U.S. Global Investors introduces institutional share class for gold, commodity and infrastructure funds
SAN ANTONIO–March 2, 2010–U.S. Global Investors, Inc. (NASDAQ: GROW), a boutique registered investment advisory firm specializing in natural resources and emerging markets, today announced the creation of an institutional share class for three no-load mutual funds managed by the company.
The shares became available on March 1 for institutional investors in the World Precious Minerals Fund, which invests primarily in junior and mid-tier gold and precious metals exploration companies; the Global Resources Fund, which invests in natural resources equities; and the Global MegaTrends Fund, whose strategy is to invest in equities benefiting from the dramatic increase in infrastructure development around the world.
The World Precious Minerals Fund was first in total return among all U.S. gold-oriented mutual funds and exchange-traded funds for the year ended December 31, 2009. The fund was ranked #1 of 71, #34 of 51 and #18 of 29 among gold-oriented funds by Lipper for the 1-, 5- and 10-year periods ended December 31, 2009.
The top ranking for 2009 is the latest achievement for the World Precious Minerals Fund, which won Lipper Fund Awards in 2006, 2007 and 2008 for its consistent return compared to peers. The fund was also 2006’s top-ranked gold fund in total return, according to Lipper.
The Global Resources Fund won Lipper Fund Awards for consistent return in the four straight years from 2005 to 2008. It was also among the top 4 percent of all U.S. mutual funds in total return in each of the latest 1-, 5- and 10-year performance periods.
The Global Resources Fund was ranked #281 of 7,475 (top 4 percent), #161 of 5,289 (top 4 percent) and #26 of 3,924 (top 1 percent) among the overall mutual fund universe for total return by Lipper for the 1-, 5- and 10-year periods ended December 31, 2009*.
U.S. Global Investors was among the first U.S. asset managers to recognize global infrastructure as an investment opportunity, and in 2007, the company focused the Global MegaTrends Fund on this opportunity. This theme is at the intersection of U.S. Global’s investment specialization in natural resources and emerging markets committed to building out their infrastructure to support their rapid economic growth.
“We were early in identifying the supercycle for natural resources that’s being driven by the global infrastructure boom, primarily in emerging markets,” says Frank Holmes, CEO and Chief Investment Officer for U.S. Global Investors. “Powerful urbanization and globalization trends are increasing the demand for natural resources. There has been explosive growth of middle-class households in China, India, Brazil and elsewhere who want better housing and access to goods and services long taken for granted in the developed world. Their rising wealth is also being seen in rising demand for gold, both as a luxury item and as a store of wealth.
“We use a matrix of top-down and bottom-up models for stock selection, and we believe government policies are a key precursor for change – for that reason, we keep track of the fiscal and monetary policies of the largest developed and developing markets,” Mr. Holmes says. “We have been publishing on global growth themes for years and have won many awards for our educational communication, which includes our Weekly Investor Alert, our investment blog and our quarterly magazine.
“We also communicate directly to institutional investors each week through our Advisor Alert. Institutions are embracing natural resources and precious metals as an important part of a diversified portfolio, and they are expressing more interest in our award-winning investment strategies,” Mr. Holmes says. “Pension plans, endowments, foundations and other institutional clients value that we are unique, and it was important for us to recognize that they have unique business needs. In bringing out the institutional share class, we are being responsive to those needs.”
The ticker for the institutional share class of the Global Resources Fund is PIPFX, the World Precious Minerals Fund is UNWIX and the Global MegaTrends Fund is MEGIX. The minimum investment in this share class is $5 million.
For more information about the new institutional shares of the Global Resources Fund, the World Precious Minerals Fund or the Global MegaTrends Fund, please contact Michael Dunn, Director of Institutional Services, at 210-308-1287 or firstname.lastname@example.org.
About U.S. Global Investors, Inc.
U.S. Global Investors, Inc. (www.usfunds.com) is a 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 $2.7 billion in assets under management in the quarter ended December 31, 2009, U.S. Global Investors manages domestic and offshore funds offering a variety of investment options, from emerging markets to money markets.
U.S. Global Investors routinely posts corporate filings and other important information on the company’s website, www.usfunds.com.
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.
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 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. The Lipper Fund Award selection process began with Lipper calculating a Consistent Return score for each fund over various time periods. Consistent Return is a quantitative metric that incorporates two characteristics: risk-adjusted return, and the strength of the fund’s performance trend. The top-scoring Consistent Return fund within each classification received the awards. Past performance does not guarantee future results.Although Lipper makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Lipper. Users acknowledge that they have not relied upon any warranty, condition, guarantee, or representation made by Lipper. Any use of the data for analyzing, managing, or trading financial instruments is at the user’s own risk. This is not an offer to buy or sell securities.
*Correction made to clarify ranking criteria on 8/13/2010