What principle must fiduciaries adhere to when determining investment strategies for clients?

The principle that fiduciaries must adhere to when determining investment strategies for clients is focused on minimizing risk while achieving reasonable returns. This approach reflects the fiduciary duty to act in the best interest of the client, balancing the potential for gains with the need to protect the client's capital. Fiduciaries must consider the client's financial goals, risk tolerance, and overall investment profile, ensuring that investment strategies align with these factors.

By minimizing risk, fiduciaries can help to prevent significant losses for their clients, which is especially crucial in volatile markets. Achieving reasonable returns complements this risk management strategy, ensuring that clients can grow their investments without exposing them to undue risk. This principle is consistent with prudent investment practices and reflects a responsible approach to managing client assets.