LPL Adds Direct Indexing to Its Model Wealth Portfolios Platform

Last Edited by: LPL Financial

Last Updated: August 05, 2023

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CHARLOTTE, N.C. – August 5, 2023 – LPL Financial today announced the availability of direct indexing within the firm’s Model Wealth Portfolios unified managed account program (MWP). The new strategy was announced at LPL’s flagship event for financial professionals, Focus 2023, held from August 4 to August 7 in San Diego, CA.

Direct indexing can help make trading investment strategies more tax efficient, while also creating personalized outcomes for clients, which benefits advisors and investors alike. Accessible through new custom indexed separately managed account (SMA) solutions in MWP, the offering will provide a foundation for powerful tax and portfolio management capabilities. The custom index SMAs, which were designed by LPL Research utilizing industry-leading indexes from MSCI Inc., will have minimums of $100k and include large-cap, small- and mid-cap, and international equity options, allowing advisors to create solid core portfolios customized to the unique needs of the client.

"Financial advisors are always looking to help improve client outcomes and deliver personalized investment solutions,” said Rob Pettman, LPL Financial executive vice president, Wealth Management Solutions. “Investors want the ability to customize their investment strategy in order to achieve a range of goals, including reducing overall tax burden and/or avoiding a particular sector or security.”

"MSCI is delighted to collaborate with LPL Financial as they leverage customized versions of the MSCI USA and EAFE ADR indexes as the foundation to deliver investment solutions that meet the growing needs of financial advisors and their clients,” said Remy Briand, chief product officer and head of Index at MSCI.

LPL’s direct indexing strategy will be available beginning in August 2023, providing advisors with greater customization and control, including the option to tailor automatically-recurring tax harvesting strategies unique to each of their clients’ MWP portfolios, helping to improve their clients’ tax outcomes.

“The opportunity to deliver personalized portfolios can help advisors deliver more value to investors,” added Pettman. “Utilizing direct indexing capabilities can also help to attract and retain investors looking for sophisticated and personalized investment advice.”

About LPL Financial

LPL Financial Holdings Inc. (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, serving nearly 22,000 financial advisors, including advisors at approximately 1,100 enterprises and at approximately 550 registered investment advisor ("RIA") firms nationwide. We are steadfast in our commitment to the advisor-mediated 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.

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