Family office investment management: what the office decides and what it delegates
The essentials in 30 seconds
- A family office usually decides the investment policy and the asset allocation, and it delegates execution to outside managers, as of October 2026.
- A written policy turns family goals into limits that survive a bad quarter.
- Delegation works when the office sets the mandate, monitors results and reviews fees.
- Direct investments in companies or property need a separate approval path and in-house deal skills.
- A review cycle of 4 steps keeps oversight regular for a Singapore family.
Investment management is the function families expect first from a family office, and it is also the one where the line between deciding and delegating matters most. This page shows what the office keeps and what it hands to outside managers, as of October 2026. It is one of four detailed pages under the overview of family office services.
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Why does a family office start investing with a written policy?
A written investment policy is the base of the whole function. It states the family goals, the target allocation, the limits per asset and per manager, the liquidity the family needs and the share of private markets it accepts. The policy turns family intentions into rules that everyone can read and test. Managers receive the policy before they receive any money.
The policy also protects the family in difficult markets. When prices fall, a written rule is easier to follow than a memory of what the family intended. The family council approves the policy and revisits it on a schedule, for example once a year or after a major event such as a sale of a company.
Which investment decisions does a family office keep for itself?
The office keeps the decisions that shape the whole balance sheet: the asset allocation, the choice of managers and custodians, the currency mix, the amount of liquidity and the limits on concentration. These decisions need the family-wide view, which no single manager holds, since each manager sees only its own mandate.
The office also keeps the decision to stop. It can close a mandate, reduce an exposure or hold cash when the policy calls for it. Keeping these powers in the office means the family can act as one investor, even when assets are spread across banks, funds and private companies in different countries.
Which investment tasks does a family office delegate to outside managers?
Most offices delegate security selection, trading and specialist strategies. An external manager can run a global equity mandate, a bond portfolio or a real estate fund with more depth than a small team can bring. The office gives each manager a clear mandate: objective, benchmark, limits, reporting format and fee basis. Fees are agreed in writing and reviewed each year.
Delegation does not remove responsibility. The office remains accountable to the family for the choice of manager and for the supervision that follows. A good mandate is short, specific and measurable, so that the office and the manager can both tell, at any time, whether the work matches the agreement.
How does a family office handle direct investments in companies and property?
Direct investments are a special case because the office is itself the investor. It sources the deal, studies the business or the building, negotiates terms and monitors the holding. These tasks need experienced people, time and a clear approval path, so many offices write a separate procedure for them. Each holding then follows the same reporting routine as the rest of the portfolio.
A common safeguard is a limit on the share of the balance sheet in direct deals, together with a rule that a second reviewer, inside or outside the family, studies each proposal. Co-investing alongside trusted partners can add expertise. The family decides how much of its capital it wants tied up in such holdings.
How does a family office supervise the managers it hires?
Supervision runs on a cycle. The office collects reports, compares performance with the benchmark and the policy, checks that the manager stayed within its limits, reviews fees and meets the manager on a regular schedule. Each review ends with a decision: keep, adjust or replace.
Records make the cycle useful. The office keeps a file for each manager with the mandate, the meeting notes and the decisions taken. When a family member asks why a manager was hired or removed, the answer is in the file, and the discussion stays factual. The pillar guide on family offices places this routine in the wider operation of an office in Singapore.
How does a family office manage risk and liquidity across its investments?
Three exposures matter most to a family office: concentration, currency and liquidity. Concentration shows when one company, sector or country carries too much of the balance sheet. Currency shows when family spending is in one currency and assets are in another. Liquidity shows when cash needs arrive before the assets can be sold. Stress tests, such as a fall in one market or one currency, show the effect on the whole family.
The office measures each exposure on the consolidated balance sheet, since a single manager cannot see them. It sets a limit in the policy, reports against the limit and proposes action when a limit is close. A family in Singapore with assets in several currencies uses this view to plan spending and taxes in advance.
How can a family test its own investment set-up with a family office?
Begin with three questions. Does a written policy exist? Does one person see all the assets together? Is there a regular review of each manager? Three yes answers mean the function is working, and each no answer shows the next task to complete, which the family can handle one at a time. Progress on each task is visible within a quarter.
A free 30-minute pre-diagnostic with EQOS Asia can help a family sort those questions (EQOS Asia private page, 2026). This page is general information, not legal, tax or investment advice. Confirm any investment decision with a licensed adviser, as of October 2026.
See also in this guide
Frequently asked questions
Does a family office manage investments itself?
A family office usually decides the policy, the allocation and the choice of managers, and it delegates security selection and trading to outside managers. Some offices also run direct investments in companies or property with their own team and a separate approval path, as of October 2026.
What is an investment policy statement for a family?
An investment policy is a written document with the family goals, target allocation, limits, liquidity needs and review schedule. It gives the office and the managers the same rules, and it helps the family stay consistent when markets move sharply.
How does a family office pick a manager?
The office defines the need, builds a short list, studies the track record, the team, the process and the fees, and meets the managers. A clear mandate and a written decision complete the process. The office then supervises the manager on a regular schedule.
Can a family office give personal investment advice?
This page is general information, not legal, tax or investment advice. A family office that gives regulated advice needs the proper licence or an exemption, so a family should confirm the status of each provider with a licensed adviser before relying on any recommendation.
Test your knowledge
1. What does a family office usually keep for itself?
- Trading orders
- The asset allocation
- Stock research
Show the answer
The asset allocation.
2. What does the office give each outside manager?
- A clear mandate
- A blank cheque
- Family passwords
Show the answer
A clear mandate.
3. Which three exposures matter most?
- Rent, travel, art
- Colour, size, weight
- Concentration, currency, liquidity
Show the answer
Concentration, currency, liquidity.
4. How many steps does the review cycle have?
- 4
- 9
- 12
Show the answer
4.
5. Where is the record of why a manager was hired?
- In memory only
- In the manager file
- In a newspaper
Show the answer
In the manager file.
About the author
Stéphane Jambu
President, EQOS Forecast Asia
Stéphane Jambu leads EQOS Forecast Asia and works as a consultant in e-commerce, search visibility, and AI. LinkedIn profile
Sources: EQOS Asia private page (eqos-asia.com/private.html) and contact page (eqos-asia.com/contact.html), consulted on 23 October 2026. Page updated on 23 October 2026.