Austin Capital as Chief Investment Officer (“CIO”) is charged with deciphering the families’ investment objectives and philosophy into a disciplined and results-oriented investment strategy in order to be effective at discerning what the investment process and direction should be. The CIO will lead the process to identify, select, diversify, and monitor the money managers who implement and invest various aspects of the portfolio from cash management, bonds, equities, alternatives and derivatives. By creating the financial strategy for the family office, the CIO directs the investment policy statement creation, outlines and establishes the comparative investment benchmarks.
Because the family is in the business of staying wealthy versus becoming wealthy, the CIO is typically operating under guidance that is oriented toward wealth preservation rather than aggressive growth. The CIO primary objective is to maintain and grow the existing wealth and operate within guidelines and parameters of how the family prefers to invest, quantify and manage risk, and have a clear understanding of lifestyle, liquidity, and tax constraints of the family.
As part of our fiduciary duties we focus on these four areas:
Be the overseer, organizer, and implementer of the investment process. The CIO builds the process for how the Family Office investments will be deployed that mitigates decision risk. Help articulate the governance process for the decision making, which becomes fundamentally imperative for risk controls in the Family Office.
Liaise between the investment world and the family. Create the asset allocation with inputs and assumptions on the current market environment or the capital market assumptions. The CIO has the fiduciary responsibility during this process to mitigate investment risk for the Family Office.
Assess and understand the underlying assets such as the operating business, concentrated positions amongst others, in existence and how to invest by considering the tax, legal, risk, and liquidity constraints of the underlying family assets in the portfolio.
Should be both strategic and tactical for the underlying investments. The CIO must assist the family think about the strategic implications for the short and long term when it comes to the investment allocation decisions and the potential investment risks associated with various strategies.
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