- J.P. Morgan Asset Management recently announced it entered into a definitive agreement to buy 55ip. These are the details.
J.P. Morgan Asset Management recently announced it entered into a definitive agreement to buy 55ip, which is a financial technology company with proprietary capabilities empowering financial advisors to deliver tax-smart investment strategies at scale. The company is going to continue to operate as a separate entity under its own brand with the full support of J.P. Morgan and remains committed to serving its existing clients and enterprise partners. The terms of the deal were undisclosed.
55ip is known as a pioneer in automated tax technology and has provided financial advisors with a tax-smart investment strategy engine for nearly 5 years. And its intuitive experience and intelligent automation enhance portfolio design and delivery, saving advisors time and helping to drive better outcomes for investors.
At the heart of the experience is 55ip’s ActiveTax Technology — which includes tax-smart transitions, management (including systematic tax-loss harvesting), and withdrawals. Plus 55ip also helps advisors deliver ongoing tax-smart trading and tax benefit reporting to clients.
55ip will remain committed to its partnerships with third-party asset managers, strategists and wealth management platforms to drive model portfolio usage as an important part of its overall strategy.
KEY QUOTES:
“Advisors are increasingly seeking intelligent, automated tools to provide simplicity, scale and efficiency, and by acquiring 55ip we are accelerating our significant investments in advanced advisor technology. This is an exciting development that signifies broad collaboration between fintech and asset managers, aimed toward improving capabilities and outcomes for advisors and their clients.”
— George Gatch, CEO of J.P. Morgan Asset Management
“55ip’s unique application of automated tax management to the model portfolio universe has tremendous potential in today’s market environment. Automating sophisticated strategies while also allowing for customization for tax and individual preferences is a differentiator and will be a key driver of success. We are excited to work together to build a leading platform for asset managers to deliver model portfolio capabilities to financial advisors.”
— Jed Laskowitz, Global Head of Asset Management Solutions at J.P. Morgan Asset Management
“55ip combines investment intelligence and modern technology to provide personalized and automated investment solutions with a focus on reducing barriers investors face. Tax-related savings are first order, especially in a world with lower rates, lower returns and higher taxes. We are delighted that J.P. Morgan shares our vision to democratize sophisticated tax management.”
— Dr. Vinay Nair, Founder and Executive Chairman of 55ip — who will stay on as a consultant and special advisor to J.P. Morgan Asset Management
“Joining forces with J.P. Morgan will provide greater resources for our current clients and enterprise partners, accelerate our innovation, and broaden access to our solutions. 55ip’s purpose is to break down barriers to financial progress, by finding better ways to help more people through intelligent automation. Being part of J.P. Morgan will accelerate our ability to do just that, as the industry standard tax-smart investment strategy engine.”
— Paul Gamble, CEO of 55ip
