Muni Bonds and an Update on U.S. Global

Author: USGI
Date Posted: January 5, 2015 Read time: 4 min


On the latest VoiceAmerica episode of “Turning Hard Times into Good Times,” host Jay Taylor welcomes Frank Holmes for an update on U.S. Global Investors and what exciting things GROW has in store for 2015. Frank starts by recapping the changes U.S. Global has seen in 2014, both as a company and with its funds, and hints at the release of exchange traded funds (ETFs) in the new year. He discusses the Near-Term Tax Free Fund (NEARX), a fund the company has had for several years but seems to be gaining more attention due to recent volatility in the market.

NEARX invests in short-term municipal bonds with high credit quality names. Frank says that when he discusses NEARX he likes to point out that it has a history of “no drama,” discussed further in this Frank Talk piece. Investors who are worried about their money during fluctuating markets may be interested in the fund which seeks preservation of capital and has a track record of performance.

Tune in to the full episode for an update not only from Frank Holmes but from Jeb Handwerger as well, editor of Gold Stock Trades. Click here to listen: Frank comes in towards the second half of the program.

For more on investing in short-term muni bonds, watch this video featuring Director of Research John Derrick.

Please consider carefully a fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a fund prospectus by visiting www.usfunds.com or by calling 1-800-US-FUNDS (1-800-873-8637). Read it carefully before investing. Distributed by U.S. Global Brokerage, Inc.

The company and its subsidiaries reported average assets under management of $1.2 billion as of September 30, 2014 between domestic and offshore offerings.

The Purchasing Manager’s Index is an indicator of the economic health of the manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.

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. Unlike bank savings accounts, an investment in a bond fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

The net asset value of the Near-Term Tax Free Fund is not exactly $2, but floats in the $2 range.

This news release may include certain “forward-looking statements” including statements relating to revenues, expenses, and expectations regarding market conditions. These statements involve certain risks and uncertainties. There can be no assurance that such statements will prove accurate and actual results and future events could differ materially from those anticipated in such statements.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. By clicking the link above, you will be directed to a third-party website. U.S. Global Investors does not endorse all information supplied by this website and is not responsible for its content.

Diversification does not protect an investor from market risks and does not assure a profit.