EXHIBIT 1. (A)(11)
Code of Ethics
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AIC Code of Ethics
(Pursuant to Rule 17j-1)
November 1, 1999
Page 1
AMERITAS INVESTMENT CORP.
CODE OF ETHICS
I. INTRODUCTION
A. Rule 17j-1 (the "Rule") under the Investment Company Act of 1940
("1940 Act") requires that each investment adviser and each
principal underwriter for an investment company registered under
the 1940 Act must adopt a written Code of Ethics that contains
provisions reasonably necessary to prevent certain persons
("Access Persons") from:
1. (1) employing any device, scheme or artifice to defraud
a Portfolio;
2. (2) making any untrue statement of a material fact to
a Portfolio or omit to state a material fact necessary in
order to make the statements made to a Portfolio, in
light of the circumstances under which they are made, not
misleading;
3. engaging in any act, practice or course of business that
operates or would operate as a fraud or deceit on a
Portfolio; or
4. engaging in any manipulative practice with respect to a
Portfolio.
B. This Code of Ethics is required by Rule 17j-1. As permitted under
Rule 17j-1, this Code provides that those Access persons who,
pursuant to AIC's "Registered Investment Adviser Practices and
Procedures" and "AIC's Registered Broker Dealer Practices and
Procedures" file substantially the same reports as are required
by Section V hereunder, shall be excepted from the quarterly
reporting requirement of Section V.B. All other requirements
will, however, continue to be applicable to each such Access
Person.
II. DEFINITIONS. In order to understand how this Code of Ethics applies to
particular persons and transactions, familiarity with the key terms and
concepts used in this Code of Ethics is necessary. Those key terms and
concepts are:
A. ACCESS PERSON/1 means: (i) Any director, officer, general
partner or Advisory
Person of AIC.
B. ADVISORY PERSON OF AIC means: (i) Any AIC employee (or any
employee of any company in a control relationship to AIC) who,
in connection with his or her regular functions or duties,
makes, participates in, or obtains information
/1 persons who, in a single instance or in infrequent,
inadvertent instances, obtain knowledge are not, for purposed of
this Code, Access Persons. Similarly, persons who normally assist
in the preparation of public reports but receive nt information
about recommendations or trading by the Portfolios are not Access
Persons for purposes of the Code. See, interpretive letter from
Joel H. Goldberg, Director of the Division of investment
management, to the Investment company Institute, March 31, 1981.
(1981 SEC NoAct LEXIS 3447.)
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AIC Code of Ethics
(Pursuant to Rule 17j-1)
November 1, 1999
Page 2
regarding the purchase or sale of Covered Securities by a
Portfolio, or whose functions relate to the making of any
recommendations with respect to the purchases or sales; and (ii)
any natural person in a control relationship to a Portfolio or to
AIC who obtains information concerning recommendations made to a
Portfolio with regard to the purchase or sale of Covered
Securities by a Portfolio
C. INVESTMENT PERSONNEL means: (i) Any employee of AIC (or of any
company in a control relationship to a Portfolio or investment
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 a Portfolio; and (ii) Any
natural person who controls a Portfolio or AIC and who obtains
information concerning recommendations made to a Portfolio
regarding the purchase or sale of securities by a Portfolio.
D. BENEFICIAL OWNERSHIP has the meaning set forth in Rule 16a-1(a)
of the Securities Exchange Act of 1934, as amended. The
determination of direct or indirect beneficial ownership shall
apply to all securities which an Access Person has or acquires
and may, under appropriate circumstances, be deemed to include
securities beneficially owned by members of the immediate family
of an Access Person sharing his or her household, or by certain
partnerships, corporations, trusts or other arrangements, in
accordance with Rule 16a-1
E. PORTFOLIOS means the Ameritas Portfolios of Calvert Variable
Series, Inc.
F. CONTROL has the meaning set forth in Section 2(a)(9) of the 1940
Act.
G. PURCHASE OR SALE OF A SECURITY includes, among other things, the
writing of an option to purchase or sell a security.
