Family offices
Family Office Allocation: Build an Investment Policy Brief
Decision in brief
A family-office allocation should start with obligations: spending, debt, capital calls, expected taxes and commitments to family members. Separate the operating business from assets available to fund those obligations. A percentage mix without that map is difficult to evaluate.
Start with constraints rather than model weights
The SEC’s investor guide frames allocation around time horizon and risk tolerance. A wealthy family still needs to define those inputs; there is no universal allocation implied by its net worth.
Source:[1] SEC / Investor.gov
Five questions for the investment policy
| Area | Decision to document |
|---|---|
| Liquidity | Which obligations must be funded without asset sales? |
| Risk | What loss or delay could the family tolerate? |
| Concentration | Which business, manager, country and currency limits apply? |
| Authority | Who may approve, execute and veto changes? |
| Review | What triggers a review, and who receives the report? |
Build a liquidity calendar
List dated obligations and dependable resources before relying on expected distributions or a planned business sale. Ask the investment adviser to stress-test delayed exits, capital calls and a fall in public assets together. Use a scenario relevant to the family rather than a reassuring average return.
- Separate daily liquidity, restricted holdings and assets with uncertain exit dates.
- Record currency for each obligation and funding source.
- Show existing commitments before considering new funds.
- Include borrowing terms and collateral obligations in the same view.
Make the review useful
Request a comparison of the current arrangement with proposed changes, including taxes, trading costs and manager fees. Ask the adviser to explain what remains uncertain and to record agreed limits. This desk can help identify the specialist needed for the brief; it does not publish a personalised allocation or manage investments.
When to pause
If no one can agree the family’s spending needs or decision authority, fix those before appointing another manager. A new investment should not become a substitute for an unresolved governance decision.
Sources and scope
Editorial briefing checked against the linked sources. No independent professional review is claimed. Application to your circumstances requires a qualified specialist.
- Asset allocation and diversification
SEC / Investor.gov · Source checked:
Define the next professional step
Share the objective, countries and timing. We review the request and discuss the specialist needed and whether an introduction is available. Agree the service scope and fees directly with the specialist.
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