Net Asset Value as
of 10/10/2024:
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 10/10/2024 | |||||
|---|---|---|---|---|---|
| Fund | Symbol | Close | Previous | Change | YTD |
| Global Luxury Goods Fund (USLUX) | USLUX | 21.35 | 21.34 |
0.01
|
11.08%
|
| Gold and Precious Metals Fund (USERX) | USERX | 13.52 | 13.04 |
0.48
|
36.7%
|
| World Precious Minerals Fund (UNWPX) | UNWPX | 1.61 | 1.57 |
0.04
|
11.03%
|
| Global Resources Fund (PSPFX) | PSPFX | 4.16 | 4.12 |
0.04
|
4.79%
|
| Near-Term Tax Free Fund (NEARX) | NEARX | 2.10 | 2.10 |
0.00
|
1.85%
|
| U.S. Government Securities Ultra-Short Bond Fund (UGSDX) | UGSDX | 1.95 | 1.95 |
0.00
|
3.11%
|
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 09/30/2024
| 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 | 2.36% | 3.99% | 1.43% |
| U.S. Government Securities Ultra-Short Bond Fund (UGSDX) | 11/01/1990 | 3.89% | N/A | 3.06% |
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 09/30/2024
| 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 | 2.36% | 3.99% | 1.43% | 1.19 |
| U.S. Government Securities Ultra-Short Bond Fund (UGSDX) | 11/01/1990 | 3.89% | N/A | 3.06% | 0.34 |
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 09/30/2024
| 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 | 12.95% | 25.54% | 10.78% | 7.49 % | 8.33% | 2.05% |
| Gold and Precious Metals Fund (USERX) | 7/1/1974 | 34.58% | 54.41% | 10.60 % | 8.92 % | 1.18% | 1.48% |
| World Precious Minerals Fund (UNWPX) | 11/27/1985 | 16.55% | 18.18% | 0.41% | -0.66% | 2.00% | 1.74% |
| Global Resources Fund (PSPFX) | 8/3/1983 | 4.79% | 4.26% | 7.56% | -2.46% | 3.25% | 1.69% |
| Near-Term Tax Free Fund (NEARX) | 11/1/1990 | 2.34% | 4.95% | 0.54% | 0.79% | 3.20% | 1.29% |
| U.S. Government Securities Ultra-Short Bond Fund (UGSDX) | 12/4/1990 | 3.11% | 4.62% | 1.14% | 0.96% | 2.41% | 1.17% |
Expense ratios as stated in the most recent prospectus.
The Adviser of the Gold & Precious Metals 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, 2025. Total annual expenses after reimbursement of (0.02%) were 1.46%.
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, 2025. Total annual expenses after reimbursement of (0.18%) were 1.87%.
The Adviser of the World Precious Minerals 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, 2025. Total annual expenses after waiver or reimbursement of (0.27%) were 1.47%.
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, 2025. Total annual expenses after the waiver of (0.84%) 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 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 (0.72%), 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 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%. Total annual expenses after reimbursement of (0.22%) were 1.47%.
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 09/30/2024
| 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 | 4.73% | 12.95% | 25.54% | 10.78% | 7.49 % | 8.33% | 2.05% |
| Global Resources Fund (PSPFX) | 8/3/1983 | 2.72% | 4.79% | 4.26% | 7.56% | -2.46% | 3.25% | 1.69% |
| Gold and Precious Metals Fund (USERX) | 7/1/1974 | 6.06% | 34.58% | 54.41% | 10.60 % | 8.92 % | 1.18% | 1.48% |
| Near-Term Tax Free Fund (NEARX) | 12/4/1990 | 0.67% | 2.34% | 4.95% | 0.54% | 0.79% | 3.20% | 1.29% |
| U.S. Government Securities Ultra-Short Bond Fund (UGSDX) | 11/1/1990 | 0.36% | 3.11% | 4.62% | 1.14% | 0.96% | 2.41% | 1.17% |
| World Precious Minerals Fund (UNWPX) | 11/27/1985 | 9.74% | 16.55% | 18.18% | 0.41% | -0.66% | 2.00% | 1.74% |
Expense ratios as stated in the most recent prospectus.
The Adviser of the Gold & Precious Metals 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, 2025. Total annual expenses after reimbursement of (0.02%) were 1.46%.
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, 2025. Total annual expenses after reimbursement of (0.18%) were 1.87%.
The Adviser of the World Precious Minerals 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, 2025. Total annual expenses after waiver or reimbursement of (0.27%) were 1.47%.
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, 2025. Total annual expenses after the waiver of (0.84%) 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 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 (0.72%), 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 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%. Total annual expenses after reimbursement of (0.22%) were 1.47%.
