LPL Financial Reports Monthly Activity for November 2020

Rhea-AI Summary

LPL Financial reported a strong monthly activity report for November 2020, with total advisory and brokerage assets reaching approximately $873 billion, marking an 8.1% increase from October. The firm saw a total organic net new asset inflow of $4.9 billion, equating to a 7.3% annualized growth rate, driven by $4.2 billion in new advisory assets, which alone exhibited a 12.4% growth rate. Additionally, client cash balances slightly decreased to $48.1 billion, while net buying during the month was reported at $4.2 billion.

Positive

• Total advisory and brokerage assets rose to approximately $873 billion, an increase of 8.1%.
• Total organic net new assets inflow was $4.9 billion, indicating a 7.3% annualized growth rate.
• Organic net new advisory assets reached $4.2 billion, translating to a 12.4% growth rate.
• Total net new assets for November included $2.5 billion from E.K. Riley Investments, enhancing growth.

Negative

• Client cash balances decreased by $0.2 billion compared to October 2020.

SAN DIEGO, Dec. 15, 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) (the “Company”), today released its monthly activity report for November 2020.

Total advisory and brokerage assets served at the end of November were approximately $873 billion, an increase of 8.1% compared to the end of October 2020.

Total organic net new assets for November were an inflow of $4.9 billion, translating to a 7.3% annualized growth rate. This includes total organic net new advisory assets of $4.2 billion, translating to a 12.4% annualized growth rate.

Total net new assets for November were $7.4 billion, which include $2.5 billion of advisory and brokerage assets from E.K. Riley Investments, LLC that were onboarded in November, including $1.6 billion of advisory assets and $0.9 of brokerage assets.

Total client cash balances at the end of November were $48.1 billion, a decrease of $0.2 billion compared to the end of October 2020. Net buying in November was $4.2 billion.

(End of Period $ in billions, unless noted)	November		October	Change		November							Change
	2020		2020	M/M		2019							Y/Y
Assets Served
Advisory Assets	442.0		406.0	8.9%		354.9							24.5%
Brokerage Assets	431.3		401.6	7.4%		392.9							9.8%
Total Advisory and Brokerage Assets	873.3		807.6	8.1%		747.8							16.8%
Total Net New Assets*
Net New Advisory Assets	5.8		5.7	n/m		3.1							n/m
Net New Brokerage Assets	1.6		0.8	n/m		0.0							n/m
Total Net New Assets	7.4		6.5	n/m		3.1							n/m
Total Net New Assets* Prior to M&A†
Net New Advisory Assets	4.2		4.8	n/m		3.1							n/m
Net New Brokerage Assets	0.7		0.2	n/m		0.0							n/m
Total Net New Assets	4.9		5.0	n/m		3.1							n/m
Net Brokerage to Advisory Conversions	0.7		0.9	n/m		0.7							n/m
Client Cash Balances
Insured Cash Account Balances	36.1		36.0	0.3%		22.9							57.6%
Deposit Cash Account Balances	8.3		8.6	-3.5%		4.6							80.4%
Total Insured Sweep Balances	44.5		44.6	-0.2%		27.5							61.8%
Money Market Sweep Accounts	1.5		1.6	n/m		2.0							n/m
Purchased Money Market Funds	2.1		2.2	n/m		2.2							n/m
Total Money Market Balances	3.6		3.8	-5.3		4.3							-16.3
Total Client Cash Balances	48.1		48.3	-0.4		31.8							51.3%

Net Buy (Sell) Activity	4.2			2.5			n/m				3.3			n/m
Market Indices
S&P 500 (end of period)	3,622			3,270			10.8%				3,141			15.3%
Fed Funds Effective Rate (average bps)	9			9			n/m				155			n/m

* Total Net New Assets consists of asset inflows minus outflows, plus dividends, plus interest, minus advisory fees.
† M&A includes $2.5B of Net New Assets related to E.K. Riley Investments, LLC in November 2020, and $1.5B of Net New Assets related to Lucia Securities, LLC in October 2020.

Note: LPL closed its acquisition of Lucia Securities, LLC in August 2020 and onboarded assets in October 2020. Additionally,
LPL closed its acquisition of E.K. Riley Investments, LLC in August 2020 and onboarded assets in November 2020.

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, the nation’s largest independent broker/dealer⁽⁺⁾ and a leading custodian (or provider of custodial services) to RIAs. 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.

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 – Jeff Mochal, (704) 733-3589
investor.lpl.com/contact-us  

FAQ

What were LPLA's total advisory and brokerage assets at the end of November 2020?

At the end of November 2020, LPLA's total advisory and brokerage assets were approximately $873 billion.

How much were the net new assets for LPLA in November 2020?

LPLA reported total net new assets of $7.4 billion for November 2020.

What was the organic net new assets inflow reported by LPLA in November 2020?

LPLA reported an organic net new assets inflow of $4.9 billion in November 2020.

What was the change in client cash balances for LPLA in November 2020?

Client cash balances at LPLA decreased by $0.2 billion compared to October 2020, totaling $48.1 billion.