PWM: Reinventing the investment boss as architect, diplomat and steward of capital
When defining the parameters of portfolio management during the 2020s, it is vital to reshape the role of chief investment officers well beyond plotting risk and return charts
Investment skill is no longer enough to characterise a successful wealth manager. The most effective chief investment officers pair market expertise with diplomacy and emotional intelligence, acting as both architect and adviser.
This role is unlike any other. It sits at the intersection of capital, governance and family dynamics — part strategist, part confidant, part cultural anchor.
So why is the CIO role so different today? Its technical responsibilities — setting strategy, managing risk, overseeing implementation — are well understood. What is less visible, and far more decisive, is the personal dimension: the ability to navigate personalities, earn trust and hold conviction with diplomacy.
First-generation family offices often reflect the founder’s entrepreneurial drive: fast-moving, instinctive and light on governance. Multi-generation offices lean towards institutional processes and formal boards.
The CIO must calibrate their approach to each environment. As one adviser tells me: “Is the family better served by a 32-page weekly bulletin, or by a two-sentence note that simply reassures them all is well?”
Knowing which to send is an art form that transcends investment skill. Technical mastery is assumed. Emotional intelligence is critical. A good CIO reads the market; a great one reads the room. They understand unspoken motivations — a family principal’s appetite for control, the legacy pressures of the next generation, the subtle politics of siblings or advisers.
A good CIO reads the market; a great one reads the room
The best CIOs learn to “disagree in a loving way”: challenging conviction without bruising pride. They build trust through integrity, not constant agreement.
Humility matters too. Influence is earned over time, not granted by title. Mandate clarity and alignment is key. Few roles suffer more from ambiguity than the CIO. Mandates can be vague, decision rights blurred and accountability informal. Clarity is not bureaucracy; it is liberation. It defines what the CIO can decide alone, what goes to the investment committee and what sits with the principal.
It outlines risk parameters and liquidity expectations. When the rules are explicit, both sides are protected.
Alignment of incentives is equally critical. Families often hesitate to offer in-house professionals the same terms they grant external managers. Best practice blends salary, performance bonuses and carry in co-investment opportunities, where applicable. When CIOs invest alongside the family, time horizons align and stewardship deepens.
Freedom with responsibility
Unlike institutional investors, family office CIOs answer to one client — the family. There are no external shareholders or quarterly fundraising calls. The autonomy is liberating, but accountability is absolute. Every win or loss is personal.
But freedom demands structure: transparent processes, disciplined documentation and regular reflection on past decisions. The CIO, acting as cultural anchor and educator, shapes not only investment results but also the culture surrounding them.
Their tone defines how disagreement is handled, how risk is framed and how transparency is valued. In many families, they are also the bridge to the next generation — explaining concepts, inviting participation and demystifying decision-making.
The bottom line is that the CIO role is not about chasing markets. It is about creating an environment where decisions are made wisely, consistently and in alignment with the family’s purpose. Supported by clear mandate, appropriate resources and governance that protects both autonomy and accountability, the CIO becomes the steward of capital — and of trust.
Sally Tennant, founder of Acorn Capital Advisers and formerly CEO of Kleinwort Benson, Lombard Odier (UK) and Schroders Private Banking
This article was published in Professional Wealth Management