U.S. Global Investors Global Resources Fund (PSPFX) Tops Category
SAN ANTONIO—January 26, 2011— U.S. Global Investors, Inc. (Nasdaq: GROW), a boutique registered investment advisory firm specializing in natural resources and emerging markets, announces the Global Resources Fund (PSPFX) finished 2010 as the top-performing fund for the 1- and 10-year period in the global natural resources category, according to data from Lipper. In addition, the Global Resources Fund, the company’s largest fund, ranks in the top 5 percent for the 1-, 5- and 10-year periods among the entire mutual fund universe.
The Global Resources Fund (PSPFX) ranked 1 out of 131, 17 out of 54, and 1 out of 32 global natural resources funds for total return for the 1-, 5- and 10-year periods as of December 31, 2010. Of course, our past performance does not guarantee future results.
“We are very pleased to have achieved such outstanding relative short- and long-term performance in a volatile, evolving and competitive marketplace,” says Frank Holmes, U.S. Global’s CEO and chief investment officer.
As of December 31, 2010, the fund achieved a 38 percent 1-year return, nearly tripling the category average of 13.61 percent. Over the past 10 years, the fund has delivered a 19.49 percent annual return to shareholders versus the category average of 13.85 percent annualized return.
In addition, the fund’s diversified portfolio has outpaced the performance of the underlying commodities such as oil and gold, which have returned 13 percent and 17.9 percent annually over the past 10 years, respectively, as of December 31, 2010.
A hypothetical $10,000 invested in the S&P 500 ten years ago would have been worth $11,507 as of December 31, 2010. The same $10,000 investment in the Global Resources Fund would have been worth $59,373 for the same time period.
These results reflect a reinvestment of capital gains and dividends, but does not include the effect of any direct fees described in the fund’s prospectus which, if applicable, would lower your returns.
“We believe that active management is the key to success in commodity and natural resource investing,” says Holmes. “This is how we’ve been able to generate such tremendous alpha for our shareholders.” Alpha measures the excess return of a fund relative to its benchmark.
The managers of the Global Resources Fund recently shared their outlook for 2011. Click here to see how they are positioning the portfolio for the future.
In addition to the Global Resources Fund outperforming the S&P 500 for the past decade, three other U.S. Global funds generated attractive returns relative to the general market. Four of U.S. Global’s emerging market and resource-oriented funds ranked among the top 45 funds (top 1 percent) in the entire mutual fund universe over the past decade.
|Fund||10-Year Rank||5-Year Rank||1-Year Rank|
Gold and Precious Metals Fund (USERX)
|World Precious Minerals Fund (UNWPX)||7||48||72|
|Global Resources Fund (PSPFX)||45||622||142|
|Eastern European Fund (EUROX)||40||8,116||4,584|
|Total Number of Funds||8,647 funds||14,686 funds||21,767 funds|
Though the past decade has been a boon for both natural resources and emerging markets investors, U.S. Global believes that these asset classes still have room to run.
“The long-term performance of these funds is a testament to the epic transformation taking place in the emerging world. The world is significantly different from the 1970s when China and India were isolationists,” Holmes says. “Today countries like China, India, Brazil and Russia have embraced the concept of free markets and still have a long way to go before they catch up with the developed world.”
“The long-term supply restrictions, the impact of a global population poised to push above the 7 billion mark, and the infrastructure needed to support those people should continue to be a catalyst for strong commodity prices,” says Holmes.
“We believe global resources are a key component of a diversified portfolio and it’s important for investors to recognize the power of diversification using natural resources and emerging markets,” says Holmes.
“Research from Roger Gibson, the best-selling author of Asset Allocation: Balancing Financial Risk, shows that $1 invested in 1971 through December 2009 would have been worth $51.79 if it were split 50-50 among U.S. stocks and commodity-linked securities and rebalanced each year. If invested solely in one or the other, that dollar would have been worth only $36.26 or $32.07, respectively,” says Holmes.
|Fund||One-Year||Five-Year||Ten-Year||Gross Expense Ratio|
Global Resources Fund (PSPFX)
|World Precious Minerals Fund (UNWPX)||45.38%||19.40%||28.40%||1.74%|
|Gold and Precious Metals Fund (USERX)||36.88%||20.19%||26.49%||1.70%|
|Eastern European Fund (EUROX)||18.66%||2.78%||20.35%||1.98%|
|S&P 500 Index||15.06%||2.29%||1.41%||N/A|
|Lipper Global Natural Resources Category||13.61%||7.93%||13.85%||N/A|
Performance data quoted above is historical. Past performance is no guarantee of future results. Results reflect the reinvestment of dividends and other earnings. 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 (e.g., short-term trading fees of 0.50%) which, if applicable, would lower your total returns. 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.
About U.S. Global Investors, Inc.
U.S. Global Investors, Inc. (www.usfunds.com) is an SEC- registered investment adviser that focuses on profitable niche markets around the world. Headquartered in San Antonio, Texas, the company provides advisory, transfer agency and other services to U.S. Global Investors Funds and other clients.
With an average of $2.45 billion in assets under management in the quarter ended September 30, 2010, U.S. Global Investors manages domestic and offshore funds offering a variety of investment options, from emerging markets to money markets. In general, trends in assets under management are the critical drivers of revenue and earnings.
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.
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. 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.
All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies. Diversification does not protect an investor from market risks and does not assure a profit.