LPL Financial Reports Monthly Activity for August 2024

Core Insights - LPL Financial reported a total advisory and brokerage assets of $1.56 trillion at the end of August 2024, reflecting a month-over-month increase of $30.8 billion, or 2.0% [1] - The company achieved total net new assets of $6.8 billion in August, with organic net new assets amounting to $6.6 billion, indicating a 5.2% annualized growth rate [2] - Total client cash balances decreased to $43.3 billion, down by $0.7 billion from July 2024, with net buying activity recorded at $12.6 billion [3] Advisory and Brokerage Assets - Advisory assets reached $869.5 billion, up 2.2% from July 2024 and up 27.7% year-over-year [4] - Brokerage assets totaled $690.6 billion, reflecting a 1.8% increase month-over-month and a 17.0% increase year-over-year [4] - Total advisory and brokerage assets increased by 22.7% compared to August 2023 [4] Organic and Acquired Net New Assets - Organic net new advisory assets were $5.4 billion, translating to a 7.7% annualized growth rate [3] - Excluding off-boarded assets, total organic net new advisory assets were $9.1 billion, resulting in a 12.8% annualized growth rate [3] - Acquired net new assets amounted to $0.3 billion, with total net new assets of $6.8 billion for August [4] Client Cash Balances - Total client cash balances decreased by 1.6% month-over-month and 9.2% year-over-year [6] - Insured cash account sweep was $30.4 billion, down 2.3% from July 2024 [5] - Total bank sweep cash decreased to $39.7 billion, a decline of 1.2% from the previous month [5] Market Drivers - The S&P 500 Index closed at 5,648, reflecting a 2.3% increase from July 2024 and a 25.3% increase year-over-year [6] - The Russell 2000 Index decreased by 1.6% month-over-month but increased by 16.7% year-over-year [6] - The Fed Funds daily effective rate remained stable at 533 basis points [6]