GOLDEN GATE FUND, INC.
and
COLLINS & COMPANY, LLC
Code of Ethics
Adopted June 1, 2000
I. DEFINITIONS
-----------
A. "Access person" means any director, officer or advisory person of the
Fund or of the Adviser.
B. "Act" means the Investment Company Act of 1940, as amended.
C. "Adviser" means Collins & Company, LLC.
D. "Advisory person" means: (i) any employee of the Fund or Adviser or of
any company in a control relationship to the Fund or Adviser, who, in
connection with his or her regular functions or duties, makes,
participates in, or obtains information regarding the purchase or sale
of Covered Securities by the Fund or Managed Accounts, 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 Fund or Adviser who obtains information concerning
recommendations made to the Fund or Managed Accounts with regard to
the purchase or sale of Covered Securities by the Fund or Managed
Accounts.
E. A Covered Security is "being considered for purchase or sale" when a
recommendation to purchase or sell the Covered Security has been made
and communicated and, with respect to the person making the
recommendation, when such person seriously considers making such a
recommendation.
F. "Beneficial ownership" shall be interpreted in the same manner as it
would be under Rule 16a-1(a)(2) under the Securities Exchange Act of
1934 in determining whether a person is the beneficial owner of a
security for purposes of such Act and the rules and regulations
promulgated thereunder.
G. "Control" has the same meaning as that set forth in Section 2(a)(9) of
the Act.
H. "Covered Security" means a security as defined in Section 2(a)(36) of
the Act, except that it does not include:
<PAGE>
(i) Direct obligations of the Government of the United States;
(ii) Bankers' acceptances, bank certificates of deposit, commercial
paper and high quality short-term debt instruments, including
repurchase agreements; and
(iii) Shares issued by open-end registered investment companies.
I. "Disinterested director" means a director of the Fund who is not an
"interested person" of the Fund within the meaning of Section 2(a)(19)
of the Act and the rules and regulations promulgated thereunder.
J. "Fund" means Golden Gate Fund, Inc.
K. "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 15(d) of the Securities Exchange Act of 1934.
L. "Investment personnel" means: (i) any employee of the Fund or Adviser
or of any company in a control relationship to the Fund or Adviser
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 Fund or Managed Accounts; and (ii) any
natural person who controls the Fund or Adviser and who obtains
information concerning recommendations made to the Fund or Managed
Accounts regarding the purchase or sale of securities by the Fund or
Managed Accounts.
M. A "Limited Offering" means an offering that is exempt from
registration under the Securities Act of 1933 pursuant to Section 4(2)
or Section 4(6) thereof or pursuant to Rule 504, Rule 505 or Rule 506
thereunder.
N. "Managed Accounts" include any client account for which the Adviser
provides investment management services.
O. "Purchase or sale of a Covered Security" includes, among other things,
the writing of an option to purchase or sell a Covered Security.
II. APPROVAL OF CODE OF ETHICS
--------------------------
A. The Board of Directors of the Fund, including a majority of the
Disinterested directors, shall approve this Code of Ethics and any
material changes thereto. Prior to approving this Code of Ethics and
any material changes thereto, the Board of Directors must determine
that this Code of Ethics contains provisions reasonably necessary to
prevent access persons from violating Rule 17j-1(b) of the Act and
shall receive a certification from the Adviser that it has adopted
2
<PAGE>
such procedures as are reasonably necessary to prevent access persons
of the Adviser from violating this Code of Ethics.
B. No less frequently than annually, the officers of the Fund and the
officers of the Adviser shall furnish a report to the Board of
Directors of the Fund:
1. Describing issues arising under the Code of Ethics since the last
report to the Board of Directors, including, but not limited to,
information about material violations of the Code of Ethics and
sanctions imposed in response to such material violations. Such
report shall also include a list of access persons under the Code
of Ethics.
2. Certifying that the Fund and Adviser have adopted such procedures
as are reasonably necessary to prevent access persons from
violating the Code of Ethics.
C. This Code of Ethics, the certifications required by Sections II.A. and
II.B.(2), and the reports required by Sections II.B. shall be
maintained by the Fund's Administrator. The reports required by
Section V shall be maintained by the Fund's President or designee.
III. EXEMPTED TRANSACTIONS
---------------------
The prohibitions of Section IV of this Code of Ethics shall not apply to:
(a) Purchases or sales effected in any account over which the access
person has no direct or indirect influence or control.
(b) Purchases or sales of Covered Securities which are not eligible
for purchase or sale by any Fund or any Managed Account;
provided, however, that the prohibitions of Section IV.B of this
Code of Ethics shall apply to such purchases and sales.
(c) Purchases or sales which are non-volitional on the part of either
the access person or the Fund or Managed Account.
(d) Purchases which are part of an automatic dividend reinvestment
plan.
(e) 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 such rights were acquired from such issuer, and sales
of such rights so acquired.
IV. PROHIBITED ACTIVITIES
---------------------
A. Except in a transaction exempted by Section III of this Code, no
access person shall purchase or sell, directly or indirectly, any
Covered Security in which he has, or by reason of such transaction
acquires, any direct or indirect beneficial
3
<PAGE>
ownership unless such purchase or sale has been "precleared" by the
Compliance Officer of the Adviser. (The Compliance Officer's trades
shall be "precleared" by Brian Eisenbarth who may also approve trades
(other than his own) in the absence of the Compliance Officer.) No
transaction shall be "precleared" if, at the time of such purchase or
sale, such security is being considered for purchase or sale by a Fund
or a Managed Account or is being purchased or sold by a Fund or a
Managed Account. All "precleared" trades must be completed no later
than the close of business following the day the trade was
"precleared". Notwithstanding the foregoing, Disinterested directors
and directors who are not advisory persons are not required to
"preclear" transactions unless the director knows or should have known
at the time of such purchase or sale, such security is being
considered for purchase or sale by the Fund or is being purchased or
sold by the Fund.
