0001398344-21-005657.txt : 20210304 0001398344-21-005657.hdr.sgml : 20210304 20210304154143 ACCESSION NUMBER: 0001398344-21-005657 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 14 CONFORMED PERIOD OF REPORT: 20201231 FILED AS OF DATE: 20210304 DATE AS OF CHANGE: 20210304 EFFECTIVENESS DATE: 20210304 FILER: COMPANY DATA: COMPANY CONFORMED NAME: JAMES ADVANTAGE FUNDS CENTRAL INDEX KEY: 0001045487 IRS NUMBER: 000000000 STATE OF INCORPORATION: OH FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-08411 FILM NUMBER: 21713968 BUSINESS ADDRESS: STREET 1: 1349 FAIRGROUND RD CITY: BEAVERCREEK STATE: OH ZIP: 45385 BUSINESS PHONE: 9374267640 MAIL ADDRESS: STREET 1: 1349 FAIRGROUND RD CITY: BEAVERCREEK STATE: OH ZIP: 45385 FORMER COMPANY: FORMER CONFORMED NAME: JAMES FUNDS DATE OF NAME CHANGE: 19970904 0001045487 S000003560 James Balanced: Golden Rainbow Fund C000009900 Retail Class GLRBX C000075008 Institutional Class GLRIX 0001045487 S000003563 James Small Cap Fund C000009903 James Small Cap Fund JASCX 0001045487 S000029269 JAMES MICRO CAP FUND C000090023 JAMES MICRO CAP FUND JMCRX 0001045487 S000049901 James Aggressive Allocation Fund C000157576 James Aggressive Allocation Fund JAVAX N-CSRS 1 fp0062860_ncsrs.htm

 

UNITED STATES 

SECURITIES AND EXCHANGE COMMISSION 

WASHINGTON, D.C.  20549

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED 

MANAGEMENT INVESTMENT COMPANIES

 

811-08411 

(Investment Company Act file number)

 

The James Advantage Funds 

(Exact name of registrant as specified in charter)

 

1349 Fairground Road 

Xenia, Ohio 45385 

(Address of principal executive offices)   (Zip code)

 

Barry R. James 

P.O. Box 8 

Alpha, Ohio 45301 

(Name and address of agent for service)

 

Registrant’s telephone number, including area code: (937) 426-7640

 

Date of fiscal year end: June 30

 

Date of reporting period: July 1, 2020 – December 31, 2020

 

 

Item 1. Reports to Stockholders.

 

(a) 

(image) 

 

TABLE OF CONTENTS

 

Shareholder Letter 1
Growth of $10,000 or $50,000 Charts 4
Representation of Schedules of Investments 7
Disclosure of Fund Expenses 8
Schedule of Investments  
James Balanced: Golden Rainbow Fund 9
James Small Cap Fund 14
James Micro Cap Fund 17
James Aggressive Allocation Fund 19
Statements of Assets and Liabilities 23
Statements of Operations 24
Statements of Changes in Net Assets 25
Financial Highlights  
James Balanced: Golden Rainbow Fund - Retail Class 30
James Balanced: Golden Rainbow Fund - Institutional Class 31
James Small Cap Fund 32
James Micro Cap Fund 33
James Aggressive Allocation Fund 34
Notes to Financial Statements 35
Additional Information 42
Privacy Policy 43

 

 

James Advantage Funds Shareholder Letter

 

  December 31, 2020 (Unaudited)

 

LETTER TO THE SHAREHOLDERS 

OF THE JAMES ADVANTAGE FUNDS

 

First and foremost, all of us at the James Advantage Funds hope you and your family are in good health, both physically and mentally. To say 2020 was “wild” or “unprecedented” does not fully do justice to how extreme the year truly was. Unfortunately, millions of people across the United States have lost their jobs due to the global pandemic and the need to temporarily close down businesses to slow the spread of Covid-19. Nobody would have believed you if you told them in March they would celebrate Thanksgiving and Christmas with family over a Zoom call or that many stocks and indices would be setting record highs by the end of the year.

 

The Markets Over the Past Six Months

 

With 20/20 hindsight, the second half of 2020 saw spectacular returns for the markets. Fear of the virus and shutdowns, turned into hope and optimism as states began to open back up. Enthusiasm grew even more as several pharmaceutical companies announced a potentially effective vaccine to ward off Covid-19. In the second half of calendar year 2020, the Russell 1000® Index increased 24.46% and the NASDAQ advanced by 28.67%. The Russell 2000® Index, which is comprised of small capitalization stocks, was the market leader in the second half of the year advancing 37.85%, perhaps showing more investor confidence as smaller companies are often more vulnerable to major market events.

 

While stocks were advancing, fixed income investments (bonds) made money too, just not as much as the stock market. Case in point, the Bloomberg Barclays Capital U.S. Intermediate Government/Credit Bond Index, a broad based benchmark of treasuries, government related notes and corporate issues, posted a positive return of 1.10% over the same timeframe.

 

Investment Goals and Objectives

 

The James Balanced: Golden Rainbow Fund (the “Golden Rainbow Fund”) seeks to provide total return through a combination of growth and income and preservation of capital in declining markets. The Golden Rainbow Fund will generally hold positions in common stocks that in aggregate constitute between 35 percent and 55 percent of the net assets. Bonds held in the fund must be rated at or above Baa2 by Moody’s or BBB by S&P at the time of purchase. The Golden Rainbow Fund may hold municipal bonds, but generally buys them when we feel they are attractively priced compared with taxable bonds.

 

The Golden Rainbow Fund’s benchmark is a blend of 25% Russell 1000® Index, 25% Russell 2000® Index and 50% Bloomberg Barclays Capital U.S. Intermediate Government/Credit Bond Index. The benchmark is the same for all share classes of the Golden Rainbow Fund. We believe this index to be an appropriate benchmark for the Fund as it provides representation from both large, mid and small capitalization stocks as well as a fixed income component.

 

The James Aggressive Allocation Fund (the “Aggressive Allocation Fund”) seeks to provide total return through a combination of growth and income, but preservation of capital in declining markets is a secondary objective. Shareholders should be aware this Fund will likely have a higher level of volatility than the Golden Rainbow Fund. The Aggressive Allocation Fund’s benchmark is a blend of 65% Russell 3000® Index and 35% Bloomberg Barclays U.S. Aggregate Government/Credit Bond Index.

 

The James Small Cap Fund (the “Small Cap Fund”) and the James Micro Cap Fund (the “Micro Cap Fund”) each seek to provide long-term capital appreciation. These Funds hold only equity securities and cash/cash equivalents, under most circumstances. The Small Cap Fund’s benchmark is the Russell 2000® Index, and the Micro Cap Fund’s benchmark is the Russell Microcap® Index.

 

Investment Philosophy

 

James Investment Research, Inc., the James Advantage Funds’ adviser (the “Adviser” or “JIR”), commenced operations in 1972 and became known as a value manager, identifying stocks with good relative valuations, profitability and price momentum. The Adviser’s research, along with much academic research, supports the view that value investing tends to outperform growth investing over the longer-run. There are times however when traditional valuation techniques do not equate to future stock market performance. This is why we use a three factor approach, often times relying more on profitability and momentum.

 

The James Advantage Funds offer several different styles, but they all use the Adviser’s “bargain” or value approach to stock selection. The Aggressive Allocation Fund generally takes on greater risk than the Golden Rainbow Fund in terms of its higher allocation to stocks, but still seeks to reduce that risk in anticipation of a major decline in stock prices. Due to potentially higher equity levels, Aggressive Allocation Fund shareholders should generally have higher risk appetites for their mutual fund investments than those in the Golden Rainbow Fund. 

 

 

Semi-Annual Report | December 31, 2020 1

 

 

Shareholder Letter James Advantage Funds

 

December 31, 2020 (Unaudited)  

 

The Micro Cap Fund and the Small Cap Fund invest in smaller capitalization companies. The Small Cap and Micro Cap Funds are niche products designed to meet the objectives of investors who want to establish diversified positions in these areas. As these Funds are equity products, they are intrinsically riskier than other products holding bonds and the shareholder should expect relatively greater volatility in Net Asset Value (“NAV”) prices and a higher standard deviation of returns. Still, these portfolios hold stocks that are ranked highly by the Adviser’s models and pass a thorough review by the Adviser’s researchers and portfolio managers.

 

The Adviser has no soft-dollar arrangements, and does not purchase research from any broker/dealers.

 

Strategy for Seeking to Meet Fund Objectives

 

For the Balanced: Golden Rainbow and the Aggressive Allocation, the main objective is to provide total return through growth and income. The Adviser has always held to the belief preservation of capital in down markets is the key to long-term investment success. Hence, the Golden Rainbow Fund seeks to preserve capital by constructing a portfolio of both bonds and stocks. In the past, stocks have often provided capital appreciation when the economy has proven to be strong. Bonds, in general, are uncorrelated with stocks, and can provide asset class diversification as well as an income stream. In times when the stock market is strong, some investors may forget these positive characteristics of bonds, but the Golden Rainbow Fund has always held a significant position in bonds. The Aggressive Allocation Fund has a similar portfolio construction however it tends to hold a higher allocation to stocks and lower investment in bonds.

 

The Small Cap Fund and the Micro Cap Fund look for stocks the Adviser believes to be undervalued, using its proprietary research to screen a database of over 3,000 stocks. Deterioration in a stock’s fundamental value characteristics can lead the Adviser to trim or sell the position.

 

Fund Performance

 

The Golden Rainbow Fund and the Aggressive Allocation Fund both hold significant bond positions. The expectation is that in periods of strong stock market returns, the Funds will participate, however not to the full extent, in the all stock indices. The same can be said should stocks fall. These balanced styles strive to lessen the volatility many pure stock funds experience. Over the six-month period ended December 31, 2020, the Retail Class shares of the Golden Rainbow Fund advanced 7.19% and the Institutional Class shares advanced 7.32%. The Golden Rainbow Fund paid out a regular dividend every quarter. The Retail Class shares paid 5.23 cents per share in September and 4.91 cents per share in December. The Institutional Class shares paid 6.58 cents per share in September and 6.28 cents per share in December. Additionally, in December the Golden Rainbow Fund paid all shareholders a long-term capital gains distribution of 2.92 cents per share.

 

Over the six months ended December 31, 2020, the Small Cap Fund increased 29.34%. The Small Cap Fund paid an ordinary dividend of 12.51 cents per share in December and did not pay a capital gain for the year.

 

The Micro Cap Fund increased 24.57% for the six months ended December 31, 2020. The Fund did not pay a long-term capital gain in December, but it did pay an ordinary dividend of 8.42 cents per share.

 

The Aggressive Allocation Fund is like the Golden Rainbow Fund in the sense that its strategy requires the Fund to hold both stocks and bonds. However, it is a more aggressive fund and generally will hold a higher allocation to stocks than the Golden Rainbow Fund. The Aggressive Allocation Fund paid an ordinary dividend of 8.86 cents per share in December. No capital gain distribution was paid. For the six months ended December 31, 2020, the Aggressive Allocation Fund increased by 12.99%.

 

Expectations for the Future

 

Looking back, we noted the virus and the accompanying shut-downs. However, as we look ahead, we believe there is potential for economic growth due to re-openings and pent up demand. We envision a return to ‘regular life’ with vacations, attending a sporting event and looking forward to, believe it or not, going back into the office. Should the vaccines be distributed in an efficient manner and prove to be successful, all of these things are within our reach. With talk of another additional stimulus plan, consumers may have cash in hand to make these purchases a reality. As such, even at elevated prices, we believe there may be room for stocks to grow.

 

One casualty of additional government spending may be fixed income investments, bonds. Large sums of money being sent out into the economy could be viewed as inflationary which would erode the future value of fixed income payments.

 

 

2www.jamesinvestment.com

 

 

James Advantage Funds Shareholder Letter

 

  December 31, 2020 (Unaudited)

 

There is certainly a possibility this is a very slow process and takes a while longer than expected, or there may be setbacks due to spikes in Covid-19 numbers. We understand these speedbumps and expect them along the way. As issues arise, our active management approach allows us to remain flexible and take action accordingly.

 

Thank you once again for your continued support and confidence in the James Advantage Funds.

 

Brian P. Shepardson 

Secretary 

The James Advantage Funds

 

Brian Shepardson is a registered representative of ALPS Distributors, Inc.

 

The statements and opinions expressed are those of the author, are as of the date of this report, are subject to change, and may not reflect the writer’s current views. All information is historical and not indicative of future results and subject to change. It should not be assumed that an investment in the securities mentioned will be profitable in the future. This information is not a recommendation to buy or sell.

 

You should carefully consider the investment objectives, potential risks, management fees, and charges and expenses of the Fund before investing. The Fund’s prospectus contains this and other information about the Fund and should be read carefully before investing. You may obtain a current copy of the Fund’s prospectus by calling 1-800-995-2637.

 

Past performance is no guarantee of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Investors may obtain performance information current to the last month-end at www.jamesinvestment.com.

 

NASDAQ is a global electronic marketplace for buying and selling securities, as well as the benchmark index for U.S. technology stocks.

 

Standard deviation is a measure of the dispersion of a set of data from its mean and is one of the key fundamental risk measures used in the financial services industry.

 

Credit ratings apply the underlying holdings of the Fund, and not to the Fund itself. Moody’s and S&P study the financial condition of an entity to ascertain its creditworthiness. The credit ratings reflect the rating agency's opinion of the holdings financial condition and histories. The ratings shown (Baa2 by Moody’s/BBB by S&P) are all considered investment grade and are listed by highest to lowest in percentage of what the Fund holds.

 

Diversification does not eliminate the risk of experiencing investment loss.

 

ALPS Distributors, Inc. 1290 Broadway, Ste. 1000, Denver, CO 80203 (Member FINRA). ALPS is not affiliated with James Investment Research, Inc.

