Navigating Client Loyalty Dilemmas in Asset Management

As an asset manager who is adhering to the Asset Manager Code, you are presented with an ethical dilemma involving the management of two client accounts. Client A is a longstanding client who has entrusted you with significant assets with the expectation of consistent performance and low risk. Conversely, Client B is a newer client with higher risk tolerance who is seeking aggressive growth strategies, which you believe could potentially jeopardize the investment outcomes of Client A's portfolio due to liquidity constraints on the asset class preferred by Client B.

The situation poses a challenge: a lucrative opportunity arises that would benefit Client B, but implementing this strategy may degrade the performance of Client A’s investments. As their asset manager, you are required to act in the best interests of your clients while simultaneously maintaining your obligation to remain loyal to both clients.

Discuss how you would navigate this dilemma in accordance with the principles of 'Loyalty to Clients' under the Asset Manager Code. In your response, emphasize the importance of communication, risk management, and prioritizing client interests.