Raymond James to Use J.P. Morgan’s 55ip Tax-Sensible Portfolio Instrument

What You Have to Know

  • The broker-dealer is the primary to make use of 55ip’s know-how throughout its full suite of managed account companies.

Raymond James has picked J.P. Morgan Asset Administration’s 55ip know-how to reinforce its managed account platform with built-in tax administration capabilities. 

The association is “an industry-first partnership” that ought to assist Raymond James’ advisors make common adjustments — like rebalancing and tax-loss harvesting  to shoppers’ managed accounts, leaders of the 2 companies say. 

The 55ip software program, acquired in 2020 when J.P. Morgan purchased the know-how agency, is anticipated to be absolutely deployed by Raymond James throughout its full suite of managed account companies by mid-2024. 

General, the deal underscores two tendencies in wealth administration: first, the rising demand for tax administration capabilities and, second, the increasing want for {industry} gamers to work with third events somewhat than construct new instruments alone, put money into an entire overhaul or take different extremely disruptive and costly steps, in response to executives from the 2 companies.

“Our partnership with Raymond James is an instance of how main asset administration and wealth administration companies can companion past funding merchandise by offering value-added know-how,” George Gatch, CEO of J.P. Morgan Asset Administration, advised ThinkAdvisor in an interview.

Plus, embracing integration may help companies keep away from the so-called “rip and change” value that — prior to now — “was concerned with adopting an answer like this,” mentioned 55ip CEO Paul Gamble. “So, an enormous a part of our enterprise mannequin is to have the ability to combine our companies instantly into the place the enterprise and advisors are already doing enterprise immediately.”

To that finish, 55ip has constructed what Gamble calls a “very intuitive, advisor-led expertise” that features automated commerce technology and execution, as an example, so advisors can do real-time customization and tax administration “at scale however with out having to take up an increasing number of of their time.”

In response to Gatch and Gamble, there’s an rising consensus that constructing tech instruments from scratch  with a purpose to ship added worth to shoppers  leads to greater prices and decrease efficiency relative to what could be completed through partnerships and repair integrations.

Leave a Reply

Your email address will not be published. Required fields are marked *