MEMBERS MUTUAL FUNDS
ULTRA SERIES FUND
FORM OF CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND
SENIOR FINANCIAL OFFICERS
AMENDED AND RESTATED AUGUST 21, 2008
I. COVERED OFFICERS/PURPOSE OF THE CODE
This code of ethics (this "Code") for each of MEMBERS Mutual Funds and the Ultra
Series Fund (each, a "Trust," and collectively, the "Trusts") has been adopted
by the board of trustees ("Board") for each Trust and applies to each Trust's
Principal Executive (i.e., each Trust's president) and Senior Financial (i.e.,
each Trust's treasurer) Officers (such persons are hereinafter referred to
collectively as the "Covered Officers," and each such person is set forth in
Exhibit A hereto) for the purpose of promoting:
o Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
o Full, fair, accurate, timely and understandable disclosure in
reports and documents that a registrant files with, or submits to,
the SEC and in other public communications made by the Trusts;
o Compliance with applicable laws and governmental rules and
regulations;
o The prompt internal reporting of violations of the Code to an
appropriate person or persons identified in the Code; and
o Accountability for adherence to the Code.
The Board has adopted this Code for the purpose of furthering compliance with
Item 2 of Form N-CSR,(1) which implements Section 406 of the Sarbanes-Oxley Act
of 2002 (the
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(1) Item 2 of Form N-CSR requires a registered management investment company to
disclose annually whether, as of the end of the period covered by the report,
that company has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer, or controller, or persons performing similar functions. If the
registrant has not adopted such a code of ethics, the registrant must explain
why it has not done so. Under Item 2, the registrant also must: (1) file with
the SEC a copy of such code as an exhibit to its annual report; (2) post the
text of the code on it's internet website and disclose, in its annual report,
its internet address, and the fact that it as posted the code on its website; or
(3) undertake in its most recently filed semi-annual report on Form N-CSR to
provide to any person without charge, upon request, a copy of the code and
explain the manner in which this request may be made. Disclosure also is
required of amendments to, or waivers (including implicit waivers) from, a
provision of the code in the registrant's annual report on Form N-CSR or on the
registrant's website. If the registrant intends to satisfy the disclosure
requirement by posting this information on its website, the registrant will be
required to disclose its internet address and such intention. Investment
companies must
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"2002 Act").(2) Section 406 of the 2002 Act requires disclosure by management
investment companies that are registered with the Securities and Exchange
Commission (the "SEC") under the Investment Company Act of 1940 (the "1940
Act"), concerning a code of ethics for senior financial officers of these
investment companies.
ROLE OF THE DESIGNATED PERSONS. As set forth in greater detail below, the
Covered Officers shall report to the Senior Vice President of Corporate
Compliance for CUNA Mutual Group(3) , another designated senior legal or
compliance officer of the Trusts or of a company ("Control Company") in a
control relationship to the Trusts (as such term is defined under Section
2(a)(19) of the 1940 Act), a designated senior legal or compliance officer of a
Control Company of the Trusts, or another appropriate designated person (each
hereinafter referred to as a "Designated Person").(4)
As discussed in footnote 3, given the seniority of the Covered Officers,
investigations, interpretations and waivers(5) regarding any existing, actual or
potential violation of this Code shall be the responsibility of the Designated
Person(s); except that interpretations or waivers sought by the President of the
affected Trusts shall be considered by the Audit Committee or the Board of
Trustees of such Trust.
NOT A 1940 ACT RULE 17j-1 CODE OF ETHICS. This Code is not adopted under, nor
intended to serve as a basis for complying with the requirements of, Rule 17j-1
under the 1940 Act.
II. COVERED OFFICERS SHOULD ACT HONESTLY AND CANDIDLY
This Code is applicable to all Covered Officers of the Trusts. Each Covered
Officer should adhere to a high standard of business ethics and should be
sensitive to situations that may give rise to actual as well as apparent
conflicts of interest.
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make the disclosure discussed in this footnote irrespective of whether these
officers are employed by the registrant or a third party.
(2) The SEC rules require disclosure only about whether the registrant has
adopted a code of ethics in accordance with the 2002 Act, but, in view of the
seniority of the officers covered by the Code, it has been deemed appropriate
that the Trusts' respective Boards of Trustees also adopt this Code for the
Trusts.
