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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)
James Advantage Funds
(Exact name of registrant as specified in charter)
1349 Fairground Road
Beavercreek, 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, 2012 – December 31, 2012
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Item 1. Reports to Stockholders.
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James Advantage Funds | Shareholder Letter | |
December 31, 2012 (Unaudited) |
Just about everybody was happy that the 2012 presidential elections were finally over, but the markets corrected soon afterward. The markets fell sharply after the results were posted, but started to recover relatively quickly. The September high was not surpassed until January 2013, but the S&P 500 still scored an impressive 16.00 percent return for the year and small capitalization companies, as measured by the Russell 2000 returned 16.35 percent. Concerns over the impact of the Affordable Health Care Act, Dodd-Frank and other regulatory initiatives gave way to improvements in housing data, automobile sales and consumer financial health. The Federal Reserve’s policy of Quantitative Easing also helped.
The Markets Over the Past Six Months
Over the last six months of 2012, the S&P 500® Index rose 5.95 percent, the Russell 2000® Index advanced 7.20 percent, the Russell Microcap® Index rose 5.96 percent and the S&P 400® MidCap Value Index advanced 9.53 percent. The election dominated the headlines, and some investors fretted over an expanding government and the costs of new regulations. The election results were met with a temporary sell-off in stocks, driving the S&P 500 down almost 9 percent from its September high to its November 16 low. Still, accumulating evidence of fundamental improvement in the U.S economy and a gradual dissipation of worries over Europe’s banking crisis and China’s slowing growth rate provided the underpinnings for a sustainable rally in stocks. The James Advantage Funds did participate in this rising confidence and the Golden Rainbow Fund added to its allocation to stocks on the weakness after the election.
The U.S. dollar weakened against almost all of its major trading partners during the calendar year. Of course, a weakening dollar is generally good news for holdings in foreign stocks and bonds. The Golden Rainbow Fund benefitted from the weaker dollar through its holdings of bonds issued in foreign currencies, including the Canadian dollar, the Australian dollar, the euro, and the Swedish krona. These holdings are detailed in the Schedule of Investments on page 14 of this report.
Investment Goals and Objectives
Preservation of capital and income are the two primary objectives of the Balanced: Golden Rainbow Fund. The Fund’s investments in bonds helped to meet the income objective in 2012. The Fund’s management is pleased that, even with interest rates at historic lows, the Golden Rainbow paid out a dividend every quarter, and supplemented income needs of shareholders with a capital gains dividend in December. We note also that many corporations paid unusually large and unanticipated dividends in the final days of 2012. Their objective was to reward shareholders with dividend income before the new, higher tax rates on dividends took effect in 2013. The higher than usual ordinary dividends paid to shareholders of the Golden Rainbow Fund retail shares ($0.13/share), the Golden Rainbow Institutional shares ($0.1565/share), and the Small Cap Fund ($0.512/share) were a result of these special dividends, and investors are cautioned not to assume those distributions are normal or that they will be repeated.
The Small Cap Fund, the Mid Cap Fund, the Long-Short Fund and the Micro Cap Fund seek long term capital appreciation as their primary objective. These Funds look for stocks the Adviser believes to be undervalued, using its proprietary research to sift through a database of over 8,500 stocks. The Long-Short Fund may employ a short-selling strategy when the Adviser’s research shows a higher probability of a market decline and may also leverage itself through the use of a bank line of credit. The basic research is the same for all the Funds. The Adviser prides itself on its own research and does not buy outside research. These Funds do not seek to pay dividends, but will distribute net income when it is earned through dividends or other sources.
Investment Philosophy
Since 1972, James Investment Research, Inc., adviser to the James Advantage Funds, has embraced conservative principles of investing. Experience has taught us that stocks with strong earnings growth, low valuations and relative strength are more likely to outperform the broad stock market over time, and we have found that preserving capital in down markets is very important in achieving long term growth. Our independent research is generally free of Wall Street hype and allows us to take a different path. We do not participate in IPOs (initial public offerings), as they have a relatively poor track record of rewarding shareholders and because our research requires an extensive amount of history that IPOs cannot provide.
Strategy for Meeting Fund Objectives
When the Adviser’s risk research indicates that the risk in the stock market is low and that opportunities for stocks to move higher are great, the Fund’s portfolio managers will increase the allocation to common stocks in the James Balanced: Golden Rainbow Fund. Of course, a balanced fund will always hold both bonds and stocks, and the Golden Rainbow normally will not fall below 25% in its allocation to either stocks or bonds. To help meet the income objective of the Fund, the portfolio managers have added high quality municipal bonds and sovereign bonds to the portfolio. In 2012, we increased our holdings in corporate bonds, mortgage-backed bonds and federal agency debentures, while lowering the exposure to U.S. Treasury Securities.
The Small Cap Fund, the Mid Cap Fund, the Micro Cap Fund and the Long-Short Fund use the same proprietary research, but concentrate on separate strategies that include market capitalization niches for the first three funds and allows for both long and short positions in all market capitalizations for the Long-Short Fund. The Adviser’s Research staff is actively working on ranking stocks and on top-down analysis designed to gauge the direction of the U.S. economy as well as the global economy. The Adviser often identifies the risk levels in the broad stock market through its research, which then helps Fund managers adjust the Fund holdings accordingly. If the research points towards a decline in economic
Semi-Annual Report | December 31, 2012 | 1 |
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Shareholder Letter | James Advantage Funds | |
December 31, 2012 (Unaudited) |
activity and in stock prices, all the funds will prefer defensive stocks, such as utilities, health care and non-cyclicals, while still retaining the Adviser’s strategy of seeking out bargain stocks. In addition, the Golden Rainbow Fund will increase its holdings in bonds and reduce exposure to common equities, and the Long-Short Fund will add short positions. Stocks the Adviser considers to be bargains generally have low value ratios, such as price to earnings and price to cash, but also generally have strong earnings and relative strength. The Adviser has found this strategy to be very useful over the long run.
All of the Funds in the James Advantage Funds family employ a disciplined SELL strategy, eliminating securities that lose their value traits or otherwise fall out of favor due to macro-economic changes, management changes or similar events. The Adviser’s staff regularly monitors all of the Funds’ holdings and employs multiple screens to detect changes in a company profile. Still, as you will see in the Financial Highlights report, the Funds’ turnover ratios are low by most industry standards.
Fund Performance
Over the last six months of 2012, The Golden Rainbow Retail Class advanced 5.27 percent and the Institutional Class shares rose 5.44 percent, besting their blended Index benchmark, which rose 4.18 percent (see benchmark details on page 3 of this report). The Small Cap Fund rose 5.37 percent over the last six months of the year versus a 7.20 percent increase in its benchmark. The Mid Cap Fund advanced 10.05 percent, beating its benchmark, (the S&P 400® MidCap Value Index), return of 9.53 percent. The Micro Cap Fund lagged during the last half of the year, returning only 1.02 percent versus its benchmark, (the Russell Microcap® Index), return of 5.96 percent. The Long-Short Fund rose 4.01 percent, lagging its benchmark, (the S&P 500® Index), return of 5.95 percent. The excess performance by the Golden Rainbow Fund was due to an increase in the allocation to stocks, moving from about 49 percent in September to about 55 percent in December, a reduced allocation to long-term Treasury and bonds the strong success of the firm’s proprietary stock research over the fourth quarter. While the Adviser’s stock selection methodology had not been superior in the first part of 2012, it returned to favor in the fourth quarter. Consider the following returns over the fourth quarter versus their benchmarks: The Small Cap Fund returned 2.33 percent versus 1.85 percent on the Russell 2000® Index; the Mid Cap Fund returned 5.41 percent versus a 4.51 percent return on the S&P 400® MidCap Value Index; the Micro Cap Fund returned 2.51 percent versus 0.04 percent return on the Russell Microcap® Index; and the Long-Short Fund rose 3.18 percent, while the S&P 500® Index fell 0.38 percent. We believe this across the board outperformance is strong evidence that our methodology is back in favor and we note that we did not change our methodology over the course of the year.
Expectations for the Future
Our research points to a difficult year for the stock market if Congress and the Obama Administration cannot resolve important issues on the debt ceiling, sequestration and the budget. While international economies are showing signs of improvement, it is premature to forecast a strengthening global economy, and additional weaknesses may develop. While we continue to be encouraged by the improving housing market and we see consumer financial health a plus, we are still worried about the excessively high unemployment rate. We also note that the post-election year is often a difficult year for the stock market. Unlike many years in the past, where bond holdings served to offset declines in prices, we fear the interest rates are too low to provide the same degree of safety and that bond rallies may be briefer and less rewarding than in the past. Still, various sectors of the stock market will add value over the course of the year and active management will be key in creating and retaining excess portfolio returns.
Thomas L. Mangan
Chief Financial Officer
The statements and opinions expressed are those of the author and are as of the date of this report. 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.
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James Advantage Funds | Growth of $10,000 Charts | |
December 31, 2012 (Unaudited) |
Comparison of the Change in Value of a $10,000 Investment in the James Balanced: Golden Rainbow Fund – Retail Class
James Balanced: Golden Rainbow Fund, S&P 500® Index and Blended Index Average Annual Total Returns
1 Year | 5 Years | 10 Years | Since Inception(2) | |||||
James Balanced: Golden Rainbow – Retail Class | 8.13% | 5.51% | 8.29% | 8.24% | ||||
S&P 500® Index | 16.00% | 1.66% | 7.10% | 8.57% | ||||
Russell 2000® Index | 16.35% | 3.56% | 9.72% | 9.33% | ||||
Barclays Capital Intermediate Government/Credit Index | 3.89% | 5.18% | 4.62% | 6.22% | ||||
Blended Index(1) | 10.07% | 4.55% | 6.96% | 8.04% | ||||
| ||||||||
James Balanced: Golden Rainbow - Institutional Class | 8.42% | N/A | N/A | 13.28% | ||||
S&P 500® Index | 16.00% | N/A | N/A | 22.98% | ||||
Russell 2000® Index | 16.35% | N/A | N/A | 26.16% | ||||
Barclays Capital Intermediate Government/Credit Index | 3.89% | N/A | N/A | 5.59% | ||||
Blended Index(1) | 10.07% | N/A | N/A | 15.28% |
(1) | The Blended Index is comprised of a 25% weighting in the S&P 500® Index, a 25% weighting in the Russell 2000® Index and a 50% weighting in the Barclays Capital Intermediate Government/Credit Index. |
(2) | Retail Class inception was July 1, 1991. Institutional 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, 2012, was 1.07% for the Retail Class and 0.82% for the Institutional Class.
Comparison of the Change in Value of a $10,000 Investment in the James Small Cap Fund
James Small Cap Fund and Russell 2000® Index Average Annual Total Returns
1 Year | 5 Years | 10 Years | Since Inception(1) | |||||
James Small Cap Fund | 7.35% | 3.09% | 9.86% | 7.51% | ||||
Russell 2000® Index | 16.35% | 3.56% | 9.72% | 7.83% |
(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, 2012, was 1.50%.
Mid, 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 S&P 500® Index is an unmanaged index of 500 common stocks chosen for market size, liquidity and industry group representation.
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 Barclays Capital Intermediate Government/Credit 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.
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 S&P 500® Index, Russell 2000® Index, Barclays Capital Intermediate Government/Credit Index, S&P Mid Cap 400® 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, 2012 | 3 |
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Growth of $10,000 Charts | James Advantage Funds | |
December 31, 2012 (Unaudited) |
Comparison of the Change in Value of a $10,000 Investment in the James Mid Cap Fund
James Mid Cap Fund and S&P Mid Cap 400® Index Average Annual Total Returns
1 Year | 5 Year | Since Inception(1) | ||||||||||
James Mid Cap Fund | 12.90 | % | 2.36 | % | 2.95 | % | ||||||
S&P MidCap 400® Index | 18.53 | % | 4.34 | % | 4.86 | % |
(1) | Fund inception was June 30, 2006. |
The total annual operating expense ratio as stated in the fee table of the most recent prospectus, dated November 1, 2012, was 1.51%. |
Comparison of the Change in Value of a $10,000 Investment in the James Micro Cap Fund
James Micro Cap Fund and Russell Microcap® Index Average Annual Total Returns
1 Year | Since Inception(1) | |||||||
James Micro Cap Fund | 9.84 | % | 7.18 | % | ||||
Russell Microcap® Index | 19.75 | % | 14.77 | % |
(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, 2012 was 1.50%. |
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 Mid-Cap Fund invests in stocks of mid-cap companies which tend to be more volatile and can be less liquid than stocks of large-cap companies. Diversification does not guarantee a profit or protect against loss. Current and future portfolio holdings are subject to risk.
Mid, 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 S&P 500® Index, Russell 2000® Index, Barclays Capital Intermediate Government/Credit Index, S&P MidCap 400® 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.
The S&P MidCap 400® Value Index is a recognized, unmanaged index of mid cap stocks considered to be value stocks using Standard and Poor’s methodology.
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.
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James Advantage Funds | Growth of $10,000 Charts | |
December 31, 2012 (Unaudited) |
Comparison of the Change in Value of a $10,000 Investment in the James Long-Short Fund
James Long-Short Fund and S&P 500® Index Average Annual Total Returns
1 Year | Since Inception(1) | |||
James Long-Short Fund | 8.12% | 2.51% | ||
S&P 500® Index | 16.00% | 7.44% |
(1) | Fund inception was May 23, 2011. |
The total annual operating expense ratio as stated in the fee table of the most recent prospectus, dated November 1, 2012, was 2.67%. |
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.
Short selling incurs significant additional risk; theoretically, stocks sold short have unlimited upside risk potential. In addition, this strategy depends on the Adviser’s ability to correctly identify undervalued and overvalued stocks, and that the stock markets are reasonable and efficient. Periods of extreme volatility may harm the performance of this product. The Long-Short Fund may have a high portfolio turnover rate. A high portfolio turnover rate can result in increased brokerage commission costs and may expose taxable shareholders to potentially larger current tax liability.
The S&P 500® Index, Russell 2000® Index, Barclays Capital Intermediate Government/Credit Index, S&P MidCap 400® 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.
The S&P 500® Index is an unmanaged index of 500 common stocks chosen for market size, liquidity and industry group representation.
Semi-Annual Report | December 31, 2012 | 5 |
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Representation of Schedules of Investments | James Advantage Funds | |
December 31, 2012 (Unaudited) |
The illustrations below provide the industry sectors for the James Balanced: Golden Rainbow Fund, James Small Cap Fund, James Mid Cap Fund, James Micro Cap Fund, and James Long-Short Fund.
James Balanced: Golden Rainbow Fund - Industry Sector Allocation (% of Net Assets)
James Small Cap Fund - Industry Sector Allocation
(% of Net Assets)
James Long-Short Fund - Industry Sector Allocation
(% of Net Assets)
(Cash and Cash Equivalents and Other Liabilities in Excess of Assets not included)
James Mid Cap Fund - Industry Sector Allocation
(% of Net Assets)
James Micro Cap Fund - Industry Sector Allocation
(% of Net Assets)
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James Advantage Funds | Disclosure of Fund Expenses | |
December 31, 2012 (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, 2012 through December 31, 2012.
