Overnight investments
Miscellaneous (Overnight Investments): Edward Jones may place client cash in bank deposit accounts for short periods of time in order to facilitate certain transactions, such as while waiting for investment instructions, or in order to make a distribution or other disbursement. Assets generally remain invested in these deposits for no more than four business days or, in the case of a disbursement by check, until the check drawn on the account is presented for payment. These deposits generate revenue for Edward Jones in the form of interest.
The average overnight interest rate on these deposits may fluctuate daily, and is tied to changes in widely referenced interbank lending rates, such as Fed Funds Effective Rate ("FFER"), Fed Funds Target Rate ("FFTR"), and LIBOR rates. Under these arrangements, banks may pay interest based on a spread to one of these rates, or may pay a fixed interest rate. These rates in recent times generally have varied from 0% to FFTR + 0.15%.