Total Assets Increased: Reached $1.4 trillion, indicating solid organic growth complemented by higher equity markets.
Organic Net New Assets: First quarter organic net new assets were reported at $17 billion, representing a 5% annualized growth, with organic net new assets over the past 12 months marking a 96% increase, approximately an 8% growth.
Recruited Assets: A quarterly record of $20 billion was achieved, indicating significant growth and the appeal of the model.
Asset Retention Rates: First quarter asset retention was approximately 97%, with a 98% retention rate over the last 12 months.
Adjusted EPS: Reported at $4.21 for the first quarter.
Future Guidance
Capital Expenditures: Anticipated to include investments for platform enhancements and strategic acquisitions, such as the planned acquisition of Atria Wealth Solutions.
Expenses: Core G&A expected to be in the range of $1.455 billion to $1.491 billion for the full year, excluding Prudential and Atria expenses. Promotional expense anticipated to rise approximately $10 million sequentially in Q2 due to increased transition assistance.
ICA Yield: Expected to decline by a few basis points in Q2 based on current client cash balances and interest rates.
Share Repurchases: Post-Atria acquisition close, evaluation for restarting share repurchases will be aligned with existing capital framework.
Trends, Market Conditions, Sentiment
Adviser Demand for Flexibility and Tailored Plans: Enhancements like personalized digital platforms for clients and increased investment product offerings respond directly to this.
Competition in Adviser Recruitment: Despite competitive pressures, LPL Financial has maintained and even improved its win rates, implying a strong value proposition.
Market Leadership Ambition: The focus on expanding affiliation models and enhancing adviser capabilities is geared towards establishing industry leadership.
Succession Planning and Adviser Support: Initiatives like outsourced Chief Investment Officer services indicate a commitment to adviser business optimization.
Enhancements in Wealth Management Platforms: Investments in technology and services, such as tax planning and high net worth services, aim to keep advisers ahead in the market.
Notable Quotes
“We continue to make solid progress and help advisers […] solve challenges and capitalize on opportunities better than anyone else.” - Dan Arnold, CEO
”Our strategy to invest back into the platform provides unprecedented flexibility in how advisers can affiliate with us.” - Dan Arnold, CEO
”We remain focused on serving our advisers, growing our business and delivering shareholder value.” - Matthew Audette, CFO
”Based on the initial feedback, this is unlocking additional growth and efficiency in our adviser practices.” - on the new outsourced Chief Investment Officer service
