MANUFACTURERS INVESTMENT TRUST
485APOS, EX-99.(P)(3), 2000-08-17
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<PAGE>   1
                                  [JANUS LOGO]


                               JANUS ETHICS RULES

              "ACT IN THE BEST INTEREST OF OUR INVESTORS-EARN THEIR
                         CONFIDENCE WITH EVERY ACTION"

                                 CODE OF ETHICS

                             INSIDER TRADING POLICY

                                   GIFT POLICY

                            OUTSIDE EMPLOYMENT POLICY

                           LAST REVISED MARCH 1, 2000
<PAGE>   2
                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                          <C>
DEFINITIONS ............................................................................................      1

INTRODUCTION............................................................................................      4
         CAUTION REGARDING PERSONAL TRADING ACTIVITIES..................................................      4
         COMMUNICATIONS WITH OUTSIDE TRUSTEES/DIRECTORS.................................................      4

CODE OF ETHICS..........................................................................................      5
         OVERVIEW ......................................................................................      5
         GENERAL PROHIBITIONS...........................................................................      5
         TRADING RESTRICTIONS...........................................................................      6
                  EXCLUDED TRANSACTIONS.................................................................      6
                  DISCLOSURE OF CONFLICTS...............................................................      7
                  PRECLEARANCE..........................................................................      7
                  TRADING BAN ON PORTFOLIO MANAGERS AND ASSISTANT PORTFOLIO MANAGERS....................      8
                  BAN ON IPOs AND HOT ISSUES............................................................      8
                  60 DAY RULE...........................................................................      8
                  BLACKOUT PERIOD.......................................................................      8
                  FIFTEEN DAY RULE......................................................................      8
                  SEVEN DAY RULE........................................................................      9
                  SHORT SALES...........................................................................      9
                  HEDGE FUNDS, INVESTMENT CLUBS, AND OTHER INVESTMENTS..................................      9
         PRECLEARANCE PROCEDURES........................................................................      9
                  GENERAL PRECLEARANCE..................................................................      9
                  PRECLEARANCE REQUIREMENTS FOR INVESTMENT PERSONNEL....................................     10
                  PRECLEARANCE OF COMPANY STOCK.........................................................     10
                  PRECLEARANCE OF TENDER OFFERS AND STOCK PURCHASE PLANS................................     11
                  FOUR DAY EFFECTIVE PERIOD.............................................................     11
         REPORTING REQUIREMENTS.........................................................................     11
                  ACCOUNT STATEMENTS....................................................................     11
                  HOLDINGS REPORTS......................................................................     12
                  PERSONAL SECURITIES TRANSACTION REPORTS...............................................     12
                  NON-INFLUENCE AND NON-CONTROL ACCOUNTS................................................     12
         OTHER REQUIRED FORMS...........................................................................     13
                  ACKNOWLEDGMENT OF RECEIPT FORM........................................................     13
                  ANNUAL CERTIFICATION FORM.............................................................     13
                  OUTSIDE DIRECTOR/TRUSTEE REPRESENTATION FORM..........................................     13

INSIDER TRADING POLICY..................................................................................     14
         BACKGROUND INFORMATION.........................................................................     14
                  WHO IS AN INSIDER?....................................................................     15
                  WHEN IS INFORMATION NONPUBLIC?........................................................     15
                  WHAT IS MATERIAL INFORMATION?.........................................................     15
                  WHEN IS INFORMATION MISAPPROPRIATED?..................................................     15
                  PENALTIES FOR INSIDER TRADING.........................................................     16
                  WHO IS A CONTROLLING PERSON?..........................................................     16
         PROCEDURES TO IMPLEMENT POLICY ................................................................     16
</TABLE>
<PAGE>   3
<TABLE>
<S>                                                                                                          <C>
                  IDENTIFYING MATERIAL INSIDE INFORMATION...............................................     16
                  REPORTING INSIDE INFORMATION..........................................................     17
                  WATCH AND RESTRICTED LISTS............................................................     17
                  PROTECTING INFORMATION................................................................     18
                  RESPONSIBILITY TO MONITOR TRANSACTIONS................................................     19
                  RECORD RETENTION......................................................................     19
                  TENDER OFFERS.........................................................................     19

GIFT POLICY.............................................................................................     20
         GIFT GIVING....................................................................................     20
         GIFT RECEIVING.................................................................................     20
         CUSTOMARY BUSINESS AMENITIES...................................................................     20

OUTSIDE EMPLOYMENT POLICY...............................................................................     21

PENALTY GUIDELINES......................................................................................     22
         OVERVIEW ......................................................................................     22
         PENALTY GUIDELINES   ..........................................................................     22

SUPERVISORY AND COMPLIANCE PROCEDURES...................................................................     23
         SUPERVISORY PROCEDURES.........................................................................     23
                  PREVENTION OF VIOLATIONS..............................................................     23
                  DETECTION OF VIOLATIONS...............................................................     23
         COMPLIANCE PROCEDURES..........................................................................     24
                  REPORTS OF POTENTIAL DEVIATIONS OR VIOLATIONS.........................................     24
                  ANNUAL REPORTS........................................................................     24
                  RECORDS ..............................................................................     24
                  INSPECTION............................................................................     25
                  CONFIDENTIALITY.......................................................................     25
                  FILING OF REPORTS.....................................................................     25
         THE ETHICS COMMITTEE...........................................................................     25
                  MEMBERSHIP OF THE COMMITTEE...........................................................     25
                  COMMITTEE MEETINGS....................................................................     25
                  SPECIAL DISCRETION....................................................................     26

GENERAL INFORMATION ABOUT THE ETHICS RULES..............................................................     27
                  DESIGNEES.............................................................................     27
                  ENFORCEMENT...........................................................................     27
                  INTERNAL USE..........................................................................     27

FORMS ..................................................................................................     28
</TABLE>
<PAGE>   4
                               JANUS ETHICS RULES

             "ACT IN THE BEST INTEREST OF OUR INVESTORS - EARN THEIR
                         CONFIDENCE WITH EVERY ACTION"


-------------------------------------------------------------------------------
                                   DEFINITIONS
-------------------------------------------------------------------------------

The following definitions are used throughout this document. You are responsible
for reading and being familiar with each definition.

1.       "Access Person" shall mean:

         1)       Any trustee, director, officer or Advisory Person of the Janus
                  Funds or JCC;

         2)       Any director or officer of JDI who in the ordinary course of
                  his or her business makes, participates in or obtains
                  information regarding the purchase or sale of securities for
                  the Janus Funds or for the advisory clients or whose functions
                  or duties as part of the ordinary course of his or her
                  business relate to the making of any recommendation to the
                  Janus Funds or advisory clients regarding the purchase or sale
                  of securities; and

         3)       Any other persons designated by the Ethics Committee as having
                  access to current trading information.

2.       "Advisory Person" shall mean:

         1)       Any employee of the Janus Funds or JCC (or of any company in a
                  control relationship to the Janus Funds or JCC) who in
                  connection with his or her regular functions or duties, makes,
                  participates in or obtains information regarding the purchase
                  or sale of a security by the Funds or for the account of
                  advisory clients, or whose functions relate to the making of
                  any recommendations with respect to such purchases and sales;
                  and

         2)       Any natural person in a control relationship to the Funds or
                  JCC who obtains information concerning recommendations made to
                  the Funds or for the account of Clients with regard to the
                  purchase or sale of a security.

3.       "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 subject to the provisions of
         Section 16 except that the determination of direct or indirect
         Beneficial Ownership shall apply to all Covered Securities which an
         Access Person has or acquires. For example, in addition to a person's
         own accounts the term "Beneficial Ownership" encompasses securities
         held in the name of a spouse or equivalent domestic partnership, minor
         children, a relative sharing your home, or certain trusts under which
         you or a related party is a beneficiary, or held under other
         arrangements indicating a sharing of financial interest.

4.       "Company Stock" is any stock or option issued by Janus, Stilwell
         Financial, Inc. ("Stilwell") or Kansas City Southern Industries, Inc.
         ("KCSI").

                                       1
<PAGE>   5
5.       "Control" shall have the same meaning as that set forth in Section
         2(a)(9) of the 1940 Act.

6.       "Covered Persons" are all Directors, Trustees, officers, and full-time,
         part-time or temporary employees of Janus, and persons working at Janus
         on a contract basis.

