LPL Financial Reports Monthly Activity for October 2024

Rhea-AI Summary

LPL Financial reported total advisory and brokerage assets of $1.67 trillion for October 2024, marking a 5.1% increase from September. Total net new assets reached $96.6 billion, including $88.0 billion from the Atria Wealth Solutions acquisition. Organic net new assets were $8.3 billion, representing a 6.2% annualized growth rate. Client cash balances increased to $48.3 billion, up $2.5 billion from September. Net buying activity was $12.5 billion, while advisory assets grew to $910.6 billion and brokerage assets reached $762.7 billion.

Positive

• Total advisory and brokerage assets increased 5.1% to $1.67 trillion
• Acquisition of Atria Wealth Solutions added $88.0 billion in net new assets
• Organic net new assets grew at 6.2% annualized rate ($8.3 billion)
• Advisory assets showed strong growth with 11.9% annualized rate
• Net buying activity remained robust at $12.5 billion

Negative

• Client cash account balances decreased 27.8% month-over-month
• $1.0 billion of assets off-boarded due to separation from misaligned large OSJs
• S&P 500 and Russell 2000 indices showed negative performance (-1.0% and -1.5% respectively)

Insights

Financial Analyst

The October 2024 metrics reveal substantial growth for LPL Financial, with total assets reaching $1.67 trillion, a 5.1% monthly increase. The most significant development is the Atria Wealth Solutions acquisition, contributing $88.0 billion in acquired assets. Organic growth remains robust at 6.2% annualized rate (7.0% excluding planned separations), demonstrating strong underlying business momentum.

Client cash balances increased to $48.3 billion, with $2.3 billion from Atria. The $12.5 billion in net buying activity indicates positive client engagement and investment confidence. Advisory assets showed particularly strong organic growth at 11.9% annualized rate, highlighting the ongoing shift toward fee-based business models.

SAN DIEGO, Nov. 21, 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 October 2024.

Total advisory and brokerage assets at the end of October were $1.67 trillion, an increase of $81.2 billion, or 5.1%, compared to the end of September 2024.

Total net new assets for October were $96.6 billion, which included $88.0 billion of acquired net new assets resulting from the acquisition of Atria Wealth Solutions, Inc. (“Atria”) and $0.3 billion of acquired net new assets resulting from Liquidity & Succession activity.

Total organic net new assets for October were $8.3 billion, translating to a 6.2% annualized growth rate. This included $1.0 billion of assets that off-boarded as part of the previously disclosed planned separation from misaligned large OSJs. Excluding these assets, organic net new assets were $9.3 billion, translating to a 7.0% annualized growth rate.

Total organic net new advisory assets were $8.8 billion, translating to a 11.9% annualized growth rate. Excluding the off-boarded assets from misaligned large OSJs, total organic net new advisory assets were $9.1 billion, translating to a 12.2% annualized growth rate.

Total client cash balances at the end of October were $48.3 billion, an increase of $2.5 billion compared to the end of September 2024. This included $2.3 billion resulting from the acquisition of Atria. Net buying in October was $12.5 billion.

(End of period $ in billions, unless noted)	October		September	Change	October	Change
	2024		2024	M/M	2023	Y/Y
Advisory and Brokerage Assets
Advisory assets	910.6		892.0	2.1%	653.6	39.3%
Brokerage assets	762.7		700.1	8.9%	565.8	34.8%
Total Advisory and Brokerage Assets	1,673.3		1,592.1	5.1%	1,219.4	37.2%
Organic Net New Assets
Organic net new advisory assets	8.8		11.0	n/m	5.7	n/m
Organic net new brokerage assets	(0.5)		0.5	n/m	1.5	n/m
Total Organic Net New Assets	8.3		11.4	n/m	7.2	n/m
Acquired Net New Assets
Acquired net new advisory assets	21.3		0.2	n/m	0.0	n/m
Acquired net new brokerage assets	67.0		0.1	n/m	0.0	n/m
Total Acquired Net New Assets	88.3		0.3	n/m	0.0	n/m
Total Net New Assets
Net new advisory assets	30.1		11.2	n/m	5.7	n/m
Net new brokerage assets	66.5		0.5	n/m	1.5	n/m
Total Net New Assets	96.6		11.7	n/m	7.2	n/m
Net brokerage to advisory conversions	1.1		1.2	n/m	0.8	n/m
Client Cash Balances
Insured cash account sweep	34.7		32.1	8.1%	33.5	3.6%
Deposit cash account sweep	9.7		9.6	1.0%	9.0	7.8%
Total Bank Sweep	44.4		41.7	6.5%	42.5	4.5%
Money market sweep	2.6		2.3	13.0%	2.4	8.3%
Total Client Cash Sweep Held by Third Parties	47.0		44.0	6.8%	44.9	4.7%
Client cash account(1)	1.3		1.8	(27.8%)	1.7	(23.5%)
Total Client Cash Balances	48.3		45.8	5.5%	46.6	3.6%
Net buy (sell) activity	12.5		12.2	n/m	10.7	n/m
Market Drivers
S&P 500 Index (end of period)	5,705		5,762	(1.0%)	4,194	36.0%
Russell 2000 Index (end of period)	2,197		2,230	(1.5%)	1,662	32.1%
Fed Funds daily effective rate (average bps)	483		513	(5.8%)	533	(9.4%)

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) is among the fastest growing wealth management firms in the U.S. As a leader in the financial advisor-mediated marketplace, LPL supports more than 28,000 financial advisors and the wealth management practices of approximately 1,200 financial institutions, servicing and custodying approximately $1.7 trillion in brokerage and advisory assets on behalf of approximately 6 million Americans. The firm provides a wide range of advisor affiliation models, investment solutions, fintech tools and practice management services, ensuring that advisors and institutions have the flexibility to choose the business model, services, and technology resources they need to run thriving businesses. For further information about LPL, please visit www.lpl.com.

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 was LPL Financial's (LPLA) total asset growth in October 2024?

LPL Financial's total advisory and brokerage assets grew by $81.2 billion or 5.1% to $1.67 trillion in October 2024 compared to September 2024.

How much did the Atria acquisition contribute to LPLA's assets in October 2024?

The Atria Wealth Solutions acquisition contributed $88.0 billion in acquired net new assets to LPL Financial in October 2024.

What was LPLA's organic growth rate in October 2024?

LPL Financial's organic net new assets were $8.3 billion in October 2024, translating to a 6.2% annualized growth rate.

How much were LPL Financial's (LPLA) client cash balances in October 2024?

LPL Financial's total client cash balances were $48.3 billion at the end of October 2024, an increase of $2.5 billion from September 2024.