EX.99.CODE ETH
COLUMBIA MANAGEMENT GROUP FAMILY OF FUNDS
CODE OF ETHICS FOR PRINCIPAL EXECUTIVE
AND SENIOR FINANCIAL OFFICERS
I. Covered Officers/Purpose of the Code
This Code of Ethics (the "Code") for the investment companies within the
Columbia Management Group fund complex (collectively the "Funds" and each, a
"Fund") applies to the Funds' Principal Executive Officer, Principal
Financial Officer, Principal Accounting Officer, and Director of Trustee
Administration (the "Covered Officers") for the purpose of promoting:
. honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
. full, fair, accurate, timely and understandable disclosure in reports
and documents that a Fund files with, or submits to, the Securities
and Exchange Commission ("SEC"), and in other public communications
made by a Fund;
. compliance with applicable laws and governmental rules and regulations;
. the prompt internal reporting of violations of the Code to an
appropriate person or persons identified in the Code; and
. accountability for adherence to the Code.
Each Covered Officer shall adhere to a high standard of business ethics
and shall be sensitive to situations that may give rise to actual or
apparent conflicts of interest.
II. Administration of the Code
The Boards of Trustees and Boards of Directors of the Funds
(collectively, the "Board") shall designate an individual to be primarily
responsible for the administration of the Code (the "Code Officer"). The
Code shall be administered by the Columbia Management Group Compliance
Department. In the absence of the Code Officer, his or her designee shall
serve as the Code Officer, but only on a temporary basis.
Each Fund has designated a chief legal officer (the "Chief Legal
Officer") for purposes of the Sarbanes-Oxley Act of 2002 and the rules
promulgated thereunder. The Chief Legal Officer of a Fund shall assist the
Fund's Code Officer in administration of this Code. The Chief Legal Officer
shall be responsible for applying this Code to specific situations in which
questions are presented under it (in consultation with Fund counsel, where
appropriate) and has the authority to interpret this Code in any particular
situation. However, any waivers sought by a Covered Officer must be approved
by each Audit Committee of the Funds (collectively, the "Audit Committee").
III. Managing Conflicts of Interest
Overview. A "conflict of interest" occurs when a Covered Officer's
private interest interferes with the interests of, or his/her service to, a
Fund. For example, a conflict of interest would arise if a Covered Officer,
or a family member, receives improper personal benefits as a result of the
Covered Officer's position with a Fund.
Certain conflicts of interest arise out of the relationships between
Covered Officers and a Fund and already are subject to conflict of interest
provisions in the Investment Company Act of 1940 (the "Company Act") and the
Investment Advisers Act of 1940 (the "Advisers Act"). For example, Covered
Officers may not individually engage in certain transactions (such as the
purchase or sale of securities or other property) with a Fund because of
their status as "affiliated persons" of the Fund. A Fund's and its
investment adviser's compliance programs and procedures are designed to
prevent, or identify and correct, violations of those provisions. This Code
does not, and is not intended to, repeat or replace those programs and
procedures, and such conflicts fall outside of the parameters of this Code.
Although typically not presenting an opportunity for improper personal
benefit, conflicts may arise from, or as a result of, the contractual
relationship between a Fund and its investment adviser, administrator,
principal underwriter, pricing and bookkeeping agent and/or transfer agent
(each, a "Service Provider") of which the Covered Officers are also officers
or employees. As a result, this Code recognizes that the Covered Officers
will, in the normal course of their duties (whether formally for a Fund or
for a Service Provider, or for both), be involved in establishing policies
and implementing decisions that will have different effects on the Service
Provider and a Fund. The participation of the Covered Officers in such
activities is inherent in the contractual relationship between the Fund and
the Service Provider and is consistent with the performance by the Covered
Officers of their duties as officers of a Fund. In addition, it is
recognized by the Board that the Covered Officers may also be officers or
employees of one or more other investment companies covered by this or other
codes.
Other conflicts of interest are covered by the Code, even if such
conflicts of interest are not subject to provisions of the Company Act and
the Advisers Act. The following list provides examples of conflicts of
interest under the Code, but Covered Officers should keep in mind that these
examples are not exhaustive. The overarching principle is that the personal
interest of a Covered Officer should not be placed improperly before the
interest of a Fund.
