![]() ![]() Those details carry big implications for LPL and all giant wealth managers, whether in terms of potential compliance cases or their business. Those amounts can add up across millions of clients, though: overflow balances in LPL's primary sweep program, the Insured Cash Account, were $1 billion at the end of the first quarter, the last time the firm disclosed the figure. LPL's cash sweeps amount to about $5,000 to $8,000 per client account on average, according to the firm, which noted in the "key metrics" of its second-quarter earnings that the money is usually used for rebalancing, fees and withdrawals. Wealth managers collect tens or even hundreds of millions of dollars in revenue each quarter through such sweep accounts at banks that pay better interest rates to the companies than their clients.Ĭlients or even some financial advisors may not notice those low yields as much as they would if they were seeking to tap into the current rising interest rates through a money market fund. 15 - will reduce the yields that clients get on the so-called overflow cash that's above banks' insurance limits by moving customers' dollars out of a Goldman Sachs money market fund and into LPL's primary sweep program. As interest rates boost the company's profit, LPL is slashing the amount clients can earn on certain cash holdings. As with other money market mutual funds, the Fund’s yield will fluctuate, the Fund is not FDIC insured, and may lose value.LPL Financial is tweaking its largest client cash sweep program to generate an even higher yield for the company and a much lower one for its customers. **Investors should carefully consider the investment objectives, risks, charges and expenses of mutual funds before investing. Current information is available on the Fund’s Fact Sheet. Please review the Fund’s prospectus which provides details of this and other important information and which is available from Millennium Trust. ![]() Government Select PortfolioĪll idle cash will be held in the Northern Institutional U.S. *Some limits may apply for clients with multiple IRAs/Qualified Retirement accounts and if combined idle cash is over $5 million.Īll idle cash will be held in the Federated Government Obligations Fund – Trust Shares** (GORXX). Investors may also obtain current information by viewing the Fund’s Fact Sheet. Idle cash balances in retirement accounts are automatically swept into the participating banks in the program, with the maximum amount of idle cash held at any individual bank being $250,000 (the current limit available for FDIC insurance per depositor).īalances over $5 million will be held in the Federated Government Obligations Fund – Trust Shares** (GORXX). The program uses interest-bearing, bank demand accounts at various unaffiliated banks to provide the benefit of FDIC insurance. Our FDIC insured Cash Sweep Program utilizes multiple unaffiliated banks to provide up to $5 million in FDIC insurance per account for the investment of idle cash.* Your account type determines which cash sweep vehicle is used. In a cash sweep program, uninvested cash is automatically transferred into an interest-bearing account. Millennium Trust's Cash Sweep Program offers daily liquidity and competitive interest rates. Retirement Services Portal (for Business Professionals).MAP-Custody Services Portal (for Financial Professionals). ![]()
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