Net Asset Value as
of 04/15/2024:
Our Mutual Funds
Explore our no-load mutual funds, ranging from natural resources, emerging markets, and infrastructure, to precious metals and bond funds. We believe that we are specially qualified to be an integral part of your investment strategy.
Net Asset Values
| (NAV) As of 04/15/2024 | |||||
|---|---|---|---|---|---|
| Fund | Symbol | Close | Previous | Change | YTD |
| Global Luxury Goods Fund (USLUX) | USLUX | 20.03 | 20.07 |
-0.04
|
4.21%
|
| Gold and Precious Metals Fund (USERX) | USERX | 10.85 | 10.87 |
-0.02
|
9.71%
|
| World Precious Minerals Fund (UNWPX) | UNWPX | 1.51 | 1.52 |
-0.01
|
4.14%
|
| Global Resources Fund (PSPFX) | PSPFX | 3.97 | 3.98 |
-0.01
|
0%
|
| Near-Term Tax Free Fund (NEARX) | NEARX | 2.09 | 2.09 |
0.00
|
0.12%
|
| U.S. Government Securities Ultra-Short Bond Fund (UGSDX) | UGSDX | 1.95 | 1.95 |
0.00
|
1.04%
|
Occasionally one or more of the above prices may be different than those reported elsewhere. With our global investments and the early deadline imposed by reporting services, occasionally a price is provided to the services before it has been fully verified. The prices above are always the most current and accurate available.
Past performance does not guarantee future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost.
Annualized Monthly Yields as of 03/31/2024
| Bond Funds | Inception Date | 30 Day SEC | Tax Equivalent (40.8% Tax Rate) | SEC Yield W/O Waivers |
|---|---|---|---|---|
| Near-Term Tax Free Fund (NEARX) | 12/04/1990 | 2.83% | 4.77% | 1.92% |
| U.S. Government Securities Ultra-Short Bond Fund (UGSDX) | 11/01/1990 | 4.22% | N/A | 3.46% |
Occasionally one or more of the above prices may be different than those reported elsewhere. With our global investments and the early deadline imposed by reporting services, occasionally a price is provided to the services before it has been fully verified. The prices above are always the most current and accurate available.
Performance data quoted above is historical. Past performance does not guarantee future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost.
Quarterly Yields as of 03/31/2024
| Bond Funds | Inception Date | 30-day SEC | Tax Equivalent (40.8% Tax Rate) | SEC Yield w/o Waiver & Reimbursement | Maturity |
|---|---|---|---|---|---|
| Near-Term Tax Free Fund NEARX | 12/04/1990 | 2.83% | 4.77% | 1.92% | 1.00 years |
| U.S. Government Securities Ultra-Short Bond Fund (UGSDX) | 11/01/1990 | 4.22% | N/A | 3.46% | 0.59 years |
Occasionally one or more of the above prices may be different than those reported elsewhere. With our global investments and the early deadline imposed by reporting services, occasionally a price is provided to the services before it has been fully verified. The prices above are always the most current and accurate available.
Performance data quoted above is historical. Past performance does not guarantee future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost.
Annualized Quarterly Returns as of 03/31/2024
| Fund | Inception Date | YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
|---|---|---|---|---|---|---|---|
| U.S. Global Luxury Goods Fund (USLUX) | 10/17/1994 | 9.21% | 14.29% | 9.72% | 7.01% | 8.35% | 1.75% |
| Gold and Precious Metals Fund (USERX) | 7/1/1974 | 3.94% | -1.91% | 8.45% | 5.20% | 0.67% | 1.55% |
| World Precious Minerals Fund (UNWPX) | 11/27/1985 | -2.07% | -21.55% | -0.32% | -3.54% | 1.57% | 1.62% |
| Global Resources Fund (PSPFX) | 8/3/1983 | 0% | -8.53% | 5.69% | -3.37% | 3.18% | 1.60% |
| Near-Term Tax Free Fund (NEARX) | 11/1/1990 | 0.12% | 2.19% | 0.32% | 0.72% | 3.18% | 1.21% |
| U.S. Government Securities Ultra-Short Bond Fund (UGSDX) | 12/4/1990 | 1.04% | 3.90% | 0.88% | 0.77% | 2.38% | 1.13% |
Expense ratios as stated in the most recent prospectus.
The Adviser of the Gold & Precious Metals Fund has voluntarily limited total fund operating expenses (exclusive of acquired fund fees and expenses of, extraordinary expenses, taxes, brokerage commissions and interest, and advisory fee performance adjustments to not exceed 1.75%. With the voluntary expense waiver amount of (0.00%), total annual expenses after reimbursement were 1.55%.
The Adviser of the Global Luxury Goods Fund has contractually limited total fund operating expenses (exclusive of acquired fund fees and expenses of extraordinary expenses, taxes, brokerage commissions and interest, and advisory fee performance adjustments to not exceed 1.75% on an annualized basis through April 30, 2024. Total annual expenses after the reimbursement of (0.24%) were 1.51%.
The Adviser of the World Precious Minerals Fund has voluntarily limited total fund operating expenses (exclusive of acquired fund fees and expenses of extraordinary expenses, taxes, brokerage commissions and interest, and advisory fee performance adjustments ) to not exceed 1.75%. With the voluntary expense waiver amount of (0.16%), total annual expenses after reimbursement were 1.46%.
The Adviser of the Near-Term Tax Free Fund has contractually limited the total fund operating expenses (exclusive of acquired fund fees and expenses extraordinary expenses, taxes, brokerage commissions and interest) to not exceed 0.45% on an annualized basis through April 30, 2024. Total annual expenses after the waiver of (0.75%) were 0.46%. The fund’s yield calculation is based on the holdings’ yield to maturity for prior 30 days; distribution may differ.
The Adviser of the U.S. Government Securities Ultra-Short Bond Fund has voluntarily limited total fund operating expenses (exclusive of acquired fund fees and expenses, extraordinary expenses, taxes, brokerage commissions and interest) to not exceed 0.45%. With the voluntary expense waiver amount of (0.68%), total annual expenses after reimbursement were 0.45%. U.S. Global Investors, Inc. can modify or terminate the voluntary limit at any time, which may lower a fund’s yield or return. The fund’s yield calculation is based on the holdings’ yield to maturity for prior 30 days; distribution may differ.
The Adviser of the Global Resources Fund has voluntarily limited total fund operating expenses (exclusive of acquired fund fees and expenses of extraordinary expenses, taxes, brokerage commissions and interest, and advisory fee performance adjustments ) to not exceed 1.75%. With the voluntary expense waiver amount of (0.12%), total annual expenses after reimbursement were 1.48%.
U.S. Global Investors, Inc. can modify or terminate the voluntary limits at any time, which may lower a fund’s yield or return.
Performance data quoted above is historical. Past performance is no guarantee of future results. Results reflect the reinvestment of dividends and other earnings. For a portion of periods, the fund had expense limitations, without which returns would have been lower. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Performance does not include the effect of any direct fees described in the fund’s prospectus which, if applicable, would lower your total returns. Performance quoted for periods of one year or less is cumulative and not annualized. Obtain performance data current to the most recent month-end at www.usfunds.com or 1-800-US-FUNDS. High double-digit returns are attributable, in part, to unusually favorable market conditions and may not be repeated or consistently achieved in the future.
Month End Average Annual Total Returns as of 03/31/2024
| Fund | Inception Date | One Month Return | YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
|---|---|---|---|---|---|---|---|---|
| USGI Global Luxury Goods Fund (USLUX) | 10/17/1994 | 1.94% | 9.21% | 14.29% | 9.72% | 7.01% | 8.35% | 1.75% |
| Gold and Precious Metals Fund (USERX) | 7/1/1974 | 18.16% | 3.94% | -1.91% | 8.45% | 5.20% | 0.67% | 1.55% |
| World Precious Minerals Fund (UNWPX) | 11/27/1985 | 18.33% | -2.07% | -21.55% | -0.32% | -3.54% | 1.57% | 1.62% |
| Global Resources Fund (PSPFX) | 8/3/1983 | 5.87% | 0% | -8.53% | 5.69% | -3.37% | 3.18% | 1.60% |
| Near-Term Tax Free Fund (NEARX) | 12/4/1990 | 0.19% | 0.12% | 2.19% | 0.32% | 0.72% | 3.18% | 1.21% |
| U.S. Government Securities Ultra-Short Bond Fund (UGSDX) | 11/1/1990 | 0.33% | 1.04% | 3.90% | 0.88% | 0.77% | 2.38% | 1.13% |
Expense ratios as stated in the most recent prospectus.
