Mutual Fund Families, Including Information about Our Preferred Fund Families and Revenue Sharing

With thousands of mutual funds in the marketplace today, you may be overwhelmed by the task of selecting an appropriate fund. Edward Jones believes you are better served if the firm focuses on a select group of mutual fund families that offer a broad spectrum of mutual funds. Of the many mutual fund families we offer, Edward Jones has designated fund companies as "preferred fund families." While our financial advisors may sell, and our clients are free to select, funds from many mutual fund families, there are financial incentives associated with the sale of funds from the preferred fund families, Federated Investors and Putnam Investments.

Edward Jones receives payments known as revenue sharing from the preferred fund families' advisers or distributors as well as from Federated Investors and Putnam Investments. Edward Jones, its financial advisors and equity owners benefit financially from the receipt of revenue sharing payments from the advisers and distributors of the preferred fund families, Federated Investors and Putnam Investments. As a result, Edward Jones' receipt of revenue sharing payments creates a potential conflict of interest in the form of an additional financial incentive to the firm, its financial advisors and equity owners in connection with the sale of the funds from these fund families. Virtually all of Edward Jones' transactions relating to mutual funds involve preferred family funds, Federated Investors and Putnam Investments.

The firm does not receive any significant amount of revenue sharing payments from any nonpreferred mutual fund families other than Federated Investors and Putnam Investments. For the year ended Dec. 31, 2007, Edward Jones received approximately $125 million in revenue sharing payments from the preferred fund families as designated throughout 2007 and Federated Investors. For that same period, Edward Jones' net income was $508 million.

Currently, Edward Jones' preferred fund families are:

What does it mean to be a preferred family? Edward Jones exclusively promotes preferred fund families on this Web site and in other mutual fund and 529 plan marketing materials. The preferred fund families have greater access to our financial advisors to provide training, marketing support and educational presentations. If you own a preferred fund, or if you are interested in our preferred fund families, we want you to be aware of our financial incentives.

In addition to revenue sharing payments, we also receive standard sales loads, annual service fees (referred to as Rule 12b-1 fees), expense reimbursements, sub-transfer agent fees for maintaining client account information and providing other administrative services for the mutual funds (shareholder accounting and networking fees), and reimbursements for education, marketing support and training-related expenses.

Revenue sharing, as received by Edward Jones, involves a payment from a mutual fund company's investment adviser or the company that distributes a mutual fund company's shares. Revenue sharing is calculated in different ways by the different preferred funds, Federated Investors and Putnam Investments. For instance, some fund distributors or advisers pay Edward Jones a fee based on the value of assets under management. This is called an asset-based fee. This generally means that each year you maintain your holdings in a preferred mutual fund, Federated Investors or Putnam Investments, Edward Jones is paid by the fund company adviser or distributor. For example, if you made a $10,000 mutual fund purchase and held it for a year, and its value remained the same, Edward Jones would be paid by the adviser or distributor .075% or 7.5 basis points. That would translate to a $7.50 payment from the fund's distributor or adviser to Edward Jones for the $10,000 investment in your account. For every subsequent year you held that $10,000 mutual fund investment in your Edward Jones account, the fund's distributor or adviser would make a $7.50 payment to Edward Jones, assuming no change in the value of your $10,000 investment. Asset-based payments will increase or decrease from year to year with changes in the value of fund assets held by Edward Jones' clients. Again, this payment is not an additional charge to you by the mutual fund company or Edward Jones, but comes from the fund company investment adviser or distributor.

Other distributors or advisers may pay Edward Jones a fee for each share of the fund that Edward Jones sells. This is referred to as a sales-based fee and is based on the dollar value of your purchase. For example, a mutual fund distributor or adviser may pay Edward Jones .125% or 12.5 basis points for each dollar of shares purchased by you. Therefore, if you purchased $10,000 of that mutual fund, its adviser or distributor would pay Edward Jones $12.50 for that transaction. This payment is not an additional charge to you by the mutual fund company or Edward Jones, but comes from the fund company investment adviser or distributor.

There are, as noted above, other formulas and types of revenue sharing. Please review the Revenue Sharing Summary Chart, which summarizes Edward Jones' revenue sharing arrangements by identifying the fund family, the name of the entity that actually pays the revenue sharing to Edward Jones, the amount of revenue sharing that Edward Jones received from each of the fund families based on $10,000 of assets purchased ("Sales Fees") or held by a client ("Annual Asset Fees"), and the total amount of revenue sharing in dollars that Edward Jones earned from each fund family adviser or distributor in 2007.

Revenue Sharing Summary Chart (view chart)

For additional information on a particular fund's payment and compensation practices, please review the fund's prospectus and statement of additional information. Investors should carefully consider the investment objectives, risks, changes 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.

