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FLAG INVESTORS FUNDS
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
CONSOLIDATED CODE OF ETHICS
I. GENERAL
Rule 17j-1 under the Investment Company Act of 1940 (the "1940 Act") makes
it unlawful for investment company personnel and other "Access Persons" to
engage in "fraudulent, deceptive or manipulative" practices in connection
with their personal transactions in securities when those securities are
held or to be acquired by an investment company. The Rule also requires
every investment company, the investment company's investment advisor and,
in certain cases, the investment company's principal underwriter, to adopt
a Code of Ethics containing provisions "reasonably necessary to prevent"
such prohibited practices.
This document constitutes the Code of Ethics required by Rule 17j-1 for the
"Funds", as defined in APPENDIX A. APPENDIX A also provides certain other
definitions for entities which are referenced in this Code of Ethics.
II. DEFINITIONS
For purposes of this Code, the following terms have the meanings set forth
as follows:
A. "ACCESS PERSON" means:
1. Any director, trustee or officer of a Fund, Advisor or
Sub-Advisor(1);
2. Every "Advisory Person" of a Fund, Advisor or Sub-Advisor. An
"Advisory Person" is:
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(1) If an Advisor or Sub-Advisor is primarily engaged in a business
other than advising funds or advisory clients within the meaning of Section
(a)(1)(B) of Rule 17j-1 under the 1940 Act, "Access Person" means any
director, officer or Advisory Person of an Advisor or Sub-Advisor who, with
respect to a Fund for which such entity acts as Advisor or Sub-Advisor,
makes any recommendation, participates in the determination of which
recommendation shall be made, or whose principal function or duties relate
to the determination of which recommendation shall be made or who, in
connection with his or her duties, obtains any information concerning
securities recommendations being made by such investment advisor or
sub-advisor to the Fund.
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(a) any employee 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
a Fund, or
(b) whose functions relate to the making of any recommendations with
respect to such Purchases or Sales; and
(c) any natural person in a Control relationship to a Fund, Advisor
or Sub-Advisor who obtains information concerning
recommendations made to the Fund with regard to the Purchase
or Sale of a Security by the Fund; and
3. Any director, trustee or officer of the Distributor 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 Funds 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 Funds regarding any Purchase or Sale of Securities.
B. "BENEFICIAL OWNERSHIP" of a Security is to be determined in the same
manner as it is for purposes of Section 16a1-(a)(2) of the
Securities Exchange Act of 1934. This means that a person
should generally consider himself or herself the beneficial
owner of any securities of which he or she shares in the
profits, even if he or she has no influence on voting or
disposition of the securities.
C. "CONTROL" shall have the same meaning as that set forth in Section 2(a)(9)
of the 1940 Act. Section 2(a)(9) defines "control" as the
power to exercise a controlling influence over the
management or policies of a company, unless such power is
solely the result of an official position with such
company. Ownership of 25% or more of a company's
outstanding voting securities is presumed to give the
holder thereof control over the company. Such presumption
may be countered by the facts and circumstances of a given
situation.
D. "COVERED PERSONS" means any officer, director, trustee or employee of the
Funds, Advisor, Sub-Advisors or Distributor.
E. "DISINTERESTED DIRECTOR" means a director or trustee of a Fund who is not
an "interested person" of the Fund within the meaning of Section 2 (a)(19)
of the Investment Company Act of 1940.
F. "PURCHASE OR SALE OF A SECURITY" means obtaining or disposing of
"Beneficial Ownership" of that Security and includes, among other things,
the writing of an option to purchase or sell a Security.
G. "SECURITY" shall have the same meaning as that set forth in Section
2(a)(36) of the 1940 Act, except that it shall not include
direct obligations of the Government of the United States,
bankers' acceptances, bank certificates of deposit,
commercial paper and high quality short-term debt
instruments (including repurchase agreements) and shares
issued by registered, open-end investment companies.
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III. GENERAL PRINCIPLES APPLICABLE TO COVERED PERSONS
A. INTRODUCTION
Although certain provisions of this Code of Ethics apply only to
Access Persons, all Covered Persons are subject to the prohibitions
of Rule 17j-1 against fraudulent, deceptive and manipulative
practices and to the general fiduciary principles as set forth in
III.B. and III.C. below.
Every Covered Person should appreciate the need to behave in an
ethical manner with respect to the Funds. In particular, all Covered
Persons who are involved in any way with the activities of a Fund
should be wary of any potential conflicts between their duty of
loyalty to a Fund and their own financial interests, particularly
with respect to their own securities trading activities. Covered
Persons should take care to preserve the confidentiality of the
Funds' business affairs. Covered Persons who are not "Access Persons"
but who become aware of proposed fund securities transactions should
not engage in transactions in those same securities without the
permission of the Secretary of the Fund. Otherwise, Covered Persons
who are not Access Persons are not limited in their personal
securities transactions by this Code, but such Covered Persons are
encouraged to consult with the Secretary of the Funds if they have
any doubts about the applicability of the Code of Ethics to any
proposed transaction.
