WADDELL & REED ADVISORS GLOBAL BOND FUND INC
485BPOS, EX-99.B(P), 2000-12-14
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                                                                EX-99.B(p)gbcode




                                 CODE OF ETHICS


                         Waddell & Reed Financial, Inc.
                              Waddell & Reed, Inc.
                  Waddell & Reed Investment Management Company
                         Austin, Calvert & Flavin, Inc.
                    Fiduciary Trust Company of New Hampshire
                          Waddell & Reed Advisors Funds
                                W & R Funds, Inc.
                             W&R Target Funds, Inc.








                                                   As Revised: November 15, 2000


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1.   PREFACE

Rule 17j-1 of the Investment Company Act of 1940 (the "Act") requires registered
investment companies and their investment advisers and principal underwriters to
adopt codes of ethics and certain other requirements to prevent fraudulent,
deceptive and manipulative practices. Each investment company in Waddell & Reed
Advisors Funds, W & R Funds, Inc. and W&R Target Funds, Inc. (each a "Fund," and
collectively the "Funds") is registered as an open-end management investment
company under the Act. Waddell & Reed, Inc. ("W&R") is the principal underwriter
of each of the Funds. Waddell & Reed Investment Management Company ("WRIMCO") is
the investment adviser of the Funds and may also serve as investment adviser to
institutional clients other than the Funds. Austin, Calvert & Flavin, Inc.
("ACF") is a subsidiary of WRIMCO and serves as investment adviser to
individuals and institutional clients other than the Funds. Fiduciary Trust
Company of New Hampshire ("FTC"), is a trust company and a subsidiary of W&R;
Waddell & Reed Financial, Inc. ("WDR") is the public holding company. Except as
otherwise specified herein, this Code applies to all employees, officers and
directors of W&R, WRIMCO, ACF and the Funds, (collectively, the "Companies").

This Code of Ethics (the "Code") is based on the principle that the officers,
directors and employees of the Companies have a fiduciary duty to place the
interests of their respective advisory clients first, to conduct all personal
securities transactions consistently with this Code and in such a manner as to
avoid any actual or potential conflict of interest or any abuse of their
position of trust and responsibility, and to conduct their personal securities
transactions in a manner which does not interfere with the portfolio
transactions of any advisory client or otherwise take unfair advantage of their
relationship to any advisory client. Persons covered by this Code must adhere to
this general principle as well as comply with the specific provisions of this
Code. Technical compliance with this Code will not insulate from scrutiny trades
which indicate an abuse of an individual's fiduciary duties to any advisory
client.

This Code has been approved, and any material change to it must be approved, by
each Fund's board of directors, including a majority of the Fund's Disinterested
directors.


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2.   DEFINITIONS

"Access Person" means (i) any employee, director, officer or general partner of
a Fund, W&R, WRIMCO or ACF, (ii) any director or officer of FTC or WDR or any
employee of any company in a control relationship to the Companies who, in the
ordinary course of his or her business, makes, participates in or obtains
information regarding the purchase or sale of securities for an advisory client
or whose principal function or duties relate to the making of any recommendation
to an advisory client regarding the purchase or sale of securities and (iii) any
natural person in a control relationship to the Companies who obtains
information concerning recommendations made to an advisory client with regard to
the purchase or sale of a security. A natural person in a control relationship
or an employee of a company in a control relationship does not become an "Access
Person" simply by virtue of the following: normally assisting in the preparation
of public reports, but not receiving information about CURRENT recommendations
or trading; or a single instance of obtaining knowledge of current
recommendations or trading activity, or infrequently and inadvertently obtaining
such knowledge. The Legal Department, in cooperation with department heads, is
responsible for determining who are Access Persons.

"Advisory Client" means any client (including both investment companies and
managed accounts) for which WRIMCO or ACF serves as an investment adviser,
renders investment advice or makes investment decisions.

A security is "being considered for purchase or sale" when the order to purchase
or sell such security has been given to the trading room, or prior thereto when,
in the opinion of the portfolio manager or division head, a decision, whether or
not conditional, has been made (even though not yet implemented) to make the
purchase or sale, or when the decision-making process has reached a point where
such a decision is imminent.

