WMI Impact: The Family Office Journal - Issue 06
Welcome to ‘WMI Impact: The Family Office Journal’, Issue 6.
Building on the importance of governance discussed in Issue 5, we explore the connection between governance and investment strategies. Making sound and purposeful investment decisions is central to family office operations. As family offices professionalise, the role of investment committees also becomes increasingly crucial.
Anchoring this issue is the speech delivered by Mr Lim Chow Kiat, WMI Chairman and CEO of GIC Private Limited, at our Global-Asia Family Office (GFO) Summit in September 2024. His speech reflected the significant global shifts that are challenging established norms and creating uncertainty in the investment landscape. These shifts require family offices to evolve their investment decision-making processes in anticipation of a volatile and uncertain world.
Our next section consists of rich insights from two of our GFO Circle members. First, UBS examines the evolution of family office investment committees and what family offices need to take note of to build a resilient, capable and trustworthy committee. It is not uncommon that when the first-generation wealth creator makes all the decisions, governance may take a backseat, leading to unstructured investment management. However, as families grow, structured communication and decision-making becomes vital. Investment committees oversee strategies, prepare family members for leadership and transition, while encouraging collaboration and inclusivity.
Second, Schroders discusses alternative investments in the face of uncertainties. By diversifying beyond traditional equities and bonds, family offices can incorporate resilience into their portfolios while pursuing growth in volatile markets.
Rounding up the issue is a deep dive into tech venture investments and its potential as an alternative investment. In this piece, the WMI team shares key takeaways from some of the GFO Summit Masterclasses, focusing on how family offices can effectively leverage such investments to diversify their portfolios.
