LPL Adds SMA Strategies to Model Wealth Portfolios Platform

CHARLOTTE, N.C. – March 31, 2022 – LPL Financial LLC today announced that advisors can now access separately managed account (SMA) strategies as an investment option within Model Wealth Portfolios (MWP). The addition to MWP, the firm’s largest centrally managed platform, with over $83B in assets under management**, creates a unified managed account (UMA) where advisors are able to pair SMA strategies with their own models or models from other third-party money managers, combining ETFs, mutual funds, and SMA strategies in one client account.

“With this latest enhancement to MWP, we continue to forge ahead in our journey to deliver the premier wealth management platform in the industry. Advisors gain access to SMA strategies with the efficiency of a UMA, offering greater choice and flexibility and the ability to design portfolios that are tailored to each individual client’s need,” said Rob Pettman, LPL executive vice president, Wealth Management Solutions. “At LPL, we will continue to invest, innovate, and look to advisors for input and feedback to be able to offer a differentiated set of wealth management solutions that help advisors serve the growing demand for personalized guidance through an advisor relationship.”

SMAs provide advisors the opportunity to offer clients institutional investor strategies with lower minimums. With access to SMA strategies within MWP, advisors have the opportunity to provide clients with tailored investment strategies, investment styles, and asset classes or sectors, which they can own as individual securities – rather than as a pooled fund. By owning the securities themselves, clients have more transparency into account movements and more opportunities for tax management.

About LPL Financial

LPL Financial (Nasdaq: LPLA) was founded on the principle that the firm should work for the advisor, and not the other way around. Today, LPL is a leader in the markets we serve,* supporting nearly 20,000 financial advisors, and approximately 800 institution-based investment programs and 500 independent RIA firms nationwide. We are steadfast in our commitment to the advisor-centered model and the belief that Americans deserve access to personalized guidance from a financial advisor. At LPL, independence means that advisors have the freedom they deserve to choose the business model, services, and technology resources that allow them to run their perfect practice. And they have the freedom to manage their client relationships, because they know their clients best. Simply put, we take care of our advisors, so they can take care of their clients.

*Top RIA custodian (Cerulli Associates, 2020 U.S. RIA Marketplace Report); No. 1 Independent Broker-Dealer in the U.S (Based on total revenues, Financial Planning magazine 1996-2021); No. 1 provider of third-party brokerage services to banks and credit unions (2020-2021 Kehrer Bielan Research & Consulting Annual TPM Report); Fortune 500 Company as of June 2021. LPL and its affiliated companies provide financial services only from the United States.

** Amount as of 12/31/2021

Securities and advisory services offered through LPL Financial LLC, an SEC-registered broker-dealer and investment advisor. Member FINRA/ SIPC.

Throughout this communication, the terms “financial advisors” and “advisors” are used to refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial LLC. We routinely disclose information that may be important to shareholders in the “Investor Relations” or “Press Releases” section of our website.

Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return of eliminate risk in all market environments. In choosing to participate in an 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. The amount and type of investment restrictions are subject to change and manager’s acceptance. The structure of SMAs exposes them to special risks including taxation risk, portfolio risk, and potentially high fees.