KIT COLE INVESTMENT TRUST
KIT COLE INVESTMENT ADVISORY SERVICES, INC.
JOINT CODE OF ETHICS
SECTION I STATEMENT OF GENERAL FIDUCIARY PRINCIPLES
This Code of Ethics (the "Code") has been approved by the Board of
Trustees of Kit Cole Investment Trust (the "Trust"), including a majority of the
Trustees who are not "interested persons" of the Trust ("Independent Trustees"),
as defined by the Investment Company Act of 1940 (the "1940 Act").
The Code has been adopted by the Trust and Kit Cole Investment Advisory
Services, Inc. (the "Advisor"), the investment advisor of the Trust, in
compliance with Rule 17j-1 under the 1940 Act. The purpose of the Code is to
establish standards and procedures for the detection and prevention of
activities by which persons having knowledge of the investments and investment
intentions of the Trust may abuse their fiduciary duties to the Trust and
otherwise to deal with the types of conflict of interest situations to which
Rule 17j-1 is addressed.
The Code is based on the principle that the trustees and officers of
the Trust and the personnel of the Advisor who provide services to the Trust,
owe a fiduciary duty to the Trust to conduct their personal securities
transactions in a manner that does not interfere with the Trust's transactions
or otherwise take unfair advantage of their relationship with the Trust. All
such trustees, officers and personnel of the Trust and the Advisor ("Trust
Employees") are expected to adhere to this general principle as well as to
comply with all of the specific provisions of this Code that are applicable to
them.
Technical compliance with the Code will not automatically insulate any
Trust Employee from scrutiny of transactions that show a pattern of compromise
or abuse of the individual's fiduciary duties to the Trust. Accordingly, all
Trust Employees must seek to avoid any actual or potential conflicts between
their personal interests and the interests of the Trust and its shareholders. In
sum, all Trust Employees shall place the interests of the Trust before their own
personal interests.
Every Trust Employee must read and retain this Code of Ethics, and
should recognize that he or she is subject to its provisions.
The Trust and the Advisor shall use reasonable diligence and institute
procedures reasonably necessary to prevent violations of this Code.
SECTION II DEFINITIONS
(A) "Access Person" means any trustee, director, general partner, officer, or
Advisory Person (as defined below) of the Trust or of the Advisor.
(B) An "Advisory Person" of the Trust or of the Advisor means: (i) any employee
of the Trust or the Advisor, or of any company in a control relationship to the
Trust or the Advisor, who in connection with his or her regular functions or
duties makes, participates in, or obtains current information regarding the
purchase or sale of any Security by the Trust, or whose functions relate to the
making of any recommendations with respect to such purchases or sales; and (ii)
any natural person in a control relationship to the Trust or the Advisor who
obtains information concerning current recommendations made to the Trust with
regard to the purchase or sale of any current Security.
(C) "Beneficial Ownership" has the meaning set forth in paragraph (a)(2) of Rule
16a-1 under the Securities Exchange Act of 1934, except that the determination
shall apply to all securities which an Access Person has or acquires. For
purposes of this Code, Beneficial ownership shall be deemed to include, but not
be limited to, any interest by which an Access Person or any member of his or
her immediate family (i.e., a person who is related by blood or marriage to, and
who is living in the same household as, the Access Person) can directly or
indirectly derive a monetary or other economic benefit from the purchase, sale
(or other acquisition or disposition) or ownership of a Security, including for
this purpose any such interest that arises as a result of: a general partnership
interest in a general or limited partnership; an interest in a trust; a right to
dividends that is separated or separable from the underlying Security; a right
to acquire equity Securities through the exercise or conversion of any
derivative Security (whether or not presently exercisable); and a performance
related advisory fee (other than an asset based fee).1
(D) "Compliance Officer" means the chief compliance officer of the Advisor.
(E) "Control" shall have the same meaning as that set forth in Section 2(a)(9)
of the 1940 Act.
(F) "Covered Security" means any Security (as defined below) other than a
Security that is: (i) a direct obligation of the Government of the United
States; (ii) a banker's acceptance, certificate of deposit, commercial paper, or
high quality short-term debt security, including a repurchase agreement; or
(iii) a share of an open-end investment company registered under the 1940 Act.
