Chief Investment Office
Live tactical parameters and operational alerts for your operating structure.
Pending Action Items (2)
IC Conviction Matrix
Updated: 12 Apr 2026
Tactical stance relative to your strategic asset allocation benchmarks.
Equities (Dev Markets)
US Mid-Caps
Strong Overweight
Fixed Income
Private Credit
Overweight
Equities (Emerging)
China Tech
Neutral
Real Assets
Commercial RE
Underweight
Manager Due Diligence (MDD)
Active allocations
Manager / Fund
Asset Class
Status
Last Review
Oaktree Capital Management
Distressed Debt
Approved
Q1 2026
Sequoia Capital Growth III
Venture Capital
Approved
Q4 2025
AlphaQuantitative Holdings
Systematic Macro
Monitor
Q1 2026
IPS Completeness Checker
A practitioner-grade IPS contains 11 core sections plus 4 critical appendices. Assess your current document below.
Core Sections
Section 1: Purpose and Governance Context
Who has authority to adopt, amend, and implement the IPS. Relationship to family constitution, trust deeds, and IC charter.
Section 2: Beneficiaries and Objectives
Identified beneficiaries with precision. Investment objective hierarchy: preservation vs. real return vs. income. Time horizon specified.
Section 3: Risk Tolerance — Quantified
Maximum drawdown threshold, volatility target, VaR limits. Both willingness and capacity to take risk addressed.
Section 4: Return Objectives
Absolute or relative target. After-tax specification. Spending rate policy documented.
Section 5: Asset Allocation Policy
Strategic targets by asset class with upper/lower drift bands. Rebalancing triggers and execution hierarchy.
Section 6: Portfolio Construction Constraints
Single-position concentration limits; manager limits; geographic limits; currency hedging; ESG exclusions; leverage policy.
Section 7: Roles and Responsibilities
Authority thresholds: CIO vs. IC approval. Escalation rules.
Section 8: Performance Measurement & Benchmarking
Benchmark definitions by asset class. Composite benchmark for total portfolio. Review cadence.
Section 9: Manager Selection and Monitoring
Pre-approval requirements. Separate investment and operational DD. Monitoring triggers and termination criteria.
Section 10: Reporting Standards
Frequency and content of IC reporting. Custodian reconciliation. Valuation policy for unlisted assets.
Section 11: Review and Amendment Process
Annual review requirement. Who can propose amendments. Approval authority and emergency amendment procedures.
Critical Appendices
Appendix A: Asset Class Targets with Drift Bands
Detailed table: target %, lower band %, upper band % for each asset class. The document the CIO refers to daily.
Appendix B: Approved Manager Universe
All approved external managers and mandate types. Approval date and last review date.
Appendix C: Benchmark Definitions
Named index series with ticker codes. Composite benchmark weighting methodology.
Appendix D: Liquidity Schedule — Five-Year Projection
5-7 year model: projected capital calls, distributions, spending needs, tax payments. The most commonly absent and most consequential appendix.
IPS Coverage Score
0 / 15
Select the sections and appendices present in your current IPS to assess completeness.
IC Effectiveness Diagnostic
Assess your Investment Committee across six dimensions based on the Agreus/Handle Private Capital IC effectiveness rubric.
Composition
How would you describe the current IC composition?
Best practice: 3–7 voting members; at least 1–2 independent professionals; independent or CIO chairmanship.
Information Quality
When are meeting materials distributed to IC members?
Standard: materials distributed 5+ business days before the meeting.
Deliberation Quality
How would you characterise the typical IC deliberation?
An IC that consistently reaches unanimous agreement without debate is performing a governance ceremony, not oversight.
Decision Documentation
What do IC minutes typically contain?
Minutes must contain enough information to reconstruct the basis for a decision two years later.
IPS Policy Adherence
How is IPS compliance reviewed at IC meetings?
Best practice: IPS compliance review is the first substantive agenda item, before any investment decisions.
Follow-Through
How are IC action items managed?
An IC action log reviewed at every meeting is one of the simplest high-impact governance improvements at any maturity level.
IC Effectiveness Score
18 / 30
Developed — Ceremony Risk Present
Your IC has the basic structures in place but operates at a level where "governance ceremony" risk is active.
Long-Horizon Investment Discipline
Are you investing with a long-horizon framework — or just a long-horizon allocation?
What long-horizon investing actually requires
A perpetual time horizon — documented in policy
The illiquidity premium is only earned if the capital genuinely cannot be forced to sell. Requires a written spending/distribution policy and a liquidity model confirming the portfolio can survive a 3-year stress scenario without forced asset sales.
A formal spending policy — not ad hoc distributions
Without a spending policy, illiquid assets must be liquidated at poor prices during downturns — destroying the compounding the model depends on. Family offices distributing on demand are operationally incompatible with a long-horizon strategy.
Manager quality — or passive alternatives
In asset classes where manager selection does not generate alpha, paying active management fees systematically destroys value. The discipline is ruthless selectivity: fewer, higher-conviction managers with genuine edge.
Illiquid allocation sized to what the portfolio can hold
Multi-generational endowments hold 65–83% in illiquid assets because they have infinite time horizons and no forced distributions. Family offices with real liquidity needs should approach illiquid allocations as a constraint set by the liquidity model — not an ambition.
Gaps that undermine the strategy
We hold significant private assets but have no formal distribution or spending policy
The illiquidity premium depends entirely on not being forced to sell at the wrong moment. Without a documented distribution policy, the portfolio risks liquidating private assets precisely when markets are distressed.
