Other Fees and Compensation Received by Edward Jones from Mutual Fund Companies

Edward Jones may receive other fees and compensation from mutual fund companies in addition to sales charges for the purchase of mutual funds and revenue sharing fees, which are discussed in detail elsewhere on this Web site. Many mutual fund companies pay Edward Jones ongoing service fees, also referred to as 12b-1 fees, for marketing and distribution expenses. A portion of these fees are paid to the financial advisor.

Edward Jones has entered into networking agreements and shareholder accounting agreements with many mutual fund companies, including all of our preferred mutual fund families, to provide certain services for the mutual fund companies. Networking is the automated, centralized record-keeping system through which mutual fund trades are executed and reconciled between a mutual fund company and a broker-dealer. Under the networking agreements, Edward Jones has agreed to perform certain duties including, but not limited to, account maintenance and reconciliation on behalf of a mutual fund company. Edward Jones is reimbursed by the mutual fund company up to $11 per account annually for its costs.

Edward Jones typically holds an omnibus account with a mutual fund company that represents its clients' holdings in the fund. Under a shareholder accounting agreement, Edward Jones agrees to perform the services of a transfer agent, such as tracking the holdings of a fund for an individual client and distributing dividends and shareholder information for the mutual fund company. Mutual fund companies pay Edward Jones up to $19 per account annually for these services.

Edward Jones may also be reimbursed by mutual fund companies for expenses associated with training and educational seminars. Edward Jones' preferred mutual fund families, as well as some nonpreferred mutual fund families, participate in such training and educational seminars.

Mutual Fund investing involves risk. Your principal and investment return in a mutual fund will fluctuate in value. Your investment, when redeemed, may be worth more or less than the original cost.

Investors should carefully consider the investment objectives, risks, charges and expenses of the mutual fund before investing. A prospectus containing this and other information about the mutual fund can be obtained from your local Edward Jones financial advisor and should be read carefully before investing.