LPL Financial (LPLA – (Free Report), a leading financial company, announced new additions to its Model Wealth Portfolio (MWP) integrated managed account program. The announcement was made at the company’s “Focus 2023” financial event in San Diego, California.
This innovation comes in the form of a direct index that is expected to revolutionize investment trading strategies by increasing tax efficiency and delivering tailored results for clients. This dual benefit holds great promise for both advisors and investors. This functionality can be accessed through a custom indexed separately managed account (SMA) solution within MWP.
These custom index SMAs are carefully crafted by LPL Research, leveraging MSCI Inc.’s industry-leading index expertise. Notably, the SMA requires a minimum investment of $100,000 and features a wide range of stock options from large-cap to small-cap stocks. – and mid-cap stocks, and international stocks. This diversity allows advisors to create a robust core portfolio that is meticulously tailored to each client’s unique requirements.
“Financial advisors are always striving to help their clients improve outcomes and provide personalized investment solutions,” said Rob Pettman, executive vice president of wealth management solutions at LPL Financial. said. He added that today’s investors are looking for strategies that allow for customization and help them achieve diverse goals, such as tax breaks and sector-specific incentives.
LPL Financial worked with MSCI to seamlessly integrate customized versions of the MSCI USA and EAFE ADR indices into its strategy.
Launching in August 2023, LPLA’s Direct Index Strategy provides unprecedented customization and control for advisors. This includes the option to implement automatically recurring tax recovery strategies tailored to each MWP client’s individual portfolio. The introduction of Direct Index represents a leap forward in personalized investment strategies and promises a win-win for advisors and investors.
LPL Financial has always strived to provide the best investment solutions. With the launch of a network of exchange-traded funds (ETFs) with no transaction fees, the value of the company’s advisory platform is likely to continue to increase. The company’s advisory revenue has been increasing in recent years. Advisory revenue recorded a CAGR of 22.4% over five years (2017-2022).
Additionally, LPLA has diversified its business through opportunistic acquisitions over the years. In February, it acquired FRGIS and Boenning & Scattergood’s Private Client Group business. In 2021, it took over Waddell & Reed’s wealth management business, and in 2020 it acquired EK Riley Investments LLC and the Blaze Portfolio, an asset of Lucia Securities.
LPL Financial stock has increased 6.9% since the beginning of the year, while the industry has declined 2.2%.
Image source: Zacks Investment Research
LPLA currently carries a Zacks Rank #3 (Hold).You can view See the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other financial companies are taking similar measures.
interactive broker (IBKR – Free Report last month announced a new platform, the Securities Lending Dashboard. It aims to provide customers with enhanced tools to evaluate short selling activity and make informed trading decisions.
This innovative platform provides sophisticated investors, including hedge funds, with access to extensive securities lending data, allowing them to more effectively evaluate investment opportunities. The Securities Lending Dashboard complements IBKR’s existing Securities Lending and Borrowing (SLB) system, a self-service utility for identifying stocks that can be sold short.
Also, citygroup (C – (Free Report) has launched CitiDirect Commercial Banking, a platform that provides a single point of entry digital platform to serve the needs of Citi Commercial Bank customers. This initiative is part of the bank’s significant strategic investment plan to meet the growing global needs of these customers.
Specifically, the CitiDirect Commercial Banking platform brings together the bank’s global products and services on a single digital platform. This gives customers a comprehensive view of their relationship with Citi Banking across cash, loans, trade, exchange, services and onboarding.
Disclaimer: This article was written with the support of Generative AI. However, the authors have reviewed, revised, supplemented, and rewritten portions of this content to ensure its originality and accuracy of the information incorporated.
