Investor Presentaiton
2 Expanded capabilities to enhance the advisor value proposition
Advisory makes up the majority of our total assets
Our business is shifting from brokerage to advisory
Advisory Assets ($B) (6)
Advisory % of Total Advisory and Brokerage Assets
$643
$543
$461
$366
$273
$282
51%
53%
52%
48%
44%
45%
The shift to advisory can create value
.
Assets are shifting from brokerage to advisory, consistent with industry trends, as
end-clients seek greater levels of support from advisors
Our mix of advisory is below industry levels of ~70% advisory
Prior to large financial institutions, we are shifting towards advisory at a rate of
~2%+ per year
Advisory ROA is ~10 bps higher than brokerage ROA, so a ~2% shift is ~$13M in
annual Gross Profit* benefit
2017
2018
2019
2020
2021
Q3'22
•
LTM Organic
Growth Rate:
13%
9%
12%
14%
19%
11%
Centrally managed platforms are growing within advisory
Centrally Managed Assets ($B) (7)
Centrally Managed Assets % of Total Advisory Assets
$96
$83
•
$67
$52
$33
$38
14%
14%
15%
15%
15%
12%
Centrally managed platforms can create additional value within advisory
•
Outsourcing portfolio design and management can free up advisors' time to serve
clients and grow their practices
Advisors can also continue to design their own portfolios while outsourcing
investment management tasks to LPL
Centrally managed platforms have increased as a percentage of total advisory
assets
Centrally managed platform ROA is ~10 bps higher than advisory overall, so a 1%
increase is $6M in annual Gross Profit* benefit
2017
2018
2019
2020
2021
Q3'22
•
LTM Organic
22%
20%
17%
15%
30%
15%
Growth Rate:
LPL Financial Member FINRA/SIPC
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