Net Asset Value as
of 06/04/2024:
Our Mutual Funds
Explore our no-load mutual funds, ranging from natural resources, emerging markets, and infrastructure, to precious metals and bond funds. We believe that we are specially qualified to be an integral part of your investment strategy.
Net Asset Values
| (NAV) As of 06/04/2024 | |||||
|---|---|---|---|---|---|
| Fund | Symbol | Close | Previous | Change | YTD |
| Global Luxury Goods Fund (USLUX) | USLUX | 20.73 | 20.81 |
-0.08
|
7.86%
|
| Gold and Precious Metals Fund (USERX) | USERX | 11.30 | 11.69 |
-0.39
|
14.26%
|
| World Precious Minerals Fund (UNWPX) | UNWPX | 1.54 | 1.59 |
-0.05
|
6.21%
|
| Global Resources Fund (PSPFX) | PSPFX | 3.95 | 4.05 |
-0.10
|
-0.5%
|
| Near-Term Tax Free Fund (NEARX) | NEARX | 2.09 | 2.08 |
0.01
|
0.53%
|
| U.S. Government Securities Ultra-Short Bond Fund (UGSDX) | UGSDX | 1.94 | 1.94 |
0.00
|
1.26%
|
Occasionally one or more of the above prices may be different than those reported elsewhere. With our global investments and the early deadline imposed by reporting services, occasionally a price is provided to the services before it has been fully verified. The prices above are always the most current and accurate available.
Past performance does not guarantee 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.
Annualized Monthly Yields as of 04/30/2024
| Bond Funds | Inception Date | 30 Day SEC | Tax Equivalent (40.8% Tax Rate) | SEC Yield W/O Waivers |
|---|---|---|---|---|
| Near-Term Tax Free Fund (NEARX) | 12/04/1990 | 2.38% | 4.01% | 1.49% |
| U.S. Government Securities Ultra-Short Bond Fund (UGSDX) | 11/01/1990 | 4.45% | N/A | 3.69% |
Occasionally one or more of the above prices may be different than those reported elsewhere. With our global investments and the early deadline imposed by reporting services, occasionally a price is provided to the services before it has been fully verified. The prices above are always the most current and accurate available.
Performance data quoted above is historical. Past performance does not guarantee 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.
Quarterly Yields as of 03/31/2024
| Bond Funds | Inception Date | 30-day SEC | Tax Equivalent (40.8% Tax Rate) | SEC Yield w/o Waiver & Reimbursement | Maturity |
|---|---|---|---|---|---|
| Near-Term Tax Free Fund NEARX | 12/04/1990 | 2.83% | 4.77% | 1.92% | 1.00 years |
| U.S. Government Securities Ultra-Short Bond Fund (UGSDX) | 11/01/1990 | 4.22% | N/A | 3.46% | 0.59 years |
Occasionally one or more of the above prices may be different than those reported elsewhere. With our global investments and the early deadline imposed by reporting services, occasionally a price is provided to the services before it has been fully verified. The prices above are always the most current and accurate available.
Performance data quoted above is historical. Past performance does not guarantee 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.
Annualized Quarterly Returns as of 03/31/2024
| Fund | Inception Date | YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
|---|---|---|---|---|---|---|---|
| Gold and Precious Metals Fund (USERX) | 7/1/1974 | 3.94% | -1.91% | 8.45% | 5.20% | 0.67% | 1.48% |
| U.S. Global Luxury Goods Fund (USLUX) | 10/17/1994 | 9.21% | 14.29% | 9.72% | 7.01% | 8.35% | 2.05% |
| World Precious Minerals Fund (UNWPX) | 11/27/1985 | -2.07% | -21.55% | -0.32% | -3.54% | 1.57% | 1.74% |
| Near-Term Tax Free Fund (NEARX) | 11/1/1990 | 0.12% | 2.19% | 0.32% | 0.72% | 3.18% | 1.29% |
| U.S. Government Securities Ultra-Short Bond Fund (UGSDX) | 12/4/1990 | 1.04% | 3.90% | 0.88% | 0.77% | 2.38% | 1.17% |
| Global Resources Fund (PSPFX) | 8/3/1983 | 0% | -8.53% | 5.69% | -3.37% | 3.18% | 1.69% |
Expense ratios as stated in the most recent prospectus.