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 | Beginning Account Value July 1, 2012 | Ending Account Value December 31, 2012 | Expense Paid During Period(b) | |||||||||||||
James Balanced: Golden Rainbow Fund | ||||||||||||||||
Retail Class Actual | 1.05 | % | $ | 1,000.00 | $ | 1,052.70 | $ | 5.43 | ||||||||
Retail Class Hypothetical (5% return before expenses) | 1.05 | % | $ | 1,000.00 | $ | 1,019.91 | $ | 5.35 | ||||||||
Institutional Class Actual | 0.80 | % | $ | 1,000.00 | $ | 1,054.40 | $ | 4.14 | ||||||||
Institutional Class Hypothetical (5% return before expenses) | 0.80 | % | $ | 1,000.00 | $ | 1,021.17 | $ | 4.08 | ||||||||
James Small Cap Fund | ||||||||||||||||
Actual | 1.50 | % | $ | 1,000.00 | $ | 1,053.70 | $ | 7.76 | ||||||||
Hypothetical (5% return before expenses) | 1.50 | % | $ | 1,000.00 | $ | 1,017.64 | $ | 7.63 | ||||||||
James Mid Cap Fund | ||||||||||||||||
Actual | 1.50 | % | $ | 1,000.00 | $ | 1,100.50 | $ | 7.94 | ||||||||
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 | $ | 1,010.20 | $ | 7.60 | ||||||||
Hypothetical (5% return before expenses) | 1.50 | % | $ | 1,000.00 | $ | 1,017.64 | $ | 7.63 | ||||||||
James Long-Short Fund | ||||||||||||||||
Actual | 2.80 | %(c) | $ | 1,000.00 | $ | 1,040.10 | $ | 14.40 | ||||||||
Hypothetical (5% return before expenses) | 2.80 | %(c) | $ | 1,000.00 | $ | 1,011.09 | $ | 14.19 |
(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. Note the expense example is typically based on a six-month period. |
(c) | Dividend and interest expense on securities sold short and interest expense totaled 1.30% (annualized) of average net assets for the six months ended December 31, 2012. |
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Schedule of Investments | James Balanced: Golden Rainbow Fund | |
December 31, 2012 (Unaudited) |
Shares or Principal Amount | Value | |||||||
| COMMON STOCKS-53.2% |
| ||||||
Basic Materials-7.0% | ||||||||
50,000 | Aceto Corp. | $502,000 | ||||||
209,000 | Barrick Gold Corp. | 7,317,090 | ||||||
410,000 | Buckeye Technologies, Inc. | 11,771,100 | ||||||
113,300 | Cabot Corp. | 4,508,207 | ||||||
113,000 | CF Industries Holdings, Inc. | 22,957,080 | ||||||
55,000 | Cooper Tire & Rubber Co. | 1,394,800 | ||||||
13,600 | Eastman Chemical Co. | 925,480 | ||||||
95,000 | FMC Corp. | 5,559,400 | ||||||
10,000 | H.B. Fuller Co. | 348,200 | ||||||
66,000 | Huntsman Corp. | 1,049,400 | ||||||
152,000 | Innospec, Inc. | 5,242,480 | ||||||
72,000 | International Paper Co. | 2,868,480 | ||||||
25,210 | NewMarket Corp. | 6,610,062 | ||||||
132,000 | Newmont Mining Corp. | 6,130,080 | ||||||
200,000 | PH Glatfelter Co. | 3,496,000 | ||||||
311,040 | PolyOne Corp. | 6,351,437 | ||||||
141,200 | PPG Industries, Inc. | 19,111,420 | ||||||
77,040 | Terra Nitrogen Co. LP | 16,493,493 | ||||||
|
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122,636,209 | ||||||||
|
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Consumer, Cyclical-10.8% | ||||||||
694,600 | Alaska Air Group, Inc. * | 29,930,314 | ||||||
213,000 | The Cato Corp., Class A | 5,842,590 | ||||||
287,100 | Destination Maternity Corp. | 6,189,876 | ||||||
248,800 | Dillard’s, Inc., Class A | 20,841,976 | ||||||
98,900 | DineEquity, Inc. * | 6,626,300 | ||||||
84,000 | DIRECTV, Class A * | 4,213,440 | ||||||
20,000 | Dollar Tree, Inc. * | 811,200 | ||||||
203,100 | Foot Locker, Inc. | 6,523,572 | ||||||
1,524,165 | Ford Motor Co. | 19,737,937 | ||||||
176,300 | KB Home | 2,785,540 | ||||||
114,400 | LeapFrog Enterprises, Inc. * | 987,272 | ||||||
617,800 | Macy’s, Inc. | 24,106,556 | ||||||
151,300 | Moody’s Corp. | 7,613,416 | ||||||
31,900 | PetSmart, Inc. | 2,180,046 | ||||||
170,000 | RR Donnelley & Sons Co. | 1,530,000 | ||||||
720,315 | Sinclair Broadcast Group, Inc., Class A | 9,090,375 | ||||||
228,050 | Target Corp. | 13,493,718 | ||||||
85,000 | TJX Cos., Inc. | 3,608,250 | ||||||
163,500 | Viacom, Inc., Class A | 8,873,145 | ||||||
147,000 | Viacom, Inc., Class B | 7,752,780 | ||||||
116,000 | Wal-Mart Stores, Inc. | 7,914,680 | ||||||
|
| |||||||
190,652,983 | ||||||||
|
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Consumer, Non-cyclical-6.6% | ||||||||
199,000 | Dean Foods Co. * | 3,285,490 | ||||||
341,100 | Eli Lilly & Co. | 16,823,052 | ||||||
45,000 | Grand Canyon Education, Inc.* | 1,056,150 | ||||||
202,600 | Ingredion, Inc. | 13,053,518 | ||||||
12,000 | Kimberly-Clark Corp. | 1,013,160 | ||||||
75,000 | LifePoint Hospitals, Inc. * | 2,831,250 | ||||||
449,200 | Merck & Co., Inc. | 18,390,248 | ||||||
442,000 | Mylan, Inc. * | 12,146,160 |
See Notes to Financial Statements. | ||
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James Balanced: Golden Rainbow Fund | Schedule of Investments | |
December 31, 2012 (Unaudited) |
Shares or Principal Amount | Value | |||||||
Consumer, Non-cyclical (continued) | ||||||||
155,000 | Newell Rubbermaid, Inc. | $3,451,850 | ||||||
649,000 | Pfizer, Inc. | 16,276,920 | ||||||
2,850 | Seaboard Corp. | 7,210,158 | ||||||
94,300 | The Toro Co. | 4,053,014 | ||||||
30,000 | Tupperware Brands Corp. | 1,923,000 | ||||||
228,300 | UnitedHealth Group, Inc. | 12,382,992 | ||||||
40,075 | WellPoint, Inc. | 2,441,369 | ||||||
|
| |||||||
116,338,331 | ||||||||
|
| |||||||
Energy-5.5% | ||||||||
86,500 | Apache Corp. | 6,790,250 | ||||||
156,970 | Chevron Corp. | 16,974,736 | ||||||
9,000 | ConocoPhillips | 521,910 | ||||||
34,000 | Delek US Holdings, Inc. | 860,880 | ||||||
28,800 | Diamond Offshore Drilling, Inc. | 1,957,248 | ||||||
140,500 | Exxon Mobil Corp. | 12,160,275 | ||||||
553,044 | HollyFrontier Corp. | 25,744,198 | ||||||
130,000 | Pioneer Energy Services Corp. * | 943,800 | ||||||
93,800 | Plains All American Pipeline LP | 4,243,512 | ||||||
80,000 | Stone Energy Corp. * | 1,641,600 | ||||||
552,500 | Tesoro Corp. | 24,337,625 | ||||||
42,000 | Valero Energy Corp. | 1,433,040 | ||||||
|
| |||||||
97,609,074 | ||||||||
|
| |||||||
Financial-8.4% | ||||||||
42,500 | Allied World Assurance Co. Holdings AG | 3,349,000 | ||||||
304,000 | American Financial Group, Inc. | 12,014,080 | ||||||
137,900 | AmTrust Financial Services, Inc. | 3,956,351 | ||||||
251,000 | Aspen Insurance Holdings, Ltd. | 8,052,080 | ||||||
654,000 | Brookfield Office Properties, Inc. | 11,124,540 | ||||||
145,000 | Capital One Financial Corp. | 8,399,850 | ||||||
370,000 | CBL & Associates Properties, Inc., REIT | 7,847,700 | ||||||
40,000 | Coinstar, Inc. * | 2,080,400 | ||||||
100,000 | EZCORP, Inc., Class A* | 1,986,000 | ||||||
110,000 | FBL Financial Group, Inc., Class A | 3,763,100 | ||||||
996,000 | Fifth Third Bancorp | 15,129,240 | ||||||
90,000 | First Industrial Realty Trust, Inc., REIT* | 1,267,200 | ||||||
19,000 | Home Properties, Inc., REIT | 1,164,890 | ||||||
339,250 | JPMorgan Chase & Co. | 14,916,822 | ||||||
993,000 | KeyCorp | 8,361,060 | ||||||
36,000 | National Financial Partners Corp. * | 617,040 | ||||||
340,000 | Nelnet, Inc., Class A | 10,128,600 | ||||||
10,000 | PNC Financial Services Group, Inc. | 583,100 | ||||||
35,000 | Post Properties, Inc., REIT | 1,748,250 | ||||||
278,870 | Protective Life Corp. | 7,970,105 | ||||||
316,060 | Rent-A-Center, Inc. | 10,859,822 | ||||||
44,100 | Southside Bancshares, Inc. | 928,746 | ||||||
101,600 | Torchmark Corp. | 5,249,672 | ||||||
262,025 | Unum Group | 5,455,360 | ||||||
|
| |||||||
146,953,008 | ||||||||
|
| |||||||
Industrial-5.2% | ||||||||
17,000 | AGCO Corp. * | 835,040 | ||||||
117,800 | Amerco, Inc. | 14,938,218 |
See Notes to Financial Statements. | ||
Semi-Annual Report | December 31, 2012 | 9 |
Table of Contents
Schedule of Investments | James Balanced: Golden Rainbow Fund | |
December 31, 2012 (Unaudited) |
Shares or Principal Amount | Value | |||||||
Industrial (continued) | ||||||||
437,000 | American Axle & Manufacturing Holdings, Inc. * | $4,894,400 | ||||||
37,800 | Cascade Corp. | 2,430,540 | ||||||
25,000 | CNH Global NV | 1,007,250 | ||||||
63,000 | Cummins, Inc. | 6,826,050 | ||||||
3,500 | Deere & Co. | 302,470 | ||||||
71,000 | Eaton Corp. PLC | 3,848,200 | ||||||
60,400 | FedEx Corp. | 5,539,888 | ||||||
12,600 | Ingersoll-Rand PLC | 604,296 | ||||||
111,900 | Jarden Corp. | 5,785,230 | ||||||
100,000 | Littelfuse, Inc. | 6,171,000 | ||||||
26,000 | Magna International, Inc. | 1,300,520 | ||||||
49,605 | NACCO Industries, Inc., Class A | 3,010,528 | ||||||
8,000 | Republic Services, Inc. | 234,640 | ||||||
15,000 | Seaspan Corp. | 240,450 | ||||||
392,000 | Sturm Ruger & Co., Inc. | 17,796,800 | ||||||
120,000 | Timken Co. | 5,739,600 | ||||||
174,625 | TRW Automotive Holdings Corp. * | 9,361,646 | ||||||
|
| |||||||
90,866,766 | ||||||||
|
| |||||||
Technology-5.6% | ||||||||
348,000 | Amkor Technology, Inc. * | 1,479,000 | ||||||
150,000 | Arrow Electronics, Inc. * | 5,712,000 | ||||||
165,000 | Avnet, Inc. * | 5,050,650 | ||||||
431,910 | Deluxe Corp. | 13,924,779 | ||||||
41,000 | Equifax, Inc. | 2,218,920 | ||||||
326,000 | Intel Corp. | 6,725,380 | ||||||
77,500 | International Business Machines Corp. | 14,845,125 | ||||||
193,000 | Intersections, Inc. | 1,829,640 | ||||||
240,500 | Kulicke & Soffa Industries, Inc. * | 2,883,595 | ||||||
62,000 | Lexmark International, Inc., Class A | 1,437,780 | ||||||
17,000 | Lockheed Martin Corp. | 1,568,930 | ||||||
18,300 | Microsoft Corp. | 489,159 | ||||||
85,740 | Northrop Grumman Corp. | 5,794,309 | ||||||
25,000 | Photronics, Inc. * | 149,000 | ||||||
130,400 | SYNNEX Corp.* | 4,483,152 | ||||||
293,840 | Triumph Group, Inc. | 19,187,752 | ||||||
268,200 | Western Digital Corp. | 11,395,818 | ||||||
|
| |||||||
99,174,989 | ||||||||
|
| |||||||
Utilities-4.1% | ||||||||
144,500 | American Electric Power Co., Inc. | 6,167,260 | ||||||
320,500 | AT&T, Inc. | 10,804,055 | ||||||
464,000 | BCE, Inc. | 19,924,160 | ||||||
100,000 | Cleco Corp. | 4,001,000 | ||||||
112,840 | DTE Energy Co. | 6,776,042 | ||||||
112,000 | El Paso Electric Co. | 3,573,920 | ||||||
60,000 | Exelon Corp. | 1,784,400 | ||||||
31,200 | NorthWestern Corp. | 1,083,576 | ||||||
10,000 | OGE Energy Corp. | 563,100 | ||||||
49,100 | PG&E Corp. | 1,972,838 | ||||||
193,000 | PNM Resources, Inc. | 3,958,430 | ||||||
255,000 | Portland General Electric Co. | 6,976,800 |
See Notes to Financial Statements. | ||
10 | www.jamesfunds.com |
Table of Contents
James Balanced: Golden Rainbow Fund | Schedule of Investments | |
December 31, 2012 (Unaudited) |
Shares or Principal Amount | Value | |||||||
Utilities (continued) | ||||||||
67,000 | TELUS Corp. | $4,364,380 | ||||||
|
| |||||||
71,949,961 | ||||||||
|
| |||||||
| TOTAL COMMON STOCKS (Cost $777,422,165) | 936,181,321 | ||||||
|
| |||||||
CLOSED-END FUNDS-0.1% | ||||||||
140,000 | Eaton Vance Risk-Managed Diversified Equity Income Fund | 1,460,200 | ||||||
11,500 | Nuveen Ohio Quality Income Municipal Fund, Inc. | 219,075 | ||||||
50,000 | Nuveen Premium Income Municipal Fund 2 | 760,000 | ||||||
|
| |||||||
| TOTAL CLOSED-END FUNDS (Cost $2,276,870) | 2,439,275 | ||||||
|
| |||||||
EXCHANGE TRADED FUNDS-1.6% | ||||||||
50,000 | iShares® Cohen & Steers Realty Majors Index Fund | 3,927,000 | ||||||
55,000 | iShares® MSCI Canada Index Fund | 1,562,000 | ||||||
15,000 | iShares® MSCI Germany Index Fund | 370,800 | ||||||
70,000 | iShares® MSCI Indonesia Investable Market Index Fund | 2,118,200 | ||||||
32,900 | iShares® MSCI New Zealand Investable Market Index Fund | 1,137,682 | ||||||
30,000 | iShares® MSCI Philippines Investable Market Index Fund | 1,036,500 | ||||||
64,540 | iShares® MSCI Poland Investable Market Index Fund | 1,911,675 | ||||||
338,000 | iShares® MSCI Singapore Index Fund | 4,627,220 | ||||||
12,000 | iShares® MSCI South Korea Index Fund | 760,320 | ||||||
70,000 | iShares® MSCI Switzerland Index Fund | 1,876,000 | ||||||
10,000 | iShares® S&P® National Municipal Bond Fund | 1,106,400 | ||||||
5,000 | iShares® Silver Trust Index Fund* | 146,750 | ||||||
122,900 | SPDR® Nuveen Barclays Capital Short Term Municipal Bond ETF | 2,987,699 | ||||||
146,450 | SPDR® S&P® Homebuilders ETF | 3,895,570 | ||||||
|
| |||||||
| TOTAL EXCHANGE TRADED FUNDS (Cost $25,996,229) | 27,463,816 | ||||||
|
| |||||||
PREFERRED STOCKS-0.0%(a) | ||||||||
Financial-0.0%(a) | ||||||||