(G) "Independent Trustee" means a trustee of the Trust who is not an "interested
person" of the Trust within the meaning of Section 2(a)(19) of the 1940 Act.
(H) "Initial Public Offering" means an offering of securities registered under
the Securities Act of 1933, the issuer of which, immediately before the
registration, was not subject to the reporting requirements of Section 13 or
Section 15(d) of the Securities Exchange Act of 1934.
(I) "Investment Personnel" means: (i) any employee of the Trust or the Advisor
(or of any company controlling, controlled by or under common control with the
Trust or the Advisor) who, in connection with his or her regular functions or
duties, makes or participates in making recommendations regarding the purchase
or sale of Securities by the Trust; and (ii) any natural person who controls the
Trust or the Advisor and who obtains information concerning current
recommendations made regarding the purchase or sale of Securities by the Trust.
(J) "Limited Offering" means an offering of Securities that is exempt from
registration under the Securities Act of 1933 pursuant to Section 4(2) or
Section 4(6) thereof or Rule 504, Rule 505 or Rule 506 thereunder.
(K) "Security" includes all stock, debt obligations and other securities and
similar instruments of whatever kind, including any warrant or option to acquire
or sell a security. References to a Security in this Code (e.g., a prohibition
or requirement applicable to the purchase or sale of a Security) shall be deemed
to refer to and to include any warrant for, option in, or Security immediately
convertible into that Security, and shall also include any instrument (whether
or not such instrument itself is a Security) which has an investment return or
value that is based, in whole or part, on that Security (collectively,
"Derivatives"). Therefore, except as otherwise specifically provided by this
Code: (i) any prohibition or requirement of this Code applicable to the purchase
or sale of a Security shall also be applicable to the purchase or sale of a
Derivative relating to that Security; and (ii) any prohibition or requirement of
this Code applicable to the purchase or sale of a Derivative shall also be
applicable to the purchase or sale of a Security relating to that Derivative.
(L) A Security is "being considered for purchase or sale" when a recommendation
to purchase or sell that Security has been made or communicated and, with
respect to the person making the recommendation, when such person seriously
considers making such a recommendation.
(M) "Trust Employee" means any person who is a trustee, director, officer or
employee of the Trust or the Advisor.
SECTION III OBJECTIVE AND GENERAL PROHIBITIONS
Although certain provisions of this Code apply only to Access Persons,
all Trust Employees must recognize that they are expected to conduct their
personal activities in accordance with the standards set forth in Sections I,
III and VII of this Code. Therefore, a Trust Employee may not engage in any
investment transaction under circumstances where the Trust Employee benefits
from or interferes with the purchase or sale of investments by the Trust. In
addition, Trust Employees may not use information concerning the investments or
investment intentions of the Trust or their ability to influence such investment
intentions, for personal gain or in a manner detrimental to the interests of the
Trust. Disclosure by a Trust Employee of such information to any person outside
of the course or scope of the responsibilities of the Trust Employee to the
Trust and the Advisor will be deemed to be a violation of this prohibition.
Trust Employees may not engage in conduct which is deceitful,
fraudulent, or manipulative, or which involves false or misleading statements,
in connection with the purchase or sale of investments by the Trust. In this
regard, Trust Employees should recognize that Rule 17j-1 makes it unlawful for
any affiliated person or principal underwriter of the Trust, or any affiliated
person of such a person, directly or indirectly, in connection with the purchase
or sale of a Security held or to be acquired by the investment company to:
(i) employ any device, scheme or artifice to defraud the Trust;
(ii) make any untrue statement of a material fact to the Trust
or omit to state to the Trust a material fact necessary in
order to make the statements made, in light of the
circumstances under which they are made, not misleading;
(iii) engage in any act, practice, or course of business which
operates or would operate as a fraud or deceit upon the
Trust; or
(iv) engage in any manipulative practice with respect to the Trust.
Trust Employees should also recognize that a violation of this Code or
of Rule 17j-1 may result in the imposition of: (1) sanctions as provided by
Section IX below; or (2) the imposition of administrative, civil and, in certain
cases, criminal fines, sanctions or penalties.
