Related Parties

12 Months Ended

Dec. 31, 2023

Related Party Transactions [Abstract]

Related Parties

NOTE 16 – RELATED PARTIES

As of December 31, 2023, the Partnership leased approximately 11% of its branch office space from its financial advisors. The associated lease right-of-use assets and lease liabilities included in the Consolidated Statements of Financial Condition as of December 31, 2023 and 2022 were $114 and $116 and $105 and $106, respectively. Lease cost related to these leases was $45, $41 and $37 for the years ended December 31, 2023, 2022, and 2021, respectively. These leases are executed and maintained in a similar manner as those entered into with third parties. See Note 2 for additional information about the Partnership's leases.

Olive Street provides investment advisory services to the Money Market Fund and the twelve sub-advised mutual funds comprising the BB Trust, which are offered to clients of Edward Jones. Olive Street has contractually agreed to reimburse fund operating expenses to the extent necessary to limit the annual operating expenses of the Money Market Fund. For the year ended December 31, 2023, Olive Street earned $57 in investment management fees on the Money Market Fund with no waived fees. For the years ended December 31, 2022 and 2021, Olive Street and a former wholly-owned subsidiary of the Partnership earned $56 and $15 in investment management fees from the Money Market Fund, respectively, net of waived fees of $8 and $51, respectively. Olive Street also has primary responsibility for setting the overall investment strategies and selecting and managing sub-advisers of the BB Trust, subject to the review and approval of the BB Trust's Board of Trustees. The investment adviser fee revenue earned by Olive Street from the BB Trust, included within asset-based fee revenue in the Consolidated Statements of Income, is offset by the expense paid to the sub-advisers, included within fund sub-adviser fees on the Consolidated Statements of Income. The total amounts recognized for the years ended December 31, 2023, 2022, and 2021 were $260, $239 and $233, respectively.

Edward Jones earns certain fees from the Money Market Fund, some or all of which may be voluntarily waived. For the year ended December 31, 2023, Edward Jones earned total fees of $136, net of the $42 of waived fees in the period. For the year ended December 31, 2022, Edward Jones earned total fees of $103, net of the $89 of waived fees in the period. Edward Jones waived all $190 earned in fees during 2021. Edward Jones waived fees to limit the Money Market Fund's annual operating expenses, as well as to maintain a positive client yield in light of the low interest rate environment in 2021 and early 2022.

Edward Jones Foundation ("Foundation") is a non-profit organization that supports national, regional, and local nonprofits to advance a range of community causes championed by the Partnership, its affiliates and employees. The Foundation is governed by certain JFC general partners, and Edward Jones is the sole contributor of funds. Edward Jones contributed to the Foundation during 2023, 2022 and 2021, which is reflected in other operating expenses in the Consolidated Statements of Income. Contributions are voluntary and at the discretion of Edward Jones each period.

In the normal course of business, partners and associates of the Partnership and its affiliates use the same advisory, brokerage and trust services of the Partnership as unrelated third parties, with certain discounts on commissions and fees for certain services. The Partnership has included balances arising from such transactions in the Consolidated Financial Statements on the same basis as other clients.

The Partnership recognizes interest income for the interest earned from partners who elect to finance a portion or all of their Partnership capital contributions through loans made available from the Partnership (see Note 9).