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Welcome to
U.S. Global Investors
Dear Investor,
Thank you for inquiring about our gold funds. If you are seeking growth for your portfolio, the gold and natural resources sectors present excellent opportunities for capital appreciation. To manage your money in these specialized sectors, we employ fund managers and analysts with professional experience in geology, engineering, mineral economics and mining finance. This investment team is one of the most qualified in the business.
We introduced the nation’s first no-load gold fund in 1974 and have been a recognized leader in gold fund management ever since.
Our flagship fund, the World Precious Minerals Fund (UNWPX), invests in all tiers of mining companies, including exploration companies. The Gold Shares Fund (USERX) focuses on mid- and large-capitalization senior gold producers. Both funds seek gold companies with a strong growth profile evidenced by increasing reserves, production
and cash flow.
Everything you need to open an account is inside this booklet. In three easy steps you can become a fund shareholder. Simply:
1. Review the enclosed investor’s guide and prospectus carefully;
2. Complete the enclosed new account application; and
3. Mail the application with your check in the postage-paid envelope provided.
Historically, gold-related funds have demonstrated price volatility, so please read the prospectus carefully before you invest.
If there is anything we can do to help you with this investment decision, please call our Investment Center at 1-800-US-FUNDS (1-800-873-8637). An investor representative will be happy to answer your questions or provide additional information.
I look forward to welcoming you as a fellow shareholder.
Sincerely,
Frank Holmes
Chairman & CEO
P.S. Call 1-800-US-FUNDS to learn about qualifying for a free lifetime IRA.
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Discover the growth opportunities in gold and precious minerals. Our specialized funds give you the opportunity to diversify your portfolio globally while adding capital appreciation potential and a hedge against inflation.
Gold and Precious Minerals
The World Precious Minerals Fund (UNWPX) seeks precious mineral companies around the world that are creating wealth by discovering new deposits, developing promising properties and/or mining. Its portfolio includes all tiers of mining companies, including exploration companies.
The Gold Shares Fund (USERX) focuses on mid- and large-capitalization senior gold mining companies with proven reserves and strong earnings.
Why Invest in Gold Stocks?
1. Gold mining companies, with growing reserves, production and cash flow, offer capital appreciation potential.
2. Demand for gold is rising, particularly in emerging economies, while the supply of gold itself is limited.
3. Gold stocks are a proven portfolio diversifier. Since it is not highly correlated with other financial assets, its inclusion in a diversified portfolio can increase the portfolio’s return without materially increasing the portfolio’s risk.
4. Gold stocks can be a safe haven in times of economic and financial instability.
5. Gold stocks can be a hedge against inflation over the long term.
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Gold Stocks can Give You Growth Opportunities.
For the 8th consecutive year, the world’s gold consumption has exceeded mine production. The jewelry industry alone is consuming more gold than is being mined each year. Besides jewelry, gold has many applications in industry, including aerospace, medicine, electronics and dentistry. Cultural affinity toward gold, high inflation, growth in personal incomes and the absence of alternative savings institutions make the metal increasingly popular in many emerging markets. China and India, for example, have emerged as two of the largest gold-consuming nations on earth.
Gold Stocks Diversify Your Portfolio.
Gold is not highly correlated with other financial assets, therefore its inclusion in a traditional portfolio of stocks and bonds can add diversification and reduce volatility. A renowned study by Jeffrey F. Jaffe of the Wharton School of Business concluded that investing 5-10% of a portfolio in gold and gold stocks increased a fully diversified portfolio’s overall return without materially increasing the portfolio’s overall risk.
Gold Stocks can Protect You Against Inflation.
We suggest you invest no more than 5-10% of your total assets in gold and gold stocks. If you invest more, your portfolio could experience greater volatility, which many investors find trying. Historically, investors have turned to gold as a hard asset that can hold its value even in turbulent times. When the economy is in an inflationary period, or when the financial markets perceive a threat of inflation, gold and gold stocks may gain in value.