 

 

Semi-Annual Report | December 31, 2020 3

 

 

Growth of $10,000 or $50,000 Charts James Advantage Funds

 

December 31, 2020 (Unaudited)  

  

Comparison of the Change in Value of a $10, 000 Investment in the James Balanced: Golden Rainbow Fund – Retail Class 

 

 (image)

 

James Balanced: Golden Rainbow Fund – Retail Class Average Annual Total Returns

 

  1 Year 5 Years 10 Years

Since

 Inception(2)

James Balanced: Golden Rainbow – Retail Class 1.54% 2.39% 4.36% 7.03%
Blended Index(1) 14.66% 9.44% 8.17% 8.25%
Russell 1000® Index 20.96% 15.60% 14.01% 10.56%
Russell 2000® Index 19.96% 13.26% 11.20% 10.22%
Bloomberg Barclays U.S. Intermediate Government/ Credit Bond Index 6.43% 3.64% 3.11% 5.25%

 

(1)The Blended Index is comprised of a 25% weighting in the Russell 1000® Index, a 25% weighting in the Russell 2000® Index and a 50% weighting in the Bloomberg Barclays U.S. Intermediate Government/Credit Bond Index.

(2)Fund and Class inception was July 1, 1991.

 

The total annual operating expense ratio as stated in the fee table of the most recent prospectus, dated November 1, 2020, was 1.13%.

Comparison of the Change in Value of a $50,000 Investment in the James Balanced: Golden Rainbow Fund – Institutional Class

 

(image) 

 

James Balanced: Golden Rainbow Fund – Institutional Class Average Annual Total Returns

 

  1 Year 5 Years 10 Years

 Since

Inception(2)

James Balanced: Golden Rainbow – Institutional Class 1.83% 2.65% 4.62% 6.99%
Blended Index(1) 14.66% 9.44% 8.17% 10.78%
Russell 1000® Index 20.96% 15.60% 14.01% 17.96%
Russell 2000® Index 19.96% 13.26% 11.20% 16.86%
Bloomberg Barclays U.S. Intermediate Government/ Credit Bond Index 6.43% 3.64% 3.11% 3.61%

 

(1)The Blended Index is comprised of a 25% weighting in the Russell 1000® Index, a 25% weighting in the Russell 2000® Index and a 50% weighting in the Bloomberg Barclays U.S. Intermediate Government/Credit Bond Index.
(2)Class inception was March 2, 2009.

  

The total annual operating expense ratio as stated in the fee table of the most recent prospectus, dated November 1, 2020, was 0.88%.


Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. These performance figures do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Please call 1-800-995-2637 for most recent month-end performance information.

 

The Russell 1000® Index is an index of approximately 1,000 of the largest companies in the U.S. equity market. The Russell 1000® Index is a subset of the Russell 3000® Index. It represents the top companies by market capitalization.

 

The Russell 2000® Index is a widely recognized, unmanaged index comprised of the 2,000 smallest U.S. domiciled publicly-traded common stocks of the Russell 3000® Index, which represents approximately 8% of the total market capitalization of the Russell 3000® Index, an unmanaged index of the 3,000 largest U.S. domiciled publicly-traded common stocks by market capitalization.

 

The Bloomberg Barclays U.S. Intermediate Government/Credit Bond Index measures the performance of U.S. Dollar denominated U.S. Treasuries, government-related and investment grade U.S. corporate securities that have a remaining maturity of greater than one year and less than ten years.

 

The Russell 1000® Index, Russell 2000® Index, Bloomberg Barclays U.S. Intermediate Government/Credit Bond Index and Blended Index are widely recognized unmanaged indices of security prices and are representative of a broader market and range of securities than is found in the Fund’s portfolio. The Index returns do not reflect the deduction of expenses, which have been deducted from a Fund’s returns. The Index returns assume reinvestment of all distributions and do not reflect the deduction of taxes and fees. Individuals cannot invest directly in any Index; however, an individual can invest in exchange traded funds or other investment vehicles that attempt to track the performance of a benchmark index.

 

 

4www.jamesinvestment.com

 

 

James Advantage Funds Growth of $10,000 or $50,000 Charts

 

  December 31, 2020 (Unaudited)

 

Comparison of the Change in Value of a $10,000 Investment in the James Small Cap Fund

 

 (image)

 

James Small Cap Fund 

Average Annual Total Returns

 

  1 Year 5 Years 10 Years

 Since

Inception(1)

James Small Cap Fund -1.11% 1.65% 5.63% 6.54%
Russell 2000® Index 19.96% 13.26% 11.20% 9.54%

 

(1)Fund inception was October 2, 1998.

 

The total annual operating expense ratio as stated in the fee table of the most recent prospectus, dated November 1, 2020, was 1.51%.

Comparison of the Change in Value of a $10,000 Investment in the James Micro Cap Fund 

 

 (image)

 

James Micro Cap Fund 

Average Annual Total Returns 

 

  1 Year 5 Years 10 Years

Since

Inception(1)

James Micro Cap Fund -4.20% 4.48% 7.46% 8.61%
Russell Microcap® Index 20.96% 11.89% 10.55% 12.80%

  

(1)Fund inception was July 1, 2010.

 

The total annual operating expense ratio as stated in the fee table of the most recent prospectus, dated November 1, 2020, was 1.51%.


Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. These performance figures do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Please call 1-800-995-2637 for most recent month-end performance information.

 

Small and Micro Cap investing involve greater risk not associated with investing in more established companies, such as greater price volatility, business risk, less liquidity and increased competitive threat.

 

The Russell Microcap® Index measures the performance of the microcap segment of the U.S. equity market. It makes up less than 3% of the U.S. equity market. It includes 1,000 of the smallest securities in the small cap Russell 2000® Index, plus the next smallest eligible securities by market cap.

 

The Russell 2000® Index is a widely recognized, unmanaged index comprised of the 2,000 smallest U.S. domiciled publicly-traded common stocks of the Russell 3000® Index, which represents approximately 8% of the total market capitalization of the Russell 3000® Index, an unmanaged index of the 3,000 largest U.S. domiciled publicly-traded common stocks by market capitalization.

 

The Russell 2000® Index and Russell Microcap® Index are widely recognized unmanaged indices of security prices and are representative of a broader market and range of securities than is found in the Fund’s portfolio. The Index returns do not reflect the deduction of expenses, which have been deducted from a Fund’s returns. The Index returns assume reinvestment of all distributions and do not reflect the deduction of taxes and fees. Individuals cannot invest directly in any Index; however, an individual can invest in exchange traded funds or other investment vehicles that attempt to track the performance of a benchmark index.

 

 

Semi-Annual Report | December 31, 2020 5

 

 

Growth of $10,000 or $50,000 Charts James Advantage Funds

 

December 31, 2020 (Unaudited)  

 

Comparison of the Change in Value of a $10,000 Investment in the James Aggressive Allocation Fund 

 

(image) 

 

James Aggressive Allocation Fund 

Average Annual Total Returns 

 

  1 Year 5 Years

Since

Inception(2)

James Aggressive -1.43% 3.47% 1.48%
Blended Index(1) 17.43% 12.01% 10.67%
Russell 3000® Index 20.89% 15.43% 13.50%
Bloomberg Barclays U.S. Aggregate Government/ Credit Bond Index 8.92% 4.98% 4.68%

 

(1)The Blended Index is comprised of a 65% weighting in the Russell 3000® Index and a 35% weighting in the Bloomberg Barclays U.S. Aggregate Government/Credit Bond Index.
 (2)Fund inception was July 1, 2015.

  

The total annual operating expense ratio as stated in the fee table of the most recent prospectus, dated November 1, 2020, was 0.99%.


Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. These performance figures do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Please call 1-800-995-2637 for most recent month-end performance information.

 

The Russell 3000® Index is a stock market index of U.S. stocks. The Index measures the performance of 3,000 publicly held U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market.

 

The Bloomberg Barclays U.S. Aggregate Government/Credit Bond Index is an unmanaged index generally representative of U.S. Dollar denominated U.S. Treasuries, government related and investment grade U.S. corporate securities, that have a remaining maturity greater than one year.

 

The Russell 3000® Index, Bloomberg Barclays U.S. Aggregate Government/Credit Bond Index and the Blended Index are widely recognized unmanaged indices of security prices and are representative of a broader market and range of securities than is found in the Fund’s portfolio. The Index returns do not reflect the deduction of expenses, which have been deducted from a Fund’s returns. The Index returns assume reinvestment of all distributions and do not reflect the deduction of taxes and fees. Individuals cannot invest directly in any Index; however, an individual can invest in exchange traded funds or other investment vehicles that attempt to track the performance of a benchmark index. 

 

 

6www.jamesinvestment.com

 

 

James Advantage Funds Representation of Schedules of Investments

 

  December 31, 2020 (Unaudited)

 

The illustrations below provide the industry sectors for the James Balanced: Golden Rainbow Fund, James Small Cap Fund, James Micro Cap Fund and James Aggressive Allocation Fund.

 

James Balanced: Golden Rainbow Fund - Industry Sector Allocation
(% of Net Assets)*

 

 (image)

 

James Micro Cap Fund - Industry Sector Allocation
(% of Net Assets)*

 

 (image)

James Small Cap Fund - Industry Sector Allocation
(% of Net Assets)*
  

 

(image) 

 

James Aggressive Allocation Fund - Industry Sector Allocation
(% of Net Assets)*

 

 (image)



*Holdings are subject to change, and may not reflect the current or future position of the portfolio.

 

 

Semi-Annual Report | December 31, 2020 7

 

 

Disclosure of Fund Expenses James Advantage Funds

 

December 31, 2020 (Unaudited)  

 

Example. As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including reinvested dividends or other distributions, and redemption fees; and (2) ongoing costs, including management fees, distribution (12b-1) fees and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

 

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period July 1, 2020 through December 31, 2020.

 

Actual Expenses. The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expense Paid During Period” to estimate the expenses you paid on your account during this period.

 

Hypothetical Example for Comparison Purposes. The second line of the table below provides information about hypothetical account values and hypothetical expenses based on a Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual returns. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a Fund and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

 

Please note that expenses shown in the table are meant to highlight and help you compare ongoing costs only. The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions. 

 

 

Net Expense 

Ratio

Annualized

December 31, 2020(a) 

Beginning

Account Value

July 1, 2020

Ending

Account Value 

December 31, 2020

 

Expense

Paid During

Period(b)

James Balanced: Golden Rainbow Fund          
Retail Class Actual 1.17% $ 1,000.00 $ 1,071.90 $ 6.11
Retail Class Hypothetical (5% return before expenses) 1.17% $ 1,000.00 $ 1,019.31 $ 5.96
Institutional Class Actual 0.92% $ 1,000.00 $ 1,073.20 $ 4.81
Institutional Class Hypothetical (5% return before expenses) 0.92% $ 1,000.00 $ 1,020.57 $ 4.69
James Small Cap Fund          
Actual 1.50% $ 1,000.00 $ 1,293.40 $ 8.67
Hypothetical (5% return before expenses) 1.50% $ 1,000.00 $ 1,017.64 $ 7.63
James Micro Cap Fund          
Actual 1.50% $ 1,000.00 $ 1,244.70 $ 8.49
Hypothetical (5% return before expenses) 1.50% $ 1,000.00 $ 1,017.64 $ 7.63
James Aggressive Allocation Fund          
Actual 1.01% $ 1,000.00 $ 1,129.90 $ 5.42
Hypothetical (5% return before expenses) 1.01% $ 1,000.00 $ 1,020.11 $ 5.14

 

(a)Annualized, based on the Fund's most recent fiscal half year expenses.

(b)Expenses are equal to the Fund's annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year (184), divided by 365.

 

 

8www.jamesinvestment.com

 

 

James Balanced: Golden Rainbow Fund Schedule of Investments

 

  December 31, 2020 (Unaudited)

 

Shares or Principal Amount  Value 
COMMON STOCKS-52.62%    
    Communication Services-4.21%    
 7,000   Alphabet, Inc., Class A*  $12,268,480 
 130,904   Comcast Corp., Class A   6,859,370 
 16,700   Facebook, Inc., Class A*   4,561,772 
 55,000   Verizon Communications, Inc.   3,231,250 
         26,920,872 
           
     Consumer Discretionary-5.44%     
 9,610   Alibaba Group Holding, Ltd., Sponsored ADR*   2,236,535 
 1,500   Amazon.com, Inc.*   4,885,395 
 12,831   Deckers Outdoor Corp.*   3,679,674 
 26,000   Helen of Troy, Ltd.*   5,776,940 
 16,930   Home Depot, Inc.   4,496,947 
 10,000   LGI Homes, Inc.*   1,058,500 
 30,000   McDonald's Corp.   6,437,400 
 20,540   Target Corp.   3,625,926 
 37,500   TJX Cos., Inc.   2,560,875 
         34,758,192 
           
     Consumer Staples-3.13%     
 40,000   Coca-Cola Co.   2,193,600 
 6,220   Costco Wholesale Corp.   2,343,572 
 46,000   Procter & Gamble Co.   6,400,440 
 62,785   Walmart, Inc.   9,050,458 
         19,988,070 
           
     Energy-1.74%     
 49,400   Chevron Corp.   4,171,830 
 23,000   Pioneer Natural Resources Co.   2,619,470 
 20,000   Renewable Energy Group, Inc.*   1,416,400 
 52,177   Valero Energy Corp.   2,951,653 
         11,159,353 
           
     Exchange Traded Funds-5.83%     
 457,836   iShares® Gold Trust*   8,300,567 
 50,330   iShares® Russell 2000® ETF   9,867,700 
 45,000   iShares® Russell 2000 Value ETF   5,928,750 
 140,000   Schwab Emerging Markets Equity ETF   4,291,000 
 85,000   Vanguard® FTSE All-World ex-US ETF   4,960,600 
 27,480   Vanguard® Small-Cap Value ETF   3,907,931 
         37,256,548 
           
     Financials-5.38%     
 12,000   Arthur J Gallagher & Co.   1,484,520 
 7,000   BlackRock, Inc.   5,050,780 
 81,694   Fifth Third Bancorp   2,252,304 
 83,070   JPMorgan Chase & Co.   10,555,705 
 40,034   LPL Financial Holdings, Inc.   4,172,343 
 7,500   MSCI, Inc.   3,348,975 
 17,630   Nelnet, Inc., Class A   1,255,961 
 40,000   Progressive Corp.   3,955,200 

 

See Notes to Financial Statements.  

