LPL Financial sponsors the Optimum Market Portfolios program, a professionally managed mutual fund asset allocation service available directly through registered professionals. LPL Financial designs model portfolios consisting of mutual funds from the Optimum Funds family, utilizing strategic or tactical approaches across various asset classes such as growth, value, and fixed income. LPL Financial acts as the portfolio manager, executing trades and rebalancing accounts on a quarterly, semi-annual, or annual basis depending on client preference. The service is available for individuals, retirement accounts, trusts, estates, and business entities. Clients pay an annualized account fee based on the total value of assets in the account, which covers asset management, administrative, and custodial services provided by LPL Financial. This fee is negotiable and can be up to 2.50%. In addition to the management fee, clients pay underlying mutual fund expenses and various administrative fees. LPL Financial also facilitates collateralized lending programs and cash sweep options, creating additional revenue streams and potential conflicts of interest.
Fee Structure
Portfolio-Based Fees (Flat)
| Portfolio Value | Annual Fee |
|---|---|
| Any | 2.50% |
The maximum account fee is 2.50% and is negotiable between the client and the advisor. Fees are based on total assets in the account and payable quarterly in advance.
