Most family offices now run periodic reviews, an investment committee and a formal due-diligence process. Fewer have a formal risk-management framework or third-party reporting software, and many say they are still building them. Larger offices and those in Europe, the Middle East and Africa report the most formal structures.
Which governance practices do family offices have in place?
Citi Wealth asked 351 family offices which investment-governance practices they have adopted. Periodic performance review and rebalancing is the most common, at 77%. Formal risk and technology practices are the least common, though a large share of offices report work in progress. [1]
| Practice | In place | Working on it | No |
|---|---|---|---|
| Periodic review of performance and rebalancing | 77% | 14% | 9% |
| Investment committee | 63% | 13% | 24% |
| Robust due-diligence process | 60% | 23% | 16% |
| Investment policy statement (IPS) | 55% | 21% | 23% |
| Risk-management framework | 49% | 31% | 20% |
| Third-party software for consolidating reporting | 47% | 25% | 28% |
Source: Citi Wealth, 2026/27 Global Family Office Report, p. 94. Self-reported; rows may not sum to 100% because of rounding.
Three practices rose against the 2025 survey: investment committees from 53% to 63%, robust due-diligence processes from 54% to 60% and investment policy statements from 45% to 55%. The comparisons are between separate survey rounds, not the same offices tracked over time. [1]
How does governance differ by office size?
Larger offices report more formal structures in almost every category. The gap is widest for due diligence and reporting software. [1]
| Practice | Below $500m | Above $500m |
|---|---|---|
| Periodic review and rebalancing | 78% | 76% |
| Investment committee | 55% | 69% |
| Robust due-diligence process | 50% | 68% |
| Investment policy statement | 48% | 60% |
| Risk-management framework | 44% | 53% |
| Third-party reporting software | 37% | 55% |
Source: Citi Wealth, 2026/27 Global Family Office Report, p. 95. Shares of respondents in each size group.
Size is an imperfect proxy for capability. Our article inside the family-office investment portfolio covers staffing and asset mix by office size.
How does governance differ by region?
Offices in Europe, the Middle East and Africa report the highest adoption of periodic review (88%), risk-management frameworks (65%) and, level with Latin America and North America, reporting software (54%). North America leads on robust due-diligence processes at 67%. Asia-Pacific offices report lower adoption in most categories, with many working on implementation. [1]
| Practice | APAC | EMEA | LatAm | N. America |
|---|---|---|---|---|
| Periodic review and rebalancing | 55% | 88% | 86% | 78% |
| Investment committee | 60% | 65% | 68% | 62% |
| Robust due-diligence process | 54% | 61% | 52% | 67% |
| Investment policy statement | 63% | 57% | 55% | 50% |
| Risk-management framework | 42% | 65% | 48% | 45% |
| Third-party reporting software | 23% | 54% | 54% | 54% |
Source: Citi Wealth, 2026/27 Global Family Office Report, p. 96. Region is the respondent's office location.
Where do family offices plan to use more external advisers?
Most plan no change. Across every service category, the most common answer about reliance on external advisers over the next five years is to keep it unchanged, at about 60%. Where offices expect to rely more on outside providers, tax and financial planning leads. [1]
| Function | Increase reliance |
|---|---|
| Tax and financial planning | 29% |
| Wealth and estate planning | 26% |
| Investment management | 25% |
| Accounting and reporting | 24% |
| Risk management | 21% |
| Family unity and continuity | 18% |
| Philanthropy | 15% |
| Lifestyle management | 7% |
Source: Citi Wealth, 2026/27 Global Family Office Report, p. 97. Shares of respondents; expectations, not contracted services.
What do the figures mean for a manager review?
An office with an investment committee, a policy statement and a formal due-diligence process typically reviews a manager against written criteria and documented evidence. Offices still building those processes may rely more on individual judgement and outside advisers.
For a manager or an introducer, it helps to know early which applies:
- Does the office have a policy statement that sets eligible strategies, vehicles or liquidity terms?
- Who approves an allocation: an individual principal, a committee or an external adviser?
- What documents does its due-diligence process require, and at what stage?
- Which risk measures and reporting formats does the office already use?
Our guides on evaluating a CTA track record and evaluating an emerging hedge-fund manager cover the evidence a formal review tends to ask for.
What do the figures not show?
The survey records whether a practice is in place, not how well it works. A policy statement or committee on paper does not establish the quality of decisions. Respondents are Citi Wealth clients and summit participants, so the figures describe that population rather than all family offices. [1]
Gnosis introduces institutional allocators to investment managers regulated in their home jurisdiction and evaluates those managers through Allocator IQ (AIQ). It does not advise on allocations, manage assets, hold custody or execute orders. Browse the manager universe.
Frequently asked questions
How many family offices have an investment committee?
63% in Citi Wealth's 2026/27 Global Family Office Report, up from 53% in the 2025 survey. Larger offices report 69% and smaller offices 55%.
Do family offices have an investment policy statement?
55% report a formal investment policy statement, up from 45% the previous year. A further 21% are working on one.
How many family offices have a formal risk-management framework?
49% have one in place and 31% are working on one. Adoption is highest in Europe, the Middle East and Africa at 65%.
Are family offices outsourcing more?
Most expect no change: about 60% plan to keep reliance on external advisers unchanged in each category. Tax and financial planning has the largest expected increase, at 29%.
For institutional investors. This article provides general information, not investment, tax or legal advice or a recommendation of any manager, strategy or structure. Survey figures describe the stated population and period and do not indicate future allocations or results. Past performance is not necessarily indicative of future results.
Sources
- Citi Wealth, 2026/27 Global Family Office Report. Survey initiated at the June 2026 Family Office Leadership Summit and distributed to Citi Wealth family-office clients: 351 respondents across 41 countries. Self-reported practices; response rate and weighting not disclosed. Investment governance and professionalisation, pp. 94-96; use of external advisers, p. 97.