 

Semi-Annual Report | December 31, 2020 9

 

 

Schedule of Investments James Balanced: Golden Rainbow Fund

 

December 31, 2020 (Unaudited)  

 

Shares or Principal Amount  Value 
     Financials (continued)     
 6,111   SVB Financial Group*  $2,370,029 
         34,445,817 
           
     Health Care-5.71%     
 40,003   Abbott Laboratories   4,379,928 
 9,000   Anthem, Inc.   2,889,810 
 95,000   AstraZeneca PLC, Sponsored ADR   4,749,050 
 10,000   Danaher Corp.   2,221,400 
 16,455   Eli Lilly & Co.   2,778,262 
 43,170   Johnson & Johnson   6,794,095 
 110,000   Pfizer, Inc.   4,049,100 
 18,780   UnitedHealth Group, Inc.   6,585,770 
 12,500   Zoetis, Inc.   2,068,750 
         36,516,165 
           
     Industrials-5.93%     
 34,500   AGCO Corp.   3,556,605 
 17,352   Caterpillar, Inc.   3,158,411 
 9,801   Deere & Co.   2,636,959 
 27,300   Eaton Corp. PLC   3,279,822 
 17,000   FedEx Corp.   4,413,540 
 15,000   Generac Holdings, Inc.*   3,411,150 
 8,300   Lockheed Martin Corp.   2,946,334 
 32,500   MasTec, Inc.*   2,215,850 
 10,000   Old Dominion Freight Line, Inc.   1,951,800 
 62,500   Schneider Electric SE, ADR   1,809,375 
 21,500   Union Pacific Corp.   4,476,730 
 17,500   United Rentals, Inc.*   4,058,425 
         37,915,001 
           
     Information Technology-10.89%     
 6,000   Adobe, Inc.*   3,000,720 
 107,500   Apple, Inc.   14,264,175 
 11,000   ASML Holding NV   5,364,920 
 18,048   Cadence Design Systems, Inc.*   2,462,289 
 38,000   Insight Enterprises, Inc.*   2,891,420 
 24,300   Invesco S&P® 500 Equal Weight Technology ETF   6,161,265 
 7,175   Lam Research Corp.   3,388,537 
 12,500   Mastercard, Inc., Class A   4,461,750 
 52,500   Microsoft Corp.   11,677,050 
 6,161   NVIDIA Corp.   3,217,274 
 21,000   PayPal Holdings, Inc.*   4,918,200 
 5,372   ServiceNow, Inc.*   2,956,910 
 29,819   SYNNEX Corp.   2,428,459 
 22,500   Taiwan Semiconductor Manufacturing Co., Ltd., ADR   2,453,400 
         69,646,369 
           
     Materials-1.72%     
 21,770   Avery Dennison Corp.   3,376,745 
 22,745   Celanese Corp.   2,955,485 
 8,000   Ecolab, Inc.   1,730,880 
 44,072   James Hardie Industries PLC, ADR*   1,307,175 

 

See Notes to Financial Statements.

 

10 www.jamesinvestment.com

 

 

James Balanced: Golden Rainbow Fund Schedule of Investments

 

  December 31, 2020 (Unaudited)

 

Shares or Principal Amount  Value 
    Materials (continued)     
35,000   Sealed Air Corp.  $1,602,650 
        10,972,935 
          
    Real Estate-1.09%     
6,000   Equinix, Inc., REIT   4,285,080 
27,000   Prologis, Inc., REIT   2,690,820 
        6,975,900 
          
    Utilities-1.55%     
37,500   American Water Works Co., Inc.   5,755,125 
53,540   NextEra Energy, Inc.   4,130,611 
        9,885,736 
TOTAL COMMON STOCKS     
(Cost $265,119,882)   336,440,958 

 

Shares or Principal Amount  Value 
CORPORATE BONDS-12.88%      
     Communication Services-0.17%     
$1,000,000   AT&T, Inc., 2.950%, 7/15/26   1,105,208 
           
     Consumer Discretionary-2.34%     
 5,000,000   eBay, Inc., 2.600%, 7/15/22   5,146,177 
 5,000,000   Home Depot, Inc., 2.700%, 4/1/23   5,243,859 
 785,000   McDonald's Corp., 5.700%, 2/1/39   1,133,232 
 1,000,000   Ross Stores, Inc., 4.700%, 4/15/27   1,179,697 
 2,000,000   Starbucks Corp., 2.550%, 11/15/30   2,162,276 
         14,865,241 
           
     Consumer Staples-0.77%     
 1,950,000   Keurig Dr Pepper, Inc., 2.530%, 11/15/21   1,985,942 
 2,000,000   Walmart, Inc., 5.250%, 9/1/35   2,909,858 
         4,895,800 
           
     Exchange Traded Funds-0.94%     
 25,000   iShares® Convertible Bond ETF   2,413,750 
 25,000   iShares® Trust 5-10 Year Investment Grade Corporate Bond ETF   1,544,750 
 25,000   SPDR® Bloomberg Barclays Convertible Securities ETF   2,069,750 
         6,028,250 
           
     Financials-2.76%     
 8,100,000   Berkshire Hathaway, Inc., 3.750%, 8/15/21   8,272,552 
 2,000,000   Citigroup, Inc., 3.875%, 3/26/25   2,232,195 
 1,000,000   Goldman Sachs Group, Inc., 3.500%, 4/1/25   1,112,021 
 5,000,000   Wells Fargo & Co., 2.500%, 3/4/21   5,016,909 
 1,000,000   Wells Fargo & Co., 2.000%, 5/15/25   1,001,836 
         17,635,513 
           
     Health Care-0.79%     
 5,000,000   Johnson & Johnson, 1.300%, 9/1/30   5,019,061 
           
           
     Industrials-0.90%     
 1,000,000   Caterpillar, Inc., 8.250%, 12/15/38   1,810,016 
 1,000,000   General Electric Co., 2.700%, 10/9/22   1,043,045 
 2,000,000   General Electric Co., 6.875%, 1/10/39   2,943,610 
         5,796,671 

 

See Notes to Financial Statements.  

 

Semi-Annual Report | December 31, 2020 11

 

 

Schedule of Investments James Balanced: Golden Rainbow Fund

 

December 31, 2020 (Unaudited) 

 

 

Shares or Principal Amount  Value 
    Information Technology-4.21%    
$2,500,000   Apple, Inc., 2.050%, 9/11/26  $2,672,621 
 2,000,000   Automatic Data Processing, Inc., 1.250%, 9/1/30   1,995,141 
 5,000,000   Intel Corp., 3.300%, 10/1/21   5,110,929 
 5,000,000   Intel Corp., 2.875%, 5/11/24   5,394,566 
 3,700,000   Microsoft Corp., 5.200%, 6/1/39   5,576,819 
 5,000,000   Oracle Corp., 2.500%, 5/15/22   5,133,553 
 1,000,000   PayPal Holdings, Inc., 2.650%, 10/1/26   1,098,924 
         26,982,553 
TOTAL CORPORATE BONDS     
(Cost $74,594,836)   82,328,297 

 

Shares or Principal Amount  Value 
MUNICIPAL BONDS-2.76%    
     Hawaii-1.53%     
 9,000,000   City and County of Honolulu General Obligation Unlimited Bonds, Series B, 5.000%, 11/1/25   9,776,250 
           
     Ohio-1.23%     
 7,450,000   Beavercreek City School District General Obligation Unlimited Bonds, 3.250%, 12/1/36   7,883,516 
           
TOTAL MUNICIPAL BONDS     
(Cost $16,789,001)   17,659,766 

 

Shares or Principal Amount  Value 
U.S. GOVERNMENT AGENCIES-5.78%    
     Federal Farm Credit Banks Funding Corp.-1.32%     
 2,000,000   0.670%, 8/4/25  2,000,141 
 5,725,000   2.750%, 11/6/26   6,426,811 
         8,426,952 
           
     Federal Home Loan Banks-3.28%     
 10,000,000   2.875%, 6/13/25   11,103,989 
 2,000,000   0.580%, 9/11/25   1,992,842 
 2,500,000   0.850%, 10/15/27   2,486,138 
 5,000,000   4.080%, 5/25/33   5,407,948 
         20,990,917 
           
     Tennessee Valley Authority-1.18%     
 5,000,000   5.250%, 9/15/39   7,501,632 
           
TOTAL U.S. GOVERNMENT AGENCIES     
(Cost $33,901,678)   36,919,501 

 

Shares or Principal Amount  Value 
MORTGAGE BACKED SECURITIES-3.85%     
     Fannie Mae Pool-3.60%     
 5,951,201   3.500%, 9/1/33  6,434,624 
 15,646,739   2.500%, 1/1/57   16,606,710 
         23,041,334 
     Fannie Mae REMICS-0.25%     
 1,529,558   3.500%, 5/25/47   1,571,068 
           
TOTAL MORTGAGE BACKED SECURITIES     
(Cost $22,647,407)   24,612,402 

  

See Notes to Financial Statements.

 

12 www.jamesinvestment.com

 

 

James Balanced: Golden Rainbow Fund Schedule of Investments

 

  December 31, 2020 (Unaudited)

 

Shares or Principal Amount  Value 
U.S. TREASURY BONDS & NOTES-20.18%     
     U.S. Treasury Bonds-10.86%     
$24,000,000   2.000%, 8/15/25  $25,845,937 
 28,000,000   2.750%, 2/15/28   32,095,000 
 10,000,000   2.625%, 2/15/29   11,473,828 
         69,414,765 
           
     U.S. Treasury Notes-6.30%     
 40,000,000   2.375%, 4/15/21   40,256,250 
           
           
     United States Treasury Inflation Indexed Bonds-3.02%     
 18,344,900   0.625%, 4/15/23   19,314,151 
           
TOTAL U.S. TREASURY BONDS & NOTES    
(Cost $120,325,010)   128,985,166 

 

Shares or Principal Amount  Value 
FOREIGN BONDS-1.19%    
     Singapore Government Bond-1.19%     
SGD 10,000,000    2.250%, 6/1/21  7,622,579 
           
TOTAL FOREIGN BONDS     
(Cost $7,421,474)   7,622,579 

 

Shares or Principal Amount  Value 
SHORT TERM INVESTMENTS-0.63%     
     Mutual Fund-0.63%     
4,039,394    First American Treasury Obligations Fund, Class X, 7-Day Yield 0.040%   4,039,394 
           
TOTAL SHORT TERM INVESTMENTS     
(Cost $4,039,394)   4,039,394 
           
TOTAL INVESTMENT SECURITIES-99.89%     
(Cost $544,838,682)   638,608,063 
OTHER ASSETS IN EXCESS OF LIABILITIES-0.11%   723,727 
NET ASSETS-100.00%  $639,331,790 

    

For Fund compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. Those definitions may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease. Industries are shown as a percentage of net assets.

 

*Non-income producing security.

 

SGD - Singapore Dollar

 

See Notes to Financial Statements. 

 

Semi-Annual Report | December 31, 2020 13

 

 

Schedule of Investments James Small Cap Fund

 

December 31, 2020 (Unaudited)  

 

Shares      Value 
COMMON STOCKS-97.38%    
    Consumer Discretionary-13.69%    
 3,270   Deckers Outdoor Corp.*  $937,771 
 3,045   Helen of Troy, Ltd.*   676,569 
 5,300   LGI Homes, Inc.*   561,005 
 23,300   MDC Holdings, Inc.   1,132,380 
 3,800   Meritage Homes Corp.*   314,716 
 11,480   Patrick Industries, Inc.   784,658 
 10,200   PetMed Express, Inc.   327,012 
         4,734,111 
           
     Consumer Staples-3.04%     
 10,975   Ingles Markets, Inc., Class A   468,193 
 13,770   Village Super Market, Inc., Class A   303,766 
 5,855   Weis Markets, Inc.   279,928 
         1,051,887 
           
     Energy-2.43%     
 35,000   Frontline, Ltd.   217,700 
 7,600   HollyFrontier Corp.   196,460 
 52,365   WPX Energy, Inc.*   426,775 
         840,935 
           
     Financials-26.12%     
 18,080   American Equity Investment Life Holding Co.   500,093 
 3,870   American Financial Group, Inc.   339,089 
 16,000   Assured Guaranty, Ltd.   503,840 
 47,725   Chimera Investment Corp., REIT   489,181 
 13,520   Evercore, Inc., Class A   1,482,333 
 77,700   First BanCorp   716,394 
 36,000   Genworth Financial, Inc., Class A*   136,080 
 6,300   Green Dot Corp., Class A*   351,540 
 4,700   Houlihan Lokey, Inc.   315,981 
 55,410   Ladder Capital Corp., REIT   541,910 
 7,300   LPL Financial Holdings, Inc.   760,806 
 13,975   Piper Sandler Cos.   1,410,078 
 31,700   Radian Group, Inc.   641,925 
 40,575   Sixth Street Specialty Lending, Inc.   841,931 
         9,031,181 
           
     Health Care-7.69%     
 57,000   Innoviva, Inc.*   706,230 
 8,690   Integer Holdings Corp.*   705,541 
 11,650   National HealthCare Corp.   773,677 
 24,240   Tivity Health, Inc.*   474,862 
         2,660,310 
           
     Industrials-18.97%     
 2,300   AGCO Corp.   237,107 
 24,030   Boise Cascade Co.   1,148,634 
 18,955   Encore Wire Corp.   1,148,104 
 4,570   FTI Consulting, Inc.*   510,560 
 5,980   Generac Holdings, Inc.*   1,359,912 
 24,198   Hillenbrand, Inc.   963,080 

 

See Notes to Financial Statements.    
14   www.jamesinvestment.com

 

 

James Small Cap Fund Schedule of Investments

 

  December 31, 2020 (Unaudited)

 

Shares      Value 
     Industrials (continued)     
 12,200   MasTec, Inc.*  $831,796 
 4,435   TriNet Group, Inc.*   357,461 
         6,556,654 
           
     Information Technology-17.79%     
 5,350   Avnet, Inc.   187,838 
 4,465   CMC Materials, Inc.   675,554 
 5,035   Concentrix Corp.*   496,954 
 5,200   EVERTEC, Inc.   204,464 
 6,990   Insight Enterprises, Inc.*   531,869 
 20,245   Nova Measuring Instruments, Ltd.*   1,429,297 
 13,500   PC Connection, Inc.   638,415 
 21,500   Super Micro Computer, Inc.*   680,690 
 10,360   Sykes Enterprises, Inc.*   390,261 
 2,535   SYNNEX Corp.   206,450 
 9,700   TTEC Holdings, Inc.   707,421 
         6,149,213 
           
     Materials-3.52%     
 16,000   Cleveland-Cliffs, Inc.   232,960 
 2,686   Innospec, Inc.   243,701 
 13,120   Schnitzer Steel Industries, Inc., Class A   418,659 
 7,130   Sealed Air Corp.   326,483 
         1,221,803 
           
     Real Estate-2.46%     
 32,500   Lexington Realty Trust, REIT   345,150 
 33,280   Xenia Hotels & Resorts, Inc., REIT   505,856 
         851,006 
           
     Utilities-1.67%     
 3,385   IDACORP, Inc.   325,062 
 5,935   Portland General Electric Co.   253,840 
         578,902 
TOTAL COMMON STOCKS     
(Cost $25,848,929)   33,676,002 

 

Shares       Value 
SHORT TERM INVESTMENTS-2.57%     
     Mutual Fund-2.57%     
890,309    First American Treasury Obligations Fund, Class X, 7-Day Yield 0.040%   890,309 
      
TOTAL SHORT TERM INVESTMENTS     
(Cost $890,309)   890,309 
      
TOTAL INVESTMENT SECURITIES-99.95%     
(Cost $26,739,238)   34,566,311 
OTHER ASSETS IN EXCESS OF LIABILITIES-0.05%   15,596 
NET ASSETS-100.00%  $34,581,907 

 

See Notes to Financial Statements.  

