The Tifin Group, a Boulder-headquartered VC firm that focuses on the Fintech sector, has reportedly bought off 55 Institutional Companions LLC, a monetary tech agency referred to as 55ip, to JPMorgan’s asset administration unit.
55ip has created tax automation software program options for funding advisors. The phrases of the deal haven’t been shared publicly.
Paul Gamble, CEO at 55ip, famous:
“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 enhance our ability to do just that, accelerating our innovation and broadening access to our tax-smart investment strategy engine. The Tifin team was instrumental in helping us on our path to achieve this mission and navigate the company’s hypergrowth. We couldn’t be more thankful for its support.”
55ip will proceed to supply companies as a separate entity, underneath its personal firm model, with “the full support of JPMorgan and remains committed to serving its existing clients and enterprise partners,” in accordance with a launch.
55ip focuses on automated tax know-how and has been providing a “tax-smart” funding technique engine for round 5 years. The platform’s intuitive person expertise and clever automation are supposed to “enhance portfolio design and delivery, saving advisors time and helping to drive better outcomes for investors,” the announcement famous.
As said within the launch:
“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.”
Jed Laskowitz, World Head of Asset Administration Options at JP Morgan Asset Administration, remarked:
“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.”
Dr. Vinay Nair, Founder and Government Chairman at 55ip, said:
“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.”
As reported by Monetary Planning in early October 2020, 55ip works with BlackRock and it additionally integrates with main custodians, similar to Charles Schwab, Constancy, LPL Monetary and Raymond James.
The product is initially being supplied to RIAs. Nonetheless, JPMorgan Asset Administration intends to additional broaden it to varied different channels subsequent 12 months.
Related options are supplied by corporations like LifeYield, a Fintech agency specializing in tax effectivity, which has built-in with Morgan Stanley, Merrill Lynch, Ameriprise, SEI and Allianz with the intention to present automated rebalancing throughout a number of completely different accounts.
Ted Dimig, Head of US Advisory and Core Beta Options at JP Morgan Asset Administration, had stated (in October 2020):
“There’s been a clear gap in terms of the types of tools that platforms can use to solve for this problem, which has led to a significant emergence of fintech players in this space trying to solve it in different ways.”