SECTION IV PROHIBITED TRANSACTIONS2
(A) Investment Personnel may not purchase or otherwise acquire direct or
indirect Beneficial Ownership of any Covered Security in an Initial Public
Offering or a Limited Offering unless he or she obtains pre-clearance pursuant
to Section V and reports to the Trust the information described in Section
VI of this Code.
(B) An Access Person may not purchase or otherwise acquire direct or indirect
Beneficial Ownership of any Covered Security, and may not sell or otherwise
dispose of any Covered Security in which he or she has direct or indirect
Beneficial Ownership, if he or she knows or should know at the time of entering
into the transaction that: (1) the Trust has purchased or sold the Covered
Security within the last 5 calendar days, or is purchasing or selling or is
going to purchase or sell the Covered Security in the next 5 calendar days; or
(2) the Advisor has within the last 5 calendar days considered purchasing or
selling the Covered Security for the Trust or is considering purchasing or
selling the Covered Security for the Trust within the next 5 calendar days,
unless such Access Person:
(i) obtains pre-clearance of such transaction pursuant to Section V; and
(ii) reports to the Trust the information described in Section VI of this
Code.
For purposes of administering this Code, Access Persons who are Advisory Persons
shall be presumed to have the requisite knowledge of the Trust's transactions so
as to require pre-clearance, regardless of whether such persons actually have
such knowledge. Accordingly, all Advisory Persons shall obtain pre-clearance of
all transactions in Covered Securities in accordance with this Section IV(B)
except in the case of a transaction as to which one of the exceptions from
pre-clearance set forth in Section IV(C) below applies.
Because investment recommendations and decisions made for the Trust are made by
persons who are associated with the Advisor, Access Persons who are not
associated with the Advisor will, in the absence of evidence to the contrary, be
presumed not to have the requisite knowledge of the Trust's transactions so as
to generally require pre-clearance of transactions. Accordingly, Access Persons
who are Independent Trustees shall not be required to obtain pre-clearance of a
transaction unless at the time of the transaction they have actual
knowledge of the matters described in (B) above.
(C) The prohibitions of this Section IV and the preclearance requirements of
Section V do not apply to:
(1) Purchases that are made by reinvesting cash dividends pursuant to an
automatic dividend reinvestment program ("DRIP") (however, this exception does
not apply to optional cash purchases pursuant to a DRIP);
(2) Purchases of rights issued by an issuer pro rata to all holders of a
class of its Securities, if such rights are acquired from such issuer, and the
exercise of such rights;
(3) Involuntary (i.e., non-volitional) purchases, sales and transfers of
Securities;
(4) Transactions in exchange traded futures contracts;
(5) Transactions in common stock of large capitalization companies
(companies that comprise the S&P 500 Index), if the amount of the transaction or
a series of related transactions is less than $10,000 or 100 shares;
(6) Transactions in an account over which the Access Person does not
exercise, directly or indirectly, any influence or control; provided, however,
that such influence or control shall be presumed to exist in the case of the
account of an immediate family member of the Access Person who lives in the same
household as the Access Person, absent a written determination by the Compliance
Officer to the contrary; and
(7) Transactions in Securities that are not permissible investments for the
Trust, other than securities purchased or sold in an Initial Public Offering or
Limited Offering.
SECTION V PRE-CLEARANCE PROCEDURES
(A) OBTAINING PRE-CLEARANCE.
Pre-clearance of a personal transaction in a Covered Security required to be
approved pursuant to Section IV above must be obtained from the Compliance
Officer or a person who has been authorized by the Compliance Officer to
pre-clear transactions. Each of these persons is referred to in this Code as a
"Clearing Officer." A Clearing Officer seeking pre-clearance with respect to his
or her own transaction shall obtain such pre-clearance from another Clearing
Officer.
(B) TIME OF CLEARANCE.
(1) An Access Person may pre-clear trades only in cases where such person
has a present intention to effect a transaction in the Security for which
pre-clearance is sought. It is not appropriate for an Access Person to obtain a
general or open-ended pre-clearance to cover the eventuality that he or she may
buy or sell a Security at some future time depending upon market developments.
