At TSAM Toronto, our team met investment managers, asset owners and fintech providers across the Canadian market to discuss front-to-back operational efficiency.
The agenda covered investment operations, data and technology, performance and risk, and client services. These are the areas where we partner with clients every day.
Two questions came up repeatedly: how firms modernize their operating models, and what should they run themselves versus hand to a partner? Firms are no longer asking whether to transform. They are asking how to do it without adding cost and complexity.
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The transformation decision tree
The standout presentation came from a large Canadian pension plan, walking attendees through a decision tree that many firms face when they modernize. One path is to adopt core capabilities with limited customization. The other is to choose best-of-breed components and customize heavily around a smaller strategic area. Neither path is right for everyone. The point was that the choice needs to be deliberate and tied to where a firm actually wants to set itself apart.
The pension plan’s own setup shows a hybrid approach. It runs a single front-office platform across its whole book, outsources custody and back-office services, and keeps other capabilities in-house. For our Global Client Division and Investment Services teams, the takeaway is clear. Clients are not choosing between doing everything themselves and outsourcing everything. They want a partner that can take on the non-differentiating parts of the operation and connect cleanly to what they keep in-house.
Charles River has written about redesigning investment manager operating models for an AI-driven future, arguing that efficiency programs and point upgrades no longer match the scale of change underway. State Street Alpha was built for this kind of decision. It was the first front-to-back platform from a single provider, combining Charles River IMS with State Street’s middle- and back-office capabilities. Clients can choose their preferred data and analytics providers from Charles River’s growing third-party ecosystem.
AI came up in nearly every session. The speaker framed it as something that should shape decision-making, but no one showed a mature or groundbreaking implementation.
AI was everywhere, but mostly still conceptual
AI came up in nearly every session. The speaker framed it as something that should shape decision-making, but no one showed a mature or groundbreaking implementation. Industry data supports that Mercer’s 2026 AI in Asset Management Survey found that most managers use AI for automation or as a “co-pilot” for analysis, while only 6% use it for decision-making.
The most practical approach we heard came from a servicing client that is starting its AI initiatives at the edges. It is using AI to support expanded fixed income and derivatives capabilities without costly customization of its platform. This is where a servicing relationship helps. Clients can add new capabilities at the edges while their provider keeps the core stable.
We are applying AI in production in the same practical way. On our Data Platform, deep-learning anomaly models cut flagged data exceptions from more than 31,000 to about 4,000 and still caught all 250 true errors, according to a review of State Street’s technology stack.
The most practical approach we heard came from a servicing client that is starting its AI initiatives at the edges. It is using AI to support expanded fixed income and derivatives capabilities without costly customization of its platform.
Private markets: quieter, but evolving structurally
Private markets got less attention in Toronto than at other recent events. The main exception was a session on fund structures such as evergreen vehicles, a fast-growing market sector. Morningstar and Pitchbook report that US evergreen fund assets passed $650 billion in 2026, with private equity and venture capital the fastest-growing strategies. Preqin data shows a record 123 evergreen launches in 2025.
For Investment Services, these perpetual structures change what servicing looks like. Ongoing subscriptions, redemptions and regular valuations need fund administration and accounting that can handle both public and private assets. Charles River supports alts investors across the asset spectrum, from private credit to real estate, and private equity to infrastructure, helping firms manage the entire deal cycle on one platform.
State Street’s 2026 Digital Assets Study found that 51% of institutional investors expect digital assets to become mainstream within five years.
Tokenization moves closer to the core
Tokenization also generated lots of discussion, and it is a major area of investment for our servicing business. In January, State Street launched its Digital Asset Platform, which supports tokenized money market funds, ETFs, tokenized deposits and stablecoins.
We also plan to offer tokenized fund servicing from Luxembourg by the end of 2026, so clients can run digital and traditional funds together under one operating model. State Street’s 2026 Digital Assets Study found that 51% of institutional investors expect digital assets to become mainstream within five years.
The Takeaway
TSAM Toronto confirmed what we hear from clients around the world. Modernizations come down to deliberate choices about what to own, what to standardize and who to partner with. Our Global Client Division and Investment Services teams want to make those choices easier. That means a stable, integrated core across front, middle and back office, so clients can focus on adding AI, private markets and digital assets where they create the most value.
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