Each Covered Officer must:
. not use personal influence or personal relationships improperly to
influence investment decisions or financial reporting by a Fund
whereby the Covered Officer or an immediate family member would
benefit personally to the detriment of a Fund; and
. not cause a Fund to take action, or fail to take action, for the
individual personal benefit of the Covered Officer or an immediate
family member rather than the benefit of the Fund./1/
There are some conflict of interest situations that must be approved by
the Code Officer, after consultation with the Chief Legal Officer. Those
situations include, but are not limited to,:
. service as director on the board of any public or private company;
. the receipt of any gifts in excess of $100 in the aggregate from a
third party that does or seeks to do business with the Funds during
any 12-month period;
. the receipt of any entertainment from any company with which a Fund
has current or prospective business dealings, unless such
entertainment is business-related, reasonable in cost, appropriate as
to time and place, and not so frequent as to raise any question of
impropriety;
. any material ownership interest in, or any consulting or employment
relationship with, any Fund service providers, other than its
investment adviser, principal underwriter, administrator or any
affiliated person thereof;
. a direct or indirect material financial interest in commissions,
transaction charges or spreads paid by a Fund for effecting portfolio
transactions or for selling or redeeming shares other than an
interest arising from the Covered Officer's employment, such as
compensation or equity ownership.
IV. Disclosure and Compliance
Each Covered Officer shall:
. be familiar with the disclosure requirements generally applicable to
the Funds;
. not knowingly misrepresent, or cause others to misrepresent, facts
about any Fund to others, whether within or outside the Fund,
including to the Fund's trustees and auditors, and to governmental
regulators and self-regulatory organizations;
- --------
/1/ For purposes of this Code, personal trading activity of the Covered
Officers shall be monitored in accordance with the Columbia Management
Group Code of Ethics. Each Covered Officer shall be considered an "Access
Person" under such Code. The term "immediate family" shall have the same
meaning as provided in such Code.
. to the extent appropriate within his/her area of responsibility,
consult with other officers and employees of the Funds and the
adviser with the goal of promoting full, fair, accurate, timely and
understandable disclosure in the reports and documents the Funds file
with, or submit to, the SEC and in other public communications made
by the Funds; and
. promote compliance with the standards and restrictions imposed by
applicable laws, rules and regulations.
V. Reporting and Accountability
Each Covered Officer must:
. upon adoption of the Code (or after becoming a Covered Officer),
affirm in writing to the Board that he/she has received, read and
understands the Code;
. annually affirm to the Board compliance with the requirements of the
Code;
. not retaliate against any other Covered Officer or any employee of
the Funds or their affiliated persons for reports of potential
violations that are made in good faith;
. notify the Chief Legal Officer and the Code Officer promptly if
he/she knows of any violation of this Code; and
. respond to the trustee and officer questionnaires circulated
periodically in connection with the preparation of disclosure
documents for the Funds.
The Code Officer shall maintain records of all activities related to this Code.
The Funds will follow the procedures set forth below in investigating and
enforcing this Code:
. The Chief Legal Officer and/or the Code Officer will take all
appropriate action to investigate any potential violation reported to
him/her;
. If, after such investigation, the Chief Legal Officer and the Code
Officer believes that no violation has occurred, the Code Officer
will notify the person(s) reporting the potential violation, and no
further action is required;
. Any matter that the Chief Legal Officer and/or the Code Officer
believes is a violation will be reported to the Audit Committee;
. If the Audit Committee concurs that a violation has occurred, it will
inform and make a recommendation to the Board, which will consider
appropriate action, which may include review of, and appropriate
modifications to, applicable policies and procedures; notification to
the Chief Executive Officer of Columbia Management Group; or a
recommendation to sanction or dismiss the Covered Officer;
. The Audit Committee will be responsible for granting waivers in its
sole discretion;
. Any changes to or waivers of this Code will, to the extent required,
be disclosed as provided by SEC rules.
The Chief Legal Officer shall:
. report to the Audit Committee quarterly any approvals provided in
accordance with Section III of this Code; and
. report to the Audit Committee quarterly any violations of, or
material issues arising under, this Code.
VI. Other Policies and Procedures
This Code shall be the sole code of ethics adopted by the Funds for the
purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms
applicable to registered investment companies thereunder. Insofar as other
polices or procedures of the Funds or the Funds' Service Providers govern or
purport to govern the behavior or activities (including, but not limited to,
personal trading activities) of the Covered Officers who are subject to this
Code, they are superseded by this Code to the extent that they overlap or
conflict with the provisions of this Code. The Funds' and their investment
advisers' and principal underwriter's codes of ethics under Rule 17j-1 under
the Company Act and any policies and procedures of the Service Providers are
separate requirements applicable to the Covered Officers and are not part of
this Code.
VII. Amendments
All material amendments to this Code must be approved or ratified by the
Board, including a majority of independent directors.
VIII. Confidentiality
All reports and records prepared or maintained pursuant to this Code will
be considered confidential and shall be maintained and protected
accordingly. Except as otherwise required by law or this Code, such matters
shall not be disclosed to anyone other than the Board, the Covered Officers,
the Chief Legal Officer, the Code Officer, outside audit firms and legal
counsel to the Funds, and senior management of Columbia Management Group.
IX. Internal Use
The Code is intended solely for the internal use by the Funds and does
not constitute an admission, by or on behalf of any Fund, as to any fact,
circumstance, or legal conclusion.