LPL Financial Reports Monthly Activity For April 2021

Rhea-AI Summary

LPL Financial reported impressive growth in April 2021, with total advisory and brokerage assets surpassing $1 trillion, reaching approximately $1.063 trillion, a 10.9% increase from March. The firm saw $73.8 billion in net new assets, driven by an acquisition and organic growth, with advisory assets growing by 13.0% and brokerage assets by 8.4%. Cash balances decreased slightly to $47.7 billion. This performance underscores LPL's strong market position and effective asset acquisition strategies.

Positive

• Total advisory and brokerage assets increased to $1.063 trillion, up 10.9% from March.
• Net new assets totaled $73.8 billion, indicating strong growth.
• Organic net new advisory assets rose by 13.0% in April.
• Acquisition of Waddell & Reed's wealth management business contributed significantly to asset growth.

Negative

• Client cash balances decreased by $0.6 billion compared to March.
• Overall cash balances down 1.2%, indicating potential liquidity concerns.

Total advisory and brokerage assets surpass $1 Trillion

SAN DIEGO, May 20, 2021 (GLOBE NEWSWIRE) -- Leading retail investment advisory firm and independent broker-dealer LPL Financial LLC, a wholly owned subsidiary of LPL Financial Holdings Inc. (Nasdaq: LPLA) (the “Company”), today released its monthly activity report for April 2021.

Total advisory and brokerage assets at the end of April were approximately $1.063 trillion, an increase of 10.9% compared to the end of March 2021. Total net new assets were $73.8 billion, of which $6.7 billion were organic net new assets and $67.1⁽¹⁾ billion were acquired net new assets.

Total organic net new assets for April were $6.7 billion, translating to an 8.4% annualized growth rate. This included $2.1 billion of brokerage assets from BMO Harris Financial Advisors that onboarded in April. Total organic net new advisory assets were $5.4 billion, translating to a 13.0% annualized growth rate.

Total acquired net new assets for April were $67.1⁽¹⁾ billion, including $32.6 billion of advisory assets and $34.5 billion of brokerage assets. This was driven by the closing of the Company’s acquisition of Waddell & Reed’s wealth management business on April 30^th.

Total client cash balances at the end of April were $47.7 billion, a decrease of $0.6 billion compared to the end of March 2021. This included $1.1 billion of client cash balances from Waddell & Reed. Net buying in April was $6.9 billion.

(End of Period $ in billions, unless noted)	April	March	Change		April	Change
	2021	2021	M/M		2020	Y/Y
Advisory and Brokerage Assets
Advisory Assets	550.5	496.7	10.8%		348.9	57.8%
Brokerage Assets	512.7	461.6	11.1%		369.1	38.9%
Total Advisory and Brokerage Assets	1,063.2	958.3	10.9%		718.0	48.1%
Organic Net New Assets(2)
Net New Advisory Assets	5.4	12.5	n/m		2.8	n/m
Net New Brokerage Assets	1.4	6.9	n/m		0.7	n/m
Total Organic Net New Assets	6.7	19.4	n/m		3.4	n/m
Acquired Net New Assets(1)
Net New Advisory Assets	32.6	0.0	n/m		0.0	n/m
Net New Brokerage Assets	34.5	0.0	n/m		0.0	n/m
Total Acquired Net New Assets	67.1	0.0	n/m		0.0	n/m
Total Net New Assets(2)
Net New Advisory Assets	38.0	12.5	n/m		2.8	n/m
Net New Brokerage Assets	35.9	6.9	n/m		0.7	n/m
Total Net New Assets	73.8	19.4	n/m		3.4	n/m

Net Brokerage to Advisory Conversions	1.3	1.2	n/m		0.5	n/m
Client Cash Balances
Insured Cash Account Balances	35.0	37.4	(6.4%)		33.9	3.2%
Deposit Cash Account Balances	7.5	7.9	(5.1%)		8.5	(11.8)%
Total Bank Sweep Balances	42.5	45.3	(6.2%)		42.4	0.2%
Money Market Account Cash Balances(3) (4)	3.7	1.3	n/m		1.7	n/m
Purchased Money Market Fund Balances	1.5	1.6	n/m		2.9	n/m
Total Money Market Balances	5.2	3.0	73.3%		4.6	13.0%
Total Client Cash Balances	47.7	48.3	(1.2%)		47.0	1.5%

Net Buy (Sell) Activity	6.9		6.9		n/m			4.1		n/m
Market Indices
S&P 500 (end of period)	4,181		3,973		5.2%			2,912		43.6%
Fed Funds Effective Rate (average bps)	7		7		n/m			5		n/m

(1) Assumes ~95% asset retention of Waddell & Reed total assets at the end of April 2021 and ~5% of total assets will not convert. LPL does not include retirement plan assets as part of total advisory and brokerage assets, so April 2021 results do not include ~$2.4 billion of retirement plan assets from Waddell & Reed.
(2) Total Net New Assets consist of asset inflows minus outflows, plus dividends, plus interest, minus advisory fees.
(3) Money Market Accounts were added as overflow capacity in April, which drove the movement from Insured Cash Account overflow balances to Money Market Account overflow balances.
(4) April 2021 results included $1.1 billion of Money Market Account cash balances from Waddell & Reed.

For additional information regarding these and other LPL Financial business metrics, please refer to the Company’s most recent earnings announcement, which is available in the quarterly results section of investor.lpl.com.

About LPL Financial
LPL Financial 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, supporting more than 18,000 financial advisors, 800 institution-based investment programs and 450 independent RIA firms nationwide. We are steadfast in our commitment to the advisor-centered model and the belief that Americans deserve access to objective 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.

* Top RIA custodian (Cerulli Associates, 2019 U.S. RIA Marketplace Report)
No. 1 Independent Broker-Dealer in the U.S (Based on total revenues, Financial Planning magazine June 1996-2020)
No. 1 provider of third-party brokerage services to banks and credit unions (2019-2020 Kehrer Bielan Research & Consulting Annual TPM Report)

Securities and Advisory services offered through LPL Financial LLC, a registered investment advisor. Member FINRA/SIPC. We routinely disclose information that may be important to shareholders in the "Investor Relations" or "Press Releases" section of our website.

Investor Relations – Chris Koegel, (617) 897-4574

Media Relations – Lauren Hoyt-Williams, (980) 321-1232

investor.lpl.com/contact-us

FAQ

What are LPLA's total advisory and brokerage assets as of April 2021?

As of April 2021, LPLA's total advisory and brokerage assets surpassed $1 trillion, reaching approximately $1.063 trillion.

How much did LPLA acquire in net new assets in April 2021?

LPLA acquired a total of $73.8 billion in net new assets in April 2021.

What was the growth rate of organic net new advisory assets for LPLA in April 2021?

The growth rate of organic net new advisory assets for LPLA in April 2021 was 13.0%.

How did LPLA's client cash balances change in April 2021?

LPLA's client cash balances decreased by $0.6 billion in April 2021, totaling $47.7 billion.