Global Resources Fund

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Third Quarter 2009

The Global Resources Fund extended solid quarterly results from the second into the third quarter, and outperformed its benchmark index, the Morgan Stanley Commodity Related Index, for the third quarter.

Equity markets remain in recovery mode with the S&P 500 Index posting a gain of 15.6 percent during the third quarter. Commodity-related equity indices performed strongly with the Philadelphia Oil Exploration & Production Index gaining 26.6 percent and the S&P Metals & Mining Index gaining 22.9 percent. Base metals commodities posted strong gains: zinc (+27.1 percent), copper (+24.4 percent) and nickel (+16.4 percent). Crude oil traded range-bound and finished up 1 percent at $70.61 per barrel while natural gas futures bounced off a 52-week low of $2.51 per mmbtu in early September to close the quarter up 26 percent at $4.84 mmbtu.

The world economy appears to be rising out of a severe and lengthy recession. Already, some key Asian economies have touched bottom and showed large GDP gains during the second quarter and third quarter data will likely confirm this recovery. Given how swiftly GDP fell, a strong rebound is a reasonable outcome, and this scenario seems to be taking place already in Asia. Key economic factors also favor a robust recovery. World trade has started to regain its form according to recent data releases, which should bode well for the continued recovery of global industrial production.

With a stronger global economy as a backdrop, we have a constructive outlook for base metals and energy equities. Metal inventories are low throughout the supply chain, the 2008-2009 credit crunch will likely continue to delay mine and energy project development which should limit a supply response once demand rebounds, and stimulus spending in the developed world should ramp up through 2010 and drive demand for commodities.

Past performance does not guarantee future results.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. The Morgan Stanley Commodity Related Index (CRX) is an equal-dollar weighted index of 20 stocks involved in commodity related industries such as energy, non-ferrous metals, agriculture, and forest products. The index was developed with a base value of 200 as of March 15, 1996. The Philadelphia Oil Exploration & Production Index (EPX) is an equal-dollar-weighted index composed of 22 companies that own, lease, and operate oil and natural gas facilities. The S&P Metals & Mining Select Industry Index is an equal-weighted index that draws constituents from the GICS sub-industries that contain companies involved in metals and mining activities.

Net Asset Value
as of 11/19/2009

Global Resources Fund
PSPFX $8.59 -0.15
Gold and Precious Metals Fund
USERX $16.13 +0.01
World Precious Minerals Fund
UNWPX $17.99 +0.02
China Region Fund
USCOX $8.24 -0.12
Eastern European Fund
EUROX $9.07 -0.17
Global Emerging Markets Fund
GEMFX $7.96 -0.11
Global MegaTrends Fund
MEGAX $7.98 -0.07
All American Equity Fund
GBTFX $19.31 -0.30
Holmes Growth Fund
ACBGX $15.18 -0.23
Tax Free Fund
USUTX $12.23 +0.02
Near-Term Tax Free Fund
NEARX $2.22 No Change
U.S. Government Securities Savings Fund
UGSXX $1.00 No Change
U.S. Treasury Securities Cash Fund
USTXX $1.00 No Change

Please consider carefully a fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a fund prospectus by visiting www.usfunds.com or by calling 1-800-US-FUNDS (1-800-873-8637). Read it carefully before investing. Distributed by U.S. Global Brokerage, Inc. With respect to the money market funds, an investment in a money market fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in these funds.

Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk. By investing in a specific geographic region, a regional fund’s returns and share price may be more volatile than those of a less concentrated portfolio. Gold, precious metals, and precious minerals funds may be susceptible to adverse economic, political or regulatory developments due to concentrating in a single theme. The prices of gold, precious metals, and precious minerals are 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 these sectors. The Eastern European Fund invests more than 25% of its investments in companies principally engaged in the oil & gas or banking industries. The risk of concentrating investments in this group of industries will make the fund more susceptible to risk in these industries than funds which do not concentrate their investments in an industry and may make the fund’s performance more volatile. Because the Global Resources Fund concentrates its investments in a specific industry, the fund may be subject to greater risks and fluctuations than a portfolio representing a broader range of industries. Tax-exempt income is federal income tax free. A portion of this income may be subject to state and local income taxes, and if applicable, may subject certain investors to the Alternative Minimum Tax as well. Each tax free fund may invest up to 20% of its assets in securities that pay taxable interest. Income or fund distributions attributable to capital gains are usually subject to both state and federal income taxes. Bond funds are subject to interest-rate risk; their value declines as interest rates rise.

For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.)

Each of the mutual funds or services referred to in the U.S. Global Investors, Inc. website may be offered only to persons in the United States. This website should not be considered a solicitation or offering of any investment product or service to investors residing outside the United States.

Certain materials on the site may contain dated information. The information provided was current at the time of publication. For current information regarding any of the funds mentioned in such materials, please visit the fund performance page.

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Global Resources Fund

Fund Vitals

NAV: $8.59
as of 11/19/2009
Change: -0.15 (-1.72)

Third Quarter 2009

Net Asset Value
as of 11/19/2009

Global Resources Fund

Fund Vitals

NAV: $8.59 as of 11/19/2009 Change: -0.15 (-1.72)

Third Quarter 2009

Net Asset Valueas of 11/19/2009

NAV: $8.59
as of 11/19/2009
Change: -0.15 (-1.72)

Net Asset Value
as of 11/19/2009