The Adviser of the Gold & Precious Metals Fund has voluntarily limited total fund operating expenses (exclusive of acquired fund fees and expenses of, extraordinary expenses, taxes, brokerage commissions and interest, and advisory fee performance adjustments) to not exceed 1.75%. With the voluntary expense waiver amount of (0.00%), total annual expenses after reimbursement were 1.55%.
The Adviser of the Global Luxury Goods Fund has contractually limited total fund operating expenses (exclusive of acquired fund fees and expenses of extraordinary expenses, taxes, brokerage commissions and interest, and advisory fee performance adjustments) to not exceed 1.75% on an annualized basis through April 30, 2024. Total annual expenses after the reimbursement of (0.24%) were 1.51%.
The Adviser of the World Precious Minerals Fund has voluntarily limited total fund operating expenses (exclusive of acquired fund fees and expenses of extraordinary expenses, taxes, brokerage commissions and interest, and advisory fee performance adjustments) to not exceed 1.75%. With the voluntary expense waiver amount of (0.16%), total annual expenses after reimbursement were 1.46%.
The Adviser of the Near-Term Tax Free Fund has contractually limited the total fund operating expenses (exclusive of acquired fund fees and expenses extraordinary expenses, taxes, brokerage commissions and interest) to not exceed 0.45% on an annualized basis through April 30, 2024. Total annual expenses after the waiver of (0.75%) were 0.46%. The fund’s yield calculation is based on the holdings’ yield to maturity for prior 30 days; distribution may differ.
The Adviser of the U.S. Government Securities Ultra-Short Bond Fund has voluntarily limited total fund operating expenses (exclusive of acquired fund fees and expenses, extraordinary expenses, taxes, brokerage commissions and interest) to not exceed 0.45%. With the voluntary expense waiver amount of (0.68%), total annual expenses after reimbursement were 0.45%. The fund’s yield calculation is based on the holdings’ yield to maturity for prior 30 days; distribution may differ.
The Adviser of the Global Resources Fund has voluntarily limited total fund operating expenses (exclusive of acquired fund fees and expenses of extraordinary expenses, taxes, brokerage commissions and interest, and advisory fee performance adjustments ) to not exceed 1.75%. With the voluntary expense waiver amount of (0.12%), total annual expenses after reimbursement were 1.48%.
U.S. Global Investors, Inc. can modify or terminate the voluntary limits at any time, which may lower a fund’s yield or return.
Performance data quoted above is historical. Past performance is no guarantee of future results. Results reflect the reinvestment of dividends and other earnings. For a portion of periods, the fund had expense limitations, without which returns would have been lower. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Performance does not include the effect of any direct fees described in the fund’s prospectus which, if applicable, would lower your total returns. Performance quoted for periods of one year or less is cumulative and not annualized. Obtain performance data current to the most recent month-end at www.usfunds.com or 1-800-US-FUNDS. High double-digit returns are attributable, in part, to unusually favorable market conditions and may not be repeated or consistently achieved in the future.
| Fund | Date | Dividend/Distribution Per Share | Reinvest Price Per Share |
|---|---|---|---|
| Near-Term Tax Free Fund | 03/31/24 | $ 0.003883 | $ 2.09 |
| U.S. Government Securities Ultra-Short Bond Fund | 03/31/24 | $ 0.006464 | $ 1.95 |
The Fund’s closing Net Asset Value (NAV) on the ex-dividend date will be reduced by the amount of the distribution. There is no guarantee that the fund will continue to distribute income.
Past performance does not guarantee future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost.
Global Luxury Goods Fund (USLUX)
Fact Sheet
Fund Vitals:
NAV: $20.03
Change as of 04/15/2024
$-0.04
Ticker:
USLUX
Inception Date:
10/17/1994
AUM
$48505518.31 as of 04/15/2024
How to Invest Request Info Download Prospectus
About The Global Luxury Goods Fund
The Global Luxury Goods Fund provides investors access to companies around the world that are involved in the design, manufacture and sale of products and services that are not considered to be essential but are highly desired within a culture or society.
Investments in luxury goods companies may expose the fund to consumer discretionary industries. These include but are not limited to apparel, automotive, home and office products, leisure products, recreation facilities, retail discretionary, travel and more.
Fund Objective
The Global Luxury Goods Fund’s primary objective is to seek long-term capital appreciation.
Fund Strategy
Under normal market conditions, the Global Luxury Goods Fund will invest at least 80 percent of its net assets in securities of companies producing, processing, distributing, and manufacturing luxury products, services or equipment. The securities in which the fund may invest include common stocks, preferred stocks, convertible securities, rights and warrants, exchange-traded funds (“ETFs”) that represent interests in, or related to, luxury goods companies, and depository receipts (American Depository Receipts (ADRs) and Global Depository Receipts (GDRs).
The fund’s benchmark is the S&P Composite 1500 Index.
**On July 1, 2020, the Holmes Macro Trends Fund (MEGAX) changed its name and investment strategy to the Global Luxury Goods Fund (USLUX).
The S&P Global Luxury Index is comprised of 80 of the largest publicly-traded companies engaged in the production or distribution of luxury goods or the provision of luxury services that meet specific investibility requirements.
Companies in the consumer discretionary sector are subject to risks associated with fluctuations in the performance of domestic and international economies, interest rate changes, increased competition and consumer confidence. The performance of such companies may also be affected by factors relating to levels of disposable household income, reduced consumer spending, changing demographics and consumer tastes, among others.
For the 12 months through December 31, 2023, USLUX gained 23.75%, underperforming its benchmark, the S&P Composite 1500, which gained 25.47%. However, USLUX outperformed the S&P Global Luxury Index, whose investment objective is more aligned with focusing on high-end products and services, by 7.11%. See complete fund performance here.
Performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost.
Strengths
- The fund’s substantial allocation to consumer discretionary had the most positive effect on performance relative to the S&P 1500 Index. This allocation was primarily driven by the fund’s strategic emphasis on consumer spending, whereas the fund’s benchmark index maintains a notably lower exposure to this sector. The fund’s outperformance was largely attributed to its overweight position in leisure-related stocks, such as hotels, resorts and cruise liners. Shares of Royal Caribbean gained 162% over 2023, while Marriott underwent a substantial surge of 53%.
- The fund’s absence of investments in the health care sector had the second most positive effect on the fund’s performance relative to the S&P 1500. While health care equities yielded positive returns last year, the fund’s decision to avoid this sector proved advantageous as other sectors outperformed it.
- A standout contributor to fund performance was Tesla. Shares of the carmaker surged by 101.7% in 2023. The company delivered over 1.8 million cars, an increase of 38% year-over-year. Tesla boss Elon Musk is the world’s richest person, retaking first place from LVMH CEO Bernard Arnault.
Weaknesses
- The fund’s underweight position in information technology had the most negative effect on the fund’s performance relative to the S&P 1500. In particular, the fund did not have any exposure to semiconductors, while the index had a larger allocation in the sector. Shares of NVIDIA gained 239%, and Broadcom surged 104%. Apple was the only stock that the luxury fund held within the technology sector, gaining 49% during the same period. The S&P 1500 has about one-third of its assets invested in the sector, while USLUX was less exposed to it.
- The fund’s overweight position and stock selection in materials had the second most negative impact on the fund’s performance relative to the S&P 1500. The fund had exposure to precious metals, which underperformed compared to other sectors.
- A notable detractor to fund performance was Volkswagen. Shares of Europe’s largest car company declined by 12% last year. In October, the automaker revised its profit margin outlook for the year, lowering it to a range of 7.0% to 7.3%, down from the previously forecasted range of 7.5% to 8.5%.
Opportunities
- Lower-than-anticipated inflation figures in both the U.S. and the eurozone could indicate that central banks might conclude their tightening measures. During its December gathering, the Fed caught many market watchers off guard by proposing multiple interest rate reductions in 2023. This could lead to a further decline in yields and an uptick in equity markets.