H. COVERED SECURITY means a security as defined in section 2(a)(36)
of the Act, except that it does not include
1. Direct obligations of the Government of the United
States;
2. Bankers' acceptances, bank certificates of deposit,
commercial paper and high quality short-term debt
instruments, including repurchase agreements; and
3. Shares issued by open-end Funds
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AIC Code of Ethics
(Pursuant to Rule 17j-1)
November 1, 1999
Page 3
III. PROHIBITED TRANSACTIONS; EXEMPTIONS
A. PROHIBITED PURCHASES AND SALES. No Access Person shall purchase
or sell, directly or indirectly, any security in which that
Access Person has, or by reason of the transaction acquires, any
direct or indirect beneficial ownership and which to the actual
knowledge of that Access Person at the time of such purchase or
sale:
1. is being considered for purchase or sale or for
recommendation to purchase or sell by a Fund; or
2. is being purchased or sold by a Fund.
B. PROHIBITED RECOMMENDATIONS. No Access Person shall recommend any
securities transaction to a Fund without having disclosed to the
designated compliance officer his interest, if any, in such
securities or the issuer thereof, including without limitation:
1. his direct or indirect beneficial ownership of any
securities of such issuer;
2. any contemplated transaction by such person in such
securities;
3. any position with such issuer or its affiliates; or
4. any present or proposed business relationship between
such issuer or its affiliates and such person or any
party in which such person has a significant interest.
C. EXEMPTIONS. The prohibitions of III.A and III.B above shall not
apply to:
1. Purchases or sales effected in any account over which
the Access Person has no direct or indirect influence or
control.
2. Purchases or sales of securities which are not eligible
for purchase or sale by a Fund.
3. Purchases or sales which are non-volitional on the part
of either the Access Person or a Fund.
4. Purchases which are part of an automatic dividend
reinvestment plan.
5. Purchases effected upon 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
that issuer, and sales of the rights so acquired.
IV. IPOS AND PRIVATE PLACEMENTS. All Investment Personnel must obtain
approval from AIC before directly or indirectly acquiring beneficial
ownership in any securities in an Initial Public Offering or in a
Limited Offering.
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AIC Code of Ethics
(Pursuant to Rule 17j-1)
November 1, 1999
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A. An 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 sections 13 or 15(d) of the Securities
Exchange Act of 1934.
B. 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) or pursuant to rule 504, rule 505, or rule
506 under the Securities Act of 1933.
V. REPORTS REQUIRED. Unless excepted by paragraph E of this section, every
Access Person of AIC must report to that Portfolio, investment adviser
or principal underwriter:
A. INITIAL HOLDINGS REPORTS. No later than 10 days after the person
becomes an Access Person, 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
became 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 as of the date the person became an
Access Person; and
3. The date that the report is submitted by the Access
Person.
B. QUARTERLY TRANSACTION REPORTS. No later than 10 days after the
end of a calendar quarter, the following information:
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, the
interest rate and maturity date (if applicable),
the number of shares and the principal amount of
each Covered 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 which the transaction was effected; and
e. The date that the report is submitted by the
Access Person.
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AIC Code of Ethics
(Pursuant to Rule 17j-1)
November 1, 1999
Page 5
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.
C. ANNUAL HOLDINGS REPORTS. Annually, the following information
(which information must be current as of a date no more than 30
days before the report is submitted):
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.
D. DISCLAIMING BENEFICIAL OWNERSHIP. Any report may contain a
statement that the report shall not be construed as an admission
by the person making the report that the person has any direct
or indirect beneficial ownership in the security to which the
report relates.
E. EXEMPTIONS FROM QUARTERLY REPORTING. With respect to Access
Persons who are employees of AIC or any company affiliated with
AIC, and who might be deemed Access Persons solely by reason of
being employees of such company, the quarterly reporting
requirements imposed under Section V.B and V.C shall be deemed
to be satisfied if such persons are required to file reports
("Parallel Reports") of personal securities transactions in
conformity with Rule 204-2(a)(12) or 204-2(a)(13) under the
Investment Advisers Act of 1940, as amended, provided:
1. Parallel Reports are made within the time periods
specified hereunder;
2. copies of Parallel Reports (or confirmations and account
statements) are reviewed by the Designated Compliance
Officer for compliance with this
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AIC Code of Ethics
(Pursuant to Rule 17j-1)
November 1, 1999
Page 6
Code and are maintained in accordance with the
recordkeeping requirements applicable hereunder; and
3. Parallel Reports are filed with respect to all securities
transactions involving Covered Securities, without regard
to any "de minimis" exceptions otherwise applicable to
such reporting.