The Adviser of the Gold & Precious Metals Fund has contractually limited total fund operating expenses (exclusive of acquired fund fees and expenses of, extraordinary expenses, taxes, brokerage commissions and interest, and advisory fee performance adjustments to not exceed 1.75% on an annualized basis through April 30, 2025. Total annual expenses after reimbursement of (0.02%) were 1.46%.
The Adviser of the Global Luxury Goods Fund has contractually limited total fund operating expenses (exclusive of acquired fund fees and expenses of extraordinary expenses, taxes, brokerage commissions and interest, and advisory fee performance adjustments to not exceed 1.75% on an annualized basis through April 30, 2025. Total annual expenses after reimbursement of (0.18%) were 1.87%.
The Adviser of the World Precious Minerals Fund has contractually limited total fund operating expenses (exclusive of acquired fund fees and expenses of extraordinary expenses, taxes, brokerage commissions and interest, and advisory fee performance adjustments) to not exceed 1.75% on an annualized basis through April 30, 2025. Total annual expenses after waiver or reimbursement of (0.27%) were 1.47%.
The Adviser of the Near-Term Tax Free Fund has contractually limited the total fund operating expenses (exclusive of acquired fund fees and expenses extraordinary expenses, taxes, brokerage commissions and interest) to not exceed 0.45% on an annualized basis through April 30, 2025. Total annual expenses after the waiver of (0.84%) were 0.45%. The fund’s yield calculation is based on the holdings’ yield to maturity for prior 30 days; distribution may differ.
The Adviser of the U.S. Government Securities Ultra-Short Bond Fund has voluntarily limited total fund operating expenses (exclusive of acquired fund fees and expenses, extraordinary expenses, taxes, brokerage commissions and interest) to not exceed 0.45%. With the voluntary expense waiver amount of (0.72%), total annual expenses after reimbursement were 0.45%. U.S. Global Investors, Inc. can modify or terminate the voluntary limit at any time, which may lower a fund’s yield or return. The fund’s yield calculation is based on the holdings’ yield to maturity for prior 30 days; distribution may differ.
The Adviser of the Global Resources Fund has contractually limited total fund operating expenses (exclusive of acquired fund fees and expenses of extraordinary expenses, taxes, brokerage commissions and interest, and advisory fee performance adjustments) to not exceed 1.75%. Total annual expenses after reimbursement of (0.22%) were 1.47%.
U.S. Global Investors, Inc. can modify or terminate the voluntary limits at any time, which may lower a fund’s yield or return.
Performance data quoted above is historical. Past performance is no guarantee of future results. Results reflect the reinvestment of dividends and other earnings. For a portion of periods, the fund had expense limitations, without which returns would have been lower. 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 direct fees described in the fund’s prospectus which, if applicable, would lower your total returns. Performance quoted for periods of one year or less is cumulative and not annualized. Obtain performance data current to the most recent month-end at www.usfunds.com or 1-800-US-FUNDS. High double-digit returns are attributable, in part, to unusually favorable market conditions and may not be repeated or consistently achieved in the future.
Month End Average Annual Total Returns as of 04/30/2024
| Fund | Inception Date | One Month Return | YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
|---|---|---|---|---|---|---|---|---|
| Gold and Precious Metals Fund (USERX) | 7/1/1974 | 6.13% | 10.31% | 5.00% | 11.21% | 5.69% | 0.79% | 1.48% |
| USGI Global Luxury Goods Fund (USLUX) | 10/17/1994 | -4.81% | 3.95% | 8.68% | 7.63% | 6.84% | 8.15% | 2.05% |
| World Precious Minerals Fund (UNWPX) | 11/27/1985 | 5.63% | 3.45% | -16.67% | 1.85% | -3.07% | 1.71% | 1.74% |
| Near-Term Tax Free Fund (NEARX) | 12/4/1990 | -0.27% | -0.15% | 2.25% | 0.33% | 0.63% | 3.16% | 1.29% |
| U.S. Government Securities Ultra-Short Bond Fund (UGSDX) | 11/1/1990 | -0.14% | 0.89% | 3.98% | 0.83% | 0.76% | 2.37% | 1.17% |
| Global Resources Fund (PSPFX) | 8/3/1983 | 0.25% | 0.25% | -7.01% | 5.84% | -3.58% | 3.18% | 1.69% |
Expense ratios as stated in the most recent prospectus.
