Fintech company 55ip, a specialist in helping financial advisers to deliver tax-smart investment strategies at scale, is joining J.P. Morgan Asset Management.
J.P. Morgan Asset Management agreed to acquire India-based 55ip for an undisclosed sum. The fintech company, headquartered in Mumbai, will continue to operate as a separate entity under its own brand.
55ip develops automated tax technology and has provided financial advisers with a tax-smart investment strategy engine for nearly five years. It partners with third-party asset managers, strategists and wealth management platforms to drive model portfolio usage.
Its ActiveTax Technology, designed to enhance asset portfolio design and delivery, covers tax-smart transitions, management (including systematic tax-loss harvesting), and withdrawals. 55ip also helps advisers to deliver ongoing tax-smart trading and tax benefit reporting to clients.
The acquisition of 55ip accelerates J.P. Morgan Asset Management‘s significant investments in advanced adviser technology, according to chief executive officer George Gatch.
Gatch continues: “This is an exciting development that signifies broad collaboration between fintech and asset managers, aimed toward improving capabilities and outcomes for advisers and their clients.”
Jed Laskowitz, global head of asset management solutions, adds: “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.”
Dr Vinay Nair, founder and executive chairman of 55ip, will stay on as a consultant and special adviser to J.P. Morgan Asset Management following the acquisition.
Nair said: “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 democratise sophisticated tax management.”