how can fiduciary duties influence investment strategies 
fiduciary responsibilities can significantly shape investment strategies especially with the growing emphasis on ethical investing including environmental social and governance esg criteria fiduciaries such as financial advisors and fund managers must act in the best interests of their clients or beneficiaries this duty extends to considering long term risks and opportunities which increasingly involve ethical considerations for instance a fiduciary might assess a company s sustainability practices or the social impact of an investment to determine its alignment with a client s values or its potential for long term performance this approach not only seeks to align investments with ethical values but also to mitigate risks and identify prospects that could affect financial returns fulfilling their obligation to act in their clients best interests 