(3) CUNA Mutual Group is the unifying name for CUNA Mutual Insurance Society,
Inc. and its affiliates.
(4) The SEC has indicated that any Designated Person "should have sufficient
status within the company to engender respect for the [C]ode and the authority
to adequately deal with the persons subject to the [C]ode regardless of their
stature in the company." In addition a Designated Person also may be a Trustee
of a Trust who is not deemed to be an "interested person" of the Trust, as that
term is defined under Section 2(a)(19) of the 1940 Act (hereinafter, an
"Independent Trustee"), the chairperson of the Audit Committee of the Board of
Trustees ("Audit Committee") of a Trust, or even the counsel to the Independent
Trustees, as appropriate.
(5) Item 2 of Form N-CSR defines "waiver" as "the approval by the registrant of
a material departure from a provision of the code of ethics" and "implicit
waiver," which also must be disclosed in the Form N-CSR, as "the registrant's
failure to take action within a reasonable period of time regarding a material
departure from a provision of the code of ethics that has been made known to an
executive officer of the registrant."
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Each Covered Officer must:
o Act with integrity, including being honest and candid while still
maintaining the confidentiality of information where required by law
of the Trust's policies;
o Observe applicable laws and governmental rules and regulations,
accounting standards and Trust policies;
o Adhere to a high standard of business ethics; and
o Place the interests of the Trust and its shareholders before the
Covered Officer's own personal interests.
All activities of Covered Officers should be guided by and adhere to these
standards.
III. COVERED OFFICERS SHOULD HANDLE ETHICALLY ACTUAL AND APPARENT CONFLICTS OF
INTEREST
OVERVIEW. The 1940 Act is designed, in part, to address inherent conflicts of
interest that exist in the management of an investment company's assets by a
third party (i.e., the investment company's investment adviser). Similarly, the
Investment Advisers Act of 1940, as amended, (the "Advisers Act"), addresses
conflicts of interest faced by an investment adviser in the management of client
assets. The principles set forth in this section relating to conflicts of
interest reflect the fact that investment companies and investment advisers
thereof already are subject to prohibitions on certain activities, including
self-dealing, and substantial limitations regarding conflicts of interest by the
1940 Act and the Advisers Act and the SEC rules promulgated thereunder. In light
of the existing structural, statutory and regulatory environment for registered
investment companies, a code of ethics broader than necessary to meet the new
2002 Act code of ethics requirement may be unnecessary. This Code, however, is
intended to reflect the general principal recognizing the need to hold persons
responsible for managing other people's money to the highest standards of
integrity.
GUIDING PRINCIPLES. A "conflict of interest" occurs when a Covered Officer's
private interest interferes with the interests of, or his or her service to, a
Trust. A conflict of interest can arise when a Covered Officer has interests
that may make it difficult to perform that Covered Person's work related to the
Trust objectively. For example, a conflict of interest would arise if a Covered
Officer, or a member of his or her family, receives improper personal benefits
as a result of such Covered Officer's position in the Trust. Service to the
Trust should not be subordinated to personal gain and advantage.
Certain conflicts of interest arise out of the relationships between Covered
Officers and the Trust that already are subject to conflict of interest
provisions in the 1940 Act and 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 the Trust because of their status as
"affiliated persons" of the Trust, as that term is defined under
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Section 2(a)(3) of the 1940 Act. The Trust's and the investment adviser's
compliance programs and procedures are designed to prevent, or identify and
correct, violations of these provisions. This Code does not, and is not intended
to, repeat or replace these 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 the Trust and the investment adviser 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 the
Trust or for the adviser, or for both), be involved in establishing policies and
implementing decisions which will have different effects on the adviser and the
Trust. The participation of the Covered Officers in such activities is inherent
in the contractual relationship between the Trust and the adviser and is
consistent with the performance by the Covered Officers of their duties as
officers of the Trust and, if addressed in conformity with the provisions of the
1940 Act and the Advisers Act will be deemed to have been handled ethically. In
addition, it is recognized by the Board of Trust 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 in the Acts. In reading the following
examples of conflicts of interest under the Code, Covered Officers should keep
in mind that such a list cannot ever be exhaustive by covering every possible
scenario. It follows that the overarching principle is that the personal
interest of a Covered Officer should not be placed improperly before the
interest of the Trust.
