What is one of the primary ethical obligations of investment managers?

Investment managers have a fundamental ethical obligation to act in the clients' best interests. This principle is rooted in fiduciary duty, which signifies that an investment manager must prioritize the financial well-being and objectives of their clients above their own interests or those of their company. By adhering to this obligation, investment managers help build trust and long-term relationships with their clients and ensure that their clients receive appropriate advice, investment strategies, and management aligned with their financial goals.

Promoting personal financial interests or prioritizing company profits undermines this fiduciary relationship and can lead to conflicts of interest that jeopardize the trust clients place in their investment managers. Confidentiality of client information is also essential, but it is a separate ethical obligation that does not inherently encompass the broader commitment to act in the best interests of clients. Therefore, the commitment to prioritize clients' interests is essential for maintaining ethical standards in investment management.