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[JAMES INVESTMENT RESEARCH INC., LETTERHEAD]
26 May 1998
To Shareholders of the Golden Rainbow Fund:
Good news!
I am glad to report our plans for the Golden Rainbow A James Advised Mutual Fund
to come "back home," to the Southwestern Ohio area.
James Investment Research, Inc. is completing arrangements to purchase the
management responsibility of the Fund from John Nuveen & Company Incorporated.
We hope to complete arrangements for the purchase during the second quarter of
this year.
Your fund began in 1984 as common trust funds of the Citizens Federal Trust
Department. After conversion to a mutual fund in 1991, managed and administered
by the Flagship Financial, Inc., of Dayton Ohio, we continued as investment
adviser. Subsequently, Flagship Financial was merged with the John Nuveen &
Company Incorporated, of Chicago, in 1996.
Full details will be provided as they are completed, but I can tell you that we
have structured the transaction so that the transfer from Nuveen will be a tax
free transaction to fund shareholders. We anticipate lowering fund expenses, and
providing improved communications to shareholders.
As you know, our firm and our employees are major shareholders in the fund, and
we are looking forward to the future, as the fund "Comes Home."
Sincerely,
/s/F.E. James
F.E. James, Ph.D.
Note: The filing of this letter shall not be construed as an admission that it
is a solicitation as defined in Rule 14a-1 of the proxy rules.