"Beneficial Ownership" shall be interpreted in the same manner as it would be
under Rule 16a-1(a)(2) under the Securities Exchange Act of 1934 in determining
whether a person is the beneficial owner of a security for purposes of Section
16 of the Securities Exchange Act of 1934. (See Appendix A for a more complete
description.)

"Control" shall have the same meaning as that set forth in Section 2(a)(9) of
the Act.


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"De Minimis Transaction" means a transaction in an equity security (or an
equivalent security) which is equal to or less than 300 shares, or is a
fixed-income security (or an equivalent security) which is equal to or less than
$15,000 principal amount. Purchases and sales, as the case may be, in the same
security or an equivalent security within 30 days will be aggregated for
purposes of determining if the transaction meets the definition of a De Minimis
Transaction.

"Disinterested Director" means a director who is not an "interested person"
within the meaning of Section 2(a)(19) of the Act.

"Equivalent Security" means any security issued by the same entity as the issuer
of a subject security, including options, rights, warrants, preferred stock,
restricted stock, phantom stock, bonds and other obligations of that company, or
security convertible into another security.

"Immediate Family" of an individual means any of the following persons who
reside in the same household as the individual:

         child                      grandparent               son-in-law
         stepchild                  spouse                    daughter-in-law
         grandchild                 sibling                   brother-in-law
         parent                     mother-in-law             sister-in-law
         stepparent                 father-in-law

Immediate Family includes adoptive relationships and any other relationship
(whether or not recognized by law) which the Legal Department determines could
lead to possible conflicts of interest, diversions of corporate opportunity, or
appearances of impropriety which this Code is intended to prevent.

"Investment Personnel" means those employees who provide information and advice
to a portfolio manager or who help execute the portfolio manager's decisions.

"Large Cap Transaction" means a purchase or sale of securities issued by (or
equivalent securities with respect to) companies with market capitalization of
at least $2.5 billion.


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"Non-Affiliated Director" is a Director that is not an affiliated person of W&R.

"Portfolio Manager" means those employees entrusted with the direct
responsibility and authority to make investment decisions affecting an Advisory
Client.

"Purchase or sale of a security" includes, without limitation, the writing,
purchase or exercise of an option to purchase or sell a security, conversions of
convertible securities and short sales.

"Security" shall have the meaning set forth in Section 2(a)(36) of the Act,
except that it shall not include shares of registered open-end investment
companies, securities issued by the Government of the United States, short-term
debt securities which are "government securities" within the meaning of Section
2(a)(16) of the Act, bankers' acceptances, bank certificates of deposit,
commercial paper, high quality short-term debt instruments, including repurchase
agreements, and such other money market instruments as are designated by the
boards of directors of the Companies.

Security does not include futures contracts or options on futures contracts
(provided these instruments are not used to indirectly acquire an interest which
would be prohibited under this Code), but the purchase and sale of such
instruments are nevertheless subject to the reporting requirements of this Code.

"Security held or to be acquired" by an Advisory Client means (a) any security
which, within the most recent 15 days, (i) is or has been held by an Advisory
Client or (ii) is being or has been considered for purchase by an Advisory
Client, and (b) any option to purchase or sell, and any security convertible
into or exchangeable into, a security described in the preceding clause (a).

3.   PRE-CLEARANCE REQUIREMENTS

Except as otherwise specified in this Code, all Access Persons, except a
Non-Affiliated Director or a member of his or her Immediate Family, shall clear
in advance through the Legal Department any purchase or sale, direct or
indirect, of any Security in which such Access Person has, or by reason of such
transaction acquires, any direct or indirect Beneficial Ownership; provided,
however, that an Access Person shall not be required to


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clear transactions effected for securities held in any account over which such
Access Person does not have any direct or indirect influence or control.

For accounts affiliated with Waddell & Reed, Inc. or any of its affiliates or
related companies ("affiliated accounts"), WRIMCO must clear in advance
purchases of equity securities in initial public offerings only.