VI. CONFIDENTIALITY
A. No Access Person shall reveal to any other person (except in the
normal course of his or her duties on behalf AIC, as investment
adviser to the Portfolios) any information regarding securities
transactions by a Portfolio or consideration by a Portfolio.
B. All information obtained from any Access Person hereunder shall
be kept in strict confidence, except that reports of securities
transactions hereunder will be made available to the Securities
and Exchange Commission or any other regulatory or
self-regulatory organization to the extent required by law or
regulation.
VII. DESIGNATED COMPLIANCE OFFICER. The Designated Compliance Officer of AIC
is Kenneth R. Jones, Vice President, Corporate Compliance. His licenses
as of November 1, 1999 are NASD Series 6, 7, 24, 63, and 65.
Responsibilities of the Designated Compliance Officer include:
A. Review and maintenance of RIA Policies and Procedures Manual
B. Review and acceptance of IAR's individual advisory services and
their proposed activities
C. Review and approve advertising
D. Review and resolution of customer complaints
E. Review and approval of correspondence
F. Approval of registrations
G. IAR Activities Inspections
H. Frequent reviews of client accounts to detect and prevent
irregularities, or abuses
I. Quarterly examination of Ameritas Investment Management Accounts
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AIC Code of Ethics
(Pursuant to Rule 17j-1)
November 1, 1999
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J. Suitability and initial fee assessment
K. Disciplinary and Remedial Action
VIII. REVIEW PROCESS. Information reported pursuant to the requirements of
Section IV shall be reviewed for any pattern of transactions involving
parallel transactions (e.g. a Portfolio and an Access Person both buying
or both selling the same Covered Security) generally within a 15 day
period before or after the transaction date. Among the factors that will
be considered in the analysis of whether any provision of the Code has
been violated will be the number and dollar value of the transactions,
the trading volume of the securities in question, the length of time the
security is held by the individual and the individual involvement in the
investment process. While the focus of this procedures is on "patterns,"
it is important to note that a violation could result from a single
transaction if the circumstance warrant a finding that the underlying
principles of fair dealing have been violated.
IX RECORDKEEPING REQUIREMENTS.
A. AIC will at its principal place of business, maintain records in
the manner and to the extent set out in this paragraph, and must
make these records available to the Commission or any
representative of the Commission at any time and from time to
time for reasonable periodic, special or other examination:
1. A copy of each code of ethics for the organization that
is in effect, or at any time within the past five years
was in effect, must be maintained in an easily
accessible place;
2. A record of any violation of the code of ethics, and of
any action taken as a result of the violation, must be
maintained in an easily accessible place for at least
five years after the end of the fiscal year in which the
violation occurs;
3. A copy of each report made by an Access Person as
required by this section, including any information
provided in lieu of the reports under paragraph
(d)(2)(v) of this section, must be maintained for at
least five years after the end of the fiscal year in
which the report is made or the information is provided,
the first two years in an easily accessible place;
4. A record of all persons, currently or within the past
five years, who are or were required to make reports
under paragraph (d) of this section, or who are or were
responsible for reviewing these reports, must be
maintained in an easily accessible place; and
5. A copy of each report required by paragraph (c)(2)(ii)
of this section must be maintained for at least five
years after the end of the fiscal year in which it is
made, the first two years in an easily accessible place.
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AIC Code of Ethics
(Pursuant to Rule 17j-1)
November 1, 1999
Page 8
B. AIC will maintain a record of any decision, and the reasons
supporting the decision, to approve the acquisition by Investment
Personnel of securities under Section IV, for at least five years
after the end of the fiscal year in which the approval is
granted.
X. SANCTIONS. Upon discovering a violation of the Code of Ethics, AIC or
the Board of Directors of The Calvert Variable Series, Inc. may impose
any sanctions it deems appropriate, including a letter of censure or
suspension or termination of the employment of the violator.
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