55 Institutional helps our clients design and implement tax-managed portfolios of passive building blocks using recent developments in science and technology. We help our partner firms navigate and adapt to the growing trends of quantitative investing and passive investing with a focus on minimizing frictions arising from fees and taxes.
55 Institutional partners with enterprises and investors that are looking for capabilities to design tax managed systematic portfolios of passive building blocks. We work with RIA platforms, asset management firms, wealth management firms and family offices among others.
55 Institutional provides solutions to our enterprise clients, not products. We help our clients enhance their products, or help design new products with our capabilities in investment science and tax technology.
Dr. Vinay Nair coined the phrase Investment Science to describe the application of the best and most contemporary abstract thinking to the concrete and pressing problems faced by advisors and their clients. Across decades in academe and practice, the 55 Institutional Team noted a significant gap between the state of thinking and the state of investment. The teams, ideas and processes of bringing the cutting-edge minds to focus and solve the pressing investor issues of the day is investment science. Our team and research partners believe Investment Science is the best guide to maximizing risk adjusted, after tax returns. Our solutions empower our partners to use this investment science in modular fashion to design systematic investment strategies.
As we surveyed the tax optimization offerings to advisors, we found a gap between available research tools and its application to prevalent tax loss harvesting methods. We built a machine learning algorithm and applied option theory to achieve a scalable and superior solution. We are confident that our tax optimization solution is differentiated and leads the market with a next generation approach. See our tax white paper for more information.
We developed our approach to risk by recognizing that benefits of diversification are dynamic. Even if implemented well, diversification provides limited downside protection in scenarios when correlations spike. We believe cash is valuable tool for dynamic risk management. Standard risk metrics tend to be limited to one or a few assets, a narrow time frame and geographic area limiting their use to guide this decision. To address this, we built a multi-asset and multi-geography risk indicator called MRI. MRI uses investment science to offer a risk metric that that our partner advisors can use to adjust the use of cash as a tool for downside protection. Click on our MRI information sheet to learn more.
55 Institutional is a technology enabled, outsourced investment advisor. While we use technology and software to enable better solutions, we are not a technology provider.
No, we do not sponsor our own ETFs. 55 Institutional uses investment science and tax technology to help our clients design and build portfolios of ETFs and other passive building blocks. The universe of building blocks used to design these portfolios can be custom specified by the client. Our baseline models use an open architecture approach and selects from all available ETFs.
55 Institutional was built to provide leading investment science and tax technology to investment management firms. Leading investment science has historically been offered only to a limited audience. 55 Institutional brings dynamic diversification, risk forecasting and leading minds to advisors and the important task of broad-based wealth management. Our academics, industry professionals and systematic tools democratize access. 55 Institutional solutions are customized and the business model is designed for impact through partnerships.
Your advisor may already work with 55 Institutional or may be in the process of onboarding our solutions. Please click here to let us know if you are interested in gaining access to 55 Institutional’ s solutions through your advisor. Please note that some of our partner enterprises offer our solutions under their own branded interfaces.
Trillions in assets have fled traditional active management for ETFs and passive building blocks that have unique frictions and require new approaches to portfolio construction, risk and tax.
55 Institutional combines leading investment science with proprietary tax optimization technology to empower our partner firms including advisors, wealth managers, asset managers, and asset owners to customize, tax optimize and implement enhanced portfolios of ETFs for their clients.