Raymond James Teams With JPMorgan Chase for Tax-Management Technology

Raymond James Financial ( $Raymond James Financial (RJF.US)$ ) shares advanced more than 2% on Monday as the financial firm struck a deal with JPMorgan Chase ( $JPMorgan (JPM.US)$ ) to use JPMorgan’s tax-management technology across its managed accounts platform. JPMorgan Chase shares were down 0.1%.
JPMorgan’s asset management unit and its 55ip technology company explained that the agreement will allow Raymond James to “make tax-smart transition, rebalancing and ongoing tax-loss harvesting” available to its users. J.P. Morgan Asset Management bought 55ip in 2020.
Erik Fruland, president of Raymond James Asset Management, said the move was a significant step in the company’s effort to enhance its managed account platform, with an emphasis on providing customized solutions to meet client needs. He called that “one of our most important strategic growth initiatives.”
J.P. Morgan Asset Management CEO George Gatch added that incorporating technology to customize investment portfolios is key to improving financial outcomes, and that “demand for tax management capabilities will only continue to rise.”
Raymond James indicated that the enhancements would take effect mid-2024.
Despite Monday’s gains, shares of Raymond James Financial remained lower for 2023.