- The global luxury goods industry witnessed robust expansion in 2023, but it is showing signs of deceleration this year, with the possibility of reaching its lowest point in the first quarter. According to RBC Capital Markets, luxury sector sales are forecasted to reach their lowest point in the first quarter of 2024, followed by an improvement in the latter half of 2023. RBC anticipates an average growth rate of 9% in its sporting goods segment and an average of 5% in the luxury sector.
- CLSA, one of Asia’s top brokers, predicts that the global luxury goods sector will grow 6.5% from 2022 to 2025, slightly surpassing the 5.5% growth over the past two decades. This will be driven by Chinese demand recovery on the back of reopening and outbound travel resumption, the firm says. In 2019, the Chinese comprised one-third of the global personal luxury sales at $92 billion, and it will continue to rise, reaching EUR100 billion by 2025, CLSA predicts.
Threats
- Bain & Company said that the luxury goods sector is experiencing normalization. Last year the sector was able to grow 20% on average. This year, the growth rate should be around 8%-9%, much closer to the long-term average of 6%. The firm expects growth to slow down next year to 4%-5%, below its long-term average. Bain & Company expects a slower first half of 2024 and a stronger end to the year.
- The conflict in Eastern Europe is approaching its second year, while tensions between Israel and Hamas have extended to Europe, causing disruptions for both locals and visitors alike. Local authorities in major European cities such as London, Paris, Madrid and Rome have heightened security measures in response to clashes that erupted after Hamas attacked Israel. Notably, in France, a key hub for numerous luxury companies, security concerns have led to the evacuation of prominent sites like the Louvre Museum, in addition to affecting several airports. Ongoing unrest and geopolitical tensions have the potential to adversely impact global consumer spending.
- China’s projected gross domestic product (GDP) growth for the upcoming year could decelerate to 4.6%, down from the 5.2% recorded in 2023. This potential slowdown may be attributed to persistent global geopolitical tensions and domestic obstacles within the property sector. Furthermore, China grapples with structural challenges stemming from an aging population, elevated youth unemployment rates and mounting debt issues. Given its significance as a market for luxury goods, a decline in consumer spending within China could exert adverse effects on the high-end sector.
The S&P 1500 Composite is a broad-based capitalization-weighted index of 1500 U.S. companies and is comprised of the S&P 400, S&P 500, and the S&P 600. The S&P Global Luxury Index measures the performance of 80 companies engaged in the production, distribution, or provision of luxury goods and services drawn from the S&P Global BMI.
Fund portfolios are actively managed, and holdings may change daily. Holdings are reported as of the most recent quarter-end. Holdings in the Global Luxury Goods Fund as a percentage of net assets as of 12/30/2023: Royal Caribbean Cruises Ltd. 0.25%, Marriot International Inc. 3.84%, Tesla Inc. 0.00%, LVMH Moet Hennessy Louis Vuitton 5.49%, NVIDIA Corp. 0.00%, Broadcom Inc. 0.00%, Apple Inc. 0.00%, Volkswagen AG 3.83%,
Standard Disclosure
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. Foreside Fund Services, LLC, Distributor. U.S. Global Investors is the investment adviser.
Stock markets can be volatile and share prices can fluctuate in response to sector-related and other risks as described in the fund prospectus.
All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.
Top 10 Equity and Debt Holdings as of 03-31-2024
| Holding | Percentage |
|---|---|
| Hermes International | 7.73% |
| Cie Financiere Richemont SA | 5.07% |
| Ferrari NV | 4.83% |
| LVMH Moet Hennessy Louis Vuitton SE | 4.72% |
| UBS Group AG | 4.10% |
| Bayerische Motoren Werke AG | 3.92% |
| Apple, Inc. | 3.84% |
| Consteallation Brands, Inc. | 3.70% |
| Volkswagen AG | 3.64% |
| Industria de Diseno Textil SA | 3.06% |
Industry Breakdown as of 03-31-2024
| Sector | Percentage |
|---|---|
| Consumer Discretionary | 50.34% |
| Consumer Staples | 14.36% |
| Financial | 12.18% |
| Materials | 9.53% |
| Cash Equivalents | 7.72% |
| Information Technology | 3.85% |
| Communication Services | 1.95% |
| Energy | 0.07% |
Regional Breakdown as of 03-31-2024
| Region | Percentage |
|---|---|
| United States | 31.92% |
| France | 16.66% |
| Germany | 10.51% |
| Canada | 9.87% |
| Switzerland | 9.48% |
| Italy | 6.37% |
| Other | 15.19% |
Growth of $10,000 Over 10 Years as of 03/31/2024
The chart illustrates the performance of a hypothetical $10,000 investment made in the fund during the depicted time frame. Figures include reinvestment of capital gains and dividends, but the performance does not include the effect of any direct fees described in the fund’s prospectus (e.g., short-term trading fees) which, if applicable, would lower your total returns.
Month End Average Annual Total Returns as of 03/31/2024
| YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
| 9.21% | 14.29% | 9.72% | 7.01% | 8.35% | 1.75% |
Quarter End Average Annual Total Returns as of 03/31/2024
| YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
| 9.21% | 14.29% | 9.72% | 7.01% | 8.35% | 1.75% |
Expense ratio as stated in the most recent prospectus.
The Adviser of the Global Luxury Goods Fund has contractually limited total fund operating expenses (exclusive of acquired fund fees and expenses of extraordinary expenses, taxes, brokerage commissions and interest, and advisory fee performance adjustments) to not exceed 1.75% on an annualized basis through April 30, 2024. Total annual expenses after reimbursement of (0.24%) were 1.51%.
U.S. Global Investors, Inc. can modify or terminate the voluntary limits at any time, which may lower a fund’s yield or return.
Performance data quoted above is historical. Past performance is no guarantee of future results. Results reflect the reinvestment of dividends and other earnings. For a portion of periods, the fund had expense limitations, without which returns would have been lower. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Performance does not include the effect of any direct fees described in the fund’s prospectus which, if applicable, would lower your total returns. Performance quoted for periods of one year or less is cumulative and not annualized. Obtain performance data current to the most recent month-end at www.usfunds.com or 1-800-US-FUNDS. High double-digit returns are attributable, in part, to unusually favorable market conditions and may not be repeated or consistently achieved in the future.
Gold and Precious Metals Fund (USERX)
Fact Sheet
Fund Vitals:
NAV: $10.85
Change as of 04/15/2024
$-0.02
Ticker:
USERX
Inception Date:
07/01/1974
AUM
$100765942.34 as of 04/15/2024
How to Invest Request Info Download Prospectus
About the Gold and Precious Metals Fund
The Gold and Precious Metals Fund is the first no-load gold fund in the U.S. We have a history as pioneers in portfolio management in this specialized sector. Our team brings valuable background in geology and mining finance, important to understanding the technical side of the business. The fund focuses on producers, companies currently pulling gold or other precious minerals out of the ground. These companies, often called “seniors,” generally have the largest market caps in the mining sector.
Fund Objective
The Gold and Precious Metals Fund seeks capital appreciation while protecting against inflation and monetary instability. The fund also pursues current income as a secondary objective.
Fund Strategy
Under normal market conditions, the Gold and Precious Metals Fund will invest at least 80 percent of its net assets in equity securities of companies predominately involved in the mining, fabrication, processing, marketing, or distribution of metals including gold, silver, platinum group, palladium and diamonds. Gold companies include mining companies that exploit gold deposits that are supported by by-products and co-products such as copper, silver, lead and zinc, and also have diversified mining companies which produce a meaningful amount of gold. The fund focuses on selecting companies with established producing mines. The fund’s benchmark is the FTSE Gold Mines Index. Read more about U.S. Global Investors’ investment process.
The FTSE Gold Mines Index Series encompasses all gold mining companies that have a sustainable and attributable gold production of at least 300,000 ounces a year, and that derive 75% or more of their revenue from mined gold.
Gold and Precious Metals Fund (USERX)
The Gold and Precious Metals Fund rose 1.44% in 2023, underperforming its benchmark, the FTSE Gold Mines Index, which gained 12.41% on a total return basis. While focusing on established, gold-producing companies, the Gold and Precious Metals Fund holds roughly 50% of its holdings in precious metal miners that are greater than $1 billion in market capitalization; meanwhile, the FTSE Gold Mines Index’s average market capitalization is closer to $5.8 billion. See complete fund performance here.
Performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost.
The fund employed a defensive investment position from time to time in 2023, with higher-than-average cash balances on hand to protect its liquidity. However, to maintain varying degrees of investment exposure to the gold market, the fund utilized call option positions and directional ETFs, which are more liquid than options, to hedge the fund’s benchmark risks and provide optionality to upswings in gold stocks.
Strengths
- Being underweight Newmont, the largest member of the FTSE Gold Mines Index, was our best call on relative performance as it significantly underperformed its index peers. Newmont moved to purchase Newcrest Mining to create the largest gold mining company in the world.
- Owning Emerald Resources, which just began ramping up production this year, was one of the largest price gainers in 2023 and was the second largest contributor to the fund’s performance.
- The next best contributor to performance was Resolute Mining, which replaced their senior executive in the prior year. The company has appeared to have delivered a turnaround with a return to profitability in first half of 2023, following two years of losses.
Weaknesses
- K92 Mining was our third best performer in 2022, but in 2023 it was our largest burden. The company’s first quarter gold production of 2023 was impacted by temporarily challenging ground conditions, and they lost eight days of production at the end of the second quarter due to an underground vehicle indecent. K92 Mining is self-funding its third growth expansion and the two production issues led some investors to sell off the stock, fearing K92 would need to raise equity. The company finished the year without raising equity and had a very strong finish to the year with their fourth-quarter results.
- Gold Fields’ larger weighting in the benchmark resulted in lost opportunity.
- The third worst contributor to relative performance was underweighting Newcrest Mining, which received a takeout offer from Newmont Corp.
Opportunities
- A declining dollar could be a positive force for the gold price. The greenback has weakened as U.S interest rates are near a peak and the Federal Reserve’s aggressive tightening begins to take a toll on the world’s largest economy. Interest rates could fall in 2024.
- The merger of Newmont and Newcrest will result in the largest gold company in the world, with a combined market cap of $57 billion, producing 8.0-8.5 million ounces gold per annum at an all-in sustaining cost (AISC) of $1,065 per ounce. The company will have total gold reserves of 155 million ounces and total resources of 333 million ounces, and a mine life of 17 years. The proposed offer appears accretive to net asset value (NAV) and relatively neutral to near-term financial metrics, based on consensus estimates.
- Measured using the ratio of gold prices to S&P 500 total returns, the yellow metal has comfortably come out on top from the start to the end of each of the past three U.S. recessions. During the 2000 recession, the ratio went from 0.15 to 0.17 over the period defined by the National Bureau of Economic Research (NBER). During the global financial crisis, it nearly doubled from 0.34 to 0.62, and in the Covid recession, it climbed from 0.23 to 0.28.
Threats
- Gold purchases in India dropped to the lowest level since the Covid-19 pandemic hit the second-biggest consuming nation, with high domestic prices deterring buyers. Indians bought between 650 and 750 tons of the precious metal in 2023. The range is lower than the 774 tons bought in 2022 and the least since the 446 tons purchased in 2020.
- Most companies assumed inflationary pressures seen in 2023 would persist into 2024, but slowly taper off thereafter. Newmont’s five-year outlook sees long-run cash costs increasing $50 per ounce, or around 7% from the prior guide, and sustaining capex up $175 million annually. Higher gold prices will be needed to offset this.
- Palladium dropped to the lowest levels in five years as demand faltered amid a slowdown in car sales, the rise of electric vehicles and as users switched to cheaper platinum. The metal, which is almost entirely used in catalytic converters that curb emissions, may slump as slowing economic growth hurts global auto sales.
The FTSE Gold Mines Index encompasses all gold mining companies that have a sustainable and attributable gold production of at least 300,000 ounces a year, and that derive 75% or more of their revenue from mined gold.
Fund portfolios are actively managed, and holdings may change daily. Holdings are reported as of the most recent quarter-end. Holdings in the Gold and Precious Metals Fund as a percent of net assets as of 12/30/2023: Newmont Corp. 0.11%, Newcrest Mining Ltd. 0.00%, Emerald Resources NL 2.62%, Resolute Mining Ltd. 2.16%, K92 Mining Inc. 11.55%, Gold Fields Ltd. 2.14%.
Standard Disclosure
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. Foreside Fund Services, LLC, Distributor. U.S. Global Investors is the investment adviser.
All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.
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.
Top 10 Equity Holdings as of 03-31-2024
| Holding | Percentage |
|---|---|
| K92 Mining, Inc. | 8.45% |
| Aya Gold & Silver, Inc. | 6.90% |
| Aris Gold Corp. | 3.84% |
| OceanaGold Corp. 3.52% | 3.52% |
| Harmony Gold Mining Co., Ltd. | 3.39% |
| Vox Royalty Corp. | 3.26% |
| Alamos Gold, Inc. | 3.06% |
| Mineros SA | 2.71% |
| Ivanhoe Mines, Ltd. | 2.48% |
| Agnico Eagle Mines, Ltd. | 2.48% |
Industry Breakdown as of 03-31-2024
| Sector | Percentage |
|---|---|
| Gold, Precious Metals and Minerals | 90.47% |
| Cash Equivalents | 6.03% |
| Other | 3.50% |
Regional Breakdown as of 03-31-2024
| Region | Percentage |
|---|---|
| Canada | 64.93% |
| Australia | 15.48% |
| South Africa | 3.39% |
| United States | 3.80% |
| Other | 6.37% |
| Cash Equivalents | 6.03% |
Growth of $10,000 Over 10 Years as of 03/31/2024
The chart illustrates the performance of a hypothetical $10,000 investment made in the fund during the depicted time frame. Figures include reinvestment of capital gains and dividends, but the performance does not include the effect of any direct fees described in the fund’s prospectus (e.g., short-term trading fees) which, if applicable, would lower your total returns.
Month End Average Annual Total Returns as of 03/31/2024
| YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
| 3.94% | -1.91% | 8.45% | 5.20% | 0.67% | 1.55% |
Quarter End Average Annual Total Returns as of 03/31/2024
| YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
| 3.94% | -1.91% | 8.45% | 5.20% | 0.67% | 1.55% |
Expense ratio as stated in the most recent prospectus.
The Adviser of the Gold & Precious Metals Fund has voluntarily limited total fund operating expenses (exclusive of acquired fund fees and expenses of, extraordinary expenses, taxes, brokerage commissions and interest, and advisory fee performance adjustments) to not exceed 1.75%. With the voluntary expense waiver amount of (0.00%), total annual expenses after reimbursement were 1.55%.
U.S. Global Investors, Inc. can modify or terminate the voluntary limits at any time, which may lower a fund’s yield or return.
Performance data quoted above is historical. Past performance is no guarantee of future results. Results reflect the reinvestment of dividends and other earnings. For a portion of periods, the fund had expense limitations, without which returns would have been lower. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Performance does not include the effect of any direct fees described in the fund’s prospectus which, if applicable, would lower your total returns. Performance quoted for periods of one year or less is cumulative and not annualized. Obtain performance data current to the most recent month-end at www.usfunds.com or 1-800-US-FUNDS. High double-digit returns are attributable, in part, to unusually favorable market conditions and may not be repeated or consistently achieved in the future.
World Precious Minerals Fund (UNWPX)
Fact Sheet
Fund Vitals:
NAV: $1.51
Change as of 04/15/2024
$-0.01
Ticker:
UNWPX
Inception Date:
11/27/1985
AUM
$42630606.9 as of 04/15/2024
How to Invest Request Info Download Prospectus
About the World Precious Minerals Fund
The World Precious Minerals Fund complements our Gold and Precious Metals Fund by giving investors increased exposure to junior and intermediate mining companies for added growth potential. With a high level of expertise in this specialized sector, our portfolio management team includes professionals with experience in geology, mineral resources and mining finance.
Fund Objective
The World Precious Minerals Fund seeks long-term growth of capital while providing protection against inflation and monetary instability.
