Predicting the future of investing: product flexibility

Technology has been slowly squeezing the business model of the global investment industry. Its grip is set to tighten even further in the years ahead. Over the past 20 years, passive investing and exchange-traded funds (ETFs) have laid bare some of the arguments of active management houses. Many of these fund managers, it turns out, do not offer much upside over their respective benchmark stock or bond indexes, particularly once their fees are deducted. It is extremely hard to con…