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Raymond James is integrating J.P. Morgan’s 55ip technology to create an integrated tax management system. The move reflects two key trends in the wealth management industry: a surging demand for tax management capabilities and a shift towards partnerships over costly in-house development.
Dubbed as an “industry-first partnership,” it will empower Raymond James advisors to make adjustments like rebalancing and tax-loss harvesting for their clients’ managed accounts.
A tax-smart collaboration
Raymond James, which holds a managed account program with around $144 billion in assets (including $71 billion in taxable assets) and over 350 investment strategies, was on the hunt for a solution to meet the escalating demand for tax management services.
Their search led to 55ip’s technology, which is slated to be fully integrated into Raymond James’ suite of managed account services by mid-2024.
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Erik Fruland, President of Raymond James Asset Management Services, highlighted that the partnership aims to enhance the managed account platform while tailoring solutions to clients’ needs.
Tax management and personalised solutions
Since its acquisition by J.P. Morgan Asset Management in 2020, 55ip’s assets have grown from under $2 billion to an impressive $20 billion as of September 2023. This exponential growth underscores the financial industry’s increasing appetite for tax management and personalised solutions.
George Gatch, CEO of J.P. Morgan Asset Management, stressed the game-changing role of technology in customizing investment portfolios and predicted a surge in the demand for tax management capabilities.
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Gatch reassured that 55ip’s tax technology would seamlessly integrate with Raymond James through their managed account technology provider, InvestCloud.
Raymond James offers a range of services, including Unified Managed Accounts (UMA), which makes up a significant part of their portfolio. The integration with 55ip’s technology is designed to introduce advanced tax management capabilities.
