LPL Financial Reports Monthly Activity for May 2021

Rhea-AI Summary

LPL Financial LLC, a subsidiary of LPL Financial Holdings (Nasdaq: LPLA), reported a 1.0% increase in total advisory and brokerage assets for May 2021, totaling approximately $1.074 trillion. The firm saw net new assets of $6.1 billion, reflecting a 7.4% annualized growth rate. This included $0.3 billion from BMO Harris Financial Advisors. Net new advisory assets reached $5.7 billion with a 13.2% growth rate. Client cash balances also increased slightly to $47.8 billion with net buying activity of $5.2 billion.

Positive

• Total advisory and brokerage assets increased to approximately $1.074 trillion, up 1.0% month-over-month.
• Net new assets reached $6.1 billion, translating to an annualized growth rate of 7.4%.
• Net new advisory assets were $5.7 billion, indicating a robust annualized growth rate of 13.2%.

Negative

• None.

SAN DIEGO, June 17, 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 May 2021.

Total advisory and brokerage assets at the end of May were approximately $1.074 trillion, an increase of 1.0% compared to the end of April 2021.

Total net new assets for May were $6.1 billion⁽¹⁾, translating to a 7.4%⁽²⁾ annualized growth rate. This included $0.3 billion of brokerage assets from BMO Harris Financial Advisors that onboarded in May. Total net new advisory assets were $5.7 billion, translating to a 13.2%⁽²⁾ annualized growth rate.

Total client cash balances at the end of May were $47.8 billion, an increase of $0.1 billion compared to the end of April 2021. Net buying in May was $5.2 billion.

(End of Period $ in billions, unless noted)	May	April	Change		May	Change
	2021	2021	M/M		2020	Y/Y
Advisory and Brokerage Assets(3)
Advisory Assets	559.0	550.5	1.5	%	364.9	53.2	%
Brokerage Assets	515.1	512.7	0.5	%	381.0	35.2	%
Total Advisory and Brokerage Assets	1,074.1	1,063.2	1.0	%	745.9	44.0	%
Net New Assets(2)
Net New Advisory Assets	5.7	38.0	n/m		3.1	n/m
Net New Brokerage Assets	0.4	35.9	n/m		1.1	n/m
Total Net New Assets(4)	6.1	73.8	n/m		4.2	n/m

Net Brokerage to Advisory Conversions	1.0	1.3	n/m		0.4	n/m
Client Cash Balances
Insured Cash Account Balances	34.5	35.0	(1.4	%)	33.5	3.0	%
Deposit Cash Account Balances	7.6	7.5	1.3	%	8.0	(5.0	%)
Total Bank Sweep Balances	42.0	42.5	(1.2	%)	41.5	1.2	%
Money Market Account Cash Balances(5)	4.3	3.7	16.2	%	1.7	152.9	%
Purchased Money Market Fund Balances	1.5	1.5	0.0	%	2.9	(48.3	%)
Total Money Market Balances	5.8	5.2	11.5	%	4.6	26.1	%
Total Client Cash Balances	47.8	47.7	0.2	%	46.2	3.2	%

Net Buy (Sell) Activity	5.2		6.9		n/m			3.9		n/m
Market Indices
S&P 500 (end of period)	4,204		4,181		0.6		%	3,044		38.1		%
Fed Funds Effective Rate (average bps)	6		7		(14.3		%)	5		20.0		%

(1)   May Net New Assets do not include results from Waddell & Reed advisors.
(2)   Waddell & Reed assets were not included in the calculation of our May net new asset annualized growth rate.
(3)   Assumes ~95% asset retention of Waddell & Reed total assets at the end of April 2021 and ~5% of total assets will not convert. As a reminder, this is equivalent to $67.1 billion of total assets, of which $32.6 billion were advisory and $34.5 billion were brokerage.
(4)   Total Net New Assets consist of asset inflows minus outflows, plus dividends, plus interest, minus advisory fees.
(5)   April 2021 results included $1.1 billion of Money Market Account cash balances from Waddell & Reed.

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 18,000 financial advisors, 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 (2020-2021 Kehrer Bielan Research & Consulting Annual TPM Report)

Securities and Advisory services offered through LPL Financial LLC, a registered investment advisor. Member FINRA/SIPC. We routinely disclose information that may be important to shareholders in the "Investor Relations" or "Press Releases" section of our website.

Investor Relations – Chris Koegel, (617) 897-4574

Media Relations – Lauren Hoyt-Williams, (980) 321-1232

investor.lpl.com/contact-us

FAQ

What were LPLA's total advisory and brokerage assets in May 2021?

LPLA reported total advisory and brokerage assets of approximately $1.074 trillion in May 2021.

How much net new assets did LPL Financial report for May 2021?

LPL Financial reported net new assets of $6.1 billion for May 2021.

What is the annualized growth rate for net new advisory assets for LPLA in May 2021?

The annualized growth rate for net new advisory assets in May 2021 was 13.2%.

What was the change in client cash balances for LPLA in May 2021?

Client cash balances increased to $47.8 billion in May 2021, a slight increase of $0.1 billion from April.