Blockchain Strategy Offers an Innovative New Investment Option for LPL Financial Advisors

Last Edited by: LPL Financial

Last Updated: June 14, 2018

blockchain technology, LPL Financial, LPL advisors

The LPL Financial Research Blockchain Innovators Portfolio is designed to provide investors exposure to companies that are committing resources to developing and implementing blockchain technology. The LPL Research team believes that investors are looking for companies that can effectively implement blockchain into their business models for the opportunity to reduce costs, creating the potential to improve both earnings and stock performance.

“We believe this new strategy can further help our advisors differentiate their practices in the marketplace,” said Burt White, LPL managing director and Chief Investment Officer. “At this time, there are very limited investment solutions available for exposure to this opportunity. We are proud to be able to lead the industry by leveraging our scale and expertise to provide low-cost solutions that support our advisors’ ability to meet market demands.”

The investment strategy is designed to complement an already diversified portfolio and supports an advisor’s ability to deepen client relationships through an advisory business model. LPL does not currently plan to charge advisors a management fee for access. The new blockchain portfolio is the fourth LPL Research model portfolio within LPL’s Manager Select platform, which provides LPL advisors access to a wide variety of separately managed strategies.

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Blockchain is a novel technology for which its uses, opportunities, applications and abilities are unknown and unproven. There can be no assurances that companies investing in this technology will be able to benefit from it. The Amount and type of investment restrictions are subject to change and manager’s acceptance.

This is a new product/service offered by LPL Financial and thus has no performance track record. Its investment objective is long term capital appreciation and therefore may not be suitable in substantial amounts for investors with a shorter-term time horizon, preservation of principal related investment objectives or lower risk tolerances.

In choosing to participate in a Separately Managed Account (SMA), investors should carefully consider the amount they plan to invest; their investment objectives; and the SMA’s investment objectives, risks, charges and expenses before investing.

Investing in a SMA involves direct ownership of the assets purchased by the investment manager on the investor’s behalf. Therefore, all investors should understand and be able to bear all of the risks associated with the underlying assets.

Investing in stock includes numerous specific risks including: the fluctuation of dividend, loss of principal, and potential illiquidity of the investment in a falling market.