A: There are three reasons. First, technology makes it easier. There are instruments and tools that allow you to individually create and analyze beta, strategic beta and alpha, and offer them separately. That just wasn't available 10 years ago, and the technology has improved even in the last few years to really do this efficiently. Second, traditional, fully “bundled” investment products have disappointed some investors after accounting for costs and the return they forgo when their behavioral reaction leads them to buy high and sell low. Lastly, investor demand is changing and some of that is generational. We see younger people wanting to buy the services that they specifically want.

Colin Moore is global chief investment officer at Columbia Threadneedle Investments.

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