The Adviser of the Gold & Precious Metals Fund has contractually limited total fund operating expenses (exclusive of acquired fund fees and expenses of, extraordinary expenses, taxes, brokerage commissions and interest, and advisory fee performance adjustments to not exceed 1.75% on an annualized basis through April 30, 2025. Total annual expenses after reimbursement of (0.02%) were 1.46%.
The Adviser of the Global Luxury Goods Fund has contractually limited total fund operating expenses (exclusive of acquired fund fees and expenses of extraordinary expenses, taxes, brokerage commissions and interest, and advisory fee performance adjustments to not exceed 1.75% on an annualized basis through April 30, 2025. Total annual expenses after reimbursement of (0.18%) were 1.87%.
The Adviser of the World Precious Minerals Fund has contractually limited total fund operating expenses (exclusive of acquired fund fees and expenses of extraordinary expenses, taxes, brokerage commissions and interest, and advisory fee performance adjustments) to not exceed 1.75% on an annualized basis through April 30, 2025. Total annual expenses after waiver or reimbursement of (0.27%) were 1.47%.
The Adviser of the Near-Term Tax Free Fund has contractually limited the total fund operating expenses (exclusive of acquired fund fees and expenses extraordinary expenses, taxes, brokerage commissions and interest) to not exceed 0.45% on an annualized basis through April 30, 2025. Total annual expenses after the waiver of (0.84%) were 0.45%. The fund’s yield calculation is based on the holdings’ yield to maturity for prior 30 days; distribution may differ.
The Adviser of the U.S. Government Securities Ultra-Short Bond Fund has voluntarily limited total fund operating expenses (exclusive of acquired fund fees and expenses, extraordinary expenses, taxes, brokerage commissions and interest) to not exceed 0.45%. With the voluntary expense waiver amount of (0.72%), total annual expenses after reimbursement were 0.45%. U.S. Global Investors, Inc. can modify or terminate the voluntary limit at any time, which may lower a fund’s yield or return. The fund’s yield calculation is based on the holdings’ yield to maturity for prior 30 days; distribution may differ.
The Adviser of the Global Resources Fund has contractually limited total fund operating expenses (exclusive of acquired fund fees and expenses of extraordinary expenses, taxes, brokerage commissions and interest, and advisory fee performance adjustments) to not exceed 1.75%. Total annual expenses after reimbursement of (0.22%) were 1.47%.
U.S. Global Investors, Inc. can modify or terminate the voluntary limits at any time, which may lower a fund’s yield or return.
Performance data quoted above is historical. Past performance is no guarantee of future results. Results reflect the reinvestment of dividends and other earnings. For a portion of periods, the fund had expense limitations, without which returns would have been lower. 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 direct fees described in the fund’s prospectus which, if applicable, would lower your total returns. Performance quoted for periods of one year or less is cumulative and not annualized. Obtain performance data current to the most recent month-end at www.usfunds.com or 1-800-US-FUNDS. High double-digit returns are attributable, in part, to unusually favorable market conditions and may not be repeated or consistently achieved in the future.
| Fund | Date | Dividend/Distribution Per Share | Reinvest Price Per Share |
|---|---|---|---|
| Near-Term Tax Free Fund | 05/31/24 | $ 0.004147 | $ 2.08 |
| U.S. Government Securities Ultra-Short Bond Fund | 05/31/24 | $ 0.006980 | $1.94 |
The Fund’s closing Net Asset Value (NAV) on the ex-dividend date will be reduced by the amount of the distribution. There is no guarantee that the fund will continue to distribute income.
Past performance does not guarantee 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.
