Full Description

Raymond James Financial, Inc. (RJF) is a holding company whose subsidiaries are engaged in various financial services businesses in the United States of America and Canada. Its principal subsidiaries include Raymond James & Associates, Inc. (RJA), Raymond James Financial Services, Inc. (RJFS), Raymond James Ltd. (RJ Ltd.), Eagle Asset Management, Inc. (Eagle), Heritage Asset Management, Inc. (Heritage) and Raymond James Bank, FSB (RJBank). The Company has eight business segments: Private Client Group, Capital Markets, Asset Management, RJBank, Emerging Markets, Stock Loan/Borrow, Proprietary Capital and certain corporate activities combined in the Other segment.

RJF's principal subsidiary, RJA, is a full service brokerage and investment firm and a retail brokerage firm in North America. RJA is a self-clearing broker-dealer engaged in the aspects of securities distribution, trading, investment banking and asset management. RJA also offers financial planning services for individuals and provides clearing services for RJFS, other affiliated entities and unaffiliated broker-dealers. RJFS is an independent contractor brokerage firm in the United States Financial Advisors affiliated with RJFS may offer their clients all products and services offered by RJA. RJ Ltd. is the Company's Canadian broker-dealer subsidiary, which engages in both retail and institutional distribution and investment banking. Eagle is an investment advisor serving as the discretionary manager for individual and institutional equity and fixed income portfolios. Heritage acts as the manager of the Company's internally sponsored Heritage Family of Mutual Funds. RJBank provides traditional banking products and services to the clients of the Company's broker-dealer subsidiaries and to the general public.

Private Client Group

RJF provides securities transaction and financial planning services to approximately 1.8 million client accounts through the branch office systems of RJA, RJFS, RJ Ltd., and Raymond James Investment Services Limited (RJIS), a joint venture in the United Kingdom. The Company's Financial Advisors offer a range of investments and services, including both third party and other products, and a range of financial planning services. It charges sales commissions or asset-based fees for investment services it provides to its Private Client Group clients based on established schedules. The Company’s United States Financial Advisors are also licensed to sell insurance and annuity products through its general insurance agency, Planning Corporation of America (PCA), a wholly owned subsidiary of RJA. Through the Financial Advisors of the Company's broker-dealer subsidiaries, PCA provides product and marketing support for a range of insurance products, principally fixed and variable annuities, life insurance, disability insurance and long-term care coverage.

Its Financial Advisors offer load mutual funds, as well as a selection of no-load funds. RJA and RJFS maintain dealer sales agreements with distributors of mutual fund shares sold through broker-dealers, including funds managed by Heritage. RJA and RJFS maintain dealer sales agreements with distributors of mutual fund shares sold through broker-dealers, including funds managed by Heritage.

Capital Markets

Capital Markets activities consist primarily of equity and fixed income products and services. RJF’s institutional clients are serviced by the RJA and RJ Ltd. Institutional Equity Departments, the RJA Fixed Income Department, RJA’s European offices, and Raymond James Financial International Ltd, an institutional United Kingdom broker-dealer located in London. It charges its commissions on equity transactions based on trade size and the amount of business conducted annually with each institution. Fixed income commissions are based on trade size and the characteristics of the specific security involved.

RJA distributes to its institutional clients both taxable and tax-exempt fixed-income products, primarily municipal, corporate, government agency and mortgage-backed bonds. RJA carries inventory positions of taxable and tax-exempt securities in both the primary and secondary markets to facilitate its institutional sales activities. Analysts in RJA's research department support RJF’s institutional and retail sales efforts and publish research on approximately 701 companies. This research primarily focuses on United States companies in industries, including technology, telecommunications, consumer, financial services, business and industrial services, healthcare, real estate and energy. Industry studies and company-specific research reports are made available to both institutional and individual clients.

Trading equity securities in the over-the-counter (OTC) and Toronto Stock Exchange (TSX) markets involves the purchase and sale of securities from/to clients of the Company or other dealers. RJA makes markets in approximately 678 common stocks in listed and OTC markets. This operation serves to support both RJF’s institutional and Private Client Group sales efforts. The professionals of RJA's Investment Banking Group are involved in a variety of activities, including public and private equity financing for corporate clients, and merger and acquisition advisory services. RJ Led’s Investment Banking Group provides equity financing and financial advisory services to corporate clients. The Syndicate department consists of professionals who coordinate the marketing, distribution, pricing and stabilization of lead and co-managed equity underwritings. In addition to managed and co-managed offerings, this department coordinates the firm's syndicate and selling group activities in transactions managed by other investment banking firms.