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 | 09/30/24 | $ 0.004089 | $ 2.11 |
| U.S. Government Securities Ultra-Short Bond Fund | 09/30/24 | $ 0.007092 | $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: $21.35
Change as of 10/10/2024
$0.01
Ticker:
USLUX
Inception Date:
10/17/1994
AUM
$49564313.91 as of 10/10/2024
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.
The Global Luxury Goods Fund lost 2.81% in the second quarter of 2024, underperforming its benchmark, the S&P 1500 Composite Index, which gained 3.66%. However, the Global Luxury Goods Fund outperformed the S&P Global Luxury Index, which declined by 8.93%. The fund’s objective strategy is more aligned with the performance of the S&P Global Luxury Index, as both focus on high-end products and services. See complete fund performance here.
The 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 performance relative to the S&P 1500 Index was positively impacted by its lack of exposure to the industrial and health care sectors. According to its investment strategy, the luxury fund does not invest in these sectors, which were among the weakest performers.
- The fund’s stock selection in the financial sector had the second most positive effect on the fund’s performance relative to the index. Shares of KKR & Co. gained 4.8%, while Apollo Global Management gained 5.4%. The S&P 1500 index had no exposure to these names.
- The strongest contributor to the fund’s performance was Apple, contributing a positive 0.71% to the fund’s performance. Shares gained 23% in the second quarter. The iPhone maker announced a record-setting buyback program and strong quarterly earnings. The company board authorized $110 billion in share repurchase, a 22% increase over last year’s $90 billion authorization.
Weaknesses
- The fund’s stock selection in the consumer discretionary sector had the most negative effect on its performance relative to the S&P 1500 Index. According to its investment objective, the fund allocated assets to luxury apparel, which underperformed the broader market. Shares of Lululemon declined 23.5%, Hermes dropped 9.38% and LVMH fell 14.63%.
- The fund’s underweight position in information technology significantly impacted its performance relative to the index, marking the second most negative effect. Nvidia shares saw substantial gains, appreciating 36.7% in the second quarter alone and rising 192% over the past year. Despite these gains, the fund did not invest in Nvidia due to its focus on companies that manufacture and sell high-end products and services. In June, Nvidia briefly became the largest company by market share in the S&P 1500 Index, surpassing Microsoft.
- The biggest detractor to the fund’s performance was Lululemon, contributing a negative 0.76% to the fund’s overall performance. Shares declined 23.5% in the second quarter. The company reported weaker sales in the United States.
Current Outlook
Concerns regarding decelerating growth in the luxury segment weighed on stock prices within the sector during the second quarter. Historically, Chinese consumers have played a pivotal role in driving sector expansion. However, ongoing economic challenges in China and turbulence in the property market have dampened consumer confidence, putting pressure on high-end retailers. Despite these concerns about Chinese spending trends, the luxury sector is anticipated to continue its growth trajectory, but at a moderated pace compared to previous years.
A notable source of optimism within the sector is the robust growth in global business travel spending, projected to exceed 2019 levels by 2024 with a continued upward trajectory. According to the World Travel & Tourism Council, this trend indicates that the travel industry is set to expand significantly, reaching an estimated $15.5 trillion by 2033, up from $10 trillion in 2019. This growth would constitute approximately 11.6% of the global economy, underscoring the sector’s substantial economic impact and potential for continued expansion.
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 6/30/2024: KKR & Co. Inc. 4.44%, Apollo Global Management Inc. 3.66%, Apple Inc. 0.00%, Lululemon Athletica Inc. 3.42%, Hermes International SCA 5.68%, LVMH Moet Hennessy Louis Vuitton 4.05%, NVIDIA Corp. 0.00%, Microsoft 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.
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 09-30-2024
| Holding | Percentage |
|---|---|
| Hermes International | 9.26% |
| Cie Financiere Richemont SA | 6.88% |
| LVMH Moet Hennessy Louis Vuitton SE | 5.99% |
| Tesla, Inc. | 4.86% |
| L'OrealSA | 4.68% |
| Ferrari NV | 4.52% |
| Hilton Worldwide Holdings, Inc. | 3.97% |
| Mercedes-Benz Group AG | 3.32% |
| Royal Caribbean Cruises, Ltd. | 3.23% |
| Amazon.com, Inc. | 2.95% |
Industry Breakdown as of 09-30-2024
| Sector | Percentage |
|---|---|
| Consumer Discretionary | 59.17% |
| Consumer Staples | 15.61% |
| Financial | 10.58% |
| Materials | 8.60% |
| Cash Equivalents | 3.00% |
| Communication Services | 2.96% |
| Energy | 0.08% |
Regional Breakdown as of 09-30-2024
| Region | Percentage |
|---|---|
| United States | 34.47% |
| France | 22.82% |
| Germany | 9.35% |
| Canada | 8.23% |
| Switzerland | 7.18% |
| Italy | 7.11% |
| Other | 10.84% |
Growth of $10,000 Over 10 Years as of 09/30/2024
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 09/30/2024
| YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
| 12.95% | 25.54% | 10.78% | 7.49 % | 8.33% | 2.05% |
Quarter End Average Annual Total Returns as of 09/30/2024
| YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
| 12.95% | 25.54% | 10.78% | 7.49 % | 8.33% | 2.05% |
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, 2025. Total annual expenses after reimbursement of (0.18%) were 1.87%.