B. Access persons, including Investment Personnel but excluding
Disinterested directors and directors who are not advisory persons,
may not acquire any securities in an Initial Public Offering without
the prior approval of the Compliance Officer of the Adviser. Prior
approval shall not be given if the Compliance Officer believes that
the investment opportunity should be reserved for the Fund or a
Managed Account or is being offered to the individual by reason of his
or her position with the Fund or the Adviser.
C. Except in a transaction exempted by Section III of this Code of
Ethics, access persons, including Investment Personnel but excluding
Disinterested directors and directors who are not advisory persons,
must obtain approval from the Compliance Officer of the Adviser before
directly or indirectly acquiring beneficial ownership in any
securities in a Limited Offering. Prior approval shall not be given if
the Fund's Compliance Officer believes that the investment opportunity
should be reserved for the Fund or a Managed Account or is being
offered to the individual by reason of his or her position with the
Fund or the Adviser.
D. Except for service which began prior to the effective date hereof,
access persons shall not serve on the board of directors of publicly
traded companies absent prior authorization of the Board of Directors
of the Fund. The Board of Directors of the Fund may so authorize such
board service only if it determines that such board service is not
inconsistent with the interests of the Fund and its shareholders.
V. REPORTING AND COMPLIANCE PROCEDURES
-----------------------------------
A. Except as provided in Section V.B. of this Code of Ethics, every
access person shall report to the Fund the information described in
Section V.C., Section V.D. and Section V.E. of this Code of Ethics.
All reports shall be filed with the Compliance Officer of the Adviser.
4
<PAGE>
B. 1. A Disinterested director of the Fund need not make a report
pursuant to Section V.C. and V.E. of this Code of Ethics and need
only report a transaction in a Covered Security pursuant to
Section V.D. of this Code of Ethics if such Disinterested
director, at the time of such transaction, knew or, in the
ordinary course of fulfilling his official duties as a director
of the Fund, should have known that, during the 15-day period
immediately preceding the date of the transaction by the
director, such Covered Security was purchased or sold by the Fund
or was being considered by the Fund or the Adviser for purchase
or sale by the Fund.
2. An access person need not make a report with respect to
transactions effected for, and Covered Securities held in, any
account over which the person has no direct or indirect influence
or control.
3. An access person need not make a quarterly transaction report
pursuant to Section V.D. of this Code of Ethics if the report
would duplicate information contained in broker trade
confirmations or account statements received by the Compliance
Officer of the Adviser with respect to the access person in the
time period required by Section V.D., provided that all of the
information required by Section V.D. is contained in the broker
trade confirmations or account statements or in the records of
the Adviser. Employees of the Adviser are prohibited from
maintaining personal or related person brokerage accounts at
brokerage firms not affiliated with the Adviser without the prior
approval of the Compliance Officer of the Adviser. If such
approval is obtained, duplicate broker trade confirmations and
account statements must be sent to the Compliance Officer of the
Adviser.
C. Every access person shall, no later than ten (10) days after the
person becomes an access person, file an initial holdings report
containing the following information:
1. The title, number of shares and principal amount of each Covered
Security in which the access person had any direct or indirect
beneficial ownership when the person becomes an access person;
2. The 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
3. The date that the report is submitted by the access person.
D. Every access person shall, no later than ten (10) days after the end
of a calendar quarter, file a quarterly transaction report containing
the following information:
5
<PAGE>
1. With respect to any transaction during the quarter in a Covered
Security in which the access person had any direct or indirect
beneficial ownership:
(a) The date of the transaction, the title and the number of
shares, and the principal amount of each security involved;
(b) The nature of the transaction (i.e., purchase, sale or any
other type of acquisition or disposition);
(c) The price of the Covered Security at which the transaction
was effected;
(d) The name of the broker, dealer or bank with or through whom
the transaction was effected; and
(e) The date that the report is submitted by the access person.
2. With respect to any 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) The name of the broker, dealer or bank with whom the access
person established the account;
(b) The date the account was established; and
(c) The date that the report is submitted by the access person.
E. Every access person shall, no later than January 30 each year, file an
annual holdings report containing the following information as of the
preceding December 31:
1. The title, number of shares and principal amount of each Covered
Security in which the access person had any direct or indirect
beneficial ownership;
2. The name of any broker, dealer or bank with whom the access
person maintains an account in which any securities are held for
the direct or indirect benefit of the access person; and
3. The date that the report is submitted by the access person.
6
<PAGE>
F. Any report filed pursuant to Section V.C., Section V.D. or Section
V.E. of this Code of Ethics may contain a statement that the report
shall not be construed as an admission by the person making such
report that he has any direct or indirect beneficial ownership in the
security to which the report relates.
G. The Compliance Officer of the Adviser shall review all reports filed
pursuant to Section V.C., Section V.D. or Section V.E. of this Code of
Ethics. The Compliance Officer of the Adviser shall identify all
access persons who are required to file reports pursuant to this
Section V of this Code of Ethics and must inform such access persons
of their reporting obligation.
VI. SANCTIONS
---------
Upon discovering a violation of this Code of Ethics, the Board of Directors of
the Fund or the Managing Member of Adviser, as applicable, may impose such
sanctions as they deem appropriate. In particular, the Adviser reserves the
right to reverse any trade that violates this Code of Ethics and may charge the
account with any resulting loss.
7
