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Conflict of Interest: Luca Deporte is the Senior Portfolio Strategist for the Republic of Benga’s sovereign wealth fund - The Zouk Fund

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Conflict of Interest: Luca Deporte is the Senior Portfolio Strategist for the Republic of Benga’s sovereign wealth fund - The Zouk Fund. The fund employs external specialist asset managers to manage various portions of the Zouk fund mandate in the category of developed market equity. Earlier in the week Luca received a phone call from Alex, a former colleague from Business School. Alex is now a sell-side analyst with a reputable major North American asset management firm and is in the process of expanding his clientele and is keen on landing the Zouk fund as a potential lucrative client. During his conversation with Luca, Alex introduces the products and services available and the prospect of gaining a share of the externally managed portfolios. The sales call is timely as Luca was already evaluating existing and potential managers for the developed market equity portion of the fund. Further, Luca’s research reveals that Alex’s employer’s products are generally aligned with the Zouk fund’s mandate. Luca decides to give Alex a chance and includes Alex’s firm as a recommended external manager for the developed market equity. However the report does not mention his familiarity with the sales analyst-Alex. Consider the Following questions in your post \

1. What is an ethical dilemma in this case?
2. What are the employer’s duties?
3. In an effort to avoid conflict the employer can find alternative solutions, which can be reconsidered, and new alternative solutions.                                                                                                      
4. What action do you think is required by Luca if any? In a response no of between 250-300 words indicate how you would have approached this dilemma differently from an ethical perspective. What would your actions be as the employee? What standards would you use? K