Global Luxury Goods Fund (USLUX)
Fact Sheet
Fund Vitals:
NAV: $20.73
Change as of 06/04/2024
$-0.08
Ticker:
USLUX
Inception Date:
10/17/1994
AUM
$49510666.36 as of 06/04/2024
How to Invest Request Info Download Prospectus
About The Global Luxury Goods Fund
The Global Luxury Goods Fund provides investors access to companies around the world that are involved in the design, manufacture and sale of products and services that are not considered to be essential but are highly desired within a culture or society.
Investments in luxury goods companies may expose the fund to consumer discretionary industries. These include but are not limited to apparel, automotive, home and office products, leisure products, recreation facilities, retail discretionary, travel and more.
Fund Objective
The Global Luxury Goods Fund’s primary objective is to seek long-term capital appreciation.
Fund Strategy
Under normal market conditions, the Global Luxury Goods Fund will invest at least 80 percent of its net assets in securities of companies producing, processing, distributing, and manufacturing luxury products, services or equipment. The securities in which the fund may invest include common stocks, preferred stocks, convertible securities, rights and warrants, exchange-traded funds (“ETFs”) that represent interests in, or related to, luxury goods companies, and depository receipts (American Depository Receipts (ADRs) and Global Depository Receipts (GDRs).
The fund’s benchmark is the S&P Composite 1500 Index.
**On July 1, 2020, the Holmes Macro Trends Fund (MEGAX) changed its name and investment strategy to the Global Luxury Goods Fund (USLUX).
The S&P Global Luxury Index is comprised of 80 of the largest publicly-traded companies engaged in the production or distribution of luxury goods or the provision of luxury services that meet specific investibility requirements.
Companies in the consumer discretionary sector are subject to risks associated with fluctuations in the performance of domestic and international economies, interest rate changes, increased competition and consumer confidence. The performance of such companies may also be affected by factors relating to levels of disposable household income, reduced consumer spending, changing demographics and consumer tastes, among others.
The Global Luxury Goods Fund gained 9.21% in the first quarter of 2024, underperforming its benchmark, the S&P 1500 Composite Index, which gained 10.31%. However, the Global Luxury Goods Fund outperformed the S&P Global Luxury Index, which gained 5.56%. The fund’s objective strategy is more aligned with the performance of the S&P Global Luxury Index, as both focus on high-end products and services. See complete fund performance here.
The performance data quoted represents past performance. Past performance does not guarantee 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.
Strengths
- The fund’s good stock selection in consumer discretionary had the most positive effect on the fund’s performance relative to the S&P 1500 Index. The luxury fund invests most of its assets in high-end products and services, whereas the S&P 1500 index has a much smaller exposure to this sector. The fund’s superior strategy of overweighting Ferrari and having no exposure to Tesla had the most positive effect on the fund’s performance against the S&P 1500 Index. Shares of Ferrari gained 28.8% in the first quarter, while shares of Tesla declined 29.3%.
- The fund’s overweight position in apparel within the discretionary sector had the second most positive effect on the fund’s performance relative to the index. Shares of Hermès, well known for its high-end Birkin and Kelly bags, gained 20.75%. LVMH stock gained 11.44%, and Deckers Outdoor’s shares surged by 40.8%. The S&P 1500 index had no exposure to Hermès or Louis Vuitton, and it underweighted Deckers.
- The strongest contributor to the fund’s performance was Hermès, contributing a positive 1.7% to the fund’s performance. Share performance was supported by strong demand for Birkin and Kelly bags. The company raised prices at the beginning of the year, increasing the price tag on the extremely popular Birkin 25-centimeter leather bag by 9.6% from its 2023 price of $10,400 to its updated 2024 price of $11,400.
Weaknesses
- The fund’s underweight position in information technology had the most negative effect on the fund’s performance relative to the S&P 1500 Index. During the quarter, the fund had no exposure to semiconductors. Shares of NVIDIA Corporation surged 82.5%, and Broadcom recorded a gain of 19.3%. Semiconductor stocks, contrary to the fund’s objective to focus on high-end luxury goods and services, do not qualify for investment in the luxury fund.
