Edward Jones has agreed to acquire select assets and technology from Natixis Investment Managers’ overlay management services business, a move that will shift control of a key investment function in-house as the firm expands its capabilities in financial planning and portfolio personalization.
Under the agreement announced Monday, Edward Jones will purchase certain overlay management assets and secure an exclusive license to proprietary technology currently used by Natixis.
The deal, expected to close later this year, will position Edward Jones as the overlay manager for its US-based unified managed account platform. Natixis will remain a direct indexing provider to Edward Jones’ UMA offerings.
The acquisition comes as Edward Jones continues to build out its wealth management platform with a focus on segmentation and personalized client service. Overlay management, which includes portfolio implementation and tax strategies, has historically been outsourced to Natixis. Moving these services in-house marks a significant operational shift.
In a statement announcing the move, Russ Tipper, principal at Edward Jones, highlighted the firm's “[committment] 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,” .
The overlay management function supports the firm’s broader push into comprehensive planning and direct indexing, a capability that enables customization at the individual account level. Edward Jones will now manage this layer of the investment process directly, providing more flexibility in how it implements tax-loss harvesting, rebalancing, and asset location strategies.
Tipper added that internalizing overlay management will not only support client-facing services but also improve efficiency at the branch level.
“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,” he said.
The move builds on Edward Jones’ recent expansion of its high net worth offering, Edward Jones Generations, which now includes access to private market investments and advanced financial planning. Announced in March, Generations is designed for clients with at least $10 million in investable assets, providing access to private equity, private credit, and real estate through the UMA platform.
The firm’s multi-year strategy has emphasized scaling its planning infrastructure, increasing advisor capacity – including a focus on helping advisors earn their CFP mark – and targeting a broader client base.
More recently in April, Edward Jones also took a second crack at establishing its own chartered bank in Utah.
Overlay management is seen as a foundational capability for building tailored portfolios at scale.
As part of the acquisition, Edward Jones will extend employment offers to some Natixis associates who specialize in overlay services. The firms have worked together since 2011, and Natixis leaders framed the deal as an evolution of that relationship.
“We are excited to transition to a strategic way of working with our long-time client combining our UMA implementation knowledge, industry-leading direct-indexing prowess and investment management expertise with Edward Jones’ comprehensive financial planning and investment management capabilities to benefit investors’ unique needs and preferences,” said David Giunta, president and CEO for the US at Natixis Investment Managers.
The transaction remains subject to customary closing conditions. Financial terms were not disclosed.
Edward Jones serves over 9 million clients across North America, with $2.2 trillion in client assets under care as of March 28. The firm has more than 20,000 financial advisors and recently applied to establish Edward Jones Bank, a Utah-chartered industrial bank, as part of its growing suite of services.
Crypto investor argues the federal agency's probe, upheld by a federal appeals court, would "strip millions of Americans of meaningful privacy protections."
Meanwhile in Chicago, the wirehouse also lost another $454 million team as a group of defectors moved to Wells Fargo.
Resilient market will be led by companies that don't shy away from deals.
Financial services compliance consultant ACA Group told InvestmentNews it had four clients report receiving emails that impersonated David Bottom, the SEC's chief information officer, with smaller firms being targeted.
Financial advisor Derek Wittjohann shares the lessons he learned after leaving a major wirehouse to set up his own practice in the second installment of InvestmentNews' new 'Independence Stories' series.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
