Raymond James partners with 55ip on tax management enhancements

Services such as rebalancing and tax-loss harvesting will be available on Raymond James' managed accounts platform.

Raymond James will soon be integrating fintech 55ip’s cutting-edge tax management technology across its managed accounts platform, the firms announced Tuesday.

The partnership marks an industry first, the announcement said, as it will provide custom, tax-smart management at scale for Raymond James advisors and their clients.

“The enhancements will make tax-smart transition, rebalancing and ongoing tax-loss harvesting available to Raymond James managed accounts users,” the firms said in a statement.

Raymond James’ managed account programs provide clients more than 350 investment strategies with over $144 billion in assets, including $71 billion in taxable assets. The offerings include unified managed accounts, separately managed accounts, mutual funds and ETF model portfolios.

J.P. Morgan bought 55ip in 2020. In the three years since the acquisition, 55ip assets have increased from less than $2 billion to more than $20 billion, reflecting the demand for tax management and customization.

“We’re proud to help Raymond James enhance and expand its approach to tax-smart investment delivery and drive better potential outcomes for their clients,” Paul Gamble, CEO of 55ip, said in the release. “Integrating across Raymond James’ managed account platform will deliver unprecedented reach and scale to help more people.”

55ip’s tax technology will be delivered via Raymond James’ managed account technology provider, InvestCloud.

George Gatch, CEO of J.P. Morgan Asset Management, said incorporating the technology is important to improving financial outcomes.

“The demand for tax management capabilities will only continue to rise,” Gatch said in the statement. “Our partnership with Raymond James is an example of how leading asset management and wealth management firms can partner beyond investment products by providing value-added technology.”

Raymond James expects the enhancements to be released in mid-2024.