One of the underappreciated trends in the last two decades in the financial markets is the rise of large cash pools like sovereign wealth funds, pensions, endowments, foundations, corporate treasuries, family offices, and more. This is excluding the large asset managers. Combined, these large cash pools manage trillions in assets that are not just invested in stocks and bonds but in alternatives like venture capital, private equity, farmland, natural resources, infrastructure, real estate, and more. They are mostly long term investors and have a substantial impact on the markets.
I got this infographic in an email, and it reminded me of a few other things I had bookmarked,
Invesco publishes a cool report that looks at how these large pools invest.
The biggest trend in the last decade has been the shift away from just stocks and bonds to alternatives like private equity, venture capital, real estate, and other investments.
