Investment Management: No limits to Size?

Talk of (inevitable?) concentration in the Investment Management universe must lead to the obvious question: is it really inevitable as many consultants and industry bigwigs are saying or is there a natural limit to ever-expanding amount of aum among the industry giants such as Vanguard, Blackrock or JP Morgan?
There may well be the result of at best matching the investment benchmarks (minus fees, costs) as the sheer size of portfolios makes any meaningful divergence from the benchmark more and more impractical. So even active management will be not much different from passive management the bigger a provider becomes.
Product differentiation may provide a (temporary)?) solution as the myriad of strategies can again try to be nimble small fish in a big pond. So effectively big investment houses become a congregation of investment boutiques under the same roof - be they separate subsidiaries (as at Natixis for example) or just different teams under the same umbrella.
Which leads to the next conclusion: if boutiques are the way to at least try to make active investment management work who is to say that free-standing boutiques or even mid-sized firms are necessarily at a disadvantage? Everybody knows where the big pools or money are and digital distribution channels will keep the costs garnering assets under control.
Largest US pension fund CalPERS in talks with BlackRock to outsource buyout business, source says

Top Execs sell stock before bad company news breaks

When well-paid (overpaid?) top executives behave like this one should not wonder that Capitalism and the Market System increasingly lose public support. It is only fortunate that the average citizen is not really able to properly put such blatant abuse of position into proper perspective. After all, how many do really understand what a million dollars (life changing amount for 99% of the population) means? The maths scores tell a story! And it will be interesting to see how regulators and the trustees of the savings of ordinary people (aka investment managers, private bankers) and the corporate and 'socially responsible' investment crowd are going to do about this.
http://www.marketwatch.com/story/equifax-executives-sold-stock-after-data-breach-before-informing-public-2017-09-07?siteid=rss&rss=1

Diamonds are Forever?

Lending ONE BILLION against some baubles supposed to be in envelopes or safes? NUTS! Did they never hear about the Great Salad Oil Swindle in the early 1960's? What do these risk managers do? Do the 'Elite' Business Schools teach them the basics?
https://www.bloomberg.com//news/articles/2017-09-07/how-standard-chartered-lost-400-million-on-risky-diamond-debt