Consistent with the foregoing, an Access Person may not simultaneously request
pre-clearance to buy and sell the same Security.
(2) Pre-clearance of a trade shall be valid and in effect only for a period
of 72 hours from the time pre-clearance is given; provided, however, that a
pre-clearance expires upon the person becoming aware of facts or circumstances
that would prevent a proposed trade from being pre-cleared were such facts or
circumstances made known to a Clearing Officer. Accordingly, if an Access Person
becomes aware of new or changed facts or circumstances that give rise to a
question as to whether pre-clearance could be obtained if a Clearing Officer was
aware of such facts or circumstances, the person shall be required to so advise
a Clearing Officer before proceeding with such transaction.
(C) FORM.
Pre-clearance must be obtained in writing by completing and signing the form
attached as Schedule A, and obtaining the signature of a Clearing Officer. If an
Access Person has responsibility regarding the determination by the Advisor of
Covered Securities to be purchased or sold for the Trust and is requesting
approval to purchase or sell a Covered Security that is owned by the Trust or is
purchasing a Covered Security that is a permissible investment for the Trust,
but has not purchased such Covered Security for the Trust, the Access Person
shall inform the Clearing Officer of that fact at the time pre-clearance to
purchase or sell the Covered Security is sought.
(D) FILING.
Copies of all completed pre-clearance forms, with the required signatures, shall
be retained by the Compliance Officer.
(E) FACTORS CONSIDERED IN PRE-CLEARANCE OF PERSONAL TRANSACTIONS.
A Clearing Officer may refuse to grant pre-clearance of a personal transaction
in his or her sole discretion without being required to specify any reason for
the refusal. Generally, a Clearing Officer will consider the following factors
in determining whether or not to pre-clear a proposed
transaction:
(1) Whether the amount or nature of the transaction or person making it is
likely to affect the price or market for the Security; and
(2) Whether the person making the proposed purchase or sale is likely to
benefit from purchases or sales being made or being considered on behalf of the
Trust; and
(3) Whether the transaction is likely to adversely affect the Trust.
(F) MONITORING OF PERSONAL TRANSACTIONS AFTER PRE-CLEARANCE.
After pre-clearance is given to an Access Person, the Compliance Officer shall
periodically monitor each Access Person's transactions to ascertain whether
pre-cleared transactions have been executed within 72 hours and whether such
transactions were executed in the specified amounts.
SECTION VI CERTIFICATIONS AND REPORTS BY ACCESS PERSONS3
(A) INITIAL CERTIFICATIONS AND INITIAL HOLDINGS REPORTS
Within 10 days after a person becomes an Access Person, except as provided in
Section VI (D), such person shall complete and submit to the Compliance
Officer an Initial Certification and Holdings Report on the form attached as
Schedule C.
(B) QUARTERLY TRANSACTION REPORTS
(1) Within 10 days after the end of each calendar quarter, each Access
Person shall make a written report to the Compliance Officer of all transactions
in Covered Securities occurring in the quarter in which he or she had any direct
or indirect Beneficial Ownership. Such report is hereinafter called a "Quarterly
Transaction Report." Such report is hereinafter called a "Quarterly Transaction
Report."
(2) Except as provided in Section VI (D), a Quarterly Transaction Report
shall be on the form attached as Schedule B and must contain the following
information with respect to each reportable transaction:
(a) Date and nature of the transaction (purchase, sale or any other type of
acquisition or disposition);
(b) Title, number of shares, interest rate and maturity (if applicable) or
principal amount of each Covered Security and the price at which the
transaction was effected; and
(c) Name of the broker, dealer or bank with or through whom the transaction
was effected.
(3) A Quarterly Transaction Report may contain a statement that the report
is not to be construed as an admission that the person making it has or had any
direct or indirect Beneficial Ownership of any Security to which the report
relates.
(C) Annual Certifications and Annual Holdings Reports Annually, by January 30 of
each year, except as provided in Section VI(D), each Access Person shall
complete and submit to the Compliance Officer an Annual Certification and
Holdings Report on the form attached as Schedule D.
