Investment Governance: Creating a Framework That Works for a Family

A well-defined governance system is what drives a strategy for portfolio investments—all the while increasing a family’s ability to formulate its goals and policies, make decisions, and perform an oversight function. This article can help families in the development of their own decision-making framework and focuses on three core building blocks of investment governance: (1) people, (2) authority, and (3) process. It also takes a close look at the potential benefits of the investment committee model and presents a set of best practices for families to consider.

For an in-depth view of investment committees, see Investment Committees: Determining Fit and Creating a Custom Family Framework.