T. Rowe nabs coveted JP Morgan partnership, not long after signing one with Goldman Sachs -- both trace to its 2024 hire of model portfolios executive Josh Horesh from BlackRock

Better late than never. T. Rowe Price repurposed its acumen managing fund portfolios to manage wealth portfolios – and now a $130-billion JP Morgan fintech company 55ip, is on board.

The move comes not long after Goldman Sachs Asset Management also signed on for T. Rowe's model portfolios. See: T. Rowe Price follows sale of $1 billion stake to Goldman Sachs, with key hire, to help 'co-create' and sell co-managed portfolios

The new collaboration marries T. Rowe Price's portfolio strategies and 55ip’s ActiveTax Technology to provide “tax-smart transitions, ongoing tax-loss harvesting, and tax-smart withdrawals,” the companies said in a release. 

With the latest deal, the old-line Baltimore fund company, with $1.7 trillion in assets under management, has gone from selling funds as groceries to delivering them as take-out, with a new kitchen and new chef.

The chef is Joshua Horesh, who was hired away from BlackRock in 2024. He's now T. Rowe's head of U.S. Model Portfolio Distribution. He held the same title at BlackRock, which pioneered model portfolios. 

Horesh says in an email that T. Rowe is still building its model portfolio unit.

“We continue to invest in our broader model portfolio capabilities, which also include growing our model portfolio distribution team, investing in technology that supports custom trade commentary and performance reporting, and new model offerings that apply our growing ETF lineup – such as those through our recent collaboration with Goldman Sachs Asset Management,” he writes by email. 

Nodding to RIAs

RIAs think of model portfolios as rough drafts for their own portfolios. In reality, most advisors end up using the models lock, stock and barrel, not just as information, but a guiding process that saves them from work and stress.

The tax management part of the T. Rowe model is provided by Vestmark and now its is being used by 55ip, a wholly owned subsidiary of J.P. Morgan.

As of last December, 55ip reported $130.4 billion in assets powered by its platform, up from $315 million at the time RIABiz wrote about JP Morgan's acquisition in 2020. See: Jamie Dimon is late out of the gate, but vows to run twice as hard toward the RIA market, purchasing 55ip and advertising his hunger to buy more

When JPM CEO Jamie Dimon bought 55ip, it was seen as the giant's nod to RIAs and the need to have something appetizing for the rising wealth channel.

According to Cerulli research, outsourced models had $2.5 trillion in overall assets by the end of 2024, up 23% from the previous year. 

Further, the Boston firm projects model assets to grow to over $10 trillion by 2029. See: RIAs are starting to embrace 'model' portfolios, pressuring the status quo proprietary model of giants like BlackRock, Vanguard and Capital Group and making TAMPs emphasize back office support

Holistic advice

Ceruilli's U.S. Asset Allocation Model Portfolios 2025 report found that 65% of model provider asset management firms prioritize custom models, and 71% of asset managers view them as a major business opportunity. 

For investors, these model portfolios deliver institutional-quality outcomes and more holistic advice, as advisors integrate tax management and personalization into portfolio design.

Mike Camp, head of Client Solutions at 55ip, makes no bones about the fact that model's capability was the difference that drew T. Rowe into the elite company of larger firms it utilizes similarly.

"We are excited to partner with any firm who is committed to the model business and who delivers value to advisors and their clients," he says through a spokesman.

“We welcomed T. Rowe Price's decision to collaborate with us on custom models, alongside our existing partners such as J.P. Morgan Asset Management, BlackRock, and Fidelity.

"They have all developed solutions that start with high-quality portfolio construction and investment products, enhanced by 55ip’s ActiveTax Technology. 

"We are proud to support these asset management brands by providing advisors with a broad range of investment solutions that offer after-tax benefits through our platform.”