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: $13.52
Change as of 10/10/2024
$0.48
Ticker:
USERX
Inception Date:
07/01/1974
AUM
$120852895.02 as of 10/10/2024
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.
The Gold and Precious Metals Fund rose 9.34% in the second quarter of 2024, outperforming its benchmark, the FTSE Gold Mines Index, which gained 8.39% 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.
The 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
- K92 Mining delivered strong performance from beating Wall Street’s estimates on revenue by 9%. The company continues producing gold from their operations but has had some volatility in hitting production targets with several interruptions to operations over the past year. Despite some operational challenges over the last three quarters, the company delivered a return of 23.23% for the quarter, or 127 basis points (bps) to the fund.
- Not owning Barrick Gold, the second largest member of the FTSE Gold Mines Index, was the fund’s second best call on relative performance as it significantly underperformed the peer group average. Barrick did not meet first quarter expectations on margin expansion despite gold prices approaching record highs.
- Not owning Gold Fields, the fourth largest member of the FTSE Gold Mines Index, was our third best call on relative performance as it significantly underperformed the peer group average. Recent icy weather in Chile at their Salares Norte mine led to reduced annual production forecasts. Environmental concerns, including chinchilla protection, also temporarily halted parts of the Chilean mine.
Weaknesses
- Underweighting Newmont took 210 basis points away from our quarterly gain, making it the biggest detractor on performance. Newmont, the world’s biggest gold mining company, recently showed stronger results, beating expectations with higher profits and gold production. Institutional investors are showing increased interest in Newmont, indicating confidence in the company’s future.
- Underweighting Kinross Gold Corp. cost the fund 94 basis points in relative performance. Kinross is more leveraged and has a higher cost basis but has been able to avoid any missteps on guidance. The company is higher risk with its lower quality resource statement in terms of ore grade and flexibility.
- Mené Inc. is executing a disruptive business model to the traditional jewelry industry. The company sells 24-karat jewelry based on gram weight that can be kept for investment, worn for adornment or resold at the prevailing precious metals prices. Since the pandemic, online sales have declined, and we are monitoring for potential sales growth and profit increases. The share price declined 41.96% during the second quarter, reducing the fund’s return by 58 bps. We are confident in Mené’s disruptive position against such peers as Signet Jewelers, but marketing needs to improve to take advantage of its long-term potential.
Outlook For Gold and Precious Metals
Bank of America believes gold can hit $3,000 per ounce in the next 12-18 months, though flows do not justify that price level right now. Achieving this would require non-commercial demand to pick up from current levels, which we believe needs a Federal Reserve rate cut to happen. Ongoing central bank purchases are also important, and a push to reduce the share of the U.S. dollar in foreign exchange portfolios will likely prompt more central bank gold buying.
China’s central bank made no gold purchases in May, marking an abrupt stop to the 18-month buying streak. It may be that China has halted its public purchases of gold that are tracked internationally and pivoted to buying gold directly from its own domestic gold miners, which they have done in the past. In any case, China’s total official gold holdings now stand at 2,264 tons, accounting for 4.9% of the country’s total reserves, the highest ever.
Equinox Gold announced this morning that it has poured first gold at the Greenstone mine. This is in line with the May timeline that management had been guiding for. All equipment is operating as expected, and the operation will now ramp up towards commercial production expected in Q3, according to BMO.
Silver prices are finally catching up more stridently with gold’s rally, with JPMorgan continuing to think there is more upside to come. Solar demand for silver was up 63% year-over-year in 2023 and now accounts for over 16% of total demand (up from 5% in 2014). Higher solar demand is driving substantial silver deficits, helping to offset weaker investment demand. With mine supply flat, RBC sees potential for a higher price floor and a re-rate of silver versus gold.
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.
A basis point is a standard measure for interest rates and other percentages in finance. One basis point equals 1/100th of 1%, or 0.01%.
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 6/30/2024: K92 Mining Inc. 9.66%, Barrick Gold Corp. 0.25%, Gold Fields Ltd. 0.00%, Newmont Corp. 0.00%, Kinross Gold Corp. 1.06%, Mene Inc. 0.61%, Signet Jewelers Ltd. 0.00%, Equinox Gold Corp. 2.83%
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.
