Colleen O'Neil, CFA, manages a private investment fund with a balanced global investmentmandate. Her clients insist that her personal investment portfolio replicate the investments withintheir portfolios to assure them she is willing to put her own money at risk. By undertaking which of the following simultaneous investment actions for her own portfolio would O'Neil most likely be inviolation of Standard VI(B): Priority of Transactions?
Standard VI(B): Priority of Transactions dictates members and candidates give their clients and employer priority when making personal investment transactions. Even when clients allow orinsist the manager invest alongside them, the manager's transactions must never adversely affect the interests of the clients. A popular or “hot” IPO in a frontier market is likely to beoversub cribed. In such cases, Standard VI(B) dictates that the manager should not participate in this event to better ensure clients will have a higher probability of getting their full subscription allotment, even though clients have allowed or dictated that she participate alongside them.