LPL Financial Lowers Advisory Account Minimums
This change makes it possible for advisors to offer advisory services to a larger range of clients, giving those with lower investable assets access to professionally managed asset allocation models.
CHARLOTTE, N.C. – Aug. 2, 2021 – LPL Financial LLC today announced that the firm has lowered the investment minimum in its Optimum Market Portfolios (OMP) platform, reducing the amount from $10,000 down to $1,000. This change makes it possible for advisors to offer advisory services to a larger range of clients, giving those with lower investable assets access to professionally managed asset allocation models.
“As the industry continues to shift from brokerage to advisory, it is important to have advisory opportunities for all types of investors,” said Rob Pettman, LPL executive vice president, Wealth Management Solutions. “Based on advisor feedback, this enhancement in OMP provides an advisory option for those with smaller amounts to invest, with the added benefit of professionally managed portfolios and access to institutional money managers. We look forward to continuing to find ways to help our advisors differentiate themselves through wealth management solutions that can be tailored to all clients.”
OMP provides investment strategies that are designed to help investors pursue their goals by managing risk, offering services by professional money managers and providing objective investment research. The LPL advisory platform is made up of a suite of six multi-manager funds, featuring more than 10 leading subadvisors and institutional money managers. OMP makes it easy for investors to understand and track their portfolio, while also providing depth through the requirement of at least two subadvisors for added diversification. The combination makes OMP an option for all types of investors, from affluent to those who are just starting out.
As a centrally managed platform, OMP saves advisors time by allowing them to scale the investment management side of their practices through the choice of professionally managed, pre-set portfolios designed by experienced money managers. Launched in 2003, today OMP has $9.2 billion in assets under management, as of June 30, 2021.
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 more than 19,000 financial advisors, 800 institution-based investment programs and 450 independent RIA firms nationwide. We are steadfast in our commitment to the advisor-centered model and the belief that Americans deserve access to objective 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, 2019 U.S. RIA Marketplace Report); No. 1 Independent Broker-Dealer in the U.S (Based on total revenues, Financial Planning magazine June 1996-2020); No. 1 provider of third-party brokerage services to banks and credit unions (2020-2021 Kehrer Bielan Research & Consulting Annual TPM Report); Fortune 500 as of June 2021
Advisory accounts may not be appropriate for every investor. A brokerage account may be more appropriate if you prefer a buy-and-hold strategy for a long period of time, AND/OR prefer to make the investment decisions yourself, seeking a financial advisor only to provide occasional recommendations and execute orders.
The Optimum Market Portfolios are comprised of the Optimum Funds, which are managed by Macquarie Investment Management and distributed by Delaware Distributors, L.P. Delaware Distributors, L.P., is an affiliate of Macquarie Investment Management Business Trust and Macquarie Group Limited. Macquarie Investment Management (MIM), a member of Macquarie Group, refers to the companies comprising the asset management division of Macquarie Group Limited and its subsidiaries and affiliates worldwide. LPL Financial receives a consulting fee and subservice agent fee based on invested assets. Investments in the Optimum Market Funds are not and will not be deposits with or liabilities of Macquarie Bank Limited ABN 46 008 583 542 and its holding companies, including subsidiaries or related companies (the “Macquarie Group”), and are subject to investment risk, including possible delays in repayment and loss of income and capital invested. No Macquarie Group company guarantees or will guarantee the performance of the funds, the repayment of capital from the funds, or any particular rate of return.
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.