Asset managers face growing pressure to evolve their business models or risk being left behind as client expectations continue to reshape the industry, the Thinking Ahead Institute and CAIA Association have found.
The joint paper, titled An Expanding Mandate: A Systems Level Framework for Asset Management, has suggested that traditional approaches centred solely on benchmark-relative returns are becoming less relevant in an environment that is more defined by interconnected risks, structural change and rising client demands.
The research has highlighted a divide between firms that are adapting to the new reality and those still operating within legacy frameworks, and the institute and association have called the new approach "systems-level investing", which recognises that long-term investment outcomes depends on the resilience and health of the wider economic, social and environmental systems in which the markets operate.
The findings draw on the ongoing Thinking Ahead Institute Global Asset Manager Peer Study 2026, which evaluates more than 170 global asset managers across 16 countries, representing $39trn in assets, as well as the series of global leadership forums across the world’s financial centres moderated by CAIA, culminating in the report The World Rewired: From Signals to Shifts, the Decade Ahead for Capital Markets.
The publishers state that while firms recognise the importance of major structural themes such as geopolitics, AI and the convergence of public and private markets, research suggests many are not able to respond in an integrated way. The ability to do so is set to be crucial in determining which firms are successful in the future.
In contrast, some large asset owners, including sovereign wealth funds and pension schemes, are increasingly adopting more integrated approaches. They are placing greater emphasis on real-world outcomes and long-term resilience and expect the same from the managers they appoint.
Against this backdrop, the asset management industry is experiencing repositioning and rapid consolidation.
As a result, the Thinking Ahead Institute and CAIA Association have called on investment leaders to rethink how success is defined inside their organisations and strengthen their ability to develop decisions.
They have also stated that leaders must develop the talent and cultures needed to operate effectively in a more complex world.
Head of the Thinking Ahead Institute, Marisa Hall, stated: "Asset management is running out of road with old playbooks. In a world shaped by interconnected risks, structural change and rising client demands, benchmark-relative thinking alone is no longer enough.
"Firms need to adapt to a more integrated, systems-level view to stay relevant. Too many asset managers are still clinging to models built for a simpler era. The uncomfortable truth is that relevance is already being reallocated by asset owners – quietly but decisively – to those that have retooled their organisations for this new reality."
CEO at CAIA, John Bowman, added: "The era of skills training in investment management has officially given way to lateral, meta level thinking. Geopolitical fragmentation, technological disruption, demographic shifts, and the growing convergence of public and private markets require a broader lens that can connect dots across several disciplines.
"This report underscores why systems-level thinking is becoming a strategic necessity for investment organisations seeking to remain relevant, resilient, and aligned with the evolving needs of asset owners."
