Company’s Funds Post Top-Tier Returns in Quarter, Year and 5-Year Periods
SAN ANTONIO–(BUSINESS WIRE)–Three funds managed by U.S. Global Investors, Inc. (Nasdaq:GROW) are among the best-performing mutual funds for the fourth quarter of 2006, according to rankings published today in the Wall Street Journal.
Two of the company’s funds were also among the performance leaders for the year ended December 31, 2006, and U.S. Global Investors funds were ranked #1, #3, #4 and #5 for the latest five-year period.
U.S. Global Investors, a boutique investment advisory company, specializes in natural resources and emerging markets.
“The world now has more than 6.5 billion people, and most of them live in emerging markets,” says Frank Holmes, U.S. Global’s CEO and chief investment officer. “They have TVs and they watch CNN and see how America and the West live. They’ve embraced that lifestyle and they’re striving to catch up. That’s a key driver of global markets, and I don’t see that changing any time soon.”
The World Precious Minerals Fund (UNWPX) ranked first among all domestic funds for the five years ended December 31, 2006, while the Eastern European Fund (EUROX) was third, the Gold Shares Fund (USERX) was fourth and the Global Resources Fund (PSPFX) was fifth.
For the latest year, the World Precious Minerals Fund and the Gold Shares Fund were ranked in the top 20 performers among nearly 20,000 U.S. funds. They were also the top two gold-oriented funds for the year, according to the WSJ rankings.
“The success of our gold funds demonstrates the benefit of having some portfolio exposure to alternative asset classes,” Mr. Holmes says. “Gold has defied mainstream thinking for the last five years. But that said, we still recommend that investors limit their exposure to gold and gold-mining companies to no more than 10 percent of their portfolio and to rebalance each year.”
For the fourth quarter of 2006, the Eastern European Fund, the China Region Opportunity Fund (USCOX) and the Global Emerging Markets Fund (GEMFX) were among the top 50 performers out of more than 21,000 funds.
“We are active money managers,” says Mr. Holmes. “Our success is rooted in our team-focused approach, our extensive travel and the quantitative and qualitative models we have developed for making our investments.”
About U.S. Global Investors, Inc.
U.S. Global Investors, Inc. (www.us-global.com) is a registered investment advisor 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, U.S. Global Accolade Funds and other clients.
With an average of more than $4.79 billion in assets under management for the quarter ended Sept. 30, 2006, 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.
Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Performance does not include the effect of any fees described in the fund’s prospectus (e.g. short-term trading fees) which, if applicable, would lower your total returns. Obtain performance data current to the most recent month-end at www.usfunds.com or 1-800-US-FUNDS, option 5.
All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.
Please keep in mind that high double-digit returns are highly unusual and cannot be sustained indefinitely. Recent returns were achieved during favorable market conditions, especially within the natural resources and emerging markets sectors.
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.
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