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CODE OF CONDUCT
All of us within the Capital organization are responsible for maintaining the
very highest ethical standards when conducting business. In keeping with these
standards, we must never allow our own interests to be placed ahead of our
shareholders' and clients' interests.
Over the years we have earned a reputation for the highest integrity.
Regardless of lesser standards that may be followed through business or
community custom, we must observe exemplary standards of honesty and integrity.
REPORTING VIOLATIONS
If you know of any violation of our Code of Conduct, you have a
responsibility to report it. Deviations from controls or procedures that
safeguard the company, including the assets of shareholders and clients,
should also be reported.
You can report confidentially to:
- Your manager or department head
- CGC Audit Committee:
Wally Stern -- Chairman
Donnalisa Barnum
David Beevers
Jim Brown
Larry P. Clemmensen
Roberta Conroy
Bill Hurt -- (emeritus)
Sonny Kamm
Mike Kerr
Victor Kohn
John McLaughlin
Don O'Neal
Tom Rowland
John Smet
Antonio Vegezzi
Shaw Wagener
Kelly Webb
- Mike Downer or any other lawyer in the CGC Legal Group
- Don Wolfe of Deloitte & Touche LLP (CGC's auditors).
CGC GIFTS POLICY -- CONFLICTS OF INTEREST
A conflict of interest occurs when the private interests of associates
interfere or could potentially interfere with their responsibilities at
work. Associates must not place themselves or the company in a position of
actual or potential conflict. Associates may not accept gifts
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worth more than $100, excessive business entertainment, loans, or anything
else involving personal gain from those who conduct business with the
company. In addition, a business entertainment event exceeding $200 in
value should not be accepted unless the associate receives permission from
the Gifts Policy Committee.
REPORTING -- Although the limitations on accepting gifts applies to ALL
associates as described above, some associates will be asked to fill out
quarterly reports. If you receive a reporting form, you must report any gift
exceeding $50 (although it is recommended that you report ALL gifts received)
and business entertainment in which an event exceeds $75.
GIFTS POLICY COMMITTEE
The Gifts Policy Committee oversees administration of and compliance with the
Policy.
INSIDER TRADING
Antifraud provisions of the federal securities laws generally prohibit persons
while in possession of material nonpublic information from trading on or
communicating the information to others. Sanctions for violations can include
civil injunctions, permanent bars from the securities industry, civil
penalties up to three times the profits made or losses avoided, criminal fines
and jail sentences.
While investment research analysts are most likely to come in contact with
material nonpublic information, the rules (and sanctions) in this area apply
to all CGC associates and extend to activities both within and outside each
associate's duties.
PERSONAL INVESTING POLICY
As an associate of the Capital Group companies, you may have access to
confidential information. This places you in a position of special trust.
You are associated with a group of companies that is responsible for the
management of many billions of dollars belonging to mutual fund shareholders
and other clients. The law, ethics and our own policy place a heavy burden on
all of us to ensure that the highest standards of honesty and integrity are
maintained at all times.
There are several rules that must be followed to avoid possible conflicts of
interest in personal securities transactions.
ALL ASSOCIATES
Information regarding proposed or partially completed plans by CGC companies
to buy or sell specific securities must not be divulged to outsiders.
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Favors or preferential treatment from stockbrokers may not be accepted.
Associates may not subscribe to ANY initial public offering or any other
securities offering that is subject to allocation (so called "hot issues").
Generally, this prohibition applies to spouses of associates and any family
member residing in the same household. However, an associate may request
that the Personal Investing Committee consider granting an exception.
PLEASE NOTE THAT ANY INVESTMENTS IN PRIVATE PLACEMENTS THAT ARE NOT
PROHIBITED AS DESCRIBED ABOVE MUST BE PRE-CLEARED.
COVERED PERSONS
Associates who have access to investment information in connection with their
regular duties are generally considered "covered persons." If you receive a
quarterly personal securities transactions report form, you are a covered
person. A DETAILED DESCRIPTION OF THE PERSONAL INVESTING POLICY CAN BE
FOUND AT THE CGC WEB HOME PAGE. You should take the time to review this
policy, as ongoing interpretations of the policy will be explained
therein.
Covered persons must conduct their personal securities transactions in such a
way that they do not conflict with the interests of the funds and client
accounts. This policy also includes securities transactions of family members
living in the covered person's household and any trust or custodianship for
which the associate is trustee or custodian. A conflict may occur if you, a
family member in the same household, a trust or custodianship for which you
are trustee or custodian have a transaction in a security when the funds or
client accounts are considering or concluding a transaction in the same
security.
Additional rules apply to "investment personnel" including portfolio
counselors/managers, research analysts, traders, and investment administration
personnel (see below).
