Asset managers risk falling behind if they fail to adapt their organisations to major structural shifts reshaping investment markets, according to new research from the Thinking Ahead Institute and Chartered Alternative Investment Analyst Association (CAIA Association).
The report – An expanding mandate: A systems level framework for asset management – argued that while managers broadly recognise the significance of developments such as geopolitical fragmentation, artificial intelligence and the convergence of public and private markets, many have yet to develop integrated responses to those challenges.
Drawing on the Thinking Ahead Institute’s Global Asset Manager Peer Study 2026, covering more than 170 asset managers representing $39trn in assets, as well as a series of leadership forums organised by CAIA Association, the paper warned that traditional business models centred on benchmark-relative returns are becoming less suited to an increasingly interconnected investment environment.
According to the authors, the ability to navigate multiple structural trends simultaneously is likely to become a key differentiator among asset managers in the coming years.
The report described a growing divide between firms that are adapting their organisations, investment processes and decision-making frameworks to address interconnected risks and opportunities, and those that continue to operate within more traditional structures.
Marisa Hall, head of the Thinking Ahead Institute, said: “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.”
She added: “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.”
The paper argues that leading asset owners, including pension funds and sovereign wealth funds, are increasingly seeking approaches that place greater emphasis on long-term resilience and real-world outcomes, creating pressure on managers to broaden their capabilities beyond traditional asset-class silos.
At the same time, the research challenges perceptions around the pace of AI adoption within the industry. Despite extensive discussion of AI’s transformative potential, the study suggests managers are not planning significant increases in technology spending over the next five years, while maintaining baseline investment in frontline human capital.
The authors argue that future success will depend not only on technological capabilities but also on governance, talent and organisational culture.
John Bowman, chief executive officer of CAIA Association, said: “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.”
The report concludes that investment organisations will need stronger decision-making frameworks and a more integrated approach to managing interconnected risks if they are to remain competitive as client expectations continue to evolve.
