Custom Invest – U.S. Large Cap Equity is the first strategy on platform, benchmarked to S&P 500
NEW YORK, May 3, 2022 /PRNewswire/ — J.P. Morgan Asset Management today announced the launch of a new Tax-Smart Separately Managed Account (SMA) Platform allowing advisors to build customized portfolios and seek better after tax returns for their clients. The platform combines J.P. Morgan’s investment expertise with 55ip’s tax-smart technology and will be one of the first of its kind to offer custom index SMAs, and model portfolios of mutual funds and ETFs, in one digital portal, delivering seamless portfolio customization, tax management and reporting functionality.
The new platform transforms what is often a complex, paper-based task into a digital, on-demand experience allowing advisors to create custom SMAs in a few simple steps:
- Customize investments – Using the J.P. Morgan Custom Invest SMA, create flexible, customized portfolios, incorporating clients’ investment views, preferences and tax considerations.
- Create custom, tax-smart transitions – Deliver tax transition proposals to ease the tax burden over time or limited to a specific tax budget.
- Automate systematic tax management – Generate potential tax alpha through ongoing, systematic tax-loss harvesting with constant portfolio manager oversight.
Customized Investment Solutions
“Investors and their advisors are increasingly seeking customized investment solutions and higher after-tax returns in anticipation of lower equity returns and higher taxes in the future,” said Jed Laskowitz, Global Head of Asset Management Solutions at J.P. Morgan Asset Management. “We’ve dedicated a significant amount of time to building a cutting-edge, digital, on-demand platform that combines J.P. Morgan’s thirty plus years’ experience managing index strategies and 55ip’s leading tax-smart technology.”
The J.P. Morgan Custom Invest – U.S. Large Cap Equity Strategy will be the first SMA on the platform, enabling clients to create a custom portfolio of 275-350 stocks benchmarked to the S&P 500, delivering investor-directed customization and enhanced tax management capabilities. The strategy will leverage insights from J.P. Morgan’s index team, which manages over $70 billion in indexed assets, and harnesses J.P. Morgan’s 30-years of experience managing passive index strategies.
“Taxes can be a major barrier for advisors looking to transition clients to a more customized portfolio. The integration of 55ips’s ActiveTax technology helps overcome this by allowing advisors to deliver tax-smart transitions and ongoing tax-loss harvesting while providing customization at scale” said Paul Gamble, CEO of 55ip. “The new platform is an example of combining best-in-class investment capabilities with intelligent automation to give advisors the power to deliver value to their clients.”
“The new Tax-Smart SMA Platform is one of the first in the market to offer custom indices and model portfolios of mutual funds and ETFs in one digital portal,” said Stephen Kaplan, Head of Customized Managed Account Solutions at J.P. Morgan Asset Management. “The new platform will allow advisors to customize portfolios live with a client – a process that typically takes days –to easily deliver customization and tax alpha.”