LPL Financial (LPLA) May Assets Balance Up on Solid Markets

·3-min read

LPL Financial Holdings Inc.’s LPLA total brokerage and advisory assets of $1.07 trillion at the end of May 2021 grew 1% from the prior month and 44% year over year. Of the total assets, brokerage assets were $515.1 billion and advisory assets totaled $559 billion.

The increase was mainly driven by the impressive performance of the equity markets and the strategic acquisition of Waddell & Reed’s wealth management business in April.

Total net new assets were $6.1 billion in the reported month. This included $0.3 billion of brokerage assets from BMO Harris Financial Advisors that onboarded in May. In April 2021, net new assets were $73.8 billion and in May 2020, it summed $4.2 billion.

LPL Financial reported $47.8 billion of total client cash balance, up from $47.7 billion in April 2021 and $46.2 billion recorded in May 2020. Further, of the total balance, $34.5 billion was insured cash and $7.6 billion was deposit cash, while the remaining was money-market balance.

Shares of LPL Financial have surged 72.2% in the past 12 months, underperforming 88.8% growth recorded by the industry.

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The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Brokerage Firms

Interactive Brokers Group IBKR released the Electronic Brokerage segment’s performance metrics for May 2021. The segment, which deals with the clearance and settlement of trades for individual and institutional clients globally, reported client Daily Average Revenue Trades of 2,250,000, jumping 37% from May 2020 and 3% from April 2021.

Tradeweb Markets Inc. TW reported total trading volume of $19.6 trillion in May 2021. Average daily volumes were $980.4 billion, up 23.9% year over year.

Charles Schwab SCHW released its activity report for the month of May 2021. Total client assets were $7.40 trillion, up 1% from April 2021 and 84% from May 2020. Client assets receiving ongoing advisory services were $3.67 trillion, up 1% from the prior month and 79% year over year.

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