LPL Financial Reports Monthly Activity for July 2020

Rhea-AI Summary

LPL Financial (Nasdaq: LPLA) reported a 4.0% month-over-month growth in total brokerage and advisory assets, reaching approximately $792 billion at the end of July 2020. The firm saw net new assets inflow of $2.9 billion, which corresponds to a 4.6% annualized growth rate. Notably, advisory assets rose by 4.6% monthly, totaling $392.7 billion. Meanwhile, client cash balances decreased slightly by 0.4% to $45.1 billion.

Positive

• Total brokerage and advisory assets increased to $792 billion, up 4.0% month-over-month.
• Net new advisory assets inflow of $2.9 billion, translating to a 9.3% annualized growth rate.

Negative

• Client cash balances decreased to $45.1 billion, declining by 0.4% from the previous month.
• Total net new assets decreased from $5.4 billion in June to $2.9 billion in July.

SAN DIEGO, Aug. 13, 2020 (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), today released its monthly activity report for July 2020.

Total brokerage and advisory assets served at the end of July were approximately $792 billion, an increase of 4.0% compared to the end of June 2020.

Total net new assets for July were an inflow of $2.9 billion, translating to a 4.6% annualized growth rate. This includes total net new advisory assets of $2.9 billion, translating to a 9.3% annualized growth rate.

Total client cash balances at the end of July were $45.1 billion, a decrease of $0.2 billion compared to the end of June 2020. Net buying in July was $2.9 billion. 

(End of Period $ in billions, unless noted)	July	June	Change		July	Change
	2020	2020	M/M		2019	Y/Y
Assets Served
Advisory Assets	392.7	375.3	4.6	%	332.1	18.2	%
Brokerage Assets	399.2	386.4	3.3	%	381.3	4.7	%
Total Brokerage and Advisory Assets	791.9	761.7	4.0	%	713.4	11.0	%
Total Net New Assets*
Net New Advisory Assets	2.9	4.3	n/m		2.8	n/m
Net New Brokerage Assets	0.0	1.0	n/m		0.1	n/m
Total Net New Assets	2.9	5.4	n/m		2.9	n/m
Net Brokerage to Advisory Conversions	0.7	0.7	n/m		0.6	n/m
Client Cash Balances
Insured Cash Account Balances	33.2	33.1	0.3	%	21.3	55.9	%
Deposit Cash Account Balances	7.6	7.7	(1.3	)%	4.2	81.0	%
Total Insured Sweep Balances	40.8	40.8	0.0	%	25.5	60.0	%
Money Market Sweep Accounts	1.6	1.6	n/m		3.0	n/m
Purchased Money Market Funds	2.8	2.8	n/m		1.3	n/m
Total Money Market Balances	4.4	4.5	(2.2	)%	4.3	2.3	%
Total Client Cash Balances	45.1	45.3	(0.4	)%	29.9	50.8	%
Net Buy (Sell) Activity	2.9	4.5	n/m		3.3	n/m
Market Indices
S&P 500 (end of period)	3,271	3,100	5.5	%	2,980	9.8	%
Fed Funds Effective Rate (average bps)	9	8	n/m		240	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 and the nation’s largest independent broker/dealer⁽⁺⁾.  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.

Investor Relations – Chris Koegel, (617) 897-4574  
Media Relations – Jeff Mochal, (704) 733-3589  
investor.lpl.com/contact-us

FAQ

What are LPL Financial's total assets as of July 2020?

LPL Financial's total brokerage and advisory assets reached approximately $792 billion by the end of July 2020.

How much net new assets did LPL Financial report for July 2020?

LPL Financial reported net new assets inflow of $2.9 billion for July 2020.

How did LPL Financial's client cash balances change in July 2020?

Client cash balances at LPL Financial decreased by 0.4%, totaling $45.1 billion at the end of July 2020.

What was the growth rate of advisory assets for LPL Financial in July 2020?

Advisory assets grew by 4.6% month-over-month, reaching $392.7 billion in July 2020.