Investment Committees: Determining Fit and Creating a Custom Family Framework

As a common form of investment governance, an investment committee (IC) plays a crucial function in the ability of families to define their financial objectives and formulate a strategy for a diversified portfolio. The IC also can be effective as a gatekeeper and to oversee the implementation of investments while providing critical input about the program on an ongoing basis. However, without careful planning and execution, it is not easy to unlock an IC’s potential and benefits. Here as a custom family framework, five primary building blocks and a sample IC charter are provided to help with constructing a successful IC.

For a broader view of investment committees, see Investment Governance: Creating a Framework that Works for a Family.