(D) Exceptions from Reporting Requirements
(1) Transactions in an account over which the Access Person does not
exercise, directly or indirectly, any influence or control provided, however,
that such influence or control shall be presumed to exist in the case of the
account of an immediate family member of the Access Person who lives in the
same household as the Access Person, absent a written determination by the
Compliance Officer to the contrary.
(2) Notwithstanding the quarterly reporting requirement set forth in
Section VI(B), an Independent Trustee is not required to file a Quarterly
Transaction Report unless he or she was actually aware of the Trust's trading
activity at any time during the 5 day period immediately preceding or after such
Independent Trustee engaged in a Securities transaction.
(3) Independent Trustees are not required to file Initial Holdings Reports
or Annual Holdings Reports.
(4) In lieu of submitting a Quarterly Transaction Report, an Access Person
may arrange for the Compliance Officer to be sent duplicate confirmations and
statements for accounts through which transactions in Covered Securities in
which the Access Person has any direct or indirect Beneficial Ownership are
effected. However, a Quarterly Transaction Report must be submitted for any
quarter during which the Access Person has acquired or disposed of direct or
indirect Beneficial Ownership of any Covered Security if such transaction was
(5) not in an account for which duplicate confirmations and statements are
being sent. Access Persons who are associated persons of the Advisor and who
provide duplicate confirmations and statements for their accounts to the Advisor
will be deemed to satisfy the requirement to submit a Quarterly Transaction
Report if such confirmations and statements reflect all transactions in Covered
Securities required to be reported by them hereunder. The Advisor shall deliver
such confirmations and statements or analysis thereof to permit the Compliance
Officer to ascertain compliance with this Code. Any Access Person relying on
this Section VI(D)(3) shall be required to certify as to the identity of all
accounts through which Covered Securities in which they have direct or indirect
beneficial Ownership are purchased, sold and held.
(6) An Access person need not make a separate transaction report under this
Code where the report would duplicate information recorded by the Advisor
pursuant to Rule 204-2(a)(12) under the Investment Advisers Act of 1940
(E) It is the responsibility of each Access Person to take the initiative to
comply with the requirements of this Section VI. Any effort by the Trust or by
the Advisor to facilitate the reporting process does not change or alter that
responsibility.
SECTION VII ADDITIONAL PROHIBITIONS
(A) CONFIDENTIALITY OF TRUST TRANSACTIONS.
Until disclosed in a public report to shareholders or to the SEC in the normal
course, all information concerning the Securities "being considered for purchase
or sale" by the Trust shall be kept confidential by all Trust Employees and
disclosed by them only on a "need to know" basis. It shall be the responsibility
of the Compliance Officer to report any inadequacy found in this regard to the
trustees of the Trust.
(B) OUTSIDE BUSINESS ACTIVITIES, RELATIONSHIPS AND DIRECTORSHIPS.
Except for business relationships with not-for profit organizations, access
Persons may not engage in any outside business activities or maintain a business
relationship with any person or company that may give rise to conflicts of
interest or jeopardize the integrity or reputation of the Trust. Similarly, no
such outside business activities or relationship may be inconsistent with the
interests of the Trust. Access Persons who are officers or employees of the
Advisor may not serve as a director of any public or private company, except
with the prior approval of the Compliance Officer, and all directorships held by
such Access Persons shall be reported to the Compliance Officer.
(C) GRATUITIES.
Trust Employees shall not, directly or indirectly, take, accept, receive or give
gifts or other consideration in merchandise, services or otherwise, except: (i)
customary business gratuities such as meals, refreshments, beverages and
entertainment that are associated with a legitimate business purpose, reasonable
in cost, appropriate as to time and place, do not influence or give the
appearance of influencing the recipient and cannot be viewed as a bribe,
kickback or payoff; and (ii) business related gifts of nominal value.
SECTION VIII CERTIFICATION BY ACCESS PERSONS
The certifications of each Access Person required to be made pursuant
to Section VI shall include certifications that the Access Person has read and
understands this Code and recognizes that he or she is subject to it. Access
Persons shall also be required to certify in their annual certifications that
they have complied with the requirements of this Code.
