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LPL Financial Reports Monthly Activity July 2021

By August 19, 2021August 28th, 2021Financial reports

SAN DIEGO, August 19, 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 July 2021.

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

Total new net assets for July stood at $ 10.0 billion(1), resulting in an 11.5%(2) annualized growth rate. This included $ 3.0 billion in M&T Bank brokerage assets which incorporated in July(3). Total new net advisory services assets amounted to $ 5.7 billion, resulting in a(2) annualized growth rate.

Total customer cash balances at the end of July stood at $ 48.5 billion, roughly stable from the end of June 2021. Net purchases in July were $ 6.5 billion.

(End of period $ in billions, unless otherwise indicated) July June Switch July Switch
2021 2021 H / M 2020 A / A
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%
New net assets(1)
New net advisory assets 5.7 11.2 n / m 2.9 n / m
New net brokerage assets 4.3 14.8 n / m 0.0 n / m
Total new net assets(5) 10.0 26.0 n / m 2.9 n / m
Net brokerage to advisory 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 cash account balances 7.9 7.6 3.9% 7.6 3.9%
Total bank transfer balances 42.2 41.7 1.2% 40.8 3.4%
Cash balances in money market accounts 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 Fed Funds rate (average bps) ten 8 25.0% 9 11.1%
(1) The new net assets for July do not include the results of the Waddell & Reed advisers, as these advisers entered the LPL platform towards the end of July 2021.
(2) Waddell & Reed’s total assets and net new assets were not included in the calculation of the July annualized growth rate of new net assets.
(3) By the end of July, $ 18.6 billion in client assets had been integrated from M&T Bank out of a total of $ 21.9 billion, of which $ 15.6 billion in client assets had been integrated. in June and $ 3.0 billion in client assets that were integrated in July.
(4) Assumes retention of approximately 98% of total Waddell & Reed assets at the end of June 2021 and approximately 2% of total assets will not be converted. This equates to $ 68.9 billion in total assets, including $ 33.5 billion in advice and $ 35.4 billion in brokerage.
(5) Total new net assets include inflows minus outflows, plus dividends, plus interest, minus advisory fees.
Note: As of July 2021, approximately 280 Waddell & Reed Associate Advisors became Financial Professionals with LPL Financial upon onboarding to LPL’s platform and will be considered new Net Advisors in Q3 2021.

For more information on 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 .

About LPL Financière
LPL Financial was founded on the principle that the firm should work for the adviser, 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 companies nationwide. We are unwavering in our commitment to the advisor-centric model and our belief that Americans deserve access to objective advice from a financial advisor. At LPL, independence means that advisors have the freedom they deserve to choose the business model, services and technological resources that allow them to perfectly manage their practice. And they have the freedom to manage their customer relationships because they know their customers better. Simply put, we take care of our advisors so that they can take care of their clients.

* AIR Custodian (Cerulli Associates, 2019 US RIA Marketplace Report)
1st independent broker in the United States (based on total revenues, Financial Planning magazine June 1996-2020)
N ° 1 in brokerage services on behalf of third parties to banks and credit unions (TPM Annual Report 2019-2020 by Kehrer Bielan Research & Consulting)
Fortune 500 in June 2021

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

Throughout this communication, the terms “financial advisers” and “advisers” are used to refer to the registered representatives and / or representatives of the 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 advisers that LPL expects to reflect as net new advisers in the third quarter of 2021, and any other statements that are not related to current facts or conditions or which are not purely historical, constitute forward-looking statements. statements. These forward-looking statements are based on the historical performance of the Company and its plans, estimates and expectations as at August 19, 2021. Forward-looking statements do not guarantee that future results, plans, intentions or expectations expressed or implied will be achieved. The matters subject to forward-looking statements involve known and unknown risks and uncertainties, including economic, legislative, regulatory, competitive and other factors, which may cause actual financial or operational results, levels of The activity or timing of events is materially different from those expressed or implied by forward-looking statements. Significant factors that could cause or contribute to such differences include the determination of the newly integrated partners of Waddell & Reed to terminate their affiliation with LPL Financial, as well as the other factors set out in Part I, “Section 1A. Risk Factors ”in the Company’s 2020 Annual Report on Form 10-K, as may be amended or updated in the Company’s Quarterly Reports on Form 10-Q or other documents filed 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 any 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

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