7.       "Covered Securities" generally include all securities (including
         Company Stock), whether publicly or privately traded, and any option,
         future, forward contract or other obligation involving a security or
         index thereof, including an instrument whose value is derived or based
         on any of the above (a "derivative"). The term Covered Security
         includes any separate security, which is convertible into or
         exchangeable for, or which confers a right to purchase such security.
         The following investments are not Covered Securities:

         -        shares of registered open-end investment companies (e.g.,
                  mutual funds);

         -        direct obligations of the U.S. government (e.g., Treasury
                  securities), or any derivative thereof;

         -        securities representing a limited partnership interest in a
                  real estate limited partnership;

         -        high-quality money market instruments, such as certificates of
                  deposit, bankers acceptances, repurchase agreements,
                  commercial paper, and U.S. government agency obligations;

         -        insurance contracts, including life insurance or annuity
                  contracts;

         -        direct investments in real estate, business franchises or
                  similar ventures; and

         -        physical commodities (including foreign currencies), or any
                  derivatives thereof.

8.       "Designated Compliance Representatives" are David Kowalski and Ernie
         Overholt or their designee(s).

9.       "Designated Legal Representatives" are Bonnie Howe and Heidi Walter or
         their designee(s).

10.      "Designated Trading Operations Representatives" are Lesa Finney, John
         Porro, and Mark Farrell.

11.      "Directors" are directors of JCC.

12.      "Executive Committee" is comprised of Thomas Bailey, Jim Craig, Thomas
         Early, Steve Goodbarn, Margie Hurd, and Mark Whiston.

13.      "Executive Investment Committee" is comprised of Jim Craig, Jim Goff,
         Helen Hayes, Warren Lammert, and Scott Schoelzel.

14.      "Ethics Committee" is comprised of Thomas Early, Steve Goodbarn, David
         Kowalski and Ernie Overholt.

15.      "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.

16.      "Inside Trustees and Directors" are Trustees and Directors who are also
         employed by Janus.

                                       2
<PAGE>   6
17.      "Investment Personnel" shall mean (i) a person who makes decisions
         regarding the purchase or sale of securities by or on behalf of the
         Janus Funds or advisory clients and any person such as an analyst or
         trader who directly assists in the process, and (ii) any natural person
         who controls the Janus Funds or JCC and who obtains information
         concerning recommendations made to the Funds regarding the purchase or
         sale of Covered Securities by the Funds.

18.      "Janus" is Janus Investment Fund, Janus Aspen Series, Janus Capital
         Corporation, Janus Service Corporation, Janus Distributors, Inc., Janus
         Capital International Ltd., Janus International (UK) Ltd., Janus
         Capital Trust Manager Ltd., Janus Universal Funds, and Janus World
         Funds Plc.

19.      "Janus Funds" are Janus Investment Fund, Janus Aspen Series, Janus
         Universal Funds, and Janus World Funds Plc.

20.      "JCC" is Janus Capital Corporation, Janus Capital International Ltd.,
         Janus International (UK) Ltd. and Janus Capital Trust Manager Ltd.

21.      "JDI" is Janus Distributors, Inc.

22.      "JDI's Operations Manager" is  Dana Stephens and/or her designee(s).

23.      "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 thereunder.

24.      "NASD" is the National Association of Securities Dealers, Inc.

25.      "Non-Access Person" is any person that is not an Access Person.

26.      "Outside Directors" are Directors who are not employed by Janus.

27.      "Outside Trustees" are Trustees who are not "interested persons" of the
         Janus Funds within the meaning of Section 2(a)(9) of the 1940 Act.

28.      "Registered Persons" are persons registered with the NASD by JDI.

29.      "Security Held or to be Acquired" means any Covered Security which,
         within the most recent 15 days (i) is or has been held by the Janus
         Funds; or (ii) is being or has been considered by the Janus Funds or
         JCC for purchase.

30.      "SEC" is Securities and Exchange Commission.

31.      "Trustees" are trustees of Janus Investment Fund and Janus Aspen
         Series.

These definitions may be updated from time to time to reflect changes in
personnel.

                                       3
<PAGE>   7
-------------------------------------------------------------------------------
                                  INTRODUCTION
-------------------------------------------------------------------------------

         These Ethics Rules ("Rules") apply to all Covered Persons. The Rules
apply to transactions for your personal accounts and any other accounts you
Beneficially Own. You may be deemed the beneficial owner of any account in which
you have a direct or indirect financial interest. Such accounts include, among
others, accounts held in the name of your spouse or equivalent domestic
partnership, your minor children, a relative sharing your home, or certain
trusts under which you or such persons are a beneficiary.

         The Rules are intended to ensure that you (i) at all times place first
the interests of the Janus Funds, investment companies for which Janus serves as
subadviser, and other advisory clients ("Clients"); (ii) conduct all personal
trading consistent with the Rules and in such a manner as to avoid any actual or
potential conflict of interest or any abuse of your position of trust and
responsibility; and (iii) not use any material nonpublic information in
securities trading. The Rules also establish policies regarding other matters,
such as outside employment and the giving or receiving of gifts.

         You are required to read and retain these Rules and to sign and return
the attached Acknowledgment of Receipt Form to Compliance upon commencement of
employment or other services. On an annual basis thereafter, you will be
required to complete an Annual Certification Form. The Annual Certification Form
confirms that (i) you have received, read and asked any questions necessary to
understand the Rules; (ii) you agree to conduct yourself in accordance with the
Rules; and (iii) you have complied with the Rules during such time as you have
been associated with Janus. Depending on your status, you may be required to
submit additional reports and/or obtain clearances as discussed more fully
below.

         Unless otherwise defined, all capitalized terms shall have the same
meaning as set forth in the Definitions section.

                  CAUTION REGARDING PERSONAL TRADING ACTIVITIES

         Certain personal trading activities may be risky not only because of
the nature of the transactions, but also because action necessary to close out a
position may become prohibited for some Covered Persons while the position
remains open. For example, you may not be able to close out short sales and
transactions in derivatives. Furthermore, if JCC becomes aware of material
nonpublic information, or if a Client is active in a given security, some
Covered Persons may find themselves "frozen" in a position. JCC will not bear
any losses in personal accounts resulting from the application of these Rules.

                 COMMUNICATIONS WITH OUTSIDE TRUSTEES/DIRECTORS

         As a regular business practice, JCC attempts to keep Directors and
Trustees informed with respect to its investment activities through reports and
other information provided to them in connection with board meetings and other
events. In addition, Janus personnel are encouraged to respond to inquiries from
Directors and Trustees, particularly as they relate to general strategy
considerations or economic or market conditions affecting Janus. However, it is
JCC's policy not to communicate specific trading information and/or advice on
specific issues to Outside Directors and Outside Trustees (i.e., no information
should be given on securities for which current activity is being considered for
Clients). Any pattern of repeated requests by such Directors or Trustees should
be reported to the Chief Compliance Officer or the Compliance Manager.

                                       4
<PAGE>   8
-------------------------------------------------------------------------------
                                 CODE OF ETHICS
-------------------------------------------------------------------------------

                                    OVERVIEW

         In general, it is unlawful for persons affiliated with investment
companies, their principal underwriters or their investment advisers to engage
in personal transactions in securities held or to be acquired by a registered
investment company, if such personal transactions are made in contravention of
rules which the SEC has adopted to prevent fraudulent, deceptive and
manipulative practices. Such rules require each registered investment company,
investment adviser and principal underwriter to adopt its own written code of
ethics containing provisions reasonably necessary to prevent its employees from
engaging in such conduct, and to maintain records, use reasonable diligence, and
institute such procedures as are reasonably necessary to prevent violations of
such code. This Code of Ethics ("Code") and information reported hereunder will
enable Janus to fulfill these requirements.

                              GENERAL PROHIBITIONS

         The following activities are prohibited for applicable Covered Persons
(remember, if you work at Janus full-time, part-time, temporarily or on a
contract basis, or you are a Trustee or Director, you are a Covered Person).
Persons who violate any prohibition may be required to disgorge any profits
realized in connection with such violation to a charitable organization selected
by the Ethics Committee and may be subject to other sanctions imposed by the
Ethics Committee, as outlined in the Penalty Guidelines.