SECTION IX SANCTIONS
Any violation of this Code shall be subject to the imposition of such
sanctions by the Trust as may be deemed appropriate under the circumstances to
achieve the purposes of Rule 17j-1 and this Code. The sanctions to be imposed
shall be determined by the Board of Trustees, including a majority of the
Independent Trustees; provided, however, that with respect to violations by
personnel of the Advisor (or of a company which controls the Advisor, the
sanctions to be imposed shall be determined by the Advisor (or the controlling
person thereof), as applicable. Sanctions may include, but are not limited to,
suspension or termination of employment, a letter of censure and/or restitution
of an amount equal to the difference between the price paid or received by the
Trust and the more advantageous price paid or received by the offending person.
SECTION X ADMINISTRATION AND CONSTRUCTION
(A) The administration of this Code shall be the responsibility of the
Compliance Officer.
(B) The duties of the Compliance Officer are as follows:
(1) Maintaining current lists of the names of all Trust Employees and
Access Persons with an appropriate description of their title or employment,
including a notation of any directorships held by Access Persons who are
partners, officers, or employees of the Advisor or of any company which controls
the Advisor, and the date each such person became an Access Person;
(2) On an annual basis, providing each Trust Employee with a copy of this
Code and informing such persons of their duties and obligations hereunder;
(3) Obtaining the certifications and reports required to be submitted by
Access Persons under this Code (except that the Compliance Officer may presume
that Quarterly Transaction Reports need not be filed by Independent Trustees in
the absence of facts indicating that a report must be filed), and reviewing the
reports submitted by Access Persons.
(4) Maintaining or supervising the maintenance of all records and reports
required by this Code;
(5) Reviewing securities transactions and holdings reported by Access
Persons against transactions effected by the Trust;
(6) Issuing, either personally or with the assistance of counsel as may be
appropriate, any interpretation of this Code which may appear consistent with
the objectives of Rule 17j-1 and this Code;
(7) Conducting such inspections or investigations as shall reasonably be
required to detect and report, with recommendations, any apparent violations of
this Code to the Board of Trustees of the Trust; and
(C) The Compliance Officer shall maintain and cause to be maintained in an
easily accessible place, the following records:
(1) A copy of this Code and any other codes of ethics adopted pursuant to
Rule 17j-1 by the Trust and the Advisor for a period of 5 years;
(2) A record of each violation of this Code and any other code specified in
(C)(1) above, and of any action taken as a result of such violation for a period
of not less than 5 years following the end of the fiscal year of the Trust in
which the violation occurred;
(3) A copy of each report made pursuant to this Code and any other code
specified in (C)(1) above, by an Access Person or the Compliance Officer, for a
period of not less than 5 years from the end of the fiscal year of the Trust in
which such report or interpretation was made or issued, the most recent 2 years
of which shall be kept in a place that is easily accessible;
(4) A list of all persons, currently or within the past 5 years, who are or
were required to make reports pursuant to Rule 17j-1 and this Code or any other
code specified in (C)(1) above, or who are or were responsible for reviewing
such reports;
(5) A record of any decision, and the reasons supporting the decision, to
approve any investment in an Initial Public Offering or a Limited Offering by
Investment Personnel, for at least 5 years after the end of the fiscal year in
which such approval was granted; and
(6) A copy of each report made to the Trustees pursuant to Section 4(D),
for at least five years after the end of the fiscal year in which it was made,
the first 2 years in an easily accessible place.
(D) Review of Code by Board of Trustees
(1) On an annual basis, and at such other time as deemed to be necessary or
appropriate by the trustees, the trustees shall review operation of this Code
and shall adopt such amendments thereto as may be necessary to assure that the
provisions of the Code establish standards and procedures that are reasonably
designed to detect and prevent activities that would constitute violations of
Rule 17j-1.
(2) In connection with the annual review of the Code by the Trustees, the
Trust and the Advisor shall each provide to the Board of Trustees, and the Board
of Trustees shall consider, a written report (which may be a joint report on
behalf of the Trust and the Advisor) that:
(a) Describes any issues arising under the Code or
related procedures during the past year, including,
but not limited to, information about material
violations of the Code or any procedures adopted in
connection therewith and that describes the
sanctions imposed in response to material
violations; and
(b) Certifies that the Trust and the Advisor have each
adopted procedures reasonably necessary to prevent
Access Persons from violating the Code.
