Sit Back and Stay Balanced

Author: USGI
Date Posted: November 12, 2014 Read time: 10 min

JT Long of The Gold Report had a chance to speak with Frank Holmes upon his return from the 40th Annual New Orleans Investment Conference, seeking his advice to investors during this unpredictable time in the market. Frank suggests that when it comes to gold, the best thing to do is “chill.” He says there’s no need to panic if gold stocks move up or down 35 percent, as this is normal volatility for the asset class.

Frank remains committed to a 10-percent weighting in the metal, rebalancing annually, and reminds readers to follow the money. He notes that for investors who aren’t keen on the volatile movements in the precious metal, he has the “no drama” fund that might be just right for their portfolio – the Near-Term Tax Free Fund (NEARX).

Read the full interview here to catch some of Frank’s favorite mining stocks and for additional insight from portfolio manager Ralph Aldis.

 

Read the Full Interview

 

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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.

Total Annualized Returns as of 9/30/2014
  One-Year Five-Year Ten-Year Gross Expense Ratio Expense Ratio After Waivers
Near-Term Tax Free Fund (NEARX) 3.26% 2.59% 2.97% 1.21% 0.45%
S&P 500 Index 19.72% 15.68% 8.10% N/A N/A

Expense ratio as stated in the most recent prospectus. The expense ratio after waivers is a contractual limit through December 31, 2014, for the Near-Term Tax Free Fund, on total fund operating expenses (exclusive of acquired fund fees and expenses, extraordinary expenses, taxes, brokerage commissions and interest). After December 31, 2014, this arrangement will become a voluntary limitation that may be changed or terminated by U.S. Global Investors at any time, which may lower the 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.

Bond funds are subject to interest-rate risk; their value declines as interest rates rise. 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. 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. The Near-Term Tax Free Fund 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. Though the Near-Term Tax Free Fund seeks minimal fluctuations in share price, it is subject to the risk that a decline in the credit quality of a portfolio holding could cause a fund’s share price to decline.

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.

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.

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. 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.

Morningstar Rating

Overall/164
3-Year/164
5-Year/137
10-Year/103

Morningstar ratings based on risk-adjusted return and number of funds
Category: Municipal National Short-Term Funds
Through: 10/31/2014

Morningstar Ratings are based on risk-adjusted return. The Morningstar Rating for a fund is derived from a weighted-average of the performance figures associated with its three-, five- and ten-year Morningstar Rating metrics. Past performance does not guarantee future results. 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.)

The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies. The S&P 500 Materials Index is a capitalization-weighted index that tracks the companies in the material sector as a subset of the S&P 500. The S&P 500 Energy Index is a capitalization-weighted index that tracks the companies in the energy sector as a subset of the S&P 500.

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. The J.P. Morgan Global Purchasing Manager’s Index is an indicator of the economic health of the global manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment. The ISM manufacturing composite index is a diffusion index calculated from five of the eight sub-components of a monthly survey of purchasing managers at roughly 300 manufacturing firms from 21 industries in all 50 states.

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, Global Resources Fund, Near-Term Tax Free Fund and World Precious Minerals Fund as a percentage of net assets as of 09/30/2014: Apple (Gold and Precious Metals Fund 0.00%, Global Resources Fund 0.00%, Near-Term Tax Free Fund 0.00%, World Precious Minerals Fund 0.00%), Facebook Inc. (Gold and Precious Metals Fund 0.00%, Global Resources Fund 0.00%, Near-Term Tax Free Fund 0.00%, World Precious Minerals Fund 0.00%), Franco-Nevada Corp (Gold and Precious Metals Fund 6.44%, Global Resources Fund 0.00%, Near-Term Tax Free Fund 0.00%, World Precious Minerals Fund 1.16%), Fresnillo PLC (Gold and Precious Metals Fund 0.00%, Global Resources Fund 0.00%, Near-Term Tax Free Fund 0.00%, World Precious Minerals Fund 0.00%), Klondex Mines Ltd (Gold and Precious Metals Fund 7.76%, Global Resources Fund 1.22%, Near-Term Tax Free Fund 0.00%, World Precious Minerals Fund 7.51%), MAG Silver Corp (Gold and Precious Metals Fund 0.00%, Global Resources Fund 0.00%, Near-Term Tax Free Fund 0.00%, World Precious Minerals Fund 2.75%), Market Vectors Junior Gold Miners ETF (Gold and Precious Metals Fund 0.16%, Global Resources Fund 0.00%, Near-Term Tax Free Fund 0.00%, World Precious Minerals Fund 0.17%), Randgold Resources Ltd (Gold and Precious Metals Fund 1.92%, Global Resources Fund 0.00%, Near-Term Tax Free Fund 0.00%, World Precious Minerals Fund 1.17%), Royal Gold Inc. (Gold and Precious Metals Fund 3.44%, Global Resources Fund 0.00%, Near-Term Tax Free Fund 0.00%, World Precious Minerals Fund 1.01%), Silver Wheaton Corp (Gold and Precious Metals Fund 1.10%, Global Resources Fund 0.00%, Near-Term Tax Free Fund 0.00%, World Precious Minerals Fund 0.35%), Virginia Mines Inc. (Gold and Precious Metals Fund 0.00%, Global Resources Fund 0.00%, Near-Term Tax Free Fund 0.00%, World Precious Minerals Fund 7.13%).

Diversification does not protect an investor from market risks and does not assure a profit. Standard deviation is a measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. Standard deviation is also known as historical volatility.

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