Laplace Insights Delivers AI-Driven ESG Strategy for Advisors and Wealth Managers

Low volatility, environmentally and socially aware investment strategy designed to outperform passive allocations without adding complexity. 

SHERBROOKE, QUEBEC, November 2, 2021 — Laplace Insights™ announces the addition of their low-volatility ESG (Environmental, Social and Governance) strategy and model portfolio. Using Laplace Insights artificial intelligence (AI) platform, the strategy provides an easy-to-implement solution for advisors and wealth managers seeking to offer their clients a vetted ESG portfolio that is predictively rebalanced to deliver optimized risk-adjusted returns. 

Developed in collaboration with Altervest — an alternative investment wealth manager based in Montreal — the strategy uses AI-driven, predictive models to dynamically optimize allocations across a basket of well established, low-cost, ESG-focused ETFs. The ETFs selected cover a diversified range of asset classes, while only holding securities that maintain high ESG scores. The model portfolio’s basket of investable ETFs was established in collaboration with Altervest’s founder and lead portfolio manager, Geneviève Blouin. 

“There is growing interest for ESG products among our clients.  They are looking for ways to invest alongside their personal values to make a positive impact on the environment and people. The ability of the Laplace Insights AI platform to produce tailored strategies helps us meet our clients’ expectations without having to perform an ESG analysis for each of the underlying securities,” says Ms. Blouin of Altervest. “This is the first easy-to-execute strategy that employs AI to navigate shifting markets and deliver optimized returns and low volatility within a vetted and diversified ESG portfolio.” 

“Clients don’t want to pay a performance penalty with ethical portfolios that fail to deliver returns or are subject to high volatility; they are hungry for ESG strategies that can compete with the performance of popular indices that do not consider environmental or social concerns,” said Laplace Insights CEO and founder, Jean-Marc Patenaude.  “Through our customer collaboration program, we develop purpose-built strategies to meet our customer’s needs and requirements. By bringing our flexible AI platform to the task of optimizing ESG investing for low-volatility performance, we give advisors and wealth managers like Altervest a reliable and easy-to-manage approach that is built to outperform comparable ESG strategies.”

All Laplace Insights subscribers are now receiving monthly allocation recommendations using the model portfolio’s basket of low-cost, ESG-friendly ETFs. Designed to outperform passive allocations by a compelling margin while also delivering low volatility, the strategy provides a convenient solution for advisors and portfolio managers, while incorporating the benefits of institutional-grade, predictive AI.  

The ESG strategy was developed with the support of Quebec’s Prompt PARTENAR-IA program.  “Laplace Insights’ AI project is innovative and very ambitious for its sector,” says Nicolas Bergeron, director of the PARTENAR-IA program. “Since our very first meetings, the project leaders demonstrated their clear vision of the innovation they sought and its expected impact. I am delighted to see the leverage that PROMPT’s support and funding have had. In addition to contributing to the company’s success and its growth in the fintech marketplace, Laplace Insights’ innovation confirms that AI can make ESG sustainable investment more attractive to investors.”

Laplace Insights’ AI platform was developed in collaboration with Professor Shengrui Wang and his team at the Faculty of Science of the University of Sherbrooke, a long-time partner of the company.

About Laplace Insights 

Laplace Insights delivers investment strategies and insights to asset managers and investment advisors using PSIMON™, its institutional grade artificial intelligence (AI) platform. Resulting from more than six years of research in financial AI, PSIMON delivers predictive clarity and insights on financial markets that rival those employed by top asset managers.

Learn more about PSIMON.