JPMorgan Chase has attracted more than $15bn in assets from wealthy clients to its nascent tax strategy business, according to people familiar with the matter, as the US bank seeks to win more share of the business from Goldman Sachs and Morgan Stanley.
In the past two years, JPMorgan has stepped up efforts to win more clients looking to lower tax bills by selling stocks at a loss as a write-off against other gains, a tactic common in separately managed accounts (SMAs) known as tax-loss harvesting. Besides lowering tax bills, investors use SMAs to own individual securities and express specific preferences, such as favouring environmental, social and governance factors.
“It might be the fastest growing piece of asset management over the last 18-plus months,” said one JPMorgan banker. JPMorgan declined to comment.