Asset managers told to scrap old playbooks or risk being left behind

Firms that continue to lean on benchmark-relative returns as their primary measure of success could find themselves overtaken by rivals better equipped to navigate a world of interconnected risk and structural upheaval.

That warning comes from a new joint paper published by the Thinking Ahead Institute and CAIA Association, titled An Expanding Mandate: A Systems Level Framework for Asset Management, which argues that the conventional, benchmark-centred model of investment management is becoming increasingly out of step with a landscape shaped by structural shifts, rising client expectations and risks that cut across markets rather than sitting within them.

The research points to a widening split between asset managers willing to rethink their approach and those still operating on frameworks built for a different era.

The authors describe the emerging alternative as systems-level investing, an approach built on the premise that durable investment performance cannot be separated from the broader health of the economic, social and environmental systems markets depend on.

Where the evidence comes from

The conclusions are drawn from two main sources. Firstly, the Thinking Ahead Institute's ongoing Global Asset Manager Peer Study 2026, which spans more than 170 asset managers across 16 countries and roughly $39 trillion in combined assets. The second is a series of leadership forums held in major financial centres worldwide and moderated by CAIA, the output of which formed the basis of a separate report, The World Rewired: From Signals to Shifts, the Decade Ahead for Capital Markets.

Both strands point to a similar conclusion. Asset managers are well aware of the major forces reshaping the industry, geopolitical tension, artificial intelligence, and the blurring line between public and private markets among them, but few have built the internal capability to respond to these forces in a joined-up way.

According to the research, that capability gap is likely to become a defining factor in which firms thrive in the years ahead.

Asset owners are moving first

The data suggests it is asset owners, rather than asset managers, who are furthest ahead in adopting this broader, systems-aware approach.

Sovereign wealth funds and pension schemes are increasingly prioritising long-term resilience and real-world impact in how they evaluate investments and are beginning to expect their appointed managers to operate with the same mindset.

On artificial intelligence specifically, the research challenges the prevailing narrative. Despite the volume of industry commentary around AI adoption, actual spending patterns tell a more measured story.

Forecasts for the next five years show firms holding steady on frontline human capital costs while increasing technology budgets only modestly, suggesting a more cautious, balanced approach to investment between AI tools and other priorities such as talent and governance.

Consolidation pressure builds

The paper situates these findings within a broader period of consolidation and repositioning across the asset management sector.

While multiple factors are driving that trend, the research suggests that managers slower to adapt their capabilities and business models are likely to be more exposed as client expectations continue to shift.

In response, the Thinking Ahead Institute and CAIA Association are calling on investment leaders to reconsider how they define success internally, build stronger decision-making capacity for an increasingly interconnected environment, and invest in the talent and organisational culture needed to operate in that more complex world.

"The era of skills training in investment management has officially given way to lateral, meta level thinking,” said John Bowman, CEO, CAIA. “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."