Except as otherwise provided in Section 5, the Legal Department will not grant
clearance for any purchase by an Access Person if the Security is currently
being considered for purchase or being purchased by any Advisory Client or for
sale by an Access Person if currently being considered for sale or being sold by
any Advisory Client. If the Security proposed to be purchased or sold by the
Access Person is an option, clearance will not be granted if the securities
subject to the option are being considered for purchase or sale as indicated
above. If the Security proposed to be purchased or sold is a convertible
security, clearance will not be granted if either that security or the
securities into which it is convertible are being considered for purchase or
sale as indicated above. The Legal Department will not grant clearance for any
purchase by an affiliated account of any security in an initial public offering
if an Advisory Client is considering the purchase or has submitted an indication
of interest in purchasing shares in such initial public offering. For all other
purchases and sales of securities for affiliated accounts, no clearance is
necessary, but such transactions are subject to WRIMCO's Procedures for
Aggregation of Orders for Advisory Clients, as amended from time to time.

The Legal Department may refuse to preclear a transaction if it deems the
transaction to involve a conflict of interest, possible diversion of corporate
opportunity, or an appearance of impropriety.

Clearance is effective, unless earlier revoked, until the earlier of (1) the
close of business on the fifth trading day, beginning on and including the day
on which such clearance was granted, or (2) such time as the Access Person
learns that the information provided to the Legal Department in such Access
Person's request for clearance is not accurate. If an Access Person places an
order for a transaction within the five trading days but such order is not
executed within the five trading days (e.g., a limit order), clearance need not
be reobtained unless the person who placed the original order amends such order
in any way. Clearance may be revoked at any time and is deemed revoked if,
subsequent to receipt of


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clearance, the Access Person has knowledge that a Security to which the
clearance relates is being considered for purchase or sale by an Advisory Client

4.   EXEMPTED TRANSACTIONS

The pre-clearance requirements in Section 3 and the prohibited actions and
transactions in Section 5 of this Code shall not apply to:

(a)  Purchases or sales which are non-volitional on the part of either the
     Access Person or the Advisory Client. This exemption includes accounts
     managed by WRIMCO, on a discretionary basis, that are deemed to be
     beneficially owned by an Access Person.

(b)  Purchases which are part of an automatic dividend reinvestment plan.

(c)  Purchases effected upon the exercise of rights issued by an issuer PRO RATA
     to all holders of a class of its securities, to the extent such rights were
     acquired from such issuer, and sales of such rights so acquired.

(d)  Transactions in securities of WDR; however, individuals subject to the
     Insider Trading Policy remain subject to such policy. (See Appendix B).

(e)  Purchases or sales by a Non-Affiliated Director or a member of his or her
     Immediate Family.

5.   PROHIBITED ACTIONS AND TRANSACTIONS

Clearance will not be granted under Section 3 with respect to the following
prohibited actions and transactions. Engaging in any such actions or
transactions by Access Persons will result in sanctions, including, but not
limited to, the sanctions expressly provided for in this Section.

(a)  Except with respect to Large Cap Transactions, Investment Personnel and
     Portfolio Managers shall not acquire any security for any account in which
     such Investment Personnel or Portfolio Manager has a beneficial interest,
     excluding the Funds, in an initial public offering of that security.


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(b)  Except with respect to Large Cap Transactions, Access Persons shall not
     execute a securities transaction on a day during which an Advisory Client
     has a pending buy or sell order in that same security or an equivalent
     security until that order is executed or withdrawn. An Access Person shall
     disgorge any profits realized on trades within such period.

(c)  Except for De Minimis Transactions and Large Cap Transactions, a Portfolio
     Manager shall not buy or sell a Security within seven (7) trading days
     before or after an Advisory Client that the Portfolio Manager manages
     trades in that Security or an equivalent security. A Portfolio Manager
     shall disgorge any profits realized on such trades within such period.

(d)  Except for De Minimis Transactions and Large Cap Transactions, Investment
     Personnel and Portfolio Managers shall not profit in the purchase or sale,
     or sale and purchase, of the same (or equivalent) securities within sixty
     (60) calendar days. The Legal Department will review all such short-term
     trading by Investment Personnel and Portfolio Managers and may, in its sole
     discretion, allow exceptions when it has determined that an exception would
     be equitable and that no abuse is involved. Investment Personnel and
     Portfolio Managers profiting from a transaction shall disgorge any profits
     realized on such transaction. This section shall not apply to options on
     securities used for hedging purposes for securities held longer than sixty
     (60) days.