- The fund’s weak stock selection within the consumer staples sector had the second most negative effect on the fund’s performance relative to the index. Shares of Coty lost 3.7% during the 1st quarter, while shares of L’Oreal declined by 0.34%. The index had no exposure to L’Oreal and only a very small position in Coty.
- The biggest detractor to the fund’s performance was Lululemon, contributing a negative 0.7% to the fund’s overall performance. Shares declined 23.6% in the first quarter, with the company projecting weaker sales, especially in the United States.
Current Outlook
Despite concerns about slowing sales, luxury stocks showed strong performance in the first quarter of the year. In the U.S., equities, as measured by the S&P 1500, gained 10.31%. Luxury names, as measured by the S&P Global Luxury Index, gained 5.61%, while Europe, as measured by the STOXX 600 index, gained 5.23%. However, the China region lagged behind, with the CSI 300 Index gaining only 0.84% and the HSCI index losing 2.98%.
As we entered the new year, following a robust performance in the luxury sector the previous year, many observers became more cautious due to weaker demand from China and sluggish economic growth. Nevertheless, the first quarter reporting season yielded decent results. While most companies reported earnings beats, they also cautioned about potential weaker sales for the full year 2024.
The S&P 1500 Composite is a broad-based capitalization-weighted index of 1500 U.S. companies and is comprised of the S&P 400, S&P 500, and the S&P 600. The S&P Global Luxury Index measures the performance of 80 companies engaged in the production, distribution, or provision of luxury goods and services drawn from the S&P Global BMI. The STOXX Europe 600 Index is derived from the STOXX Europe Total Market Index (TMI) and is a subset of the STOXX Global 1800 Index. The CSI 300 Index is a free-float weighted index that consists of 300 A-share stocks listed on the Shanghai or Shenzhen Stock Exchanges.
A basis point, or bp, is a common unit of measure for interest rates and other percentages in finance. One basis point is equal to 1/100th of 1%, or 0.01% (0.0001).
Fund portfolios are actively managed, and holdings may change daily. Holdings are reported as of the most recent quarter-end. Holdings in the Global Luxury Goods Fund as a percentage of net assets as of 03/31/2024: Ferrari NV 4.83%, Tesla Inc. 0.04%, Hermes International SCA 7.73%, LVMH Moet Hennessy Louis Vuitton 4.72%, Deckers Outdoor Corp. 1.81%.
Standard Disclosure
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. Foreside Fund Services, LLC, Distributor. U.S. Global Investors is the investment adviser.
Stock markets can be volatile and share prices can fluctuate in response to sector-related and other risks as described in the fund prospectus.
All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.
Top 10 Equity and Debt Holdings as of 03-31-2024
| Holding | Percentage |
|---|---|
| Hermes International | 7.73% |
| Cie Financiere Richemont SA | 5.07% |
| Ferrari NV | 4.83% |
| LVMH Moet Hennessy Louis Vuitton SE | 4.72% |
| UBS Group AG | 4.10% |
| Bayerische Motoren Werke AG | 3.92% |
| Apple, Inc. | 3.84% |
| Consteallation Brands, Inc. | 3.70% |
| Volkswagen AG | 3.64% |
| Industria de Diseno Textil SA | 3.06% |
Industry Breakdown as of 03-31-2024
| Sector | Percentage |
|---|---|
| Consumer Discretionary | 50.34% |
| Consumer Staples | 14.36% |
| Financial | 12.18% |
| Materials | 9.53% |
| Cash Equivalents | 7.72% |
| Information Technology | 3.85% |
| Communication Services | 1.95% |
| Energy | 0.07% |
Regional Breakdown as of 03-31-2024
| Region | Percentage |
|---|---|
| United States | 31.92% |
| France | 16.66% |
| Germany | 10.51% |
| Canada | 9.87% |
| Switzerland | 9.48% |
| Italy | 6.37% |
| Other | 15.19% |
Growth of $10,000 Over 10 Years as of 03/31/2024
The chart illustrates the performance of a hypothetical $10,000 investment made in the fund during the depicted time frame. Figures include reinvestment of capital gains and dividends, but the performance does not include the effect of any direct fees described in the fund’s prospectus (e.g., short-term trading fees) which, if applicable, would lower your total returns.
