LPL Financial Reports Monthly Activity for January 2023

Rhea-AI Summary

SAN DIEGO, Feb. 14, 2023, LPL Financial LLC, a subsidiary of LPL Financial Holdings (Nasdaq: LPLA), reported a 4.9% increase in total advisory and brokerage assets, reaching $1.16 trillion by January 31, 2023. The firm welcomed $8.6 billion in net new assets, boosted by $3.2 billion from acquiring Boenning & Scattergood. Organic net new assets totaled $5.4 billion, reflecting a 5.8% annualized growth rate. However, total client cash balances declined to $59.7 billion, a drop of $4.4 billion from December 2022, despite a monthly record-high net buying of $11.1 billion. The report highlights robust asset inflows alongside a concerning decrease in cash balances.

Positive

• Total advisory and brokerage assets increased to $1.16 trillion, a 4.9% rise from December 2022.
• Net new assets for January totaled $8.6 billion, including $3.2 billion from the acquisition of Boenning & Scattergood.
• Organic net new assets reached $5.4 billion, with a 5.8% annualized growth rate.

Negative

• Total client cash balances decreased by $4.4 billion to $59.7 billion compared to December 2022.

SAN DIEGO, Feb. 14, 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 January 2023.

Total advisory and brokerage assets at the end of January were $1.16 trillion, an increase of $54.1 billion, or 4.9%, compared to the end of December 2022.

Total net new assets for January were $8.6 billion, which included $3.2 billion of acquired net new assets resulting from the acquisition of Boenning & Scattergood on January 31.

Total organic net new assets for January were $5.4 billion, translating to a 5.8% annualized growth rate. Total organic net new advisory assets were $3.1 billion, translating to a 6.4% annualized growth rate.

Total client cash balances at the end of January were $59.7 billion, a decrease of $4.4 billion compared to the end of December 2022. Net buying in January was $11.1 billion, a new monthly high.

(End of period $ in billions, unless noted)	January	December	Change	January	Change
	2023	2022	M/M	2022	Y/Y
Advisory and Brokerage Assets
Advisory assets	615.2	583.1	5.5%	619.6	(0.7%)
Brokerage assets	549.7	527.7	4.2%	538.2	2.1%
Total Advisory and Brokerage Assets	1,164.9	1,110.8	4.9%	1,157.8	0.6%
Total Net New Assets
Net new advisory assets	4.0	7.4	n/m	5.9	n/m
Net new brokerage assets	4.6	4.2	n/m	0.1	n/m
Total Net New Assets	8.6	11.7	n/m	6.1	n/m
Organic Net New Assets
Net new organic advisory assets	3.1	7.4	n/m	5.9	n/m
Net new organic brokerage assets	2.2	4.2	n/m	0.1	n/m
Total Organic Net New Assets	5.4	11.7	n/m	6.1	n/m
Net brokerage to advisory conversions	0.6	0.5	n/m	1.2	n/m
Client Cash Balances
Insured cash account sweep	43.5	46.8	(7.1%)	29.6	47.0%
Deposit cash account sweep	10.8	11.5	(6.1%)	9.7	11.3%
Total Bank Sweep	54.3	58.4	(7.0%)	39.4	37.8%
Money market sweep	2.9	3.0	(3.3%)	17.3	(83.2%)
Total Client Cash Sweep Held by Third Parties	57.2	61.4	(6.8%)	56.7	0.9%
Client cash account	2.5	2.7	(7.4%)	1.8	38.9%
Total Client Cash Balances	59.7	64.1	(6.9%)	58.4	2.2%
Net buy (sell) activity	11.1	7.9	n/m	3.5	n/m
Market Drivers
S&P 500 Index (end of period)	4,077	3,840	6.2%	4,516	(9.7%)
Russell 2000 Index (end of period)	1,932	1,761	9.7%	2,028	(4.7%)
Fed Funds daily effective rate (average bps)	433	409	5.9%	8	n/m
Note: Totals may not foot due to rounding.

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
(617) 897-4574

Media Relations
media.relations@lplfinancial.com
(980) 321-1232

About LPL Financial

LPL Financial Holdings Inc. (Nasdaq: LPLA) 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^†, serving more than 21,000 financial advisors, including advisors at approximately 1,100 enterprises and at approximately 500 registered investment advisor ("RIA") firms nationwide. We are steadfast in our commitment to the advisor-mediated advice model and the belief that investors deserve access to personalized guidance from a financial advisor. We believe advisors should have the freedom to choose the business model, services and technology they need and to manage their client relationships. Simply put, we take care of our advisors, so they can take care of their clients.

^† Top RIA custodian (Cerulli Associates, 2020 U.S. RIA Marketplace Report); No. 1 Independent Broker-Dealer in the U.S. (based on total revenues, Financial Planning magazine 1996-2022); among third-party providers of brokerage services to banks and credit unions, No. 1 in AUM Growth from Financial Institutions; No. 1 in Market Share of AUM from Financial Institutions; No. 1 in Market Share of Revenue from Financial Institutions; No. 1 in Financial Institution Market Share; No. 1 in Share of Advisors (2021-2022 Kehrer Bielan Research and Consulting Annual TPM Report). Fortune 500 as of June 2021.

LPL Financial and its affiliated companies provide financial services only from the United States.

Securities and Advisory services offered through LPL Financial LLC, an SEC-registered broker-dealer and 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.

We routinely disclose information that may be important to shareholders in the "Investor Relations" or "Press Releases" section of our website.

FAQ

What is LPL Financial's total advisory and brokerage assets as of January 2023?

As of January 31, 2023, LPL Financial reported total advisory and brokerage assets of $1.16 trillion.

How much net new assets did LPL Financial acquire in January 2023?

LPL Financial acquired $8.6 billion in net new assets during January 2023.

What was the organic net new asset growth rate for LPL Financial in January 2023?

In January 2023, LPL Financial achieved an organic net new asset growth rate of 5.8%.

How did LPL Financial's client cash balances change in January 2023?

Total client cash balances at LPL Financial decreased by $4.4 billion to $59.7 billion in January 2023.