First Quarter 2018

For the March quarter, the Barclays U.S. Treasury Bills 6-9 Months Index returned 0.31 percent, while the U.S. Government Securities Ultra-Short Bond Fund was down 0.25 percent. See complete fund performance here.

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.

U.S. tax cuts and fiscal stimulus helped firm up inflation and growth expectations in the first month of the quarter, pushing up global equities and bond yields. However, the remainder of the quarter saw market volatility surge, reversing last year’s trend of subdued volatility. Most asset categories bounced around before finishing the quarter in modestly negative territory. A number of events catalyzed the spike in volatility amid an escalation of geopolitical risks, including a sustained path of monetary tightening by the Federal Reserve, an aggressive trade posture by the U.S., and regulatory concerns around large technology companies. Yields and spreads generally remained at the lower end of the historical range, despite interest rates inflecting higher during the quarter. Credit spreads widened slightly amid higher asset volatility during the quarter, but remain expensive on a relative basis compared to their long-term histories. The Fed continued its “normalization” campaign, with ongoing balance sheet withdrawal and likely at least three total rate hikes this year.

The U.S. economy is showing a transition from mid-cycle to late-cycle dynamics. Tighter employment markets have pushed up wages, although the level of wage growth still lags behind the Fed’s expectations. Further, the Fed’s tightening of monetary policy has flattened the yield curve over the past year. However, credit conditions are not yet restrictive. Headline inflation in the U.S. has steadily risen since the middle of last year and will likely remain firm over the near term. The combination of tax cuts and higher fiscal spending are likely to provide a modest boost to economic growth, but the growth multiplier from fiscal stimulus is lower than it would have been had it been implemented earlier in the cycle. As a result, stimulative fiscal policy and rising deficits may also put upward pressure on inflation and bond yields.

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.

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 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.


Net Asset Value
as of 09/18/2018

Global Resources Fund PSPFX $5.37 0.05 Gold and Precious Metals Fund USERX $6.57 No Change World Precious Minerals Fund UNWPX $3.49 0.06 China Region Fund USCOX $9.02 0.15 Emerging Europe Fund EUROX $6.36 0.09 All American Equity Fund GBTFX $26.52 0.12 Holmes Macro Trends Fund MEGAX $20.20 0.08 Near-Term Tax Free Fund NEARX $2.19 No Change U.S. Government Securities Ultra-Short Bond Fund UGSDX $2.00 No Change