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 09-30-2024
| Holding | Percentage |
|---|---|
| K92 Mining, Inc. | 7.34% |
| Aya Gold & Silver, Inc. | 7.12% |
| Alamos Gold, Inc. | 5.03% |
| Vox Royalty Corp. | 3.59% |
| Aris Gold Corp. | 3.33% |
| Catalyst Metals, Ltd. | 3.19% |
| Westgold Resources, Ltd. | 3.09% |
| Mineros SA | 2.58% |
| New Gold, Inc. | 2.42% |
| Lundin Gold, Inc. | 2.37% |
Industry Breakdown as of 09-30-2024
| Sector | Percentage |
|---|---|
| Gold, Precious Metals and Minerals | 90.17% |
| Cash Equivalents | 7.26% |
| Other | 2.57% |
Regional Breakdown as of 09-30-2024
| Region | Percentage |
|---|---|
| Canada | 60.05% |
| Australia | 16.37% |
| United States | 6.45% |
| United Kingdom | 3.44% |
| Other | 6.42% |
| Cash Equivalents | 7.27% |
Growth of $10,000 Over 10 Years as of 09/30/2024
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 09/30/2024
| YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
| 34.58% | 54.41% | 10.60 % | 8.92 % | 1.18% | 1.48% |
Quarter End Average Annual Total Returns as of 09/30/2024
| YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
| 34.58% | 54.41% | 10.60 % | 8.92 % | 1.18% | 1.48% |
Expense ratio as stated in the most recent prospectus.
The Adviser of the Gold & Precious Metals 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, 2025. Total annual expenses after reimbursement of (0.02%) were 1.46%.
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: $1.61
Change as of 10/10/2024
$0.04
Ticker:
UNWPX
Inception Date:
11/27/1985
AUM
$41898690.24 as of 10/10/2024
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.
The World Precious Minerals Fund rose 8.45% in the second quarter of 2024, outperforming its benchmark, the NYSE Arca Gold Miners Index, which gained 8.39% on a total return basis. The S&P/TSX Venture Precious Metals & Minerals Index returned 3.22% for the same period. This index better reflects the mix of small-cap junior mining companies the fund typically invests in, but it’s not a perfect match as the volatility of this index is nearly twice the volatility of the fund. See complete fund performance here.
The 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
- TriStar Gold owns Castelo de Sonhos, a large gold project in Brazil, which the company has been advancing towards a production decision. In June, the Pará State Environmental Council announced the approval of their preliminary license and environmental impact statement. With that being the last major permitting hurdle to clear, TriStar is a clear acquisition target now, which is why the stock gained 67.36% and contributed 417 basis points (bps) of performance to the fund.
- The second most significant contributor was First Nordic Metals Corp., which finished the quarter with a gain of 83.66% and contributed 205 basis points to the fund. Recently renamed from Barsele Minerals in March 2024, the company refreshed management and the board and successfully raised some money. Their main project is the Barsele Gold Project located in Sweden, a politically safe and mining friendly jurisdiction. Agnico Eagle Mines Ltd. is their JV partner. We sold slightly over half of our position of the price gain.
- K92 Mining delivered strong performance from beating Wall Street’s estimates on revenue by 9%. The company continues producing gold from their operations but has had some volatility in hitting production targets with several interruptions to operations over the past year. Despite some operational challenges over the last three quarters, the company delivered a return of 23.23% for the quarter, or 92 basis points (bps) to the fund.
Weaknesses
- Nano One Materials Corp. was the fund’s biggest detractor for the quarter as it was down 19.97%. In April, Nano One announced it would deploy its patented One-Pot Process for cathode production on a commercial basis. Its partner Worley, capitalized at $5 billion, is Australa’s largest exported of knowledge-based services and delivers engineering, procurement and construction services to energy, chemicals, power and the mining and mineral sectors. We do expect there will be a deployment of the technology this year. Nano One does not have any direct commodity price risks as its portfolio of patents on its One-Pot Process to produce lithium iron phosphate batteries is the value driver and is the only plant in North America that can provide this product outside of China.
- Underweighting Kinross Gold Corp. cost the fund 86 basis points in relative performance to the benchmark. Kinross is more leveraged and has a higher cost basis, but it has been able to avoid any missteps on guidance. The company is higher risk with its lower quality resource statement in terms of ore grade and flexibility.
- By avoiding Barrick Gold Corp., the fund gained 61 basis points, but not owning Newmont cost it 82 basis points, making it the third biggest impact on performance. Newmont, the world’s biggest gold mining company, recently showed stronger results, beating expectations with higher profits and gold production. Institutional investors are showing increased interest in Newmont, indicating confidence in the company’s future.
