LPL Financial Reports Monthly Activity for July 2023

Rhea-AI Summary

LPL Financial reports an increase in total advisory and brokerage assets for July 2023. Total net new assets and net new advisory assets also show growth. However, client cash balances decreased compared to the previous month.

Positive

• Total advisory and brokerage assets increased by 3.1% in July 2023, reaching $1.28 trillion.
• Total net new assets for July were $11.0 billion, with a 10.7% annualized growth rate.
• Total net new advisory assets were $7.7 billion, with a 14.0% annualized growth rate.

Negative

• Client cash balances decreased by $1.2 billion compared to June 2023.

SAN DIEGO, Aug. 17, 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 July 2023.

Total advisory and brokerage assets at the end of July were $1.28 trillion, an increase of $38.2 billion, or 3.1%, compared to the end of June 2023.

Total net new assets for July were $11.0 billion, translating to a 10.7% annualized growth rate. Total net new advisory assets were $7.7 billion, translating to a 14.0% annualized growth rate.

Total client cash balances at the end of July were $48.8 billion, a decrease of $1.2 billion compared to the end of June 2023. Net buying in July was $11.6 billion.

(End of period $ in billions, unless noted)	July	June	Change		July	Change
	2023	2023	M/M		2022	Y/Y
Advisory and Brokerage Assets
Advisory assets	684.4	661.6	3.4	%	593.4	15.3	%
Brokerage assets	594.0	578.6	2.7	%	530.9	11.9	%
Total Advisory and Brokerage Assets	1,278.4	1,240.2	3.1	%	1,124.3	13.7	%
Total Net New Assets
Net new advisory assets	7.7	7.7	n/m		3.0	n/m
Net new brokerage assets	3.4	1.5	n/m		1.8	n/m
Total Net New Assets	11.0	9.2	n/m		4.8	n/m
Organic Net New Assets
Net new organic advisory assets	7.7	7.7	n/m		3.0	n/m
Net new organic brokerage assets	3.4	1.5	n/m		1.8	n/m
Total Organic Net New Assets	11.0	9.2	n/m		4.8	n/m
Net brokerage to advisory conversions	0.9	0.8	n/m		0.4	n/m
Client Cash Balances
Insured cash account sweep	35.1	36.0	(2.5	%)	41.9	(16.2	%)
Deposit cash account sweep	9.1	9.5	(4.2	%)	12.3	(26.0	%)
Total Bank Sweep	44.3	45.5	(2.6	%)	54.2	(18.3	%)
Money market sweep	2.4	2.3	4.3	%	13.9	(82.7	%)
Total Client Cash Sweep Held by Third Parties	46.6	47.9	(2.7	%)	68.1	(31.6	%)
Client cash account	2.2	2.1	4.8	%	1.3	69.2	%
Total Client Cash Balances	48.8	50.0	(2.4	%)	69.4	(29.7	%)
Net buy (sell) activity	11.6	11.7	n/m		5.1	n/m
Market Drivers
S&P 500 Index (end of period)	4,589	4,450	3.1	%	4,130	11.1	%
Russell 2000 Index (end of period)	2,003	1,889	6.0	%	1,885	6.3	%
Fed Funds daily effective rate (average bps)	512	508	0.8	%	164	n/m

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 the firm should work for the advisor, 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 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.

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.

FAQ

What is the increase in total advisory and brokerage assets for July 2023?

Total advisory and brokerage assets increased by 3.1% in July 2023, reaching $1.28 trillion.

What was the growth rate of total net new assets for July?

Total net new assets for July were $11.0 billion, with a 10.7% annualized growth rate.

What was the change in client cash balances compared to June 2023?

Client cash balances decreased by $1.2 billion compared to June 2023.