BlackRock is set to offer FAs model portfolios with automated tax management.
Through a new partnership with fintech firm 55ip, BlackRock is aiming to make it easier for advisors to move client portfolios into BlackRock models via a “tax-aware” transition, and then continue offering ongoing, automated tax management, according to a press release from 55ip.
"We’ve found that model adoption today has been heavily tilted towards qualified accounts. Advisors are looking to scale their investments and add value for clients by providing a range of holistic wealth management services, including tax planning,” Martin Small, head of BlackRock's U.S. wealth advisory unit, says in the press release. "Our partnership with 55ip adds a crucial lever that lets advisors transition clients into model portfolios with tax-smart implementation and management."
BlackRock has been expanding its model portfolio adoption in recent months.
In October, Merrill Lynch added model portfolios from several providers, including 10 multi-asset portfolios from BlackRock, to its investment program available across various risk profiles and tax strategies.
In September, TD Ameritrade Institutional also added several new investment model providers to its advisor platform, including BlackRock.