LPL Financial Reports Monthly Activity for July 2021

Rhea-AI Summary

LPL Financial Holdings Inc. (LPLA) reported July 2021 monthly activity metrics, revealing total advisory and brokerage assets of approximately $1.13 trillion, up $17.6 billion (1.6%) from June 2021. The company experienced net new assets of $10.0 billion, equating to an annualized growth rate of 11.5%. Notably, $3.0 billion of these assets stemmed from the onboarding of M&T Bank clients. Advisory assets rose to $588.4 billion, a 1.9% month-over-month increase, while brokerage assets grew by 1.3% to $541.4 billion. Client cash balances at July-end were $48.5 billion.

Positive

• Total advisory and brokerage assets increased by $17.6 billion (1.6%) from June.
• Net new assets reached $10.0 billion, an annualized growth rate of 11.5%.
• Advisory assets grew by 1.9% month-over-month to $588.4 billion.
• Brokerage assets increased by 1.3% to $541.4 billion.

Negative

• Net new advisory assets fell to $5.7 billion from $11.2 billion month-over-month.
• Net new brokerage assets decreased significantly to $4.3 billion from $14.8 billion.

SAN DIEGO, Aug. 19, 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 July 2021.

Total advisory and brokerage assets at the end of July were approximately $1.13 trillion, an increase of $17.6 billion, or 1.6%, compared to the end of June 2021.

Total net new assets for July were $10.0 billion⁽¹⁾, translating to an 11.5%⁽²⁾ annualized growth rate. This included $3.0 billion of brokerage assets from M&T Bank that onboarded in July⁽³⁾. Total net new advisory assets were $5.7 billion, translating to a 12.7%⁽²⁾ annualized growth rate.

Total client cash balances at the end of July were $48.5 billion, roughly flat from the end of June 2021. Net buying in July was $6.5 billion.

(End of Period $ in billions, unless noted)	July	June	Change	July	Change
	2021	2021	M/M	2020	Y/Y
Advisory and Brokerage Assets(4)
Advisory Assets	588.4	577.6	1.9%	392.7	49.8%
Brokerage Assets	541.4	534.7	1.3%	399.2	35.6%
Total Advisory and Brokerage Assets	1,129.9	1,112.3	1.6%	791.9	42.7%
Net New Assets(1)
Net New Advisory Assets	5.7	11.2	n/m	2.9	n/m
Net New Brokerage Assets	4.3	14.8	n/m	0.0	n/m
Total Net New Assets(5)	10.0	26.0	n/m	2.9	n/m

Net Brokerage to Advisory Conversions	0.8	0.9	n/m	0.7	n/m
Client Cash Balances
Insured Cash Account Balances	34.4	34.1	0.9%	33.2	3.6%
Deposit Cash Account Balances	7.9	7.6	3.9%	7.6	3.9%
Total Bank Sweep Balances	42.2	41.7	1.2%	40.8	3.4%
Money Market Account Cash Balances	4.3	5.0	(14.0%)	1.6	168.8%
Purchased Money Market Funds	1.9	1.7	11.8%	2.8	(32.1%)
Total Money Market Balances	6.3	6.7	(6.0%)	4.4	43.2%
Total Client Cash Balances	48.5	48.4	0.2%	45.1	7.5%

Net Buy (Sell) Activity	6.5	6.0	n/m	2.9	n/m
Market Indices
S&P 500 (end of period)	4,395	4,298	2.3%	3,271	34.4%
Fed Funds Effective Rate (average bps)	10	8	25.0%	9	11.1%

(1)		July Net New Assets do not include results from Waddell & Reed advisors, as such advisors onboarded onto LPL’s platform close to the end of July 2021.
(2)		Waddell & Reed asset and net new asset totals were not included in the calculation of July net new asset annualized growth rate.
(3)		As of the end of July, $18.6 billion of client assets have onboarded from M&T Bank out of a total of $21.9 billion, including $15.6 billion of client assets that were onboarded in June and $3.0 billion of client assets that were onboarded in July.
(4)		Assumes ~98% asset retention of Waddell & Reed total assets at the end of June 2021 and ~2% of total assets will not convert. This is equivalent to $68.9 billion of total assets, of which $33.5 billion were advisory and $35.4 billion were brokerage.
(5)		Total Net New Assets consist of asset inflows minus outflows, plus dividends, plus interest, minus advisory fees.
		Note: In July 2021, approximately 280 associate advisors with Waddell & Reed became financial professionals with LPL Financial upon onboarding onto LPL’s platform and will be reflected as net new advisors in Q3 2021.

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.

Forward-Looking Statements
Statements in this press release regarding the number of advisors LPL expects to reflect as net new advisors in the third quarter of 2021, and any other statements that are not related to present facts or current conditions or that are not purely historical, constitute forward-looking statements. These forward-looking statements are based on the Company's historical performance and its plans, estimates and expectations as of August 19, 2021. Forward-looking statements are not guarantees that the future results, plans, intentions or expectations expressed or implied will be achieved. Matters subject to forward-looking statements involve known and unknown risks and uncertainties, including economic, legislative, regulatory, competitive and other factors, which may cause actual financial or operating results, levels of activity or the timing of events to be materially different from those expressed or implied by forward-looking statements. Important factors that could cause or contribute to such differences include the determination of recently onboarded associates from Waddell & Reed to terminate their affiliation with LPL Financial, as well as the other factors set forth in Part I, “Item 1A. Risk Factors” in the Company’s 2020 Annual Report on Form 10-K, as may be amended or updated in the Company's Quarterly Reports on Form 10-Q or other filings with the Securities and Exchange Commission. Except as required by law, the Company specifically disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this press release, even if its estimates change, and you should not rely on statements contained herein as representing the Company's views as of any date subsequent to the date of this press release.

Investor Relations – Chris Koegel, (617) 897-4574
Media Relations – Lauren Hoyt-Williams, (980) 321-1232
investor.lpl.com/contact-us

FAQ

What are LPL Financial's total advisory and brokerage assets as of July 2021?

As of July 2021, LPL Financial's total advisory and brokerage assets were approximately $1.13 trillion.

What was the net new asset growth for LPLA in July 2021?

LPL Financial reported net new assets of $10.0 billion in July 2021.

How much did LPL Financial's advisory assets increase in July 2021?

Advisory assets increased by 1.9% month-over-month to $588.4 billion.

What was the performance of LPL Financial's brokerage assets in July 2021?

Brokerage assets rose by 1.3% month-over-month to $541.4 billion in July 2021.

What was the change in net new advisory and brokerage assets for LPL Financial in July 2021?

Net new advisory assets decreased to $5.7 billion, while net new brokerage assets fell to $4.3 billion.