Each Covered Officer must:
o Not use personal influence or personal relationships improperly to
influence investment decisions or financial reporting by a Trust
whereby the Covered Officer would benefit personally to the
detriment of the Trust;
o Not cause a Trust to take action, or fail to take action, for the
individual personal benefit of the Covered Officer rather than the
benefit the Trust;
o Not use material non-public knowledge of portfolio transactions made
or contemplated for a Trust to profit or cause others to profit in
contemplation of the market effect of such transactions;
o Report at least annually on the Trust's "Trustees and Officers
Questionnaire" any and all material transactions, affiliations or
relationships that could reasonably expected to give rise to, or be
related to, a conflict of interest; and
o Handle any actual or apparent conflict of interest ethically.
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Certain conflict of interest situations should always, if material, be discussed
with the Designated Persons. Examples of these include:
o Service as a director or trustee on the board of any non-charitable
or commercial company;
o The receipt of any gifts of more than de minimis value (i.e., gifts
in excess of $100) from any person or entity that does business with
or on behalf of a Trust;
o The receipt of any entertainment from any company with which a Trust
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;
o Any ownership interest in, or any consulting or employment
relationship with, any of the Trust's service providers, other than
its investment adviser, principal underwriter, administrator or any
affiliated person thereof;
o A direct or indirect financial interest in commissions, transaction
charges or spreads paid by the Trust 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.
In addition, any activity or relationship that would present a conflict of
interest for a Covered Officer also would likely present a conflict for the
Covered Officer if a member of the Covered Officer's family engages in such an
activity or has such a relationship.
IV. DISCLOSURE AND COMPLIANCE
o Each Covered Officer should be familiar with the disclosure
requirements generally applicable to the Trusts;
o Each Covered Officer should not knowingly misrepresent, or cause
others to misrepresent, facts about the Trusts to others, whether
within or outside the Trusts, including to the Trusts' trustees and
auditors, and to governmental regulators and self-regulatory
organizations;
o Each Covered Officer should, to the extent appropriate within his or
her area of responsibility, consult with other officers and
employees of the Trusts and the adviser with the goal of promoting
full, fair, accurate, timely and understandable disclosure in the
reports and documents the Trusts file with, or submit to, the SEC
and in other public communications made by the Trusts; and
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o It is the responsibility of each Covered Officer to promote
compliance with the standards and restrictions imposed by applicable
laws, rules and regulations.
In addition, each Covered Officer is required to be familiar, and to comply,
with the relevant Trust's Disclosure Controls and Procedures in connection with
the 2002 Act so that the Trust's subject reports and documents filed with the
SEC comply in all material respects with the applicable federal securities laws
and SEC rules. Moreover, each Covered Officer having direct or supervisory
authority regarding these SEC filings or the relevant Trust's other public
communications, also should consult, to the extent appropriate within the
Covered Person's area of responsibility, with Control Company officers and
employees and take appropriate steps regarding such disclosures with the goal of
rendering such disclosures full, fair, accurate, timely and understandable.
V. REPORTING AND ACCOUNTABILITY
Each Covered Officer must:
o Upon adoption of the Code, sign and submit to the Funds' Chief
Compliance Officer a written acknowledgement that he or she has
received, read, and understands the Code;
o Annually thereafter affirm to the Funds' Chief Compliance Officer in
writing that he or she has complied with the requirements of the
Code;
o Not retaliate against any employee or Covered Officer for reports of
potential violations that are made in good faith; and
o Notify the Designated Person(s) promptly if he or she knows of any
violation of this Code. Failure to do so is itself a violation of
this Code.
Except as otherwise described below, the Designated Person(s) will be
responsible for applying this Code to specific situations in which questions are
presented under it and shall have the authority to interpret this Code in any
particular situation. The Designated Person(s) shall take all actions that such
Designated Person(s) may deem necessary and appropriate to investigate any
reported existing, actual or potential violations. Such actions will include
reporting any existing or actual violations of this Code to the Funds' Chief
Compliance Officer, as well as reporting, when such Designated Person deems
necessary or appropriate, potential violations of this Code to the Funds' Chief
Compliance Officer. In addition, any conflicts of interest that pertain to a
Trust's president shall be submitted for consideration to the Chief Compliance
Officer for CUNA Mutual Group (the "CCO"). The CCO shall be responsible for
making a recommendation as to any approvals or waivers sought by the president
of a Trust and shall refer such recommendation to the Funds' Chief Compliance
Officer, which shall then follow such recommendation.