         1.       Covered Persons may not cause a Client to take action, or to
                  fail to take action, for personal benefit, rather than to
                  benefit such Client. For example, a Covered Person would
                  violate this Code by causing a Client to purchase a security
                  owned by the Covered Person for the purpose of supporting or
                  increasing the price of that security or by causing a Client
                  to refrain from selling a security in an attempt to protect a
                  personal investment, such as an option on that security.

         2.       Covered Persons may not use knowledge of portfolio
                  transactions made or contemplated for Clients to profit, or
                  cause others to profit, by the market effect of such
                  transactions.

         3.       Covered Persons may not disclose current portfolio
                  transactions made or contemplated for Clients as well as any
                  other nonpublic information to anyone outside of Janus.

         4.       Covered Persons may not engage in fraudulent conduct in
                  connection with the purchase or sale of a Security Held or to
                  be Acquired by a Client, including without limitation:

                  1)       Employing any device, scheme or artifice to defraud
                           any Client;

                  2)       Making to any Client any untrue statement of material
                           fact or omitting to state to any Client a material
                           fact necessary in order to make the statements made,
                           in light of the circumstances under which they are
                           made, not misleading;

                  3)       Engaging in any act, practice or course of business
                           which operates or would operate as a fraud or deceit
                           upon any Client;

                  4)       Engaging in any manipulative practice with respect to
                           any Client; or

                                       5
<PAGE>   9
                  5)       Investing in derivatives to evade the restrictions of
                           this Code. Accordingly, individuals may not use
                           derivatives to take positions in securities that
                           would be otherwise prohibited by the Code if the
                           positions were taken directly.

         5.       Investment Personnel may not serve on the board of directors
                  of a publicly traded company without prior written
                  authorization from the Ethics Committee. No such service shall
                  be approved without a finding by the Ethics Committee that the
                  board service would not be inconsistent with the interests of
                  Clients. If board service is authorized by the Ethics
                  Committee, the Investment Personnel serving as director
                  normally should be isolated from those making investment
                  decisions with respect to the company involved through
                  "Chinese Walls" or other procedures.

                              TRADING RESTRICTIONS

         The trading restrictions of the Code apply to all direct or indirect
acquisitions or dispositions of Covered Securities, whether by purchase, sale,
tender offers, stock purchase plan, gift, inheritance, or otherwise. Unless
otherwise noted, the following trading restrictions are applicable to any
transaction in a Covered Security Beneficially Owned by a Covered Person.
Outside Directors and Outside Trustees are exempt from certain trading
restrictions because of their limited access to current information regarding
Client investments.

         Any disgorgement of profits required under any of the following
provisions shall be donated to a charitable organization selected by the Ethics
Committee, as outlined in the Penalty Guidelines. However, if disgorgement is
required as a result of trades by a portfolio manager that conflicted with that
manager's own Clients, disgorgement proceeds shall be paid directly to such
Clients. If disgorgement is required under more than one provision, the Ethics
Committee shall determine in its sole discretion the provision that shall
control.(1)

EXCLUDED TRANSACTIONS

         Some or all of the trading restrictions listed below do not apply to
the following transactions; however, these transactions must still be reported
to Compliance (see Reporting Requirements):

         -        Tender offer transactions are exempt from all trading
                  restrictions except preclearance.

--------
         (1) Unless otherwise noted, restrictions on personal transactions apply
to transactions involving Covered Securities, including any derivative thereof.
When determining the amount of disgorgement required with respect to a
derivative, consideration will be given to price differences in both the
derivative and the underlying securities, with the lesser amount being used for
purposes of computing disgorgement. For example, in determining whether
reimbursement is required when the applicable personal trade is in a derivative
and the Client transaction is in the underlying security, the amount shall be
calculated using the lesser of (a) the difference between the price paid or
received for the derivative and the closing bid or ask price (as appropriate)
for the derivative on the date of the Client transaction, or (b) the difference
between the last sale price, or the last bid or ask price (as appropriate) of
the underlying security on the date of the derivative transaction, and the price
received or paid by the Client for the underlying security. Neither preclearance
nor disgorgement shall be required if such person"s transaction is to close,
sell or exercise a derivative within five days of its expiration.


                                       6
<PAGE>   10
         -        The acquisition of securities through stock purchase plans are
                  exempt from all trading restrictions except preclearance, the
                  trading ban on portfolio managers and assistant portfolio
                  managers, and the seven day rule. (Note: the sales of
                  securities acquired through a stock purchase plan are subject
                  to all of the trading restrictions of the Code).

         -        The acquisition of securities through stock dividends,
                  automatic dividend reinvestment plans, stock splits, reverse
                  stock splits, mergers, consolidations, spin-offs, or other
                  similar corporate reorganizations or distributions generally
                  applicable to all holders of the same class of such securities
                  are exempt from all trading restrictions. The acquisition of
                  securities through the exercise of rights issued by an issuer
                  pro rata to all holders of a class of securities, to the
                  extent the rights were acquired in the issue are exempt from
                  all trading restrictions.

         -        Non-discretionary transactions in Company Stock (e.g., the
                  acquisition of securities through Stilwell or KCSI's Employee
                  Stock Purchase Plan ("ESPP") or the receipt of options in
                  Company Stock as part of a compensation or benefit plan) are
                  exempt from all trading restrictions. Discretionary
                  transactions in Company Stock issued by JCC are exempt from
                  all trading restrictions. Discretionary transactions in
                  Company Stock issued by Stilwell or KCSI (e.g., exercising
                  options or selling ESPP Stock) are exempt from all trading
                  restrictions except preclearance (See procedures for
                  Preclearance of Company Stock).

         -        The acquisition of securities by gift or inheritance is exempt
                  from all trading restrictions. (Note: the sales of securities
                  acquired by gift or inheritance are subject to all trading
                  restrictions of the Code).

         -        Transactions in options on and securities based on the
                  following indexes are exempt from all trading restrictions:
                  S&P 500 Index, S&P MidCap 400 Index, S&P 100 Index, FTSE 100
                  Index or Nikkei 225 Index.

DISCLOSURE OF CONFLICTS

         If an Investment Person is planning to invest or make a recommendation
to invest in a security for a Client, and such person has a material interest in
the security, such person must first disclose such interest to his or her
manager or the Chief Investment Officer. The manager or Chief Investment Office
shall conduct an independent review of the recommendation to purchase the
security for Clients. The manager or Chief Investment Officer may review the
recommendation only if he or she has no material interest in the security. A
material interest is Beneficial Ownership of any security (including
derivatives, options, warrants or rights), offices, directorships, significant
contracts, or interests or relationships that are likely to affect such person's
judgment.

PRECLEARANCE

         Access Persons (except Outside Directors and Outside Trustees) must
obtain preclearance prior to engaging in any personal transaction in Covered
Securities. (See Preclearance Procedures below).

                                       7
<PAGE>   11
TRADING BAN ON PORTFOLIO MANAGERS AND ASSISTANT PORTFOLIO MANAGERS

         Portfolio managers and their assistants are prohibited from trading
personally in Covered Securities. However, the following types of transactions
are exempt from this policy, but are subject to all applicable provisions of the
Rules, including preclearance:

         -        Purchases or sales of Company Stock;

         -        The sale of any security that is not held by any Client; and

         -        The sale of any security in order to raise capital to fund a
                  significant life event. For example, purchasing a home or
                  automobile, or paying medical or education expenses.

BAN ON IPOs AND HOT ISSUES

         Covered Persons (except Outside Directors and Outside Trustees) may not
purchase securities in an initial public offering or in a secondary offering
that constitutes a "hot issue" as defined in NASD rules. Such securities may be
purchased or received, however, where the individual has an existing right to
purchase the security based on his or her status as an investor, policyholder or
depositor of the issuer. In addition, securities issued in reorganizations are
also outside the scope of this prohibition if the transaction involves no
investment decision on the part of the Covered Person except in connection with
a shareholder vote.

60 DAY RULE

         Access Persons (except Outside Directors and Outside Trustees) shall
disgorge any profits realized in the purchase and sale, or sale and purchase, of
the same or equivalent Covered Securities within sixty (60) calendar days if a
Client held or traded the security during the sixty (60) calendar day period.

BLACKOUT PERIOD

         No Access Person may engage in a transaction in a Covered Security when
such person knows or should have known at the time there to be pending, on
behalf of any Client, a "buy" or "sell" order in that same security. The
existence of pending orders will be checked by Compliance as part of the
Preclearance process. Preclearance may be given when any pending Client order is
completely executed or withdrawn.