Fund Strategy
Under normal market conditions, the World Precious Minerals Fund will invest at least 80% of its net assets in common stock, preferred stock, convertible securities, rights and warrants, and depository receipts of companies principally engaged in the exploration for, or mining and processing of, precious minerals such as gold, silver, platinum group, palladium and diamonds. The fund focuses on selecting junior and intermediate exploration companies from around the world.
The fund’s benchmark is the NYSE Arca Gold Miners Index.
Read more about U.S. Global Investors’ investment process
The NYSE Arca Gold Miners Index is a modified market capitalization weighted index comprised of publicly traded companies involved primarily in the mining for gold and silver. The index benchmark value was 500.0 at the close of trading on December 20, 2002.
For the year ended December 31, 2023, the World Precious Minerals Fund fell 16.18%, underperforming its benchmark, the NYSE Arca Gold Miners Index, which gained 11.18% on a total return basis. Since the release of the new S&P/TSX Venture Precious Metals & Minerals Index on July 25, 2023, which better reflects the mix of small-cap junior mining companies the fund typically invests in, it had declined 38.35% by yearend. For the same performance period, the World Precious Minerals Fund had only fallen 19.02%. See complete fund performance here.
Performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost.
Strengths
- Being underweight Newmont, the largest member of the FTSE Gold Mines Index, was our best call on relative performance as it significantly underperformed its index peers. Newmont moved to purchase Newcrest Mining to create the largest gold mining company in the world.
- Being underweight Franco-Nevado was our second biggest contributor to fund performance. Franco-Nevada’s largest precious metal stream in their portfolio has been compromised by the Panamanian shutdown of the Cobre Panama Mine operated by First Quantum Minerals in the fourth quarter of 2023.
- Radisson Mining Resources was our third largest contributor to performance, with a near doubling of its share price over the year with its updated resource statement for the O’Brian project that doubled the resource ounces to just under one million ounces of gold and raised the gold grades by nearly 50%.
Weaknesses
- Arizona Metals had the most significant impact to performance, due to position size, as it declined in line with other exploration and development companies over the course of the year. Because Arizona Metals has sufficient cash to continue to fund its exploration program at the Kay Mine, initially developed by Exxon Mobil, for the next two and half years at their current burn rate of $4 million per quarter, the company is much better positioned to advance their project with no dilution in the near term.
- TriStar Gold was our second heaviest burden in 2023, due to position size rather than poor performance relative to its peers. Tristar had limited exploration results to release as management was focused on moving the perming process forward for the Castelo de Sonhos gold project in Pará State, Brazil. In November, a milestone was achieved with the public hearing for the granting of the Preliminary License to operate a mine. There is no formal timeline for the approval of permits, but there is significant community support for the project. TriStar believes Q1 2024 is appropriate. Brazil is a mining friendly country and TriStar will have finally de-risked the project to shovel ready status, suitable for an acquisition.
- Barksdale Resources was the third largest contributor to the fund’s underperformance due to its position size as relative price weakness was like its peers. Barksdale’s property boundary with South32’s Talor Deposit, a couple hours south of Phoenix, was purchased from Arizona Mining for $1.6 billion. There is an historic existing drill hole that documents the ore body being under their land too. Permitting with the U.S. Forest Service delayed the drilling on the property until November 2023.
Opportunities
- Current precious metal company valuations (especially junior names) are near record lows and present a compelling entry point for investors looking to capture long-term value. The VanEck Vectors Junior Gold Miners ETF (GDXJ) is four standard deviations below the level implied by a 10-year daily regression with the gold price primed for a re-rate as precious metals come back into vogue through the next part of the market cycle.
- Yamana Gold’s founder Peter Marrone commented that the gold sector will likely see more mergers and acquisitions (M&A) as miners look to maintain margins in a higher-cost and lower gold-grade environment. He says: The “gold price today is roughly where it was in late 2020… but interestingly the margins have decreased quite substantially for almost all of the companies… It seems to me that we are going into universally, lower grades, higher costs, inflationary impacts.”
- With some signs of relief in inflationary pressures on operating costs, investors should start to consider rotating from the higher valued streamers (that are insulated from inflationary pressures in costs due to the nature of their business) into the lower valued operators. This is because: (1) companies have started to see easing of inflationary pressures in various input costs, which should be fully reflected in their costs once the higher cost inventories are drawn down; and (2) companies are expecting higher volumes, which should also help with the costs.
Threats
- Mali has adopted a new mining code following prior reports that proposed changes were in the works to increase state ownership in new projects from 20% to 35%. B2Gold recently noted that its Fekola mine in Mali is governed by the 2012 mining code, so would not be susceptible to changes under any future mining code.
- Morgan Stanley’s historical analysis on gold, which has focused on real yields versus real gold price, has been shifting. Running this analysis had an R2 of 92% in 2018-21, which fell to 63% in 2022 and is now just 30%. This would imply gold somewhere below $1,300 per ounce.
- According to Bank of America noted that for diamonds they think that higher rates and weaker growth could put the consumer under pressure which translates to less diamond demand and downward pressure on prices. They now model slower price recovery. There key issues for near term outlook: 1) Mid-stream de-stocking. 2) U.S. recession risk. 3) Lab grown diamonds.
The NYSE Arca Gold Miners Index is a modified market capitalization weighted index comprised of publicly traded companies involved primarily in the mining for gold and silver. Standard deviation is a measure of the amount of variation of a random variable expected about its mean.
Fund portfolios are actively managed, and holdings may change daily. Holdings are reported as of the most recent quarter-end. Holdings in the World Precious Minerals Fund as a percentage of net assets as of 12/30/2023: Newmont Corp. 0.11%, Franco-Nevada Corp. 0.00%, First Quantum Minerals Ltd. 0.00%, Radisson Mining Resources Inc. 3.23%, Arizona Metals Corp. 4.27%, Exxon Mobil Corp. 0.00%, TriStar Gold Inc. 4.53%, Barksdale Resources Corp. 2.38%, South32 ADR 0.00%, VanEck Vectors Junior Gold Miners ETF 0.00%, Yamana Gold Inc. 0.00%.
Standard Disclosure
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. Foreside Fund Services, LLC, Distributor. U.S. Global Investors is the investment adviser.
All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.
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.
Top 10 Equity and Debt Holdings as of 03-31-2024
| Holding | Percentage |
|---|---|
| Nano One Materials Corp. | 8.83% |
| K92 Mining, Inc. | 7.15% |
| TriStar Gold, Inc. | 7.08% |
| Ivanhoe Mines, Ltd. | 3.82% |
| Arizona Metals Corp. | 3.82% |
| Dolly Varden Silver Corp. | 3.29% |
| Radisson Mining Resources, Inc. | 3.23% |
| Asante Gold Corp. | 3.07% |
| Vizsla Silver Corp. | 3.01% |
| First Nordic Metals Corp. | 2.50% |
Industry Breakdown as of 03-31-2024
| Sector | Percentage |
|---|---|
| Gold, Precious Metals and Minerals | 94.97% |
| Other | 5.03% |
Regional Breakdown as of 03-31-2024
| Region | Percentage |
|---|---|
| Canada | 80.97% |
| United States | 7.97% |
| Australia | 6.19% |
| Other | 4.87% |
Growth of $10,000 Over 10 Years as of 03/31/2024
The chart illustrates the performance of a hypothetical $10,000 investment made in the fund during the depicted time frame. Figures include reinvestment of capital gains and dividends, but the performance does not include the effect of any direct fees described in the fund’s prospectus (e.g., short-term trading fees) which, if applicable, would lower your total returns.
Month End Average Annual Total Returns as of 03/31/2024
| YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
| -2.07% | -21.55% | -0.32% | -3.54% | 1.57% | 1.62% |
Quarter End Average Annual Total Returns as of 03/31/2024
| YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
| -2.07% | -21.55% | -0.32% | -3.54% | 1.57% | 1.62% |
Expense ratios as stated in the most recent prospectus.
The Adviser of the World Precious Minerals Fund has voluntarily limited total fund operating expenses (exclusive of acquired fund fees and expenses of extraordinary expenses, taxes, brokerage commissions and interest, and advisory fee performance adjustments) to not exceed 1.75%. With the voluntary expense waiver amount of (0.16%), total annual expenses after reimbursement were 1.46%.
U.S. Global Investors, Inc. can modify or terminate the voluntary limits at any time, which may lower a fund’s yield or return.