8,000 | General Electric Capital Corp., 6.000%(b) | 208,800 | ||||||
|
| |||||||
| TOTAL PREFERRED STOCKS (Cost $197,406) | 208,800 | ||||||
|
| |||||||
CORPORATE BONDS-11.0% | ||||||||
Basic Materials-0.7% | ||||||||
$5,000,000 | BHP Billiton Finance USA, Ltd., 1.000%, 2/24/15 | 5,036,725 | ||||||
5,000,000 | E.I. du Pont de Nemours & Co., 2.750%, 4/1/16 | 5,276,305 | ||||||
1,500,000 | E.I. du Pont de Nemours & Co., 5.750%, 3/15/19 | 1,825,435 | ||||||
|
| |||||||
12,138,465 | ||||||||
|
| |||||||
Communications-0.3% | ||||||||
5,000,000 | BellSouth Corp., 5.200%, 9/15/14 | 5,370,580 | ||||||
|
| |||||||
Consumer, Cyclical-0.8% | ||||||||
5,000,000 | eBay, Inc., 2.600%, 7/15/22 | 5,045,395 | ||||||
5,000,000 | The Home Depot, Inc., 5.950%, 4/1/41 | 6,731,335 | ||||||
785,000 | McDonald’s Corp., 5.700%, 2/1/39 | 1,022,177 |
See Notes to Financial Statements. | ||
Semi-Annual Report | December 31, 2012 | 11 |
Table of Contents
Schedule of Investments | James Balanced: Golden Rainbow Fund | |
December 31, 2012 (Unaudited) |
Shares or Principal Amount | Value | |||||||
Consumer, Cyclical (continued) | ||||||||
$2,000,000 | Wal-Mart Stores, Inc., 5.250%, 9/1/35 | $2,423,082 | ||||||
|
| |||||||
15,221,989 | ||||||||
|
| |||||||
Consumer, Non-cyclical-1.5% | ||||||||
5,000,000 | Colgate-Palmolive Co., 3.150%, 8/5/15 | 5,333,165 | ||||||
3,000,000 | The Hershey Co., 4.125%, 12/1/20 | 3,431,226 | ||||||
5,475,000 | Johnson & Johnson, 4.500%, 9/1/40 | 6,383,160 | ||||||
5,000,000 | PepsiCo, Inc., 0.800%, 8/25/14 | 5,026,090 | ||||||
5,465,000 | Wyeth LLC, 5.500%, 2/15/16 | 6,240,566 | ||||||
|
| |||||||
26,414,207 | ||||||||
|
| |||||||
Energy-1.6% | ||||||||
5,000,000 | Apache Corp., 3.250%, 4/15/22 | 5,293,215 | ||||||
5,000,000 | BP Capital Markets PLC, 3.245%, 5/6/22 | 5,261,590 | ||||||
5,000,000 | Occidental Petroleum Corp., 1.750%, 2/15/17 | 5,125,550 | ||||||
5,050,000 | Shell International Finance BV, 2.375%, 8/21/22 | 5,067,544 | ||||||
5,000,000 | Shell International Finance BV, 6.375%, 12/15/38 | 7,005,230 | ||||||
|
| |||||||
27,753,129 | ||||||||
|
| |||||||
Financial-2.8% | ||||||||
5,000,000 | Aflac, Inc., 2.650%, 2/15/17 | 5,254,465 | ||||||
5,000,000 | Bank of America Corp., 5.100%, 4/27/16(c) | 4,906,000 | ||||||
5,000,000 | Berkshire Hathaway, Inc., 3.750%, 8/15/21 | 5,502,055 | ||||||
5,000,000 | Citigroup, Inc., 4.450%, 1/10/17 | 5,537,355 | ||||||
4,000,000 | General Electric Capital Corp., 0.811%, 2/6/14(d) | 4,005,504 | ||||||
2,000,000 | General Electric Capital Corp., 6.875%, 1/10/39 | 2,711,386 | ||||||
5,000,000 | Morgan Stanley & Co., 3.450%, 11/2/15 | 5,209,125 | ||||||
5,000,000 | Morgan Stanley & Co., 4.750%, 3/22/17 | 5,453,125 | ||||||
5,000,000 | National City Corp., 4.900%, 1/15/15 | 5,391,090 | ||||||
5,000,000 | UBS AG, 5.875%, 12/20/17 | 5,949,205 | ||||||
|
| |||||||
49,919,310 | ||||||||
|
| |||||||
Industrial-0.5% | ||||||||
1,000,000 | Caterpillar, Inc., 7.900%, 12/15/18 | 1,355,919 | ||||||
1,000,000 | Caterpillar, Inc., 8.250%, 12/15/38 | 1,690,997 | ||||||
5,000,000 | United Technologies Corp., 3.100%, 6/1/22 | 5,288,880 | ||||||
|
| |||||||
8,335,796 | ||||||||
|
| |||||||
Technology-2.2% | ||||||||
8,000,000 | Google, Inc., 3.625%, 5/19/21 | 8,893,624 | ||||||
5,000,000 | Hewlett-Packard Co., 3.750%, 12/1/20 | 4,839,910 | ||||||
5,000,000 | Intel Corp., 3.300%, 10/1/21 | 5,296,165 | ||||||
3,000,000 | International Business Machines Corp., 1.950%, 7/22/16 | 3,116,955 | ||||||
7,000,000 | International Business Machines Corp., 1.875%, 8/1/22 | 6,727,952 | ||||||
3,700,000 | Microsoft Corp., 5.200%, 6/1/39 | 4,514,285 | ||||||
5,000,000 | Oracle Corp., 2.500%, 10/15/22 | 5,038,945 | ||||||
|
| |||||||
38,427,836 | ||||||||
|
| |||||||
Utilities-0.6% | ||||||||
5,000,000 | Florida Power Corp., 5.800%, 9/15/17 | 5,978,590 | ||||||
4,600,000 | San Diego Gas & Electric Co., 3.000%, 8/15/21 | 4,865,093 | ||||||
|
| |||||||
10,843,683 | ||||||||
|
| |||||||
| TOTAL CORPORATE BONDS
(Cost $187,614,216) | 194,424,995 | ||||||
|
|
See Notes to Financial Statements. | ||
12 | www.jamesfunds.com |
Table of Contents
James Balanced: Golden Rainbow Fund | Schedule of Investments | |
December 31, 2012 (Unaudited) |
Shares or Principal Amount | Value | |||||||
| MORTGAGE BACKED SECURITIES-1.5% | |||||||
Federal National Mortgage Association-1.0% | ||||||||
$4,025,652 | 3.000%, 3/1/27, Pool #AB4726 | $4,254,736 | ||||||
4,610,335 | 3.000%, 4/1/27, Pool #AB4927 | 4,908,712 | ||||||
7,627,189 | 4.500%, 9/1/40, Pool #MA0547 | 8,074,829 | ||||||
|
| |||||||
17,238,277 | ||||||||
|
| |||||||
Government National Mortgage Association-0.5% | ||||||||
8,003,640 | 4.000%, 12/20/40, Pool #4882 | 8,782,178 | ||||||
|
| |||||||
| TOTAL MORTGAGE BACKED SECURITIES (Cost $25,025,318) | 26,020,455 | ||||||
|
| |||||||
U.S. GOVERNMENT AGENCIES-3.0% | ||||||||
Federal Farm Credit Bank-0.8% | ||||||||
15,000,000 | 0.390%, 6/12/14 | 15,000,345 | ||||||
|
| |||||||
Federal Government Loan Mortgage Corporation-0.3% | ||||||||
4,483,725 | 3.500%, 5/1/42 | 4,781,485 | ||||||
|
| |||||||
Federal Home Loan Bank-1.1% | ||||||||
5,000,000 | 1.600%, 10/22/20 | 4,994,960 | ||||||
5,000,000 | 1.250%, 7/25/22 (c) | 5,003,555 | ||||||
10,000,000 | 2.430%, 10/11/22 | 10,005,780 | ||||||
|
| |||||||
20,004,295 | ||||||||
|
| |||||||
Federal Home Loan Mortgage Corporation-0.5% | ||||||||
7,819,025 | 3.000%, 11/1/26 | 8,222,518 | ||||||
|
| |||||||
United States Department of Housing and Urban Development-0.3% | ||||||||
5,000,000 | 2.050%, 8/1/19 | 5,263,110 | ||||||
|
| |||||||
| TOTAL U.S. GOVERNMENT AGENCIES (Cost $52,699,896) | 53,271,753 | ||||||
|
| |||||||
U.S. TREASURY BONDS & NOTES-21.5% | ||||||||
U.S. Treasury Bonds-0.7% | ||||||||
10,000,000 | 3.500%, 2/15/39 | 11,264,060 | ||||||
|
| |||||||
U.S. Treasury Inflation Indexed Notes-4.0% | ||||||||
15,749,525 | 2.500%, 7/15/16 | 18,094,724 | ||||||
29,260,505 | 1.625%, 1/15/18 | 33,921,616 | ||||||
16,048,062 | 1.375%, 1/15/20 | 19,014,450 | ||||||
|
| |||||||
71,030,790 | ||||||||
|
| |||||||
U.S. Treasury Notes-16.8% | ||||||||
34,300,000 | 3.875%, 2/15/13 | 34,454,075 | ||||||
40,000,000 | 2.625%, 12/31/14 | 41,887,520 | ||||||
20,000,000 | 2.000%, 1/31/16 | 20,987,500 | ||||||
35,000,000 | 1.000%, 9/30/16 | 35,656,250 | ||||||
58,000,000 | 4.625%, 2/15/17 | 67,588,096 | ||||||
70,000,000 | 2.750%, 2/15/19 | 77,459,340 | ||||||
15,000,000 | 3.500%, 5/15/20 | 17,403,510 | ||||||
|
| |||||||
295,436,291 | ||||||||
|
| |||||||
| TOTAL U.S. TREASURY BONDS & NOTES (Cost $352,539,018) | 377,731,141 | ||||||
|
|
See Notes to Financial Statements. | ||
Semi-Annual Report | December 31, 2012 | 13 |
Table of Contents
Schedule of Investments | James Balanced: Golden Rainbow Fund | |
December 31, 2012 (Unaudited) |
Shares or Principal Amount | Value | |||||||
| FOREIGN BONDS-3.0% | |||||||
Australia Government-0.7% | ||||||||
AUD 10,000,000 | 5.250%, 3/15/19 | $11,737,022 | ||||||
|
| |||||||
Canada Government-0.6% | ||||||||
CAD 5,000,000 | 3.750%, 6/1/19 | 5,698,603 | ||||||
CAD 5,000,000 | 3.500%, 6/1/20 | 5,679,300 | ||||||
|
| |||||||
11,377,903 | ||||||||
|
| |||||||
International Bank for Reconstruction and Development-0.3% | ||||||||
TRY 8,000,000 | 9.000%, 1/25/13 | 4,490,709 | ||||||
|
| |||||||
Netherlands Government-0.3% | ||||||||
EUR 3,000,000 | 4.000%, 7/15/19 | 4,731,672 | ||||||
|
| |||||||
Norway Government-0.2% | ||||||||
NOK 21,000,000 | 4.500%, 5/22/19 | 4,405,607 | ||||||
|
| |||||||
Queensland Treasury Corp.-0.3% | ||||||||
AUD 5,000,000 | 6.000%, 10/14/15 | 5,601,857 | ||||||
|
| |||||||
Sweden Government-0.6% | ||||||||
SEK 52,000,000 | 5.000%, 12/1/20 | 10,130,675 | ||||||
|
| |||||||
| TOTAL FOREIGN BONDS (Cost $46,059,355) | 52,475,445 | ||||||
|
| |||||||
| MUNICIPAL BONDS-3.0% | |||||||
California-0.0%(a) | ||||||||
$ 1,000,000 | Citrus Community College District General Obligation Unlimited Bonds, Series B,4.750%, 6/1/31 | 1,116,810 | ||||||
|
| |||||||
Colorado-0.1% | ||||||||
1,000,000 | Adams County School District No. 14 General Obligation Unlimited Bonds, 5.000%, 12/1/26 | 1,129,520 | ||||||
|
| |||||||
Connecticut-0.4% | ||||||||
5,350,000 | State of Connecticut, Series B, 5.000%, 11/1/25 | 6,502,390 | ||||||
|
| |||||||
Florida-0.1% | ||||||||
1,000,000 | Florida State Board of Education Capital Outlay General Obligation Bonds, Series D, 5.000%, 6/1/38 | 1,155,890 | ||||||
|
| |||||||
Georgia-0.2% | ||||||||
3,000,000 | State of Georgia General Obligation Unlimited Bonds, Series B, 4.500%, 1/1/29 | 3,489,600 | ||||||
|
| |||||||
Illinois-0.1% | ||||||||
500,000 | Kane & DeKalb Counties Community Unit School District No. 302 Kaneland General Obligation Unlimited Bonds (School Building), 5.500%, 2/1/28 | 550,515 | ||||||
1,000,000 | Village of Bolingbrook General Obligation Unlimited Bonds, 5.000%, 1/1/37 | 1,079,080 | ||||||
|
| |||||||
1,629,595 | ||||||||
|
| |||||||
Massachusetts-0.1% | ||||||||
1,000,000 | Commonwealth of Massachusetts General Obligation Limited Bonds, Series C, 5.250%, 8/1/22 | 1,183,190 | ||||||
|
|
See Notes to Financial Statements. | ||
14 | www.jamesfunds.com |
Table of Contents
James Balanced: Golden Rainbow Fund | Schedule of Investments | |
December 31, 2012 (Unaudited) |
Shares or Principal Amount | Value | |||||||
Michigan-0.0%(a) | ||||||||
$1,000,000 | Marysville Public School District General Obligation Unlimited Bonds (School Building & Site), 5.000%, 5/1/32 | $1,075,470 | ||||||
|
| |||||||
Ohio-0.8% | ||||||||
4,620,000 | Columbus City School District Taxable Facilities & Improvement Build America Bonds, Series B, 6.150%, 12/1/33 | 5,069,249 | ||||||
1,100,000 | Miamisburg City School District General Obligation Unlimited Bonds (School Facilities Construction & Improvement), 5.000%, 12/1/33 | 1,272,392 | ||||||
500,000 | Mount Healthy City School District General Obligation Unlimited Bonds (School Improvement), 5.000%, 12/1/26 | 565,015 | ||||||
1,000,000 | Ohio State University General Recipients Revenue Bonds, 4.910%, 6/1/40 | 1,181,260 | ||||||
1,000,000 | Ohio State University General Recipients Revenue Bonds, Series A, 5.000%, 12/1/28 | 1,179,200 | ||||||
500,000 | Springboro Community City School District General Obligation Unlimited Bonds, 5.250%, 12/1/23 | 632,740 | ||||||
1,000,000 | State of Ohio General Obligation Unlimited Bonds, Series A, 5.375%, 9/1/28 | 1,195,480 | ||||||
2,000,000 | State of Ohio General Obligation Unlimited Bonds, Series B, 5.000%, 2/1/22 | 2,101,020 | ||||||
1,000,000 | Wright State University Revenue Bonds, 4.000%, 5/1/18 | 1,117,680 | ||||||
|
| |||||||
14,314,036 | ||||||||
|
| |||||||
Texas-0.6% | ||||||||
1,000,000 | Friendswood Independent School District General Obligation Unlimited Bonds (Schoolhouse), 5.000%, 2/15/37 | 1,139,900 | ||||||
1,000,000 | Judson Independent School District General Obligation Unlimited Bonds (School Building), 5.000%, 2/1/37 | 1,118,910 | ||||||
500,000 | Lamar Consolidated Independent School District General Obligation Unlimited Bonds (Schoolhouse), 5.000%, 2/15/38 | 563,795 | ||||||
5,335,000 | Port of Houston Authority General Obligation Unlimited Bonds, Series D-1, 5.000%, 10/1/35 | 6,272,413 | ||||||
1,000,000 | Tyler Independent School District General Obligation Unlimited Bonds (School Building), 5.000%, 2/15/34 | 1,107,130 | ||||||
|
| |||||||
10,202,148 | ||||||||
|
| |||||||
Washington-0.3% | ||||||||
5,000,000 | State of Washington General Obligation Unlimited Bonds, Series D, 4.000%, 2/1/37 | 5,280,500 | ||||||
|
| |||||||
Wisconsin-0.3% | ||||||||
5,000,000 | State of Wisconsin General Obligation Unlimited Bonds, Series C, 5.000%, 5/1/25 | 6,076,500 | ||||||
|
| |||||||
| TOTAL MUNICIPAL BONDS (Cost $49,455,330) | 53,155,649 | ||||||
|
| |||||||
SHORT TERM INVESTMENTS-2.5% | ||||||||
43,292,718 | First American Government Obligations Fund, 7-Day Yield 0.016% | 43,292,718 | ||||||
|
| |||||||
| TOTAL SHORT TERM INVESTMENTS (Cost $43,292,718) | 43,292,718 | ||||||
|
| |||||||
| TOTAL INVESTMENT SECURITIES-100.4% (Cost $1,562,578,521) | 1,766,665,368 | ||||||
OTHER LIABILITIES IN EXCESS OF ASSETS-(0.4)% | (6,467,016 | ) | ||||||
|
| |||||||
NET ASSETS-100.0% | $1,760,198,352 | |||||||
|
|
Percentages shown are based on Net Assets. The classifications shown on the Schedule of Investments are unaudited.