FIFTEEN DAY RULE

         Any Access Person (except Outside Directors and Outside Trustees) who
buys or sells a Covered Security within fifteen calendar days before such
security is bought or sold on behalf of any Client must disgorge any price
advantage realized. The price advantage shall be the favorable spread, if any,
between the price paid or received by such person and the least favorable price
paid or received by a Client during such period.(2) The Ethics Committee has the
authority by unanimous action to exempt any person from the fifteen-day rule if
such person is selling a security to raise capital to fund a significant life
event. For example, purchasing a home or automobile, or paying medical or
education expenses. In order for the Ethics

--------
         (2) Personal purchases are matched only against subsequent Client
purchases and personal sales are matched only against subsequent Client sales
for purposes of this restriction.

                                       8
<PAGE>   12
Committee to consider such exemption, the life event must occur within thirty
(30) calendar days of the security transaction, and the person must provide
written confirmation of the event.

SEVEN DAY RULE

         Any portfolio manager or assistant portfolio manager who buys or sells
a Covered Security within seven calendar days before or after he or she trades
in that security on behalf of a Client shall disgorge any profits realized on
such transaction.

SHORT SALES

         Any Access Person who sells short a Covered Security that such person
knows or should have known is held long by any Client shall disgorge any profit
realized on such transaction. This prohibition shall not apply, however, to
securities indices or derivatives thereof (such as futures contracts on the S&P
500 index). Client ownership of Covered Securities will be checked as part of
the Preclearance process.

HEDGE FUNDS, INVESTMENT CLUBS, AND OTHER INVESTMENTS

         No Access Person (except Outside Directors and Outside Trustees) may
participate in hedge funds, partnerships, investment clubs, or similar
investment vehicles, unless such person does not have any direct or indirect
influence or control over the trading. Covered Persons wishing to rely upon this
provision must submit a Certification of Non-Influence and Non-Control Form to
the Compliance Manager for approval. (See Non-Influence and Non-Control Accounts
section below.)

                             PRECLEARANCE PROCEDURES

         Access Persons must obtain preclearance for all applicable transactions
in Covered Securities in which such person has a Beneficial Interest. A
Preclearance Form must be completed and forwarded to Compliance. Compliance
shall promptly notify the person of approval or denial of the transaction.
Notification of approval or denial of the transaction may be given verbally;
however, it shall be confirmed in writing within seventy-two (72) hours of
verbal notification. When preclearance has been approved, the person then has
four business days from and including the day of first notification to execute
the trade.

GENERAL PRECLEARANCE

         General preclearance shall be obtained from an authorized person from
each of the following three groups:

-        A DESIGNATED LEGAL OR COMPLIANCE REPRESENTATIVE, who will present the
         personal investment to the attendees of the weekly investment meeting,
         whereupon an opportunity will be given to orally object. An attendee of
         the weekly investment meeting shall object to such clearance if such
         person knows of a conflict with a pending Client transaction or a
         transaction known by such attendee to be under consideration for a
         Client. Objections to such clearance should also take into account,
         among other factors, whether the investment opportunity should be
         reserved for a Client. If no objections are raised, the Designated
         Legal or Compliance Representative shall so indicate by signing the
         Preclearance Form. Such approval shall not be required for sales of
         securities not held by any Clients.

                                       9
<PAGE>   13
         In place of this authorization, Investment Personnel are required to
         obtain approvals from all Executive Investment Committee members as
         noted in the section below entitled Preclearance Requirements for
         Investment Personnel.

-        A DESIGNATED TRADING OPERATIONS REPRESENTATIVE, who may provide
         clearance if such Representative knows at the time of the request of no
         pending "buy" or "sell" order in the security on behalf of a Client and
         no such trades are known by such person to be under consideration.

-        The COMPLIANCE MANAGER, OR A DESIGNATED LEGAL OR COMPLIANCE
         REPRESENTATIVE IF THE COMPLIANCE MANAGER IS NOT AVAILABLE, who may
         provide clearance if no legal prohibitions are known by such person to
         exist with respect to the proposed trade. Approvals for such clearance
         should take into account, among other factors, the existence of any
         Watch List or Restricted List and, to the extent reasonably
         practicable, recent trading activity and holdings of Clients.

         No authorized person may preclear a transaction in which such person
has a Beneficial Interest.

PRECLEARANCE REQUIREMENTS FOR INVESTMENT PERSONNEL

         Trades by Investment Personnel may not be precleared by presentation at
the weekly investment meeting. Instead, Investment Personnel must obtain the
following management approvals. However, such approvals shall not be required
for sales of securities not held by any Clients:

         -        TRADES IN EQUITY SECURITIES require prior written approval
                  from all members of the Executive Investment Committee,
                  Investment Person's manager and either Ron Speaker or Sandy
                  Rufenacht;

         -        TRADES IN DEBT SECURITIES require prior written approval from
                  all senior fixed income portfolio managers, either Jim Craig
                  or two other Executive Investment Committee members, and
                  Investment Person's manager.

         A portfolio manager may not preclear his or her own transaction.

PRECLEARANCE OF COMPANY STOCK

         Officers of Janus and certain persons designated by Compliance who wish
to make discretionary transactions in Stilwell or KCSI securities, or
derivatives thereon, must preclear such transactions. A Company Stock
Preclearance Form must be completed and forwarded to Compliance. Compliance
shall promptly notify the person of approval or denial for the transaction.
Notification of approval or denial for the transaction may be given verbally;
however, it shall be confirmed in writing within seventy-two (72) hours of
verbal notification. When preclearance has been approved, the person then has
four business days from and including the day of first notification to execute
the trade.

         If such persons are subject to the provisions of Section 16(b) of the
Securities Exchange Act of 1934, trading will generally be allowed only in the
ten (10) business day period beginning seventy-two (72) hours after Stilwell or
KCSI files its quarterly results with the SEC (e.g., 10Q or 10K filing, not
earnings release). To preclear the trade, the Compliance Manager or such other
Representative shall discuss the transaction with Janus's General Counsel or
Chief Financial Officer.

                                       10
<PAGE>   14
PRECLEARANCE OF TENDER OFFERS AND STOCK PURCHASE PLANS

         Access Persons (other than Outside Directors and Outside Trustees) who
wish to participate in a tender offer or stock purchase plan must preclear such
trades only with the Compliance Manager prior to submitting notice to
participate in such tender offer or notice of participation in such stock
purchase plan to the applicable company. To preclear the trade, the Compliance
Manager shall consider all material factors relevant to a potential conflict of
interest between the Access Person and Clients. In addition, any increase of
$100 or more to a pre-existing stock purchase plan must be precleared.

FOUR DAY EFFECTIVE PERIOD

         Clearances to trade will be in effect for only four trading/business
days from and including the date of the last Authorized Person's signature
(which may not be provided more than one day after the first Authorized Person's
signature). For tender offers, stock purchase plans, exercise of Company Stock
and similar transactions, the date the request is submitted to the company
processing the transaction will be considered the trade date for purposes of
this requirement. Open orders, including stop loss orders, will generally not be
allowed unless such order is expected to be completed within the four day
effective period. It is necessary to re-preclear transactions not executed
within the four day effective period.

                             REPORTING REQUIREMENTS

ACCOUNT STATEMENTS

         ACCESS PERSONS (other than Outside Trustees) and REGISTERED PERSONS
must notify Compliance of each brokerage account in which they have a Beneficial
Interest and must arrange for their brokers or financial institutions to provide
to Compliance, on a timely basis, duplicate account statements and confirmations
showing all transactions in brokerage or commodities accounts in which they have
a Beneficial Interest. A Personal Brokerage Account Disclosure Form should be
completed for this purpose.

