2023 Year in Review and a 2024 Preview

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The asset and wealth management industry continues to evolve at ever-increasing speeds. Driven by shifting demographics, increasing consolidation, and consumer demand for personalized solutions, technology continues to help advisors meet the needs of today’s markets. Since inception, 55ip has been at the forefront of these trends and the adoption of our ActiveTax TechnologySM that promotes both scalable growth and value for investors has been truly gratifying. We’re proud and humbled by our 2023 growth across channels and platforms and are excited about our partnership with you this year. 

55ip By the Numbers*:

*As of December 31, 2023

We are actively looking to serve advisors to deliver personalized tax-smart management at scale. At 55ip, we have strategic partnerships with leading asset and wealth managers that help us deliver customizable models, SMAs, and direct indexing solutions through an advisor-led experience.

Investment Solutions powered by 55ip by the Numbers*:

*Source: 55ip
All data shown represents growth within 2023 as of December 31, 2023.

We continue to expand our presence in the independent broker-dealer channel. In 2023, we announced an industry leading partnership with Raymond James, joining Janney Montgomery Scott and Baird as broker/dealer firms integrated with our ActiveTax Technology across their managed account platforms.

Powering Innovation: Enhancements to our ActiveTax Technology Platform coming in 2024

In 2023, 55ip was recognized with a MMI/Barron’s Industry award for Digital Innovation (As of October 13, 2023). While we are proud of this accomplishment, we are not resting on our laurels. Most recently, we applied our Next Generation Optimizer, proprietary technology designed to manage the complexities of managed accounts across asset classes, to over 50,000 accounts on our platform.   This was a crucial milestone for the company, supporting the development of existing and future products to deliver personalized investment solutions.   

Many of our product enhancements planned this year are aimed at improving the advisor experience and client outcomes, including: 

  • Advisor Dashboard – This enhancement will provide advisors a single view across all accounts on the platform with enhanced filtering capabilities for cash management, account status, detailed alerts, and access to recent reports.  
  • Enhanced Cash Management – Throughout the year, we will enhance the cash management function in the portal. First, advisors will be able to raise cash as part of the initial account transition process and second, advisors will be able to minimize tax impact and tracking error during cash withdrawals; providing a further control over the investment decisions that best meet their client’s unique needs.   
  • New Transition Progress Report – Help demonstrate your value by providing a quarterly view on the progress of accounts in transition.  

These planned enhancements were driven by advisor feedback that we received throughout the year and from our annual client survey. We are innovating with a purpose to support your business growth, furthering our efforts in breaking down barriers to financial progress.

Delivering Value: Tax Savings results with new resources to help advisors engage with clients 

In last year’s advisor client survey, Tax-Smart Transitions and Ongoing Tax-Loss Harvesting were the leading reasons advisors chose to partner with 55ip. For accounts fully transitioned to their targeted portfolios, we calculate multi-year tax savings that may help your clients compound their wealth.  

55ip Tax Savings by the Numbers:

*As of December 31, 2023
Time Period2023202220212020Annualized
Est. Tax Savings0.05%2.70%0.02%2.58%1.96%*

The long-term view shows the power and value of utilizing an automated and ongoing approach to tax-loss harvesting. To help you demonstrate that value, we introduced the Tax Harvest Indicator. This quarterly report provides insights into recent tax-savings opportunities and allows you to compare previous quarters and years. This resource has become widely adopted helping advisors create meaningful conversations with their clients.  

For an individual account view of estimated tax-savings results, we redesigned our Tax Savings Report. The enhanced report provides additional data in a user-friendly format to make it easier for advisors to share with their clients. As a reminder, this report is available for all accounts that have fully transitioned into their targeted portfolio.

Investing in people: Supporting growth, improving service, and driving future product innovation 

We continue to make strategic investments across the company, delivering a newly designed website that makes it easier for advisors to explore our insights and advisor resources, and growing our employee headcount by 47%, adding talented personnel to every aspect of the business. Most notably, we launched The 55ip Service Center led by Roy-Ben Joseph, this team has been established to better serve our clients leveraging easy-to-use tools that enable advisors to create support requests, monitor their status, and even self-resolve some repetitive issues. 

We take seriously the trust advisors and firms place in us to deliver more value to their clients, and we are committed to continually improve and enhance. It is this motivation that puts the advisors and their clients at the center of everything we do as we seek to become the industry standard. 

The impact of a tax-loss harvesting strategy depends upon a variety of conditions, including the actual gains and losses incurred on holdings and future tax rates. The results shown in these materials are for illustrative purposes only and do not represent actual investment decisions.
The tax-loss harvesting service is available for an additional advisory fee and the results shown represent the net effect of the advisory fees but may not consider the impact of fees charged by others, including transaction costs or other brokerage fees. The information contained herein is subject to change without notice, is not complete and does not contain certain material information about the investment strategy, including additional important disclosures and risk factors associated with such investment and information about fees, trading costs and taxes.

**0.05% reflects the estimated average tax savings for all accounts which received a Tax Savings Report for period from Q1 2023 through Q4 2023 using 55ip’s tax-smart technology. 2.70% reflects the estimated average tax savings for all accounts which received a Tax Savings Report for period from Q1 2022 through Q4 2022 using 55ip’s tax-smart technology. 0.02% reflects the estimated average tax savings for all accounts which received a Tax Savings Report for period from Q1 2021 through Q4 2021 using 55ip’s tax-smart technology. 2.58% reflects the estimated average tax savings for all accounts which received a Tax Savings Report for period from Q1 2020 through Q4 2020 using 55ip’s tax-smart technology. The estimated average tax savings is based on the aggregate of all account’s value saved in comparison to the aggregate of average account values through the above referenced period.

1.96% reflects the estimated annualized average tax savings for accounts which received a Tax Savings Report for period from Q12020 through Q4 2023 using 55ip’s tax-smart technology. The estimated annualized average tax savings is based on an arithmetic average of each quarterly tax savings. The quarterly tax savings of all accounts in a respective quarter are summed and divided by the number of years represented. The aggregated percent tax savings for each quarter is taken as an average and annualized to determine the estimated annualized average tax savings referenced above.

Calculation methodology: Average tax savings are calculated by comparing the client’s actual account activity with a shadow account created by 55ip. The shadow account has the same inception date and is invested in the same model as the client’s actual account, but does not incorporate 55ip’s tax- smart technology for rebalancing. Gains and losses are accrued for both the client’s actual account and shadow account to produce the estimated tax bill. The tax rate applied to the client’s actual account and the shadow account are provided by the client’s advisor. If no tax rate is provided, then the highest applicable federal tax rate (20% for long-term gains/losses and 37% for short-term gains/losses) is assumed and an additional 3.8% net investment income tax rate is applied to both accounts. The estimated tax bill of the client’s actual account is then compared to the estimated tax bill of the shadow account, and the shortage of the former amount is the client’s estimated tax savings. There is no guarantee that the estimated tax and subsequent projected tax savings will equal the actual tax liability/tax savings achieved by the client. J.P. Morgan and its affiliates and employees do not provide tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any financial transactions.

The MMI/Barron’s Industry Awards winners (announced 13 October 2023) are selected by a specially-appointed MMI Industry Awards Steering Council and MMI Membership Experience Committee who evaluated the nominations based on their innovation and advancement in the investment advisory solutions industry. Judging was conducted between June 2023-July 2023. Companies do not pay a fee to be considered for the awards or for promotional materials. Nomination submissions are for products, programs and initiatives initiated or enhanced between October 2022-June 2023.


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