Outlook For World Precious Minerals
The potential for a third quarter rate cut has spurred gold prices upwards as gold and real rates have historically had an inverse relationship. Escalating geopolitical tensions in the Middle East or Eastern Europe could ignite a further surge in gold investment demand as gold is seen as a haven asset. This backdrop, in Bank of America’s view, suggests a bullish outlook for gold. Bank of America believes gold could hit $3,000 an ounce over the next 12-18 months, though flows do not justify that price level right now.
Achieving this would require non-commercial demand to pick up from current levels, which in turn needs a Federal Reserve rate cut to happen. Ongoing central bank purchases are also important, and a push to reduce the share of the U.S. dollar in foreign exchange portfolios will likely prompt more central bank gold buying. Data dating back to 2010 shows that in times of buoyant gold prices, exploration spend has typically followed. However, since 2019, exploration spend and the gold price have decoupled, Canaccord believes driven by M&A. Over the last 10 years, periods of sustained exploration spend have typically been followed by several world-class discoveries.
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 S&P/TSX Venture Precious Metals & Minerals (Sub Industry) Index consists of all members of the S&P/TSX Venture Composite that are classified within the GICS precious metals & minerals sub-industry.
A basis point is a standard measure for interest rates and other percentages in finance. One basis point equals 1/100th of 1%, or 0.01%.
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 6/30/2024: TriStar Gold Inc. 10.85%, First Nordic Metals Corp. 2.53%, Agnico Eagle Mines Ltd. 0.00%, K92 Mining Inc. 6.88%, Nano One Materials Corp. 6.47%, Worley Ltd. 0.00%, Kinross Gold Corp. 0.29%, Barrick Gold Corp. 0.00%, Newmont 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.
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 09-30-2024
| Holding | Percentage |
|---|---|
| TriStar Gold, Inc. | 9.45% |
| K92 Mining, Inc. | 5.94% |
| Nano One Materials Corp. | 5.23% |
| Radisson Mining Resources, Inc. | 4.46% |
| Vizsla Silver Corp. | 3.51% |
| Dolly Varden Silver Corp. | 3.13% |
| Asante Gold Corp. | 2.93% |
| First Nordic Metals Corp. | 2.43% |
| Aris Gold Corp. | 2.26% |
| G2 Goldfields, Inc. | 2.13% |
Industry Breakdown as of 09-30-2024
| Sector | Percentage |
|---|---|
| Gold, Precious Metals and Minerals | 95.03% |
| Other | 4.97% |
Regional Breakdown as of 09-30-2024
| Region | Percentage |
|---|---|
| Canada | 75.53% |
| United States | 12.95% |
| Australia | 6.43% |
| Other | 5.09% |
Growth of $10,000 Over 10 Years as of 09/30/2024
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 09/30/2024
| YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
| 16.55% | 18.18% | 0.41% | -0.66% | 2.00% | 1.74% |
Quarter End Average Annual Total Returns as of 09/30/2024
| YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
| 16.55% | 18.18% | 0.41% | -0.66% | 2.00% | 1.74% |
Expense ratios as stated in the most recent prospectus.
The Adviser of the World Precious Minerals 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, 2025. Total annual expenses after waiver or reimbursement of (0.27%) were 1.47%.
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: $4.16
Change as of 10/10/2024
$0.04
Ticker:
PSPFX
Inception Date:
08/03/1983
AUM
$41565283.18 as of 10/10/2024
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.
The Global Resources Fund’s net asset value (NAV) finished the second quarter of 2024 down 0.25%, outperforming the fund’s benchmark, the S&P Global Natural Resources Net Total Return Index finished with a loss of 1.93%. Both the fund and the benchmark had positive returns for the first month and a half of the quarter, but by mid-May, commodity markets sank as the prospects for interest rate cuts were pushed further to the second half of the year, if not later. See complete fund performance here.
The 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 quarter were coffee, zinc and iron ore, up 20.90%, 20.23% and 9.49%, respectively. The El Niño weather phenomenon has caused significant droughts in major coffee-growing regions, reducing coffee production forecasts and leading to shortfalls, which has pushed existing prices up. Zinc prices also rose because of supply disruptions, including one significant production cut at a major South Korean smelter and the closure of a zinc mine in Australia. The second quarter traditionally sees a peak in demand for iron ore due to the resumption of construction activities in the Northern Hemisphere, facilitated by warmer weather.
- The three best sector calls for the fund were an overweight position in precious metals, underweight position in steel and underweight agricultural chemicals. The gains in precious metals were driven by record gold prices, which delivered 123 basis points (bps) of outperformance relative to the benchmark.
