U.S. Global Investors Searching for Opportunities, Managing Risk - - PowerPoint PPT Presentation
U.S. Global Investors Searching for Opportunities, Managing Risk Frank E. Holmes CEO and CIO Susan McGee President and General Counsel Catherine Rademacher CFO Susan Filyk Investor Relations www.usfunds.com February 7, 2013 1.800.US.FUNDS
www.usfunds.com 1.800.US.FUNDS
Searching for Opportunities, Managing Risk
February 7, 2013
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Frank E. Holmes CEO and CIO Susan McGee President and General Counsel Catherine Rademacher CFO Susan Filyk Investor Relations
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Frank Holmes Susan McGee Catherine Rademacher Susan Filyk
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about our relative business outlook. Any forward-looking statements and all other statements made during this webcast that don’t pertain to historical facts are subject to risks and uncertainties that may materially affect actual results. Please refer to our press release and the corresponding Form 10-Q filing for more detail on factors that could cause actual results to differ materially from any described today in forward-looking statements. Any such statements are made as of today, and U.S. Global Investors accepts no obligation to update them in the future.
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Percentage of shares outstanding as of 12/31/2012 Source: NASDAQ
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10-Year Annualized 14.59%
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Dividends through 1/29/13
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*Expected to close by 3/31/13
The Galileo Mutual Funds are not offered for sale in the United States. They are represented across Canada by independent financial advisors.
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View the presentation “Anticipate Before You Participate” at www.usfunds.com/investor-resources/publications/research
Rolling 1 Year
U.S. Global Investors (GROW) 114.9% NYSE Arca Gold BUGS Index (HUI) 35.3% WTI Crude Oil 35.2% MSCI Emerging Markets (MXEF) 31.2% S&P 500 Index (SPX) 18.2% Gold Bullion 14.0%
12-month rolling volatility of price action over 10 year period Standard Deviation (as of 12/31/12) based on 10-Year Data
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Managing Expectations — Anticipate Before You Participate
Number of +10% Moves Number of
Frequency of ±10% Moves U.S. Global Investors (GROW) 752 593 52% NYSE Arca Gold BUGS Index (HUI) 490 296 30% WTI Crude Oil 434 302 29% MSCI Emerging Markets (MXEF) 139 169 11% Gold Bullion 130 60 7% S&P 500 Index (SPX) 33 72 4%
Calculated over rolling 20-trading day periods. Based on approximately 2,550 total occurrences over the past 10 years as of 12/31/2012.
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3 Year Average EPS Growth
3 Year Average Return on Equity
Dividend Yield
Dividend yields calculated as of 1/30/2013. Earnings per share and return on equity based on the quarter ended 12/31/2012. * Median calculations based from quarterly results ended 12/31/2012 by Affiliated Managers Group Inc., AllianceBernstein Holding L.P., Artio Global Investors, Blackrock Inc., Calamos Asset Management Inc., Cohen & Steers Inc, Eaton Vance Corp., Epoch Holding Corp., Federated Investors Inc., Franklin Resources Inc., GAMCO Investors Inc., INVESCO Ltd., Janus Capital Group Inc., Legg Mason Inc., Pzena Investment Management Inc., T. Rowe Price Group Inc., Virtus Investment Partners Inc., Waddell & Reed Financial Inc. and Westwood Holdings Group Inc. Source: FactSet
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Winner of 29 Lipper performance awards, certificates and top rankings since 2000
(Four out of 13 U.S. Global Investors Funds received Lipper performance awards from 2005 to 2008, six out of 13 received certificates from 2000 to 2007, and two out of 13 received top rankings from 2009 to 2010.)
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Data from 9/30/2012 – 12/31/2012
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There’s Been a Global Easing Cycle
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October 22, 2012
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Postponed by Basel III — “Follow the Money”
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Major Price Reversal Good for Employment and Commodity Demand…Collateral Stimulation…Cars, Appliances
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2014
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Strong Correlation Between Rising Incomes and Gold Price
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requirements of 90 Million oz/year a discovery cost of $100/oz is
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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. 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. 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. By investing in a specific geographic region, a regional fund’s returns and share price may be more volatile than those
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. Although Lipper makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by
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.
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figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. Past performance does not guarantee future results. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies. The Philadelphia Stock Exchange Gold and Silver Index (XAU) is a capitalization-weighted index that includes the leading companies involved in the mining of gold and silver. The MSCI China Free Index is a capitalization weighted index that monitors the performance of stocks from the country of China. The Purchasing Manager’s Index is an indicator of the economic health of the manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment. The NAHB Housing Market Index is derived from a monthly survey, and gauges builder perceptions of current single-family home sales and sales expectations for the next six months, as well as rating traffic of prospective buyers. Scores from each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor. The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The NYSE Arca Gold BUGS (Basket of Unhedged Gold Stocks) Index (HUI) is a modified equal dollar weighted index of companies involved in gold mining. The HUI Index was designed to provide significant exposure to near term movements in gold prices by including companies that do not hedge their gold production beyond 1.5 years. The Wilshire 5000 Index is a price appreciation index where dividends are reinvested. The index measures the performance of all U.S. headquartered equity securities with readily available price data.
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performance to a benchmark index. The excess return of the fund relative to the return of the benchmark index is a fund's alpha. Standard deviation is a measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. Standard deviation is also known as historical volatility. M1 Money Supply includes funds that are readily accessible for spending. M2 Money Supply is a broad measure of money supply that includes M1 in addition to all time-related deposits, savings deposits, and non-institutional money-market funds. Holdings in the Global Resources Fund, World Precious Minerals Fund, Gold and Precious Metals Fund and Eastern European Fund as a percentage of net assets as of 12/31/2012: Gold Fields (World Precious Minerals Fund 0.05%, Gold and Precious Metals Fund 0.04%); iShares Core Total US Bond 0.00%; SPDR Gold Shares (World Precious Minerals Fund 1.64%, Gold and Precious Metals Fund 2.70%); McDonald’s 0.00%; Starbucks 0.00%; Franco-Nevada Corp. 0.0%; Goldcorp Inc. (Gold and Precious Metals Fund 0.22%, World Precious Minerals Fund 0.03%); Newmont Mining Corp. (Gold and Precious Metals Fund 3.51%, World Precious Minerals Fund 1.31%, Global Resources Fund 0.08%); Coach Inc. 0.0%; BMW Corp. 0.0%; Hermes International S.A. 0.0%; Affiliated Managers Group, Inc. 0.0%.