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Contact:
Terry Badger
Director of Communications
210.308.1221
[email protected]
For Immediate Release
U.S. Global Investors funds continue success in 2007
Company’s mutual funds among top performers in year-end rankings
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SAN ANTONIO—January 10, 2008—Ten mutual funds managed by U.S. Global Investors, Inc.
(Nasdaq: GROW) are listed among the top-performing mutual funds over various time periods
going back 10 years as of the end of 2007.
The Wall Street Journal’s latest quarterly fund report ranks three U.S. Global funds in the top 1
percent overall and another fund in the top 2 percent overall as of December 31, 2007. The report
also lists two U.S. Global large-cap funds among the top 10 funds in their categories in the latest
12-month period.
In addition, one of the company’s municipal bond funds was ranked #1 in the short-intermediate
municipal debt category for the year ending December 31, 2007, and three other U.S. Global
funds also earned top-quartile rankings in various time periods, according to Lipper.
U.S. Global managed $5.40 billion in mutual fund assets at the end of 2007, and 94 percent of
these assets were in funds ranked in the top quartile of their respective peer groups in at least
one of the time periods going back 10 years, according to Lipper. Including all advisory clients,
U.S. Global Investors managed assets totaling $5.71 billion as of December 31, 2007.
“I’m very proud of this performance record across a wide range of funds, and I give credit to our
disciplined investment culture and processes that focus on a unique integration of top-down
macro factors and bottom-up, stock-specific analysis to capture opportunities and manage risk,”
says Frank Holmes, CEO and chief investment officer.
“In the long term, it is fund performance that attracts the assets that grow our company’s revenue
and earnings,” Mr. Holmes says. “Any short-term volatility in either GROW or the funds is noise –
our job is to focus on taking care of our fund shareholders. We can’t control the markets, but we
can control the execution of our investment processes.”
Page 2 – 4Q07 WSJ fund rankings
January 10, 2008
U.S. Global’s Eastern European Fund (EUROX) ranked #37 in total return among all U.S. mutual
funds for the three-month period ending December 31, 2007, according to the Wall Street
Journal. More than 6,600 distinct mutual funds (excluding multiple share classes) have a threemonth track record, according to the latest available figures from Morningstar’s Principia
database.
For the one-year period ending December 31, 2007, the China Region Opportunity Fund
(USCOX) ranked #20 overall in total return, according to the WSJ. More than 6,300 distinct
mutual funds have a one-year track record, according to the latest available data from Principia.
“This time last year, many pundits were warning investors to get out of China, saying that its
strong growth was over,” Mr. Holmes says. “There were also many predictions that emerging
markets were overvalued, and that oil was likelier to fall to $40 a barrel than rise to $80.
“As it turned out, the average China region mutual fund gained nearly 50 percent, and the
average global emerging markets and natural resources funds were both up more than 35
percent. Investors who listened to the dire predictions and sold their China and resource
investments missed out on a huge opportunity in 2007. We have been talking about the global
growth supercycle for years, and we remain bullish on emerging markets, resources and our
domestic markets this year, though we may experience periods of volatility.”
For the five-year period ending December 31, 2007, the Global Resources Fund (PSPFX) ranked
#7 overall in total return and the Eastern European Fund ranked #10, according to the WSJ. The
World Precious Minerals Fund (UNWPX) was #60 and the China Region Opportunity Fund
ranked #65. More than 4,800 distinct mutual funds have a five-year record, according to
Principia’s latest list.
The Eastern European Fund placed #8 overall in total return and the Global Resources Fund
ranked #45 overall in the 10-year period ending December 31, 2007, according to the WSJ. More
than 3,200 distinct mutual funds have a 10-year record, according to the latest available figures
from Principia.
In addition, the All American Equity Fund (GBTFX) ranked #2 among 814 large-cap core funds
and the Global MegaTrends Fund (MEGAX) was #10 among 713 large-cap growth funds for the
one-year period ending December 31, 2007, according to the WSJ.