- The three best dollar-performing stock decisions were overweighting Ivanhoe Mines, K92 Mining, and Vox Royalty, which contributed 68 bps, 44 bps, and 40 bps, respectively. Ivanhoe Mines’ Kipushi zinc mine in the Democratic Republic of Congo is set to be the world’s largest zinc mine and is finalizing deals to sell to the privately-held Trafigura, China’s CITIC and Sweden’s Boliden. K92 delivered performance by beating Wall Street’s estimates on revenue by 9%. The mining company continues producing quality gold from its operations. Vox Royalty benefited from its iron ore royalties as the ore gained as much as 20% during the quarter but trailed off in June.
Weaknesses
- The three weakest commodities for the quarter were lumber, lithium carbonate and cotton, down 21.85%, 15.42% and 13.45%, respectively. U.S. lumber saw a large decrease in demand in the first quarter of 2024, amplified by rate hikes and slowing housing builds. Lithium carbonate saw an oversupply in the market, where rapid expansion of lithium production outpaced the growth in demand, particularly for electric vehicles. Like lithium, the oversupply of cotton put downward pressure on prices for the crop.
- The fund’s worst-performing sectors were its underweight position in integrated oil, off 90 bps; underweight containers and packaging, down 32 bps; and overweight specialty chemicals, which lost the fund 43 bps. Major oil companies caught a bid as oil prices have risen on conflict fears, but oil remains a volatile commodity, which leaves a lot of managers on the wrong side at times. In addition, underweighting containers/packaging led to a drag, but we view the eco-friendly battle in reducing plastics as a threat to the containers/packaging sector. Finally, the fund’s overweight position in specialty chemicals was a viewpoint that pharmaceuticals, agriculture and consumer goods could see an increase in innovative-driven growth and demand.
- The three biggest dollar-detractor performing stock decisions were Shell, Anglo American and UPM-Kyummene Oyj, which impacted returns by 53 bps, 43 bps and 25 bps, respectively. Oil, as stated above, is a volatile commodity, which explains the Shell position. Anglo American suffered a suspension of production at its Grosvenor steelmaking coal mine in Australia, which led to their underperformance. UPM-Kymmene Oyj suffered unusually high maintenance across numerous facilities, which slowed production in the second quarter of 2024.
Current Outlook
U.S. Global Investors holds a cautiously optimistic view on major commodity prices in the third quarter. We believe that the scale between oil and lithium will remain weighted towards oil. However, the International Monetary Fund (IMF) predicts a slight year-over-year decline in oil price, averaging around $78.60 per barrel for 2024. The base case for this relationship remains on the demand side of the equation, since both commodities have an oversupply problem. There are approximately 1.5 billion vehicles on the road globally; however, only 40 million are electric or plug-in hybrid electric, which deduces to only around 3% of all vehicles being electric. When we take the current supply of vehicles into account, the demand for oil remains resilient.
Copper prices were up in the second quarter of 2024. As we look toward the second half of 2024, we expect copper prices to be a bit volatile as central banks weigh the potential of cutting rates. The relationship between key interest rates and copper prices exists due to the nature of copper being a major industrial metal and economic growth tends to slow with higher interest rates. In addition to global industrial demand, copper’s use in renewable energy is expected to lead to heightened demand.
We see copper prices continuing an upward trajectory as we embark on the second half of 2024.
The outlook for lumber prices presents a potential area for recovery. After experiencing a significant decline due to decreased demand and overproduction, lumber prices may see a rebound if interest rates are cut, thereby stimulating the housing market. A rate cut could lead to a resurgence in housing demand, increasing the need for construction materials. For example, lumber prices, which had dropped to $400 per thousand board feet, could potentially rise back to $600 per thousand board feet if housing starts increased significantly. This would align with broader economic indicators suggesting a potential recovery in the housing sector, driven by lower borrowing costs and renewed consumer confidence in real estate investments.
Uranium prices are on the move and anticipated to head higher due to increased demand and production shortfalls. Geopolitical factors and new reactor constructions contribute to a bullish outlook. Analysts at Sprott and other financial institutions forecast a significant uptick in uranium prices in the latter half of 2024, driven by higher utility and producer activity as new contracts are fleshed out.
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.
A basis point is a standard measure for interest rates and other percentages in finance. One basis point equals 1/100th of 1%, or 0.01%.
