Which of the following constraints is a fiduciary not subject to when managing account assets?

A fiduciary, when managing account assets, must adhere to specific constraints that guide their decision-making process to ensure they act in the best interests of the beneficiaries. Among these constraints, the requirement of profit maximization is not one that fiduciaries are bound by.

While fiduciaries must certainly seek to achieve positive returns on investment, their primary duty is to act prudently and in accordance with the specific objectives outlined in the governing documents and the needs of the beneficiaries. Profit maximization suggests a relentless pursuit of the highest possible returns, which can sometimes conflict with a prudent approach that considers risk, liquidity needs, and the unique goals of the portfolio. For instance, a fiduciary might choose to invest in lower-yielding but safer investments to protect against volatility, rather than prioritizing immediate profits.

In contrast, the fiduciary is bound by the account objectives to ensure that the investments align with the specific goals set for the portfolio. They must also comply with the requirements of the governing instruments, which include trusts, wills, or other legal documents that dictate how assets should be managed. Additionally, fiduciaries are subject to prudent investment statutes, which obligate them to make informed decisions that a reasonable person would make under similar circumstances.

Thus, focusing on maximizing