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J.P. Morgan Asset Management to acquire 55ip - tax-smart investment strategies thru model portfolios

55ip's tax-smart investment strategy engine provides financial advisors with scalable solutions for tax transition and management.

Acquisition signifies accelerating investment in and development of advanced technology for financial advisors.

J.P. Morgan Asset Management today announced that it has entered into a definitive agreement to acquire 55ip, a financial technology company with proprietary capabilities empowering financial advisors to deliver tax-smart investment strategies at scale. The company will 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 not disclosed.

55ip is a pioneer in automated tax technology and has provided financial advisors with a tax-smart investment strategy engine for nearly five years. 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. 55ip also helps advisors deliver ongoing tax-smart trading and tax benefit reporting to clients.

"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," said George Gatch, CEO of J.P. Morgan Asset Management. "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."

"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," said Jed Laskowitz, Global Head of Asset Management Solutions at J.P. Morgan Asset Management. "We are excited to work together to build a leading platform for asset managers to deliver model portfolio capabilities to financial advisors."

"55ip combines investment intelligence and modern technology to provide personalized and automated investment solutions with a focus on reducing barriers investors face," said Dr. Vinay Nair, Founder and Executive Chairman of 55ip. "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. Nair 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," added Paul Gamble, CEO of 55ip. "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."

55ip remains 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. The potential addressable market for asset manager and third-party strategist models is as much as $3.6T*, demonstrating the desire for financial advisors to bring simplicity and scale to their practices, while delivering tax-smart management and investment results.

*according to Cerulli Associates


About 55ip

55ip is a financial technology company whose purpose is to break down barriers to financial progress. Financial advisors use 55ip's tax-smart investment strategy engine to improve their efficiency and effectiveness. 55ip's intuitive experience and intelligent automation elevate portfolio design and delivery, helping advisors save time and drive better outcomes for their clients. At the heart of the experience is 55ip's ActiveTax Technology®, which includes tax-smart transitions, management, and withdrawals.

About J.P. Morgan Asset Management

J.P. Morgan Asset Management, with assets under management of USD 2.2 trillion (as of 30 September 2020), is a global leader in investment management. J.P. Morgan Asset Management's clients include institutions, retail investors and high net worth individuals in every major market throughout the world. J.P. Morgan Asset Management offers global investment management in equities, fixed income, real estate, hedge funds, private equity and liquidity


SOURCE: J.P. Morgan Asset Management

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