Understanding Client Ethical Investment Preferences

As a financial analyst employed at a reputable investment firm, you are approached by a client who is looking to invest in a hedge fund. The client is aware that hedge funds often charge high fees and have complex investment strategies. During your discussion, the client expresses a desire to pursue investments that are not only profitable but also ethical and socially responsible.

Your firm has a policy that requires all employees to act in the best interests of their clients and to ensure transparency in investment recommendations. You need to consider how you should proceed in this situation while upholding the CFA Institute's Code of Ethics and Standards of Professional Conduct, particularly regarding your responsibility to act in the best interests of your client.