LPL Financial Reports Monthly Activity for January 2021

Rhea-AI Summary

LPL Financial, a leading retail investment advisory firm, has reported a modest increase in total advisory and brokerage assets, reaching approximately $907 billion at the end of January 2021, up 0.4% from December 2020. The firm saw net new assets inflow of $3.6 billion, indicating a 4.8% annualized growth rate. Notably, total net new advisory assets increased by $4.2 billion, translating to a 10.9% annualized growth, while client cash balances slightly decreased to $48.8 billion.

Positive

• Total advisory and brokerage assets increased by 0.4% to $907 billion.
• Net new advisory assets inflow of $4.2 billion, showing a robust 10.9% annualized growth rate.
• Total net new assets inflow of $3.6 billion, translating to a 4.8% annualized growth rate.

Negative

• Total client cash balances decreased by $0.1 billion compared to December 2020.
• Net new brokerage assets showed a decline of $0.6 billion.

SAN DIEGO, Feb. 16, 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 January 2021.

Total advisory and brokerage assets served at the end of January were approximately $907 billion, an increase of 0.4% compared to the end of December 2020.

Total net new assets for January were an inflow of $3.6 billion, translating to a 4.8% annualized growth rate. This includes total net new advisory assets of $4.2 billion, translating to a 10.9% annualized growth rate.

Total client cash balances at the end of January were $48.8 billion, a decrease of $0.1 billion compared to the end of December 2020. Net buying in January was $4.5 billion.

(End of Period $ in billions, unless noted)		January		December		Change		January		Change
	2021			2020		M/M		2020		Y/Y
Assets Served
Advisory Assets	464.6			461.2	0.7%			369.2		25.8%
Brokerage Assets	442.3			441.9	0.1%			397.7		11.2%
Total Advisory and Brokerage Assets	907.0			903.1	0.4%			767.0		18.3%
Total Net New Assets*
Net New Advisory Assets	4.2			6.8		n/m		3.8		n/m
Net New Brokerage Assets	(0.6)			1.1		n/m		(0.3)		n/m
Total Net New Assets	3.6			7.9		n/m		3.5		n/m
Net Brokerage to Advisory Conversions	1.0			1.0		n/m		0.9		n/m
Client Cash Balances
Insured Cash Account Balances	37.5			37.3	0.5%			24.4		53.7%
Deposit Cash Account Balances	8.0			8.2	(2.4%)			4.8		66.7%
Total Bank Sweep Balances	45.5			45.5	0.0%			29.2		55.8%
Money Market Account Cash Balances	1.4			1.5		n/m		1.7		n/m
Purchased Money Market Funds	1.8			1.9		n/m		2.5		n/m
Total Money Market Balances	3.2			3.3	(3.0%)			4.2		(23.8%)
Total Client Cash Balances	48.8			48.9	(0.2%)			33.5		45.7%
Net Buy (Sell) Activity	4.5			5.6	n/m			4.5		n/m
Market Indices
S&P 500 (end of period)	3,714			3,756	(1.1%)			3,226		15.1%
Fed Funds Effective Rate (average bps)	9			9	n/m			155		n/m

* Total Net New Assets consists of asset inflows minus outflows, plus 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, the nation’s largest independent broker/dealer⁽⁺⁾ and a leading custodian (or provider of custodial services) to RIAs. 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. 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 – Jeff Mochal, (704) 733-3589

investor.lpl.com/contact-us

FAQ

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

LPL Financial's total advisory and brokerage assets reached approximately $907 billion at the end of January 2021.

How much were LPLA's net new assets in January 2021?

LPL Financial reported a net new assets inflow of $3.6 billion for January 2021.

What was the annualized growth rate for net new advisory assets for LPLA in January 2021?

The annualized growth rate for net new advisory assets was 10.9% in January 2021.

What was the status of client cash balances at LPL Financial in January 2021?

Total client cash balances at LPL Financial decreased to $48.8 billion at the end of January 2021.