         PLEASE NOTE THAT, EVEN IF SUCH PERSON DOES NOT TRADE COVERED SECURITIES
IN A PARTICULAR BROKERAGE OR COMMODITIES ACCOUNT (E.G., TRADING MUTUAL FUNDS IN
A SCHWAB ACCOUNT), THE REPORTING OF DUPLICATE ACCOUNT STATEMENTS AND
CONFIRMATIONS IS STILL REQUIRED. HOWEVER, IF SUCH PERSON ONLY USES A PARTICULAR
BROKERAGE ACCOUNT FOR CHECKING ACCOUNT PURPOSES, AND NOT INVESTMENT PURPOSES, HE
OR SHE MAY IN LIEU OF REPORTING DUPLICATE ACCOUNT STATEMENTS, REPORT DUPLICATE
TRADE CONFIRMATIONS AND MAKE A QUARTERLY REPRESENTATION TO COMPLIANCE INDICATING
THAT NO INVESTMENT TRANSACTIONS OCCURRED IN THE ACCOUNT DURING THE CALENDAR
QUARTER. Reporting of accounts that do not allow any trading in Covered
Securities (e.g., a mutual fund account held directly with the fund sponsor) is
not required.

         Covered Persons must notify Compliance of each reportable account at
the time it is opened, and annually thereafter, including the name of the firm
and the name under which the account is carried. A Personal Brokerage Account
Disclosure Form should be completed for this purpose.

         Certain transactions might not be reported through a brokerage account,
such as private placements, inheritances or gifts. In these instances, Access
Persons must report these transactions within ten (10) calendar days using a
Personal Securities Transaction Report as noted below.

-------------------------------------------------------------------------------
Registered Persons are reminded that they must also inform any brokerage firm
with which they open an account, at the time the account is opened, that they
are registered with JDI.
-------------------------------------------------------------------------------

                                       11
<PAGE>   15
         NON-ACCESS PERSONS who engage in an aggregate of $25,000 or more of
transactions in Covered Securities within a calendar year must provide
Compliance with an Annual Transaction Report listing all such transactions in
all accounts in which such person has a Beneficial Interest. Compliance will
request this information annually and will spot check all or a portion of such
transactions or accounts.

HOLDINGS REPORTS

         ACCESS PERSONS (other than Outside Trustees) must, within ten (10)
calendar days after becoming an Access Person, provide Compliance with a
Holdings Report which lists all Covered Securities beneficially held and any
brokerage accounts through which such securities are maintained. In addition,
such persons must provide a brief description of any positions held (e.g.,
director, officer, other) with for-profit entities other than Janus. The report
must contain information current as of no more than thirty (30) calendar days
from the time the report is submitted.

PERSONAL SECURITIES TRANSACTION REPORTS

         ACCESS PERSONS (other than Outside Trustees) must provide a Personal
Securities Transaction Report within ten (10) calendar days after any month end
showing all transactions in Covered Securities for which confirmations are known
by such person to not have been timely provided to Janus, and all such
transactions that are not effected in brokerage or commodities accounts,
including without limitation non-brokered private placements, and transactions
in securities that are in certificate form, which may include gifts,
inheritances, and other transactions in Covered Securities.

         OUTSIDE TRUSTEES need only report a transaction in a Covered Security
if such person, at the time of that transaction, knew or, in the ordinary course
of fulfilling his or her official duties as a Trustee should have known, that,
during the fifteen-day period immediately preceding the date of his or her
personal transaction, such security was purchased or sold by, or was being
considered for purchase or sale on behalf of, any Janus Fund for which such
person acts as Trustee.

SUCH PERSONS MUST PROMPTLY COMPLY WITH ANY REQUEST OF THE COMPLIANCE MANAGER TO
PROVIDE TRANSACTION REPORTS REGARDLESS OF WHETHER THEIR BROKER HAS BEEN
INSTRUCTED TO PROVIDE DUPLICATE CONFIRMATIONS. SUCH REPORTS MAY BE REQUESTED,
FOR EXAMPLE, TO CHECK THAT ALL APPLICABLE CONFIRMATIONS ARE BEING RECEIVED OR TO
SUPPLEMENT THE REQUESTED CONFIRMATIONS WHERE A BROKER IS DIFFICULT TO WORK WITH
OR OTHERWISE FAILS TO PROVIDE DUPLICATE CONFIRMATIONS ON A TIMELY BASIS.

NON-INFLUENCE AND NON-CONTROL ACCOUNTS

         The Rules shall not apply to any account, partnership, or similar
investment vehicle over which a Covered Person has no direct or indirect
influence or control. Covered Persons wishing to rely upon this provision are
required to receive approval from the Ethics Committee. In order to request such
approval, a Certification of Non-Influence and Non-Control Form must be
submitted to the Compliance Manager.

         Any account beneficially owned by a Covered Person that is managed by
JCC in a discretionary capacity is not covered by these Rules so long as such
person has no direct or indirect influence or control over the account. The
employment relationship between the account-holder and the individual managing
the


                                       12
<PAGE>   16
account, in the absence of other facts indicating control, will not be deemed to
give such account-holder influence or control over the account.

                              OTHER REQUIRED FORMS

         In addition to the Preclearance Form, Preclearance Form for Company
Stock, Personal Brokerage Account Disclosure Form, Holdings Report, Report of
Personal Securities Transactions, Annual Transaction Report, and Certification
of Non-Influence and Non-Control Form discussed above, the following forms
(available through Lotus Notes) must be completed if applicable to you:

ACKNOWLEDGMENT OF RECEIPT FORM

         Each Covered Person must provide Compliance with an Acknowledgment of
Receipt Form within ten (10) calendar days of commencement of employment or
other services certifying that he or she has received a current copy of the
Rules and acknowledges, as a condition of employment, that he or she will comply
with the Rules in their entirety.

ANNUAL CERTIFICATION FORM

         Each Covered Person must provide Compliance annually within thirty (30)
calendar days from date of request with an Annual Certification Form certifying
that he or she:

         1)       Has received, read and understands the Rules;

         2)       Has complied with the requirements of the Rules; and

         3)       Has disclosed or reported all open brokerage and commodities
                  accounts, personal holdings and personal securities
                  transactions required to be disclosed or reported pursuant to
                  the requirements of the Rules.

OUTSIDE DIRECTOR/TRUSTEE REPRESENTATION FORM

         All Outside Directors and Outside Trustees must, upon commencement of
services and annually thereafter, provide Compliance with an Outside
Director/Trustee Representation Form. The Form declares that such persons agree
to refrain from trading in any securities when they are in possession of any
information regarding trading recommendations made or proposed to be made to any
Client by Janus or its officers or employees.

                                       13
<PAGE>   17
-------------------------------------------------------------------------------
                             INSIDER TRADING POLICY
-------------------------------------------------------------------------------

                             BACKGROUND INFORMATION

         The term "insider trading" is not defined in the federal securities
statutes, but generally is used to refer to the use of material nonpublic
information to trade in securities (whether or not one is an "insider") or to
communications of material nonpublic information to others.

         While the law concerning insider trading can be complex and unclear,
you should assume that the law prohibits:

         -        Trading by an insider, while in possession of material
                  nonpublic information,

         -        Trading by a non-insider, while in possession of material
                  nonpublic information, where the information was disclosed to
                  the non-insider (either directly or through one or more
                  intermediaries) in violation of an insider's duty to keep it
                  confidential,

         -        Communicating material nonpublic information to others in
                  breach of a duty not to disclose such information, and

         -        Misappropriating confidential information for securities
                  trading purposes, in breach of a duty owed to the source of
                  the information to keep the information confidential.

         Trading based on material nonpublic information about an issuer does
not violate this policy unless the trader (i) is an "insider" with respect to an
issuer; (ii) receives the information from an insider or from someone that the
trader knows received the information from an insider, either directly or
indirectly, or (iii) misappropriates the nonpublic information or obtains or
misuses it in breach of a duty of trust and confidence owed to the source of the
information. Accordingly, trading based on material nonpublic information about
an issuer can be, but is not necessarily, a violation of this Policy. Trading
while in possession of material nonpublic information relating to a tender offer
is prohibited under this Policy regardless of how such information was obtained.

         Application of the law of insider trading to particular transactions
can be difficult, particularly if it involves a determination about trading
based on material nonpublic information. You legitimately may be uncertain about
the application of this Policy in particular circumstances. If you have any
questions regarding the application of the Policy or you have any reason to
believe that a violation of the Policy has occurred or is about to occur, you
should contact the Chief Compliance Officer or the Compliance Manager.

         The following discussion is intended to help you understand the
principal concepts involved in insider trading.


                                       14
<PAGE>   18
WHO IS AN INSIDER?