RJA trades both taxable and tax-exempt fixed income products. The 18 taxable and 16 tax-exempt RJA fixed income traders purchase and sell corporate, municipal, government, government agency, and mortgage-backed bonds, asset-backed securities, preferred stock and certificates of deposit from/to clients of the Company or other dealers. RJA enters into future commitments, such as forward contracts and to be announced securities (securities having a stated coupon and original term to maturity, although the issuer and/or the specific pool of mortgage loans is not known at the time of the transaction). Low levels of trading positions are also periodically taken by RJA. In addition, a subsidiary of RJF, RJ Capital Services Inc., participates in the interest rate swaps market, both for hedging RJA fixed income inventory and for transactions with customers.

Fixed income investment banking includes debt underwriting and public finance activities. It acts as a financial advisor or underwriter to municipal agencies or political subdivisions, housing developers and non-profit health care institutions. RJA acts as a consultant, underwriter or selling group member for corporate bonds, mortgage-backed securities, agency bonds, preferred stock and unit investment trusts. Raymond James Tax Credit Funds, Inc. (RJTCF) is the general partner or managing member of limited partnerships and limited liability companies. RJTCF either invests in, or through its wholly owned subsidiary Raymond James Multi-Family Finance, Inc., provides loans to multi-family, real estate project entities.

Asset Management

RJF's asset management segment includes asset management operations, internally sponsored mutual funds, non-affiliated private account portfolio management alternatives, and other fee-based programs. On November 1, 2008, it reorganized its asset management segment and Eagle became the advisor to the Heritage Family of Funds, renamed Eagle Family of Funds. Heritage was renamed Eagle Fund Services, Inc. and continues to serve as a transfer agent and fund accountant. In addition, the reorganization includes the renaming of Heritage Fund Distributors, Inc.

Eagle is an investment advisor whose clients include individuals, pension and profit sharing plans, foundations, endowments, variable annuities and mutual fund portfolios. Eagle offers equity and fixed income objectives managed by seven portfolio management teams. Heritage serves as an advisor to RJBank to make recommendations and monitor the Bank's liquid assets, investments in mortgages and mortgage related securities. Heritage Fund Distributors, Inc. (HFD) is a broker-dealer engaged in the distribution of the Heritage Family of Mutual Funds. Heritage Fund Distributors, Inc. is a wholly owned subsidiary of Heritage Asset Management. Eagle Boston Investment Management, Inc. (EBIM) is an investment advisor that primarily manages small cap equity portfolios.

RJA's Asset Management Services (AMS) Department manages investment advisory programs. The primary advisory services offered are the Raymond James Consulting Services program, which offers both affiliated and non-affiliated advisors, and the Eagle High Net Worth program. Both programs maintain an approved list of investment managers, provide asset allocation model portfolios, establish custodial facilities, monitor performance of client accounts, provide clients with accounting and other administrative services, and assist investment managers with certain trading management activities. Raymond James Trust Company and Raymond James Trust Company West provide personal trust services primarily to existing clients of the broker-dealer subsidiaries.

Raymond James Bank, FSB

RJBank is a federally chartered savings bank, provides residential, consumer and commercial loans, as well as Federal Deposit Insurance Corporation (FDIC)-insured deposit accounts, to clients of the Company's broker-dealer subsidiaries and to the general public. RJBank also purchases residential whole loan packages and is active in bank participations and corporate loan syndications. Access to RJBank's products and services is available nationwide through the offices of its affiliated broker-dealers, as well as through telephonic and electronic banking services.

Emerging Markets

Raymond James International Holdings, Inc. (RJIH) has interests in joint ventures in Latin America and Turkey. These joint ventures operate securities brokerage, investment banking, asset management and equity research businesses.

Stock Loan/Borrow

This activity involves the borrowing and lending of securities from and to other broker-dealers, financial institutions and other counterparties, generally as an intermediary. The borrower of the securities puts up a cash deposit, on which interest is earned. Accordingly, the lender receives cash and pays interest. These cash deposits are adjusted daily to reflect changes in current market value. The net revenues of this operation are the interest spreads generated.

Proprietary Capital

This segment consists of the Company’s principal capital and private equity activities, including direct and third party private equity and merchant banking investments, short-term special situations and bridge investments (Special Situations Investments) and Raymond James Employee Investment Funds I and II (the EIF Funds). It also includes three private equity funds sponsored by the Company: Raymond James Capital Partners, L.P., a merchant banking limited partnership, Ballast Point Ventures, L.P. and Ballast Point Ventures II, L.P., which are both venture capital limited partnerships (the Funds) along with their management companies.