Centrally Managed Assets

LPL’s Centrally Managed Assets Exceed $35 Billion

June 04, 2018

LPL Financial

LPL advisors are increasingly taking advantage of the firm’s centrally managed advisory platforms, including Model Wealth Portfolios (MWP), Optimum Market Portfolios (OMP) and Personal Wealth Portfolios (PWP), to outsource investment management activities and build efficiency into their practices. As a result, LPL’s total centrally managed assets now exceed $35 billion as of March 31, 2018. Centrally managed assets are a subset of LPL’s total advisory assets under custody at LPL Financial LLC.

“We continue to focus on delivering choice to our advisors,” said Rob Pettman, LPL executive vice president, Product and Platform Management. “For those advisors who believe they deliver the most value to their clients through services such as financial advice and planning, our centrally managed platforms can be an attractive option by enabling them to outsource investment management activities like research, rebalancing, and trading.”

LPL plans to continue to invest in new capabilities, including its planned launch of the “advisor sleeve” capability in MWP, which it believes can deliver even more value to advisors and increase the appeal of its centrally managed platforms.

For additional information regarding centrally managed assets and other LPL Financial business metrics, please refer to LPL Financial Holdings Inc.’s most recent earnings release, which is available here.

There is no assurance that the Centrally Managed platforms discussed are suitable for all investors or will yield positive outcomes. The purchase of certain securities will be required to affect some of the strategies. Investing involves risks including potential loss of principal.

Forward-Looking Statements

Statements in this article regarding LPL Financial Holdings Inc.'s (together with its subsidiaries, including LPL Financial LLC, the "Company") future advisory platform enhancements, including expected future capabilities, as well as any other statements that are not related to present facts or current conditions or that are not purely historical, constitute forward-looking statements. These forward-looking statements are based on the Company's plans, intentions and expectations as of June 4, 2018. Forward-looking statements are not guarantees that results, plans, intentions or expectations expressed or implied by the Company will be achieved. Matters subject to forward-looking statements involve known and unknown risks and uncertainties, including economic, legislative, regulatory, competitive and other factors, which may cause levels of activity or the timing of events, to be materially different than those expressed or implied by forward-looking statements. In particular, the Company can provide no assurance that the proposed platform enhancement will ultimately provide the anticipated benefits or functionality, be widely implemented and/or adopted by financial advisors or institutions, generate efficiencies and/or cost savings for, complement and/or or result in the expansion of the business of financial advisors or institutions, or that the current and/or future clients of such financial advisors or institution will widely utilize the platform or pricing changes. Important factors that could cause or contribute to such differences include: changes in general economic and financial market conditions, including retail investor sentiment; effects of competition in the financial services industry, including with regard to similar platforms and/or solutions; the Company's success in developing and maintaining an “advisor sleeve” capability; and the other factors set forth in Part I, "Item 1A. Risk Factors" in the Company's 2017 Annual Report on Form 10-K and any subsequent SEC filing. 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 article, even if its estimates change, and you should not rely on those statements as representing the Company's views as of any date subsequent to the date of June 4, 2018.