 

Semi-Annual Report | December 31, 2020 15

 

 

Schedule of Investments James Small Cap Fund

 

December 31, 2020 (Unaudited)  

 

For Fund compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. Those definitions may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease. Industries are shown as a percentage of net assets.

 

*Non-income producing security.

 

See Notes to Financial Statements.

 

16www.jamesinvestment.com

 

 

James Micro Cap Fund Schedule of Investments

 

  December 31, 2020 (Unaudited)

 

Shares      Value 
COMMON STOCKS-97.96%    
    Communication Services-1.62%    
 21,500   Gray Television, Inc.*  $384,635 
         384,635 
           
     Consumer Discretionary-18.24%     
 16,230   Century Communities, Inc.*   710,549 
 30,210   Haverty Furniture Cos., Inc.   835,911 
 20,820   M/I Homes, Inc.*   922,118 
 20,326   Patrick Industries, Inc.   1,389,282 
 10,000   PetMed Express, Inc.   320,600 
 8,856   Sportsman's Warehouse Holdings, Inc.*   155,423 
         4,333,883 
           
     Consumer Staples-7.42%     
 19,230   Ingles Markets, Inc., Class A   820,352 
 6,557   John B Sanfilippo & Son, Inc.   517,085 
 7,364   Rite Aid Corp.*   116,572 
 14,030   Village Super Market, Inc., Class A   309,502 
         1,763,511 
           
     Energy-0.79%     
 7,145   NACCO Industries, Inc., Class A   187,913 
         187,913 
           
     Financials-21.34%     
 57,215   Ares Commercial Real Estate Corp., REIT   681,431 
 26,746   Donnelley Financial Solutions, Inc.*   453,880 
 48,590   Enova International, Inc.*   1,203,574 
 9,320   Federal Agricultural Mortgage Corp., Class C   692,010 
 17,136   Merchants Bancorp   473,468 
 25,456   OFG Bancorp   471,954 
 10,830   Piper Sandler Cos.   1,092,747 
         5,069,064 
           
     Health Care-11.61%     
 24,730   Innoviva, Inc.*   306,405 
 5,270   Integer Holdings Corp.*   427,871 
 48,010   Kamada, Ltd.*   311,105 
 33,200   Lantheus Holdings, Inc.*   447,868 
 11,475   PetIQ, Inc.*   441,214 
 6,030   Semler Scientific, Inc.*   566,820 
 19,495   Vanda Pharmaceuticals, Inc.*   256,164 
         2,757,447 
           
     Industrials-15.66%     
 102,175   ACCO Brands Corp.   863,379 
 13,035   ArcBest Corp.   556,203 
 5,000   Boise Cascade Co.   239,000 
 27,900   CAI International, Inc.   871,596 
 3,928   Northwest Pipe Co.*   111,162 
 21,680   Vectrus, Inc.*   1,077,930 
         3,719,270 

 

See Notes to Financial Statements.  

 

Semi-Annual Report | December 31, 2020 17

 

 

Schedule of Investments James Micro Cap Fund

 

December 31, 2020 (Unaudited)  

 

Shares      Value 
     Information Technology-16.34%     
 2,300   ePlus, Inc.*  $202,285 
 6,240   Insight Enterprises, Inc.*   474,801 
 7,368   International Money Express, Inc.*   114,351 
 20,435   Nova Measuring Instruments, Ltd.*   1,442,711 
 29,692   PC Connection, Inc.   1,404,135 
 6,500   Sykes Enterprises, Inc.*   244,855 
         3,883,138 
           
     Materials-4.94%     
 4,000   Innospec, Inc.   362,920 
 18,045   Schnitzer Steel Industries, Inc., Class A   575,816 
 2,070   United States Lime & Minerals, Inc.   235,980 
         1,174,716 
TOTAL COMMON STOCKS    
(Cost $16,725,364)   23,273,577 

 

Shares       Value 
SHORT TERM INVESTMENTS-2.06%     
     Mutual Fund-2.06%     
489,987    First American Treasury Obligations Fund, Class X, 7-Day Yield 0.040%   489,987 
      
TOTAL SHORT TERM INVESTMENTS     
(Cost $489,987)   489,987 
      
TOTAL INVESTMENT SECURITIES-100.02%     
(Cost $17,215,351)   23,763,564 
OTHER LIABILITIES IN EXCESS OF OTHER ASSETS-(0.02)%   (3,877)
NET ASSETS-100.00%  $23,759,687 

 

For Fund compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. Those definitions may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease. Industries are shown as a percentage of net assets.

 

*Non-income producing security.

 

See Notes to Financial Statements.

 

18www.jamesinvestment.com

 

 

James Aggressive Allocation Fund Schedule of Investments

 

  December 31, 2020 (Unaudited)

 

Shares or Principal Amount  Value 
COMMON STOCKS-72.23%    
    Communication Services-5.50%    
 200   Alphabet, Inc., Class A*  $350,528 
 6,160   Comcast Corp., Class A   322,784 
 3,825   NetEase, Inc., ADR   366,320 
 3,875   Verizon Communications, Inc.   227,656 
         1,267,288 
           
     Consumer Discretionary-7.51%     
 100   Amazon.com, Inc.*   325,693 
 2,190   Best Buy Co., Inc.   218,540 
 90   Chipotle Mexican Grill, Inc.*   124,804 
 1,450   Home Depot, Inc.   385,149 
 1,000   LGI Homes, Inc.*   105,850 
 970   McDonald's Corp.   208,143 
 1,355   Target Corp.   239,198 
 885   Tractor Supply Co.   124,413 
         1,731,790 
           
     Consumer Staples-3.82%     
 6,950   Kroger Co.   220,732 
 1,690   Procter & Gamble Co.   235,147 
 2,950   Walmart, Inc.   425,243 
         881,122 
           
     Energy-3.17%     
 2,350   Chevron Corp.   198,457 
 5,550   EOG Resources, Inc.   276,778 
 3,600   Renewable Energy Group, Inc.*   254,952 
         730,187 
           
     Exchange Traded Funds-3.06%     
 11,255   iShares® Gold Trust*   204,053 
 5,600   iShares® MSCI Emerging Markets ETF   289,352 
 550   iShares® Russell 2000® ETF   107,833 
 800   iShares® Russell 2000 Value ETF   105,400 
         706,638 
           
     Financials-7.99%     
 475   BlackRock, Inc.   342,731 
 300   FactSet Research Systems, Inc.   99,750 
 12,885   Fifth Third Bancorp   355,239 
 1,150   Goldman Sachs Group, Inc.   303,266 
 2,000   JPMorgan Chase & Co.   254,140 
 2,430   LPL Financial Holdings, Inc.   253,255 
 2,355   Progressive Corp.   232,862 
         1,841,243 
           
     Health Care-9.40%     
 3,015   Abbott Laboratories   330,112 
 998   Anthem, Inc.   320,448 
 6,000   ARK Genomic Revolution ETF   559,560 
 1,295   Johnson & Johnson   203,807 
 3,125   Medtronic PLC   366,063 

 

See Notes to Financial Statements.  

 

Semi-Annual Report | December 31, 2020 19

 

 

Schedule of Investments James Aggressive Allocation Fund

 

December 31, 2020 (Unaudited)  

 

Shares or Principal Amount  Value 
     Health Care (continued)     
 3,220   Pfizer, Inc.  $118,528 
 399   Viatris, Inc.*   7,477 
 1,595   Zoetis, Inc.   263,973 
         2,169,968 
           
     Industrials-9.58%     
 3,475   AGCO Corp.   358,238 
 1,935   Caterpillar, Inc.   352,209 
 1,295   Deere & Co.   348,420 
 1,240   FedEx Corp.   321,929 
 495   Generac Holdings, Inc.*   112,568 
 575   Lockheed Martin Corp.   204,114 
 3,310   MasTec, Inc.*   225,676 
 1,220   United Rentals, Inc.*   282,930 
         2,206,084 
           
     Information Technology-18.71%     
 720   Adobe, Inc.*   360,086 
 5,725   Apple, Inc.   759,650 
 777   ASML Holding NV   378,958 
 1,900   Cadence Design Systems, Inc.*   259,217 
 800   Lam Research Corp.   377,816 
 3,650   Logitech International SA   354,744 
 820   Mastercard, Inc., Class A   292,691 
 2,090   Microsoft Corp.   464,858 
 600   NVIDIA Corp.   313,320 
 1,600   PayPal Holdings, Inc.*   374,720 
 685   ServiceNow, Inc.*   377,045 
         4,313,105 
           
     Materials-1.65%     
 735   Avery Dennison Corp.   114,006 
 4,475   Newmont Mining Corp.   268,008 
         382,014 
           
     Real Estate-0.84%     
 270   Equinix, Inc., REIT   192,829 
         192,829 
           
     Utilities-1.00%     
 6,155   NRG Energy, Inc.   231,120 
         231,120 
TOTAL COMMON STOCKS 
(Cost $13,789,671)   16,653,388 

 

Shares or Principal Amount  Value 
CORPORATE BONDS-10.52%     
     Consumer Discretionary-2.35%     
$500,000   Starbucks Corp., 2.550%, 11/15/30   540,569 
           
           
     Exchange Traded Funds-4.14%     
 4,894   iShares® Convertible Bond ETF   472,516 

 

See Notes to Financial Statements.  

 

20 www.jamesinvestment.com

 

 

James Aggressive Allocation Fund Schedule of Investments

 

  December 31, 2020 (Unaudited)

 

Shares or Principal Amount  Value 
     Exchange Traded Funds (continued)     
 5,821   SPDR® Bloomberg Barclays Convertible Securities ETF  $481,921 
         954,437 
           
     Financials-1.64%     
 250,000   Citigroup, Inc., 3.875%, 3/26/25   279,024 
 100,000   Wells Fargo & Co., 2.000%, 5/15/25   100,184 
         379,208 
           
     Health Care-1.08%     
 250,000   AstraZeneca PLC, 0.700%, 4/8/26   248,620 
           
     Industrials-0.23%     
 50,000   General Electric Co., 2.700%, 10/9/22   52,152 
           
     Information Technology-1.08%     
 250,000   Automatic Data Processing, Inc., 1.250%, 9/1/30   249,392 
           
TOTAL CORPORATE BONDS     
(Cost $2,132,439)   2,424,378 

 

Shares or Principal Amount Value 
U.S. GOVERNMENT AGENCIES-4.34%     
       Federal Farm Credit Banks Funding Corp.-2.17%     
  500,000    0.670%, 8/4/25   500,036 
             
       Federal National Mortgage Association-2.17%     
  500,000    0.560%, 10/22/25   500,208 
             
TOTAL U.S. GOVERNMENT AGENCIES     
(Cost $1,000,000)   1,000,244 

 

Shares or Principal Amount  Value 
U.S. TREASURY BONDS & NOTES-8.87%     
     U.S. Treasury Bonds-4.98%     
 1,000,000   2.625%, 2/15/29   1,147,383 
           
     U.S. Treasury Notes-2.24%     
 500,000   1.125%, 2/28/25   517,558 
           
     United States Treasury Inflation Indexed Bonds-1.65%     
 375,469   0.625%, 7/15/21   380,341 
           
TOTAL U.S. TREASURY BONDS & NOTES     
(Cost $1,932,853)   2,045,282 

  

See Notes to Financial Statements. 

 

Semi-Annual Report | December 31, 2020 21

 

 

Schedule of Investments James Aggressive Allocation Fund

 

December 31, 2020 (Unaudited)  

 

Shares or Principal Amount  Value 
SHORT TERM INVESTMENTS-3.98%     
     Mutual Fund-3.98%     
917,821    First American Treasury Obligations Fund, Class X, 7-Day Yield 0.040%  $917,821 
      
TOTAL SHORT TERM INVESTMENTS     
(Cost $917,821)   917,821 
      
TOTAL INVESTMENT SECURITIES-99.94%     
(Cost $19,772,784)   23,041,113 
OTHER ASSETS IN EXCESS OF LIABILITIES-0.06%   13,208 
NET ASSETS-100.00%  $23,054,321 

 

For Fund compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. Those definitions may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease. Industries are shown as a percentage of net assets.

