LPL Financial Reports Monthly Activity for August 2020

Rhea-AI Summary

LPL Financial (LPLA) reported a robust increase in total brokerage and advisory assets, reaching approximately $823 billion at the end of August 2020, marking a 3.9% month-over-month rise. The firm recorded net new assets inflows of $3.1 billion, translating to a 4.7% annualized growth rate, with advisory assets inflowing $3.1 billion and a 9.4% annualized growth rate. Client cash balances remained steady at $45.1 billion. These results reflect continued strong performance in the advisory space amid ongoing market dynamics.

Positive

• Total brokerage and advisory assets increased to approximately $823 billion, up 3.9% month-over-month.
• Net new assets for August were $3.1 billion, showing a 4.7% annualized growth rate.
• Advisory assets increased by $3.1 billion, with a notable 9.4% annualized growth rate.

Negative

• Client cash balances remained flat at $45.1 billion compared to July 2020, signaling potential stagnation in cash deployment.

SAN DIEGO, Sept. 15, 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 August 2020.

Total brokerage and advisory assets served at the end of August were approximately $823 billion, an increase of 3.9% compared to the end of July 2020.

Total net new assets for August were an inflow of $3.1 billion, translating to a 4.7% annualized growth rate. This includes total net new advisory assets of $3.1 billion, translating to a 9.4% annualized growth rate.

Total client cash balances at the end of August were $45.1 billion, which were flat compared to the end of July 2020. Net buying in August was $3.6 billion. 

(End of Period $ in billions, unless noted)	August	July	Change	August	Change
	2020	2020	M/M	2019	Y/Y
Assets Served
Advisory Assets	410.4	392.7	4.5%	333.0	23.2%
Brokerage Assets	412.2	399.2	3.3%	378.7	8.8%
Total Brokerage and Advisory Assets	822.7	791.9	3.9%	711.7	15.6%
Total Net New Assets*
Net New Advisory Assets	3.1	2.9	n/m	3.3**	n/m
Net New Brokerage Assets	0.0	0.0	n/m	(0.2)**	n/m
Total Net New Assets	3.1	2.9	n/m	3.0**	n/m
Net Brokerage to Advisory Conversions	0.6	0.7	n/m	0.5	n/m
Client Cash Balances
Insured Cash Account Balances	33.4	33.2	0.6%	22.0	51.8%
Deposit Cash Account Balances	7.6	7.6	0.0%	4.5	68.9%
Total Insured Sweep Balances	41.0	40.8	0.5%	26.5	54.7%
Money Market Sweep Accounts	1.5	1.6	n/m	2.8	n/m
Purchased Money Market Funds	2.6	2.8	n/m	1.7	n/m
Total Money Market Balances	4.1	4.4	(6.8)%	4.5	(8.9)%
Total Client Cash Balances	45.1	45.1	0.0%	31.0	45.5%
Net Buy (Sell) Activity	3.6	2.9	n/m	2.8	n/m
Market Indices
S&P 500 (end of period)	3,500	3,271	7.0%	2,926	19.6%
Fed Funds Effective Rate (average bps)	9	9	n/m	213	n/m

 

* Total Net New Assets consists of asset inflows minus outflows, plus dividends, plus interest, minus advisory fees.

** Total Net New Assets for August 2019 are prior to inflows from the acquisition of Allen & Company, which closed in August of 2019. Including the acquisition of Allen & Company, Total Net New Assets for August 2019 were $5.9 billion, of which $4.3 billion were Net New Advisory Assets and $1.6 billion were Net New Brokerage Assets.    

Note: These results do not include any assets related to LPL’s E.K. Riley Investments or Lucia Securities acquisitions, which as of the date hereof have not onboarded to LPL’s platform.

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 1996-2020.

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 brokerage and advisory assets as of August 2020?

LPL Financial reported total brokerage and advisory assets of approximately $823 billion as of August 2020.

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

LPL Financial reported net new assets of $3.1 billion for August 2020.

What was the annualized growth rate of new advisory assets for LPLA in August 2020?

The annualized growth rate for new advisory assets in August 2020 was 9.4%.