The relative size of each pool changes over time due to investor preferences, which is driven by growth expectations, risk perceptions, total available liquidity, and investors’ idiosyncratic views.  For example, one of the best examples of disruption is the low cost index fund movement, pre-eminently Vanguard.  As a result of the sector’s growth, the proportion of assets managed by money managers in traditional active core asset classes has shrunk dramatically from nearly 60% of assets in 2003 to less than 40% today.  This will likely accelerate, as net flows into traditional active core asset classes are negative (See Picture 9).