See Notes to Financial Statements. | ||
Semi-Annual Report | December 31, 2012 | 15 |
Table of Contents
Schedule of Investments | James Balanced: Golden Rainbow Fund | |
December 31, 2012 (Unaudited) |
* | Non-income producing security. |
(a) | Less than 0.05% of Net Assets |
(b) | Fair valued security. |
(c) | Step bond. Coupon increases periodically based upon a predetermined schedule. Interest rate disclosed is that which is in effect at December 31, 2012. |
(d) | Variable rate security. Interest rate disclosed is that which is in effect at December 31, 2012. |
AG - Aktiengesellschaft is a German term that refers to a corporation that is limited by shares, i.e., owned by the shareholders
AUD - Australian Dollar
BV - Besloten Vennootschap is the Dutch term for private limited liability company
CAD - Canadian Dollar
ETF - Exchange Traded Fund
EUR - Euro
LLC - Limited Liability Company
LP - Limited Partnership
Ltd. - Limited
MSCI - Morgan Stanley Capital International
NOK - Norwegian Krone
NV - Naamloze Vennootschap is the Dutch term for a public limited liability corporation
PLC - Public Limited Company
REIT - Real Estate Investment Trust
S&P - Standard & Poor’s
SEK - Swedish Krona
SPDR - Standard & Poor’s Depositary Receipts
Foreign Bonds Securities Allocation | ||
% of Net Assets | ||
Asia - Pacific | 1.0% | |
Europe | 0.8% | |
Europe - Euro | 0.6% | |
North America | 0.6% | |
| ||
3.0% | ||
|
See Notes to Financial Statements. | ||
16 | www.jamesfunds.com |
Table of Contents
James Small Cap Fund | Schedule of Investments | |
December 31, 2012 (Unaudited) |
Shares | Value | |||||||
COMMON STOCKS-96.0% | ||||||||
Basic Materials-5.2% | ||||||||
23,920 | A Schulman, Inc. | $692,006 | ||||||
33,965 | Aceto Corp. | 341,009 | ||||||
23,375 | Innophos Holdings, Inc. | 1,086,937 | ||||||
68,855 | Innospec, Inc. | 2,374,809 | ||||||
54,906 | Material Sciences Corp.* | 495,801 | ||||||
22,194 | Neenah Paper, Inc. | 631,863 | ||||||
63,720 | PH Glatfelter Co. | 1,113,826 | ||||||
|
| |||||||
6,736,251 | ||||||||
|
| |||||||
Consumer, Cyclical-14.6% | ||||||||
50,250 | 1-800-Flowers.com, Inc., Class A* | 184,417 | ||||||
113,370 | The Cato Corp., Class A | 3,109,739 | ||||||
26,500 | Destination Maternity Corp. | 571,340 | ||||||
73,510 | Dorman Products, Inc. | 2,597,843 | ||||||
13,520 | Flexsteel Industries, Inc. | 290,004 | ||||||
40,720 | Fred’s, Inc., Class A | 541,983 | ||||||
8,740 | Kona Grill, Inc.* | 75,776 | ||||||
390,045 | LeapFrog Enterprises, Inc.* | 3,366,088 | ||||||
58,145 | Luby’s, Inc.* | 388,990 | ||||||
247,650 | Myers Industries, Inc. | 3,751,898 | ||||||
37,830 | PC Connection, Inc. | 435,045 | ||||||
30,245 | Rocky Brands, Inc.* | 393,790 | ||||||
176,725 | Sinclair Broadcast Group, Inc., Class A | 2,230,270 | ||||||
13,530 | Susser Holdings Corp.* | 466,650 | ||||||
39,825 | Town Sports International Holdings, Inc. | 424,136 | ||||||
|
| |||||||
18,827,969 | ||||||||
|
| |||||||
Consumer, Non-cyclical-9.2% | ||||||||
12,765 | Alico, Inc. | 467,582 | ||||||
49,340 | Carriage Services, Inc. | 585,666 | ||||||
44,280 | Elizabeth Arden, Inc.* | 1,993,043 | ||||||
109,195 | LifePoint Hospitals, Inc.* | 4,122,111 | ||||||
9,195 | Nature’s Sunshine Products, Inc. | 133,144 | ||||||
22,050 | Pozen, Inc.* | 110,470 | ||||||
64,235 | Sciclone Pharmaceuticals, Inc.* | 276,853 | ||||||
98,100 | The Toro Co. | 4,216,338 | ||||||
|
| |||||||
11,905,207 | ||||||||
|
| |||||||
Energy-9.7% | ||||||||
11,220 | Adams Resources & Energy, Inc. | 393,485 | ||||||
113,960 | Delek US Holdings, Inc. | 2,885,467 | ||||||
143,225 | EPL Oil & Gas, Inc.* | 3,229,724 | ||||||
18,275 | Mitcham Industries, Inc.* | 249,088 | ||||||
84,390 | Sunoco Logistics Partners LP | 4,196,715 | ||||||
51,273 | TGC Industries, Inc. | 419,926 | ||||||
30,940 | Transmontaigne Partners LP | 1,174,792 | ||||||
|
| |||||||
12,549,197 | ||||||||
|
| |||||||
Financial-15.4% | ||||||||
7,040 | Allied World Assurance Co. Holdings AG | 554,752 | ||||||
2,438 | Altisource Asset Management Corp.* | 199,875 | ||||||
24,375 | Altisource Portfolio Solutions SA* | 2,112,216 | ||||||
8,125 | Altisource Residential Corp., Class B* | 128,700 |
See Notes to Financial Statements. | ||
Semi-Annual Report | December 31, 2012 | 17 |
Table of Contents
Schedule of Investments | James Small Cap Fund | |
December 31, 2012 (Unaudited) |
Shares | Value | |||||||
Financial (continued) | ||||||||
124,660 | American Financial Group, Inc. | $4,926,563 | ||||||
8,600 | BofI Holding, Inc.* | 239,682 | ||||||
27,270 | Coinstar, Inc.* | 1,418,313 | ||||||
17,235 | ePlus, Inc. | 712,495 | ||||||
14,540 | Federal Agricultural Mortgage Corp., Class C | 472,550 | ||||||
10,753 | Homeowners Choice, Inc. | 223,555 | ||||||
39,090 | MainSource Financial Group, Inc. | 495,270 | ||||||
32,360 | National Financial Partners Corp.* | 554,650 | ||||||
16,305 | Nicholas Financial, Inc. | 202,182 | ||||||
24,960 | Peoples Bancorp, Inc. | 509,933 | ||||||
133,645 | Rent-A-Center, Inc. | 4,592,042 | ||||||
43,475 | Southside Bancshares, Inc. | 915,584 | ||||||
20,920 | World Acceptance Corp.* | 1,559,795 | ||||||
|
| |||||||
19,818,157 | ||||||||
|
| |||||||
Industrial-13.8% | ||||||||
81,145 | Alamo Group, Inc. | 2,648,573 | ||||||
28,410 | Amerco, Inc. | 3,602,672 | ||||||
25,975 | Ballantyne Strong, Inc.* | 85,717 | ||||||
34,380 | Celadon Group, Inc.* | 621,247 | ||||||
24,925 | Franklin Electric Co., Inc. | 1,549,587 | ||||||
15,785 | Park-Ohio Holdings Corp.* | 336,378 | ||||||
12,485 | Standex International Corp. | 640,356 | ||||||
42,407 | StealthGas, Inc.* | 336,287 | ||||||
166,247 | Sturm Ruger & Co., Inc. | 7,547,614 | ||||||
19,264 | UFP Technologies, Inc.* | 345,211 | ||||||
|
| |||||||
17,713,642 | ||||||||
|
| |||||||
Technology-12.7% | ||||||||
12,000 | Aware, Inc. | 65,760 | ||||||
31,225 | BioDelivery Sciences International, Inc.* | 134,580 | ||||||
34,452 | CalAmp Corp.* | 286,641 | ||||||
142,525 | Deluxe Corp. | 4,595,006 | ||||||
95,190 | Kulicke & Soffa Industries, Inc.* | 1,141,328 | ||||||
88,731 | Lionbridge Technologies, Inc.* | 356,699 | ||||||
197,345 | Mentor Graphics Corp.* | 3,358,812 | ||||||
27,450 | Online Resources Corp.* | 62,311 | ||||||
13,850 | Rudolph Technologies, Inc.* | 186,282 | ||||||
24,650 | SMTC Corp.* | 59,406 | ||||||
10,970 | Tessco Technologies, Inc. | 242,876 | ||||||
87,150 | Triumph Group, Inc. | 5,690,895 | ||||||
10,250 | Zygo Corp.* | 160,925 | ||||||
|
| |||||||
16,341,521 | ||||||||
|
| |||||||
Utilities-15.4% | ||||||||
40,800 | Cbeyond, Inc.* | 368,832 | ||||||
115,550 | Cleco Corp. | 4,623,156 | ||||||
143,445 | El Paso Electric Co. | 4,577,330 | ||||||
56,140 | The Laclede Group, Inc. | 2,167,565 | ||||||
65,995 | NorthWestern Corp. | 2,292,006 | ||||||
93,120 | PNM Resources, Inc. | 1,909,891 | ||||||
130,635 | Portland General Electric Co. | 3,574,174 | ||||||
8,894 | Shenandoah Telecommunications Co. | 136,167 |
See Notes to Financial Statements. | ||
18 | www.jamesfunds.com |
Table of Contents
James Small Cap Fund | Schedule of Investments | |
December 31, 2012 (Unaudited) |
Shares | Value | |||||||
Utilities (continued) | ||||||||
81,850 | Vonage Holdings Corp.* | $193,985 | ||||||
|
| |||||||
19,843,106 | ||||||||
|
| |||||||
| TOTAL COMMON STOCKS (Cost $98,402,016) | 123,735,050 | ||||||
|
| |||||||
| SHORT TERM INVESTMENTS-5.7% | |||||||
7,279,345 | First American Government Obligations Fund, 7-Day Yield 0.016% | 7,279,345 | ||||||
|
| |||||||
| TOTAL SHORT TERM INVESTMENTS (Cost $7,279,345) | 7,279,345 | ||||||
|
| |||||||
| TOTAL INVESTMENT SECURITIES-101.7% (Cost $105,681,361) | 131,014,395 | ||||||
OTHER LIABILITIES IN EXCESS OF ASSETS-(1.7)% | (2,195,876) | |||||||
|
| |||||||
NET ASSETS-100.0% | $128,818,519 | |||||||
|
|
Percentages shown are based on Net Assets. The classifications shown on the Schedule of Investments are unaudited.
* | Non-income producing security. |
AG - Aktiengesellschaft is a German term that refers to a corporation that is limited by shares, i.e., owned by the shareholders
LP - Limited Partnership
SA - Generally designates corporations in various countries, mostly those employing the civil law
See Notes to Financial Statements. | ||
Semi-Annual Report | December 31, 2012 | 19 |
Table of Contents
Schedule of Investments | James Mid Cap Fund | |
December 31, 2012 (Unaudited) |
Shares | Value | |||||||
| COMMON STOCKS-93.5% | |||||||
Basic Materials-11.0% | ||||||||
7,500 | Buckeye Technologies, Inc. | $215,325 | ||||||
2,500 | Cabot Corp. | 99,475 | ||||||
4,125 | Domtar Corp. | 344,520 | ||||||
5,150 | FMC Corp. | 301,378 | ||||||
1,000 | NewMarket Corp. | 262,200 | ||||||
15,500 | PolyOne Corp. | 316,510 | ||||||
|
| |||||||
1,539,408 | ||||||||
|
| |||||||
Consumer, Cyclical-11.6% | ||||||||
8,250 | Alaska Air Group, Inc.* | 355,492 | ||||||
3,000 | Dillard’s, Inc., Class A | 251,310 | ||||||
12,000 | Dollar Tree, Inc.* | 486,720 | ||||||
6,500 | Foot Locker, Inc. | 208,780 | ||||||
15,000 | KB Home | 237,000 | ||||||
10,000 | RR Donnelley & Sons Co. | 90,000 | ||||||
|
| |||||||
1,629,302 | ||||||||
|
| |||||||
Consumer, Non-cyclical-14.3% | ||||||||
4,125 | Ingredion, Inc. | 265,774 | ||||||
10,325 | LifePoint Hospitals, Inc.* | 389,769 | ||||||
10,000 | Newell Rubbermaid, Inc. | 222,700 | ||||||
75 | Seaboard Corp. | 189,741 | ||||||
6,400 | The Toro Co. | 275,072 | ||||||
7,225 | Tupperware Brands Corp. | 463,122 | ||||||
10,325 | Tyson Foods, Inc., Class A | 200,305 | ||||||
|
| |||||||
2,006,483 | ||||||||
|
| |||||||
Energy-9.6% | ||||||||
2,600 | Diamond Offshore Drilling, Inc. | 176,696 | ||||||
8,250 | HollyFrontier Corp. | 384,038 | ||||||
10,000 | Stone Energy Corp.* | 205,200 | ||||||
9,300 | Tesoro Corp. | 409,665 | ||||||
4,125 | World Fuel Services Corp. | 169,826 | ||||||
|
| |||||||
1,345,425 | ||||||||
|
| |||||||
Financial-14.8% | ||||||||
8,775 | American Financial Group, Inc. | 346,788 | ||||||
8,000 | Aspen Insurance Holdings, Ltd. | 256,640 | ||||||
12,900 | Brookfield Office Properties, Inc. | 219,429 | ||||||
4,125 | Home Properties, Inc., REIT | 252,904 | ||||||
11,350 | Nelnet, Inc., Class A | 338,116 | ||||||
6,825 | Protective Life Corp. | 195,059 | ||||||
13,425 | Rent-A-Center, Inc. | 461,283 | ||||||
|
| |||||||
2,070,219 | ||||||||
|
| |||||||
Industrial-13.6% | ||||||||
7,225 | AGCO Corp.* | 354,892 | ||||||
3,000 | Amerco, Inc. | 380,430 | ||||||
7,750 | Jarden Corp. | 400,675 | ||||||
6,700 | Timken Co. | 320,461 | ||||||
8,250 | TRW Automotive Holdings Corp.* | 442,282 | ||||||
|
| |||||||
1,898,740 | ||||||||
|
|
See Notes to Financial Statements. | ||
20 | www.jamesfunds.com |
Table of Contents
James Mid Cap Fund | Schedule of Investments | |
December 31, 2012 (Unaudited) |
Shares | Value | |||||||
Technology-10.3% | ||||||||
34,525 | Amkor Technology, Inc.* | $146,731 | ||||||
7,750 | Arrow Electronics, Inc.* | 295,120 | ||||||
3,500 | Cirrus Logic, Inc.* | 101,395 | ||||||
13,950 | Deluxe Corp. | 449,748 | ||||||
25,500 | LSI Corp.* | 180,540 | ||||||
4,125 | Triumph Group, Inc. | 269,363 | ||||||
|
| |||||||
1,442,897 | ||||||||
|
| |||||||
Utilities-8.3% | ||||||||
15,550 | CMS Energy Corp. | 379,109 | ||||||
4,975 | DTE Energy Co. | 298,749 | ||||||
6,000 | NorthWestern Corp. | 208,380 | ||||||
8,000 | Portland General Electric Co. | 218,880 | ||||||
25,825 | Vonage Holdings Corp.* | 61,205 | ||||||
|
| |||||||
1,166,323 | ||||||||
|
| |||||||
| TOTAL COMMON STOCKS (Cost $10,248,645) | 13,098,797 | ||||||
|
| |||||||
EXCHANGE TRADED FUNDS-1.8% | ||||||||
3,100 | iShares® Cohen & Steers Realty Majors Index Fund | 243,474 | ||||||
|
| |||||||
| TOTAL EXCHANGE TRADED FUNDS (Cost $217,509) | 243,474 | ||||||
|
| |||||||
SHORT TERM INVESTMENTS-4.7% | ||||||||
665,043 | First American Government Obligations Fund, 7-Day Yield 0.016% | 665,043 | ||||||
|
| |||||||
| TOTAL SHORT TERM INVESTMENTS (Cost $665,043) | 665,043 | ||||||
|
| |||||||
| TOTAL INVESTMENT SECURITIES-100.0% (Cost $11,131,197) | 14,007,314 | ||||||
OTHER LIABILITIES IN EXCESS OF ASSETS-0.0%(a) | (1,292) | |||||||
|
| |||||||
NET ASSETS-100.0% | $14,006,022 | |||||||
|
|
Percentages shown are based on Net Assets. The classifications shown on the Schedule of Investments are unaudited.
* | Non-income producing security. |
(a) | Less than 0.05% of Net Assets |
REIT - Real Estate Investment Trust
See Notes to Financial Statements. | ||
Semi-Annual Report | December 31, 2012 | 21 |
Table of Contents
Schedule of Investments | James Micro Cap Fund | |
December 31, 2012 (Unaudited) |
Shares | Value | |||||||
COMMON STOCKS-92.4% | ||||||||
Basic Materials-9.7% | ||||||||
26,220 | Aceto Corp. | $263,249 | ||||||
34,277 | Material Sciences Corp.* | 309,521 | ||||||
15,085 | Neenah Paper, Inc. | 429,470 | ||||||
|
| |||||||
1,002,240 | ||||||||
|
| |||||||
Consumer, Cyclical-17.4% | ||||||||
31,340 | 1-800-Flowers.com, Inc., Class A* | 115,018 | ||||||
8,425 | Flexsteel Industries, Inc. | 180,716 | ||||||
11,880 | Kona Grill, Inc.* | 103,000 | ||||||
39,520 | Luby’s, Inc.* | 264,389 | ||||||
25,715 | PC Connection, Inc. | 295,722 | ||||||
18,853 | Rocky Brands, Inc.* | 245,466 | ||||||
9,202 | Susser Holdings Corp.* | 317,377 | ||||||
27,060 | Town Sports International Holdings, Inc. | 288,189 | ||||||
|
| |||||||
1,809,877 | ||||||||
|
| |||||||
Consumer, Non-cyclical-10.0% | ||||||||
8,680 | Alico, Inc. | 317,948 | ||||||
30,781 | Carriage Services, Inc. | 365,370 | ||||||
5,760 | Nature’s Sunshine Products, Inc. | 83,405 | ||||||
19,200 | Pozen, Inc.* | 96,192 | ||||||
40,060 | Sciclone Pharmaceuticals, Inc.* | 172,659 | ||||||
|
| |||||||
1,035,574 | ||||||||
|
| |||||||
Energy-5.7% | ||||||||
7,620 | Adams Resources & Energy, Inc. | 267,234 | ||||||
2,757 | Mitcham Industries, Inc.* | 37,578 | ||||||
34,849 | TGC Industries, Inc. | 285,413 | ||||||
|
| |||||||
590,225 | ||||||||
|
| |||||||
Financial-21.5% | ||||||||
7,580 | BofI Holding, Inc.* | 211,254 | ||||||
16,490 | ePlus, Inc. | 681,697 | ||||||
9,880 | Federal Agricultural Mortgage Corp., Class C | 321,100 | ||||||
10,128 | Homeowners Choice, Inc. | 210,561 | ||||||
26,560 | MainSource Financial Group, Inc. | 336,515 | ||||||
10,202 | Nicholas Financial, Inc. | 126,505 | ||||||
16,960 | Peoples Bancorp, Inc. | 346,493 | ||||||
|
| |||||||
2,234,125 | ||||||||
|
| |||||||
Industrial-13.0% | ||||||||
16,200 | Ballantyne Strong, Inc.* | 53,460 | ||||||
9,860 | Park-Ohio Holdings Corp.* | 210,116 | ||||||
8,485 | Standex International Corp. | 435,196 | ||||||
31,598 | StealthGas, Inc.* | 250,572 | ||||||
4,130 | Sturm Ruger & Co., Inc. | 187,502 | ||||||
12,004 | UFP Technologies, Inc.* | 215,112 | ||||||
|
| |||||||
1,351,958 | ||||||||
|
| |||||||
Technology-10.7% | ||||||||
7,900 | Aware, Inc. | 43,292 | ||||||
26,175 | BioDelivery Sciences International, Inc.* | 112,814 |
See Notes to Financial Statements. | ||
22 | www.jamesfunds.com |
Table of Contents
James Micro Cap Fund | Schedule of Investments | |
December 31, 2012 (Unaudited) |
Shares | Value | |||||||
Technology (continued) | ||||||||
26,592 | CalAmp Corp.* | $221,245 | ||||||
58,701 | Lionbridge Technologies, Inc.* | 235,978 | ||||||
18,075 | Online Resources Corp.* | 41,030 | ||||||
11,400 | Rudolph Technologies, Inc.* | 153,330 | ||||||
16,250 | SMTC Corp.* | 39,163 | ||||||
7,245 | Tessco Technologies, Inc. | 160,404 | ||||||
6,775 | Zygo Corp.* | 106,368 | ||||||
|
| |||||||
1,113,624 | ||||||||
|
| |||||||
Utilities-4.4% | ||||||||
26,875 | Cbeyond, Inc.* | 242,950 | ||||||
6,050 | Shenandoah Telecommunications Co. | 92,625 | ||||||
51,040 | Vonage Holdings Corp.* | 120,965 | ||||||
|
| |||||||
456,540 | ||||||||
|
| |||||||
| TOTAL COMMON STOCKS (Cost $8,049,925) | 9,594,163 | ||||||
|
| |||||||
SHORT TERM INVESTMENTS-7.4% | ||||||||
773,773 | First American Government Obligations Fund, 7-Day Yield 0.016% | 773,773 | ||||||
|
| |||||||
| TOTAL SHORT TERM INVESTMENTS (Cost $773,773) | 773,773 | ||||||
|
| |||||||
| TOTAL INVESTMENT SECURITIES-99.8% (Cost $8,823,698) | 10,367,936 | ||||||
OTHER ASSETS IN EXCESS OF LIABILITIES-0.2% | 21,892 | |||||||
|
| |||||||
NET ASSETS-100.0% | $10,389,828 | |||||||
|
|
Percentages shown are based on Net Assets. The classifications shown on the Schedule of Investments are unaudited.
