LPL Financial Reports Monthly Activity for April 2024
Rhea-AI Summary
LPL Financial Holdings (Nasdaq: LPLA) announced its April 2024 activity report, revealing a 1.9% decline in total advisory and brokerage assets to $1.41 trillion, a drop of $27.9 billion from March 2024. Despite this, the company added $12 billion in net new assets, including $5 billion from the acquisition of Crown Capital. Organic net new assets grew by $7 billion, with advisory assets increasing by $7.4 billion. Client cash balances fell slightly by $0.6 billion to $45.7 billion, while net buying was $12.3 billion. Advisory assets decreased 2.2%, brokerage assets by 1.6%. The S&P 500 and Russell 2000 indices also saw declines of 4.1% and 7.1%, respectively.
Important metrics include:
- Total advisory and brokerage assets: $1.41 trillion
- Net new assets: $12 billion
- Organic net new assets: $7 billion
- Client cash balances: $45.7 billion
Positive
- Addition of $12 billion in net new assets, including $5 billion from the acquisition of Crown Capital.
- Organic net new assets of $7 billion, indicating a healthy growth rate.
- Net buying activity of $12.3 billion.
Negative
- Total advisory and brokerage assets decreased by 1.9%, or $27.9 billion, compared to March 2024.
- Client cash balances fell by $0.6 billion to $45.7 billion.
- Advisory and brokerage assets saw declines of 2.2% and 1.6% respectively.
News Market Reaction
On the day this news was published, LPLA gained 3.61%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
SAN DIEGO, May 23, 2024 (GLOBE NEWSWIRE) -- LPL Financial LLC (“LPL Financial”), a wholly owned subsidiary of LPL Financial Holdings Inc. (Nasdaq: LPLA) (the “Company”), today released its monthly activity report for April 2024.
Total advisory and brokerage assets at the end of April were
Total net new assets for April were
Total organic net new assets for April were
Total client cash balances at the end of April were
| (End of period $ in billions, unless noted) | April | March | Change | April | Change | |||
| 2024 | 2024 | M/M | 2023 | Y/Y | ||||
| Advisory and Brokerage Assets | ||||||||
| Advisory assets | 775.5 | 793.0 | (2.2 | %) | 628.2 | 23.4 | % | |
| Brokerage assets | 637.5 | 647.9 | (1.6 | %) | 559.5 | 13.9 | % | |
| Total Advisory and Brokerage Assets | 1,413.0 | 1,440.9 | (1.9 | %) | 1,187.7 | 19.0 | % | |
| Total Net New Assets | ||||||||
| Net new advisory assets | 7.6 | 7.5 | n/m | 3.4 | n/m | |||
| Net new brokerage assets | 4.3 | 0.4 | n/m | 1.0 | n/m | |||
| Total Net New Assets | 12.0 | 7.9 | n/m | 4.4 | n/m | |||
| Organic Net New Assets | ||||||||
| Net new organic advisory assets | 7.4 | 7.5 | n/m | 3.4 | n/m | |||
| Net new organic brokerage assets | (0.4 | ) | 0.4 | n/m | 1.0 | n/m | ||
| Total Organic Net New Assets | 7.0 | 7.9 | n/m | 4.4 | n/m | |||
| Net brokerage to advisory conversions | 1.2 | 1.3 | n/m | 0.6 | n/m | |||
| Client Cash Balances | ||||||||
| Insured cash account sweep | 32.5 | 32.6 | (0.3 | %) | 37.0 | (12.2 | %) | |
| Deposit cash account sweep | 9.1 | 9.2 | (1.1 | %) | 9.5 | (4.2 | %) | |
| Total Bank Sweep | 41.6 | 41.8 | (0.5 | %) | 46.5 | (10.5 | %) | |
| Money market sweep | 2.3 | 2.4 | (4.2 | %) | 2.5 | (8.0 | %) | |
| Total Client Cash Sweep Held by Third Parties | 43.8 | 44.2 | (0.9 | %) | 49.0 | (10.6 | %) | |
| Client cash account(1) | 1.9 | 2.1 | (9.5 | %) | 1.5 | 26.7 | % | |
| Total Client Cash Balances | 45.7 | 46.3 | (1.3 | %) | 50.4 | (9.3 | %) | |
| Net buy (sell) activity | 12.3 | 12.9 | n/m | 11.1 | n/m | |||
| Market Drivers | ||||||||
| S&P 500 Index (end of period) | 5,036 | 5,254 | (4.1 | %) | 4,169 | 20.8 | % | |
| Russell 2000 Index (end of period) | 1,974 | 2,125 | (7.1 | %) | 1,769 | 11.6 | % | |
| Fed Funds daily effective rate (average bps) | 533 | 533 | — | % | 483 | 10.4 | % | |
____________________
Note: Totals may not foot due to rounding.
(1) During the first quarter of 2024, the Company updated its definition of client cash account balances to exclude other client payables. Prior period disclosures have been updated to reflect this change as applicable.
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.
Contacts
Investor Relations
investor.relations@lplfinancial.com
Media Relations
media.relations@lplfinancial.com
About LPL Financial
LPL Financial Holdings Inc. (Nasdaq: LPLA) was founded on the principle that the firm should work for advisors and institutions, and not the other way around. Today, LPL is a leader in the markets we serve, serving nearly 23,000 financial advisors, including advisors at approximately 1,100 institutions and at approximately 570 registered investment advisor (“RIA”) firms nationwide. We are steadfast in our commitment to the advisor-mediated model and the belief that Americans deserve access to personalized guidance from a financial professional. At LPL, independence means that advisors and institution leaders have the freedom they deserve to choose the business model, services and technology resources that allow them to run a thriving business. They have the flexibility to do business their way. And they have the freedom to manage their client relationships because they know their clients best. Simply put, we take care of our advisors and institutions, so they can take care of their clients.
Securities and Advisory services offered through LPL Financial LLC (“LPL Financial”), a registered investment advisor. Member FINRA/SIPC. LPL Financial and its affiliated companies provide financial services only from the United States.
Throughout this communication, the terms “financial advisors” and “advisors” are used to refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial.
We routinely disclose information that may be important to shareholders in the “Investor Relations” or “Press Releases” section of our website.
FAQ
What were LPL Financial's total advisory and brokerage assets at the end of April 2024?
How much did LPL Financial's advisory assets decrease in April 2024?
What is the annualized growth rate of LPL Financial's organic net new advisory assets?
How much did LPL Financial's client cash balances decrease in April 2024?
How much did LPL Financial acquire in net new assets in April 2024?
What was LPL Financial's net buying activity in April 2024?
How did the S&P 500 and Russell 2000 indices perform in April 2024 according to LPL Financial's report?