B. STATEMENT OF GENERAL FIDUCIARY PRINCIPLES
The following principles are the policy of the Funds and are the
obligations of all Covered Persons:
1. It is the duty of all Covered Persons at all times to place the
interests of Fund shareholders first.
2. All personal securities transactions must be conducted in such manner
as to avoid any actual or potential conflict of interest or any abuse
of an individual's position of trust and responsibility.
3. Covered Persons must not take inappropriate advantage of their
positions or the information they acquire, with or on behalf of a
Fund, Advisor, Sub-Advisor and/or Distributor, to the detriment of
shareholders of the Funds.
C. FRAUDULENT PRACTICES
Rule 17j-1 makes it unlawful for any Covered Person, in connection with a
Fund with which such Covered Person has a relationship, to:
1. employ any device, scheme or artifice to defraud a Fund;
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2. make to a Fund any untrue statement of a material fact or omit to
state to the Fund a material fact necessary in order to make the
statements made, in light of the circumstances under which they are
made, not misleading;
3. engage in any act, practice or course of business which operates or
would operate as a fraud or deceit upon a Fund; or
4. engage in any manipulative practice with respect to a Fund.
IV. REQUIREMENTS APPLICABLE TO DISINTERESTED DIRECTORS
A. EXCEPTIONS TO QUARTERLY TRANSACTION REPORT REQUIREMENT. Not withstanding
the provisions of IV.B., a Disinterested Director is required to
complete a Quarterly Transaction Report ONLY if the Disinterested
Director knew or, in the ordinary course of fulfilling his official
duties as a Fund director or trustee should have known, that during
the 15-day period immediately before or after the director's or
trustee's transaction, such Security is or was Purchased or Sold, or
considered for Purchase or Sale, by a Fund.(2)
B. QUARTERLY TRANSACTION REPORTS. Subject to the exception set forth in IV.A.,
no later than 10 days following the end of the calendar quarter to
which such report relates, each Disinterested Director shall report
to the Secretary of the Funds the following information on the form
attached as APPENDIX B to This Code:
With respect to transactions in any Security in which such
Disinterested Director has, or by reason of such transaction acquires,
any direct or indirect Beneficial Ownership in the Security:
- the date of the transaction, title, interest rate (if
applicable), number of shares and principal amount of each
Security involved;
- the type of transaction (I.E., purchase, sale or any other type
of acquisition or disposition);
- the price of the Security at which the transaction was effected;
- the name of the broker, dealer or bank with or through whom the
transaction was effected;
- the date the report was submitted.
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(2) This reporting requirement shall not be applicable to securities traded
by passively managed index funds.
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V. REQUIREMENTS APPLICABLE TO ADVISOR, SUB-ADVISOR AND DISTRIBUTORS
A. The requirements of this Code of Ethics are not applicable to any Access
Person who is subject to a separate Code of Ethics adopted by an Advisor,
Sub-Advisor or Distributor of a Fund (as such terms are defined in
APPENDIX A), provided that:
1. such Code of Ethics complies with the requirements of Rule 17j-1 and
has been approved by the Board of Directors or Trustees of the Fund;
and
2. such advisor, Sub-Advisor or Distributor has certified to the Board
of Directors or Trustees of the Fund that it has adopted procedures
reasonably necessary to prevent Access Persons from violating such
code of ethics.
B. Each Advisor, Sub-Advisor and Distributor shall:
1. submit to the Fund a copy of its Code of Ethics adopted pursuant to
Rule 17j-1;
2. promptly report to the Fund in writing any material amendments to
such Code;
3. furnish to the Fund upon request (and in any event no less than
quarterly) written reports which:
a. describe any issues arising under its Code of Ethics or
procedures during the period specified including (but not
limited to) information about material violations of the Code or
procedures and sanctions imposed in response to material
violations; and
b. certify that it has adopted procedures reasonably necessary to
prevent Access Persons from violating its Code.
