Loyalty to Clients in Asset Management Decisions

Hard Asset Manager Code Loyalty To Clients

As an asset manager, you are responsible for managing a significant portfolio for a high-net-worth client. Recently, you received a substantial offer from a private equity firm to invest some of your client's assets in a new venture fund. However, this investment could potentially conflict with the objectives and risk profile agreed upon with the client, who has specifically requested a conservative investment strategy focused on capital preservation.

In light of the Asset Manager Code, particularly the obligation of loyalty to clients, which action aligns best with ethical standards?

You decide to accept the investment opportunity, while also informing the client post-factum, since the potential gains could benefit them.

You thoroughly evaluate the investment opportunity and present it to the client, ensuring it aligns with their stated investment objectives before proceeding.

You decline the investment opportunity, citing the client's risk profile and investment strategy, thereby prioritizing their interests over the potential gains you could receive.

Hint

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