LPL Financial Reports Monthly Activity for October 2021

Rhea-AI Summary

LPL Financial LLC, a subsidiary of LPL Financial Holdings (LPLA), reported October 2021 activity with total advisory and brokerage assets hitting approximately $1.18 trillion, an increase of 4.2% from September. The company saw total net new assets of $7.2 billion, equating to a 7.6% annualized growth rate, with advisory assets contributing $6.6 billion at a 13.2% growth rate. Client cash balances rose slightly to $50.9 billion. Notably, while asset figures grew, net new advisory assets declined from $9.6 billion in September.

Positive

• Total advisory and brokerage assets increased by $48 billion, or 4.2%, month-over-month.
• Total net new assets for October reached $7.2 billion, indicating a 7.6% annualized growth rate.
• Net buying activity in October was robust at $5.8 billion.

Negative

• Net new advisory assets decreased from $9.6 billion in September to $6.6 billion in October.
• Total net new assets declined from $11.4 billion in September to $7.2 billion in October.

SAN DIEGO, Nov. 18, 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 October 2021.

Total advisory and brokerage assets at the end of October were approximately $1.18 trillion, an increase of $48 billion, or 4.2%, compared to the end of September 2021.

Total net new assets for October were $7.2 billion, translating to a 7.6% annualized growth rate. Total net new advisory assets were $6.6 billion, translating to a 13.2% annualized growth rate.

Total client cash balances at the end of October were $50.9 billion, an increase of $0.2 billion compared to the end of September 2021. Net buying in October was $5.8 billion.

(End of Period $ in billions, unless noted)	October	September	Change	October	Change
	2021	2021	M/M	2020	Y/Y
Advisory and Brokerage Assets
Advisory Assets	623.3	594.0	4.9%	406.0	53.5%
Brokerage Assets	557.2	538.6	3.5%	401.6	38.7%
Total Advisory and Brokerage Assets	1,180.5	1,132.6	4.2 %	807.6	46.2 %
Total Net New Assets
Net New Advisory Assets	6.6	9.6	n/m	5.7	n/m
Net New Brokerage Assets	0.7	1.8	n/m	0.8	n/m
Total Net New Assets	7.2	11.4	n/m	6.5	n/m
Organic Net New Assets
Net New Organic Advisory Assets	6.6	9.0	n/m	4.8	n/m
Net New Organic Brokerage Assets	0.7	0.1	n/m	0.2	n/m
Total Organic Net New Assets	7.2	9.1	n/m	5.0	n/m

Net Brokerage to Advisory Conversions	1.1	1.1	n/m	0.9	n/m
Client Cash Balances
Insured Cash Account Balances	29.3	30.5	(3.9%)	36.0	(18.6%)
Deposit Cash Account Balances	8.5	8.6	(1.2%)	8.6	(1.2%)
Total Bank Sweep Balances	37.8	39.0	(3.1%)	44.6	(15.2%)
Money Market Account Cash Balances	11.3	9.9	14.1%	1.6	n/m
Purchased Money Market Funds	1.8	1.8	0.0%	2.2	(18.2%)
Total Money Market Balances	13.1	11.7	12.0 %	3.8	n/m
Total Client Cash Balances	50.9	50.7	0.4 %	48.3	5.4%

Net Buy (Sell) Activity	5.8	5.5	n/m	2.5	n/m
Market Indices
S&P 500 (end of period)	4,605	4,308	6.9%	3,270	40.8%
Fed Funds Effective Rate (average bps)	8	8	0.0%	9	(11.1%)

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 19,000 financial advisors, and approximately 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 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.

* 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 1996-2021)
No. 1 provider of third-party brokerage services to banks and credit unions (2020-2021 Kehrer Bielan Research & Consulting Annual TPM Report)
Fortune 500 as of June 2021

Securities and Advisory services offered through LPL Financial LLC, a registered investment advisor. Member FINRA/SIPC.

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 LLC. 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 October 2021?

In October 2021, LPL Financial reported total advisory and brokerage assets of approximately $1.18 trillion.

How much did LPLA's net new assets grow in October 2021?

LPLA's total net new assets for October 2021 were $7.2 billion, reflecting a 7.6% annualized growth rate.

What was the change in LPLA's client cash balances in October 2021?

LPLA's client cash balances increased slightly to $50.9 billion in October 2021, a $0.2 billion rise from September.

How did LPLA's net new advisory assets change from September to October 2021?

Net new advisory assets for LPLA decreased from $9.6 billion in September to $6.6 billion in October 2021.