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World Precious Minerals Fund (UNWPX)
Top Eight Gold-Producing Countries in 2003
| 1. South Africa |
5. Russia |
| 2. United States | 6. Peru |
| 3. Australia | 7. Indonesia |
| 4. China | 8. Canada |
Source: World Gold Council
The World Precious Minerals Fund invests in precious mineral stocks from around the world. It seeks companies which have the greatest potential for creating wealth for their stockholders by discovering new deposits, developing promising properties and/or profitably mining gold. The World Precious Minerals Fund’s portfolio includes all tiers of mining companies, including exploration companies.
The fund is managed using a rigorous top-down macro theme approach and a bottom-up stock selection strategy to identify top quality companies with the potential for high returns.
The World Precious Minerals Fund
| Investment Goals: | Long-term growth of capital |
| Sales Charge: | None – 100% no-load |
| Potential Risk/Reward Potential: | |
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Gold Shares Fund (USERX)
The Gold Shares Fund focuses on mid- and large-capitalization senior gold production companies. Like the World Precious Minerals Fund, the Gold Shares Fund focuses on companies with strong balance sheets and growth in resources and production. In all cases, effective company management is essential.
This fund is for investors who are willing to accept significant volatility. Historically, gold has demonstrated substantial price fluctuations over short periods of time and may be affected by unpredictable international monetary and political policies, so please read the prospectus carefully before investing.
The gold market is both cyclical and volatile. Within a given cycle, regardless of the direction of price, daily volatility exists. When the metal moves, gold stocks move farther and faster. This volatility is reflected in the fluctuating share prices of our gold funds. Fortunately, there is a simple way to take the guesswork out of the gold market.
How to Avoid the Emotional Swings of the Gold Market
We suggest using our ABC Investment Plan® to dollar-cost average your investment over time. Of
course, no investment plan can guarantee a profit or protect against depreciation in a declining market. You should evaluate your ability to continue in such a program in view of the possibility that you may have to redeem fund shares in periods of declining share
prices as well as periods of rising prices.
The Gold Shares Fund
| Investment Goals: | Long-term growth of capital |
| Sales Charge: | None – 100% no-load |
| Potential Risk/Reward Potential: | |
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Shareholder Benefits
Our Gold Team has Extensive Industry Experience and Knowledge.
Our team of investment professionals includes engineers, geologists and mineral economists who have extensive knowledge of the gold and natural resources sectors, plus direct access to the management of the companies in which we invest.
Global Specialists Travel Worldwide Seeking Investment Opportunities for You.
They personally visit operations worldwide and constantly assess the development of quality growth opportunities in the mining and natural resources industries. Their professional experience guides them in monitoring the markets and analyzing investments to make money for you.
Investing is Easy and Affordable.
We believe everyone should have the opportunity to invest. Our low minimum initial investment of $5,000 makes it easy and affordable to build a position in the World Precious Minerals or Gold Shares Funds. If you use our ABC Investment Plan,® you can get started with as little as $100 when you make monthly automatic investments of $30 or more. IRAs have no minimum investment requirement. These affordable investment minimums make it easy for you to open an account for yourself, your children or grandchildren.
Your Money is Invested with a Longstanding Leader.
Unlike some of our competitors, we did not suddenly jump into the gold market. In fact, we established the first no-load gold fund in the United States in 1974.
Your Account Information is Just a Toll-Free Phone Call Away.
You can call toll free from anywhere in the United States to check your account balance, confirm deposits, verify exchanges and more. This convenient service is available 24 hours a day, seven days a week by calling 1-800-US-FUNDS (1-800-873-8637).
A program of regular investing doesn’t assure a profit or protect against loss in a declining market. You should evaluate your ability to continue in such a program in view of the possibility that you may have to redeem fund shares in periods of declining share prices as well as in periods of rising prices.
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By Calling 1-800-US-FUNDS You Get Up-to-Date Information on the Gold Markets.
Our toll-free information line provides timely information on the Australian, Johannesburg and Toronto Gold Indices, the London Gold Fix and more. This information is updated several times during the day so you can follow the activity in the gold market.
You Save Money with a No-load Investment.
Because our funds are 100% no-load, you never pay commissions or sales charges. And our gold funds save you the broker fees, dealer markups, and the costs of shipping, storage and insurance associated with an investment in gold bullion. Please read the prospectus, which includes charges and ongoing expenses, carefully before investing.
You always have easy access to your money.
