U.S. Global Investors, Inc. (Nasdaq: GROW), a boutique registered investment adviser offering actively managed mutual funds for investors and financial advisors who seek alpha in gold, resources and emerging markets, announced improvements to benefit shareholders and help drive asset growth.
One change is the elimination of all redemption fees charged to equity fund shares held longer than seven days. For those equity fund shares held seven days or less, fees have been substantially reduced up to 90 percent, resulting in a charge of 0.05 percent, or a fee of $5 per $10,000 investment.
Redemption fees were historically used across the mutual fund industry to discourage market timers, but improvements in technology and pricing practices have reduced the risk. In the interest of protecting shareholders with a long-term investment horizon, U.S. Global continues to monitor for disruptive short-term market timers.
“We are pleased to make this change while, at the same time, maintaining our high standards of regulatory oversight and exceptional service for our investors,” says Frank Holmes, U.S. Global Investors CEO. “We believe the move to substantially reduce fees makes it easier for our shareholders and our advisors to invest in the funds, increasing the attractiveness of the funds in a highly competitive arena.”
$1 Million Minimum Initial Investment for Institutional Share Class Should Encourage More Institutional Investors
The minimum initial investment for the institutional share class is now $1 million, reduced from $5 million. U.S. Global offers three institutional share class funds, including the Global Resources (PIPFX), World Precious Minerals (UNWIX) and MegaTrends (MEGIX) Funds. This lower initial investment broadens the opportunity for registered investment advisors and other institutional investors.
“Smaller retail accounts are more costly for fund families to service due to the regulatory monitoring and distribution needs. Institutional accounts benefit from economies of scale, which translates into a lower expense ratio,” says Holmes.
The Eastern European Fund (EUROX) Is Now the Emerging Europe Fund
The Eastern European Fund (EUROX) is now known as the Emerging Europe Fund. While the fund maintains the identical investment and stock selection process, the new name better reflects the emerging nature of the countries in which the fund invests. The fund seeks companies across the emerging European area poised to benefit from the domestic growth of the area, the eventual European recovery and currently low valuations.
“These changes are also positive for the GROW shareholder, as the funds are now more competitive with other gold, emerging markets and resources investments,” says Holmes. “Through the firm’s weekly Investor Alert and my blog, Frank Talk, we have regularly educated our shareholders on the prudent use of resources, gold and emerging markets investments within a well-diversified portfolio. For example, we believe it is wise to allocate 5 to 10 percent of a portfolio in gold and gold stocks and rebalance annually.”
The changes to the funds are effective immediately. To see more about the funds, go to our website at www.usfunds.com.
About U.S. Global Investors, Inc.
U.S. Global Investors, Inc. (www.usfunds.com) is a boutique registered investment adviser specializing in natural resources and emerging 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 $1.68 billion in assets under management in the quarter ended December 31, 2012, 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.
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. The Emerging Europe 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.
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.
Alpha is a measure of performance on a risk-adjusted basis. Alpha takes the volatility (price risk) of a mutual fund and compares its risk-adjusted performance to a benchmark index. The excess return of the fund relative to the return of the benchmark index is a fund's alpha.
All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.
Susan Filyk, 210-308-1286