LPL Financial Reports Monthly Activity for May 2020
LPL Financial reported a strong monthly activity report for May 2020, showing total brokerage and advisory assets at approximately $745.9 billion, a 3.9% increase from April. May's net new assets reached $4.2 billion, with a 7.0% annualized growth rate. Notably, net new advisory assets totaled $3.1 billion, translating to a 10.7% annualized growth rate. However, client cash balances fell to $46.2 billion, down by $0.8 billion compared to the previous month.
- Total brokerage and advisory assets increased by 3.9% month-over-month.
- Net new assets inflow of $4.2 billion with a 7.0% annualized growth rate.
- Net new advisory assets of $3.1 billion, reflecting a 10.7% annualized growth rate.
- Client cash balances decreased by $0.8 billion from April.
SAN DIEGO, June 16, 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 May 2020.
Total brokerage and advisory assets served at the end of May were approximately
Total net new assets for May were an inflow of
Total client cash balances at the end of May were
| (End of Period $ in billions, unless noted) | May | April | Change | May | Change | |||
| 2020 | 2020 | M/M | 2019 | Y/Y | ||||
| Assets Served | ||||||||
| Advisory Assets | 364.9 | 348.9 | 4.6 | % | 311.3 | 17.2 | % | |
| Brokerage Assets | 381.0 | 369.1 | 3.2 | % | 366.0 | 4.1 | % | |
| Total Brokerage and Advisory Assets | 745.9 | 718.0 | 3.9 | % | 677.3 | 10.1 | % | |
Total Net New Assets* | ||||||||
| Net New Advisory Assets | 3.1 | 2.8 | n/m | 2.8 | n/m | |||
| Net New Brokerage Assets | 1.1 | 0.7 | n/m | (0.8 | ) | n/m | ||
| Total Net New Assets | 4.2 | 3.4 | n/m | 2.0 | n/m | |||
| Net Brokerage to Advisory Conversions | 0.4 | 0.5 | n/m | 0.8 | n/m | |||
Client Cash Balances | ||||||||
| Insured Cash Account Balances | 33.5 | 33.9 | (1.2 | )% | 20.9 | 60.3 | % | |
| Deposit Cash Account Balances | 8.0 | 8.5 | (5.9 | )% | 4.2 | 90.5 | % | |
| Total Insured Sweep Balances | 41.5 | 42.4 | (2.1 | )% | 25.1 | 65.3 | % | |
| Money Market Sweep Accounts | 1.7 | 1.7 | 0.0 | % | 4.0 | n/m | ||
| Purchased Money Market Funds | 2.9 | 2.9 | 0.0 | % | 0.8 | n/m | ||
| Total Money Market Balances | 4.6 | 4.6 | 0.0 | % | 4.7 | (2.1 | )% | |
| Total Client Cash Balances | 46.2 | 47.0 | (1.7 | %) | 29.8 | 55.0 | % |
| Net Buy (Sell) Activity | 3.9 | 4.1 | n/m | 3.4 | n/m | ||||
Market Indices | |||||||||
| S&P 500 (end of period) | 3,044 | 2,912 | 2,752 | 10.6 | % | ||||
| Fed Funds Effective Rate (average bps) | 5 | 5 | | 239 | n/m | ||||
*Total Net New Assets equals the combination of Asset Inflows minus Outflows as well as 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 1996-2019.
Securities and Advisory Services offered through LPL Financial LLC, a Registered Investment Advisor. Member FINRA/SIPC.
Investor Relations – Chris Koegel, (617) 897-4574
Media Relations – Jeff Mochal, (704) 733-3589
investor.lpl.com/contact-us
FAQ
What were LPLA's total brokerage and advisory assets in May 2020?
How much did LPLA's net new assets increase in May 2020?
What is the annualized growth rate of LPLA's net new advisory assets?
How did client cash balances change for LPLA in May 2020?
