CODE OF ETHICS
IFS FUND DISTRIBUTORS, INC.
IFS Fund Distributors, Inc. (the "Distributor") has adopted this Code of
Ethics effective as of July 1, 2000, in accordance with the provisions of Rule
17j-1 under the Investment Company Act of 1940, as amended (the "1940 Act").
Rule 17j-1 under the 1940 Act generally prohibits deceitful, fraudulent or
manipulative practices with respect to purchases or sales of securities held or
to be acquired by investment companies. While this Code is designed to prevent
violations of Rule 17j-1, it is possible to comply with the terms of this Code
and nevertheless violate the general prohibitions set forth in Rule 17j-1. Those
persons subject to this Code should, therefore, bear these general prohibitions
in mind at all times.
A. GENERAL STANDARDS OF ETHICAL CONDUCT
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Directors, officers and other Access Persons (as defined in this Code) have
a duty at all times to place the interests of the investment companies ("Funds")
for which the Distributor acts as the principal underwriter ahead of their own
interests.
All personal securities transactions of these individuals must be conducted
in compliance with this Code and in a manner that avoids any actual or potential
conflict of interest or any abuse of the individual's position of trust and
responsibility to the Distributor and the Funds.
All activities of these individuals also must be conducted in accordance
with the fundamental standard that they may not take any inappropriate advantage
of their positions with the Distributor.
B. STANDARDS OF CONDUCT FOR ACCESS PERSONS
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1. Prohibited Purchases and Sales When a Fund Trade Is Pending
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a. Prohibition
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If an Access Person knows that an investment advisor, on behalf
of any Fund, has placed a "buy" or "sell" order in a Covered Security
on a particular day, the Access Person may not purchase or sell,
directly or indirectly, the Covered Security or a Related Security on
the same day if:
o the Access Person has any direct or indirect beneficial
ownership in the Covered Security or a Related Security or
o the Access Person will acquire any direct or indirect
beneficial ownership in the Covered Security or a Related
Security by reason of the purchase.
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b. Exceptions
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This prohibition does not apply to:
o purchases or sales involving 500 or fewer shares of a
Covered Security that is included in the Standard & Poor's
500
o purchases or sales effected in any account over which the
Access Person has no direct or indirect influence or control
o purchases or sales that are non-volitional on the part of
the Access Person
o purchases that are part of an automatic dividend
reinvestment plan
o sales that are part of an automatic withdrawal plan
o purchases effected upon the exercise of rights issued by an
issuer pro rata to all holders of a class of its securities
to the extent the rights were acquired from the issuer
o sales of rights issued by an issuer pro rata to all holders
of a class of its securities to the extent the rights were
acquired from the issuer or
o purchases or sales that the Compliance Officer approves in
writing before the purchase or sale
c. Approval by the Compliance Officer
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To obtain approval for a specific transaction, an Access Person
should contact the Compliance Officer. The Access Person must disclose
to the Compliance Officer all factors potentially relevant to a
conflict of interest analysis that the Access Person is aware of,
including the existence of any substantial economic relationship
between his or her transaction and the Fund's transaction.
Generally the Compliance Officer will approve a transaction only
if:
o the transaction is only remotely potentially harmful to the
Fund because it would be very unlikely to affect a highly
institutional market
o the transaction is clearly not economically related to the
securities to be purchased or sold by an investment advisor
on behalf of the Fund or
o the transaction is unlikely to result in any of the abuses
described in Rule 17j-1.
2. Confidentiality
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An Access Person may not reveal to any other person (except in the
normal course of his or her duties on behalf of the Distributor) any
information about securities transactions of a Fund or securities under
consideration for purchase or sale by a Fund.
C. REPORTING
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1. Duplicate Confirmations and Statements
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Each Access Person must arrange for duplicate copies of broker trade
confirmations and periodic statements of his or her brokerage accounts to
be sent to the Compliance Officer.
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2. Holdings Reports
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a. What Information Must Be Included in a Holdings Reports?
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Each Access Person must submit written and signed reports
containing information about each Covered Security in which the Access
Person had any direct or indirect beneficial ownership ("Holdings
Reports").
Each Holdings Report must include the following information:
o title of each Covered Security in which the Access Person
had any direct or indirect beneficial ownership
o number of shares and/or principal amount of each Covered
Security in which the Access Person had any direct or
indirect beneficial ownership
o name of any broker, dealer or bank with whom the Access
Person maintained an account in which any securities were
held for the direct or indirect benefit of the Access Person
and
o date the Holdings Report is submitted by the Access Person
If an Access Person is not required to report any information on
a Holdings Report, the Access Person must submit a written and signed
statement to that effect to the Compliance Officer by the date on
which the Holdings Report is due.
b. When Must an Access Person Submit an Initial Holdings Report?
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Each Access Person must submit to the Compliance Officer an
Initial Holdings Report no later than 10 days after he or she becomes
an Access Person. The information included in the Initial Holdings
Report must reflect the Access Person's holdings as of the date he or
she became an Access Person.
c. When Must an Access Person Submit Annual Holdings Reports?
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Each Access Person must submit to the Compliance Officer an
Annual Holdings Report no later than January 30 of each year. The
information included in the Annual Holdings Report must reflect the
Access Person's holdings as of the immediately preceding December 31.
d. Are There Any Exceptions to These Reporting Requirements?
