LPL Financial Reports Monthly Activity for October 2020
SAN DIEGO, Nov. 10, 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 October 2020.
Total advisory and brokerage assets served at the end of October were approximately $808 billion, a decrease of 0.3% compared to the end of September 2020.
Total organic net new assets for October were an inflow of $5.0 billion, translating to a 7.4% annualized growth rate. This includes total organic net new advisory assets of $4.8 billion, translating to a 14.2% annualized growth rate.
Total net new assets for October were $6.5 billion, which include $1.5 billion of advisory and brokerage assets from Lucia Securities, LLC that were onboarded in October, including $0.9 billion of advisory assets and $0.6 of brokerage assets.
Total client cash balances at the end of October were $48.3 billion, an increase of $1.7 billion compared to the end of September 2020. Net buying in October was $2.5 billion.
| (End of Period $ in billions, unless noted) | October | September | Change | October | Change | ||
| 2020 | 2020 | M/M | 2019 | Y/Y | |||
| Assets Served | |||||||
| Advisory Assets | 406.0 | 405.9 | 0.0 | % | 345.3 | 17.6 | % |
| Brokerage Assets | 401.6 | 404.4 | (0.7 | )% | 386.5 | 3.9 | % |
| Total Advisory and Brokerage Assets | 807.6 | 810.4 | (0.3 | )% | 731.7 | 10.4 | % |
| Total Net New Assets* | |||||||
| Net New Advisory Assets | 5.7 | 4.4 | n/m | 2.8 | n/m | ||
| Net New Brokerage Assets | 0.8 | 0.7 | n/m | 0.6 | n/m | ||
| Total Net New Assets | 6.5 | 5.1 | n/m | 3.4 | n/m | ||
| Total Net New Assets* Prior to Lucia Securities | |||||||
| Net New Advisory Assets | 4.8 | 4.4 | n/m | 2.8 | n/m | ||
| Net New Brokerage Assets | 0.2 | 0.7 | n/m | 0.6 | n/m | ||
| Total Net New Assets | 5.0 | 5.1 | n/m | 3.4 | n/m | ||
| Net Brokerage to Advisory Conversions | 0.9 | 0.7 | n/m | 0.6 | n/m | ||
| Client Cash Balances | |||||||
| Insured Cash Account Balances | 36.0 | 34.7 | 3.7 | % | 22.6 | 59.3 | % |
| Deposit Cash Account Balances | 8.6 | 8.0 | 7.5 | % | 4.6 | 87.0 | % |
| Total Insured Sweep Balances | 44.6 | 42.7 | 4.4 | % | 27.2 | 64.0 | % |
| Money Market Sweep Accounts | 1.6 | 1.5 | n/m | 2.3 | n/m | ||
| Purchased Money Market Funds | 2.2 | 2.3 | n/m | 2.1 | n/m | ||
| Total Money Market Balances | 3.8 | 3.9 | (2.6 | )% | 4.4 | (13.6 | )% |
| Total Client Cash Balances | 48.3 | 46.6 | 3.6 | % | 31.6 | 52.8 | % |
| Net Buy (Sell) Activity | 2.5 | 2.9 | n/m | 3.3 | n/m | ||
| Market Indices | |||||||
| S&P 500 (end of period) | 3,270 | 3,363 | (2.8 | )% | 3,038 | 7.6 | % |
| Fed Funds Effective Rate (average bps) | 9 | 9 | n/m | 183 | n/m | ||
| * Total Net New Assets consists of asset inflows minus outflows, plus dividends, plus interest, minus advisory fees. | |||||||
| Note: | LPL closed its acquisition of Lucia Securities, LLC in August 2020 and onboarded assets in October 2020. |
| LPL’s October 2020 results do not include any assets related to LPL’s E.K. Riley Investments, LLC acquisition, which as of the end of October have not onboarded to LPL’s platform. |
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 FinancialLPL 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 |