* | Non-income producing security. |
See Notes to Financial Statements. | ||
Semi-Annual Report | December 31, 2012 | 23 |
Table of Contents
Schedule of Investments | James Long-Short Fund | |
December 31, 2012 (Unaudited) |
Shares | Value | |||||||
COMMON STOCKS-96.2% | ||||||||
Basic Materials-7.2% | ||||||||
10,690 | Aceto Corp. | $107,327 | ||||||
12,560 | Buckeye Technologies, Inc. | 360,598 | ||||||
500 | CF Industries Holdings, Inc. | 101,580 | ||||||
465 | Terra Nitrogen Co. LP | 99,552 | ||||||
|
| |||||||
669,057 | ||||||||
|
| |||||||
Consumer, Cyclical-13.4% | ||||||||
3,380 | Alaska Air Group, Inc.* | 145,644 | ||||||
3,510 | Dillard’s, Inc., Class A | 294,033 | ||||||
5,380 | KB Home | 85,004 | ||||||
10,070 | LeapFrog Enterprises, Inc.* | 86,904 | ||||||
16,975 | Sinclair Broadcast Group, Inc., Class A | 214,224 | ||||||
1,775 | Target Corp. | 105,027 | ||||||
2,500 | Viacom, Inc., Class A | 135,675 | ||||||
2,635 | Wal-Mart Stores, Inc. | 179,786 | ||||||
|
| |||||||
1,246,297 | ||||||||
|
| |||||||
Consumer, Non-cyclical-15.5% | ||||||||
6,585 | Eli Lilly & Co. | 324,772 | ||||||
2,340 | Merck & Co., Inc. | 95,800 | ||||||
12,945 | Pfizer, Inc. | 324,661 | ||||||
6,450 | The Toro Co. | 277,221 | ||||||
6,260 | UnitedHealth Group, Inc. | 339,542 | ||||||
2,450 | USANA Health Sciences, Inc.* | 80,678 | ||||||
|
| |||||||
1,442,674 | ||||||||
|
| |||||||
Energy-14.1% | ||||||||
970 | Apache Corp. | 76,145 | ||||||
2,445 | Chevron Corp. | 264,403 | ||||||
19,355 | Flotek Industries, Inc.* | 236,131 | ||||||
6,955 | HollyFrontier Corp. | 323,755 | ||||||
19,780 | Parker Drilling Co.* | 90,988 | ||||||
7,225 | Tesoro Corp. | 318,261 | ||||||
|
| |||||||
1,309,683 | ||||||||
|
| |||||||
Financial-13.3% | ||||||||
3,220 | Brookfield Office Properties, Inc. | 54,772 | ||||||
1,365 | Capital One Financial Corp. | 79,074 | ||||||
3,490 | CBL & Associates Properties, Inc., REIT | 74,023 | ||||||
18,350 | Fifth Third Bancorp | 278,737 | ||||||
2,530 | JPMorgan Chase & Co. | 111,244 | ||||||
13,670 | KeyCorp | 115,101 | ||||||
3,820 | PNC Financial Services Group, Inc. | 222,744 | ||||||
6,365 | Protective Life Corp. | 181,912 | ||||||
5,776 | Southside Bancshares, Inc. | 121,643 | ||||||
|
| |||||||
1,239,250 | ||||||||
|
| |||||||
Industrial-11.0% | ||||||||
2,500 | AGCO Corp.* | 122,800 | ||||||
1,230 | Amerco, Inc. | 155,976 | ||||||
2,835 | Cascade Corp. | 182,290 | ||||||
750 | NACCO Industries, Inc., Class A | 45,518 | ||||||
7,595 | Sturm Ruger & Co., Inc. | 344,813 |
See Notes to Financial Statements. | ||
24 | www.jamesfunds.com |
Table of Contents
James Long-Short Fund | Schedule of Investments | |
December 31, 2012 (Unaudited) |
Shares | Value | |||||||
Industrial (continued) | ||||||||
1,485 | Timken Co. | $71,028 | ||||||
2,000 | TRW Automotive Holdings Corp.* | 107,220 | ||||||
|
| |||||||
1,029,645 | ||||||||
|
| |||||||
Technology-12.0% | ||||||||
8,175 | Deluxe Corp. | 263,562 | ||||||
14,595 | Kulicke & Soffa Industries, Inc.* | 174,994 | ||||||
1,585 | Lockheed Martin Corp. | 146,280 | ||||||
810 | Northrop Grumman Corp. | 54,740 | ||||||
7,005 | Symantec Corp.* | 131,764 | ||||||
3,185 | Triumph Group, Inc. | 207,980 | ||||||
3,240 | Western Digital Corp. | 137,668 | ||||||
|
| |||||||
1,116,988 | ||||||||
|
| |||||||
Utilities-9.7% | ||||||||
5,075 | AT&T, Inc. | 171,078 | ||||||
2,125 | DTE Energy Co. | 127,607 | ||||||
6,365 | PNM Resources, Inc. | 130,546 | ||||||
11,400 | Portland General Electric Co. | 311,904 | ||||||
67,165 | Vonage Holdings Corp.* | 159,181 | ||||||
|
| |||||||
900,316 | ||||||||
|
| |||||||
| TOTAL COMMON STOCKS (Cost $7,927,543) | 8,953,910 | ||||||
|
| |||||||
EXCHANGE TRADED FUNDS-1.1% | ||||||||
3,940 | SPDR® S&P® Homebuilders ETF | 104,804 | ||||||
|
| |||||||
| TOTAL EXCHANGE TRADED FUNDS (Cost $103,699) | 104,804 | ||||||
|
| |||||||
SHORT TERM INVESTMENTS-8.0% | ||||||||
744,376 | First American Government Obligations Fund, 7-Day Yield 0.016% | 744,376 | ||||||
|
| |||||||
| TOTAL SHORT TERM INVESTMENTS (Cost $744,376) | 744,376 | ||||||
|
| |||||||
| TOTAL INVESTMENT SECURITIES-105.3% (Cost $8,775,618) | 9,803,090 | ||||||
OTHER LIABILITIES IN EXCESS OF ASSETS-(5.3)% | (492,626) | |||||||
|
| |||||||
NET ASSETS-100.0% | $9,310,464 | |||||||
|
|
Percentages shown are based on Net Assets. The classifications shown on the Schedule of Investments are unaudited.
* | Non-income producing security. |
ETF - Exchange Traded Fund
LP - Limited Partnership
REIT - Real Estate Investment Trust
S&P - Standard & Poor’s
SPDR - Standard & Poor’s Depositary Receipts
See Notes to Financial Statements. | ||
Semi-Annual Report | December 31, 2012 | 25 |
Table of Contents
Statements of Assets and Liabilities | James Advantage Funds | |
December 31, 2012 (Unaudited) |
James Balanced: Golden Rainbow Fund | James Small Cap Fund | James Mid Cap Fund | James Micro Cap Fund | James Long-Short Fund | ||||||||||||||||
| ||||||||||||||||||||
ASSETS: | ||||||||||||||||||||
Investment securities: | ||||||||||||||||||||
At cost | $ | 1,562,578,521 | $ | 105,681,361 | $ | 11,131,197 | $ | 8,823,698 | $ | 8,775,618 | ||||||||||
|
| |||||||||||||||||||
At value | $ | 1,766,665,368 | $ | 131,014,395 | $ | 14,007,314 | $ | 10,367,936 | $ | 9,803,090 | ||||||||||
Cash | 209,076 | 27,719 | 1,535 | 17,343 | 351 | |||||||||||||||
Dividends and interest receivable | 7,661,067 | 88,317 | 12,626 | 703 | 8,329 | |||||||||||||||
Receivable for capital shares sold | 2,314,448 | 1,315,219 | 1,922 | 16,667 | – | |||||||||||||||
Other assets | 75,230 | – | – | – | – | |||||||||||||||
| ||||||||||||||||||||
Total Assets | 1,776,925,189 | 132,445,650 | 14,023,397 | 10,402,649 | 9,811,770 | |||||||||||||||
| ||||||||||||||||||||
LIABILITIES: | ||||||||||||||||||||
Payable due for segregated cash with brokers | – | – | – | – | 485,353 | |||||||||||||||
Payable for interest expense | – | – | – | – | 4,294 | |||||||||||||||
Payable for capital shares redeemed | 2,216,528 | 260,582 | – | 20 | – | |||||||||||||||
Payable for securities purchased | 12,941,115 | 3,204,627 | – | – | – | |||||||||||||||
Accrued expenses: | ||||||||||||||||||||
Management fees | 1,023,401 | 134,364 | 14,460 | 12,794 | 9,701 | |||||||||||||||
12b-1 distribution and service fees | 286,868 | 26,978 | 2,902 | – | 1,949 | |||||||||||||||
Trustees’ fees | 1,491 | 580 | 13 | 7 | 9 | |||||||||||||||
Other payables | 257,434 | – | – | – | – | |||||||||||||||
| ||||||||||||||||||||
Total Liabilities | 16,726,837 | 3,627,131 | 17,375 | 12,821 | 501,306 | |||||||||||||||
| ||||||||||||||||||||
Net Assets | $ | 1,760,198,352 | $ | 128,818,519 | $ | 14,006,022 | $ | 10,389,828 | $ | 9,310,464 | ||||||||||
| ||||||||||||||||||||
NET ASSETS CONSIST OF: |
| |||||||||||||||||||
Paid-in capital | $ | 1,543,100,966 | $ | 147,562,897 | $ | 11,290,358 | $ | 9,782,689 | $ | 9,258,696 | ||||||||||
Accumulated net investment income/(loss) | 958,024 | (12,770 | ) | 46,102 | 40,640 | 98 | ||||||||||||||
Accumulated net realized gain/(loss) on investments, securities sold short and translation of assets and liabilities denominated in foreign currency | 12,041,838 | (44,064,642 | ) | (206,555 | ) | (977,739 | ) | (975,802 | ) | |||||||||||
Net unrealized appreciation on investments, securities sold short and translation of assets and liabilities denominated in foreign currency | 204,097,524 | 25,333,034 | 2,876,117 | 1,544,238 | 1,027,472 | |||||||||||||||
| ||||||||||||||||||||
Net Assets | $ | 1,760,198,352 | $ | 128,818,519 | $ | 14,006,022 | $ | 10,389,828 | $ | 9,310,464 | ||||||||||
| ||||||||||||||||||||
|
See Notes to Financial Statements. | ||
26 | www.jamesfunds.com |
Table of Contents
James Advantage Funds | Statements of Assets and Liabilities | |
December 31, 2012 (Unaudited) |
James Balanced: Golden Rainbow Fund | James Small Cap Fund | James Mid Cap Fund | James Micro Cap Fund | James Long-Short Fund | ||||||||||||||||
| ||||||||||||||||||||
PRICING OF RETAIL CLASS SHARES(a): | ||||||||||||||||||||
Net assets | $ | 1,361,169,785 | $ | 128,818,519 | $ | 14,006,022 | $ | 10,389,828 | $ | 9,310,464 | ||||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par) | 62,752,005 | 5,225,672 | 1,194,426 | 888,703 | 899,334 | |||||||||||||||
| ||||||||||||||||||||
Net assets value, offering price and redemption price per share | $ | 21.69 | $ | 24.65 | $ | 11.73 | $ | 11.69 | $ | 10.35 | ||||||||||
| ||||||||||||||||||||
PRICING OF INSTITUTIONAL CLASS SHARES: | ||||||||||||||||||||
Net assets | $ | 399,028,567 | N/A | N/A | N/A | N/A | ||||||||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par) | 18,510,703 | N/A | N/A | N/A | N/A | |||||||||||||||
| ||||||||||||||||||||
Net assets value, offering price and redemption price per share | $ | 21.56 | N/A | N/A | N/A | N/A | ||||||||||||||
| ||||||||||||||||||||
|
(a) | James Small Cap Fund, James Mid Cap Fund, James Micro Cap Fund, and James Long-Short Fund do not have a share class and will be presented as Retail Class shares throughout this semi-annual report for financial reporting presentation purposes only. |
See Notes to Financial Statements. | ||
Semi-Annual Report | December 31, 2012 | 27 |
Table of Contents
Statements of Operations | James Advantage Funds | |
For the Six Months Ended December 31, 2012 (Unaudited) |
James Balanced: Golden Rainbow Fund | James Small Cap Fund | James Mid Cap Fund | James Micro Cap Fund | James Long-Short Fund | ||||||||||||||||
| ||||||||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||||||
Dividends (Net of withholding taxes of $130,986, $5,478, $542, $3,428 and $678, respectively) | $ | 15,260,117 | $ | 2,940,438 | $ | 186,585 | $ | 240,170 | $ | 204,950 | ||||||||||
Interest | 9,772,675 | – | – | – | – | |||||||||||||||
| ||||||||||||||||||||
Total Investment Income | 25,032,792 | 2,940,438 | 186,585 | 240,170 | 204,950 | |||||||||||||||
| ||||||||||||||||||||
EXPENSES: | ||||||||||||||||||||
Management fees | 5,795,737 | 811,798 | 83,094 | 77,116 | 57,417 | |||||||||||||||
12b-1 distribution and service fees - Retail Class | 1,645,815 | 163,031 | 16,675 | – | 11,523 | |||||||||||||||
Dividend and interest expense on securities sold short | – | – | – | – | 51,324 | |||||||||||||||
Administration fee | 502,182 | – | – | – | – | |||||||||||||||
Interest expense | – | – | – | – | 8,793 | |||||||||||||||
Custodian fees | 67,871 | – | – | – | – | |||||||||||||||
Professional fees | 83,218 | – | – | – | – | |||||||||||||||
Trustee fees | 35,237 | 3,377 | 283 | 217 | 201 | |||||||||||||||
Registration fees | 87,991 | – | – | – | – | |||||||||||||||
Shareholder report printing and mailing | 61,632 | – | – | – | – | |||||||||||||||
Other expenses | 35,498 | – | – | – | – | |||||||||||||||
| ||||||||||||||||||||
Total Expenses | 8,315,181 | 978,206 | 100,052 | 77,333 | 129,258 | |||||||||||||||
| ||||||||||||||||||||
Net Investment Income | 16,717,611 | 1,962,232 | 86,533 | 162,837 | 75,692 | |||||||||||||||
| ||||||||||||||||||||
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS: |
| |||||||||||||||||||
Net realized gain/(loss) from: | ||||||||||||||||||||
Investments | 24,588,009 | (502,609 | ) | (5,693 | ) | 8,939 | 34,356 | |||||||||||||
Securities sold short | – | – | – | – | (289,927 | ) | ||||||||||||||
Foreign currency transaction | (497,875 | ) | – | – | – | – | ||||||||||||||
Net change in unrealized appreciation/(depreciation) on investments | 44,097,336 | 5,321,230 | 1,215,332 | (90,232 | ) | 477,610 | ||||||||||||||
Net change in unrealized appreciation on securities sold short | – | – | – | – | 61,910 | |||||||||||||||
Net change in unrealized appreciation on foreign currency translation | 19,279 | – | – | – | – | |||||||||||||||
| ||||||||||||||||||||
Net Realized and Unrealized Gain/(Loss) on Investments | 68,206,749 | 4,818,621 | 1,209,639 | (81,293 | ) | 283,949 | ||||||||||||||
| ||||||||||||||||||||
Net Increase in Net Assets Resulting from Operations | $ | 84,924,360 | $ | 6,780,853 | $ | 1,296,172 | $ | 81,544 | $ | 359,641 | ||||||||||
| ||||||||||||||||||||
|
See Notes to Financial Statements. | ||
28 | www.jamesfunds.com |
Table of Contents
James Balanced: Golden Rainbow Fund | Statements of Changes in Net Assets | |
For the Six Months Ended December 31, 2012 (Unaudited) | For the Year Ended June 30, 2012 | |||||||
FROM OPERATIONS: | ||||||||
Net investment income | $ | 16,717,611 | $ | 17,230,048 | ||||
Net realized gain/(loss) from investments and foreign currency transactions | 24,090,134 | (595,416 | ) | |||||
Net change in unrealized appreciation on investments and foreign currency translation | 44,116,615 | 36,098,881 | ||||||
| ||||||||
Net Increase in net assets resulting from operations | 84,924,360 | 52,733,513 | ||||||
| ||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||
Retail Class: | ||||||||
From net investment income | (11,722,091 | ) | (12,661,724 | ) | ||||
From net realized gain on investments | (9,278,084 | ) | (15,647,688 | ) | ||||
Institutional Class: | ||||||||
From net investment income | (4,101,825 | ) | (3,948,993 | ) | ||||
From net realized gain on investments | (2,721,986 | ) | (2,791,260 | ) | ||||
| ||||||||
Decrease in net assets from distributions to shareholders | (27,823,986 | ) | (35,049,665 | ) | ||||
| ||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||
