LPL Financial Reports Monthly Activity for April 2020

Rhea-AI Summary

LPL Financial has reported significant growth in its April 2020 activity report, showing total brokerage and advisory assets of $718.0 billion, a 7.2% increase since March 2020. The firm saw net new assets inflow of $3.4 billion, translating to a 6.1% annualized growth rate, alongside $2.8 billion in new advisory assets at a 10.3% growth rate. However, total client cash balances decreased by $0.8 billion to $47.0 billion. The net buying activity for the month was $4.1 billion.

Positive

• Total assets served rose to $718.0 billion, up 7.2% month-over-month.
• Net new assets inflow of $3.4 billion, reflecting 6.1% annualized growth.
• Significant growth in new advisory assets at $2.8 billion, equating to a 10.3% annualized growth rate.

Negative

• Client cash balances fell by $0.8 billion, down to $47.0 billion.
• Total money market balances decreased by 0.3% compared to March.

SAN DIEGO, May 18, 2020 (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), today released its monthly activity report for April 2020.

Total brokerage and advisory assets served at the end of April were approximately $718.0 billion, an increase of 7.2% compared to the end of March 2020.

Total net new assets for April were an inflow of $3.4 billion, translating to a 6.1% annualized growth rate. This includes total net new advisory assets of $2.8 billion, translating to a 10.3% annualized growth rate.

Total client cash balances at the end of April were $47.0 billion, a decrease of $0.8 billion compared to the end of March 2020. Net buying in April was $4.1 billion.

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41%; width:41%; min-width:41%;">(End of Period $ in billions, unless noted)	10%; width:10%; min-width:10%;">April	10%; width:10%; min-width:10%;">March	1%; width:1%; min-width:1%;">	10%; width:10%; min-width:10%;">Change	3%; width:3%; min-width:3%;">	10%; width:10%; min-width:10%;">April	1%; width:1%; min-width:1%;">	10%; width:10%; min-width:10%;">Change	4%; width:4%; min-width:4%;">
2020	2020		M/M		2019		Y/Y
Assets Served
Advisory Assets	348.9	322.3		8.2	%	320.5		8.8	%
Brokerage Assets	369.1	347.6		6.2	%	378.8		(2.6	%)
Total Brokerage and Advisory Assets	718.0	669.9		7.2	%	699.3		2.7	%
Total Net New Assets*
Net New Advisory Assets	2.8	4.8		n/m		1.5		n/m
Net New Brokerage Assets	0.7	0.8		n/m		(0.6	)	n/m
Total Net New Assets	3.4	5.6		n/m		0.9		n/m
Net Brokerage to Advisory Conversions	0.5	0.6		n/m		0.6		n/m
Client Cash Balances
Insured Cash Account Balances	33.9	34.5		(1.5	%)	20.7		63.7	%
Deposit Cash Account Balances	8.5	8.7		(3.1	%)	4.1		105.9	%
Total Insured Sweep Balances	42.4	43.2		(1.8	%)	24.8		70.6	%
Money Market Sweep Accounts	1.7	1.8		(3.2	%)	4.4		(60.1	%)
Purchased Money Market Funds	2.9	2.8		1.6	%	0.4		n/a
Total Money Market Balances	4.6	4.6		(0.3	%)	4.8		(4.0	)%
Total Client Cash Balances	47.0	47.8		(1.7	%)	29.6		12.7	%
Net Buy (Sell) Activity	4.1	(8.2	)	n/m		3.5		n/m
Market Indices
S&P 500 (end of period)	2,912	2,585		12.7	%	2,946		(1.1	)%
Fed Funds Effective Rate (average bps)	5	63		(92.2	)%	242		(97.9	)%

*Total Net New Assets equals the combination of Asset Inflows minus Outflows as well as Dividends plus Interest, minus Advisory Fees.

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 (https://www.lpl.com) is a leader in the retail financial advice market and the nation’s largest independent broker/dealer⁽⁺⁾. We serve independent financial advisors and financial institutions, providing them with the technology, research, clearing and compliance services, and practice management programs they need to create and grow thriving practices. LPL enables them to provide objective guidance to millions of American families seeking wealth management, retirement planning, financial planning and asset management solutions.

⁺ Based on total revenues, Financial Planning magazine June 1996-2019.

Securities and Advisory Services offered through LPL Financial LLC, a Registered Investment Advisor. Member FINRA/SIPC.

Investor Relations – Chris Koegel, (617) 897-4574
Media Relations – Jeff Mochal, (704) 733-3589
investor.lpl.com/contact-us

FAQ

What were LPLA's total assets in April 2020?

LPLA's total brokerage and advisory assets were approximately $718.0 billion at the end of April 2020.

How much did LPLA report in net new assets for April 2020?

LPLA reported net new assets inflow of $3.4 billion for April 2020.

What is the growth rate of new advisory assets reported by LPLA?

The new advisory assets growth rate reported by LPLA was 10.3% annualized.

Did LPLA experience any changes in client cash balances in April 2020?

Yes, LPLA's total client cash balances decreased by $0.8 billion to $47.0 billion in April 2020.

What was LPLA's net buying activity in April 2020?

LPLA's net buying activity for April 2020 was $4.1 billion.