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 6/30/2024: Ivanhoe Mines Ltd. 6.18%, K92 Mining Inc. 1.80%, Vox Royalty Corp. 1.33%, China CITIC Bank Corp. Ltd. 0.00%, Boliden AB 0.00%, Shell plc 0.00%, Anglo American PLC 0.27%, UPM-Kymmene Oyj 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 09-30-2024
| Holding | Percentage |
|---|---|
| Abaxx Technologies, Inc. | 6.02% |
| Ivanhoe Mines, Ltd. | 5.31% |
| Cheniere Energy, Inc. | 3.23% |
| Newmont Corp. | 2.56% |
| Filo Corp. | 2.42% |
| Aris Gold Corp. | 2.41% |
| Linde PLC | 2.28% |
| Montage Gold Corp. | 2.02% |
| NG Energy International Corp. | 1.86% |
| Coeur Mining, Inc. | 1.83% |
Industry Breakdown as of 09-30-2024
| Sector | Percentage |
|---|---|
| Basic Materials | 51.77% |
| Energy | 24.53% |
| Cash Equivalents | 8.55% |
| Technology | 6.84% |
| Financial | 3.39% |
| Consumer Staples | 3.29% |
| Industrial | 1.45% |
| Communications | 0.18% |
Regional Breakdown as of 09-30-2024
| Region | Percentage |
|---|---|
| Canada | 51.17% |
| United States | 25.77% |
| Cash Equivalents | 8.55% |
| United Kingdom | 4.33% |
| Australia | 3.24% |
| Ireland | 2.29% |
| Jersey | 1.44% |
| Other | 3.21% |
Growth of $10,000 Over 10 Years as of 09/30/2024
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 09/30/2024
| YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
| 4.79% | 4.26% | 7.56% | -2.46% | 3.25% | 1.69% |
Quarter End Average Annual Total Returns as of 09/30/2024
| YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
| 4.79% | 4.26% | 7.56% | -2.46% | 3.25% | 1.69% |
Expense ratios as stated in the most recent prospectus.
The Adviser of the Global Resources 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%. Total annual expenses after reimbursement of (0.22%) were 1.47%.
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: $2.1
Change as of 10/10/2024
$0.00
Ticker:
NEARX
Inception Date:
12/04/1990
AUM
$25018673.42 as of 10/10/2024
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.
The Near-Term Tax Free Fund had a positive return of 0.60% in the second quarter of 2024, outperforming its benchmark, the Bloomberg 3-Year Municipal Bond Index, which gained just 0.36%. See complete fund performance here.
The 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 duration of the fund at the start of the quarter was 1.3 years, and by quarter end it remained at 1.3 years with some notes maturing and the proceeds reinvested. The fund is overweight Pennsylvania, Minnesota and New Mexico, and significantly underweight California, New York and Illinois. The average maturity of the benchmark is closer to 2.8 years; thus, it has had positive results to have a shorter average maturity than the benchmark.
Strengths
- The fund’s allocation to bonds from Texas, Oregon and Pennsylvania made the biggest contribution to the fund’s return as we overweighted Texas, Oregon and Pennsylvania credits.
- The fund benefited from its allocation to overweight general obligation, school districts and water notes.
- Our shorter duration of about 1.3 years has offered higher current income relative to its benchmark.
Weaknesses
- The fund’s allocation to bonds from Kansas, New Mexico and Mississippi underperformed other states, but they are not significant weights in the fund.
- The fund’s exposure to transportation, airports and power bonds contributed the least to our returns.
- Our shorter duration of about 1.3 years did not offer as much price appreciation from expectations of falling yields in 2024.
Current Outlook
Investors were overly optimistic during the first half of 2024 that the Federal Reserve might start cutting interests rates, with some polls showing odds of up to 90% for a second quarter rate cut. The outlook among bond investors for Fed policy in the third quarter of 2024 seems cautiously optimistic now with some underlying uncertainties. The largest uncertainties are monetary policy actions, which may cause unexpected volatility in the bond markets, recession risks and geopolitical tensions.
In a lower interest rate environment, municipal bonds can become more attractive relative to other fixed-income investments. If central banks maintain or reduce interest rates to support economic growth, the yield on new issue municipal bonds could remain attractive. This can lead to increased investor demand for municipal bonds. In addition, lower interest rates can lead to higher prices for existing bonds.
Governments may continue to prioritize infrastructure spending to stimulate economic growth and improve public services. As part of fiscal stimulus measures, there could be an increase in the issuance of municipal bonds to fund new projects such as transportation networks, utilities and public facilities. This creates opportunities for investors to participate in financing of critical infrastructure projects while benefiting from stable, long-term returns. Additionally, infrastructure investments can enhance the credit quality of municipal issuers, making older bonds more attractive.
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.