(E) This Code may not be amended or modified except in a written form, which is
specifically approved by majority vote of the Independent Trustees within six
months after such amendment or modification. In connection with any such
amendment or modification, the Trust and the Advisor each provide a
certification that procedures reasonably necessary to prevent Access Persons
from violating the Code, as proposed to be amended or modified, have been
adopted.
This Code was approved by the Board of Trustees of the Trust
at a meeting held on June 29, 2000.
----------------------------------
Secretary
SCHEDULE A
KIT COLE INVESTMENT TRUST
KIT COLE INVESTMENT ADVISORY SERVICES, INC.
REQUEST FOR PERMISSION TO ENGAGE IN PERSONAL TRANSACTION
I hereby request permission to effect a transaction in Covered
Securities in which I have or will acquire direct or indirect Beneficial
Ownership.
PURCHASES AND ACQUISITIONS
------------------------ -------------------------- ----------------------
No. of Shares or
Date Principal Amount Name of Security
------------------------ -------------------------- ----------------------
------------------------ -------------------------- ----------------------
------------------------ -------------------------- ----------------------
------------------------ -------------------------- ----------------------
SALES AND OTHER DISPOSITIONS
------------------------ -------------------------- ----------------------
No. of Shares or
Date Principal Amount Name of Security
------------------------ -------------------------- ----------------------
------------------------ -------------------------- ----------------------
------------------------ -------------------------- ----------------------
------------------------ -------------------------- ----------------------
[ ] (check if applicable) If I have responsibility for the determination by
the Advisor of Securities to be purchased or sold by the Trust, I have
noted (by means of an asterisk) those Securities noted above which are
owned by the Trust. If I am requesting permission to purchase
Securities that are not presently owned by the Trust, I have included a
statement as to why such securities are not being purchased for the
Trust or being considered by the Trust.
Date:________________ Signature:_________________________
Print Name:________________________
Permission Granted ________________ Permission Denied ____________________
Date and Time: ____________________ Signature:__________________________
(Clearing Officer)
SCHEDULE B
KIT COLE INVESTMENT TRUST
KIT COLE INVESTMENT ADVISORY SERVICES, INC.
QUARTERLY TRANSACTION REPORT
The following lists all transactions in Covered Securities, in which I
have or had any direct or indirect Beneficial Ownership, that were effected
during the last calendar quarter and are required to be reported by Section
VI(B) of the Code. (If no such transactions took place write "NONE".) Please
sign and date this report and return it to the Compliance Officer no later than
the 10th day of the month following the end of the calendar quarter. Use reverse
side if additional space is needed.
<TABLE>
<CAPTION>
PURCHASES AND ACQUISITIONS
---------------- ---------------- ----------------------- --------------- ------------------- --------------------
No. of Shares Purchase
or Principal Price Per
Date Amount Name of Security Share or Unit Account Executing Broker
---------------- ---------------- ----------------------- --------------- ------------------- --------------------
<S> <C> <C> <C> <C> <C>
---------------- ---------------- ----------------------- --------------- ------------------- --------------------
---------------- ---------------- ----------------------- --------------- ------------------- --------------------
---------------- ---------------- ----------------------- --------------- ------------------- --------------------
---------------- ---------------- ----------------------- --------------- ------------------- --------------------
</TABLE>
<TABLE>
<CAPTION>
SALES AND OTHER DISPOSITIONS
---------------- ---------------- ----------------------- --------------- ------------------- --------------------
No. of Shares Purchase
or Principal Price Per
Date Amount Name of Security Share or Unit Account Executing Broker
---------------- ---------------- ----------------------- --------------- ------------------- --------------------
<S> <C> <C> <C> <C> <C>
---------------- ---------------- ----------------------- --------------- ------------------- --------------------
---------------- ---------------- ----------------------- --------------- ------------------- --------------------
---------------- ---------------- ----------------------- --------------- ------------------- --------------------
---------------- ---------------- ----------------------- --------------- ------------------- --------------------
</TABLE>
Date Completed:________________ Signature:___________________________
Print Name:__________________________
SCHEDULE C
KIT COLE INVESTMENT TRUST
KIT COLE INVESTMENT ADVISORY SERVICES, INC.