PRE-CLEARANCE OF SECURITIES TRANSACTIONS
Before buying or selling securities, covered persons should find out if the
purchase or sale of a particular security would involve a conflict of
interest. This involves checking with the CGC Legal Group based in LAO by
calling (phone number). (You will generally receive a response within one
business day.) Unless a shorter period is specified, clearance is good for
two trading days (including the day you check). If you have not executed
your transaction within this period, you must again pre-clear your
transaction.
Covered persons must PROMPTLY submit quarterly reports of certain
transactions. Transactions of securities (including fixed-income
securities) or options (see below) must be pre-cleared as described above
and reported except for: gifts or bequests of securities (although receipt
of securities as a gift must be reported and pre-clearance and reporting
are required if these securities are later sold); open-end investment
companies (mutual funds); shares of CGC Stock; money market instruments
with maturities of one year or less; direct obligations of the U.S.
Government, bankers' acceptances, CDs or other commercial paper;
commodities; and options or futures on broad-based indices. Covered persons
must also report transactions made by family members in their household and
by those for which they are a trustee or custodian AND MUST BE SUBMITTED BY
THE DATE INDICATED ON THE FORM.
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In addition, the following transactions must be reported but need not have
been pre-cleared: transactions in debt instruments rated "A" or above by at
least one national rating service; sales pursuant to tender offers; and
dividend reinvestment plan purchases (provided the purchase pursuant to
such plan is made with dividend proceeds only).
PERSONAL INVESTING SHOULD BE VIEWED AS A PRIVILEGE, NOT A RIGHT. AS SUCH,
LIMITATIONS MAY BE PLACED ON THE NUMBER OF PRE-CLEARANCES AND/OR TRANSACTIONS
AS DEEMED APPROPRIATE BY THE PERSONAL INVESTING COMMITTEE.
BROKERAGE ACCOUNTS
Covered persons should inform their stockbrokers that they are employed by an
investment adviser, trust company or affiliate of either. The broker is
subject to certain rules designed to prevent favoritism toward such accounts.
Associates may not accept negotiated commission rates which they believe may
be more favorable than the broker grants to accounts with similar
characteristics. In addition, covered persons must direct their brokers to
send duplicate confirmations and copies of all periodic statements on a timely
basis to The Legal Group of The Capital Group Companies, Inc. ALL DOCUMENTS
RECEIVED ARE KEPT STRICTLY CONFIDENTIAL.
[If extraneous information is included on an associate's statements (E.G.,
checking account information or other information that is not subject to the
policy), the associate might want to establish a separate account solely for
transactions subject to the policy.]
ANNUAL DISCLOSURE OF PERSONAL SECURITIES HOLDINGS
Covered persons will be required to disclose all personal securities holdings
upon commencement of employment (or upon becoming a covered person) and
thereafter on an annual basis. Reporting forms will be supplied for this
purpose.
ANNUAL RECERTIFICATION
All access persons will be required to certify annually that they have read
and understood the Personal Investing Policy and recognize that they are
subject thereto.
ADDITIONAL RULES FOR INVESTMENT PERSONNEL
DISCLOSURE OF OWNERSHIP OF RECOMMENDED SECURITIES -- Ownership of securities
that are held professionally as well as personally will be reviewed on a
periodic basis by the Legal Group and may also be reviewed by the applicable
Management Committee and/or Investment Committee or Subcommittee. In addition,
to the extent that disclosure has not already been made by the Legal Group to
the applicable Management Committee and/or Investment Committee or
Subcommittee, any associate who is in a position to recommend the purchase or
sale of securities by the fund or client accounts that s/he personally owns
should FIRST disclose
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such ownership either in writing (in a company write-up) or orally (when
discussing the company at investment meetings) prior to making a
recommendation.(1)
BLACKOUT PERIOD - Portfolio counselors/managers and research analysts may
not buy or sell a security within at least seven calendar days before and
after A FUND OR CLIENT ACCOUNT THAT HIS OR HER COMPANY MANAGES transacts in
that security. Profits resulting from transactions occurring within this
time period are subject to special review and may be subject to
disgorgement.
BAN ON SHORT-TERM TRADING PROFITS -- Investment personnel are prohibited from
profiting from the purchase and sale or sale and purchase of the same (or
equivalent) securities within 60 days. THIS RESTRICTION APPLIES TO THE
PURCHASE OF AN OPTION AND THE EXERCISE OF THE OPTION WITHIN 60 DAYS.
SERVICE AS A DIRECTOR -- Investment personnel must obtain prior
authorization of the investment committee of the appropriate management
company BEFORE SERVING ON THE BOARD OF DIRECTORS OF PUBLICLY TRADED
COMPANIES. This can be arranged by calling the LAO Legal Group.
PERSONAL INVESTING POLICY COMMITTEE
Any questions or hardships that result from these policies or requests for
exceptions should be referred to CGC's Personal Investing Poilicy Committee
by calling the LAO Legal Group.
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(1) Note that this disclosure requirement is consistent with both AIMR
standards as well as the ICI Advisory Group Guidelines.
