U.S. Global Investors Funds to Pay Year-End Distributions

Author: Frank Holmes
Date Posted: March 20, 2014 Read time: 6 min

SAN ANTONIO—December 17, 2013—U.S. Global Investors, Inc. (Nasdaq: GROW), a boutique investment adviser specializing in natural resources and emerging markets, announces that eight of the mutual funds it manages will pay 2013 income dividend or long-term capital gains distributions.

The record date was December 16, 2013, and the ex-dividend and payable date is December 17, 2013.

Shareholders should be aware that the distributions of dividends and/or capital gains have reduced each fund’s net asset value (NAV) by the amount of the distribution. Market activity may also have impacted a fund’s NAV on the ex-dividend date, so the total change in a fund’s NAV may be more or less than its distribution.

Shareholders with automatic reinvestment will receive their distribution in the form of additional shares at the closing prices on December 17, 2013, while others will receive their distribution by check. The distributions do not affect the fund’s total return.

The following is a list of the distributions by fund.

Fund Income dividend per share Short-term capital gains per share Long-term capital gains per share Total per share
Global Resources Fund Institutional Class (PIPFX) $0.411 $0.000 $0.000 $0.411
Global Resources Fund (PSPFX) $0.347 $0.000 $0.000 $0.347
China Region Fund (USCOX) $0.020 $0.000 $0.000 $0.020
Tax Free Fund (USUTX) $0.023 $0.000 $0.000 $0.023
Near-Term Tax Free Fund (NEARX) $0.004 $0.000 $0.000 $0.004
All American Equity Fund (GBTFX) $0.068 $0.883 $1.225 $2.176
Emerging Europe Fund (EUROX) $0.139 $0.000 $0.000 $0.139
MegaTrends Fund (MEGAX) $0.035 $0.000 $0.000 $0.035
Holmes Growth Fund (ACBGX) $0.000 $0.519 $0.989 $1.508


In addition, the U.S. Government Securities Savings Fund (UGSXX) will pay its normal daily distribution on December 23, 2013 for the days from December 1 through the date of the fund’s conversion into the U.S. Government Securities Ultra-Short Bond Fund. Once the conversion takes place, a partial distribution will occur on December 31, 2013, for the remaining days of the month.

Similarly, both the Tax Free Fund and the Near-Term Tax Free Fund will pay pre-merger distributions on December 17. Following the merger of the two funds, the Near-Term Tax Free Fund will distribute income on December 31, 2013, for the remaining days of the month.

Following the conversion to the U.S. Government Securities Ultra-Short Bond Fund and the merger of the Near-Term Tax Free Fund, both of these funds will resume single distribution dates at the end of each month.

Income dividend per share amounts for the Global Resources Fund (PSPFX and PIPFX) were affected by federal tax laws that classify certain passive income for international companies (PFIC) as ordinary income for shareholders. The fund targets promising junior exploration and development opportunities in both the energy and gold mining sectors, which increases the exposure to some of these tax rules.

Fund distributions are not directly correlated with short-term fund performance. This information is not intended as tax advice. Investors should consult a tax advisor with questions regarding their individual tax liability.

About U.S. Global Investors, Inc.
U.S. Global Investors, Inc. (www.usfunds.com) is a registered investment  adviser that focuses on natural resources and emerging markets companies around  the world. Headquartered in San    Antonio, Texas, the  company provides advisory and other services to U.S. Global Investors Funds and  other clients.

With an average of $1.20 billion in assets under management in the quarter ended September 30, 2013, U.S. Global Investors manages domestic and offshore funds offering a variety of investment options, from emerging markets to fixed income.

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.

With respect to the U.S. Government Securities Savings Fund, an investment in a money market fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency.  Although the U.S. Government Securities Savings Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in these funds.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. There is no guarantee that the funds will declare dividends in the future or that, if declared, will remain at current levels or increase over time.

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 a specific industry, the fund may be subject to greater risks and fluctuations than a portfolio representing a broader range of industries. By investing in a specific geographic region, a regional fund’s returns and share price may be more volatile than those of a less concentrated portfolio. The Eastern European Fund invests more than 25% of its investments in companies principally engaged in the oil & gas or banking industries.  The risk of concentrating investments in this group of industries will make the fund more susceptible to risk in these industries than funds which do not concentrate their investments in an industry and may make the fund’s performance more volatile.

Tax-exempt income is federal income tax free. A portion of this income may be subject to state and local income taxes, and if applicable, may subject certain investors to the Alternative Minimum Tax as well.  Each tax free fund may invest up to 20% of its assets in securities that pay taxable interest.  Income or fund distributions attributable to capital gains are usually subject to both state and federal income taxes.  Bond funds are subject to interest-rate risk; their value declines as interest rates rise. The tax free funds may be exposed to risks related to a concentration of investments in a particular state or geographic area. These investments present risks resulting from changes in economic conditions of the region or issuer.