Retail Class Shares: | ||||||||
Proceeds from shares sold | 204,299,572 | 604,816,423 | ||||||
Net asset value of shares issued in reinvestment of distributions to shareholders | 19,844,643 | 26,684,112 | ||||||
Payments for shares redeemed | (157,943,626 | ) | (335,396,377 | ) | ||||
| ||||||||
Net Increase in net assets from Retail Class capital share transactions | 66,200,589 | 296,104,158 | ||||||
| ||||||||
Institutional Class Shares: | ||||||||
Proceeds from shares sold | 109,539,357 | 204,374,890 | ||||||
Net asset value of shares issued in reinvestment of distributions to shareholders | 3,676,716 | 3,955,677 | ||||||
Payments for shares redeemed | (30,276,933 | ) | (36,726,831 | ) | ||||
| ||||||||
Net Increase in net assets from Institutional Class capital share transactions | 82,939,140 | 171,603,736 | ||||||
| ||||||||
Total Increase in Net Assets | 206,240,103 | 485,391,742 | ||||||
| ||||||||
NET ASSETS: | ||||||||
Beginning of period | 1,553,958,249 | 1,068,566,507 | ||||||
| ||||||||
End of period | $ | 1,760,198,352 | $ | 1,553,958,249 | ||||
| ||||||||
Accumulated Net Investment Income | $ | 958,024 | $ | 64,329 |
See Notes to Financial Statements. | ||
Semi-Annual Report | December 31, 2012 | 29 |
Table of Contents
Statements of Changes in Net Assets | James Balanced: Golden Rainbow Fund | |
For the Six Months Ended December 31, 2012 (Unaudited) | For the Year Ended June 30, 2012 | |||||||
SUMMARY OF CAPITAL SHARE ACTIVITY: | ||||||||
Retail Class Shares: | ||||||||
Shares sold | 9,481,168 | 29,231,626 | ||||||
Shares issued in reinvestment of distributions to shareholders | 918,170 | 1,304,568 | ||||||
Shares redeemed | (7,330,625 | ) | (16,248,512 | ) | ||||
| ||||||||
Net Increase in shares outstanding | 3,068,713 | 14,287,682 | ||||||
| ||||||||
Shares outstanding, beginning of period | 59,683,292 | 45,395,610 | ||||||
| ||||||||
Shares outstanding, end of period | 62,752,005 | 59,683,292 | ||||||
| ||||||||
Institutional Class Shares: | ||||||||
Shares sold | 5,114,098 | 9,870,813 | ||||||
Shares issued in reinvestment of distributions to shareholders | 171,122 | 193,157 | ||||||
Shares redeemed | (1,414,585 | ) | (1,774,556 | ) | ||||
| ||||||||
Net Increase in shares outstanding | 3,870,635 | 8,289,414 | ||||||
| ||||||||
Shares outstanding, beginning of period | 14,640,068 | 6,350,654 | ||||||
| ||||||||
Shares outstanding, end of period | 18,510,703 | 14,640,068 | ||||||
|
See Notes to Financial Statements. | ||
30 | www.jamesfunds.com |
Table of Contents
James Small Cap Fund | Statements of Changes in Net Assets | |
For the Six Months Ended December 31, 2012 | For the Year Ended June 30, 2012 | |||||||
FROM OPERATIONS: | ||||||||
Net investment income | $ | 1,962,232 | $ | 744,697 | ||||
Net realized gain/(loss) from investments | (502,609 | ) | 4,787,214 | |||||
Net change in unrealized appreciation/(depreciation) on investments | 5,321,230 | (2,924,326 | ) | |||||
| ||||||||
Net Increase in net assets resulting from operations | 6,780,853 | 2,607,585 | ||||||
| ||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||
Retail Class: | ||||||||
From net investment income | (2,605,548 | ) | (159,992 | ) | ||||
| ||||||||
Decrease in net assets from distributions to shareholders | (2,605,548 | ) | (159,992 | ) | ||||
| ||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||
Retail Class Shares: | ||||||||
Proceeds from shares sold | 18,057,432 | 134,731,715 | ||||||
Net asset value of shares issued in reinvestment of distributions to shareholders | 2,207,916 | 148,116 | ||||||
Payments for shares redeemed | (30,349,174 | ) | (84,105,197 | ) | ||||
| ||||||||
Net Increase/(Decrease) in net assets from Retail Class capital share transactions | (10,083,826 | ) | 50,774,634 | |||||
| ||||||||
Total Increase/(Decrease) in Net Assets | (5,908,521 | ) | 53,222,227 | |||||
| ||||||||
NET ASSETS: | ||||||||
Beginning of period | 134,727,040 | 81,504,813 | ||||||
| ||||||||
End of period | $ | 128,818,519 | $ | 134,727,040 | ||||
| ||||||||
Accumulated Net Investment Income/(Loss) | $ | (12,770 | ) | $ | 630,546 | |||
SUMMARY OF CAPITAL SHARE ACTIVITY: | ||||||||
Retail Class Shares: | ||||||||
Shares sold | 741,851 | 5,809,465 | ||||||
Shares issued in reinvestment of distributions to shareholders | 91,615 | 6,268 | ||||||
Shares redeemed | (1,247,067 | ) | (3,590,131 | ) | ||||
| ||||||||
Net Increase/(Decrease) in shares outstanding | (413,601 | ) | 2,225,602 | |||||
| ||||||||
Shares outstanding, beginning of period | 5,639,273 | 3,413,671 | ||||||
| ||||||||
Shares outstanding, end of period | 5,225,672 | 5,639,273 | ||||||
|
See Notes to Financial Statements. | ||
Semi-Annual Report | December 31, 2012 | 31 |
Table of Contents
Statements of Changes in Net Assets | James Mid Cap Fund | |
For the Six December 31, 2012 | For the Year Ended June 30, 2012 | |||||||
FROM OPERATIONS: | ||||||||
Net investment income | $ | 86,533 | $ | 40,374 | ||||
Net realized gain/(loss) from investments | (5,693 | ) | 322,442 | |||||
Net change in unrealized appreciation/(depreciation) on investments | 1,215,332 | (1,147,310 | ) | |||||
| ||||||||
Net Increase/(Decrease) in net assets resulting from operations | 1,296,172 | (784,494 | ) | |||||
| ||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||
Retail Class: | ||||||||
From net investment income | (39,999 | ) | (106,000 | ) | ||||
| ||||||||
Decrease in net assets from distributions to shareholders | (39,999 | ) | (106,000 | ) | ||||
| ||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||
Retail Class Shares: | ||||||||
Proceeds from shares sold | 1,397,633 | 1,692,640 | ||||||
Net asset value of shares issued in reinvestment of distributions to shareholders | 37,264 | 101,121 | ||||||
Payments for shares redeemed | (1,342,240 | ) | (1,649,016 | ) | ||||
| ||||||||
Net Increase in net assets from Retail Class capital share transactions | 92,657 | 144,745 | ||||||
| ||||||||
Total Increase/(Decrease) in Net Assets | 1,348,830 | (745,749 | ) | |||||
| ||||||||
NET ASSETS: | ||||||||
Beginning of period | 12,657,192 | 13,402,941 | ||||||
| ||||||||
End of period | $ | 14,006,022 | $ | 12,657,192 | ||||
| ||||||||
Accumulated Net Investment Income/(Loss) | $ | 46,102 | $ | (432 | ) | |||
SUMMARY OF CAPITAL SHARE ACTIVITY: | ||||||||
Retail Class Shares: | ||||||||
Shares sold | 125,817 | 156,783 | ||||||
Shares issued in reinvestment of distributions to shareholders | 3,238 | 9,640 | ||||||
Shares redeemed | (118,427 | ) | (160,582 | ) | ||||
| ||||||||
Net Increase in shares outstanding | 10,628 | 5,841 | ||||||
| ||||||||
Shares outstanding, beginning of period | 1,183,798 | 1,177,957 | ||||||
| ||||||||
Shares outstanding, end of period | 1,194,426 | 1,183,798 | ||||||
|
See Notes to Financial Statements. | ||
32 | www.jamesfunds.com |
Table of Contents
James Micro Cap Fund | Statements of Changes in Net Assets | |
For the Six Months Ended December 31, 2012 (Unaudited) | For the Year Ended June 30, 2012 | |||||||
| ||||||||
FROM OPERATIONS: | ||||||||
Net investment income/(loss) | $ | 162,837 | $ | (12,345 | ) | |||
Net realized gain/(loss) from investments | 8,939 | (983,050 | ) | |||||
Net change in unrealized appreciation/(depreciation) on investments | (90,232 | ) | 629,089 | |||||
| ||||||||
Net Increase/(Decrease) in net assets resulting from operations | 81,544 | (366,306 | ) | |||||
| ||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||
Retail Class: | ||||||||
From net investment income | (120,000 | ) | – | |||||
From net realized gain on investments | – | (40,981 | ) | |||||
| ||||||||
Decrease in net assets from distributions to shareholders | (120,000 | ) | (40,981 | ) | ||||
| ||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||
Retail Class Shares: | ||||||||
Proceeds from shares sold | 1,565,690 | 2,542,578 | ||||||
Net asset value of shares issued in reinvestment of distributions to shareholders | 111,984 | 40,846 | ||||||
Payments for shares redeemed, net of redemption fees | (1,422,203 | ) | (1,748,137 | ) | ||||
| ||||||||
Net Increase in net assets from Retail Class capital share transactions | 255,471 | 835,287 | ||||||
| ||||||||
Total Increase in Net Assets | 217,015 | 428,000 | ||||||
| ||||||||
NET ASSETS: | ||||||||
Beginning of period | 10,172,813 | 9,744,813 | ||||||
| ||||||||
End of period | $ | 10,389,828 | $ | 10,172,813 | ||||
| ||||||||
Accumulated Net Investment Income/(Loss) | $ | 40,640 | $ | (2,197 | ) | |||
SUMMARY OF CAPITAL SHARE ACTIVITY: | ||||||||
Retail Class Shares: | ||||||||
Shares sold | 133,675 | 220,196 | ||||||
Shares issued in reinvestment of distributions to shareholders | 9,780 | 3,928 | ||||||
Shares redeemed | (123,601 | ) | (173,160 | ) | ||||
| ||||||||
Net Increase in shares outstanding | 19,854 | 50,964 | ||||||
| ||||||||
Shares outstanding, beginning of period | 868,849 | 817,885 | ||||||
| ||||||||
Shares outstanding, end of period | 888,703 | 868,849 | ||||||
|
See Notes to Financial Statements. | ||
Semi-Annual Report | December 31, 2012 | 33 |
Table of Contents
Statements of Changes in Net Assets | James Long-Short Fund |
For the Six Months Ended December 31, 2012 (Unaudited) | For the Year Ended June 30, 2012 | |||||||
| ||||||||
FROM OPERATIONS: | ||||||||
Net investment income/(loss) | $ | 75,692 | $ | (36,630 | ) | |||
Net realized loss from investments | (255,571 | ) | (711,602 | ) | ||||
Net change in unrealized appreciation on investments and securities sold short | 539,520 | 383,024 | ||||||
| ||||||||
Net Increase/(Decrease) in net assets resulting from operations | 359,641 | (365,208 | ) | |||||
| ||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||
Retail Class: | ||||||||
From net investment income | (35,249 | ) | (12,000 | ) | ||||
| ||||||||
Decrease in net assets from distributions to shareholders | (35,249 | ) | (12,000 | ) | ||||
| ||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||
Retail Class Shares: | ||||||||
Proceeds from shares sold | 964,575 | 2,452,796 | ||||||
Net asset value of shares issued in reinvestment of distributions to shareholders | 34,844 | 12,000 | ||||||
Payments for shares redeemed | (1,172,911 | ) | (3,646,342 | ) | ||||
| ||||||||
Net Decrease in net assets from Retail Class capital share transactions | (173,492 | ) | (1,181,546 | ) | ||||
| ||||||||
Total Increase/(Decrease) in Net Assets | 150,900 | (1,558,754 | ) | |||||
| ||||||||
NET ASSETS: | ||||||||
Beginning of period | 9,159,564 | 10,718,318 | ||||||
| ||||||||
End of period | $ | 9,310,464 | $ | 9,159,564 | ||||
| ||||||||
Accumulated Net Investment Income/(Loss) | $ | 98 | $ | (40,345 | ) | |||
SUMMARY OF CAPITAL SHARE ACTIVITY: | ||||||||
Retail Class Shares: | ||||||||
Shares sold | 95,454 | 246,899 | ||||||
Shares issued in reinvestment of distributions to shareholders | 3,433 | 1,241 | ||||||
Shares redeemed | (116,641 | ) | (391,935 | ) | ||||
| ||||||||
Net Decrease in shares outstanding | (17,754 | ) | (143,795 | ) | ||||
| ||||||||
Shares outstanding, beginning of period | 917,088 | 1,060,883 | ||||||
| ||||||||
Shares outstanding, end of period | 899,334 | 917,088 | ||||||
|
See Notes to Financial Statements. | ||
34 | www.jamesfunds.com |
Table of Contents
James Long-Short Fund | Statement of Cash Flows | |
For the Six Months Ended December 31, 2012 (Unaudited) |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net increase in net assets resulting from operations | $ | 359,641 | ||
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided/(used) in operating activities | ||||
Purchases of investment securities | (4,093,122 | ) | ||
Proceeds from sale of investment securities | 4,651,717 | |||
Proceeds from securities sold short transactions | (12,624,556 | ) | ||
Purchases to cover securities sold short | 8,112,014 | |||
Net purchases from short-term investment securities | (485,585 | ) | ||
Net realized gain on investment securities | (34,356 | ) | ||
Net realized loss on securities sold short | 289,927 | |||
Net change in unrealized appreciation on investments | (477,610 | ) | ||
Net change in unrealized appreciation on securities sold short | (61,910 | ) | ||
Changes in assets and liabilities: | ||||
Decrease in deposit with broker for securities sold short | 4,085,139 | |||
Decrease in interest and dividends receivable | 4,482 | |||
Increase in payable for short sale dividends | (6,678 | ) | ||
Increase in payable for interest expense | 4,294 | |||
Increase in payable due for segregated cash with brokers | 485,353 | |||
Decrease in accrued expenses: management fees | (51 | ) | ||
Increase in accrued expenses: 12b-1 distribution and service fees | 89 | |||
Increase in accrued expenses: other payables | 9 | |||
|
| |||
Net cash provided in operating activities | 208,797 | |||
|
| |||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Proceeds from sale of shares | 964,575 | |||
Cost of shares redeemed | (1,172,911 | ) | ||
Cash distributions paid | (405 | ) | ||
|
| |||
Net cash used by financing activities | (208,741 | ) | ||
|
| |||
NET CHANGE IN CASH FOR THE PERIOD | 56 | |||
CASH, BEGINNING OF PERIOD | 295 | |||
|
| |||
CASH, END OF PERIOD | $ | 351 | ||
|
|
Non-cash financing activities not included herein consist of reinvestment of distributions of $34,844. Cash paid for interest during the period $4,505.
