LPL Financial Reports Monthly Activity for August 2021

Rhea-AI Summary

LPL Financial LLC reported a significant increase in total advisory and brokerage assets, reaching approximately $1.16 trillion at the end of August 2021, a growth of $27.0 billion or 2.4% from July 2021. The firm saw total net new assets of $7.6 billion for August, translating into an annualized growth rate of 8.6%, with net new advisory assets totaling $6.4 billion, representing a robust annualized growth rate of 13.9%. Client cash balances increased to $49.7 billion, reflecting a positive trend in client engagement.

Positive

• Total advisory and brokerage assets rose to $1.16 trillion, an increase of $27.0 billion or 2.4%.
• Net new advisory assets reached $6.4 billion, yielding a 13.9% annualized growth rate.
• Client cash balances increased by $1.2 billion to $49.7 billion.

Negative

• Total net new assets decreased from $10.0 billion in July 2021 to $7.6 billion in August 2021.

SAN DIEGO, Sept. 21, 2021 (GLOBE NEWSWIRE) -- LPL Financial LLC, a wholly owned subsidiary of LPL Financial Holdings Inc. (Nasdaq: LPLA) (the “Company”), today released its monthly activity report for August 2021.

Total advisory and brokerage assets at the end of August were approximately $1.16 trillion, an increase of $27.0 billion, or 2.4%, compared to the end of July 2021.

Total net new assets for August were $7.6 billion⁽¹⁾, translating to an 8.6%⁽¹⁾ annualized growth rate. This included $1.3 billion of brokerage assets from M&T Bank that onboarded in August⁽²⁾. Total net new advisory assets were $6.4 billion, translating to a 13.9%⁽¹⁾ annualized growth rate.

Total client cash balances at the end of August were $49.7 billion, an increase of $1.2 billion compared to the end of July 2021. Net buying in August was $5.6 billion.

(End of Period $ in billions, unless noted)	August	July	Change		August	Change
	2021	2021	M/M		2020	Y/Y
Advisory and Brokerage Assets(3)
Advisory Assets	604.6	588.4	2.8	%	410.4	47.3	%
Brokerage Assets	552.3	541.4	2.0	%	412.2	34.0	%
Total Advisory and Brokerage Assets	1,156.9	1,129.9	2.4	%	822.7	40.6	%
Net New Assets(1)
Net New Advisory Assets	6.4	5.7	n/m		3.1	n/m
Net New Brokerage Assets	1.2	4.3	n/m		0.0	n/m
Total Net New Assets	7.6	10.0	n/m		3.1	n/m

Net Brokerage to Advisory Conversions	1.2	0.8	n/m		0.6	n/m
Client Cash Balances
Insured Cash Account Balances	33.2	34.4	(3.5	%)	33.4	(0.6	%)
Deposit Cash Account Balances	8.2	7.9	3.8	%	7.6	7.9	%
Total Bank Sweep Balances	41.4	42.2	(1.9	%)	41.0	1.0	%
Money Market Account Cash Balances	6.3	4.3	46.5	%	1.5	320.0	%
Purchased Money Market Funds	1.9	1.9	0.0	%	2.6	(26.9	%)
Total Money Market Balances	8.3	6.3	31.7	%	4.1	102.4	%
Total Client Cash Balances	49.7	48.5	2.5	%	45.1	10.2	%

Net Buy (Sell) Activity	5.6		6.5		n/m			3.6		n/m
Market Indices
S&P 500 (end of period)	4,523		4,395		2.9		%	3,500		29.2		%
Fed Funds Effective Rate (average bps)	9		10		(10.0		%)	9		0.0		%

(1)	Waddell & Reed assets and net new assets were not included in August Net New Asset totals or in the calculation of net new asset annualized growth rates as we continue to onboard assets from Waddell & Reed that are held directly with sponsors.
(2)	As of the end of August, $19.9 billion of client assets have onboarded from M&T Bank out of a total of $21.9 billion, including $1.3 billion of client assets that were onboarded in August.
(3)	Assumes ~98% asset retention of Waddell & Reed total assets.

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 19,000 financial advisors, and approximately 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)
Fortune 500 as of June 2021

Securities and Advisory services offered through LPL Financial LLC, a registered investment advisor. Member FINRA/SIPC.

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 LLC. 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 August 2021?

LPL Financial's total advisory and brokerage assets were approximately $1.16 trillion at the end of August 2021.

How much did LPLA report in net new assets for August 2021?

LPL Financial reported total net new assets of $7.6 billion for August 2021.

What is the growth rate of net new advisory assets for LPLA in August 2021?

The net new advisory assets for LPL Financial reached $6.4 billion, translating into a 13.9% annualized growth rate.

What was the increase in client cash balances for LPLA in August 2021?

Client cash balances increased by $1.2 billion to a total of $49.7 billion at the end of August 2021.