Ethical Considerations in Implementing Proprietary Strategies

As a portfolio manager for a large investment firm, you are responsible for managing a variety of client portfolios, each with its own unique investment strategy and risk tolerance. During a recent market downturn, you received an internal communication regarding a proprietary trading strategy that the firm intends to implement, which has the potential for significant short-term gains. However, early adoption of this strategy could conflict with the long-term investment objectives of your clients.

You are aware that some clients may expect a higher level of transparency regarding the investment strategies being employed on their behalf. Furthermore, there is a concern that prioritizing the firm's immediate financial interests by adopting the new strategy may not be in line with the principles of loyalty and fiduciary responsibility towards your clients.

Discuss the ethical considerations involved in your decision-making process regarding the implementation of this proprietary strategy. In your response, cover the obligations of loyalty to clients as outlined in the Asset Manager Code, and explain how you would balance these obligations with the interests of your firm.