We make it convenient for you to invest in the Gold Shares and World Precious Minerals Funds. You can buy, exchange or sell fund shares on any business day. You can withdraw money from your account by written request or by telephone exchange. Investors should be aware that investment returns and principal value will vary, and you may have a gain or loss when you sell shares.
By written request: Upon receipt of your written instruction, we will mail or wire your money to you or your financial institution.
By telephone exchange: If your investment needs change, you can exchange your investment among
any of U.S. Global Investors’ funds—for a fee of only $5.
Did you know...? For instant liquidity, you can transfer money by phone to your U.S. Treasury Securities Cash Fund account and then write a check for any amount. Call 1-800-873-8637 for a free investment kit.
Before investing, you should consider carefully the fund’s investment objectives, risks, charges and expenses. For this and other important information, please obtain a fund prospectus by visiting www.usfunds.com or by calling 1-800-US-FUNDS (1-800-873-8637). Distributed by U.S. Global Brokerage, Inc.
An investment in the U.S. Treasury Securities Cash Fund is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the
value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.
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ABC Investment Plan®
The ABC Investment Plan® Provides You with an Opportunity to Automatically Invest in Our Funds
with a Lower Initial Investment.
To sign up for the ABC Investment Plan,® simply complete section 8 of your new account application.
Saving is as easy as ABC! This systematic approach to investing, called dollar-cost averaging, provides
you with a disciplined program for achieving your financial goals. With an initial investment amount of
$100 and a minimum monthly investment of $30, this savings program allows you to automatically invest on a
monthly basis. Simply choose the amount you want to invest and the day of the month (between the 1st
and 28th) you want to invest it. According to your instructions, we will transfer the money from your
checking account and invest it in the fund of your choice.
Monthly investing is easy and affordable.
Long-term goals like buying a home, saving for college or building a retirement nest egg are achieved more
easily when you put aside a little each month. Automatic reinvestment and compounding of dividend income adds momentum to the building of your wealth. And, because the amount you invest stays the same, your money buys more shares when the price is low and fewer shares when the price is high.
A program of regular investing doesn't assure a profit or protect against loss in a declining market. You should evaluate your ability to continue in such a program in view of the possibility that you may have to redeem fund shares in periods of declining share prices as well as in periods of rising prices.
Attention
parents and grandparents:
Did you know...?
The ABC Investment Plan® is a powerful tool for teaching children the rewards of saving and investing regularly. With the ABC Investment Plan,® they can watch their savings grow and witness the benefits of compounding earnings over time. These invaluable financial lessons can provide a lifetime of benefits.
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Max Out Your Savings
Did you know that for the price of a cup of coffee and a muffin each morning you could build a substantial
nest egg? That’s about $4 a day, or $120 per month. And as the following chart shows, you could become a
millionaire investing just $3,000 a year. The rule of thumb here is to invest often and regularly, without
regard to short-term market fluctuations. Keep in mind that the markets are unpredictable, so don’t try
to outguess them. For added discipline and easier investing, sign up for our ABC Investment Plan,® our
personalized investing service designed to fit your needs, budget, goals and schedule.
Discover the Potential of
Investing $3,000 Annually
Beginning at the Age of...
This hypothetical example assumes a 10% annual return compounded monthly. Your actual return may be more or less than this amount. No investment program can guarantee a profit.
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You Can Open Your New Account in 3 Easy Steps.
1. Review the prospectus carefully.
Prospectus: A legal document that describes a mutual fund’s objectives, strategies, risks, costs
and management.
The prospectus is the best source of information on a mutual fund. While a fund’s prospectus may appear intimidating at first, it is important that you read it carefully before investing to make sure the fund’s investment objectives and risks are appropriate for you.
The prospectus contains valuable information including:
- the fund’s investment objectives
- the strategies it plans to use to achieve its objectives
- the fund’s operating expenses and fees
- special risks associated with the fund’s investments.
2. Complete the enclosed new account application. Please be sure to sign it.
Your Account Options:
Basic Accounts are for individuals or joint account holders.
Retirement Accounts earn tax-deferred income for your retirement savings. We offer traditional and Roth IRAs, Education Savings Accounts, SEPs, 401(k) and 403(b) Plans, Profit Sharing and Money Purchase Plans.
