When a manager is responsible for the portfolios of pension plans or trusts, the duty of loyalty is owed to the ________.

When a manager is responsible for the portfolios of pension plans or trusts, the duty of loyalty is owed to the ________.
A . beneficiaries
B . none of these answers
C . stockholders of the firm
D . investing public
E . entity who hires the manager
F . corporation
G . board of directors
H . manager’s supervisor(s)

Answer: A

Explanation:

The first step in fulfilling a fiduciary duty is to determine what the responsibility is and to who it is owed. Members should take particular care in determining the identity of the "client" to whom the duty of loyalty is owed. In the context of an investment manager managing the portfolios of pension plans or trusts, the client is not the person or entity who hires the manager but, rather, the beneficiaries of the plan or trust. The duty of loyalty is owed to the beneficiaries.