Do you need a Family Office, or just a family CIO?
- Robert Carson
- Jan 6
- 2 min read
What is the difference between the offices of the ultra high-net worth, and the offices of Australia’s high net worth families?
A question frequently surfaces among families when considering the management of their wealth: Is a full-fledged family office necessary, or could a Chief Investment Officer (CIO) suffice? As the founder of Canopy East, I've had the privilege of guiding Australian and New Zealand families through this decision for over two decades.
The role of a family CIO is primarily focused on investment strategy and portfolio management. They are tasked with developing and implementing long-term investment plans, overseeing asset allocation and risk management, analysing market trends and economic indicators, and evaluating and selecting investment managers or opportunities. This role is crucial for families seeking to preserve and grow their wealth across generations.
In contrast, a family office offers a more comprehensive suite of services. Beyond investment management, it typically encompasses tax and estate planning, philanthropic advising, family governance and education, succession planning, and even concierge services. At Canopy East, we've observed that this holistic approach can be invaluable for families with complex needs and substantial wealth.
The key differences between a family CIO and a family office lie in their scope, structure, level of customisation, cost, and the degree of control they offer. While a CIO focuses primarily on investments, a family office manages overall family wealth and affairs. Structurally, a CIO can be a standalone role or part of a lean team, whereas a family office is a full organisational structure with multiple professionals. Both offer tailored approaches, but a family office provides broader customisation across various aspects of wealth management. From a cost perspective, hiring a CIO is generally more cost-effective than establishing a full family office. In terms of control, a CIO provides direct oversight of investment decisions, while a family office offers comprehensive control over various family affairs.
The decision between a family CIO and a full family office depends on several factors, including the family's wealth level, complexity of needs, and desired level of control over financial affairs. At Canopy East, we specialise in navigating these complexities, understanding that each family's journey is unique and requires a tailored approach.
Our approach at Canopy East encompasses a wide range of services, including Family Wealth Strategy, Family Governance, Accounting & Tax Strategy, Philanthropy, Family Education and Mentoring, and Family Business and Enterprise Strategy. We believe in fostering open dialogue and committing to our clients' long-term success. Our expertise in coordinating and interpreting advice from various professional service advisers has proven invaluable to the families we serve.
Aligning your decision to take on a Chief Investment Officer, or establishing your Family Office is the key to fulfilling your family's long-term financial goals and values. At Canopy East, we're dedicated to guiding you through this decision and helping you navigate the complex world of family wealth management.
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