Explanation

Rose Jay, CFA, owes her duty of loyalty to the beneficiaries of the fund.

Key Points:

• Under CFA Institute Standards, investment professionals managing pension or retirement funds have a fiduciary duty to the ultimate beneficiaries of those funds.
• While the university president hired Jay, the duty of loyalty is owed to the plan participants and beneficiaries who will receive the retirement benefits.
• This principle is consistent with Standard III(A): Loyalty, Prudence, and Care, which requires members to act for the benefit of their clients and place clients' interests before their own.
• The beneficiaries are the ultimate clients who will benefit from the pension fund's performance, not the university or its president who hired the manager.