         The concept of "insider" is broad. It includes officers, directors and
employees of a company. In addition, a person can be a "temporary insider" if he
or she enters into a special confidential relationship in the conduct of a
company's affairs and as a result is given access to information solely for the
company's purposes. A temporary insider can include, among others, a company's
attorneys, accountants, consultants, bank lending officers, and the employees of
such organizations. In addition, one or more of the Janus entities may become a
temporary insider of a company it advises or for which it performs other
services. To be considered an insider, the company must expect the outsider to
keep the disclosed nonpublic information confidential and/or the relationship
must at least imply such a duty.

WHEN IS INFORMATION NONPUBLIC?

         Information remains nonpublic until it has been made public.
Information becomes public when it has been effectively communicated to the
marketplace, such as by a public filing with the SEC or other governmental
agency, inclusion in the Dow Jones "tape" or publication in The Wall Street
Journal or another publication of general circulation. Moreover, sufficient time
must have passed so that the information has been disseminated widely.

WHAT IS MATERIAL INFORMATION?

         Trading on inside information is not a basis for liability unless the
information is material. "Material information" generally means information for
which there is a substantial likelihood that a reasonable investor would
consider it important in making his or her investment decisions, or information
that is reasonably certain to have a substantial effect on the price of a
company's securities. Information that should be considered material includes,
but is not limited to: dividend changes, earnings estimates, changes in
previously released earnings estimates, significant merger or acquisition
proposals or agreements, major litigation, liquidation problems, and
extraordinary management developments.

         Material information may also relate to the market for a company's
securities. Information about a significant order to purchase or sell securities
may, in some contexts, be deemed material. Similarly, prepublication information
regarding reports in the financial press also may be deemed material. For
example, the Supreme Court upheld the criminal convictions of insider trading
defendants who capitalized on prepublication information about The Wall Street
Journal's "Heard on the Street" column.

WHEN IS INFORMATION MISAPPROPRIATED?

         The misappropriation theory prohibits trading on the basis of
non-public information by a corporate "outsider" in breach of a duty owed not to
a trading party, but to the source of confidential information. Misappropriation
of information occurs when a person obtains the non-public information through
deception or in breach of a duty of trust and loyalty to the source of the
information.

                                       15
<PAGE>   19
PENALTIES FOR INSIDER TRADING

         Penalties for trading on or communicating material nonpublic
information are severe, both for individuals involved in such unlawful conduct
and their employers or other controlling persons. A person can be subject to
some or all of the penalties below even if he or she does not personally benefit
from the violation. Penalties include:

         -        Civil injunctions

         -        Treble damages

         -        Disgorgement of profits

         -        Jail sentences for up to 10 years

         -        Fines up to $1,000,000 (or $2,500,000 for corporations and
                  other entities)

         -        Civil penalties for the person who committed the violation of
                  up to three times the profit gained or loss avoided, whether
                  or not the person actually benefited, and

         -        Civil penalties for the employer or other controlling person
                  of up to the greater of $1,000,000 or three times the amount
                  of the profit gained or loss avoided.

         In addition, any violation of the law may result in serious sanctions
by Janus, including termination of employment.

WHO IS A CONTROLLING PERSON?

         Included as controlling persons are Janus and its Directors, Trustees
and officers. If you are a Director, Trustee or officer, you have a duty to act
to prevent insider trading. Failure to fulfill such a duty may result in
penalties as described above.

                         PROCEDURES TO IMPLEMENT POLICY

         The following procedures have been established to aid the Directors,
Trustees, officers and employees of Janus in avoiding insider trading, and to
aid Janus in preventing, detecting and imposing sanctions against insider
trading.

IDENTIFYING MATERIAL INSIDE INFORMATION

         Before trading for yourself or others, including the Janus Funds or
other Clients, in the securities of a company about which you may have potential
inside information, ask yourself the following questions:

         -        To whom has this information been provided? Has the
                  information been effectively communicated to the marketplace?

                                       16
<PAGE>   20
         -        Has this information been obtained from either the issuer or
                  from another source in breach of a duty to that source to keep
                  the information confidential?

         -        Is the information material? Is this information that an
                  investor would consider important in making his or her
                  investment decisions? Is this information that would affect
                  the market price of the securities if generally disclosed?

         Special caution should be taken with respect to potential inside
information regarding JCC. Although JCC's shares are not publicly traded, JCC's
parent, KCSI, is a publicly traded company. KCSI owns 82% of the stock of JCC.
As a result, potential inside information regarding JCC may affect trading in
KCSI stock and should be reported pursuant to the procedures set forth below.
The following is a non-exclusive list of situations that Investment Personnel
should report immediately pursuant to the procedures below: (i) participation in
private placements; (ii) the receipt of any information from an issuer pursuant
to a confidentiality agreement; (iii) participation on or receipt of information
from a bankruptcy committee of an issuer; and (iv) receipt of information
regarding earnings or sales figures in advance of the public release of those
numbers.

REPORTING INSIDE INFORMATION

         If, after consideration of the above, you believe that the information
is material and nonpublic, or if you have questions as to whether the
information is material and nonpublic, you should take the following steps:

         -        Do not purchase or sell the securities on behalf of yourself
                  or others, including Clients.

         -        Do not communicate the information inside or outside of Janus,
                  other than to the Chief Compliance Officer or the Compliance
                  Manager.

         -        Immediately advise the Chief Compliance Officer or Compliance
                  Manager of the nature and source of such information. The
                  Chief Compliance Officer or Compliance Manager will review the
                  information with the Ethics Committee.

         -        Depending upon the determination made by the Ethics Committee,
                  or by the Chief Compliance Officer until the Committee can be
                  convened, you may be instructed to continue the prohibition
                  against trading and communication and the Compliance Manager
                  will place the security on a Restricted List or Watch List, as
                  described below. Alternatively, if it is determined that the
                  information obtained is not material nonpublic information,
                  you may be allowed to trade and communicate the information.

WATCH AND RESTRICTED LISTS

         Whenever the Ethics Committee or the Chief Compliance Officer
determines that a Director, Trustee, officer or employee of Janus is in
possession of material nonpublic information with respect to a company
(regardless of whether it is currently owned by any Client) such company will
either be placed on a Watch List or on a Restricted List.


                                       17
<PAGE>   21
WATCH LIST

         If the security is placed on a Watch List, the flow of the information
to other Janus personnel will be restricted in order to allow such persons to
continue their ordinary investment activities. This procedure is commonly
referred to as a "Chinese Wall."

RESTRICTED LIST

         If the Ethics Committee or the Chief Compliance Officer determines that
material nonpublic information is in the possession of a Director, Trustee,
officer, or employee of Janus and cannot be adequately isolated through the use
of a Chinese Wall, the company will be placed on the Restricted List. While a
company is on the Restricted List, no Investment Person shall initiate or
recommend any transaction in any Client account, and no Access Person shall be
precleared to transact in any account in which he or she has a beneficial
interest, with respect to the securities of such company. The Ethics Committee
or the Chief Compliance Officer will also have the discretion of placing a
company on the Restricted List even though no "break in the Chinese Wall" has or
is expected to occur with respect to the material nonpublic information about
the company. Such action may be taken by such persons for the purpose of
avoiding any appearance of the misuse of material nonpublic information.

         The Ethics Committee or the Chief Compliance Officer will be
responsible for determining whether to remove a particular company from the
Watch List or Restricted List. The only persons who will have access to the
Watch List or Restricted List are members of the Ethics Committee, Designated
Legal or Compliance Representatives and such persons who are affected by the
information. The Watch List and Restricted List are highly confidential and
should, under no circumstances, be discussed with or disseminated to anyone
other than the persons noted above.

PROTECTING INFORMATION

         Directors, Trustees, officers and employees of Janus shall not disclose
any nonpublic information (whether or not it is material) relating to Janus or
its securities transactions to any person outside Janus (unless such disclosure
has been authorized by the Chief Compliance Officer). Material nonpublic
information may not be communicated to anyone, including any Director, Trustee,
officer or employee of Janus, except as provided in this Policy. Access to such
information must be restricted. For example, access to files containing material
nonpublic information and computer files containing such information should be
restricted, and conversations containing such information, if appropriate at
all, should be conducted in private.

         To insure the integrity of the Chinese Wall and to avoid unintended
disclosures, it is important that all employees take the following steps with
respect to confidential or nonpublic information:

         -        Do not discuss confidential information in public places such
                  as elevators, hallways or social gatherings.