 

*Non-income producing security.

 

See Notes to Financial Statements. 

 

22www.jamesinvestment.com

 

 

James Advantage Funds Statements of Assets and Liabilities

 

  December 31, 2020 (Unaudited)

 

   James Balanced: Golden Rainbow Fund   James Small Cap Fund   James Micro Cap Fund   James Aggressive Allocation Fund 
ASSETS:                    
Investment securities:                    
At cost  $544,838,682   $26,739,238   $17,215,351   $19,772,784 
At value  $638,608,063   $34,566,311   $23,763,564   $23,041,113 
Dividends and interest receivable   1,836,506    59,793    25,365    32,164 
Receivable for capital shares sold   8,471    1,040         
Other assets   52,664             
Total Assets   640,505,704    34,627,144    23,788,929    23,073,277 
                     
LIABILITIES:                    
Payable for capital shares redeemed   494,486    2,393         
Accrued expenses:                    
Management fees   400,863    35,486    29,222    18,932 
12b-1 distribution and service fees   106,398    7,246         
Trustee fees   3,187    112    20    24 
Other payables   168,980             
Total Liabilities   1,173,914    45,237    29,242    18,956 
Net Assets  $639,331,790   $34,581,907   $23,759,687   $23,054,321 
                     
NET ASSETS CONSIST OF:                    
                     
Paid-in capital  $526,559,628   $33,274,142   $19,511,054   $22,186,716 
Total Distributable Earnings   112,772,162    1,307,765    4,248,633    867,605 
Net Assets  $639,331,790   $34,581,907   $23,759,687   $23,054,321 
                     
PRICING OF RETAIL CLASS SHARES:                    
                     
Net assets  $497,643,568    N/A    N/A    N/A 
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par)   23,262,815    N/A    N/A    N/A 
Net assets value, offering price and redemption price per share  $21.39    N/A    N/A    N/A 
                     
PRICING OF INSTITUTIONAL CLASS SHARES:                    
                     
Net assets  $141,688,222    N/A    N/A    N/A 
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par)   6,711,811    N/A    N/A    N/A 
Net assets value, offering price and redemption price per share  $21.11    N/A    N/A    N/A 
                     
PRICING OF SHARES                    
                     
Net assets   N/A   $34,581,907   $23,759,687   $23,054,321 
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par)   N/A    1,429,665    1,507,848    2,230,340 
Net assets value, offering price and redemption price per share   N/A   $24.19   $15.76   $10.34 

 

See Notes to Financial Statements.

 

Semi-Annual Report | December 31, 2020 23

 

 

Statements of Operations James Advantage Funds

 

For the Six Months Ended December 31, 2020 (Unaudited)  

 

   James Balanced: Golden Rainbow Fund   James Small Cap Fund   James Micro Cap Fund   James Aggressive Allocation Fund 
INVESTMENT INCOME:                    
Dividends (Net of withholding taxes of $13,850, $777, $416 and $618, respectively)  $2,968,044   $350,893   $231,622   $144,974 
Interest   4,117,519            46,437 
Total Investment Income   7,085,563    350,893    231,622    191,411 
EXPENSES:                    
Management fees   2,480,536    188,905    154,305    107,882 
12b-1 distribution and service fees - Retail Class   653,702             
12b-1 distribution and service fees       38,602         
Interest expense   16             
Administration fee   233,235             
Transfer agent fee   73,769             
Custodian fees   27,731             
Professional fees   92,697             
Trustee fees   98,342    4,104    2,727    2,959 
Registration fees   21,950             
Shareholder report printing and mailing   35,529             
Other expenses   46,855             
Total Expenses   3,764,362    231,611    157,032    110,841 
Net Investment Income   3,321,201    119,282    74,590    80,570 
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:                    
Net realized gain/(loss) from:                    
Investments   27,638,399    426,777    77,565    471,312 
Foreign currency transactions   1,657            (13)
Total realized gain/(loss)   27,640,056    426,777    77,565    471,299 
Net change in unrealized appreciation on investments   16,127,667    7,534,949    4,541,222    2,118,532 
Net change in unrealized appreciation on foreign currency translation   219            24 
Total change in unrealized appreciation   16,127,886    7,534,949    4,541,222    2,118,556 
Net Realized and Unrealized Gain on Investments   43,767,942    7,961,726    4,618,787    2,589,855 
Net Increase in Net Assets Resulting from Operations  $47,089,143   $8,081,008   $4,693,377   $2,670,425 

 

See Notes to Financial Statements.

 

24www.jamesinvestment.com

 

 

James Balanced: Golden Rainbow Fund Statements of Changes in Net Assets

 

 

   For the Six Months Ended
December 31, 2020 (Unaudited)
   For the Year Ended June 30, 2020 
           
FROM OPERATIONS:          
           
Net investment income  $3,321,201   $11,393,186 
Net realized gain   27,640,056    107,085 
Net change in unrealized appreciation/(depreciation)   16,127,886    (17,921,840)
Net increase/(decrease) in net assets resulting from operations   47,089,143    (6,421,569)
           
DISTRIBUTIONS TO SHAREHOLDERS:          
           
Retail Class Shares:          
From distributable earnings   (3,139,391)   (11,438,111)
Institutional Class Shares:          
From distributable earnings   (1,121,627)   (4,402,203)
Decrease in net assets from distributions to shareholders   (4,261,018)   (15,840,314)
           
CAPITAL SHARE TRANSACTIONS:          
           
Retail Class Shares:          
Proceeds from shares sold   5,799,146    27,111,849 
Net asset value of shares issued in reinvestment of distributions to shareholders   3,060,963    11,140,768 
Payments for shares redeemed   (78,392,112)   (258,653,190)
Net Decrease in net assets from Retail Class capital share transactions   (69,532,003)   (220,400,573)
           
Institutional Class Shares:          
Proceeds from shares sold   3,855,652    20,785,892 
Net asset value of shares issued in reinvestment of distributions to shareholders   1,037,342    3,792,084 
Payments for shares redeemed   (44,344,987)   (152,450,448)
Net Decrease in net assets from Institutional Class capital share transactions   (39,451,993)   (127,872,472)
Total Decrease in Net Assets   (66,155,871)   (370,534,928)
           
NET ASSETS:          
           
Beginning of period   705,487,661    1,076,022,589 
End of period  $639,331,790   $705,487,661 

 

See Notes to Financial Statements.

 

Semi-Annual Report | December 31, 2020 25

 

 

Statements of Changes in Net Assets James Balanced: Golden Rainbow Fund

 

 

   For the Six Months Ended
December 31, 2020 (Unaudited)
   For the Year Ended June 30, 2020 
           
SUMMARY OF CAPITAL SHARE ACTIVITY:          
           
Retail Class Shares:          
Shares sold   278,592    1,306,726 
Shares issued in reinvestment of distributions to shareholders   145,706    540,113 
Shares redeemed   (3,764,270)   (12,537,191)
Net Decrease in shares outstanding   (3,339,972)   (10,690,352)
Shares outstanding, beginning of year   26,602,787    37,293,139 
Shares outstanding, end of year   23,262,815    26,602,787 
           
Institutional Class Shares:          
Shares sold   187,863    1,024,302 
Shares issued in reinvestment of distributions to shareholders   50,064    186,405 
Shares redeemed   (2,161,466)   (7,468,833)
Net Decrease in shares outstanding   (1,923,539)   (6,258,126)
Shares outstanding, beginning of year   8,635,350    14,893,476 
Shares outstanding, end of year   6,711,811    8,635,350 

 

See Notes to Financial Statements.

 

26www.jamesinvestment.com

 

 

James Small Cap Fund Statements of Changes in Net Assets

 

 

   For the Six Months Ended
December 31, 2020 (Unaudited)
   For the Year Ended June 30, 2020 
           
FROM OPERATIONS:          
           
Net investment income  $119,282   $167,785 
Net realized gain/(loss)   426,777    (4,498,063)
Net change in unrealized appreciation/(depreciation)   7,534,949    (3,226,659)
Net increase/(decrease) in net assets resulting from operations   8,081,008    (7,556,937)
           
DISTRIBUTIONS TO SHAREHOLDERS:          
           
From distributable earnings   (177,673)    
Decrease in net assets from distributions to shareholders   (177,673)    
           
CAPITAL SHARE TRANSACTIONS:          
           
Proceeds from shares sold   567,166    2,570,677 
Net asset value of shares issued in reinvestment of distributions to shareholders   176,005     
Payments for shares redeemed   (3,070,583)   (8,273,579)
Net Decrease in net assets from capital share transactions   (2,327,412)   (5,702,902)
Total Increase/(Decrease) in Net Assets   5,575,923    (13,259,839)
           
NET ASSETS:          
           
Beginning of period   29,005,984    42,265,823 
End of period  $34,581,907   $29,005,984 
           
SUMMARY OF CAPITAL SHARE ACTIVITY:          
           
Shares sold   26,552    119,537 
Shares issued in reinvestment of distributions to shareholders   7,349     
Shares redeemed   (147,356)   (396,690)
Net Decrease in shares outstanding   (113,455)   (277,153)
Shares outstanding, beginning of year   1,543,120    1,820,273 
Shares outstanding, end of year   1,429,665    1,543,120 

 

See Notes to Financial Statements.

 

Semi-Annual Report | December 31, 2020 27

 

 

Statements of Changes in Net Assets James Micro Cap Fund

 

 

   For the Six Months Ended
December 31, 2020 (Unaudited)
   For the Year Ended June 30, 2020 
         
FROM OPERATIONS:          
           
Net investment income  $74,590   $96,482 
Net change in unrealized appreciation/(depreciation)   4,541,222    (2,592,497)
Net increase/(decrease) in net assets resulting from operations   4,693,377    (4,625,148)
           
DISTRIBUTIONS TO SHAREHOLDERS:          
           
From distributable earnings   (125,693)   (880,621)
Decrease in net assets from distributions to shareholders   (125,693)   (880,621)
           
CAPITAL SHARE TRANSACTIONS:          
           
Proceeds from shares sold   326,184    1,113,550 
Net asset value of shares issued in reinvestment of distributions to shareholders   125,625    877,987 
Payments for shares redeemed, net of redemption fee   (840,270)   (3,505,536)
Net Decrease in net assets from capital share transactions   (388,461)   (1,513,999)
Total Increase/(Decrease) in Net Assets   4,179,223    (7,019,768)
           
NET ASSETS:          
           
Beginning of period   19,580,464    26,600,232 
End of period  $23,759,687   $19,580,464 
           
SUMMARY OF CAPITAL SHARE ACTIVITY:          
           
Shares sold   22,599    76,686 
Shares issued in reinvestment of distributions to shareholders   8,043    53,384 
Shares redeemed   (61,383)   (262,319)
Net Decrease in shares outstanding   (30,741)   (132,249)
Shares outstanding, beginning of year   1,538,589    1,670,838 
Shares outstanding, end of year   1,507,848    1,538,589 

 

See Notes to Financial Statements.

 

28www.jamesinvestment.com

 

 

James Aggressive Allocation Fund Statements of Changes in Net Assets

 

 

   For the Six Months Ended
December 31, 2020 (Unaudited)
   For the Year Ended June 30, 2020 
           
FROM OPERATIONS:          
           
Net investment income  $80,570   $263,686 
Net realized gain/(loss)   471,299    (2,408,560)
Net increase/(decrease) in net assets resulting from operations   2,670,425    (1,948,371)
           
DISTRIBUTIONS TO SHAREHOLDERS:          
           
From distributable earnings   (195,964)   (245,700)
Decrease in net assets from distributions to shareholders   (195,964)   (245,700)
           
CAPITAL SHARE TRANSACTIONS:          
           
Proceeds from shares sold   131,855    2,170,346 
Net asset value of shares issued in reinvestment of distributions to shareholders   195,716    244,861 
Payments for shares redeemed   (542,729)   (2,361,900)
Net Increase/(Decrease) in net assets from capital share transactions   (215,158)   53,307 
Total Increase/(Decrease) in Net Assets   2,259,303    (2,140,764)
           
NET ASSETS:          
           
Beginning of period   20,795,018    22,935,782 
End of period  $23,054,321   $20,795,018 
           
SUMMARY OF CAPITAL SHARE ACTIVITY:          
           
Shares sold   13,376    209,430 
Shares issued in reinvestment of distributions to shareholders   19,057    23,100 
Shares redeemed   (55,147)   (228,978)
Net Increase/(Decrease) in shares outstanding   (22,714)   3,552 
Shares outstanding, beginning of year   2,253,054    2,249,502 
Shares outstanding, end of year   2,230,340    2,253,054 

 

See Notes to Financial Statements.

 

Semi-Annual Report | December 31, 2020 29

 

 

Financial Highlights James Balanced: Golden Rainbow Fund – Retail Class

 

For a share outstanding throughout the years or period indicated.

 

   For the
Six Months
Ended
December 31,
2020
(Unaudited)
   For the
Year Ended
June 30, 2020
   For the
Year Ended
June 30, 2019
   For the
Year Ended
June 30, 2018
   For the
Year Ended
June 30, 2017
   For the
Year Ended
June 30, 2016
 
Net asset value - beginning of year  $20.08   $20.69   $23.32   $24.70   $24.14   $24.96 
Income/(Loss) from investment operations:                              
Net investment income(a)   0.10    0.26    0.25    0.26    0.25    0.25 
Net realized and unrealized gain/(loss)   1.34    (0.50)   (0.64)   0.24    0.68    (0.41)
Total from investment operations   1.44    (0.24)   (0.39)   0.50    0.93    (0.16)
                               
Less distributions:                              
From net investment income   (0.10)   (0.22)   (0.29)   (0.27)   (0.28)   (0.23)
From net realized gain on investments   (0.03)   (0.15)   (1.95)   (1.61)   (0.09)   (0.43)
Total distributions   (0.13)   (0.37)   (2.24)   (1.88)   (0.37)   (0.66)
Paid-in capital from redemption fees                   0.00(b)     
Net asset value at end of year  $21.39   $20.08   $20.69   $23.32   $24.70   $24.14 
                               
Total return   7.19%(c)  (1.18)%   (1.24)%   1.87%   3.92%   (0.64)%
                              
Net assets, end of year (in thousands)  $497,644   $534,314   $771,733   $1,514,451   $2,163,786   $2,892,809 
                               
Ratios/Supplemental Data:                              
Ratio of net expenses to average net assets   1.17%(d)  1.13%   1.06%   0.99%   0.96%   0.96%
Ratio of net investment income to average net  assets   0.92%(d)  1.26%   1.14%   1.05%   1.02%   1.03%
Portfolio turnover rate   37%(c)  36%   71%   75%   46%   46%

 

(a)Calculated using the average shares method.

