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LPL Drops Account Minimums on Some Portfolios

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What You Need to Know

  • LPL has lowered the investment minimum in its Optimum Market Portfolios platform to $1,000 from $10,000.
  • The platform includes six multi-manager funds from more than 10 subadvisors and institutional money managers.

LPL Financial says it has lowered the investment minimum in its Optimum Market Portfolios platform to $1,000 from $10,000.  

The LPL advisory platform currently includes six multi-manager funds from more than 10 subadvisors and institutional money managers. Launched in 2003, OMP had $9.2 billion in assets under management as of June 30. 

“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’s head of Wealth Management Solutions, in a statement. 

“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,” Pettman added.

According to LPL, OMP “makes it easy” for both beginning and affluent investors to “understand and track their portfolio, while also providing depth through the requirement of at least two subadvisors for added diversification.  

At the same time, the platform saves financial 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.”  

LPL made the announcement two days before it kicks off its yearly Focus conference, which is being held online from Wednesday to Friday.

In the second quarter, LPL Financial’s total assets topped $1 trillion for the first time, rising 46% from $762 billion a year ago to hit $1.11 trillion. The firm also reported that its advisor headcount surpassed 19,000 advisors to end the period at 19,144, up 13% from just under 17,000 a year ago and up 8% from roughly 17,700 in the prior quarter. 

(Pictured: Sign at LPL headquarters in San Diego.)