         -        To the extent practical, limit access to the areas of the firm
                  where confidential information could be observed or overheard
                  to employees with a business need for being in the area.

         -        Avoid use of speakerphones in areas where unauthorized persons
                  may overhear conversations.

                                       18
<PAGE>   22
         -        Avoid use of wireless and cellular phones, or other means of
                  communication, which may be intercepted.

         -        Where appropriate, maintain the confidentiality of Client
                  identities by using code names or numbers for confidential
                  projects.

         -        Exercise care to avoid placing documents containing
                  confidential information in areas where they may be read by
                  unauthorized persons and to store such documents in secure
                  locations when they are not in use.

         -        Destroy copies of confidential documents no longer needed for
                  a project unless required to be saved pursuant to applicable
                  record keeping policies or requirements.

RESPONSIBILITY TO MONITOR TRANSACTIONS

         Compliance will monitor transactions of Clients and employees for which
reports are received to detect the existence of any unusual trading activities
with respect to companies on the Watch and Restricted Lists. Compliance will
immediately report any unusual trading activity directly to the Compliance
Manager, and in his or her absence, the Chief Compliance Officer, who will be
responsible for determining what, if any, action should be taken.

RECORD RETENTION

         Compliance shall maintain copies of the Watch List and Restricted List
for a minimum of six years.

TENDER OFFERS

         Tender offers represent a particular concern in the law of insider
trading for two reasons. First, tender offer activity often produces
extraordinary fluctuations in the price of the target company's securities.
Trading during this time period is more likely to attract regulatory attention
(and produces a disproportionate percentage of insider trading cases). Second,
the SEC has adopted a rule which expressly forbids trading and "tipping" while
in possession of material nonpublic information regarding a tender offer
received from the tender offeror, the target company or anyone acting on behalf
of either. Janus employees and others subject to this Policy should exercise
particular caution any time they become aware of nonpublic information relating
to a tender offer.


                                       19
<PAGE>   23
-------------------------------------------------------------------------------
                                   GIFT POLICY
-------------------------------------------------------------------------------

         Gifts may be given (or accepted) only if they are in accordance with
normally accepted business practices and do not raise any question of
impropriety. A question of impropriety may be raised if a gift influences or
gives the appearance of influencing the recipient. The following outlines
Janus's policy on giving and receiving gifts to help us maintain those standards
and is applicable to all Inside Directors and Inside Trustees, officers and
employees of Janus.

                                   GIFT GIVING

         Neither you nor members of your immediate family may give any gift,
series of gifts, or other thing of value, including cash, loans, personal
services, or special discounts ("Gifts") in excess of $100 per year to any
Client or any one person or entity that does or seeks to do business with or on
behalf of Janus or any Client (collectively referred to herein as "Business
Relationships").

                                 GIFT RECEIVING

         Neither you nor members of your immediate family may receive any Gift
of material value from any single Business Relationship. A Gift will be
considered material in value if it influences or gives the appearance of
influencing the recipient.

         In the event the aggregate fair market value of all Gifts received by
you from any single Business Relationship is estimated to exceed $250 in any
12-month period, you must immediately notify your manager. Managers that receive
such notification must report this information to the Compliance Manager if it
appears that such Gifts may have improperly influenced the receiver. If the Gift
is made in connection with the sale or distribution of registered investment
company or variable contract securities, the aggregate fair market value of all
such Gifts received by you from any single Business Relationship may never
exceed $100 in any 12-month period.

         Occasionally, Janus employees are invited to attend or participate in
conferences, tour a company's facilities, or meet with representatives of a
company. Such invitations may involve traveling and may require overnight
lodging. Generally, Janus must pay for all travel and lodging expenses provided
in connection with such activities. However, if appropriate, and with prior
approval from your manager, you may accept travel related amenities if the costs
are considered insubstantial and are not readily ascertainable.

         The solicitation of a Gift is prohibited (i.e., you may not request a
Gift, such as tickets to a sporting event, be given to you).

                          CUSTOMARY BUSINESS AMENITIES

         Customary business amenities are not considered Gifts so long as such
amenities are business related (e.g., if you are accepting tickets to a sporting
event, the offerer must go with you), reasonable in cost, appropriate as to time
and place, and neither so frequent nor so costly as to raise any question of
impropriety. Customary business amenities which you and, if appropriate, your
guests, may accept (or give) include an occasional meal, a ticket to a sporting
event or the theater, greens fees, an invitation to a reception or cocktail
party, or comparable entertainment.


                                       20
<PAGE>   24
-------------------------------------------------------------------------------
                            OUTSIDE EMPLOYMENT POLICY
-------------------------------------------------------------------------------

         No Inside Director, Inside Trustee, officer or employee of Janus shall
accept employment or compensation as a result of any business activity (other
than a passive investment), outside the scope of his relationship with Janus
unless such person has provided prompt written notice of such employment or
compensation to the Chief Compliance Officer (or, for Registered Persons, to
JDI's Operations Manager), and, in the case of securities-related employment or
compensation, has received the prior written approval of the Ethics Committee.
Registered Persons are reminded to update and submit their Outside Business
Activity Disclosure forms as appropriate pursuant to JDI's Written Supervisory
Procedures and applicable NASD rules.


                                       21
<PAGE>   25
-------------------------------------------------------------------------------
                               PENALTY GUIDELINES
-------------------------------------------------------------------------------

                                    OVERVIEW

         Covered Persons who violate any of the requirements, restrictions, or
prohibitions of the Rules may be subject to sanctions imposed by the Ethics
Committee. The following guidelines shall be used by the Compliance Manager for
recommending remedial actions for Covered Persons who violate prohibitions or
disregard requirements of the Rules. Deviations from the Fifteen-Day Rule are
not considered to be violations under the Rules and, therefore, are not subject
to the penalty guidelines.

         Upon learning of a potential deviation from, or violation of the Rules,
the Compliance Manager will provide a written recommendation of remedial action
to the Ethics Committee. The Ethics Committee has full discretion to approve
such recommendation or impose other sanctions it deems appropriate. The Ethics
Committee will take into consideration, among other things, whether the
violation was a technical violation of the Rules or inadvertent oversight (i.e.,
ill-gotten profits versus general oversight). The guidelines are designed to
promote consistency and uniformity in the imposition of sanctions and
disciplinary matters.

                               PENALTY GUIDELINES

         Outlined below are the guidelines for the sanctions that may be imposed
on Covered Persons who fail to comply with the Rules:

         -        1st violation- Compliance will send a memorandum of reprimand
                  to the person, copying his or her supervisor. The memorandum
                  will generally reinforce the person's responsibilities under
                  the Rules, educate the person on the severity of personal
                  trading violations and inform the person of the possible
                  penalties for future violations of the Rules;

         -        2nd violation- Janus's Chief Investment Officer, James Craig,
                  will meet with the person to discuss the violations in detail
                  and will reinforce the importance of complying with the Rules;

         -        3rd violation- Janus's Chairman of the Board, Thomas Bailey,
                  will meet with the person to discuss the violations in detail
                  and will reinforce the importance of complying with the Rules;

         -        4th violation- The Executive Committee will impose such
                  sanctions as it deems appropriate, including without
                  limitation, a letter of censure, fines, withholding of bonus
                  payments, or suspension or termination of employment or
                  personal trading privileges.

         In addition to the above disciplinary sanctions, such persons may be
required to disgorge any profits realized in connection with such violation. All
disgorgement proceeds collected will be donated to a charitable organization
selected by the Ethics Committee. The Ethics Committee may determine to impose
any of the sanctions set forth in item 4 above, including termination,
immediately and without notice if it determines that the severity of any
violation or violations warrants such action. All sanctions imposed will be
documented in such person's personal trading file maintained by Janus, and will
be reported to the Executive Committee.


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                      SUPERVISORY AND COMPLIANCE PROCEDURES
-------------------------------------------------------------------------------

         The Chief Compliance Officer and Compliance Manager are responsible for
implementing supervisory and compliance review procedures. Supervisory
procedures can be divided into two classifications: prevention of violations and
detection of violations. Compliance review procedures include preparation of
special and annual reports, record maintenance and review, and confidentiality
preservation.

