Which of the following principles is most likely understated in stewardship codes drafted by the fund management industry? The principle requiring investors to:
A.
regularly monitor investee companies.
B.
have a public policy regarding stewardship.
C.
manage their conflicts of interest regarding stewardship matters.
Stewardship codes drafted by fund managers typically emphasizemonitoringandpublic policy commitmentsbut oftenunderstate the importance of managing conflicts of interest. Conflicts of interest can arise when asset managers act on behalf of different clients with potentially conflicting priorities, making explicit policies and governance structures for handling these conflicts crucial to effective stewardship.
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