Four mutual funds managed by U.S. Global Investors, Inc. (Nasdaq: GROW) are among the top-performing mutual funds for various time periods going back as far as 10 years, according to rankings published in the Wall Street Journal based on total-return data from Lipper Inc.
U.S. Global Investors, a boutique investment advisory company, specializes in natural resources, emerging markets and global infrastructure.
The World Precious Minerals Fund (UNWPX) 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.
“Gold was one of the best-performing sectors in 2009 with the average fund gaining more than 50 percent, so by again having the top-ranked fund in the sector, we are happy to have delivered for our loyal shareholders,” says Frank Holmes, U.S. Global’s CEO and chief investment officer.
“Our approach to active fund management has allowed us to outperform the gold and gold-equity ETFs in the marketplace,” says Mr. Holmes. “We believe that active management will become even more valuable in this sector as money is herded into ETFs, where stock-picking is a less important part of the investment process.”
The Gold and Precious Metals Fund (USERX) and the World Precious Minerals Fund both outperformed 99 percent of all U.S. mutual funds and ETFs for the five years and 10 years ended December 31, 2009.
The Gold and Precious Metals Fund was ranked #1,136 of 7,475 (top 16 percent), #19 of 5,289 (top 1 percent) and #16 of 3,924 (top 1 percent) among all domestic mutual funds by Lipper for the 1-, 5- and 10-year periods ended December 31, 2009.
The World Precious Minerals Fund was ranked #88 of 7,475 (top 2 percent), #37 of 5,289 (top 1 percent) and #20 of 3,924 (top 1 percent) among all domestic mutual funds by Lipper for the 1-, 5- and 10-year periods ended December 31, 2009.
The Gold and Precious Metals Fund, the World Precious Minerals Fund, the Global Resources Fund (PSPFX) and the Eastern European Fund (EUROX) all outperformed 99 percent of all U.S. mutual funds and ETFs for the 10 years ended December 31, 2009.
The Global Resources Fund had previously won Lipper Fund Awards for consistent return in the four straight years from 2005 to 2008.
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 all domestic mutual funds by Lipper for the 1-, 5- and 10-year periods ended December 31, 2009.
The Eastern European Fund was ranked #167 of 7,475 (top 3 percent), #362 of 5,289 (top 7 percent) and #33 of 3,924 (top 1 percent) among all domestic mutual funds by Lipper for the 1-, 5- and 10-year periods ended December 31, 2009.
“The supercycle in natural resources was delayed in 2008 but it was not destroyed, as we saw last year,” says Mr. Holmes. “Urbanization, globalization and the related infrastructure build-out requires natural resources, and the leadership in this theme is coming from the emerging countries. This is where we are focused and where we are getting consistently good results for our shareholders. Going forward, we expect to see the global supercycle continue, though with considerable performance rotation and volatility among the commodities because of supply-and-demand factors and fluctuations in the U.S. dollar.”
About U.S. Global Investors, Inc.
U.S. Global Investors, Inc. (www.usfunds.com) is an SEC-registered investment adviser specializing in natural resources, emerging markets and global infrastructure. 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 $2.4 billion in assets under management in the quarter ended September 30, 2009, 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.
U.S. Global Investors routinely posts corporate filings and other important information on the company’s website, www.usfunds.com.
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.
Lipper ratings for Total Return reflect funds’ historical total return performance relative to peers as of December 31, 2009. 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. Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk. 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. 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 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. 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.
Terry Badger, 210-308-1221
Director of Communications