Integrating Family Dynamics and Governance in Strategic Asset Allocation

Abstract

The authors start with a recap of advances in the field of strategic asset allocation for individuals and offer two hypothetical family examples to illustrate the idea that the latest current iteration on the theme of goal-based strategic asset allocation is still incomplete. They then introduce the idea that family dynamics and governance play an important role in helping advisers decipher circumstances when there may be more than one client or where the roles of individual family members might be multiple and partially hidden. These two circumstances indeed would both contribute to making a traditional process hard, if not impossible, to apply, while questions and matrices developed specifically to address family dynamics and governance issues can provide the needed clarification.