Uniform Gifts to Minors Act Accounts (UGMA) and Uniform Transfers to Minors Act Accounts (UTMA) allow an adult to act as a custodian for a child’s investment.
Business Accounts can be customized for your sole proprietorship, partnership or corporation.
Trust Accounts are for estate planning purposes and for those with fiduciary responsibilities.
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Initial Investment Requirements
Regular |
$5,000 |
3. Open Your Account by Mail or Wire Transfer
To open an account, mail your investment check (made payable to the Gold Shares or World Precious
Minerals Fund) with your application in the postage-paid envelope provided. Or, to arrange a wire transfer,
call 1-800-873-8637. Current shareholders may easily establish a new account by telephone exchange. On
the day we receive your account application and investment, we will open your new account and immediately mail you a statement confirming your purchase.
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Services to Keep You Informed
We Keep You Informed on Your Investments
Account Statements
Each time you make a transaction or a dividend is paid, you’ll receive an account statement.
Investment Center
The Center is staffed by a team of investor representatives who are mutual fund specialists. They are dedicated to helping you maximize your investment experience with U.S. Global Investors. You can call 1-800-US-FUNDS to have our specialists answer questions about your investment, explain how our family of funds can help you build a diversified portfolio, provide you with educational tools to help you learn how to build wealth, suggest strategies for making investing easy and assist you in making account transactions. The Investment Center is open every business day from 7:30 a.m. to 7:00 p.m. (CST).
Toll-Free Telephone Link
Call 1-800-US-FUNDS anytime for your account balance, fund performance updates, share closing prices and fund insights direct from our portfolio managers. This automated service is available 24 hours a day, seven days a week.
Portfolio Direct
Listen to our portfolio managers’ insights and expectations for the markets. Call 1-800-US-FUNDS and select menu option 6.
The Shareholder Report
Each quarter you will receive an educational report filled with financial solutions, fund performance highlights, insights from expert money managers and global perspectives on investing.
Financial Reports
We will provide you with detailed information on portfolio holdings and investment performance twice a year.
Internet Website
Our website, www.usfunds.com, offers you services and information, including access to your account, an asset allocation tool for selecting an asset mix that meets your goals, and retirement planning worksheets to help you determine how much to save to reach your retirement goals. You can also download prospectuses, read the Shareholder Report, monitor share prices and learn more about our family of funds.
E-mail Connection
You can communicate with the Investment Center via electronic mail. Send your questions to shsvc@usfunds.com. An investor representative will respond to your message within one business day.
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Fund Listings
Daily share prices and performance data for our funds are listed in The Wall Street Journal, Investor’s Business Daily, Barron’s and many local newspapers. Here is an easy reference chart to help you decipher the listings.
| Reading Fund Performance |
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Explore U.S. Global Investors
Explore U.S. Global Investors, Inc.
U.S. Global Investors, Inc. is a registered investment adviser founded in 1968 and based in San Antonio, Texas. It is a public company that trades on Nasdaq under the ticker symbol GROW. The funds’ distributor, U.S. Global Brokerage, Inc., is a wholly owned subsidiary.
Entrepreneurial, Dynamic and Unique
These are the words which best describe our company as well as our employees. We are sophisticated investment specialists seeking opportunities globally for our shareholders. Our performance-inspired fund management team not only has advanced academic credentials but also the hands-on experience needed to guide them in making investment decisions on your behalf.
Our Mission:
To maximize the growth, protection and service of our shareholders’ wealth, with the highest ethical standards.
Still Have Questions?
Please call our Investment Center at 1-800-US-FUNDS. An investor representative will be happy to answer your questions or provide you with additional information.
Before investing, you should consider carefully the fund’s investment objectives, risks, charges and expenses. For this and other important information, please obtain a fund prospectus by visiting www.usfunds.com or by calling 1-800-US-FUNDS (1-800-873-8637). Distributed by U.S. Global Brokerage, Inc.
Gold funds may be susceptible to adverse economic, political or regulatory developments due to concentrating in a single theme. The price of gold is subject to substantial price fluctuations over short periods of time and may be affected by unpredicted international monetary and political policies.We suggest investing no more than 5% to 10% of your portfolio in gold or gold stocks.
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