LPL Financial Reports Monthly Activity for July 2021

SAN DIEGO, Aug. 19, 2021 (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 July 2021.

Total advisory and brokerage assets at the end of July were approximately $1.13 trillion, an increase of $17.6 billion, or 1.6%, from the end of June 2021.

Total net new assets for July were $10.0 billion(1), resulting in 11.5%(2) annualized growth rate. This included $3.0 billion in brokerage assets from M&T Bank which was brought on board in July(3). Total advisory net new assets were $5.7 billion, an increase of 12.7%(2) annualized growth rate.

Total customer cash balances at the end of July were $48.5 billion, roughly flat compared to the end of June 2021. Net purchases in July were $6.5 billion.

(End of period in billions of dollars, unless otherwise indicated) July June Change July Change
2021 2021 M/M 2020 Y/Y
Advisory and brokerage assets(4)
Advisory assets 588.4 577.6 1.9% 392.7 49.8%
Brokerage assets 541.4 534.7 1.3% 399.2 35.6%
Total advisory and brokerage assets 1,129.9 1,112.3 1.6% 791.9 42.7%
Net new assets(1)
Net new advisory assets 5.7 11.2 n/m 2.9 n/m
Net new brokerage assets 4.3 14.8 n/m 0.0 n/m
Total net new assets(5) 10.0 26.0 n/m 2.9 n/m
Net Brokerage to Advice Conversions 0.8 0.9 n/m 0.7 n/m
Customer cash balances
Insured cash account balances 34.4 34.1 0.9% 33.2 3.6%
Deposit of cash account balances 7.9 7.6 3.9% 7.6 3.9%
Total bank scan balances 42.2 41.7 1.2% 40.8 3.4%
Money Market Account Cash Balances 4.3 5.0 (14.0%) 1.6 168.8%
Money market funds purchased 1.9 1.7 11.8% 2.8 (32.1%)
Total Money Market Balances 6.3 6.7 (6.0%) 4.4 43.2%
Total customer cash balances 48.5 48.4 0.2% 45.1 7.5%
Net buying (selling) activity 6.5 6.0 n/m 2.9 n/m
Market indices
S&P 500 (end of period) 4,395 4,298 2.3% 3,271 34.4%
Effective federal funds rate (basis point average) ten 8 25.0% 9 11.1%
(1) The July net new assets do not include the results of Waddell & Reed advisors, as these advisors joined the LPL platform towards the end of July 2021.
(2) Waddell & Reed’s assets and net new asset totals were not included in the July net new asset annualized growth rate calculation.
(3) At the end of July, $18.6 billion of client assets had been onboarded to M&T Bank out of a total of $21.9 billion, including $15.6 billion of client assets that had were onboarded in June and $3.0 billion of client assets that were onboarded in July.
(4) Assumes approximately 98% asset retention of Waddell & Reed’s total assets at the end of June 2021 and approximately 2% of total assets will not convert. This equates to $68.9 billion in total assets, including $33.5 billion in advisory and $35.4 billion in brokerage.
(5) Total net new assets include asset inflows less outflows, plus dividends, plus interest, less advisory fees.
Note: As of July 2021, approximately 280 Waddell & Reed Associate Advisors became finance professionals with LPL Financial upon onboarding LPL’s platform and will be reflected as net new advisors in Q3 2021.

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 was founded on the principle that the business should work for the advisor, 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 institutional investment programs and 450 independent RIA firms nationwide. We are unwavering in our commitment to the advisor-centric model and the belief that Americans deserve access to unbiased 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, 2019 US RIA Marketplace Report)
#1 Independent Broker in the United States (Based on Total Revenues, Financial Planning Magazine June 1996-2020)
1st provider of third-party brokerage services to banks and credit unions (2019-2020 Kehrer Bielan Research & Consulting Annual TPM Report)
Fortune 500 in June 2021

Securities and advisory services provided by LPL Financial LLC, a registered investment adviser. FINRA/SIPC member.

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.

Forward-looking statements
Statements in this press release regarding the number of Advisors LPL expects to reflect as net new Advisors in Q3 2021, and any other statements that do not relate to current facts or current conditions or that is not purely historical, constitutes forward-looking statements. These forward-looking statements are based on the Company’s historical performance and its plans, estimates and expectations as of August 19, 2021. Forward-looking statements do not guarantee that any expressed or implied future results, plans, intentions or expectations will be achieved. Matters that are the subject of forward-looking statements involve known and unknown risks and uncertainties, including economic, legislative, regulatory, competitive and other factors, which may cause actual financial or operating results, levels of activity or the timing of events are materially different from those expressed or implied by the forward-looking statements. Important factors that could cause or contribute to such differences include the decision of the recently integrated partners of Waddell & Reed to terminate their affiliation with LPL Financial, as well as the other factors set forth in Part I, “Article 1A. Risk” in the company’s 2020 Annual Report on Form 10-K, as may be amended or restated in the company’s Quarterly Reports on Form 10-Q or other filings with the Securities and Exchange Commission.Except as required by law, the Company specifically disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this press release, even if its estimates change, and you should not rely on the statements contained herein as representing the views of the Company as of any date subsequent to the date of this press release.

Investor Relations – Chris Koegel, (617) 897-4574
Media Relations – Lauren Hoyt-Williams, (980) 321-1232
investor.lpl.com/contact us

Marianne R. Winn