MARCH 1, 2000
THE FOLLOWING INFORMATION REPLACES THE SECTION "HOW TO EXCHANGE SHARES" IN THE
PROSPECTUS.
EXCHANGE PRIVILEGE
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Shares in the James Money Market Account and shares of any of the James
Advantage Funds may be exchanged for each other. A sales load may be imposed (if
applicable) equal to the excess, if any, of the sales load rate applicable to
the shares being acquired over the sales load rate, if any, previously paid on
the shares being exchanged.
The following funds of The James Advantage Funds are currently offered to the
public.
JAMES ADVANTAGE FUNDS
The Golden Rainbow Fund
The James Small Cap Value Fund
The James Large Cap Plus Fund
The James Market Neutral Fund
You may request an exchange by sending a written request to the Transfer Agent.
The request must be signed exactly as your name appears on the Fund's account
records. Exchanges also may be requested by telephone. If you are unable to
execute your exchange by telephone (for example during times of unusual market
activity) consider requesting your exchange by mail or by visiting the Transfer
Agent's offices at 312 Walnut Street, 21st Floor, Cincinnati, Ohio 45202. An
exchange will be effected at the next determined net asset value (or offering
price if sales load is applicable) after receipt of request by the Transfer
Agent.
Exchanges may be made only for shares of Funds then offered for sale in your
state of residence and are subject to the applicable minimum initial investment
requirements. The exchange privilege may be modified or terminated by the Board
of Trustees upon 60 days' prior notice to shareholders. An exchange results in a
sale of Fund shares, which may cause you to recognize a capital gain or loss.
Before making an exchange, contact the Transfer Agent to obtain a current
prospectus for any of the Funds of The James Advantage Funds and for more
information about exchanges among The James Advantage Funds.