See Notes to Financial Statements. | ||
Semi-Annual Report | December 31, 2012 | 35 |
Table of Contents
Financial Highlights | James Balanced: Golden Rainbow Fund – Retail Class | |
For a share outstanding throughout the periods indicated. |
For the Six Months Ended | For the Year Ended | For the Year Ended June 30, 2011 | For the Year Ended June 30, 2010 | For the Year Ended June 30, 2009 | For the Year Ended June 30, 2008 | |||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value - beginning of period | $ | 20.93 | $ | 20.66 | $ | 18.32 | $ | 16.69 | $ | 18.09 | $ | 18.33 | ||||||||||||
Income/(Loss) from investment operations: |
| |||||||||||||||||||||||
Net investment income | 0.21 | 0.25 | 0.24 | 0.30 | 0.28 | 0.40 | ||||||||||||||||||
Net realized and unrealized gain/(loss) | 0.89 | 0.55 | 2.50 | 1.63 | (1.40) | 0.11 | ||||||||||||||||||
| ||||||||||||||||||||||||
Total from investment operations | 1.10 | 0.80 | 2.74 | 1.93 | (1.12) | 0.51 | ||||||||||||||||||
| ||||||||||||||||||||||||
Less distributions: | ||||||||||||||||||||||||
From net investment income | (0.19) | (0.23) | (0.24) | (0.30) | (0.28) | (0.40) | ||||||||||||||||||
From net realized gain on investments | (0.15) | (0.30) | (0.16) | – | (0.00) | (a) | (0.35) | |||||||||||||||||
| ||||||||||||||||||||||||
Total distributions | (0.34) | (0.53) | (0.40) | (0.30) | (0.28) | (0.75) | ||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value at end of period | $ | 21.69 | $ | 20.93 | $ | 20.66 | $ | 18.32 | $ | 16.69 | $ | 18.09 | ||||||||||||
| ||||||||||||||||||||||||
Total return | 5.27 | %(b) | 3.98 | % | 15.01 | % | 11.60 | % | (6.19) | % | 2.76 | % | ||||||||||||
Net assets, end of period (in thousands) | $ | 1,361,170 | $ | 1,249,228 | $ | 937,696 | $ | 572,484 | $ | 537,358 | $ | 478,694 | ||||||||||||
Ratios/Supplemental Data: |
| |||||||||||||||||||||||
Ratio of net expenses to average net assets | 1.05 | %(c) | 1.07 | % | 1.12 | % | 1.19 | % | 1.16 | % | 1.18 | % | ||||||||||||
Ratio of net investment income to average net assets | 1.93 | %(c) | 1.26 | % | 1.27 | % | 1.68 | % | 1.68 | % | 2.20 | % | ||||||||||||
Portfolio turnover rate | 25 | %(b) | 36 | % | 36 | % | 31 | % | 72 | % | 53 | % |
(a) | Amount rounds to less than $(0.005) per share. |
(b) | Not Annualized. |
(c) | Annualized. |
See Notes to Financial Statements. | ||
36 | www.jamesfunds.com |
Table of Contents
James Balanced: Golden Rainbow Fund – Institutional Class | Financial Highlights | |
For a share outstanding throughout the periods indicated. |
For the Six Months Ended | For the Year Ended June 30, 2012 | For the Year Ended June 30, 2011 | For the Year Ended June 30, 2010 | For the Period Ended June 30, 2009 (a) | ||||||||||||||||
| ||||||||||||||||||||
Net asset value - beginning of period | $ | 20.81 | $ | 20.61 | $ | 18.33 | $ | 16.69 | $ | 14.80 | ||||||||||
Income from investment operations: |
| |||||||||||||||||||
Net investment income | 0.24 | 0.33 | 0.32 | 0.34 | 0.09 | |||||||||||||||
Net realized and unrealized gain | 0.89 | 0.52 | 2.47 | 1.65 | 1.94 | |||||||||||||||
| ||||||||||||||||||||
Total from investment operations | 1.13 | 0.85 | 2.79 | 1.99 | 2.03 | |||||||||||||||
| ||||||||||||||||||||
Less distributions: |
| |||||||||||||||||||
From net investment income | (0.23) | (0.35) | (0.35) | (0.35) | (0.14) | |||||||||||||||
From net realized gain on investments | (0.15) | (0.30) | (0.16) | – | – | |||||||||||||||
| ||||||||||||||||||||
Total distributions | (0.38) | (0.65) | (0.51) | (0.35) | (0.14) | |||||||||||||||
| ||||||||||||||||||||
Net asset value at end of period | $ | 21.56 | $ | 20.81 | $ | 20.61 | $ | 18.33 | $ | 16.69 | ||||||||||
| ||||||||||||||||||||
Total return | 5.44 | %(b) | 4.22 | % | 15.27 | % | 11.94 | % | 13.75 | %(b) | ||||||||||
Net assets, end of period (in thousands) | $ | 399,029 | $ | 304,731 | $ | 130,870 | $ | 60,693 | $ | 115 | ||||||||||
Ratios/Supplemental Data: |
| |||||||||||||||||||
Ratio of net expenses to average net assets | 0.80 | %(c) | 0.82 | % | 0.87 | % | 1.06 | % | 0.95 | %(c) | ||||||||||
Ratio of net investment income to average net assets | 2.24 | %(c) | 1.52 | % | 1.52 | % | 2.06 | % | 1.63 | %(c) | ||||||||||
Portfolio turnover rate | 25 | %(b) | 36 | % | 36 | % | 31 | % | 72 | %(b) |
(a) | Share class commenced operations on March 2, 2009. |
(b) | Not Annualized. |
(c) | Annualized. |
See Notes to Financial Statements. | ||
Semi-Annual Report | December 31, 2012 | 37 |
Table of Contents
Financial Highlights | James Small Cap Fund | |
For a share outstanding throughout the periods indicated. |
For the Six Months Ended | For the June 30, 2012 | For the June 30, 2011 | For the June 30, 2010 | For the June 30, 2009 | For the June 30, 2008 | |||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value - beginning of period | $ | 23.89 | $ | 23.88 | $ | 17.51 | $ | 14.18 | $ | 20.04 | $ | 24.56 | ||||||||||||
Income/(Loss) from investment operations: |
| |||||||||||||||||||||||
Net investment income | 0.40 | 0.15 | 0.05 | 0.02 | 0.06 | 0.10 | ||||||||||||||||||
Net realized and unrealized gain/(loss) | 0.87 | (0.11) | 6.35 | 3.33 | (5.86) | (4.52) | ||||||||||||||||||
| ||||||||||||||||||||||||
Total from investment operations | 1.27 | 0.04 | 6.40 | 3.35 | (5.80) | (4.42) | ||||||||||||||||||
| ||||||||||||||||||||||||
Less distributions: |
| |||||||||||||||||||||||
From net investment income | (0.51) | (0.03) | (0.03) | – | (0.06) | (0.10) | ||||||||||||||||||
From net tax return of capital | – | – | – | (0.02) | – | – | ||||||||||||||||||
| ||||||||||||||||||||||||
Total distributions | (0.51) | (0.03) | (0.03) | (0.02) | (0.06) | (0.10) | ||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value at end of period | $ | 24.65 | $ | 23.89 | $ | 23.88 | $ | 17.51 | $ | 14.18 | $ | 20.04 | ||||||||||||
| ||||||||||||||||||||||||
Total return | 5.37 | %(a) | 0.16 | % | 36.59 | % | 23.61 | % | (28.91) | % | (18.03) | % | ||||||||||||
Net assets, end of period (in thousands) | $ | 128,819 | $ | 134,727 | $ | 81,505 | $ | 65,443 | $ | 99,801 | $ | 177,915 | ||||||||||||
Ratios/Supplemental Data: |
| |||||||||||||||||||||||
Ratio of net expenses to average net assets | 1.50 | %(b) | 1.50 | % | 1.50 | % | 1.50 | % | 1.50 | % | 1.50 | % | ||||||||||||
Ratio of net investment income to average net assets | 3.01 | %(b) | 0.58 | % | 0.23 | % | 0.08 | % | 0.37 | % | 0.42 | % | ||||||||||||
Portfolio turnover rate | 20 | %(a) | 89 | % | 60 | % | 38 | % | 46 | % | 54 | % |
(a) | Not Annualized. |
(b) | Annualized. |
See Notes to Financial Statements. | ||
38 | www.jamesfunds.com |
Table of Contents
James Mid Cap Fund | Financial Highlights | |
For a share outstanding throughout the periods indicated. |
For the Six Months Ended | For the Year Ended June 30, 2012 | For the Year Ended June 30, 2011 | For the Year Ended June 30, 2010 | For the Year Ended June 30, 2009 | For the Year Ended June 30, 2008 | |||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value - beginning of period | $ | 10.69 | $ | 11.38 | $ | 8.59 | $ | 7.05 | $ | 10.66 | $ | 11.70 | ||||||||||||
Income/(Loss) from investment operations: |
| |||||||||||||||||||||||
Net investment income | 0.07 | 0.04 | 0.01 | 0.02 | 0.03 | 0.00 | (a) | |||||||||||||||||
Net realized and unrealized gain/(loss) | 1.00 | (0.64) | 2.82 | 1.54 | (3.61) | (1.01) | ||||||||||||||||||
| ||||||||||||||||||||||||
Total from investment operations | 1.07 | (0.60) | 2.83 | 1.56 | (3.58) | (1.01) | ||||||||||||||||||
| ||||||||||||||||||||||||
Less distributions: |
| |||||||||||||||||||||||
From net investment income | (0.03) | (0.09) | (0.04) | (0.02) | (0.03) | (0.01) | ||||||||||||||||||
From net realized gain on investments | – | – | – | – | – | (0.02) | ||||||||||||||||||
| ||||||||||||||||||||||||
Total distributions | (0.03) | (0.09) | (0.04) | (0.02) | (0.03) | (0.03) | ||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value at end of period | $ | 11.73 | $ | 10.69 | $ | 11.38 | $ | 8.59 | $ | 7.05 | $ | 10.66 | ||||||||||||
| ||||||||||||||||||||||||
Total return | 10.05 | %(b) | (5.26) | % | 32.97 | % | 22.13 | % | (33.51) | % | (8.61) | % | ||||||||||||
Net assets, end of period (in thousands) | $ | 14,006 | $ | 12,657 | $ | 13,403 | $ | 9,497 | $ | 4,438 | $ | 6,002 | ||||||||||||
Ratios/Supplemental Data: |
| |||||||||||||||||||||||
Ratio of net expenses to average net assets | 1.50 | %(c) | 1.50 | % | 1.50 | % | 1.50 | % | 1.50 | % | 1.48 | % | ||||||||||||
Ratio of net investment income to average net assets | 1.30 | %(c) | 0.32 | % | 0.13 | % | 0.24 | % | 0.48 | % | 0.01 | % | ||||||||||||
Portfolio turnover rate | 8 | %(b) | 36 | % | 56 | % | 37 | % | 38 | % | 55 | % |
(a) | Amount rounds to less than $0.005 per share. |
(b) | Not Annualized. |
(c) | Annualized. |
See Notes to Financial Statements. | ||
Semi-Annual Report | December 31, 2012 | 39 |
Table of Contents
Financial Highlights | James Micro Cap Fund | |
For a share outstanding throughout the periods indicated. |
For the Six Months Ended | For the Year Ended June 30, 2012 | For the Year Ended June 30, 2011 (a) | ||||||||||
| ||||||||||||
Net asset value - beginning of period | $ | 11.71 | $ | 11.91 | $ | 10.00 | ||||||
Income/(Loss) from investment operations: | ||||||||||||
Net investment income/(loss) | 0.19 | (0.01) | (0.03) | |||||||||
Net realized and unrealized gain/(loss) | (0.07) | (0.13) | 1.94 | |||||||||
| ||||||||||||
Total from investment operations | 0.12 | (0.14) | 1.91 | |||||||||
| ||||||||||||
Less distributions: | ||||||||||||
From net investment income | (0.14) | – | – | |||||||||
From net realized gain on investments | – | (0.06) | – | |||||||||
| ||||||||||||
Total distributions | (0.14) | (0.06) | – | |||||||||
| ||||||||||||
Paid-in capital from redemption fees | – | 0.00 | (b) | – | ||||||||
| ||||||||||||
Net asset value at end of period | $ | 11.69 | $ | 11.71 | $ | 11.91 | ||||||
| ||||||||||||
Total return | 1.02% | (c) | (1.15)% | 19.10% | ||||||||
Net assets, end of period (in thousands) | $ | 10,390 | $ | 10,173 | $ | 9,745 | ||||||
Ratios/Supplemental Data: | ||||||||||||
Ratio of net expenses to average net assets | 1.50% | (d) | 1.50% | 1.50% | ||||||||
Ratio of net investment income/(loss) to average net assets | 3.16% | (d) | (0.14)% | (0.31)% | ||||||||
Portfolio turnover rate | 32% | (c) | 85 % | 69% |
(a) | Fund commenced operations on July 1, 2010. |
(b) | Amount rounds to less than $0.005 per share. |
(c) | Not Annualized. |
(d) | Annualized. |
See Notes to Financial Statements. | ||
40 | www.jamesfunds.com |
Table of Contents
James Long-Short Fund | Financial Highlights | |
For a share outstanding throughout the periods indicated. |
For the Six Months Ended | For the Year Ended June 30, 2012 | For the Period Ended June 30, 2011 (a) | ||||||||||
| ||||||||||||
Net asset value - beginning of period | $ | 9.99 | $ | 10.10 | $ | 10.00 | ||||||
Income/(Loss) from investment operations: | ||||||||||||
Net investment income/(loss) | 0.08 | (0.04) | (0.00) | (b) | ||||||||
Net realized and unrealized gain/(loss) | 0.32 | (0.05) | 0.10 | |||||||||
| ||||||||||||
Total from investment operations | 0.40 | (0.09) | 0.10 | |||||||||
| ||||||||||||
Less distributions: | ||||||||||||
From net investment income | (0.04) | (0.02) | – | |||||||||
| ||||||||||||
Total distributions | (0.04) | (0.02) | – | |||||||||
| ||||||||||||
Net asset value at end of period | $ | 10.35 | $ | 9.99 | $ | 10.10 | ||||||
| ||||||||||||
Total return | 4.01% | (c) | (0.93)% | 1.00% | (c) | |||||||
Net assets, end of period (in thousands) | $ | 9,310 | $ | 9,160 | $ | 10,718 | ||||||
Ratios/Supplemental Data: | ||||||||||||
Ratio of net expenses to average net assets(d) | 2.80% | (e) | 2.66% | 1.73% | (e) | |||||||
Ratio of net investment income/(loss) to average net assets | 1.64% | (e) | (0.44)% | (1.03)% | (e) | |||||||
Portfolio turnover rate | 44% | (c) | 159 % | 0% | (c) |
(a) | Fund commenced operations on May 23, 2011. |
(b) | Amount rounds to less than ($0.005) per share. |
(c) | Not Annualized. |
(d) | Dividend and interest expense on securities sold short and interest expense totaled 1.30% (annualized) , 1.15% and 0.23% (annualized) of average net assets for the six months ended December 31, 2012, for the year ended June 30, 2012 and for the period ended June 30, 2011, respectively. |
(e) | Annualized. |
See Notes to Financial Statements. | ||
Semi-Annual Report | December 31, 2012 | 41 |
Table of Contents
Notes to Financial Statements | James Advantage Funds | |
December 31, 2012 (Unaudited) |
1. | ORGANIZATION |
The 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 and James Mid Cap Fund are each a diversified series of the Trust, and James Micro Cap Fund and James Long-Short Fund are each a non-diversified series of the Trust (individually a “Fund,” collectively the “Funds”). James Balanced: Golden Rainbow Fund was originally organized as a series of the Flagship Admiral Funds Inc., a Maryland corporation. On June 26, 1998, pursuant to an Agreement and Plan of Reorganization, James Balanced: Golden Rainbow Fund was restructured through a tax-free reorganization as a series of the Trust. The James Small Cap Fund commenced its public offering of shares on October 2, 1998. The James Mid Cap Fund commenced its public offering of shares on June 30, 2006. Effective March 2, 2009, James Balanced: Golden Rainbow began offering a new class of shares: the Institutional Class. The initial class of shares is now referred to as the Retail Class. 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 entities that are approved by management of the Trust). The James Micro Cap Fund commenced its public offering of shares on July 1, 2010. The James Long-Short Fund commenced its public offering of shares on May 23, 2011.
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 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 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 Fund’s benchmark, the Russell 2000® Index.
James Mid Cap Fund seeks to provide long-term capital appreciation. The Fund seeks to achieve its objective by investing primarily in common stocks of mid capitalization companies. The Adviser defines mid capitalization companies as those with market capitalizations at the time of purchase as $1 billion to $8 billion.
James Micro Cap Fund seeks to provide long-term capital appreciation. The 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 $250 million.