(e)  Except with respect to Large Cap Transactions, Investment Personnel and
     Portfolio Managers shall not acquire a security in a private placement,
     absent prior authorization from the Legal Department. The Legal Department
     will not grant clearance for the acquisition of a security in a private
     placement if it is determined that the investment opportunity should be
     reserved for an Advisory Client or that the opportunity to acquire the
     security is being offered to the individual requesting clearance by virtue
     of such individual's position with the Companies. An individual who has
     been granted clearance to acquire securities in a private placement shall
     disclose such investment when participating in an Advisory Client's
     subsequent consideration of an investment in the issuer. A subsequent
     decision by an Advisory Client to purchase such a security shall be


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     subject to independent review by Investment Personnel with no personal
     interest in the issuer.

(f)  An Access Person shall not execute a securities transaction while in
     possession of material non-public information regarding the security or its
     issuer.

(g)  An Access Person shall not execute a securities transaction which is
     intended to result in market manipulation, including but not limited to, a
     transaction intended to raise, lower, or maintain the price of any security
     or to create a false appearance(s) of active trading.

(h)  Except with respect to Large Cap Transactions, an Access Person shall not
     execute a securities transaction involving the purchase or sale of a
     security at a time when such Access Person intends, or knows of another's
     intention, to purchase or sell that security (or an equivalent security) on
     behalf of an Advisory Client. This prohibition would apply whether the
     transaction is in the same (e.g., two purchases) or the opposite (a
     purchase and sale) direction as the transaction of the Advisory Client.

(i)  An Access Person shall not cause or attempt to cause any Advisory Client to
     purchase, sell, or hold any security in a manner calculated to create any
     personal benefit to such Access Person or his or her Immediate Family. If
     an Access Person or his or her Immediate Family stands to materially
     benefit from an investment decision for an Advisory Client that the Access
     Person is recommending or in which the Access Person is participating, the
     Access Person shall disclose to the persons with authority to make
     investment decisions for the Advisory Client, any beneficial interest that
     the Access Person or his or her Immediate Family has in such security or an
     equivalent security, or in the issuer thereof, where the decision could
     create a material benefit to the Access Person or his or her Immediate
     Family or result in the appearance of impropriety.

(j)  Investment Personnel and Portfolio Managers shall not accept from any
     person or entity that does or proposes to do business with or on behalf of
     an Advisory Client a gift or other thing of more than de minimis value or
     any other form of advantage. The solicitation or giving of such gifts by
     Investment Personnel and


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     Portfolio Managers is also prohibited. For purposes of this subparagraph,
     "de minimis" means $75 or less if received in the ordinary course of
     business.

(k)  Investment Personnel and Portfolio Managers shall not serve on the board of
     directors of publicly traded companies, absent prior authorization from the
     Legal Department. The Legal Department will grant authorization only if it
     is determined that the board service would be consistent with the interests
     of any Advisory Client. In the event board service is authorized, such
     individuals serving as directors shall be isolated from those making
     investment decisions through procedures designed to safeguard against
     potential conflicts of interest, such as a Chinese Wall policy or
     investment restrictions.

6.   REPORTING BY ACCESS PERSONS

(a)  Each Access Person, except a Non-Affiliated Director or a member of his or
     her Immediate Family, shall require a broker-dealer or bank effecting a
     transaction in any security in which such Access Person has, or by reason
     of such transaction acquires, any direct or indirect Beneficial Ownership
     in the security to timely send duplicate copies of each confirmation for
     each securities transaction and periodic account statement for each
     brokerage account in which such Access Person has a beneficial interest to
     Waddell & Reed, Inc., Attention: Legal Department.

