The Future

The fallacy of composition holds for global investing. Not everyone can succeed because winners must be matched by losers – the zero-sum game applies. But global investing is still an idea waiting for best execution which is why the leading money managers are devoting increased resources to building better global manufacturing platforms. Vaughan Associates sees a future where fiduciaries and multi-manager funds will cherry pick from a greater range of investment styles in the global and international asset classes. Size and scale will provide only one solution to globalisation and specialisation and local focus will play a role as well.