A new joint study from the Thinking Ahead Institute and the CAIA Association warns that asset managers who continue to measure success primarily against benchmarks may find themselves eclipsed by competitors that adopt a more holistic approach to risk and opportunity. The report, titled An Expanding Mandate: A Systems Level Framework for Asset Management, argues that the traditional benchmark-centric model is increasingly misaligned with a landscape defined by structural shifts, rising client expectations, and interconnected risks that transcend individual markets.
The research identifies a growing divergence between asset managers willing to overhaul their strategies and those still operating under frameworks designed for a bygone era. The authors advocate for what they call systems-level investing, an approach that recognizes durable investment performance as inseparable from the health of the broader economic, social, and environmental systems on which markets depend.
Data Sources and Key Findings
The conclusions are drawn from two primary sources: the Thinking Ahead Institute's ongoing Global Asset Manager Peer Study 2026, which covers more than 170 asset managers across 16 countries with roughly $39 trillion in combined assets, and a series of leadership forums moderated by CAIA in major financial centers worldwide. The forums informed 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 acutely aware of major forces reshaping the industry—geopolitical tension, artificial intelligence, and the blurring line between public and private markets—but few have built the internal capability to respond to these forces in a coordinated manner. According to the research, this capability gap is likely to become a defining factor in which firms thrive in the years ahead.
Asset Owners Lead the Shift
The data suggests that asset owners, particularly sovereign wealth funds and pension schemes, are further ahead than asset managers in adopting a systems-aware approach. These institutions are increasingly prioritizing long-term resilience and real-world impact in their investment evaluations and expect their appointed managers to share that mindset. This trend aligns with broader industry movements, such as the rise of direct indexing, which allows for more customized, factor-based strategies beyond traditional benchmarks.
On artificial intelligence, the research challenges prevailing narratives. Despite extensive industry commentary on 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 cautious, balanced approach to investment between AI tools and other priorities such as talent and governance.
Consolidation and Strategic Repositioning
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. This dynamic is reminiscent of recent M&A activity, such as Modera Wealth's acquisition of NorthStar Financial, which added $311.6 million in Florida assets, reflecting the push for scale and enhanced capabilities.
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 organizational culture needed to operate in that more complex world. John Bowman, CEO of CAIA, stated: "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."
As the industry grapples with these challenges, advisors and asset managers alike may need to reassess their strategic frameworks. The study underscores that the ability to integrate systems-level thinking could become a key differentiator, much like the shift toward passive investing reshaped the landscape over the past decade. Firms that fail to adapt risk being left behind in an era where interconnected risks and client demands for holistic solutions are the new norm.