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IRAs & Retirement Savings Education Savings Estate Planning & Trust Services Account Services & Tools Investments Stocks Fixed Income Investments Mutual Funds Annuities Saving, Spending & Borrowing Solutions Insurance Online Services	Mutual Fund Families, Including Information about Our Preferred Fund Families and Revenue Sharing With thousands of mutual funds in the marketplace today, you may be overwhelmed by the task of selecting an appropriate fund. Edward Jones believes you are better served if the firm focuses on a select group of mutual fund families that offer a broad spectrum of mutual funds. Of the many mutual fund families we offer, Edward Jones has designated fund companies as "preferred fund families." While our financial advisors may sell, and our clients are free to select, funds from many mutual fund families, there are financial incentives associated with the sale of funds from the preferred fund families, Federated Investors and Putnam Investments. Edward Jones receives payments known as revenue sharing from the preferred fund families' advisers or distributors as well as from Federated Investors and Putnam Investments. Edward Jones, its financial advisors and equity owners benefit financially from the receipt of revenue sharing payments from the advisers and distributors of the preferred fund families, Federated Investors and Putnam Investments. As a result, Edward Jones' receipt of revenue sharing payments creates a potential conflict of interest in the form of an additional financial incentive to the firm, its financial advisors and equity owners in connection with the sale of the funds from these fund families. Virtually all of Edward Jones' transactions relating to mutual funds involve preferred family funds, Federated Investors and Putnam Investments. The firm does not receive any significant amount of revenue sharing payments from any nonpreferred mutual fund families other than Federated Investors and Putnam Investments. For the year ended Dec. 31, 2007, Edward Jones received approximately $125 million in revenue sharing payments from the preferred fund families as designated throughout 2007 and Federated Investors. For that same period, Edward Jones' net income was $508 million. Currently, Edward Jones' preferred fund families are: American Funds Franklin Templeton Goldman Sachs Funds Hartford Mutual Funds Lord Abbett Funds OppenheimerFunds Van Kampen Investments What does it mean to be a preferred family? Edward Jones exclusively promotes preferred fund families on this Web site and in other mutual fund and 529 plan marketing materials. The preferred fund families have greater access to our financial advisors to provide training, marketing support and educational presentations. If you own a preferred fund, or if you are interested in our preferred fund families, we want you to be aware of our financial incentives. In addition to revenue sharing payments, we also receive standard sales loads, annual service fees (referred to as Rule 12b-1 fees), expense reimbursements, sub-transfer agent fees for maintaining client account information and providing other administrative services for the mutual funds (shareholder accounting and networking fees), and reimbursements for education, marketing support and training-related expenses. Revenue sharing, as received by Edward Jones, involves a payment from a mutual fund company's investment adviser or the company that distributes a mutual fund company's shares. Revenue sharing is calculated in different ways by the different preferred funds, Federated Investors and Putnam Investments. For instance, some fund distributors or advisers pay Edward Jones a fee based on the value of assets under management. This is called an asset-based fee. This generally means that each year you maintain your holdings in a preferred mutual fund, Federated Investors or Putnam Investments, Edward Jones is paid by the fund company adviser or distributor. For example, if you made a $10,000 mutual fund purchase and held it for a year, and its value remained the same, Edward Jones would be paid by the adviser or distributor .075% or 7.5 basis points. That would translate to a $7.50 payment from the fund's distributor or adviser to Edward Jones for the $10,000 investment in your account. For every subsequent year you held that $10,000 mutual fund investment in your Edward Jones account, the fund's distributor or adviser would make a $7.50 payment to Edward Jones, assuming no change in the value of your $10,000 investment. Asset-based payments will increase or decrease from year to year with changes in the value of fund assets held by Edward Jones' clients. Again, this payment is not an additional charge to you by the mutual fund company or Edward Jones, but comes from the fund company investment adviser or distributor. Other distributors or advisers may pay Edward Jones a fee for each share of the fund that Edward Jones sells. This is referred to as a sales-based fee and is based on the dollar value of your purchase. For example, a mutual fund distributor or adviser may pay Edward Jones .125% or 12.5 basis points for each dollar of shares purchased by you. Therefore, if you purchased $10,000 of that mutual fund, its adviser or distributor would pay Edward Jones $12.50 for that transaction. This payment is not an additional charge to you by the mutual fund company or Edward Jones, but comes from the fund company investment adviser or distributor. There are, as noted above, other formulas and types of revenue sharing. Please review the Revenue Sharing Summary Chart, which summarizes Edward Jones' revenue sharing arrangements by identifying the fund family, the name of the entity that actually pays the revenue sharing to Edward Jones, the amount of revenue sharing that Edward Jones received from each of the fund families based on $10,000 of assets purchased ("Sales Fees") or held by a client ("Annual Asset Fees"), and the total amount of revenue sharing in dollars that Edward Jones earned from each fund family adviser or distributor in 2007. Revenue Sharing Summary Chart (view chart) For additional information on a particular fund's payment and compensation practices, please review the fund's prospectus and statement of additional information. Investors should carefully consider the investment objectives, risks, changes 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.	Find an Edward Jones financial advisor. Find now »