James Long-Short Fund seeks to provide long-term capital appreciation. The Fund seeks to achieve its objective by investing primarily in foreign and domestic equity securities that the Adviser believes are undervalued and more likely to appreciate, and by selling short equity securities that the Adviser believes are overvalued and more likely to depreciate. The Fund also may take long positions in domestic and foreign fixed income securities that the Adviser believes are more likely to appreciate in the interest rate and spread environment anticipated by the Adviser, and short positions in fixed income securities that the Adviser believes are more likely to depreciate in the interest rate and spread environment anticipated by the Adviser. The Fund seeks to achieve positive returns on both the long positions and short positions that it takes in various securities.
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 (“GAAP”).
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. For the six months ended December 31, 2012, there were no redemption fees received by the James Micro Cap Fund.
Securities Valuation
Securities are valued at fair value. The Funds’ portfolio securities, including short positions, 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 and on any other day that the Fair Valuation Policy would dictate. 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’s 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
42 | www.jamesfunds.com |
Table of Contents
James Advantage Funds | Notes to Financial Statements | |
December 31, 2012 (Unaudited) |
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 Funds may use pricing services to determine market value for securities. Fixed income securities will be valued at evaluated prices provided by an independent, recognized pricing service, which determines valuations based upon market transactions for normal, institutional-size trading units of securities or a matrix method which considers yield or price of comparable bonds provided by a pricing service. 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. Short-term investments in fixed-income securities with maturities of less than 60 days when acquired, or which subsequently are within 60 days of maturity, are valued by using the amortized cost method of valuation, which the Board of Trustees has determined will approximate fair value. Shares of open-end investment companies are valued at net asset value.
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. In computing the net asset value of the Funds by the fund accounting service provider, ALPS Fund Services, Inc., 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.
The calculation of the share price of each Fund that holds foreign securities in its portfolio does not take place contemporaneously with the determination of the values of many of the foreign portfolio securities used in such calculation. Events affecting the values of foreign portfolio securities that occur between the time their prices are determined and the calculation of a Fund’s share price will be taken into account by the Adviser, subject to review by the Board of Trustees, in the determination of the value of those securities.
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 input other than quoted prices that are observable (either directly or indirectly) for substantially the full term of the asset or liability; and | |
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. For example, securities maturing within 60 days of the reporting date are valued using amortized cost, in accordance with rules under the 1940 Act. Generally, amortized cost approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market, such securities are reflected as Level 2.
Semi-Annual Report | December 31, 2012 | 43 |
Table of Contents
Notes to Financial Statements | James Advantage Funds | |
December 31, 2012 (Unaudited) |
The following is a summary of the inputs used to value the Funds’ investments as of December 31, 2012:
James Balanced: Golden Rainbow Fund |
| |||||||||||||||
Valuation Inputs | ||||||||||||||||
Investments in Securities at Value* | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| ||||||||||||||||
Common Stocks | $ | 936,181,321 | $ | – | $ | – | $ | 936,181,321 | ||||||||
Closed-End Funds | 2,439,275 | – | – | 2,439,275 | ||||||||||||
Exchange Traded Funds | 27,463,816 | – | – | 27,463,816 | ||||||||||||
Preferred Stocks | 208,800 | – | – | 208,800 | ||||||||||||
Corporate Bonds | – | 204,178,814 | – | 204,178,814 | ||||||||||||
Mortgage Backed Securities | – | 26,020,455 | – | 26,020,455 | ||||||||||||
U.S. Government Agencies | – | 48,008,643 | – | 48,008,643 | ||||||||||||
U.S. Treasury Bonds & Notes | 377,731,141 | – | – | 377,731,141 | ||||||||||||
Foreign Bonds | – | 47,984,736 | – | 47,984,736 | ||||||||||||
Municipal Bonds | – | 53,155,649 | – | 53,155,649 | ||||||||||||
Short Term Investments | 43,292,718 | – | – | 43,292,718 | ||||||||||||
| ||||||||||||||||
Total | $ | 1,387,317,071 | $ | 379,348,297 | $ | – | $ | 1,766,665,368 | ||||||||
| ||||||||||||||||
James Small Cap Fund | ||||||||||||||||
Valuation Inputs | ||||||||||||||||
Investments in Securities at Value* | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| ||||||||||||||||
Common Stocks | $ | 123,735,050 | $ | – | $ | – | $ | 123,735,050 | ||||||||
Short Term Investments | 7,279,345 | – | – | 7,279,345 | ||||||||||||
| ||||||||||||||||
Total | $ | 131,014,395 | $ | – | $ | – | $ | 131,014,395 | ||||||||
| ||||||||||||||||
James Mid Cap Fund | ||||||||||||||||
Valuation Inputs | ||||||||||||||||
Investments in Securities at Value* | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| ||||||||||||||||
Common Stocks | $ | 13,098,797 | $ | – | $ | – | $ | 13,098,797 | ||||||||
Exchange Traded Funds | 243,474 | – | – | 243,474 | ||||||||||||
Short Term Investments | 665,043 | – | – | 665,043 | ||||||||||||
| ||||||||||||||||
Total | $ | 14,007,314 | $ | – | $ | – | $ | 14,007,314 | ||||||||
| ||||||||||||||||
James Micro Cap Fund | ||||||||||||||||
Valuation Inputs | ||||||||||||||||
Investments in Securities at Value* | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| ||||||||||||||||
Common Stocks | $ | 9,594,163 | $ | – | $ | – | $ | 9,594,163 | ||||||||
Short Term Investments | 773,773 | – | – | 773,773 | ||||||||||||
| ||||||||||||||||
Total | $ | 10,367,936 | $ | – | $ | – | $ | 10,367,936 | ||||||||
|
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Table of Contents
James Advantage Funds | Notes to Financial Statements | |
December 31, 2012 (Unaudited) |
James Long-Short Fund
Valuation Inputs | ||||||||||||||||
Investments in Securities at Value* | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 8,953,910 | $ | – | $ | – | $ | 8,953,910 | ||||||||
Exchange Traded Funds | 104,804 | – | – | 104,804 | ||||||||||||
Short Term Investments | 744,376 | – | – | 744,376 | ||||||||||||
Total | $ | 9,803,090 | $ | – | $ | – | $ | 9,803,090 | ||||||||
* | For Detailed descriptions of sector and industry, see the accompanying Schedule of Investments. |
The Funds disclose significant transfers between levels based on valuations at the end of each reporting period. As of December 31, 2012, the Funds did not have any transfers between Level 1 and Level 2 securities based on levels assigned to the securities on June 30, 2012.
For the six months ended December 31, 2012, the Funds did not have any securities which used significant unobservable inputs (Level 3) used in determining fair value. Therefore, a reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining fair value is not applicable.
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 James Balanced: Golden Rainbow Fund 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, 2012, 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 between the trade and settlement dates on securities transactions, 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.
Short Sales and Segregated Cash
The James Long-Short Fund may actively sell short equity and fixed income securities. Short sales are transactions in which the Fund sells a security it does not own in anticipation of a decline in the market value of that security. To complete such a transaction, the Fund must borrow the security to deliver to the buyer upon the short sale; the Fund is then obligated to replace the security borrowed by purchasing it in the open market at some later date.
The Fund will incur a loss if the market price of the security increases between the date of the short sale and the date on which the Fund replaces the borrowed security. The Fund will realize a gain if the security declines in value between those dates. If a security sold short pays a dividend while the Fund is short that security, the Fund will pay the dividend to the prime broker and record that amount as an expense.
All short sales are collateralized, as required by the Fund’s prime broker. The Fund maintains the collateral in segregated accounts consisting of cash and/or high-grade liquid assets sufficient to collateralize the market value of its short positions.
Investment Income
Dividend income and dividend expense on securities sold short are 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.
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 GAAP. Accordingly, temporary overdistributions as a result of these differences may occur and will be classified as either distributions in excess of net investment income and/or distributions in excess of net realized gains from security transactions, where applicable.
Semi-Annual Report | December 31, 2012 | 45 |
Table of Contents
Notes to Financial Statements | James Advantage Funds | |
December 31, 2012 (Unaudited) |
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. 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 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.
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, applicable to regulated investment companies. Therefore, no federal tax provision is required.
During the six months ended December 31, 2012, none of the Funds recorded a liability, nor were there any disclosures required for any uncertain tax positions in the accompanying financial statements. The Funds file income tax returns in the U.S. federal jurisdiction. For the years ended June 30, 2009 through June 30, 2012, the Funds’ returns are still open to examination by the appropriate taxing authority.
The following information is computed on a tax basis for each item as of December 31, 2012:
Federal Tax Cost | Gross Unrealized | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) | |||||||||||||||
James Balanced: Golden Rainbow Fund | $ | 1,561,863,458 | $ | 222,292,647 | $ | (17,490,737 | ) | $ | 204,801,910 | |||||||||
James Small Cap Fund | 105,162,090 | 28,557,283 | (2,704,978 | ) | 25,852,305 | |||||||||||||
James Mid Cap Fund | 11,131,197 | 3,237,178 | (361,061 | ) | 2,876,117 | |||||||||||||
James Micro Cap Fund | 8,823,698 | 1,930,489 | (386,251 | ) | 1,544,238 | |||||||||||||
James Long-Short Fund | 8,927,763 | 999,869 | (124,542 | ) | 875,327 |
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 GAAP.
Post-Enactment Capital Losses
The Regulated Investment Company Modernization Act of 2010 (the “Act”) eliminated the eight-year limit on the use of capital loss carryforwards that arise in taxable years beginning after its enactment date of December 22, 2010. Consequently, capital losses incurred by the Funds’ taxable years beginning before the taxable year ended June 30, 2012 with an expiration date may not be used to offset capital gains until all net capital losses incurred in taxable years beginning with the taxable year ended June 30, 2012 without an expiration date have been utilized. As a result, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The Funds ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The capital loss carryforwards may be utilized in future years to offset net realized capital gains, if any, prior to distributing such gains to shareholders.
New Accounting Pronouncements
In December 2011, FASB issued ASU No. 2011-11, “Disclosures about Offsetting Assets and Liabilities” (“ASU 2011-11”). These disclosure requirements are intended to help investors and other financial statement users to better assess the effect or potential effect of offsetting arrangements on a company’s financial position. They also improve transparency in the reporting of how companies mitigate credit risk, including disclosure of related collateral pledged or received. In addition, ASU 2011-11 facilities comparison between those reporting entities that prepare their financial statements on the basis of U.S. GAAP and those reporting entities that prepare their financial statements on the basis of IFRS. Specifically, ASU 2011-11 requires reporting entities to disclose 1) both gross and net information about both instruments and transactions eligible for offset in the financial statements and 2) instruments and transactions subject to an agreement similar to a master netting agreement. The effective date of ASU 2011-11 is for interim and annual periods beginning on or after January 1, 2013. At this time, management is evaluating the implications of this requirement and the impact it will have on the Funds’ financial statement disclosures.
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Table of Contents
James Advantage Funds | Notes to Financial Statements | |
December 31, 2012 (Unaudited) |
3. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term U.S. Government obligations for the six months ended December 31, 2012 were as follows:
Purchases | Sales | |||||||||
James Balanced: Golden Rainbow Fund | $ | 117,628,251 | $ | 283,126,531 |
Purchases and sales (including maturities) of investments in other long-term securities for the six months ended December 31, 2012 were as follows:
Purchases | Sales | |||||||||
James Balanced: Golden Rainbow Fund | $ | 400,508,552 | $ | 113,975,664 | ||||||
James Small Cap Fund | 25,185,511 | 34,503,071 | ||||||||
James Mid Cap Fund | 1,420,181 | 1,037,808 | ||||||||
James Micro Cap Fund | 3,108,326 | 2,953,795 | ||||||||
James Long- Short Fund | 4,093,122 | 4,651,717 |
For the six months ended December 31, 2012, the cost of securities purchased to cover short sales and the proceeds from securities sold short were $8,112,014 and $12,619,840, respectively, for the Long-Short Fund.
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. James Balanced: Golden Rainbow Fund is authorized to pay James a fee equal to an annual rate of 0.74% of its average daily net assets for assets up to and including $500 million; at the annual rate of 0.70% of the average daily net assets for assets from $500 million up to and including $1 billion; at the annual rate of 0.65% of the average daily net assets for assets from $1 billion up to and including $2 billion; and at the annual rate of 0.60% of the average daily net assets for assets over $2 billion. James is responsible for the payment of all operating expenses of the other Funds within the Trust.
James is authorized to receive a fee equal to an annual rate of 1.25% of the average daily net assets of the James Small Cap Fund, James Mid Cap Fund and the James Long-Short Fund, respectively, for net assets up to and including $500 million; 1.20% of average daily assets for net assets from $500 million up to and including $1 billion; 1.15% of the average daily assets for net assets from $1 billion to and including $2 billion; and 1.10% of the daily average net assets over $2 billion. James is authorized to receive a fee equal to 1.50% of James Micro Cap Fund average daily assets for net assets up to
and including $500 million and 1.45% of average daily assets for net assets over $500 million. Advisory fees for the James Small Cap, James Mid Cap Fund, James Micro Cap Fund and James Long-Short Fund are reduced by the fees and expenses of the non-interested person trustees incurred by the applicable Fund.
James is responsible for the payment of all operating expenses of the James Small Cap Fund, James Mid Cap Fund, James Micro Cap Fund and James Long-Short Fund, except for brokerage fees and commissions, taxes, interest (including dividend expense on securities sold short) and 12b-1 expenses.
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 James Small Cap Fund, James Mid Cap Fund, James Micro Cap Fund and James Long-Short Fund, 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.
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 and reimbursed by James Balanced: Golden Rainbow Fund, for itself, and by James, for the James Small Cap Fund, James Mid Cap Fund, James Micro Cap Fund and James Long-Short Fund.
Plans of Distribution
Each Fund (only the Retail Class of the James Balanced: Golden Rainbow Fund), other than the James Micro Cap Fund, has 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. Payments under a Plan are made to James, which uses them to pay distribution and shareholder service expenses on behalf of and as agent of the Fund. The amount payable by each Fund (the Retail Class of the James Balanced: Golden Rainbow Fund), other than the James Micro Cap 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 James 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 James is permitted to retain the excess. It is also possible that 12b-1 expenses paid by James for a period will exceed the payments received by James, in which case James may pay such excess expenses out of its own resources. Payments received by James under the Plans are in addition to the fees paid to James pursuant to the Management Agreements. The Plans require that James 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 James will make such payments. For the six months ended December 31, 2012, $1,645,815, $163,031, $16,675 and $11,523 was paid to James on behalf of James Balanced: Golden Rainbow Fund, James Small
Semi-Annual Report | December 31, 2012 | 47 |
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Notes to Financial Statements | James Advantage Funds | |
December 31, 2012 (Unaudited) |
Cap Fund, James Mid Cap Fund and James Long-Short Fund, respectively, pursuant to the Plans.
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 |
The Trust has a $3,000,000 revolving line of credit agreement with U.S. Bank, N.A (the “Bank”) for the James Long-Short Fund. Borrowings under this arrangement are secured by investments held in the Fund’s portfolio as notated on the Schedule of Investments and bear interest at the Bank’s prime rate. For the six months ended December 31, 2012, the average amount of borrowings was $2,265,000 over 43 days with a weighted-average interest rate of 3.25%. As of December 31, 2012, the James Long-Short Fund did not have an outstanding balance with respect to the line of credit. Interest on funded and unfunded loans can be found under interest expense on the Statements of Operations.
7. | SUBSEQUENT EVENTS |
The Funds evaluated subsequent events from December 31, 2012, the date of these financial statements, through the date these financial statements were issued and available. There were no subsequent events to report that would have a material impact on the Funds’ financial statements.
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James Advantage Funds | Additional Information | |
December 31, 2012 (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 website at http://www.sec.gov.
QUARTERLY PORTFOLIO DISCLOSURE
James files a complete listing of portfolio holdings for each Fund as of the end of the first and third quarters of each fiscal year on Form N-Q. The complete listing (i) is available on the Commission’s website; (ii) may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; and (iii) will be made available to shareholders upon request by calling 1-800-995-2637. Information on the operation of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
Semi-Annual Report | December 31, 2012 | 49 |
Table of Contents
Privacy Policy | James Advantage Funds | |
December 31, 2012 (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. |
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James Advantage Funds | Notes | |
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Notes | James Advantage Funds | |
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Table of Contents
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 Companies.
Not applicable to registrant.
Item 6. Schedule of Investments.
The schedule is included as part of the Reports to Stockholders filed under Item 1 of this Report.
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 Funds.
Not applicable to the registrant.
Item 9. Purchases of Equity Securities by Closed-End Funds.
Not applicable to the registrant.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable to the registrant.
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
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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 that occurred during the registrant’s last fiscal half-year that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Exhibits.
(a)(1) | Not applicable to this Report. | |
(a)(2) | Certifications required by Item 12(a)(2) of Form N-CSR are filed herewith. |
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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 6, 2013
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 6, 2013 | ||
By: | /s/ Thomas L. Mangan |
Thomas L. Mangan | ||
Treasurer, Chief Financial Officer |
Date: March 6, 2013