Investors have long been instructed to diversify their holdings. Studies consistently show that strategic asset allocation plays the largest role in generating portfolio returns. By including multiple asset classes in a portfolio, investors can, of course, often enhance returns and reduce risk. Today, many investors are taking diversification to a step further. They seek variation in the advice they receive. Using multiple advisers will certainly bring a diversity of perspective. However, this process introduces a number of complexities.

For high net worth families using multiple investment advisers, many describe a family chief investment officer as a key advisory role serving as CIO and acting as a professional watchdog and co-fiduciary. By monitoring the overall portfolio, the CIO role performed by TAO Family Office can address the complexities and keeps a diligent watch over the aggregate portfolio.

We are constantly making tactical investment allocations for certain parts of the overall portfolio, by investing in value added products for capital preservation and income generation. In parallel, we are maintaining a view of how the disparate parts are affecting each other; we can help families make critical decisions for overall asset allocation.