STOCK TITAN

LPL Adds Direct Indexing to Its Model Wealth Portfolios Platform

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Positive)
Tags
Rhea-AI Summary
LPL Financial announces the availability of direct indexing within its Model Wealth Portfolios (MWP) unified managed account program. The new strategy, announced at LPL's flagship event for financial professionals, Focus 2023, aims to make trading investment strategies more tax efficient and create personalized outcomes for clients. The offering includes custom indexed separately managed account (SMA) solutions with minimums of $100k and various equity options. LPL's direct indexing strategy will provide advisors with greater customization and control, including the option to tailor automatically-recurring tax harvesting strategies unique to each client's MWP portfolio.
Positive
  • Direct indexing within LPL Financial's MWP program can make trading investment strategies more tax efficient.
  • The custom indexed SMAs in MWP, designed by LPL Research using industry-leading indexes from MSCI Inc., will have minimums of $100k and include large-cap, small- and mid-cap, and international equity options.
  • Advisors will have greater customization and control with LPL's direct indexing strategy, including the ability to tailor automatically-recurring tax harvesting strategies unique to each client's MWP portfolio.
Negative
  • None.

New capability helps give advisors a competitive edge with potential for improved after-tax outcomes for clients

CHARLOTTE, N.C., Aug. 05, 2023 (GLOBE NEWSWIRE) -- LPL Financial today announced the availability of direct indexing within the firm’s Model Wealth Portfolios (MWP) unified managed account program. The new strategy was announced at LPL’s flagship event for financial professionals, Focus 2023, held from August 4 to August 7 in San Diego, CA.

Direct indexing can help make trading investment strategies more tax efficient, while also creating personalized outcomes for clients, which benefits advisors and investors alike. Accessible through new custom indexed separately managed account (SMA) solutions in MWP, the offering will provide a foundation for powerful tax and portfolio management capabilities. The custom index SMAs, which were designed by LPL Research utilizing industry-leading indexes from MSCI Inc., will have minimums of $100k and include large-cap, small- and mid-cap, and international equity options, allowing advisors to create solid core portfolios customized to the unique needs of the client.

"Financial advisors are always looking to help improve client outcomes and deliver personalized investment solutions," said Rob Pettman, executive vice president, Wealth Management Solutions at LPL Financial. "Investors want the ability to customize their investment strategy in order to achieve a range of goals, including reducing overall tax burden and/or avoiding a particular sector or security."

"MSCI is delighted to collaborate with LPL Financial as they leverage customized versions of the MSCI USA and EAFE ADR indexes as the foundation to deliver investment solutions that meet the growing needs of financial advisors and their clients," said Remy Briand, chief product officer and head of Index at MSCI.

LPL’s direct indexing strategy will be available beginning in August 2023, providing advisors with greater customization and control, including the option to tailor automatically-recurring tax harvesting strategies unique to each of their clients’ MWP portfolios, helping to improve their clients’ tax outcomes.

"The opportunity to deliver personalized portfolios can help advisors deliver more value to investors," added Pettman. "Utilizing direct indexing capabilities can also help to attract and retain investors looking for sophisticated and personalized investment advice."

About LPL Financial

LPL Financial Holdings Inc. (Nasdaq: LPLA) was founded on the principle that the firm should work for the advisor, and not the other way around. Today, LPL is a leader in the markets we serve, serving nearly 22,000 financial advisors, including advisors at approximately 1,100 enterprises and at approximately 550 registered investment advisor ("RIA") firms nationwide. We are steadfast in our commitment to the advisor-mediated model and the belief that Americans deserve access to personalized guidance from a financial advisor. At LPL, independence means that advisors have the freedom they deserve to choose the business model, services, and technology resources that allow them to run their perfect practice. And they have the freedom to manage their client relationships, because they know their clients best. Simply put, we take care of our advisors, so they can take care of their clients.

Securities and Advisory services offered through LPL Financial LLC ("LPL Financial"), a registered investment advisor. Member FINRA/SIPC. LPL Financial and its affiliated companies provide financial services only from the United States.

Throughout this communication, the terms "financial advisors" and "advisors" are used to refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial.

We routinely disclose information that may be important to shareholders in the "Investor Relations" or "Press Releases" section of our website.

Connect with Us!

https://twitter.com/lpl

https://www.linkedin.com/company/lpl-financial

https://www.facebook.com/LPLFinancialLLC

https://www.youtube.com/user/lplfinancialllc

Media Contact:
Media.relations@LPLFinancial.com
(805) 640-5391


FAQ

What did LPL Financial announce?

LPL Financial announced the availability of direct indexing within its Model Wealth Portfolios (MWP) unified managed account program.

What is the purpose of direct indexing in MWP?

Direct indexing aims to make trading investment strategies more tax efficient and create personalized outcomes for clients.

What are the features of the custom indexed separately managed account (SMA) solutions in MWP?

The custom indexed SMAs in MWP have minimums of $100k and include large-cap, small- and mid-cap, and international equity options.

What customization and control will advisors have with LPL's direct indexing strategy?

Advisors will have the option to tailor automatically-recurring tax harvesting strategies unique to each client's MWP portfolio.

LPL Financial Holdings Inc.

NASDAQ:LPLA

LPLA Rankings

LPLA Latest News

LPLA Stock Data

24.33B
73.63M
0.68%
97.11%
1.21%
Capital Markets
Security & Commodity Brokers, Dealers, Exchanges & Services
Link
United States of America
SAN DIEGO