SAN DIEGO, Feb. 16, 2021 (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 January 2021.
Total advisory and brokerage assets served at the end of January were approximately $907 billion, an increase of 0.4% compared to the end of December 2020.
Total net new assets for January were an inflow of $3.6 billion, translating to a 4.8% annualized growth rate. This includes total net new advisory assets of $4.2 billion, translating to a 10.9% annualized growth rate.
Total client cash balances at the end of January were $48.8 billion, a decrease of $0.1 billion compared to the end of December 2020. Net buying in January was $4.5 billion.
| (End of Period $ in billions, unless noted) | January | December | Change | January | Change | ||||||
| 2021 | 2020 | M/M | 2020 | Y/Y | |||||||
| Assets Served | |||||||||||
| Advisory Assets | 464.6 | 461.2 | 0.7% | 369.2 | 25.8% | ||||||
| Brokerage Assets | 442.3 | 441.9 | 0.1% | 397.7 | 11.2% | ||||||
| Total Advisory and Brokerage Assets | 907.0 | 903.1 | 0.4% | 767.0 | 18.3% | ||||||
Total Net New Assets* | |||||||||||
| Net New Advisory Assets | 4.2 | 6.8 | n/m | 3.8 | n/m | ||||||
| Net New Brokerage Assets | (0.6) | 1.1 | n/m | (0.3) | n/m | ||||||
| Total Net New Assets | 3.6 | 7.9 | n/m | 3.5 | n/m | ||||||
| Net Brokerage to Advisory Conversions | 1.0 | 1.0 | n/m | 0.9 | n/m | ||||||
Client Cash Balances | |||||||||||
| Insured Cash Account Balances | 37.5 | 37.3 | 0.5% | 24.4 | 53.7% | ||||||
| Deposit Cash Account Balances | 8.0 | 8.2 | (2.4%) | 4.8 | 66.7% | ||||||
| Total Bank Sweep Balances | 45.5 | 45.5 | 0.0% | 29.2 | 55.8% | ||||||
| Money Market Account Cash Balances | 1.4 | 1.5 | n/m | 1.7 | n/m | ||||||
| Purchased Money Market Funds | 1.8 | 1.9 | n/m | 2.5 | n/m | ||||||
| Total Money Market Balances | 3.2 | 3.3 | (3.0%) | 4.2 | (23.8%) | ||||||
| Total Client Cash Balances | 48.8 | 48.9 | (0.2%) | 33.5 | 45.7% | ||||||
| Net Buy (Sell) Activity | 4.5 | 5.6 | n/m | 4.5 | n/m | ||||||
| Market Indices | |||||||||||
| S&P 500 (end of period) | 3,714 | 3,756 | (1.1%) | 3,226 | 15.1% | ||||||
| Fed Funds Effective Rate (average bps) | 9 | 9 | n/m | 155 | n/m | ||||||
* Total Net New Assets consists of asset inflows minus outflows, plus dividends, plus interest, minus advisory fees.
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 (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 |