Speaking at a press event, Parkin, head of iShares UK retail & wealth sales at Blackrock, said investors need to accept that all investment decisions are ultimately active and their attention is better spent on deciding what works best for clients.
This means using a combination of investment strategies including exchange traded funds, index funds, active funds and single securities to build portfolios that meet an individual’s investment goal, he said.
Parkin added: “By 2025, I sincerely hope that active vs passive is truly a thing of the past and intelligent models are the norm.
“[I hope] all we end up talking about is either the investment proposition or just designing the best engine that delivers the right outcome for the client.
“It’s just not about the product anymore, it’s all about the outcome.”
Parkin also said that as part of this the investment industry must focus on addressing the UK’s lack of retirement saving.
“We really need to get the UK into some sort of financial health craze in the same way that we’ve got them in to a physical health and wellbeing craze,” he said.
“If we can do all of this over the next seven years then we’ll have done a good job.”