Month End Average Annual Total Returns as of 04/30/2024
| YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
| 3.95% | 8.68% | 7.63% | 6.84% | 8.15% | 2.05% |
Quarter End Average Annual Total Returns as of 03/31/2024
| YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
| 9.21% | 14.29% | 9.72% | 7.01% | 8.35% | 2.05% |
Expense ratio as stated in the most recent prospectus.
The Adviser of the Global Luxury Goods Fund has contractually limited total fund operating expenses (exclusive of acquired fund fees and expenses of extraordinary expenses, taxes, brokerage commissions and interest, and advisory fee performance adjustments to not exceed 1.75% on an annualized basis through April 30, 2025. Total annual expenses after reimbursement of (0.18%) were 1.87%.
U.S. Global Investors, Inc. can modify or terminate the voluntary limits at any time, which may lower a fund’s yield or return.
Performance data quoted above is historical. Past performance is no guarantee of future results. Results reflect the reinvestment of dividends and other earnings. For a portion of periods, the fund had expense limitations, without which returns would have been lower. 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 direct fees described in the fund’s prospectus which, if applicable, would lower your total returns. Performance quoted for periods of one year or less is cumulative and not annualized. Obtain performance data current to the most recent month-end at www.usfunds.com or 1-800-US-FUNDS. High double-digit returns are attributable, in part, to unusually favorable market conditions and may not be repeated or consistently achieved in the future.
Gold and Precious Metals Fund (USERX)
Fact Sheet
Fund Vitals:
NAV: $11.3
Change as of 06/04/2024
$-0.39
Ticker:
USERX
Inception Date:
07/01/1974
AUM
$103065603.51 as of 06/04/2024
How to Invest Request Info Download Prospectus
About the Gold and Precious Metals Fund
The Gold and Precious Metals Fund is the first no-load gold fund in the U.S. We have a history as pioneers in portfolio management in this specialized sector. Our team brings valuable background in geology and mining finance, important to understanding the technical side of the business. The fund focuses on producers, companies currently pulling gold or other precious minerals out of the ground. These companies, often called “seniors,” generally have the largest market caps in the mining sector.
Fund Objective
The Gold and Precious Metals Fund seeks capital appreciation while protecting against inflation and monetary instability. The fund also pursues current income as a secondary objective.
Fund Strategy
Under normal market conditions, the Gold and Precious Metals Fund will invest at least 80 percent of its net assets in equity securities of companies predominately involved in the mining, fabrication, processing, marketing, or distribution of metals including gold, silver, platinum group, palladium and diamonds. Gold companies include mining companies that exploit gold deposits that are supported by by-products and co-products such as copper, silver, lead and zinc, and also have diversified mining companies which produce a meaningful amount of gold. The fund focuses on selecting companies with established producing mines. The fund’s benchmark is the FTSE Gold Mines Index. Read more about U.S. Global Investors’ investment process.
The FTSE Gold Mines Index Series encompasses all gold mining companies that have a sustainable and attributable gold production of at least 300,000 ounces a year, and that derive 75% or more of their revenue from mined gold.
The Gold and Precious Metals Fund rose 1.44% in the first quarter of 2024, underperforming its benchmark, the FTSE Gold Mines Index, which fell 1.40% on a total return basis. While focusing on established, gold-producing companies, the Gold and Precious Metals Fund holds roughly 50% of its holdings in precious metal miners that are greater than $1 billion in market capitalization; meanwhile, the FTSE Gold Mines Index’s average market capitalization is closer to $5.8 billion.
The performance data quoted represents past performance. Past performance does not guarantee 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.
Strengths
- Not owning Newmont, the largest member of the FTSE Gold Mines Index, was our best call on relative performance as it significantly underperformed the peer group average of -0.63% with its loss of 12.76%. Newmont is currently integrating its acquisition of Newcrest Mining, creating the largest gold mining company in the world.
