Responsive Capital Management, an online wealth manager powered by artificial intelligence (AI) technology, has gone live in Canada.
Responsive is a second-generation robo-advisor and will serve as an active manager, unlike first-generation robo-advisors including Wealthsimple, Wealthbar and Nestwealth.
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It will make use of low-cost exchange-traded funds to create client diversified portfolios.
“Responsive's AI uses decades of diverse data in its data warehouse to assess probabilities for the direction of asset prices in any given market and applies those insights to client portfolio with the aim of achieving above-average returns,” the company said in a statement.
The company's new wealth management platform will bring the AI technology to account sizes as small as $10K.
The wealth manager said that its AI technology will modify its portfolio positions based on over 100 global economic and market signals such as interest rates, volatility indices, as well as factory output.
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By GlobalDataResponsive CIO Thomas Holloway said: "Unlike most online wealth managers, Responsive's goal is to achieve above-average returns for our clients. Other robo-advisors' aim only to achieve average market-returns.
"And with market volatility, a changing interest rate environment, and the end of the great moderation, passive investing, the strategy employed by all Canadian robo-advisors, may not be the best approach for investors in the coming years."
