J.P. Morgan Asset Management has agreed to purchase fintech firm 55ip, which offers a tax-smart investment strategy engine to support financial advisers.
The transaction, whose financial terms were not shared, comes shortly after a partnership signed between the two parties to offer tax-efficient access to model portfolios.
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55ip CEO Paul Gamble said: “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.”
55ip will retain its existing brand and its operational independence by remaining a separate business.
Powering the 55ip is its ActiveTax Technology, which includes tax-smart transitions, management, and withdrawals.
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By GlobalDataThis October, New York-based ETF provider WisdomTree Investments tapped 55ip to offer tax-smart model portfolios.
The collaboration results in a joint solution, which is designed to help advisers transition clients easily into WisdomTree model portfolios with ongoing rebalancing and tax management.
J.P. Morgan Asset Management global head of asset management solutions Jed Laskowitz said: “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 customisation for tax and individual preferences is a differentiator and will be a key driver of success.”
J.P. Morgan Asset Management serves HNWIs, institutions, and retail investors. At the end of September 2020, the business managed $2.2trn in assets.
Earlier this year, the asset manager turned to funds network Calastone to automate settlement for its money market funds.