- Not owning Barrick Gold, the second largest member of the FTSE Gold Mines Index, was our second best call on relative performance as it significantly underperformed the peer group average of -0.63% with its loss of 7.66%. Barrick, like many of the senior gold mining companies, has suffered margin compression from inflation, particularly from fuel and labor, as the gold price has approached record highs.
- Owning Aya Gold& Silver, our second largest position in the fund, recorded a gain of 17.01% for the 1st quarter, largely on this company being one of just a couple companies where their revenue stream is almost entirely derived from the sales of silver. On the last day of the quarter, the company gave production guidance for 2024, which was slightly below Wall Street expectations and the stock price fell 6.50%, muffling our gains on the last day of the quarter.
Weaknesses
- Being underweight Agnico Eagle Mines Ltd., the third largest member of the FTSE Gold Mines Index, was our biggest detractor to our relative performance as it outperformed the peer group average of -0.63% with a gain of 9.23%. Agnico’s share price likely benefited from investors rotating out of Newmont and Barrick Gold into the first quarter into Agnico, which has a less volatile outlook.
- Being underweight Gold Fields, the fourth largest member of the FTSE Gold Mines Index, was our second biggest detractor to our relative performance as it outperformed the peer group average of -0.63% with a gain of 7.21%. In February, Gold Fields’ new CEO Mike Fraser commented that the departure of the prior CEO in 2022 with the failed bid for Yamana Gold was a “derisking event” event, which has helped drive up their share price. Gold Fields’ share price also likely benefited from investors rotating out of Newmont and Barrick Gold in the first quarter.
- Being underweight AngloGold Ashanti, the sixth largest member of the FTSE Gold Mines Index, was our third biggest detractor to our relative performance as it outperformed the peer group average of -0.63% with a gain of 16.47%. In the 4th quarter of 2023, AngloGold Ashanti completed its redomicile to Britan from South Africa making it more attractive from a political risk viewpoint. AngloGold Ashanti’s share price also likely benefited from investors rotating out of Newmont and Barrick Gold in the first quarter.
Outlook
Morgan Stanley argues gold is fairly valued around $2,025/ounce, as non-commercial net longs are the highest since May 2022, gold’s sensitivity to real yields is fading and geopolitical risk remains elevated, but seems largely priced in. However, as the year progresses, if gold’s haven premium holds, the risk-reward is probably more skewed to the upside. Looking back to 1990, gold has been on average 6% higher 30 days after the first rate cut. On top of this, even with a shallower regression line, a 100 basis point (bp) drop in real yields would imply another 5% upside for gold, while they would expect central bank buying to remain strong, supporting physical demand too. China’s central bank added gold to its reserves for a sixteenth straight month in February, extending a long buying spree that’s helped to support the precious metal’s surge to a record high. Bullion held by the People’s Bank of China rose by about 390,000 troy ounces last month, according to official data released Thursday.
Platinum costs more than palladium for the first time in over five years, driven by its growing use in auto catalysts for gasoline-powered cars. Both metals have come under pressure this year as consumers drew down stockpiles built following the invasion of Ukraine, but palladium has suffered the most, sliding almost 20%. Its longstanding premium to platinum has caused automakers to increasingly substitute it for the cheaper of the two metals. According to Bank of America, palladium has been under pressure on a confluence of factors, including rising EV penetration rates. With palladium demand driven to 90% by car manufacturers, this is a structural headwind.
The FTSE Gold Mines Index encompasses all gold mining companies that have a sustainable and attributable gold production of at least 300,000 ounces a year, and that derive 75% or more of their revenue from mined gold.
Fund portfolios are actively managed, and holdings may change daily. Holdings are reported as of the most recent quarter-end. Holdings in the Gold and Precious Metals Fund as a percent of net assets as of 03/31/2024: Newmont Corp. 0.00%, Newcrest Mining Ltd. 0.00%, Barrick Gold Corp. 0.00%, Aya Gold & Silver Inc. 6.92%, Agnico Eagle Mines Ltd. 2.48%, Gold Fields Ltd. 0.00%, Yamana Gold Inc. 0.00%, AngloGold Ashanti Plc 1.50%.