Performance data quoted above is historical. Past performance is no guarantee of future results. Results reflect the reinvestment of dividends and other earnings. For a portion of periods, the fund had expense limitations, without which returns would have been lower. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Performance does not include the effect of any direct fees described in the fund’s prospectus which, if applicable, would lower your total returns. Performance quoted for periods of one year or less is cumulative and not annualized. Obtain performance data current to the most recent month-end at www.usfunds.com or 1-800-US-FUNDS. High double-digit returns are attributable, in part, to unusually favorable market conditions and may not be repeated or consistently achieved in the future.
Global Resources Fund (PSPFX)
Fact Sheet
Fund Vitals:
NAV: $3.97
Change as of 04/15/2024
$-0.01
Ticker:
PSPFX
Inception Date:
08/03/1983
AUM
$43057973 as of 04/15/2024
How to Invest Request Info Download Prospectus
About the Global Resources Fund
The Global Resources Fund takes a multi-faceted approach to the natural resources sector by investing in energy and basic materials. The fund invests in companies involved in the exploration, production and processing of petroleum, natural gas, coal, alternative energies, chemicals, mining, iron and steel, and paper and forest products, and can invest in any part of the world.
Fund Objective
The Global Resources Fund seeks long-term growth of capital while providing protection against inflation and monetary instability.
Fund Strategy
Under normal market conditions, the Global Resources Fund normally invests at least 80 percent of its net assets in the common stock, preferred stock, convertible securities, rights and warrants, and depository receipts of companies involved in the natural resources industries. The fund may invest without limitation in any of the various natural resources industries.
Read more about U.S. Global Investors’ investment process.
For the year ended December 31, 2023, the Global Resources Fund lost 7.67%, underperforming the fund’s benchmark, the S&P Global Natural Resources Index (Net Total Return), which gained 3.38%. The Global Resources Fund invests in exploration and development companies and the junior mining and energy sector, unlike our benchmark, which is principally invested in large-capitalization natural resources companies with established revenue streams; as a result, there can be timing swings where money flows first to the most liquid names before investors go down market. See complete fund performance here.
Performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost.
Strengths
- The three strongest commodities for the year were uranium, iron ore and sugar, up 89%, 22% and 15%, respectively. Uranium markets are facing a deficit from production shortfalls from the major uranium producers at a time when utilities need to renew their long-term purchase contracts. In addition, nuclear is increasingly viewed as needed to lower greenhouse gas emissions. Iron ore prices firmed up in 2023 as both Australia and Brazil has produced lower-than-expected ore keeping inventories tight. Drought conditions in sugar-growing regions of India, Thailand and China have led to lower crop yields this year.
- The three best sector calls for the fund were an underweight position in agriculture chemicals, which declined 19%; underweight position in specialty chemicals, which slid 23%; and underweight commodities/milling agriculture products, which fell 13%. A common theme was declining fertilizer prices and abundant grain supplies with corn and wheat prices both off 24% for the year.
- The three best dollar performing stock decisions were New Stratus Energy, Nutrien and Ivanhoe Mines. New Stratus Energy reaped more than a threefold price gain after the U.S. removed oil sanctions on Venezuela in 2023, and their management team, which hails from Venezuela, has struck production agreements to start oil production in Q1 2024. The fund was significantly underweight Nutrien as its share price fell due to their dropping revenue from falling fertilizer prices. Ivanhoe’s share price had some strong and weak moments over 2023 but finished the year strongly with the release of the maiden mineral resource estimate of 5 million metric tons of copper for its high-grade Makoko and Kiala deposits within the Western Foreland Exploration Project adjacent to their Kamoa-Kakula copper mine.
Weaknesses
- The three weakest commodities for the year were lithium carbonate, natural gas and nickel, down 82%, 49% and 45%, respectively. The fall in lithium carbonate price was largely driven by the ease to develop and the abundance of new projects as lithium is not scarce. Both nickel and lithium prices were impacted by falling investment momentum in the electric vehicle sector as the year end approached. Natural gas prices declined as high storage inventories weighed on the market. The U.S. also saw record natural gas production in October and November.
- The fund’s worst-performing sectors were our overweight positions in precious metals which lost 15%, overweight other metals and minerals which fell 9%, and underweight steel which gained 23%. Despite the gold price gain of 13% in 2023, it was not competitive with speculative investors when Bitcoin surged 155% in 2023 on anticipation the Securities and Exchange Commission (SEC) would approve Bitcoin-based ETFs. Junior mining stocks were eschewed in favor of cryptocurrencies.
- The three worst dollar impacting stock decisions were Filo, Barksdale Resources and Shell. Filo shows up as a large dollar decliner due to its position size in the fund. The company made a large copper discovery in Chile, which triggered BHP to purchase a stake in the company. Barksdale Resources was the second largest contributor to the fund’s underperformance due to its position size as relative price weakness was like its peers. Barksdale had deep value as illustrated by their property boundary with South32’s Talor Deposit was purchased from Arizona Mining for $1.6 billion. There is an historic existing drill hole that documents the ore body being under their land too. Permitting with the U.S. Forest Service delayed the drilling on the property until November of 2023. We did not have any exposure to Shell over the course of the year. It is a large weighting in the benchmark and did have a positive gain for the year.
Opportunities
- Big Oil’s redemption roadmap will keep unfolding for those finding the following three signposts: (1) Continued capex discipline (below average 7% growth in Big Oil budgets); (2) instead favoring shareholder distributions; (3) underestimated cash flow resilience from earnings per share support from above-average buybacks.
- Uranium prices moved higher in 2023 as activity picked up, with a pick-up in financial/company buying and utility interest. Increase demand for nuclear power is driving prices higher. In the news, the French government and state-utility EDF agreed on a deal for nuclear power prices that should help support nuclear build-out plans while tempering price volatility for consumers.
- Copper presents an opportunity due to its importance in the energy transition. Copper was strong after the closure of a major mine in Panama highlighted future supply challenges for the red metal as the energy transition accelerates. The mine, which produced about 1.5% of the world’s supply of the industrial metal, was the subject of mass protests from environmentalists and labor unions.
Threats
- Nickel, used in both batteries and stainless steel, traded near a two-year low in 2023 after suffering a steady decline as a wave of new production from Indonesia overwhelmed sputtering demand. Declining forecasts for electric vehicle (EV) production have hurt pricing as well.
- The global lithium market is facing a supply crunch toward the end of this decade amid wider adoption of EVs, with more than $51 billion in investments needed to meet future demand of rechargeable batteries.
- Coal demand is likely to continue to decline. Electricity generated from U.S. solar and wind systems will surpass power produced by burning coal for the first-time in 2024, driven by surging panel installations. Coal will produce about 599 billion kilowatt-hours in 2024. That will be down from 669 billion kilowatt-hours in 2023 as utilities continue to shutter coal-burning power plants.
The S&P Global Natural Resources Index includes 90 of the largest publicly traded companies in natural resources and commodities businesses that meet specific investability requirements, offering investors diversified, liquid and investable equity exposure across 3 primary commodity-related sectors: Agribusiness, Energy, and Metals & Mining.
Fund portfolios are actively managed, and holdings may change daily. Holdings are reported as of the most recent quarter-end. Holdings in the Global Resources Fund as a percentage of net assets as of 12/30/2023: New Stratus Energy Inc. 2.23%, Nutrien Ltd. 0.00%, Ivanhoe Mines Ltd. 6.73%, Filo Corp. 5.26%, Barksdale Resources Corp. 1.10%, Shell Plc 0.00%, BHP Group Ltd. 0.00%, Arizona Metals Corp. 0.00%.
Standard Disclosure
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. Foreside Fund Services, LLC, Distributor. U.S. Global Investors is the investment adviser.
All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.
Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk. Because the Global Resources Fund concentrates its investments in specific industries, the fund may be subject to greater risks and fluctuations than a portfolio representing a broader range of industries.