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APPENDIX A
ENTITY DEFINITIONS
"Fund" shall mean each of the following and any series of the following
hereafter designated:
Flag Investors Communications Fund, Inc. ("Communications")
Flag Investors Emerging Growth Fund, Inc. ("Emerging Growth")
Flag Investors Short Intermediate Income Fund, Inc. ("Short-Intermediate")
Flag Investors Value Builder Fund, Inc. ("Value Builder")
Flag Investors Real Estate Securities Fund, Inc. ("Real Estate")
Flag Investors Equity Partners Fund, Inc. ("Equity Partners")
Flag Investors Series Funds, Inc., on behalf of its Series:
Flag Investors International Equity Fund
Flag Investors Funds, Inc., on behalf of each of its Series:
Top 50 World
Top 50 Europe
Top 50 Asia
Top 50 US
European Mid-Cap Fund
Japanese Equity Fund
Flag Investors Portfolios Trust ("Portfolios Trust"), on behalf of each of
its Portfolios:
Top 50 World Portfolio
Top 50 Europe Portfolio
Top 50 Asia Portfolio
Top 50 US Portfolio
Provesta Portfolio
Japanese Equity Portfolio
Flag Investors Master Portfolio Trust ("Master Trust"), on behalf of each
of its Portfolios:
Communications Portfolio
Equity Partners Portfolio
Deutsche Banc Alex. Brown Cash Reserve Fund, Inc. ("Cash Reserve"), on
behalf of each of its Series:
Prime Series
Treasury Series
Tax-Free Series
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Investment Company Capital Corp. (an "Advisor") is the investment advisor to
Communications, Emerging Growth, Short-Intermediate, Value Builder, Real
Estate, Equity Partners, Master Trust, on behalf of the Communications and
Equity Partners Portfolios, and Cash Reserve, on behalf of the Prime,
Treasury and Tax-Free Series. Deutsche Funds Management (an "Advisor") is
the investment advisor to Portfolios Trust, on behalf of the Top 50 World,
Top 50 Europe, Top 50 Asia, Top 50 US, Provesta and Japanese Equity
Portfolios.
Alex. Brown Investment Management ("ABIM") is the sub-advisor to
Communications, Value Builder, Equity Partners and Master Trust, on behalf
of the Communications and Equity Partners Portfolios; Brown Investment
Advisory & Trust Company ("BIA") is the sub-advisor to Emerging Growth and
Short-Intermediate; LaSalle Investment Management (Securities) L.P.
("LaSalle") is the sub-advisor to Real Estate; DWS International Portfolio
Management GmbH ("DWS") is a sub-advisor to Portfolios Trust, on behalf of
the Top 50 World, Top 50 Europe, Top 50 Asia, Provesta and Japanese Equity
Portfolios. Deutsche Asset Management, Inc. ("DAMI") is a sub-advisor to
Portfolios Trust, on behalf of the Top 50 US Portfolio. ABIM, BIA, LaSalle,
DWS, and DAMI are referred to herein as the Sub-Advisors.
ICC Distributors, Inc. ("the Distributor") is the principal underwriter for
each of the Funds.
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APPENDIX B
QUARTERLY PERSONAL SECURITIES TRANSACTIONS REPORT FOR
DISINTERESTED DIRECTORS
A DISINTERESTED DIRECTOR IS REQUIRED TO COMPLETE THIS REPORT ONLY IF THE
DIRECTOR KNEW OR, IN THE ORDINARY COURSE OF FULFILLING HIS OFFICIAL DUTIES
AS A FUND DIRECTOR OR TRUSTEE SHOULD HAVE KNOWN, THAT DURING THE 15-DAY
PERIOD IMMEDIATELY BEFORE OR AFTER THE DIRECTORS OR TRUSTEES TRANSACTION,
SUCH SECURITY IS OR WAS PURCHASED OR SOLD, OR CONSIDERED FOR PURCHASE OR
SALE, BY A FUND. REPORTS ARE DUE WITHIN 10 CALENDAR DAYS AFTER THE END OF
THE CALENDAR QUARTER.*
Name of Reporting Person:
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Calendar Quarter Ended:
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SECURITIES TRANSACTIONS
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Number of Name of Disclaim
Name of Shares, Broker, Beneficial
Date of Issuer and Principal Type of Dealer or Ownership?
Transaction Title of Amount, Maturity Transaction Price Bank (indicate by
Security Date and Effecting "X")
Interest Rate Transaction **
(if applicable)
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I certify that I have included on this report all securities transactions
required to be reported pursuant to the Code of Ethics.
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SIGNATURE DATE
PLEASE RETURN THIS FORM TO FELICIA EMRY, DEUTSCHE ASSET MANAGEMENT MUTUAL
FUNDS COMPLIANCE, ONE SOUTH STREET, BALTIMORE, MARYLAND 21202. QUESTIONS
SHOULD BE DIRECTED TO FELICIA EMRY AT 410-895-3826.
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* This reporting requirement shall not be applicable to securities traded by
passively managed index funds.
** If you do not want this report to be construed as an admission that you have
Beneficial Ownership of a particular security, please indicate this by marking
an "X" in the box.
