Natixis IM, the transaction was announced as “an innovative partnership with Edward Jones, our long-standing client.” The French asset and investment management firm said it is in a “unique position, thanks to its knowledge of UMA implementation, direct indexing, tax-loss harvesting, other capabilities, and best-in-class investment products to help Edward Jones substantially expand its client offering.”
Overlay management services play a critical role in the buyer’s comprehensive financial planning and investment management offering, enabling the implementation of client investments through a professionally managed diversified portfolio that incorporates tax strategies, aligning with their financial goals, the statement noted.
The transaction is expected to close later this year, at which point Edward Jones will assume the role of overlay manager for its U.S.-based UMAs.
“Bringing these services in-house gives us greater flexibility to innovate based on our clients’ needs,” said Tipper. “We believe this integration will further strengthen our competitive advantage by building deeply personalized portfolios, focused on what is unique to each client. Additionally, we expect these services to generate scale and efficiency for our branch teams, which may increase our financial advisors’ ability to serve more clients more comprehensively,” he added.
“We have always admired Edward Jones’ commitment to its clients through deep and personal relationships, and we are proud to announce this innovative partnership,” said David Giunta, president and CEO of Natixis IM for the U.S. “We are excited to move to a strategic form of collaboration with our long-time client, combining our knowledge of UMA implementation, our leading direct indexing expertise, and our investment management know-how with Edward Jones’ comprehensive financial planning and investment management capabilities, to benefit the unique needs and preferences of investors,” he added.
For Funds Society