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 09-30-2024
| Holding | Percentage |
|---|---|
| Board of Regents of the University of Texas System | 5.03% |
| County of Chisago MN | 4.58% |
| State of Illinois | 4.24% |
| Chillcothe City School District | 3.99% |
| City of Dallas TX Waterworks & Sewer System Revenue | 3.14% |
| Williamsport Sanitary Authority | 3.11% |
| Texas Department of Transportation State Highway Fund | 2.91% |
| Port St. Lucie Community Redevelopment Agency | 2.82% |
| City of Rio Rancho NM | 2.56% |
| City of Woodbury MN | 2.19% |
Industry Breakdown as of 09-30-2024
| Sector | Percentage |
|---|---|
| General Obligation | 46.19% |
| School District | 15.68% |
| Water | 10.39% |
| Higher Education | 9.15% |
| Transportation | 5.07% |
| Medical Facilities | 3.57% |
| Cash Equivalents | 2.76% |
| Power | 2.52% |
| Single Family Homes | 1.19% |
| Development | 1.01% |
| Utilities | 0.97% |
| Airport | 0.88% |
| Multi Family Homes | 0.62% |
Top 5 States as of 09-30-2024
| Sector | Percentage |
|---|---|
| Texas | 15.21% |
| Minnesota | 7.03% |
| Pennsylvania | 6.73% |
| Illinois | 5.56% |
| Ohio | 5.31% |
Growth of $10,000 Over 10 Years as of 09/30/2024
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 09/30/2024
| YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
| 2.34% | 4.95% | 0.54% | 0.79% | 3.20% | 1.29% |
Quarter End Average Annual Total Returns as of 09/30/2024
| YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
| 2.34% | 4.95% | 0.54% | 0.79% | 3.20% | 1.29% |
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, 2025. Total annual expenses after the waiver of (0.84%) were 0.45%. The fund’s yield calculation is based on the holdings’ yield to maturity for prior 30 days; distribution may differ.
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 10/10/2024
$0.00
Ticker:
UGSDX
Inception Date:
11/01/1990
AUM
$30570947.81 as of 10/10/2024
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 0.49% in the second quarter of 2024, underperforming its benchmark, the Bloomberg U.S. Treasury Bills 6-9 Months Total Return Index, which returned 1.20%. Given the fund’s large share count, even a one-penny change in its NAV results in a 55 basis point (bp) change in performance. Our performance lag this past quarter may reflect that the fund did not surpass the threshold for rounding up. Our duration is 0.85 years, longer than the benchmark at 0.55 years, which would position us more favorably for falling rates. Fund expenses were a factor too. See complete fund performance here.
The 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
The Federal Reserve has indicated that it has likely concluded its rate-hiking cycle and is expected to pivot toward a rate cut. Investors were overly optimistic during the first half of 2024 that the Federal Reserve might start cutting interests rates, with some polls showing odds of up to 90% for a second quarter rate cut. The outlook among bond investors for Fed policy in the third quarter of 2024 seems cautiously optimistic now with some underlying uncertainties. The largest uncertainties are monetary policy actions, which may cause unexpected volatility in the bond markets, recession risks and geopolitical tensions. Historically, periods following the end of Fed tightening cycles have been favorable for bond markets. This potential decline in rates could enhance returns for high-quality fixed-income securities, particularly those with intermediate duration.
The yield curve, which plots the interest rates of bonds with different maturities, has been closely watched. An inverted yield curve, where short-term rates trade higher than long-term rates, typically precedes an economic slowdown. As the Fed prepares to cut rates, the yield curve is expected to normalize, which should provide support for long-term bonds, especially Treasuries.
Inflation has been on a downward trend. Looking at personal consumption expenditures (PCE), the Fed’s preferred measure, we can see the index moving towards the Fed’s 2% target. The reduction in inflation pressures supports a more stable interest rate environment and contributes to the positive outlook for Treasuries.
The upcoming presidential race could have a negative impact on inflation and interest rates. Raising tariffs and restricting access to cheaper immigrant labor are expected to be inflationary. There is also considerable uncertainty with regard to making any new investments or pushing forward with existing plans that might come under political scrutiny under a new administration with different priorities.
The Bloomberg 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. Personal consumption expenditures (PCE) is the value of goods and services purchased by or on behalf of US residents. It’s the primary measure of consumer spending in the US economy and can include expenditures on food, electricity, rent, phone bills, and more.
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 09-30-2024
| U.S. Treasury Bill | 47.11% |
| Federal Home Loan Mortage Company | 22.78% |
| Federal Farm Credit Bank | 16.78% |
| Federal Home Loan Bank | 7.58% |
| U.S. Treasury Note | 5.75% |
U.S. Government Securities Ultra-Short Bond Fund
Growth of $10,000 Over 10 Years as of 09/30/2024
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 09/30/2024
| YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
| 3.11% | 4.62% | 1.14% | 0.96% | 2.41% | 1.17% |
Quarter End Average Annual Total Returns as of 09/30/2024
| YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
| 3.11% | 4.62% | 1.14% | 0.96% | 2.41% | 1.17% |
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 (0.72%), 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.
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.