J.P. Morgan Asset Management announced plans this week to acquire 55ip, a fintech startup that provides automated tax technology and a tax-smart investment strategy engine to financial advisors, from The TIFIN Group, an early-stage startup incubator. The terms of the deal were not disclosed.
J.P. Morgan formed a partnership with 55ip in October to combine the tech firm’s engine with its model portfolios, composed of ETFs and mutual funds.
Under the terms of the deal, 55ip will remain a separate entity.
"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," said Jed Laskowitz, global head of asset management solutions at J.P. Morgan Asset Management, in a statement. "We are excited to work together to build a leading platform for asset managers to deliver model portfolio capabilities to financial advisors."
TIFIN is an early-stage startup incubator and “studio” that includes Magnifi, MIO, Arbor, Positivly and Farther in its portfolio of companies. It focuses on startups in the investment management, investment advisory and personal finance areas.
