Identify two inappropriate themes in the partners’ set. Justify your response.

Karen Swanson and Gabriel Russell recently co-founded Green Savanah Securities, an asset management firm conducting various equity and fixed-income strategies. Swanson and Russell are formulating Green Savannah’s trade policy. During a meeting, they agree on an initial set of themes regarding trade policy formation:
• Theme 1: We should determine an optimal execution approach and apply that approach to each asset class managed.
• Theme 2: In aggregating trades for pooled accounts, any partially executed orders need to be allocated on a pro-rata basis.

• Theme 3: The principles behind our process to find a broker should be consistent across each asset class managed.
• Theme 4: To act in our clients’ best interests, we need to disclose all trade errors to them.