Record Tax Savings in Model Portfolios Highlight Continued Opportunity for Investors in Volatile Market Environments

Record Tax Savings in Model Portfolios Highlight Continued Opportunity for Investors in Volatile Market Environments

BOSTON–(BUSINESS WIRE)–55ip, the fintech platform designed to deliver personalized and tax-smart investment management at scale, today announced that data from its platform this year reveals a record number of advisers taking advantage of harvesting opportunities. tax losses for their clients. Across client portfolios through Q3, the 2022 year-to-date tax savings benefit for ETF and mutual fund model portfolios was 2.99 percent. Since 2020, the annualized tax savings to model portfolio clients on the platform were 2.82 percent. The savings demonstrate the value of continued harvesting in client wallets throughout the year versus those that are not harvested for tax losses.

“The growth of model portfolios is one of the fastest growing trends in asset and wealth management, but concerns about the tax implications of transitioning and managing client accounts have been a major impediment to a wide use by advisors,” says Paul Gamble, CEO of 55ip. “Volatile markets can be emotionally and financially challenging for investors, but our data indicates they can also present potential opportunities for significant tax advantages. take the opportunity to help their clients understand the importance and benefits of strategic tax loss collection throughout the year.”

As investors looked to their advisors for answers, advisors turned to 55ip for its automated tax management capabilities. Underscoring a growing industry-wide need, growth on the 55ip platform, since January 2021, has reached record highs with a 125 percent increase in consulting firms using the platform, a 357 percent increase in the amount of accounts receivable, and a 343 percent increase in total motorized assets. Additionally, the number of tax-smart transitions, using tax loss harvesting to automatically move client accounts into model portfolios, has reached record levels, given market dynamics.

“Our growth reflects the growing demand from advisors looking for tax-smart strategies in portfolios,” says Gamble. “The market volatility this year has clearly demonstrated the value of solutions designed to help mitigate tax impacts. Investors should work with their financial advisor to determine which strategy best suits their long-term goals and how tax loss harvesting fits into that strategy. We are well positioned to support advisors and their clients with opportunities throughout the year, now and in the future, depending on whatever the market environment may bring.

About 55ip

55ip is a fintech company purpose-built to break down barriers to financial progress. Setting the industry standard for automated, personalized and optimized tax results, the 55ip platform delivers efficient implementation of the investment process to the financial services industry. Combined with industry-leading trading and rebalancing capabilities, we offer a full-service solution that meets the unique needs of advisors. At the heart of 55ip’s seamless and intuitive user experience is 55ip’s ActiveTaxSM Technology, including improved portfolio design and delivery, tax-smart transitions, management and withdrawals, all help advisors save time and deliver better results for their clients. 55ip is a wholly owned subsidiary of JP Morgan Asset Management, the asset management business of JPMorgan Chase & Co. Visit for more information.


55ip is the trade name used by 55 Institutional Partners, LLC, a developer of investment technology, and for the investment advisory services provided by 55I, LLC, an SEC-registered investment adviser. 55ip is part of JP Morgan Asset Management.

The results presented here are not related to investment performance. The impact of a tax loss collection strategy depends on various conditions, including actual gains and losses incurred on assets and future tax rates.

The tax loss collection service is available for an additional advisory fee and the results shown represent the net effect of the advisory fee, but may not reflect 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 important investment strategy information, including important additional information and risk factors associated with such investment and information on fees, trading fees and taxes. Neither the United States Securities and Exchange Commission nor any state securities administrator has approved or disapproved, transmitted or endorsed the merits of this document. More information on

2.99% reflects the estimated average tax savings for accounts that received a tax savings report between Q12022 and Q32022 using 55ip’s tax-smart technology. 2.82% reflects the estimated annualized average tax savings for accounts that received a tax savings report for the period from Q12020 to the current quarter using 55ip’s tax-smart technology. The estimated annualized average tax savings is based on an arithmetic mean of each quarterly tax savings. The quarterly tax savings of all accounts in a respective quarter are added together and divided by the number of years represented. The aggregate tax savings percentage for each quarter is taken as an average and annualized to determine the estimated annualized average tax savings referred to above.

Calculation Methodology: Average tax savings are calculated by comparing the actual activity of the client’s account with a fictitious account created by 55ip. The practice account has the same creation date and is invested in the same model as the client’s real account, but does not incorporate 55ip’s tax-smart technology for rebalancing. Gains and losses are accounted for both the real account and the client’s fictitious account to produce the estimated tax bill. The tax rate applied to the client’s real account and to the fictitious account is provided by the client’s adviser. If no tax rate is provided, the highest applicable federal tax rate (20% for long-term gains/losses and 37% for short-term gains/losses) is assumed and a rate of The additional 3.8% net tax on investment income is applied to both accounts. The estimated tax bill of the customer’s real account is then compared to the estimated tax bill of the dummy account, and the deficiency of the old amount corresponds to the customer’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 realized by the customer. JP Morgan and its subsidiaries and employees do not provide tax, legal or accounting advice. You should consult your own tax, legal and accounting advisers before engaging in financial transactions.

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