James has been managing investments since 1972, and became the advisor to the Common Trust Funds of Citizen Federal Bank, Dayton, Ohio, in 1984. This fund was converted to a mutual fund advised by James Investment Research, Inc. and managed by Flagship Financial in 1991. In 1998, James assumed the management responsibilities from the John Nuveen Company of Chicago, which had purchased Flagship. James contracted with Integrated Fund Services, Inc, Cincinnati, Ohio to be the Transfer Agent and IFS Fund Distributors, Inc. in Cincinnati, Ohio to be the Distributor. Firstar Bank became the Custodian, and Thompson Hine LLP became the Legal Counsel.

The James Advantage Family of funds is growing. James currently offers four funds, managed by James. The James Balanced: Golden Rainbow is a conservative balanced fund representing the style of management for which James is known. The James Small Cap Fund and the James Market Neutral Fund were added to the family in October, 1998. The James Small Cap is a more aggressive, all equity fund investing in stocks with market capitalization of $1.5 billion or less. The James Market Neutral is a Long/Short style which uses James proprietary model to buy stocks believed to be undervalued by the market and sells short stocks believed to be overvalued by the market. The James Equity Fund was added in November 1999. This all equity fund seeks to outperform the S&P 500 index. Please read the prospectus carefully to get a more complete description of these funds and their objectives and risks.

James Investment Research is located on 35 acres of prairie and forest in rural Greene County, Ohio, about 20 minutes from downtown Dayton. Dr. Frank James, PhD., founded the company in 1972 and has overseen its dramatic growth over the years. James has developed a quantitative model which uses a large number of statistical indicators to help choose stocks with a higher probability of rising in price over the coming months than that of the broader market. James has traditionally done most of its own research, and its location away from the disruptive, herd mentality of large financial centers is evidence of the independent thinking of its research analysts and portfolio managers.