Tax Free Fund

Fund Vitals

NAV: $12.32
as of 03/15/2010
Change: 0.00 (0.00)

Ticker: USUTX

Inception Date: 11/1/1984

Fund Category: General Municipal Debt

AUM: $22.1M as of 12/31/2009

Fund Fact Sheet
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Morningstar Rating

5-year Rating as of 12/31/09

Morningstar 5-year Rating™. Among 219, 219, 198 and 128 Municipal National Intermediate funds, the Tax Free Fund earned 3 stars, 3 stars, 4 stars and 3 stars for the overall, 3-, 5- and 10-year periods 12/31/09. Ratings are based on risk-adjusted return. The Overall Morningstar Rating for a fund is derived from a weighted-average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. Past performance does not guarantee future results.

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January 2010

In January, the Barclay’s Municipal Bond Index rose by 0.52 percent as questions arose regarding the strength of the global economy. Broadly speaking, economic data was generally positive but trouble spots remain. Manufacturing indicators continue to improve and are a good early indicator that the economy is recovering. Housing is struggling to make significant headway and appears to be bouncing along with no clear confirmation of a recovery at hand. Consumer confidence has recovered some but still remains somewhat depressed as high unemployment takes its toll on consumer outlook.

Returns in the municipal market were driven by the middle of the curve, as the 5- to 10- year portion of the curve outperformed. In specialty state trading, Puerto Rico, Ohio and California outperformed, while, Texas, Illinois and Arizona lagged. As a group, revenue bonds outperformed general obligation credits; with relative strength seen in hospitals and industrial development issues. Lower-quality bonds generally underperformed, as BBB-rated bonds rose one percent, while AAA-rated bonds appreciated just 40 basis points. Central bankers and policy makers around the world remain accommodative even as the global economy appears to be in recovery mode. The Fed left interest rates unchanged during the month and the Fed seems to be in no hurry to change policy at the moment. The Fed will likely wait until the economy is showing definitive signs of a recovery before taking action to raise interest rates.

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 Barclays Capital Municipal Bond Index is an unmanaged index representative of the tax-exempt bond market.

Net Asset Value
as of 03/15/2010

Global Resources Fund
PSPFX $9.27 -0.07
Gold and Precious Metals Fund
USERX $15.02 -0.10
World Precious Minerals Fund
UNWPX $17.53 -0.10
China Region Fund
USCOX $8.35 -0.04
Eastern European Fund
EUROX $9.32 -0.09
Global Emerging Markets Fund
GEMFX $8.04 -0.04
Global MegaTrends Fund
MEGAX $8.03 -0.04
All American Equity Fund
GBTFX $20.10 -0.01
Holmes Growth Fund
ACBGX $16.09 -0.08
Tax Free Fund
USUTX $12.32 No Change
Near-Term Tax Free Fund
NEARX $2.23 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 clicking here 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.

Read additional important information.

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. The tax free funds may be exposed to risks related to a concentration of investments in a particular state or geographic area. These investments present risks resulting from changes in economic conditions of the region or issuer.

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.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.

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