(b)  Each Access Person, except a Non-Affiliated Director or a member of his or
     her Immediate Family, shall report to the Legal Department no later than 10
     days after the end of each calendar quarter the information described below
     with respect to transactions during the quarter in any security in which
     such Access Person has, or by reason of such transaction acquired, any
     direct or indirect Beneficial Ownership in the security and with respect to
     any account established by the Access Person in which securities were held
     during the quarter for the direct or indirect benefit of the Access Person;
     provided, however, that an Access Person shall not be required to make a
     report with respect to transactions effected for or securities held in any
     account over which such Access Person does not have any direct or indirect
     influence or control:

      (i)   The date of the transaction, the name, the interest rate and
            maturity date (if applicable), the number of shares and the
            principal amount of the security;


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      (ii)  The nature of the transaction (i.e., purchase, sale or any other
            type of acquisition or disposition);

      (iii) The price at which the transaction was effected;

      (iv)  The name of the broker, dealer or bank with or through whom the
            transaction was effected and, with respect to an account described
            above in this paragraph, with whom the Access Person established the
            account;

      (v)   The date the account was established; and

      (vi)  The date the report is submitted.

(c)   Upon commencement of employment, or, if later, at the time he or she
      becomes an Access Person each such Access Person, except a Non-Affiliated
      Director or a member of his or her Immediate Family, shall provide the
      Legal Department with a report that discloses:

      (i)   The name, number of shares and principal amount of each security in
            which the Access Person had any direct or indirect Beneficial
            Ownership when he or she became an Access Person;

      (ii)  The name of any broker, dealer or bank with which the Access Person
            maintained an account in which securities were held for the direct
            or indirect benefit of the Access Person as of the date he or she
            became an Access Person; and

      (iii) The date of the report.

      Annually thereafter, each Access Person, except a Non-Affiliated Director
      or a member of his or her Immediate Family, shall provide the Legal
      Department with a report that discloses the following information (current
      as of a date no more than 30 days before the report is submitted):


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      (i)   The name, number of shares and principal amount of each security in
            which the Access Person had any direct or indirect Beneficial
            Ownership;

      (ii)  The name of any broker, dealer or bank with which the Access Person
            maintains an account in which securities were held for the direct or
            indirect benefit of the Access Person; and

      (iii) The date the report is submitted.

      However, an Access Person shall not be required to make a report with
      respect to securities held in any account over which such Access Person
      does not have any direct or indirect influence or control.

      In addition, each Access Person, except a Non-Affiliated Director or a
      member of his or her Immediate Family, shall annually certify in writing
      that all transactions in any security in which such Access Person has, or
      by reason of such transaction has acquired, any direct or indirect
      Beneficial Ownership have been reported to the Legal Department. If an
      Access Person had no transactions during the year, such Access Person
      shall so advise the Legal Department.

(d)   A Non-Affiliated Director or a member of his or her Immediate Family need
      only report a transaction in a security if such director, at the time of
      that transaction, knew or, in the ordinary course of fulfilling his or her
      official duties as a director, should have known that, during the 15-day
      period immediately preceding the date of the transaction by the director,
      such security was purchased or sold by an Advisory Client or was being
      considered for purchase or sale by an Advisory Client.

(e)   In connection with a report, recommendation or decision of an Access
      Person to purchase or sell a security, the Companies may, in their
      discretion, require such Access Person to disclose his or her direct or
      indirect Beneficial Ownership of such security. Any such report may
      contain a statement that the report shall not be construed as an admission
      by the person making such report that he or she has any direct or indirect
      Beneficial Ownership in the security to which the report relates.


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(f)   The Legal Department shall identify all Access Persons who are required to
      make reports under this section and shall notify those persons of their
      reporting obligations hereunder. The Legal Department shall review, or
      determine other appropriate personnel to review, the reports submitted
      under this section.

7.    REPORTS TO BOARD

At least annually, each Fund, WRIMCO and W&R shall provide the Fund's board of
directors, and the board of directors shall consider, a written report that:

(a)   Describes any issues arising under this Code or the related procedures
      instituted to prevent violation of this Code since the last report to the
      board of directors, including, but not limited to, information about
      material violations of this Code or such procedures and sanctions imposed
      in response to such violations; and

(b)   Certifies that the Fund, WRIMCO and W&R, as applicable, have adopted
      procedures reasonably necessary to prevent Access Persons from violating
      this Code.

