For many families, navigating the complexities of outsourcing investment functions can be challenging. This paper helps families understand the different structural components to consider as they seek to create an institutional-caliber portfolio.
Creating portfolios customized to a family’s unique investment goals and risk tolerance requires ingenuity and flexible thinking. However, the execution of risk management should be more systematic, and families and their advisors should consider four components: strategic risk, implementation risk, portfolio monitoring, and communication.