LPL Financial Reports Monthly Activity for August 2023

Rhea-AI Summary

LPL Financial reports decrease in total advisory and brokerage assets for August 2023.

Positive

• Total net new assets for August were $13.1 billion, with a 12.3% annualized growth rate.
• Net buying in August was $12.7 billion.

Negative

• Total advisory and brokerage assets decreased by $7.1 billion, or 0.6%, compared to July 2023.

SAN DIEGO, Sept. 21, 2023 (GLOBE NEWSWIRE) -- LPL Financial LLC (“LPL Financial”), a wholly owned subsidiary of LPL Financial Holdings Inc. (Nasdaq: LPLA) (the “Company”), today released its monthly activity report for August 2023.

Total advisory and brokerage assets at the end of August were $1.27 trillion, a decrease of $7.1 billion, or 0.6%, compared to the end of July 2023.

Total net new assets for August were $13.1 billion, translating to a 12.3% annualized growth rate. Total net new advisory assets were $8.3 billion, translating to a 14.6% annualized growth rate.

Total client cash balances at the end of August were $48.2 billion, a decrease of $0.6 billion compared to the end of July 2023. Net buying in August was $12.7 billion.

(End of period $ in billions, unless noted)	August	July	Change		August	Change
	2023	2023	M/M		2022	Y/Y
Advisory and Brokerage Assets
Advisory assets	680.8	684.4	(0.5%)		580.0	17.4%
Brokerage assets	590.5	594.0	(0.6%)		524.9	12.5%
Total Advisory and Brokerage Assets	1,271.3	1,278.4	(0.6%)		1,104.8	15.1%
Total Net New Assets
Net new advisory assets	8.3	7.7	n/m		4.2	n/m
Net new brokerage assets	4.7	3.4	n/m		5.5	n/m
Total Net New Assets	13.1	11.0	n/m		9.7	n/m
Organic Net New Assets
Net new organic advisory assets	8.3	7.7	n/m		4.2	n/m
Net new organic brokerage assets	4.7	3.4	n/m		5.5	n/m
Total Organic Net New Assets	13.1	11.0	n/m		9.7	n/m
Net brokerage to advisory conversions	0.9	0.9	n/m		0.9	n/m
Client Cash Balances
Insured cash account sweep	34.7	35.1	(1.1%)		47.1	(26.3%)
Deposit cash account sweep	9.1	9.1	—%		12.4	(26.6%)
Total Bank Sweep	43.8	44.3	(1.1%)		59.5	(26.4%)
Money market sweep	2.5	2.4	4.2%		3.2	(21.9%)
Total Client Cash Sweep Held by Third Parties	46.3	46.6	(0.6%)		62.7	(26.2%)
Client cash account	1.8	2.2	(18.2%)		3.1	(41.9%)
Total Client Cash Balances	48.2	48.8	(1.2%)		65.8	(26.7%)
Net buy (sell) activity	12.7	11.6	n/m		10.0	n/m
Market Drivers
S&P 500 Index (end of period)	4,508	4,589	(1.8%)		3,955	14.0%
Russell 2000 Index (end of period)	1,900	2,003	(5.1%)		1,844	3.0%
Fed Funds daily effective rate (average bps)	533	512	4.1%		233	128.8%

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.

Contacts

Investor Relations
investor.relations@lplfinancial.com

Media Relations
media.relations@lplfinancial.com

About LPL Financial

LPL Financial Holdings Inc. (Nasdaq: LPLA) was founded on the principle that LPL should work for advisors and enterprises, 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 professional. At LPL, independence means that advisors and enterprise leaders have the freedom they deserve to choose the business model, services and technology resources that allow them to run a thriving business. They have the flexibility to do business their way. And they have the freedom to manage their client relationships because they know their clients best. Simply put, we take care of our advisors and enterprises, 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.