Top 10 Equity and Debt Holdings as of 03-31-2024
| Holding | Percentage |
|---|---|
| Abaxx Technologies, Inc. | 6.89% |
| Ivanhoe Mines, Ltd. | 6.19% |
| Filo Corp. | 4.83% |
| Cheniere Energy, Inc. | 2.79% |
| Aris Gold Corp. | 2.17% |
| Linde PLC | 2.14% |
| Kimbell Royalty Partners LP | 1.97% |
| OceanaGold Corp. | 1.82% |
| Viper Energy, Inc. | 1.77% |
| New Stratus Energy, Inc. | 1.61% |
Industry Breakdown as of 03-31-2024
| Sector | Percentage |
|---|---|
| Basic Materials | 49.28% |
| Energy | 24.63% |
| Technology | 8.06% |
| Funds | 7.99% |
| Cash Equivalents | 6.35% |
| Utilities | 1.69% |
| Financial | 1.37% |
| Industrial | 0.41% |
| Consumer Staples | 0.22% |
Regional Breakdown as of 03-31-2024
| Region | Percentage |
|---|---|
| Canada | 49.95% |
| United States | 32.70% |
| Cash Equivalents | 6.35% |
| Australia | 4.67% |
| United Kingdom | 3.29% |
| Jersey | 1.04% |
| Netherlands | 0.91% |
| Other | 1.09% |
Growth of $10,000 Over 10 Years as of 03/31/2024
The chart illustrates the performance of a hypothetical $10,000 investment made in the fund during the depicted time frame. Figures include reinvestment of capital gains and dividends, but the performance does not include the effect of any direct fees described in the fund’s prospectus (e.g., short-term trading fees) which, if applicable, would lower your total returns.
Month End Average Annual Total Returns as of 03/31/2024
| YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
| 0% | -8.53% | 5.69% | -3.37% | 3.18% | 1.60% |
Quarter End Average Annual Total Returns as of 03/31/2024
| YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
| 0% | -8.53% | 5.69% | -3.37% | 3.18% | 1.60% |
Expense ratios as stated in the most recent prospectus.
The Adviser of the Global Resources Fund has voluntarily limited total fund operating expenses (exclusive of acquired fund fees and expenses of extraordinary expenses, taxes, brokerage commissions and interest, and advisory fee performance adjustments) to not exceed 1.75%. With the voluntary expense waiver amount of (0.12%), total annual expenses after reimbursement were 1.48%.
U.S. Global Investors, Inc. can modify or terminate the voluntary limits at any time, which may lower a fund’s yield or return.
Performance data quoted above is historical. Past performance is no guarantee of future results. Results reflect the reinvestment of dividends and other earnings. For a portion of periods, the fund had expense limitations, without which returns would have been lower. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Performance does not include the effect of any direct fees described in the fund’s prospectus which, if applicable, would lower your total returns. Performance quoted for periods of one year or less is cumulative and not annualized. Obtain performance data current to the most recent month-end at www.usfunds.com or 1-800-US-FUNDS. High double-digit returns are attributable, in part, to unusually favorable market conditions and may not be repeated or consistently achieved in the future.
Near-Term Tax Free Fund (NEARX)
Fact Sheet
Fund Vitals:
NAV: $2.09
Change as of 04/15/2024
$0.00
Ticker:
NEARX
Inception Date:
12/04/1990
AUM
$25499155.92 as of 04/15/2024
How to Invest Request Info Download Prospectus
About the Near-Term Tax Free Fund
The Near-Term Tax Free Fund invests in municipal bonds with relatively short maturity. The fund seeks to provide tax-free monthly income by investing in debt securities issued by state and local governments from across the country.
Fund Objective
The Near-Term Tax Free fund seeks current income that is exempt from federal income tax and also seeks preservation of capital.
Fund Strategy
Under normal market conditions, the Near-Term Tax Free Fund invests at least 80 percent of its net assets in investment grade municipal securities whose interest is free from federal income tax, including the federal alternative minimum tax. The Near-Term Tax Free Fund will maintain a weighted-average portfolio maturity of five years or less.
The fund’s portfolio team applies a two-step approach in choosing investment, beginning by analyzing various macroeconomic factors in an attempt to forecast interest rate movements, and then positioning the fund’s portfolio by selecting investments that it believes fit that forecast.
The fund’s benchmark is the Barclay’s Capital 3-Year Municipal Bond Index.
Read more about U.S. Global Investors’ investment process
The Barclay 3-Year Municipal Bond Index is a total return benchmark designed for long-term municipal assets. The index includes bonds with a minimum credit rating BAA3, are issued as part of a deal of at least $50 million, have an amount outstanding of at least $5 million and have a maturity of 8 to 12 years.
For the year ended December 31, 2022, the Near-Term Tax Free Fund returned 3.04%, underperforming its benchmark, the Bloomberg Barclays 3-Year Municipal Bond Index, which gained 3.46%. The Lipper Short-Intermediate Municipal Bond average return was 3.99%.
With the shortened duration achieved last year, NEARX remained well positioned for the first three quarters where we had a margin of +61 basis points (bps) to the benchmark with the short end of the curve offering more yield. However, in the fourth quarter, the Treasury market began to speculate that the Federal Reserve would cut interest rates as early as March 2024, pushing market yields down across the year curve where longer-dated bonds appreciated more in price in the fourth quarter. See complete fund performance here.
Performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost.
Strengths
- The fund’s allocation to bonds from Texas, Minnesota and New Jersey made the biggest contribution to the fund’s return as we overweighted these credits relative to underweighting New York and California.
- The fund benefited from its allocation to overweight general obligation, underweight general and overweight school district bonds were the strongest subindustry returns.
- Our shorter duration of about 1.35 years offered higher current income for the first three quarters of 2023.
Weaknesses
- The fund’s allocation to bonds from Georgia, Mississippi and Kansas underperformed. We were underweight Georgia as there is limited supply offered in the secondary market with typical buyers holding to maturity. Mississippi and Kansas were held like benchmark weights and in total represented 1.16% of the fund.
- The fund’s exposure to multifamily housing, utilities and development bonds contributed the least to our returns as these subindustries accounted for only about 5% of the benchmark.
- Our shorter duration of about 1.35 years did not offer as much price appreciation from expectations of falling yields in the final quarter of 2023.
Current Outlook
We believe that the recovery in fixed income markets last year as U.S. economic fundamentals improved, along with higher yields for investors, bodes well for investor sentiment in the municipal bond market, where investors can acquire tax-free interest.
With the help of the Infrastructure Investment and Jobs Act, signed into law in November 2021, $1.2 trillion of infrastructure and transportation spending has been a boon to state and local economies. Tax receipts for state and local governments moderated in 2023 as growth stalled somewhat with the rise in interest rates.
Municipal credit rating upgrades significantly outpaced downgrades in 2023, and we expect the positive momentum to continue. The Fed is expected to start cutting interest rates this year, barring unforeseen data; the timing window could come open as early as March, but forecasters are increasingly predicting May.
The Barclays 3-Year Municipal Bond Index is a total return benchmark designed for short-term municipal assets. The index includes bonds with a minimum credit rating BAA3, are issued as part of a deal of at least $50 million, have an amount outstanding of at least $5 million and have a maturity of 2 to 4 years.
A basis point, or bp, is a common unit of measure for interest rates and other percentages in finance. One basis point is equal to 1/100th of 1%, or 0.01% (0.0001).
Standard Disclosure
Please consider carefully a fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a fund prospectus by calling 1-800-US-FUNDS (1-800-873-8637). Read it carefully before investing. Foreside Fund Services, LLC, Distributor. U.S. Global Investors is the investment adviser.
All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.
Bond funds are subject to interest-rate risk; their value declines as interest rates rise. Though the Near-Term Tax Free Fund seeks minimal fluctuations in share price, it is subject to the risk that the credit quality of a portfolio holding could decline, as well as risk related to changes in the economic conditions of a state, region or issuer. These risks could cause the fund’s share price to decline. Tax-exempt income is federal income tax free. A portion of this income may be subject to state and local taxes and at times the alternative minimum tax. The Near-Term 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.