(b)Amount rounds to less than $0.005 per share.

(c)Not Annualized.

(d)Annualized.

 

See Notes to Financial Statements.

 

30www.jamesinvestment.com

 

 

James Balanced: Golden Rainbow Fund – Institutional Class Financial Highlights

 

For a share outstanding throughout the years or period indicated.

 

   For the
Six Months
Ended
December 31,
2020
(Unaudited)
   For the
Year Ended
June 30, 2020
   For the
Year Ended
June 30, 2019
   For the
Year Ended
June 30, 2018
   For the
Year Ended
June 30, 2017
   For the
Year Ended
June 30, 2016
 
                               
Net asset value - beginning of year  $19.82   $20.43   $23.06   $24.44   $23.89   $24.72 
Income/(Loss) from investment operations:                              
Net investment income(a)   0.12    0.31    0.30    0.31    0.31    0.31 
Net realized and unrealized gain/(loss)   1.33    (0.50)   (0.63)   0.25    0.68    (0.42)
Total from investment operations   1.45    (0.19)   (0.33)   0.56    0.99    (0.11)
                               
Less distributions:                              
From net investment income   (0.13)   (0.27)   (0.35)   (0.33)   (0.35)   (0.29)
From net realized gain on investments   (0.03)   (0.15)   (1.95)   (1.61)   (0.09)   (0.43)
Total distributions   (0.16)   (0.42)   (2.30)   (1.94)   (0.44)   (0.72)
Paid-in capital from redemption fees                   0.00(b)     
Net asset value at end of year  $21.11   $19.82   $20.43   $23.06   $24.44   $23.89 
                               
Total return   7.32%(c)  (0.93)%   (0.99)%   2.16%   4.19%   (0.43)%
                               
Net assets, end of year (in thousands)  $141,688   $171,173   $304,290   $836,234   $1,220,095   $1,512,751 
                               
Ratios/Supplemental Data:                              
Ratio of net expenses to average net assets   0.92%(d)  0.88%   0.80%   0.74%   0.71%   0.71%
Ratio of net investment income to average net assets   1.17%(d)  1.52%   1.38%   1.30%   1.27%   1.28%
Portfolio turnover rate   37%(c)  36%   71%   75%   46%   46%

 

(a)Calculated using the average shares method.

(b)Amount rounds to less than $0.005 per share.

(c)Not Annualized.

(d)Annualized.

 

See Notes to Financial Statements.

 

Semi-Annual Report | December 31, 2020 31

 

 

Financial Highlights James Small Cap Fund

 

For a share outstanding throughout the years or period indicated.

 

   For the
Six Months
Ended
December 31,
2020
(Unaudited)
   For the
Year Ended
June 30, 2020
   For the
Year Ended
June 30, 2019
   For the
Year Ended
June 30, 2018
   For the
Year Ended
June 30, 2017
   For the
Year Ended
June 30, 2016
 
                         
Net asset value - beginning of year  $18.80   $23.22   $30.13   $33.96   $30.64   $33.47 
Income/(Loss) from investment operations:                              
Net investment income/(loss)(a)   0.08    0.10    (0.01)   (0.10)   0.21    0.17 
Net realized and unrealized gain/(loss)   5.44    (4.52)   (4.76)   3.82    3.28    (1.64)
Total from investment operations   5.52    (4.42)   (4.77)   3.72    3.49    (1.47)
                               
Less distributions:                              
From net investment income   (0.13)           (0.19)   (0.17)   (0.12)
From net realized gain on investments           (2.14)   (7.36)       (1.24)
Total distributions   (0.13)       (2.14)   (7.55)   (0.17)   (1.36)
Net asset value at end of year  $24.19   $18.80   $23.22   $30.13   $33.96   $30.64 
                               
Total return   29.34%(b)  (19.04)%   (15.63)%   11.41%   11.36%   (4.62)%
                               
Net assets, end of year (in thousands)  $34,582   $29,006   $42,266   $58,267   $67,603   $84,226 
                               
Ratios/Supplemental Data:                              
Ratio of net expenses to average net assets   1.50%(c)  1.50%   1.50%   1.50%   1.50%   1.50%
Ratio of net investment income/(loss) to average net assets   0.77%(c)  0.47%   (0.02)%   (0.32)%   0.62%   0.55%
Portfolio turnover rate   26%(b)  35%   75%   124%   129%   57%

 

(a)Calculated using the average shares method.

(b)Not Annualized.

(c)Annualized.

 

See Notes to Financial Statements.

 

32www.jamesinvestment.com

 

 

James Micro Cap Fund Financial Highlights

 

  For a share outstanding throughout the years or period indicated.

 

   For the
Six Months
Ended
December 31,
2020
(Unaudited)
   For the
Year Ended
June 30, 2020
   For the
Year Ended
June 30, 2019
   For the
Year Ended
June 30, 2018
   For the
Year Ended
June 30, 2017
   For the
Year Ended
June 30, 2016
 
                         
Net asset value - beginning of year  $12.73   $15.92   $17.88   $17.27   $15.03   $15.11 
Income/(Loss) from investment operations:                              
Net investment income/(loss)(a)   0.05    0.06    0.01    (0.04)   0.04    (0.04)
Net realized and unrealized gain/(loss)   3.06    (2.70)   (1.06)   1.99    2.20    (0.06)
Total from investment operations   3.11    (2.64)   (1.05)   1.95    2.24    (0.10)
                               
Less distributions:                              
From net investment income   (0.08)   (0.04)       (0.06)       (0.01)
From net realized gain on investments       (0.51)   (0.91)   (1.29)        
Total distributions   (0.08)   (0.55)   (0.91)   (1.35)       (0.01)
Paid-in capital from redemption fees       0.00(b)   0.00(b)   0.01    0.00(b)    0.03 
Net asset value at end of year  $15.76   $12.73   $15.92   $17.88   $17.27   $15.03 
                               
Total return   24.47%(c)  (17.38)%   (5.25)%   11.62%   14.90%   (0.44)%
                               
Net assets, end of year (in thousands)  $23,760   $19,580   $26,600   $28,805   $31,809   $26,515 
                               
Ratios/Supplemental Data:                              
Ratio of net expenses to average net assets   1.50%(d)  1.50%   1.50%   1.50%   1.50%   1.50%
Ratio of net investment income/(loss) to average net assets   0.71%(d)  0.41%   0.05%   (0.22)%   0.23%   (0.24)%
Portfolio turnover rate   17%(c)  35%   65%   37%   97%   44%

 

(a)Calculated using the average shares method.

(b)Amount rounds to less than $0.005 per share.

(c)Not Annualized.

(d)Annualized.

 

See Notes to Financial Statements.

 

Semi-Annual Report | December 31, 2020 33

 

 

Financial Highlights James Aggressive Allocation Fund

 

For a share outstanding throughout the years or period indicated.

 

   For the
Six Months
Ended
December 31,
2020
(Unaudited)
   For the
Year Ended
June 30, 2020
   For the
Year Ended
June 30, 2019
   For the
Year Ended
June 30, 2018
   For the
Year Ended
June 30, 2017
   For the
Year Ended
June 30, 2016(a)
 
                         
Net asset value - beginning of year  $9.23   $10.20   $10.66   $10.00   $9.47   $10.00 
Income/(Loss) from investment operations:                     
Net investment income(b)   0.04    0.12    0.13    0.10    0.09    0.07 
Net realized and unrealized gain/(loss)   1.16    (0.98)   (0.50)   0.64    0.53    (0.57)
Total from investment operations   1.20    (0.86)   (0.37)   0.74    0.62    (0.50)
                               
Less distributions:                              
From net investment income   (0.09)   (0.11)   (0.09)   (0.08)   (0.09)   (0.03)
Total distributions   (0.09)   (0.11)   (0.09)   (0.08)   (0.09)   (0.03)
Net asset value at end of year  $10.34   $9.23   $10.20   $10.66   $10.00   $9.47 
                               
Total return   12.99%(c)  (8.60)%   (3.40)%   7.36%   6.54%   (4.98)%
                               
Net assets, end of year (in thousands)  $23,054   $20,795   $22,936   $10,989   $9,954   $7,172 
Ratios/Supplemental Data:                              
Ratio of net expenses to average net assets   1.01%(d)  0.98%   0.98%   0.98%   0.98%   0.98%
Ratio of net investment income to average net assets   0.73%(d)  1.22%   1.29%   0.90%   0.95%   0.81%
Portfolio turnover rate   54%(c)  80%   69%   219%   198%   218%

 

(a)Fund commenced operations on July 1, 2015.

(b)Calculated using the average shares method.

(c)Not Annualized.

(d)Annualized.

 

See Notes to Financial Statements.

 

34www.jamesinvestment.com

 

 

James Advantage Funds Notes to Financial Statements
 

December 31, 2020 (Unaudited)

 

1.ORGANIZATION
 

 

James Advantage Funds (the “Trust”) is an open-end management investment company that was organized as an Ohio business trust on August 29, 1997. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”). James Balanced: Golden Rainbow Fund, James Small Cap Fund, James Micro Cap Fund, and James Aggressive Allocation Fund are each a diversified series of the Trust (individually a “Fund,” collectively the “Funds”). Each class of James Balanced: Golden Rainbow Fund represents an interest in the same portfolio of investments and has the same rights, but differs primarily in distribution fees and shareholder features. The Retail Class shares are subject to distribution (12b-1) fees but have a lower minimum investment requirement and offer certain shareholder services not available to Institutional Class shareholders. The Institutional Class shares are not subject to distribution (12b-1) fees and are available only through investment advisers and bank trust departments that have made arrangements for shares of all of their clients investing in the Fund to be held in an omnibus account (as well as other investors that are approved by management of the Trust).

 

James Balanced: Golden Rainbow Fund seeks to provide total return through a combination of growth and income and preservation of capital in declining markets. The James Balanced: Golden Rainbow Fund seeks to achieve its objective by investing primarily in common stocks and/or debt securities that the Fund’s adviser, James Investment Research, Inc. (“James” or the “Adviser”), believes are undervalued.

 

James Small Cap Fund seeks to provide long-term capital appreciation. The James Small Cap Fund seeks to achieve its objective by investing primarily in common stocks of small capitalization companies. The Adviser defines small capitalization as those companies with market capitalizations at the time of purchase no larger than the stocks in the James Small Cap Fund’s benchmark, the Russell 2000® Index. As of December 31, 2020, the stock with the maximum capitalization in the Russell 2000® Index had a capitalization of $15.5 billion.

 

James Micro Cap Fund seeks to provide long-term capital appreciation. The James Micro Cap Fund seeks to achieve its objective by investing primarily in common stocks of micro capitalization companies. Micro capitalization companies are defined as those companies with market capitalizations at the time of purchase no larger than the stocks in the Russell Microcap® Index, including exchange traded funds (“ETFs”) that invest primarily in such securities. As of December 31, 2020, the stock with the maximum capitalization in the Russell Microcap® Index had a capitalization of $5.0 billion.

 

James Aggressive Allocation Fund seeks to provide total return through a combination of growth and income. Preservation of capital in declining markets is a secondary objective. The James Aggressive Allocation Fund will generally run equity allocations of 60% or higher and, therefore, could be more volatile than a more conservative fund that holds a smaller percentage of its assets in stocks. Due to its aggressive nature, the James Aggressive Allocation Fund will generally have a turnover ratio much higher than the James Balanced: Golden Rainbow Fund.

 

2.SIGNIFICANT ACCOUNTING POLICIES
 

 

The following is a summary of significant accounting policies followed by the Funds in preparation of their financial statements, in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Funds are considered an investment company for financial reporting purposes under U.S. GAAP and follow the accounting and reporting guidance applicable to investment companies in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946. The following is a summary of significant accounting policies consistently followed by the Funds in preparation of their financial statements.

 

Share Valuation

The net asset value per share of each Fund, other than the James Balanced: Golden Rainbow Fund, is calculated daily by dividing the total value of the Fund’s assets, less liabilities, by the number of shares outstanding. The net asset value per share of each class of shares of the James Balanced: Golden Rainbow Fund is calculated daily by dividing the total value of the Fund’s assets attributable to that class, less liabilities attributable to that class, by the number of outstanding shares of that class. The offering price and redemption price per share is equal to the net asset value per share, except that shares of the James Micro Cap Fund are subject to a redemption fee of 2% if redeemed within 180 days of purchase. Redemption fees received by the James Micro Cap Fund were $0 and $1,201 for the six months ended December 31, 2020 and the year ended June 30, 2020, respectively. The redemption fee is reflected in the “Payment for shares redeemed, net of redemption fee” in the Statements of Changes in Net Assets.