      In addition to the written report otherwise required by this section, all
      material violations of this Code and any sanctions imposed with respect
      thereto shall be periodically reported to the board of directors of the
      Fund with respect to whose securities the violation occurred.

8.    CONFIDENTIALITY OF TRANSACTIONS AND INFORMATION

Every Access Person shall treat as confidential information the fact that a
security is being considered for purchase or sale by an Advisory Client, the
contents of any research report, recommendation or decision, whether at the
preliminary or final level, and the holdings of an Advisory Client and shall not
disclose any such confidential information without prior consent from the Legal
Department. Notwithstanding the foregoing, with respect to a Fund, the holdings
of the Fund shall not be considered confidential after such holdings by the Fund
have been disclosed in a public report to shareholders or to the Securities and
Exchange Commission.


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Access Persons shall not disclose any such confidential information to any
person except those employees and directors who need such information to carry
out the duties of their position with the Companies.

9.    SANCTIONS

Upon discovering a violation of this Code, the Companies may impose such
sanctions as it deems appropriate, including, without limitation, a letter of
censure or suspension or termination of the employment of the violator.

10.   CERTIFICATION OF COMPLIANCE

Each Access Person, except a Non-Affiliated Director and members of his or her
Immediate Family, shall annually certify that he or she has read and understands
this Code and recognizes that he or she is subject hereto.


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                        APPENDIX A TO THE CODE OF ETHICS

                             "Beneficial Ownership"


For purposes of this Code, "Beneficial Ownership" is interpreted in the same
manner as it would be under Rule 16a-1(a)(2) of the Securities Exchange Act of
1934 in determining whether a person is the beneficial owner of a security for
purposes of Section 16 of the Securities Exchange Act of 1934. In general, a
"beneficial owner" of a security is any person who, directly or indirectly,
through any contract, arrangement, understanding, relationship or otherwise, has
or shares any direct or indirect pecuniary interest in the security. The
Companies will interpret Beneficial Ownership in a broad sense.

The existence of Beneficial Ownership is clear in certain situations, such as:
securities held in street name by brokers for an Access Person's account, bearer
securities held by an Access Person, securities held by custodians, pledged
securities, and securities held by relatives or others for an Access Person. An
Access Person is also considered the beneficial owner of securities held by
certain family members. The SEC has indicated that an individual is considered
the beneficial owner of securities owned by such individual's Immediate Family.
The relative's ownership of the securities may be direct (i.e., in the name of
the relative) or indirect.

An Access Person is deemed to have Beneficial Ownership of securities owned by a
trust of which the Access Person is the settlor, trustee or beneficiary,
securities owned by an estate of which the Access Person is the executor or
administrator, legatee or beneficiary, securities owned by a partnership of
which the Access Person is a partner, and securities of a corporation of which
the Access Person is a director, officer or shareholder.

An Access Person must comply with the provisions of this Code with respect to
all securities in which such Access Person has a Beneficial Ownership. If an
Access Person is in doubt as to whether she or he has a Beneficial Ownership
interest in a security, the Access Person should report the ownership interest
to the Legal Department. An Access Person may disclaim Beneficial Ownership as
to any security on required reports.


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                                   APPENDIX B


                       POLICY STATEMENT ON INSIDER TRADING
                                November 15, 2000



I.    PROHIBITION ON INSIDER TRADING


      All employees, officers, directors and other persons associated with the
Companies as a term of their employment or association are forbidden to misuse
in violation of Federal securities laws or other applicable laws material
nonpublic information.

      This prohibition covers transactions for one's own benefit and also for
      the benefit of or on behalf of others, including the investment companies
      in the Waddell & Reed Advisors Group of Mutual Funds, W&R Funds, Inc. and
      W&R Target Funds, Inc. (the "Funds") or other investment Advisory Clients.
      The prohibition also covers the unlawful dissemination of such information
      to others. Such conduct is frequently referred to as "insider trading".
      The policy of the Companies applies to every officer, director, employee
      and associated person of the Companies and extends to activities within
      and outside their duties at the Companies. The prohibition is in addition
      to the other policies and requirements under the Companies' Code of Ethics
      and other policies issued from time to time. It applies to transactions in
      any securities, including publicly traded securities of affiliated
      companies (e.g., Waddell & Reed Financial, Inc. (1))

      This Policy Statement is intended to inform personnel of the issues so as
      to enable them to avoid taking action that may be unlawful or to seek
      clearance and guidance from the Legal Department when in doubt. It is not
      the purpose of this Policy Statement to give precise and definitive rules
      which will relate to every situation, but rather to furnish enough
      information so that subject persons may avoid unintentional violations and
      seek guidance when necessary.