We selected our private equity managers based on relationships, not a documented diligence process
Manager quality is the primary driver of long-horizon private markets returns. Relationship-based selection substitutes access for analysis.
We have not modelled our capital call obligations against our liquid assets for the next 5 years
Overlapping J-curves across multiple vintage years can create simultaneous capital calls. Without a forward-looking liquidity model, this creates a cash crisis that forces secondary sales at discount.
We benchmark our private equity against public market returns we see in the news
Private equity should be benchmarked using PME (Public Market Equivalent). S&P 500 comparisons systematically misattribute performance and lead to incorrect termination decisions.
Our IC has not reviewed our long-horizon investment framework against our specific liquidity needs
A long-horizon framework must be calibrated to the specific family's liquidity position, distribution needs, and manager access. Most families operating with private market allocations are working from the asset mix without the institutional discipline.
Manager Selection Framework
How institutional allocators select and monitor managers. Three-stage process with ODD as an independent veto workstream.
Stage 1
Universe Screening — Quantitative & Strategic Filter
Manager selection begins at the portfolio level, not the manager level. Screens include minimum track record (typically 3+ years), fee structure reasonableness, minimum AUM thresholds, and quantitative performance filters.
Key metric: PME (Public Market Equivalent) — not IRR alone. A manager with 18% IRR but PME below 1.0x is delivering worse risk-adjusted returns than a passive alternative.
Define portfolio need first, manager second
Screen on PME, not IRR alone
Require minimum 3-year audited track record
Review fee structure (2-and-20 is a ceiling, not a standard)
Stage 2
Qualitative Deep Dive — The 4 Ps Framework
P
People
Team depth, stability, partnership structure, alignment of carry. Key-person risk. Succession within the team.
P
Philosophy
Clarity and consistency of investment thesis. Can they explain their edge in one sentence? Does portfolio behaviour match stated philosophy?
P
Process
Documented, repeatable sourcing, diligence, construction, monitoring, and exit processes. Not what they say — what evidence shows.
P
Performance
Attribution: was outperformance from beta, sector tilt, or genuine selection? Consistency across vintages and market cycles.
ODD
Operational Due Diligence — Independent Veto Authority
ODD runs independently and has veto power. A fund that clears investment diligence but fails ODD is rejected. This is the institutional standard established after Madoff (2008) and Weavering Capital (2009).
Immediate rejectionSelf-custody of assets by the investment manager
Immediate rejectionUnknown or small auditor; stale financials
Immediate rejectionReturns too smooth to be statistical — zero negative months across extended periods
Elevated scrutinyHigh operations/compliance staff turnover
Elevated scrutinyValuation conducted by the investment team without independent verification
Elevated scrutinySEC examination with material findings; regulatory actions
Ongoing Monitoring Triggers
Investment triggers
Performance breach vs. benchmark for 2+ consecutive quartersStyle driftAUM growth outpacing team capacityVintage underperformance vs. PME
Operational triggers
Key-person departure (PM, CIO, COO)Change in fund administrator or auditorRegulatory actionSignificant staff turnover in operations or compliance
Relationship triggers
Communication quality deteriorationReluctance to answer ODD follow-up questionsFund raising for new strategy mid-life of existing fund
Liquidity Architecture Modeller
Is your portfolio structured to survive a 3-year stress scenario? Map your three-tier liquidity architecture below.
Tier 1
Operational Liquidity
0–6 months
Cash, money market, T-bills. Covers operations, distributions, tax obligations, and near-term capital calls.
Tier 2
Strategic Liquidity
6–24 months
Short-duration fixed income, investment-grade credit, liquid alternatives. Provides buffer against market dislocations.
Tier 3
Long-Term Capital
24+ months
Private equity, infrastructure, real assets, private credit. Full illiquidity premium captured. Target return: CPI + 5–7%.
Institutional Standards Checklist
A practical self-assessment against the standards that distinguish institutionalised family offices from informal ones. Click to mark items complete.
Investment Governance
- Documented Investment Policy Statement (IPS), reviewed annually 48% of FOs lack this — Citi 2024
- Strategic asset allocation mandate aligned to documented risk tolerance and liquidity needs 40% lack a documented investment framework — Campden/AlTi 2024
- Investment committee with defined charter, quorum rules, and documented meeting cadence Only 43% have an IC — J.P. Morgan 2024
- Manager selection criteria formally documented and consistently applied
- Rebalancing triggers, bands, and protocols defined in the IPS and reviewed annually
Risk Management
- Concentration limits defined and enforced in the IPS Average FO carries 12% in concentrated positions — Citi 2022
- Illiquidity budget defined as a percentage of total portfolio with a minimum liquidity reserve
- Counterparty risk assessed across all custodians, prime brokers, and banking relationships
- Formal third-party cybersecurity assessment within the past 12 months Only 34% of FOs have conducted a maturity assessment — Deloitte 2024
- Operational risk register maintained and reviewed quarterly; incident response plan documented
Reporting & Transparency
- Consolidated portfolio reporting covering all assets and managers
- Performance benchmarked against stated objectives in the IPS
- Quarterly reporting package delivered to principal or investment committee
- Manager performance review on a defined cadence
Governance & Family
- Decision rights documented and agreed across principal, family, and staff
- Family council or governance body formally constituted
- Succession plan documented for key roles and principal position
- Next-generation engagement and education programme in place
Operations & Compliance
- CRS, FATCA, and local tax obligations reviewed by qualified counsel
- Advisor coordination matrix current and reviewed annually
- Conflict-of-interest policy defined for all service providers
- Operating budget and cost benchmarking reviewed annually