LPL Financial Reports Monthly Activity for January 2022

SAN DIEGO, Feb. 17 12, 2022 (GLOBE NEWSWIRE) — LPL Financial LLC, a wholly owned subsidiary of LPL Financial Holdings Inc. (Nasdaq: LPLA) (the “Company”), today released its Monthly Business Report for January 2022.

Total advisory and brokerage assets at the end of January were approximately $1.16 trillion, down $49 billion, or 4.0%, from the end of December 2021.

Total net new assets for January were $6.1 billion, which translates to an annualized growth rate of 6.0%. Total net new advisory assets were $5.9 billion, translating to an annualized growth rate of 11.0%.

Total customer cash balances at the end of January were $58.4 billion, an increase of $1.1 billion from the end of December 2021. Net purchases in January were $3.5 billion. dollars.

(End of period in billions of dollars, unless otherwise indicated) January December Change January Change
2022 2021 M/M 2021 Y/Y
Advisory and brokerage assets
Advisory assets 619.6 643.2 (3.7 %) 464.6 33.4 %
Brokerage assets 538.2 563.2 (4.4 %) 442.3 21.7 %
Total advisory and brokerage assets 1,157.8 1,206.4 (4.0 %) 907.0 27.7 %
Total net new assets
Net new advisory assets 5.9 10.5 n/m 4.2 n/m
Net new brokerage assets 0.1 1.6 n/m (0.6 ) n/m
Total net new assets 6.1 12.1 n/m 3.6 n/m

New organic net assets

New Net Organic Advice Assets 5.9 10.5 n/m 4.2 n/m
Net new organic brokerage assets 0.1 1.6 n/m (0.6 ) n/m
Total organic net new assets 6.1 12.1 n/m 3.6 n/m
Net Brokerage to Advice Conversions 1.2 1.1 n/m 1.0 n/m
Customer cash balances
Insured cash account balances 29.6 30.0 (1.3 %) 37.5 (21.1 %)
Deposit of cash account balances 9.7 9.3 4.3 % 8.0 21.3 %
Total bank scan balances 39.4 39.3 0.3 % 45.5 (13.4 %)
Money Market Account Cash Balances 17.3 16.1 7.5 % 1.4 n/m
Money market funds purchased 1.7 1.9 (10.5 %) 1.8 (5.6 %)
Total Money Market Balances 19.0 18.0 5.6 % 3.2 n/m
Total customer cash balances 58.4 57.3 1.9 % 48.8 19.7 %
Net buying (selling) activity 3.5 4.7 n/m 4.5 n/m
Market indices
S&P 500 (end of period) 4,516 4,766 (5.2 %) 3,714 21.6 %
Russell 2000 (end of period) 2,028 2,245 (9.7 %) 2,074 (2.2 %)
Effective federal funds rate (basis point average) 8 8 0.0 % 9 (11.1 %)

For more information regarding these and other LPL Financial business metrics, please see the company’s most recent earnings announcement, which is available in the quarterly earnings section of investor.lpl.com.

About LPL Financial
LPL Financial Holdings Inc. (Nasdaq: LPLA) was founded on the principle that business should work for the advisor, not the other way around. Today, LPL is a leader* in the markets we serve, supporting nearly 20,000 financial advisors, including advisors in approximately 800 institution-based investment programs and approximately 500 registered investment advisory firms ( “RIA”) nationwide. We are unwavering in our commitment to the advisor-centric model and the belief that Americans deserve access to personalized advice from a financial advisor. At LPL, independence means advisors have the freedom they deserve to choose the business model, services and technology resources that allow them to run their practice perfectly. And they have the freedom to manage their relationships with their customers because they know their customers best. Simply put, we take care of our advisors, so they can take care of their clients.

* Best RIA Custodian (Cerulli Associates, 2020 US RIA Marketplace Report); #1 independent brokerage in the United States (based on total revenue, Financial Planning magazine 1996-2021); #1 provider of third-party brokerage services to banks and credit unions (2020-2021 Kehrer Bielan Research & Consulting Annual TPM Report); Fortune 500 in June 2021

Securities and advisory services offered by LPL Financial LLC, an SEC-registered broker-dealer and investment adviser. FINRA/SIPC member. LPL Financial and its affiliates provide financial services only from the United States.

Throughout this communication, the terms “financial advisers” and “advisors” are used to refer to registered representatives and/or representatives of investment advisers affiliated with LPL Financial LLC. We regularly disclose information that may be important to shareholders in the “Investor Relations” or “Press Releases” section of our website.

Marianne R. Winn