--------
(1) Reporting transactions in affiliated corporation securities is in addition
to and does not replace the obligation of certain senior officers to file
reports with the Securities and Exchange Commission.

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      All employees, officers and directors of the Companies will be furnished
      with or have access to a copy of this Policy Statement. Any questions
      regarding the policies or procedures described herein should be referred
      to the Legal Department. To the extent that inquiry of employees reveals
      that this Policy Statement is not self-explanatory or is likely to be
      substantively misunderstood, appropriate personnel will conduct individual
      or group meetings from time to time to assure that policies and procedures
      described herein are understood.

      The term "insider trading" is not defined in the Federal securities laws,
      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. In
      addition, there is no definitive and precise law as to what constitutes
      material nonpublic information or its unlawful use. The law in these areas
      has been developed through court decisions primarily interpreting basic
      anti-fraud provisions of the Federal securities laws. There is no
      statutory definition, only statutory sanctions and procedural
      requirements.

      While the law concerning insider trading is not static, it is generally
      understood that the law is as follows:

      (a)   It is unlawful for any person, directly or indirectly, to purchase,
            sell or cause the purchase or sale of any security, either
            personally or on behalf of or for the benefit of others, while aware
            of material, nonpublic information relating thereto, if such person
            knows or recklessly disregards that such information has been
            obtained wrongfully, or that such purchase or sale would constitute
            a wrongful use of such information. The law relates to trading by an
            insider while aware of material, nonpublic information or trading by
            a non-insider while aware of material, nonpublic information, where
            the information either was disclosed to the non-insider in violation
            of an insider's duty to keep it confidential or was misappropriated.

      (b)   It is unlawful for any person involved in any transaction which
            would violate the foregoing to communicate material, nonpublic
            information to others (or initiate a chain of communication to
            others) who purchase or sell the subject security if such sale or
            purchase is reasonably foreseeable.


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      The major elements of insider trading and the penalties for such unlawful
      conduct are discussed below. If, after reviewing this Policy Statement,
      you have any questions, you should consult the Legal Department.

      1.    WHO IS AN INSIDER? The concept of "insider" is broad. It includes
            officers, directors and employees of the company in possession of
            nonpublic information. In addition, a person can be a "temporary
            insider" if he or she enters into a special confidential
            relationship in the conduct of the 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 certain of the
            employees of such organizations. In addition, the Companies may
            become a temporary insider of a company it advises or for which it
            performs services.

      2.    WHAT IS MATERIAL INFORMATION? Trading on inside information is not a
            basis for liability unless the information is material. "Material
            information" includes information that a reasonable investor would
            be likely to consider important in making an investment decision,
            information that is reasonably certain to have a substantial effect
            on the price of a company's securities if publicly known, or
            information which would significantly alter the total mix of
            information available to shareholders of a company. Information that
            one may consider material includes information regarding dividends,
            earnings, estimates of earnings, changes in previously released
            earnings estimates, merger or acquisition proposals or agreements,
            major litigation, liquidation problems, new products or discoveries
            and extraordinary management developments. Material information is
            not just information that emanates from the issuer of the security,
            but includes market information such as the intent of someone to
            commence a tender offer for the securities, a favorable or critical
            article in an important financial publication or information
            relating to a Fund's buying program.

      3.    WHAT IS NONPUBLIC INFORMATION? Information is nonpublic until it has
            been effectively communicated to the marketplace and is available to
            investors generally. One must be able to point to some fact to show
            that


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            the information is generally public. For example, information found
            in a report filed with the SEC, or appearing in THE WALL STREET
            JOURNAL or other publications of general circulation would be
            considered public.