Top 10 Holdings as of 03-31-2024
| Holding | Percentage |
|---|---|
| County of Chisago MN | 4.39% |
| Harris County Water Control & Improvement District No. 21 | 3.92% |
| Williamsport Sanitary Authority | 3.06% |
| Tulsa Public Facilities Authority | 2.95% |
| Port St. Lucie Community Redevelopment Agency | 2.80% |
| City of Rio Rancho NM | 2.51% |
| Massachusets Port Authority | 2.20% |
| Los Alamos Public School District | 2.08% |
| Delaware River Port Authority | 2.06% |
| Nixa Public Schools | 2.04% |
Industry Breakdown as of 03-31-2024
| Sector | Percentage |
|---|---|
| General Obligation | 51.00% |
| School District | 10.75% |
| Water | 9.49% |
| Medical Facilities | 6.47% |
| Transportation | 5.30% |
| Cash Equivalents | 4.32% |
| Higher Education | 4.01% |
| Education | 2.09% |
| Power | 1.99% |
| Single Family Homes | 1.15% |
| Development | 1.00% |
| Utilities | 0.96% |
| Airport | 0.87% |
| Multi Family Homes | 0.60% |
Top 5 States as of 03-31-2024
| Sector | Percentage |
|---|---|
| Pennsylvania | 9.22% |
| Texas | 8.71% |
| Oklahoma | 5.76% |
| Minnesota | 5.40% |
| New Mexico | 4.85% |
Growth of $10,000 Over 10 Years as of 03/31/2024
The chart illustrates the performance of a hypothetical $10,000 investment made in the fund during the depicted time frame. Figures include reinvestment of capital gains and dividends, but the performance does not include the effect of any direct fees described in the fund’s prospectus (e.g., short-term trading fees) which, if applicable, would lower your total returns.
Month End Average Annual Total Returns as of 03/31/2024
| YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
| 0.12% | 2.19% | 0.32% | 0.72% | 3.18% | 1.21% |
Quarter End Average Annual Total Returns as of 03/31/2024
| YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
| 0.12% | 2.19% | 0.32% | 0.72% | 3.18% | 1.21% |
Expense ratios as stated in the most recent prospectus.
The Adviser of the Near-Term Tax Free Fund has contractually limited the total fund operating expenses (exclusive of acquired fund fees and expenses, extraordinary expenses, taxes, brokerage commissions and interest) to not exceed 0.45% on an annualized basis through April 30, 2024. Total annual expenses after the waiver of (0.75%) were 0.46%. The fund’s yield calculation is based on the holdings’ yield to maturity for prior 30 days; distribution may differ.
U.S. Global Investors, Inc. can modify or terminate the voluntary limits at any time, which may lower a fund’s yield or return.
Performance data quoted above is historical. Past performance is no guarantee of future results. Results reflect the reinvestment of dividends and other earnings. For a portion of periods, the fund had expense limitations, without which returns would have been lower. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Performance does not include the effect of any direct fees described in the fund’s prospectus which, if applicable, would lower your total returns. Performance quoted for periods of one year or less is cumulative and not annualized. Obtain performance data current to the most recent month-end at www.usfunds.com or 1-800-US-FUNDS. High double-digit returns are attributable, in part, to unusually favorable market conditions and may not be repeated or consistently achieved in the future.
U.S. Government Securities Ultra-Short Bond Fund (UGSDX)
Fact Sheet
Fund Vitals:
NAV: $1.95
Change as of 04/15/2024
$0.00
Ticker:
UGSDX
Inception Date:
11/01/1990
AUM
$30513741 as of 04/15/2024
How to Invest Request Info Download Prospectus
About the U.S. Government Securities Ultra-Short Bond Fund
The U.S. Government Securities Ultra-Short Bond Fund is designed to be used as an investment that takes advantage of the security of U.S. Government bonds and obligations, while simultaneously pursuing a higher level of current income than money market funds offer.
Fund Objective
The U.S. Government Securities Ultra-Short Bond Fund seeks to provide current income and preserve capital.
Fund Strategy
Under normal market conditions, the fund invests at least 80% of its net assets in United States Treasury debt securities and obligations of agencies and instrumentalities of the United States, including repurchase agreements collateralized with such securities. The fund’s dollar-weighted average effective maturity will be two years or less.
The fund’s benchmark is the Barclays U.S. Treasury Bills 6-9 Months Total Return Index
Read more about U.S. Global Investors’ investment process
The Barclays U.S. Treasury Bills 6-9 Months Total Return Index tracks the performance of U.S. Treasury Bills with a maturity of six to nine months.
The U.S. Government Securities Ultra-Short Bond Fund returned 4.17% for the year ended December 31, 2023, underperforming its benchmark, the Barclays U.S. Treasury Bills 6-9 Months Total Return Index, which returned 4.59%. The Lipper Short U.S. Treasury Funds Average return for the peer group returned 4.60%.
UGSDX slightly underperformed the benchmark and the Lipper peer group average. The duration of the fund averaged about nine months for the first three quarters of the year, and the fund performed in line with the benchmark. Maturing notes were rolled slightly farther out on the yield curve, raising during to slightly more than a year to be more advantageously positioned, should yields continue to fall in 2024. See complete fund performance here.
Performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost.
Current Outlook
We believe that the recovery in fixed income markets last year as U.S. economic fundamentals improved, along with higher yields for investors, bodes well for investor sentiment toward the bond market in 2024. The Federal Reserve is expected to start cutting interest rates this year, barring unforeseen data; the timing window could come open as early as March, but forecasters are increasingly predicting May.
Going forward, we believe the principal threat to the credit market is the $560 billion of commercial real estate loans held by banks that are dbue for maturity before the end of 2025. There are substantial risks, particularly for office properties, facing markdowns before they can be refinanced. A meltdown in the banking sector from a commercial real estate crisis would put stress on credit markets and could push interest rates higher in 2024. That said, the consensus is more constructive on the future, but there is likely to be some volatility around major economic data. This might provide an opportunity to add to positions on any price weakness.
The Barclays U.S. Treasury Bills 6-9 Months Total Return Index tracks the performance of U.S. Treasury Bills with a maturity of six to nine months. Gross domestic product is the total value of goods produced and services provided in a country for one year. The personal consumption expenditures index reflects changes in the prices of goods and services purchased by consumers in the U.S.
Standard Disclosure
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. Foreside Fund Services, LLC, Distributor. U.S. Global Investors is the investment adviser.
Bond funds are subject to interest-rate risk; their value declines as interest rates rise.
All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.
Issuer Breakdown as of 03-31-2024
| Federal Home Loan Mortage Company | 38.13% |
| U.S. Treasury Bill | 22.44% |
| Federal Farm Credit Bank | 22.02% |
| Federal Home Loan Bank | 17.41% |
U.S. Government Securities Ultra-Short Bond Fund
Growth of $10,000 Over 10 Years as of 03/31/2024
The chart illustrates the performance of a hypothetical $10,000 investment made in the fund during the depicted time frame. Figures include reinvestment of capital gains and dividends, but the performance does not include the effect of any direct fees described in the fund’s prospectus (e.g., short-term trading fees) which, if applicable, would lower your total returns.
Month End Average Annual Total Returns as of 03/31/2024
| YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
| 1.04% | 3.90% | 0.88% | 0.77% | 2.38% | 1.13% |
Quarter End Average Annual Total Returns as of 03/31/2024
| YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
| 1.04% | 3.90% | 0.88% | 0.77% | 2.38% | 1.13% |
Expense ratios as stated in the most recent prospectus.
The Adviser of the U.S. Government Securities Ultra-Short Bond Fund has voluntarily limited total fund operating expenses (exclusive of acquired fund fees and expenses, extraordinary expenses, taxes, brokerage commissions and interest) to not exceed 0.45%. With the voluntary expense waiver amount of (0.68%), total annual expenses after reimbursement were 0.45%. The fund’s yield calculation is based on the holdings’ yield to maturity for prior 30 days; distribution may differ.
U.S. Global Investors, Inc. can modify or terminate the voluntary limits at any time, which may lower a fund’s yield or return.
Performance data quoted above is historical. Past performance is no guarantee of future results. Results reflect the reinvestment of dividends and other earnings. For a portion of periods, the fund had expense limitations, without which returns would have been lower. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Performance does not include the effect of any direct fees described in the fund’s prospectus which, if applicable, would lower your total returns. Performance quoted for periods of one year or less is cumulative and not annualized. Obtain performance data current to the most recent month-end at www.usfunds.com or 1-800-US-FUNDS. High double-digit returns are attributable, in part, to unusually favorable market conditions and may not be repeated or consistently achieved in the future.