On Wednesday September 21st, Responsive Capital Management, an online wealth manager powered by artificial intelligence (AI) technology, will offer consumers access to technology typically only within reach of the wealthy.
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's AI technology has a three year track record helping manage over $1.2 billion of institutional and high-net worth capital. Responsive's newly available online wealth management service brings the same technology to account sizes as small as $10K.
"Imagine: the same AI that enables Amazon, Apple and Google products, such as machine learning, now powering and protecting your diversified portfolio" reports CEO and Stanford alumnus Davyde Wachell. "We've already accumulated over a million dollars in assets under management. The response has been overwhelming on launch day. "
A robo-advisor is an online wealth management service that provides automated, algorithm-based portfolio management advice without the use of human financial planners. Responsive is a second-generation robo-advisor: what differentiates it from first-generation robo-advisors such as Wealthsimple, Wealthbar and Nestwealth is that it is an active manager.
Like its competitors, it uses low-cost exchange-traded funds (ETFs) to create client diversified portfolios, but Responsive's AI modifies its portfolio positions based on over 100 global economic and market signals that it tracks such as interest rates, volatility indices, and factory output.
"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" says CIO Thomas Holloway. "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."
Responsive is the first organization in Canada to release an artificial intelligence wealth management service in Canada.