By definition, a narrowly drawn product will "outperform in some environments and underperform in others, " says Francis Kinniry, a principal in the investment-strategy unit of Vanguard Group.
In its Victorian incarnation, a tontine was an investment pool to which a group of speculators contributed capital, the principal and interest to be distributed in a lump sum years later to the last survivor.
Other firms like Goldman Sachs (GS) and Jefferies Group (JEF) derive a meaningful percentage of revenue and profits from principal transactions and investment management activities.