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The James Equity Fund
a series of The James Advantage Funds
Supplement Dated May 13, 2010
to Prospectus Dated March 20, 2010
The Board of Trustees of the James Advantage Funds has concluded, based on the
recommendation of James Investment Research, Inc., that it is in the best interests of The James
Equity Fund and its shareholders that the Fund cease operations. The Board has determined to
close the Fund, and redeem all outstanding shares, on June 26, 2010.
As a result of the decision to close the Equity Fund, the Trustees authorized the Fund’s
investment adviser to begin liquidating the Fund’s portfolio in an orderly fashion and to invest
the proceeds of the liquidation in cash equivalents. Effective May 13, 2010, the Fund is no
longer pursuing its investment objective and shares of the Fund are not available for purchase.
Any capital gains will be distributed as soon as practicable to shareholders and reinvested in
additional shares, unless you have requested payment in cash.
Prior to June 26, 2010, you may redeem your account, including reinvested distributions, in
accordance with the “How to Redeem Shares” section in the Prospectus. Alternatively, you may
exchange your shares for shares of any other James Advantage Fund, in accordance with the
“How to Exchange Shares” section in the Prospectus. If you have questions or need assistance,
please contact ALPS Fund Services at 1-800-995-2637.
ANY SHAREHOLDERS WHO HAVE NOT REDEEMED OR EXCHANGED THEIR
SHARES OF THE FUND PRIOR TO JUNE 26, 2010 WILL HAVE THEIR SHARES
AUTOMATICALLY REDEEMED AS OF THAT DATE, AND PROCEEDS WILL BE
MAILED TO THE ADDRESS OF RECORD.
IMPORTANT INFORMATION FOR RETIREMENT PLAN INVESTORS
If you are a retirement plan investor, you should consult your tax advisor regarding the
consequences of a redemption or exchange of Fund shares. If you receive a distribution from an
Individual Retirement Account or a Simplified Employee Pension (SEP) IRA, you must roll the
proceeds into another Individual Retirement Account within sixty (60) days of the date of the
distribution in order to avoid having to include the distribution in your taxable income for the
year. If you receive a distribution from a 403(b)(7) Custodian Account (Tax-Sheltered account)
or a Keogh Account, you must roll the distribution into a similar type of retirement plan within
sixty (60) days in order to avoid disqualification of your plan and the severe tax consequences
that it can bring. If you are the trustee of a Qualified Retirement Plan, you may reinvest the
money in any way permitted by the plan and trust agreement.
This Supplement and the existing Prospectus dated March 20, 2010, provide relevant
information for all shareholders and should be retained for future reference. Both the Prospectus
and the Statement of Additional Information dated March 20, 2010 have been filed with the
Securities and Exchange Commission, are incorporated herein by reference, and can be
obtained without charge by calling the Fund at 1-877-217-8363.
771939.2
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