U.S. Global Investors, Inc. (Nasdaq: GROW), a boutique investment advisor specializing in natural resources and emerging markets, will pay 2008 income dividends and/or capital gains distributions for six of its mutual funds.
The record date was December 8, 2008, the ex-dividend date was December 9, 2008 and the payable date is December 10, 2008.
Shareholders should be aware that the distributions of dividends and/or capital gains have reduced each fund’s net asset value 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, 2008, 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 dividends and capital gains by fund:
|Fund||Income dividend per share||Short-term capital gains per share||Long-term capital gains per share||Total per share|
|World Precious Minerals (UNWPX)||0.000||0.000||2.051||2.051|
|Global Resources (PSPFX)||0.000||0.143||1.173||1.316|
|Gold and Precious Metals (USERX)||0.000||0.319||0.408||0.727|
|Global Emerging Markets (GEMFX)||0.078||0.000||0.000||0.078|
|All American Equity (GBTFX)||0.007||0.000||0.000||0.007|
|Global MegaTrends (MEGAX)||0.007||0.000||0.000||0.007|
“This year’s markets have been especially challenging for natural resources funds, and our gold and resources funds weren’t spared. Resources funds were among the strongest performers for several years, so substantial long-term gains built up. Then commodities went through their massive short-term correction this year when many highly leveraged hedge funds sold appreciated stocks to meet forced redemptions,” says Frank Holmes, CEO and chief investment officer at U.S. Global. “In our case, we and our accountants worked very hard to minimize the distributions and to be as tax-efficient as possible under the conditions.
“This correction that we are seeing across all asset classes is a very rare event in its magnitude and its structure – research shows that only 2 percent of the time do a banking crisis and a currency crisis occur simultaneously,” Mr. Holmes says. “Looking at current markets, all asset classes are extremely oversold and the U.S. dollar is very overbought. The market intervention by central banks to rebuild the global financial system by chopping interest rates, increasing money supply and creating infrastructure spending projects are very constructive for long-term global growth, which could be beneficial for commodities and emerging markets.”
To learn more about the U.S. Global Investors family of funds, including fund performance and other important information, please visit www.usfunds.com.
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 offers financial solutions and provides advisory, transfer agency and other services to U.S. Global Investors funds, U.S. Global Accolade funds and other clients.
With $2.26 billion in assets under management as of October 31, 2008, 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.
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. 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