      4.    WHEN IS A PERSON AWARE OF INFORMATION? A person is "aware" of
            material nonpublic information if he or she has knowledge or is
            conscious or cognizant of such information. Once a person is aware
            of material, nonpublic information, he or she may not buy or sell
            the subject security, even though the person is prompted by entirely
            different reasons to make the transaction, if such person knows or
            recklessly disregards that such information was wrongfully obtained
            or will be wrongfully used. Advisory personnel's normal analytical
            conclusions, no matter how thorough and convincing, can temporarily
            be of no use if the analyst has material nonpublic information,
            which he or she knows or recklessly disregards is information which
            was wrongfully obtained or would be wrongfully used.

      5.    WHEN IS INFORMATION WRONGFULLY OBTAINED OR WRONGFULLY USED?
            Wrongfully obtained connotes the idea of gaining the information
            from some unlawful activity such as theft, bribery or industrial
            espionage. It is not necessary that the subject person gained the
            information through his or her own actions. Wrongfully obtained
            includes information gained from another person with knowledge that
            the information was so obtained or with reckless disregard that the
            information was so obtained. Wrongful use of information concerns
            circumstances where the person gained the information properly,
            often to be used properly, but instead used it in violation of some
            express or implied duty of confidentiality. An example would be the
            personal use of information concerning Funds' trades. The employee
            may need to know a Fund's pending transaction and may even have
            directed it, but it would be unlawful to use this information in his
            or her own transaction or to reveal it to someone he or she believes
            may personally use it. Similarly, it would be unlawful for a person
            to use information obtained from a family member if the person has
            agreed to keep the information confidential or knows (or reasonably
            should know) that the family member expected the information to be
            kept confidential.


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      6.    WHEN IS COMMUNICATING INFORMATION (TIPPING) UNLAWFUL? It is unlawful
            for a person who, although not trading himself or herself,
            communicates material nonpublic information to those who make an
            unlawful transaction if the transaction is reasonably foreseeable.
            The reason for tipping the information is not relevant. The tipper's
            motivation is not of concern, but it is relevant whether the tipper
            knew the information was unlawfully obtained or was being unlawfully
            used. For example, if an employee tips a friend about a large
            pending trade of a Fund, why he or she did so is not relevant, but
            it is relevant that he or she had a duty not to communicate such
            information. It is unlawful for a tippee to trade while aware of
            material nonpublic information if he or she knew or recklessly
            ignored that the information was wrongfully obtained or wrongfully
            communicated to him or her directly or through a chain of
            communicators.

II.      PENALTIES FOR INSIDER TRADING

         Penalties for unlawful trading or communication of material nonpublic
         information are severe, both for individuals involved in such unlawful
         conduct and their employers. A person can be subject to some or all 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, fines for the person who
         committed the violation and fines for the employer or other controlling
         person. In addition, any violation of this Policy Statement can be
         expected to result in serious sanctions by any or all of the Companies,
         including, but not limited to, dismissal of the persons involved.

III.     MONITORING OF INSIDER TRADING

         The following are some of the procedures which have been established to
         aid the officers, directors and employees of the Companies in avoiding
         insider trading, and to aid the Companies in preventing, detecting and
         imposing sanctions against insider trading. Every officer, director and
         employee of the Companies must follow these procedures or risk serious
         sanctions, including dismissal, substantial liability and criminal
         penalties. If you have any questions about these procedures, you should
         consult the Legal Department.


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         A.       IDENTIFYING INSIDE INFORMATION
                  Before trading for yourself or others in the securities of a
                  company about which you may have potential inside information,
                  ask yourself the following questions:

                  (1)      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 substantially affect the market price of
                           securities if generally disclosed?

                  (2)      Is the information nonpublic? To whom has this
                           information been provided? Has the information been
                           effectively communicated to the marketplace by being
                           published in a publication of general circulation?

                  (3)      Do you know or have any reason to believe the
                           information was wrongfully obtained or may be
                           wrongfully used?

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

                  (1)      Report the matter immediately to the Legal
                           Department.

                  (2)      Do not purchase or sell the securities on behalf of
                           yourself or others.


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