INITIAL CERTIFICATION OF COMPLIANCE WITH CODE OF ETHICS
AND INITIAL HOLDINGS REPORT
This form must be completed by all Access Persons (other than
Independent Trustees) within 10 calendar days after becoming and Access Person.
I have read and I understand the Joint Code of Ethics of Kit Cole
Investment Trust and Kit Cole Investment Advisory Services, Inc. (the "Code"). I
recognize that the provisions of the Code apply to me and agree to comply in all
respects with the procedures described therein.
I certify that I have listed below: (1) the title, number of shares and
principal amount of each Covered Security in which I had any Beneficial
Ownership as of the day I became an Access Person; and (2) the name of each
broker, dealer or bank at which an account is maintained through which any
Covered Securities in which I have any Beneficial Ownership are held, purchased
or sold.
TITLE OF COVERED SECURITY NUMBER OF SHARES PRINCIPAL AMOUNT
Name of each broker, dealer or bank:
Check here if you have attached additional pages of holding in Covered
Securities.
Number of pages attached ____
Date Completed:_____________________ Print Name:_______________________
Signature:_________________________
*Does not apply to Independent Trustees.
SCHEDULE D
KIT COLE INVESTMENT TRUST
KIT COLE INVESTMENT ADVISORY SERVICES, INC.
ANNUAL CERTIFICATION OF COMPLIANCE WITH CODE
OF ETHICS AND ANNUAL HOLDINGS REPORT
This form must be completed by all Access Person (other than
Independent Trustee) within 10 calendar days after becoming an Access person).
I have read and I understand the Joint Code of Ethics of Kit Cole
Investment Trust and Kit Cole Investment Advisory Services, Inc. (the "Code"). I
recognize that the provisions of the Code apply to me and agree to comply in all
respects with the procedures described therein. I certify that I have complied
in all respects with the requirements of the Code as in effect during the past
year.
I also certify that all personal holdings, transactions and accounts
that were required to be reported by me pursuant to the Code, during the past
year have been reported in holdings reports that I have submitted to the
Compliance Officer or in confirmations and statements for each account through
which any Covered Securities in which I have any Beneficial Ownership are held,
purchased or sold, that have been sent to the Compliance Officer.
I certify that I have listed below: (1) the title, number of shares and
principal amount of each Covered Security in which I had any Beneficial
Ownership as of December 31 and (2) the name of each broker, dealer or bank at
which an account is maintained through which any Covered Securities in which I
have any Beneficial Ownership are held, purchased or sold.
TITLE OF COVERED SECURITY NUMBER OF SHARES PRINCIPAL AMOUNT
Name of each broker, dealer or bank:
Check here if you have attached additional pages of holding in Covered
Securities.
Number of pages attached __
Date Completed:____________________ Print Name:____________________________
Signature:_____________________________
*Does not apply to Independent Trustees
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1 Beneficial ownership will not be deemed to exist solely as a result of
any indirect interest a person may have in the investment performance
of an account managed by such person, or over which such person has
supervisory responsibility, which arises from such person's
compensation arrangement with the Advisor or any affiliate of the
Advisor under which the performance of the account, or the profits
derived from its management, is a factor in the determination of such
person's compensation.
2 The prohibitions of this Section IV apply to Securities acquired or
disposed of in any type of transaction, including but not limited to
non-brokered transactions, such as purchases and sales of privately
placed Securities and Securities acquired directly from an issuer,
except to the extent that one of the exemptions from the prohibitions
set forth in Section IV(C) is applicable.
3 The reporting requirements of this Section VI apply to Covered
Securities acquired or disposed of in all types of transactions,
including but not limited to non-brokered transactions, such as
purchases and sales of privately placed Securities and Securities
acquired directly from an issuer, except to the extent that one of the
exemptions from the reporting requirements applies.