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An Access Person does not have to include in his or her Holdings
Reports information about the following securities or accounts:
o direct obligations of the government of the United States
o bankers' acceptances
o bank certificates of deposit
o commercial paper
o high quality short-term debt instruments including
repurchase agreements
o shares issued by open-end Funds
o securities held in any account over which the Access Person
has no direct or indirect influence or control and
o transactions effected for any account over which the Access
Person has no direct or indirect influence or control
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2. Quarterly Transaction Reports
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a. What Information Must Be Included in a Quarterly Transaction
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Report?
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Each Access Person must submit a report ("Quarterly Transaction
Report") containing information about:
o every transaction in a Covered Security during the quarter
and in which the Access Person had any direct or indirect
beneficial ownership and
o every account established by the Access Person in which any
securities were held during the quarter for the direct or
indirect benefit of the Access Person.
A Quarterly Transaction Report must include the following
information:
o date of each transaction in a Covered Security
o title of the Covered Security
o interest rate and maturity date of the Covered Security, if
applicable
o number of shares and/or principal amount of the Covered
Security
o nature of the transaction
o price of the Covered Security at which the transaction was
effected
o name of the broker, dealer or bank with or through which the
transaction was effected
o name of the broker, dealer or bank with whom the Access
Person established any new account
o date the account was established and
o date the Quarterly Transaction Report is submitted by the
Access Person
If an Access Person is not required to report any information on
a Quarterly Transaction Report, the Access Person must submit a
written and signed statement to that effect to the Compliance Officer
no later than 10 days after the end of the calendar quarter.
b. When Must an Access Person Submit a Quarterly Transaction Report?
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A Quarterly Transaction Report must be submitted to the
Compliance Officer no later than 10 days after the end of each
calendar quarter.
c. Are There Any Exceptions To These Requirements?
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o Exceptions for Certain Securities and Accounts
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An Access Person does not have to report transactions
involving the following securities or accounts:
o direct obligations of the government of the United
States
o bankers' acceptances
o bank certificates of deposit
o commercial paper
o high quality short-term debt instruments including
repurchase agreements
o shares issued by open-end Funds
o securities held in any account over which the Access
Person has no direct or indirect influence or control
and
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o transactions effected for any account over which the
Access Person has no direct or indirect influence or
control
If an Access Person does not make a Quarterly Transaction
Report because of this exception, the Access Person must
submit a written and signed statement to that effect to the
Compliance Officer no later than 10 days after the end of
the calendar quarter.
o Exceptions Based On Duplicate Confirmations
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In addition, an Access Person does not have to make a
Quarterly Transaction Report for a calendar quarter if:
o the report would duplicate information contained in
broker trade confirmations or account statements
received by the Compliance Officer no later than 10
days after the end of the calendar quarter and
o all of the required information is contained in the
broker trade confirmations or account statements.
If broker trade confirmations do not contain all of the
required information, the Access Person must include the
missing information in a Quarterly Transaction Report.
If an Access Person does not make a Quarterly Transaction
Report because of this exception, the Access Person must
submit a written and signed statement to that effect to the
Compliance Officer no later than 10 days after the end of
the calendar quarter.
D. COMPLIANCE OFFICER REVIEWS
--------------------------
In reviewing transactions, the Compliance Officer will take into account
the various exceptions included in this Code. Before making a determination that
an Access Person has violated this Code, the Compliance Officer will give the
Access Person an opportunity to supply additional information about the
transaction in question.
E. SANCTIONS
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The Board of Directors of the Distributor may impose sanctions on an Access
Person for violations of this Code as it deems appropriate. Sanctions could
include disgorgement of any profits realized by the Access Person as a result of
the violation, a letter of censure or suspension in the Access Person's
personnel file, or termination of the employment of the Access Person.
F. MISCELLANEOUS
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All reports of securities transactions and any other information reported
pursuant to this Code will be treated as confidential.
The Board of Directors of the Distributor may from time to time adopt
interpretations of this Code as it deems appropriate.
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G. DEFINITIONS
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"Access Person" means
o any director, officer or general partner of the Distributor who, in
the ordinary course of business, makes, participates in or obtains
information regarding the purchase or sale of Covered Securities by a
Fund or
o any director, officer or general partner of the Distributor whose
functions or duties in the ordinary course of business relate to the
making of any recommendations to a Fund regarding the purchase or sale
of Covered Securities
"Beneficial Ownership" is interpreted in the same manner as it would be
under Rule 16a-1(a)(2) promulgated under the Securities Exchange Act of
1934.
"Compliance Officer " means any person designated by the Distributor to
administer this Code or to review reports required by this Code.
"Control" has the same meaning as in Section 2(a)(9) of the 1940 Act.
"Covered Security" means a security as defined in Section 2(a)(36) of the
1940 Act (in effect, all securities), except that it does not include:
o direct obligations of the government of the United States
o bankers' acceptances
o bank certificates of deposit
o commercial paper
o high quality short-term debt instruments, including repurchase
agreements and
o shares issued by open-end Funds
"Fund" means any investment company registered under the 1940 Act for which
the Distributor serves as the principal underwriter.
"Purchase or sale of Covered Securities" includes, among other things, the
writing of an option to purchase or sell Covered Securities.
"Related Security" means:
o a security issued by the same issuer that issued the Covered Security
o a security issued by an issuer under common control with the issuer
that issued the Covered Security or
o a security that gives the holder any contractual right with respect to
the Covered Security, including options, warrants or other convertible
securities