Page 3 – 4Q07 WSJ fund rankings
January 10, 2008
U.S. Global’s Near-Term Tax Free Fund (NEARX) ranked #1 in the short-intermediate municipal
debt category for the one-year period, according to Lipper. The Near-Term Tax Free Fund ranked
#1 of 44, #8 of 32 and #12 of 24 funds for total return for the 1-, 5- and 10-year periods as of
December 31, 2007.
The Gold and Precious Metals Fund (USERX) ranked #5 among 65 gold-oriented funds in the
fourth calendar quarter of 2007, according to Lipper. The Gold and Precious Metals Fund ranked
#51 of 59, #7 of 44 and #22 of 24 funds for total return for the 1-, 5- and 10-year periods as of
December 31, 2007.
The Holmes Growth Fund (ACBGX) ranked in the top 10 percent of mid-cap growth funds for the
year ended December 31, 2007, according to Lipper. The Holmes Growth Fund ranked #38 of
601, #189 of 404 and #60 of 170 funds for total return for the 1-, 5- and 10-year periods as of
December 31, 2007.
At year-end the U.S. Government Securities Savings Fund (UGSXX) ranked in the top quartile of
U.S. government money market funds for various time periods going back 10 years, according to
Lipper. The U.S. Government Securities Savings Fund ranked #27 of 117, #15 of 95 and #7 of 67
funds for total return for the 1-, 5- and 10-year periods as of December 31, 2007.
Total Annualized Returns as of December 31, 2007
Fund
Eastern European (EUROX)
China Region Opportunity (USCOX)
Global Resources (PSPFX)
World Precious Minerals (UNWPX)
All American Equity (GBTFX)
Global MegaTrends (MEGAX)
Near-Term Tax Free (NEARX)
Gold and Precious Metals (USERX)
Holmes Growth (ACBGX)
U.S. Govt. Securities Savings (UGSXX)
1-Year
32.86%
53.29%
39.95%
23.02%
27.03%
24.54%
4.53%
16.91%
30.38%
4.70%
5-Year
43.57%
36.44%
45.95%
36.66%
16.79%
17.92%
2.68%
29.50%
16.61%
2.70%
10-Year
22.26%
11.75%
18.05%
15.65%
4.47%
6.88%
3.66%
12.89%
9.20%
3.48%
Gross
Expense
Ratio
1.99%
2.09%
0.96%
1.01%
2.13%
2.61%
1.77%
1.33%
1.74%
0.65%
Capped
Expense
Ratio
N/A
N/A
N/A
N/A
1.75%
N/A
0.45%
NA
NA
0.45%
Gross expense ratio as stated in the most recent prospectus. The Adviser for the All American
Equity Fund has contractually limited total fund operating expenses (as a percentage of net
assets) to not exceed 1.75% (exclusive of acquired fund fees and expenses) through November
1, 2008, or until such later date as the Adviser determines. The Adviser for the Near-Term Tax
Free Fund and the U.S. Government Securities Savings Fund has contractually limited total fund
operating expenses to not exceed 0.45% through November 1, 2008, or until such later date as
the Adviser determines. 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
Page 4 – 4Q07 WSJ fund rankings
January 10, 2008
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
fees described in the fund’s prospectus (e.g., short-term trading fees) 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, option 5. 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 a registered investment advisor 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, U.S.
Global Accolade Funds and other clients.
With an average of $5.04 billion in assets under management for the quarter ended September
30, 2007, U.S. Global Investors manages domestic and offshore funds offering 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 the 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.
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 fund seeks to preserve the
value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.
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. Gold funds may be susceptible to adverse economic,
political or regulatory developments due to concentrating in a single theme. The price of gold is 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 gold or gold stocks. Morningstar Principia is an
investment advisory and consulting resource that ranks mutual funds and other investment products using ranking
metrics. It ranks funds among distinct portfolios and excludes index funds. Morningstar rankings are not intended to
predict future results. More information is available at www.morningstar.com. 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. Tax-exempt income is free from federal income taxes. 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.
Bond funds are subject to interest-rate risk; their value declines as interest rates rise.
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