U.S. Global Investors, Inc. (Nasdaq: GROW), a boutique investment adviser specializing in natural resources and emerging markets, announces that five of the mutual funds it manages will pay 2011 income dividend and long-term capital gains distributions.
The record date was December 8, 2011, and the ex-dividend and payable date is December 9, 2011.
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 9, 2011, 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.
|Total per share|
|All American Equity Fund (GBTFX)||$0.031||$0.000||$0.000||$0.031|
|Global MegaTrends Fund (MEGIX)||$0.054|
|Global Resources Fund (PSPFX)||$0.336||$0.000||$0.000||$0.336|
|Global Resources Fund Institutional Class (PIPFX)||$0.420||$0.000||$0.000||$0.420|
|World Precious Minerals Fund (UNWPX)||$2.021||$0.000||$0.000||$2.021|
|World Precious Minerals Fund Institutional Class (UNWIX)||$2.188||$0.000||$0.000||$2.188|
|Gold and Precious Metals Fund (USERX)||$0.000||$0.000||$2.544||$2.544|
“The negative sentiment and lack of trust in G7 government policymakers’ ability to cut fiscal spending for bloated bureaucracies has overshadowed positive growth in emerging markets,” says Frank Holmes, CEO and chief investment officer at U.S. Global Investors.
“Furthermore, this negative sentiment has generated reactionary fund flows out of most equities despite roughly 50 percent of S&P 1500 companies seeing their revenues climb 10 percent or more,” says Holmes. “We are seeing across-the-board selling of stocks despite many paying out dividends at greater rates than an investor can get from a 10-year Treasury bond.”
“On a positive note, low valuations for gold mining and natural resources companies has spurred a recent flurry of mergers and acquisition activity,” says Holmes. “Many of these deals have been struck at premiums greater than 60 percent, which signals that the smart money has identified these areas as being undervalued.”
Income dividend per share amounts for the World Precious Minerals Fund (UNWPX and UNWIX) and 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 funds target 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 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, 2011, U.S. Global Investors manages domestic and offshore funds offering a variety of investment options, from emerging markets to money markets.
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.
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.
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.
Ryan George, 210-308-1268