                             SUPERVISORY PROCEDURES

PREVENTION OF VIOLATIONS

         To prevent violations of the Rules, the Compliance Manager should, in
addition to enforcing the procedures outlined in the Rules:

         1.       Review and update the Rules as necessary, at least once
                  annually, including but not limited to a review of the Code by
                  the Chief Compliance Officer, the Ethics Committee and/or
                  counsel;

         2.       Answer questions regarding the Rules, or refer the same to the
                  Chief Compliance Officer;

         3.       Request from all persons upon commencement of services, and
                  annually thereafter, any applicable forms and reports as
                  required by the Rules;

         4.       Identify all Access Persons and notify them of their
                  responsibilities and reporting requirements;

         5.       Write letters to the securities firms requesting duplicate
                  confirmations and account statements where necessary; and

         6.       With such assistance from the Human Resources Department as
                  may be appropriate, maintain a continuing education program
                  consisting of the following:

                  1)       Orienting Covered Persons who are new to Janus to the
                           Rules, and

                  2)       Further educating Covered Persons by distributing
                           memos or other materials that may be issued by
                           outside organizations such as the Investment Company
                           Institute discussing the issue of insider trading and
                           other issues raised by the Rules.

DETECTION OF VIOLATIONS

         To detect violations of these Rules, the Compliance Manager should, in
addition to enforcing the procedures outlined in the Rules:

         -        Implement procedures to review holding and transaction
                  reports, confirmations, forms and statements relative to
                  applicable restrictions, as provided under the Code; and

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<PAGE>   27
         -        Implement procedures to review the Restricted and Watch Lists
                  relative to applicable personal and Client trading activity,
                  as provided under the Policy.

         Spot checks of certain information are permitted as noted under the
Code.

                              COMPLIANCE PROCEDURES

REPORTS OF POTENTIAL DEVIATIONS OR VIOLATIONS

         Upon learning of a potential deviation from, or violation of the Rules,
the Compliance Manager shall report such violation to the Chief Compliance
Officer, together with all documents relating to the matter. The Chief
Compliance Officer shall either present the information at the next regular
meeting of the Ethics Committee, or conduct a special meeting. The Ethics
Committee shall thereafter take such action as it deems appropriate (see Penalty
Guidelines).

ANNUAL REPORTS

         The Compliance Manager shall prepare a written report to the Ethics
Committee and the Trustees at least annually. The written report to the Trustees
shall include any certification required by Rule 17j-1. This report shall set
forth the following information, and shall be confidential:

         -        Copies of the Rules, as revised, including a summary of any
                  changes made since the last report;

         -        Identification of any material issues arising under the Rules
                  including material violations requiring significant remedial
                  action since the last report;

         -        Identification of any material conflicts that arose since the
                  last report; and

         -        Recommendations, if any, regarding changes in existing
                  restrictions or procedures based upon Janus's experience under
                  these Rules, evolving industry practices, or developments in
                  applicable laws or regulations.

         The Trustees must initially approve these Rules within the time frame
required by Rule 17-1. Any material changes to these Rules must be approved
within six months.

RECORDS

         Compliance shall maintain the following records on behalf of each Janus
entity:

         -        A copy of this Code and any amendment thereof which is or at
                  any time within the past five years has been in effect.

         -        A record of any violation of this Code, or any amendment
                  thereof, and of any action taken as a result of such
                  violation.

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<PAGE>   28
         -        Files for personal securities transaction confirmations and
                  account statements, all reports and other forms submitted by
                  Covered Persons pursuant to these Rules and any other
                  pertinent information.

         -        A list of all persons who are, or have been, required to make
                  reports pursuant to these Rules.

         -        A list of persons who are, or within the last five years have
                  been responsible for, reviewing transaction and holdings
                  reports.

         -        A copy of each report made to the Trustees pursuant to this
                  Code.

INSPECTION

         The records and reports maintained by Compliance pursuant to the Rules
shall at all times be available for inspection, without prior notice, by any
member of the Ethics Committee.

CONFIDENTIALITY

         All procedures, reports and records monitored, prepared or maintained
pursuant to these Rules shall be considered confidential and proprietary to
Janus and shall be maintained and protected accordingly. Except as otherwise
required by law or this Policy, such matters shall not be disclosed to anyone
other than to members of the Ethics Committee, as requested.

FILING OF REPORTS

         To the extent that any report, form acknowledgment or other document is
required to be in writing and signed, such documents may be submitted in by
e-mail or other electronic form approved by Compliance. Any report filed with
the Chief Compliance Officer or Compliance Manager of JCC shall be deemed filed
with the Janus Funds.

                              THE ETHICS COMMITTEE

         The purpose of this Section is to describe the Ethics Committee. The
Ethics Committee is created to provide an effective mechanism for monitoring
compliance with the standards and procedures contained in the Rules and to take
appropriate action at such times as violations or potential violations are
discovered.

MEMBERSHIP OF THE COMMITTEE

         The Committee consists of Thomas A. Early, Vice President and General
Counsel; Steven R. Goodbarn, Vice President of Finance, Treasurer and Chief
Financial Officer; David Kowalski, Vice President and Chief Compliance Officer;
and Ernie C. Overholt, Compliance Manager. The Compliance Manager currently
serves as the Chairman of the Committee. The composition of the Committee may be
changed from time to time.

COMMITTEE MEETINGS

         The Committee shall generally meet every four months or as often as
necessary to review operation of the compliance program and to consider
technical deviations from operational procedures, inadvertent oversights, or any
other potential violation of the Rules. Deviations alternatively may be
addressed by including them in the employee's personnel records maintained by
Janus. Committee meetings are primarily


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<PAGE>   29
intended for consideration of the general operation of the compliance program
and substantive or serious departures from standards and procedures in the
Rules.

         Such other persons may attend a Committee meeting, at the discretion of
the Committee, as the Committee shall deem appropriate. Any individual whose
conduct has given rise to the meeting also may be called upon, but shall not
have the right, to appear before the Committee.

         It is not required that minutes of Committee meetings be maintained; in
lieu of minutes the Committee may issue a report describing any action taken.
The report shall be included in the confidential file maintained by the
Compliance Manager with respect to the particular employee or employees whose
conduct has been the subject of the meeting.

SPECIAL DISCRETION

         The Committee shall have the authority by unanimous action to exempt
any person or class of persons or transaction or class of transactions from all
or a portion of the Rules, provided that:

         -        The Committee determines, on advice of counsel, that the
                  particular application of all or a portion of the Rules is not
                  legally required;

         -        The Committee determines that the likelihood of any abuse of
                  the Rules by such exempted person(s) or as a result of such
                  exempted transaction is remote;

         -        The terms or conditions upon which any such exemption is
                  granted is evidenced in writing; and

         -        The exempted person(s) agrees to execute and deliver to the
                  Compliance Manager, at least annually, a signed Acknowledgment
                  Form, which Acknowledgment shall, by operation of this
                  provision, include such exemptions and the terms and
                  conditions upon which it was granted.

         The Committee shall also have the authority by unanimous action to
impose such additional requirements or restrictions as it, in its sole
discretion, determines appropriate or necessary, as outlined in the Penalty
Guidelines.

         Any exemption, and any additional requirement or restriction, may be
withdrawn by the Committee at any time (such withdrawal action is not required
to be unanimous).


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                   GENERAL INFORMATION ABOUT THE ETHICS RULES
-------------------------------------------------------------------------------

DESIGNEES

         The Compliance Manager and the Chief Compliance Officer may appoint
designees to carry out their functions pursuant to these Rules.

ENFORCEMENT

         In addition to the penalties described in the Penalty Guidelines and
elsewhere in the Rules, upon discovering a violation of the Rules, the Janus
entity with which you are associated may impose such sanctions as it deems
appropriate, including without limitation, a letter of censure or suspension or
termination of employment or personal trading privileges of the violator. All
material violations of the Rules and any sanctions imposed with respect thereto
shall be reported periodically to the Directors and Trustees and the directors
of any other Janus entity which has been directly affected by the violation.

INTERNAL USE

         The Rules are intended solely for internal use by Janus and do not
constitute an admission, by or on behalf of such companies, their controlling
persons or persons they control, as to any fact, circumstance or legal
conclusion. The Rules are not intended to evidence, describe or define any
relationship of control between or among any persons. Further, the Rules are not
intended to form the basis for describing or defining any conduct by a person
that should result in such person being liable to any other person, except
insofar as the conduct of such person in violation of the Rules may constitute
sufficient cause for Janus to terminate or otherwise adversely affect such
person's relationship with Janus.


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