 

Securities Valuation

Securities are valued at fair value. The Funds’ portfolio securities are valued as of the close of the New York Stock Exchange (“NYSE”) (generally, 4:00 p.m., Eastern Time) on each day that the NYSE is open for business. Equity securities that are traded on any exchange, including closed-end funds and exchange-traded funds, are valued at the last quoted sale price on the exchange or market in which such securities are principally traded. Lacking a last sale price, a security is valued at its last bid price except when, in James’ opinion, the last bid price does not accurately reflect the current value of the security. Securities that are traded on the NASDAQ® over-the-counter market are valued at their NASDAQ® Official Closing Price (“NOCP”) for all NASDAQ® National Market (“NNM”) and NASDAQ® Capital Market® securities. When market quotations are not readily available, if an event occurs after the close of the trading market (but before the time as of which a Fund calculates its net asset value) that materially affects a security’s value, when James determines that the market quotation does not accurately reflect the current value or when a non-144A restricted security is being valued, that security will be valued at its fair value as determined in good faith in conformity with guidelines adopted by and subject to review of the Board of Trustees (the “Board”). Corporate bonds, U.S. government agencies, U.S. Treasury bonds & notes, foreign, and municipal bonds are generally valued at the mean between the closing bid and asked prices provided by an independent pricing service. The pricing services generally use market models that consider trade data, yields, spreads, quotations from dealers and active market makers, credit worthiness, market information of comparable securities, and other relevant security specific information. Asset backed/commercial mortgage backed securities are generally valued at the mean between the closing bid and asked prices provided by an independent pricing service. The pricing service generally uses models that consider trade data, prepayment, and default projections, benchmark yield and spread data and estimated cash flows of each tranche of the issuer. If the Adviser decides that a price provided by the pricing service does not accurately reflect the fair market value of the securities or when prices are not readily available from a pricing service, those securities will be priced at fair value as determined in good faith by the Adviser. Shares of open-end investment companies are valued at net asset value.

 

 
Semi-Annual Report | December 31, 2020 35

 

 

Notes to Financial Statements James Advantage Funds
 

December 31, 2020 (Unaudited)

 

For valuation purposes, quotations of foreign securities in a foreign currency are converted to U.S. dollar equivalents at the time of pricing the Funds. The values of foreign portfolio securities are generally based upon market quotations which, depending upon the exchange or market, may be last sale price, last bid price or the average of the last bid and asked prices as of, in each case, the close of the appropriate exchange or another designated time.

 

In accordance with the Trust’s good faith pricing guidelines, James is required to consider all appropriate factors relevant to the value of securities for which it has determined other pricing sources are not available or reliable as described above. There is no single standard for determining fair value, since fair value depends upon the circumstances of each individual case. As a general principle, the current fair value of an issue of securities being valued by the Adviser would appear to be the amount that the owner might reasonably expect to receive for them upon their current sale. Methods which are in accordance with this principle may, for example, be based on (i) a multiple of earnings, (ii) a discount from market of a similar freely traded security (including a derivative security or a basket of securities traded on other markets, exchanges or among dealers), or (iii) yield to maturity with respect to debt issues, or a combination of these and other methods.

 

Various inputs are used in determining the value of the Funds’ investments. These inputs are summarized in the three broad levels listed below:

 

Level 1 -Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that a Fund has the ability to access at the measurement date;
  
Level 2 -Quoted prices which are not active, quoted prices for similar assets or liabilities in active markets or inputs other than quoted prices that are observable (either directly or indirectly) for substantially the full term of the asset or liability; or
  
Level 3 -Significant unobservable prices or inputs (including a Fund’s own assumptions in determining the fair value of investments) where there is little or no market activity for the asset or liability at the measurement date.

 

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

 

 
36www.jamesinvestment.com

 

 

James Advantage Funds Notes to Financial Statements
 

December 31, 2020 (Unaudited)

 

The following is a summary of the inputs used to value the Funds’ investments as of December 31, 2020:

 

James Balanced: Golden Rainbow Fund

   Valuation Inputs      
Investments in Securities at Value*  Level 1   Level 2   Level 3   Total 
Common Stocks  $293,023,146   $   $   $293,023,146 
Exchange Traded Funds   43,517,312            43,517,312 
Corporate Bonds       76,300,047        76,300,047 
Municipal Bonds       17,659,766        17,659,766 
U.S. Government Agencies       36,919,501        36,919,501 
Mortgage Backed Securities       24,612,402        24,612,402 
U.S. Treasury Bonds & Notes   128,985,166            128,985,166 
Foreign Bonds       7,622,579        7,622,579 
Short Term Investments   4,039,394            4,039,394 
Total  $475,493,768   $163,114,295   $   $638,608,063 

 

James Small Cap Fund

 

   Valuation Inputs      
Investments in Securities at Value*  Level 1   Level 2   Level 3   Total 
Common Stocks  $33,676,002   $   $   $33,676,002 
Short Term Investments   890,309            890,309 
Total  $34,566,311   $   $   $34,566,311 

 

James Micro Cap Fund

 

   Valuation Inputs      
Investments in Securities at Value*   Level 1    Level 2    Level 3    Total 
Common Stocks  $23,273,577   $   $   $23,273,577 
Short Term Investments   489,987            489,987 
Total  $23,763,564   $   $   $23,763,564 

 

James Aggressive Allocation Fund

 

   Valuation Inputs      
Investments in Securities at Value*  Level 1   Level 2   Level 3   Total 
Common Stocks  $15,387,190   $   $   $15,387,190 
Exchange Traded Funds   2,115,234            2,115,234 
Corporate Bonds       1,469,942        1,469,942 
U.S. Government Agencies       1,000,244        1,000,244 
U.S. Treasury Bonds & Notes   2,045,282            2,045,282 
Short Term Investments   917,821            917,821 
Total  $20,570,927   $2,470,186   $   $23,041,113 

 

*For detailed descriptions of sector and industry, see the accompanying Schedule of Investments.

 

 
Semi-Annual Report | December 31, 2020 37

 

 

Notes to Financial Statements James Advantage Funds
 

December 31, 2020 (Unaudited)

 

Investment Transactions

Investment transactions are recorded on a trade date basis. Gains and losses are determined using the specific identification method, which liquidates all losses first, before any gains. Securities purchased or sold on a when-issued or delayed delivery basis may have extended settlement periods. Any securities so purchased are subject to market fluctuation during this period. The Funds will instruct its custodian to segregate assets in a separate account with a current value at least equal to the amount of its when-issued and delayed delivery purchase commitments. As of December 31, 2020, the Funds did not hold when-issued securities or delayed delivery purchase commitments.

 

Withholding taxes on foreign dividends have been provided for in accordance with the Trust’s understanding of the applicable country’s tax rules and rates.

 

Foreign Currency Translation

The market value of investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the current exchange rate, provided by WM Reuters, at the close of each business day. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars based at the exchange rate on the date of the transaction.

 

Reported net realized foreign exchange gains or losses arise from sales and maturities of short-term securities, sales of foreign currencies, currency gains or losses realized and between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Funds’ books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from the changes in the value of assets and liabilities including investments in securities at the reporting period, resulting from changes in the exchange rate. The portion of realized and unrealized gains or losses on investments due fluctuations in foreign currency exchange rates is not separately disclosed and is included in realized and unrealized gains or losses on investments, when applicable.

 

Investment Income

Dividend income is recorded on the ex-dividend date. Interest income is determined on the basis of interest accrued, adjusted for amortization of premiums and accretion of discounts on all debt securities. Amortization and accretion is calculated using the effective yield method.

 

Dividend income includes dividends earned on Real Estate Investment Trusts (“REITs”), which may include a return of capital. As such, important taxation issues may arise, which the Funds account for when information is provided by the issuing REIT.

 

Due to the actual character of dividends paid by REITs not being available until the end of the calendar year, the net investment income and long-term capital gains of the Funds can be different on the tax return compared to this annual report. Substantial unanticipated levels of return of capital may affect the Funds’ earnings and profits from which distributions are made.

 

Distributions received from Limited Partnership investments of a Fund are usually recorded as a return of capital and are excluded from available income in the calculation of distributions paid by the Funds. Return of capital is recorded as a reduction to the cost of investments in the Statements of Assets and Liabilities and in the Schedule of Investments.

 

Dividends and Distributions to Shareholders

Net investment income, if any, is generally declared and distributed to shareholders of each Fund on at least an annual basis. Net realized capital gains from security transactions, if any, are distributed to shareholders not less frequently than annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards. Distributions to shareholders of net investment income and net realized capital gains are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.

 

Allocation of Income and Expense

Investment income earned, realized capital gains and losses, and unrealized appreciation and depreciation for the James Balanced: Golden Rainbow Fund is allocated daily to each class of shares based upon its proportionate share of total net assets of the Fund. Class-specific expenses are charged directly to the class incurring the expense. Common expenses, which are not attributable to a specific class, are allocated daily to each class of shares based upon its proportionate share of total net assets of the Fund. The Adviser pays the expenses of each Fund, except for the James Balanced: Golden Rainbow Fund. These expenses exclude the management fees, detailed in Note 4, brokerage fees and commissions, taxes, interest, fees and expenses of the non-interested person trustees, 12b-1 fees and extraordinary expenses. Expenses not directly billed to a particular Fund are allocated proportionally among all Funds daily in relation to net assets of each Fund or another reasonable measure.

 

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

 

Epidemic and Pandemic Risk

Certain countries have been susceptible to epidemics, most recently COVID-19, which has been designated as a pandemic by world health authorities. The outbreak of such epidemics, together with any resulting restrictions on travel or quarantines imposed, could have a negative impact on the economy and business activity globally (including in the countries in which we invest), and thereby could adversely affect the performance of our investments. Furthermore, the rapid development of epidemics could preclude prediction as to their ultimate adverse impact on economic and market conditions, and, as a result, present material uncertainty and risk with respect to us and the performance of our investments.

 

 
38 www.jamesinvestment.com

 

 

James Advantage Funds Notes to Financial Statements
 

December 31, 2020 (Unaudited)

 

London Interbank Offered Rate Risk

Holdings of certain of the Funds’ underlying investments, and the Funds’ financing terms, may be based on floating rates, such as the London Interbank Offered Rate, or “LIBOR,” which is the offered rate for short-term Eurodollar deposits between major international banks. Plans are underway to phase out the use of LIBOR by the end of 2021. There remains uncertainty regarding the nature of any replacement rate and the impact of the transition from LIBOR on the Funds’ transactions and the financial markets generally. As such, the potential effect of a transition away from LIBOR on the Funds or the Funds’ investments cannot yet be determined.

 

Federal Income Taxes

The Funds generally intend to distribute all taxable income and capital gains to shareholders, if any, and to otherwise continue to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended, (the “Code”) applicable to regulated investment companies. Therefore, no federal tax provision is required.

 

As of and during the six months ended December 31, 2020, the Funds did not have a liability for any unrecognized tax benefits. The Funds file U.S. federal, state, and local tax returns as required. The Funds’ tax returns are subject to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return for federal purposes and four years for most state returns. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes.

 

As of December 31, 2020, the components of distributable earnings on a tax basis were as follows:

 

  

James Balanced: Golden

Rainbow Fund

   James Small Cap Fund   James Micro Cap Fund  

James Aggressive

Allocation Fund

 
Tax cost of portfolio investments  $545,133,907   $26,728,876   $17,215,351   $19,772,784 
Gross unrealized appreciation  $95,797,174   $9,102,274   $7,113,147   $3,419,127 
Gross unrealized depreciation   (2,323,018)   (1,264,839)   (564,934)   (150,798)
Net unrealized appreciation   93,474,156    7,837,435    6,548,213    3,268,329 
Total  $93,474,156   $7,837,435   $6,548,213   $3,268,329 

 

The difference between the cost of portfolio investments on a tax basis and financial statement cost for the Funds is due primarily to the deferral of wash sale losses and to the differing treatment of certain investments under income tax regulations and U.S. GAAP.

 

The tax character of distributions paid for the year ended June 30, 2020 was as follows:

 

  

James Balanced: Golden

Rainbow Fund

   James Small Cap Fund   James Micro Cap Fund  

James Aggressive

Allocation Fund

 
Ordinary Income  $9,343,727   $   $64,550   $245,700 
Long-Term Capital Gains   6,496,587        816,071     
Total  $15,840,314   $   $880,621   $245,700 

 

The tax character of distributions paid for the year ended June 30, 2019 was as follows:

 

  

James Balanced: Golden

Rainbow Fund

   James Small Cap Fund   James Micro Cap Fund  

James Aggressive

Allocation Fund

 
Ordinary Income  $20,313,773   $749,518   $   $96,369 
Long-Term Capital Gains   136,173,649    3,068,650    1,453,635     
Total  $156,487,422   $3,818,168   $1,453,635   $96,369 

 

The amounts and characteristics of tax basis distributions and composition of distributable earnings/(accumulated losses) are finalized at fiscal year-end. Accordingly, tax basis balances have not been determined as of December 31, 2020.

 

 
Semi-Annual Report | December 31, 2020 39

 

 

Notes to Financial Statements James Advantage Funds
 

December 31, 2020 (Unaudited)

 

Capital Losses

Under the Code, Capital Losses are carried over to future tax years and will retain their character as either short-term or long-term capital losses. These losses do not include any late year capital losses (losses arising in the period from November 1st through June 30th) that the Funds have elected to defer for the current fiscal year. The Funds’ ability to utilize capital loss carryforwards in the future may be limited under the Code and related regulations based on the results of future transactions.

 

Capital losses carried forward to the next tax year were as follows:

 

   Short Term   Long Term 
James Small Cap Fund  $3,345,554   $ 
James Aggressive Allocation Fund   958,355    5,070 

 

The Funds elect to defer to the year ending June 30, 2021 capital losses recognized during the period November 1, 2019 through December 31, 2020 in the amount of:

 

   Amount 
James Balanced: Golden Rainbow Fund  $7,223,507 
James Small Cap Fund   3,709,815 
James Micro Cap Fund   2,357,000 
James Aggressive Allocation Fund   1,905,041 

 

3.INVESTMENT TRANSACTIONS
 

 

Purchases and sales (including maturities) of investments in long-term U.S. Government obligations for the six months ended December 31, 2020 were as follows:

 

   Purchases   Sales 
James Balanced: Golden Rainbow Fund  $6,498,000   $108,929,242 
James Aggressive Allocation Fund   1,000,000    3,647,684 

 

Purchases and sales (including maturities) of investments in long- term securities other than U.S. Government Obligations for the six months ended December 31, 2020 were as follows:

 

   Purchases   Sales 
James Balanced: Golden Rainbow Fund  $240,588,241   $246,847,761 
James Small Cap Fund   7,601,011    9,203,565 
James Micro Cap Fund   3,303,573    3,337,937 
James Aggressive Allocation Fund   10,416,214    8,720,564 

 

4.MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
 

 

Investment Management Agreement

The Funds retain James to manage the Funds’ investments. The investment decisions for the Funds are made by a committee of James’ personnel, which is primarily responsible for the day-to-day management of each Fund’s portfolio and pursuant to separate management agreements between the Trust, on behalf of each Fund and the Adviser (the “Investment Management Agreements”).