The Funds' Chief Compliance Officer shall report, or cause to be reported, to
each Trust's Board, on an annual basis, any issues arising under this Code.
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The Trusts will follow these procedures in investigating and enforcing this
Code:
o Designated Person(s) will take all appropriate action to investigate
any potential violations reported thereto;
o If, after such investigation, a Designated Person determines that no
violation has occurred, he or she is not required to take any
further action;
o Any matter that a Designated Person determines is a violation will
be reported to the Funds' Chief Compliance Officer;
o If the Funds' Chief Compliance Officer concurs that a violation has
occurred, he or she will consider appropriate action, which may
include review of, and appropriate modifications to, applicable
policies and procedures, as well as notification to appropriate
personnel of the investment adviser or its board, or of the affected
Trust's Control Company. In addition, the Funds' Chief Compliance
Officer shall determine whether to refer the matter to the affected
Trust's Board for a determination of whether to dismiss the Covered
Officer is appropriate, if, in its judgment, such corrective action
may be warranted;
o The Designated Person(s) will be responsible for granting waivers,
as appropriate, and will make a report concerning such waivers to
the Funds' Chief Compliance Officer; and
o Any changes to or waivers of this Code will, to the extent required,
be disclosed as provided by SEC rules.
VI. OTHER POLICIES AND PROCEDURES
This Code shall be the sole code of ethics adopted by the Trusts for purposes of
Section 406 of the 2002 Act and the rules and forms applicable to registered
investment companies thereunder. Insofar as other policies or procedures of the
Trusts, the Trusts' adviser, principal underwriter, or other service providers
govern or purport to govern the behavior or activities of the Covered Officers
who are subject to this Code, they are super-ceded by this Code to the extent
that they overlap or conflict with the provisions of this Code. The Trusts' and
their investment adviser's and principal underwriter's codes of ethics under
Rule 17j-1 under the 1940 Act and the Advisers Act are separate requirements
applying to the Covered Officers and others, and are not part of this Code.
VII. AMENDMENTS
Except as to Exhibit A, this Code may not be amended except in written form,
which is specifically approved or ratified by a majority vote of each Trust's
respective Board, including a majority of its independent Trustees.
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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 appropriate Board and their counsel, the
appropriate Trust and its adviser, the Funds' Chief Compliance Officer,
Designated Person(s), appropriate personnel within the Office of the General
Counsel and other appropriate compliance personnel.
IX. INTERNAL USE
The Code is intended solely for the internal use by the Trusts and does not
constitute an admission, by or on behalf of any Trust, as to any fact,
circumstance, or legal conclusion.
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EXHIBIT A
COVERED PRINCIPAL EXECUTIVE AND FINANCIAL OFFICERS
MEMBERS MUTUAL FUNDS
David P. Marks, President
Holly S. Baggot, Treasurer
ULTRA SERIES FUND
David P. Marks, President
Holly S. Baggot, Treasurer
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MEMBERS MUTUAL FUNDS
ULTRA SERIES FUND
CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND
SENIOR FINANCIAL OFFICERS
INITIAL CERTIFICATION OF RECEIPT
(This certification must be returned to the Chief Compliance Officer within
10 days of receipt of a copy of the Code)
I hereby acknowledge that I have received, read and understood the MEMBERS
Mutual Funds and Ultra Series Fund Code of Ethics for Principal Executive and
Senior Financial Officers ("Code"). I understand and agree that as a Covered
Officer, I am subject to and will abide by the Code's provisions and all
amendments to the Code. I further undertake to obey the rules of any regulatory
body with which the MEMBERS Mutual Funds or Ultra Series Fund may be required to
comply and any addition, amendment or replacement that is set out in any written
notice that is subsequently given to me. I understand that failure to follow
such policies and procedures can result in disciplinary action by the Board of
Trustees of the MEMBERS Mutual Funds and/or Ultra Series Fund, as well as
possible civil and criminal penalties.
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Signature Date
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Print Name
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