 

The Funds pay James on a monthly basis at the annual rate set forth below of the Funds’ average daily net assets.

 

James Balanced: Golden Rainbow Fund

 

Average Total Net Assets Contractual Fee
Up to and including $500 million 0.74%
Over $500 million and including $1 billion 0.70%
Over $1 billion and including $2 billion 0.65%
Over $2 billion 0.60%

 

James Small Cap Fund

 

Average Total Net Assets Contractual Fee
Up to and including $500 million 1.25%
Over $500 million and including $1 billion 1.20%
Over $1 billion and including $2 billion 1.15%
Over $2 billion 1.10%

 

James Micro Cap Fund

 

Average Total Net Assets Contractual Fee
Up to and including $500 million 1.50%
Over $500 million 1.45%

 

James Aggressive Allocation Fund

 

Average Total Net Assets Contractual Fee
Up to and including $500 million 0.98%
Over $500 million and including $1 billion 0.95%
Over $1 billion and including $2 billion 0.90%
Over $2 billion 0.85%

 

Advisory fees for the James Small Cap Fund and the James Micro Cap Fund are reduced by the fees and expenses of the non-interested trustees incurred by the applicable Fund. Under the Investment Management Agreement, the Adviser is responsible for the payment of all operating expenses of the James Small Cap Fund, James Micro Cap Fund, and James Aggressive Allocation Fund, except for brokerage fees and commissions, taxes, interest, fees and expenses of non-interested person trustees, 12b-1 expenses and extraordinary expenses. Adviser is not entitled to recoupment of such expenses.

 

 
40 www.jamesinvestment.com

 

 

James Advantage Funds Notes to Financial Statements
 

December 31, 2020 (Unaudited)

 

Administrative Services Agreement

ALPS Fund Services, Inc. (“ALPS” or the “Administrator”) serves as administrator to the Funds. ALPS receives a monthly fee paid by James Balanced: Golden Rainbow Fund, for itself, and paid by James for the remaining Funds, subject to a minimum monthly fee. Pursuant to an administrative agreement, ALPS will provide operational services to the Funds including, but not limited to fund accounting and fund administration and generally assist in each Fund’s operations. Administration fees paid by the Funds for the six months ended December 31, 2020 are disclosed in the Statements of Operations.

 

Transfer Agency and Services Agreement

ALPS, pursuant to a Transfer Agency and Services Agreement with the Trust, serves as transfer agent for the Funds. Under the Transfer Agency and Services Agreement, ALPS receives an annual minimum fee, a fee based upon the number of shareholder accounts and is also reimbursed for out-of-pocket expenses. These fees and reimbursements for out-of-pocket expenses are paid by James Balanced: Golden Rainbow Fund, for itself, and by James for the remaining Funds. Transfer agent fees paid by the Funds for the six months ended December 31, 2020 are disclosed in the Statements of Operations.

 

Plans of Distribution

The James Balanced: Golden Rainbow Fund (Retail Class) and James Small Cap Fund have adopted a plan pursuant to Rule 12b-1 under the 1940 Act (collectively, the “Plans”) under which each Fund may incur expenses related to distribution of its shares and for services provided to shareholders. These expenses are reflected as 12b-1 distribution and service fees on the Statements of Operations. Payments under a Plan are made to the Adviser, which uses them to pay distribution and shareholder service expenses on behalf of and as agent of the Fund. The amount payable by the James Small Cap Fund and the Retail Class of the James Balanced: Golden Rainbow Fund, under its Plan is 0.25% of its average daily net assets for the year. The Plans are compensation plans, which means that payments are made to the Adviser regardless of 12b-1 expenses actually incurred. Therefore, payments under a Plan may exceed distribution and shareholder service expenses incurred pursuant to the Plan, and the Adviser is permitted to retain the excess. It is also possible that 12b-1 expenses paid by the Adviser for a period will exceed the payments received by the Adviser, in which case the Adviser may pay such excess expenses out of its own resources. Payments received by the Adviser under the Plans are in addition to the fees paid to the Adviser pursuant to the Management Agreements. The Plans require that the Adviser act in the Funds’ best interests in expending the payments it receives from the Funds and use payments solely for the purpose of paying distribution and shareholder services expenses on behalf of the Funds. The Funds’ distributor, ALPS Distributors, Inc., validates all payment amounts to be made to brokers that have properly executed dealer agreements with the Funds before the Adviser will make such payments.

 

Trustee Fees

Each Trustee who is not an officer or employee of the Adviser, or any of their affiliates (“Independent Trustees”) receives (1) a quarterly retainer of $7,900, (2) a per meeting fee for regularly scheduled meetings of $2,100, (3) an audit committee fee of $1,000 paid to the audit committee chair and $500 to the other Independent Trustees, (4)   $2,100 for any special meeting held outside of a regularly scheduled board meeting that the Trustee is required to attend in person, (5) $210 for any special telephonic meetings held outside of a regularly scheduled board meeting, and (6) reimbursement for all reasonable out-of-pocket expenses relating to attendance at meetings. Such fees are presented on the Statements of Operations as Trustee Fees.

 

5.COMMITMENTS AND CONTINGENCIES
 

 

The Funds indemnify the Trust’s officers and trustees for certain liabilities that might arise from their performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties and that provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

 

6.LINE OF CREDIT
 

 

Each Fund has a revolving line of credit agreement with U.S. Bank, N.A. (the “Bank”). Borrowings under these arrangements are secured by investments held in the Funds’ portfolios as notated on the Schedules of Investments and bear interest at the Bank’s prime rate. During the six months ended December 31, 2020, the James Balanced: Golden Rainbow Fund utilized its line of credit. The average amount of borrowings was $180,000 over 1 day with a weighted-average interest rate of 3.25%. During the six months ended December 31, 2020, the James Small Cap Fund, James Micro Cap Fund and James Aggressive Allocation Fund did not utilize their line of credit. Interest on funded and unfunded loans was $16 for the James Balanced: Golden Rainbow Fund. Each Fund’s line of credit agreement expired on July 8, 2020 and was renewed for one year.

 

The terms of the agreements can be characterized as follows:

 

Fund  Maximum
Balance
Available
   Interest
Rate
  Expiration Date
James Balanced: Golden Rainbow Fund  $35,000,000   Prime Rate*  July 7, 2021
James Small Cap Fund  $1,250,000   Prime Rate*  July 7, 2021
James Micro Cap Fund  $750,000   Prime Rate*  July 7, 2021
James Aggressive Allocation Fund  $500,000   Prime Rate*  July 7, 2021

 

*The rate at which the Bank announces as its prime lending rate.

 

 
Semi-Annual Report | December 31, 2020 41

 

 

Additional Information James Advantage Funds
 

December 31, 2020 (Unaudited)  

 

PROXY VOTING GUIDELINES

 

 

James is responsible for exercising the voting rights associated with the securities purchased and held by the Funds. A description of the policies and procedures that James uses in fulfilling this responsibility and information regarding how those proxies were voted during the most recent 12-month period ended June 30 are available without charge upon request by calling toll free 1-800-995-2637. These items are also available on the Securities and Exchange Commission’s (the “Commission”) website at http://www.sec.gov.

 

QUARTERLY PORTFOLIO DISCLOSURE

 

 

The Funds’ portfolio holdings are made available semi-annually in shareholder reports within 60 days after the close of the period for which the report is being made, as required by federal securities laws. The Funds also file a complete schedule of portfolio holdings with the Commission for the first and third quarters of the Funds’ fiscal year on Part F of Form N-PORT. Portfolio holdings filed on Form N-PORT become publicly available on the Commission’s website at http://www.sec.gov within 60 days after the end of that Funds’ fiscal quarter. Schedules of portfolio holdings are also available at www.jamesinvestment.com, or upon request, without charge by calling at 1-800-995-2637.

 

 
42 www.jamesinvestment.com

 

 

 

James Advantage Funds Privacy Policy
 

December 31, 2020 (Unaudited)

 

Facts

What does James Advantage Funds do with your personal information?

 

Why?

Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some, but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.

 

What?

The types of personal information we collect and share depends on the product or service that you have with us. This information can include:

Social Security number and wire transfer instructions

account transactions and transaction history

investment experience and purchase history

 

When you are no longer our customer, we continue to share your information as described in this notice.

 

How?

All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons James Advantage Funds chooses to share; and whether you can limit this sharing.

 

Reasons we can share your personal information: Does James Advantage Funds
share information?
Can you limit this sharing?
For our everyday business purposes - such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus. YES NO
For our marketing purposes - to offer our products and services to you. YES NO
For joint marketing with other financial companies. NO We don’t share
For our affiliates’ everyday business purposes - information about your transactions and records. NO We don’t share
For our affiliates’ everyday business purposes - information about your credit worthiness. NO We don’t share
For our affiliates to market to you NO We don’t share
For non-affiliates to market to you NO We don’t share

 

Questions? Call 1-800-99 James

 

What we do:  

How does James Advantage Funds protect my personal information?

To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings.

 

Our service providers are held accountable for adhering to strict policies and procedures to prevent any misuse of your nonpublic personal information.

How does James Advantage Funds collect my personal information?

We collect your personal information, for example, when you

●   open an account or deposit money

●   direct us to buy securities or direct us to sell your securities

●   seek advice about your investments

We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.

Why can’t I limit all sharing?

Federal law gives you the right to limit only:

●   sharing for affiliates’ everyday business purposes – information about your creditworthiness.

●   affiliates from using your information to market to you.

●   sharing for nonaffiliates to market to you.

State laws and individual companies may give you additional rights to limit sharing.

 

Definitions    
Affiliates

Companies related by common ownership or control. They can be financial and non-financial companies.

     Our affiliates include financial companies, such as James Investment Research, Inc. and James Capital Alliance.

Non-affiliates

Companies not related by common ownership or control. They can be financial and non-financial companies.

     James Advantage Funds does not share with nonaffiliates so they can market to you.

Joint marketing

A formal agreement between nonaffiliated financial companies that together market financial products or services to you.

     James Advantage Funds does not jointly market.

 

 
Semi-Annual Report | December 31, 2020 43

 

 

 

 

 

(b)Not applicable.

 

Item 2. Code of Ethics.

 

Not applicable to this Report.

 

Item 3. Audit Committee Financial Expert.

 

Not applicable to this Report.

 

Item 4. Principal Accountant Fees and Services.

 

Not applicable to this Report.

 

Item 5. Audit Committee of Listed Registrants.

 

Not applicable to the registrant.

 

Item 6. Investments.

 

(a)The Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.

 

(b)Not applicable to the registrant.

 

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

 

Not applicable to the registrant.

 

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

 

Not applicable to the registrant.

 

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

 

Not applicable to the registrant.

 

Item 10. Submission of Matters to a Vote of Security Holders.

 

The registrant has not adopted procedures by which shareholders may recommend nominees to the registrant’s board of trustees.

 

 

Item 11. Controls and Procedures.

 

(a)Based on an evaluation of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended), the registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures are effective as of a date within 90 days of the filing date of this report.

 

(b)There were no significant changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended) that occurred during the second fiscal quarter of the period covered by this Report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

 

Not applicable.

 

Item 13. Exhibits.

 

(a)(1) Not applicable to this Report.

 

(a)(2) Certifications required by Item 13(a)(2) of Form N-CSR are filed herewith as Exhibit 99.CERT.

 

(a)(3) Not applicable.

 

(a)(4)Not applicable.

 

(b) Certifications required by Item 13(b) of Form N-CSR are filed herewith as Exhibit 99.906CERT.

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

The James Advantage Funds  
     
By: /s/ Barry R. James  
  Barry R. James  
  President  
     
Date: March 4, 2021  

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By: /s/ Barry R. James  
  Barry R. James  
  President  
     
Date: March 4, 2021  

 

By: /s/ Amy K. Broerman  
  Amy K. Broerman  
  Chief Financial Officer  
     
Date: March 4, 2021  
EX-99.CERT 2 fp0062860_ex99cert.htm

 

Exhibit 99.CERT

 

CERTIFICATIONS

 

I, Barry R. James, certify that:

 

1.I have reviewed this report on Form N-CSR of The James Advantage Funds;

 

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

 

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

 

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: March 4, 2021 /s/ Barry R. James  
 

Barry R. James, President 

Chief Executive Officer 

 

 

 

I, Amy K. Broerman, certify that:

 

1.I have reviewed this report on Form N-CSR of The James Advantage Funds;

 

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

 

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

 

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: March 4, 2021 /s/ Amy K. Broerman  
 

Amy K. Broerman 

Chief Financial Officer 

 
EX-99.906 CERT 3 fp0062860_ex99906cert.htm

   

EX-99.906CERT

 

Certifications Under Section 906 

of the Sarbanes-Oxley Act of 2002

 

Barry R. James, Chief Executive Officer, and Amy K. Broerman, Chief Financial Officer of the James Advantage Funds (the “Registrant”), each certify to the best of his or her knowledge that:

 

1.The Registrant’s periodic report on Form N-CSR for the period ended December 31, 2020 (the “Report”) fully complies with the requirements of sections 13(a) or 15(d) of the Securities and Exchange Act of 1934, as amended; and

 

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

 

Chief Executive Officer   Chief Financial Officer  
James Advantage Funds   James Advantage Funds  
       
/s/ Barry R. James   /s/ Amy K. Broerman  
Barry R. James   Amy K. Broerman  
Date: March 4, 2021   Date: March 4, 2021  

 

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission (the “Commission”) or its staff upon request.

 

This certification is being furnished to the Commission solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Report with the Commission.

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