Standard Disclosure
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. Foreside Fund Services, LLC, Distributor. U.S. Global Investors is the investment adviser.
All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.
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.
Top 10 Equity Holdings as of 03-31-2024
| Holding | Percentage |
|---|---|
| K92 Mining, Inc. | 8.45% |
| Aya Gold & Silver, Inc. | 6.90% |
| Aris Gold Corp. | 3.84% |
| OceanaGold Corp. 3.52% | 3.52% |
| Harmony Gold Mining Co., Ltd. | 3.39% |
| Vox Royalty Corp. | 3.26% |
| Alamos Gold, Inc. | 3.06% |
| Mineros SA | 2.71% |
| Ivanhoe Mines, Ltd. | 2.48% |
| Agnico Eagle Mines, Ltd. | 2.48% |
Industry Breakdown as of 03-31-2024
| Sector | Percentage |
|---|---|
| Gold, Precious Metals and Minerals | 90.47% |
| Cash Equivalents | 6.03% |
| Other | 3.50% |
Regional Breakdown as of 03-31-2024
| Region | Percentage |
|---|---|
| Canada | 64.93% |
| Australia | 15.48% |
| South Africa | 3.39% |
| United States | 3.80% |
| Other | 6.37% |
| Cash Equivalents | 6.03% |
Growth of $10,000 Over 10 Years as of 03/31/2024
The chart illustrates the performance of a hypothetical $10,000 investment made in the fund during the depicted time frame. Figures include reinvestment of capital gains and dividends, but the performance does not include the effect of any direct fees described in the fund’s prospectus (e.g., short-term trading fees) which, if applicable, would lower your total returns.
Month End Average Annual Total Returns as of 04/30/2024
| YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
| 10.31% | 5.00% | 11.21% | 5.69% | 0.79% | 1.48% |
Quarter End Average Annual Total Returns as of 03/31/2024
| YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
| 3.94% | -1.91% | 8.45% | 5.20% | 0.67% | 1.48% |
Expense ratio as stated in the most recent prospectus.
The Adviser of the Gold & Precious Metals Fund has contractually limited total fund operating expenses (exclusive of acquired fund fees and expenses of, extraordinary expenses, taxes, brokerage commissions and interest, and advisory fee performance adjustments to not exceed 1.75% on an annualized basis through April 30, 2025. Total annual expenses after reimbursement of (0.02%) were 1.46%.
U.S. Global Investors, Inc. can modify or terminate the voluntary limits at any time, which may lower a fund’s yield or return.
Performance data quoted above is historical. Past performance is no guarantee of future results. Results reflect the reinvestment of dividends and other earnings. For a portion of periods, the fund had expense limitations, without which returns would have been lower. 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 direct fees described in the fund’s prospectus which, if applicable, would lower your total returns. Performance quoted for periods of one year or less is cumulative and not annualized. Obtain performance data current to the most recent month-end at www.usfunds.com or 1-800-US-FUNDS. High double-digit returns are attributable, in part, to unusually favorable market conditions and may not be repeated or consistently achieved in the future.
World Precious Minerals Fund (UNWPX)
Fact Sheet
Fund Vitals:
NAV: $1.54
Change as of 06/04/2024
$-0.05
Ticker:
UNWPX
Inception Date:
11/27/1985
AUM
$43058822.15 as of 06/04/2024
How to Invest Request Info Download Prospectus
About the World Precious Minerals Fund
The World Precious Minerals Fund complements our Gold and Precious Metals Fund by giving investors increased exposure to junior and intermediate mining companies for added growth potential. With a high level of expertise in this specialized sector, our portfolio management team includes professionals with experience in geology, mineral resources and mining finance.
Fund Objective
The World Precious Minerals Fund seeks long-term growth of capital while providing protection against inflation and monetary instability.
Fund Strategy
Under normal market conditions, the World Precious Minerals Fund will invest at least 80% of its net assets in common stock, preferred stock, convertible securities, rights and warrants, and depository receipts of companies principally engaged in the exploration for, or mining and processing of, precious minerals such as gold, silver, platinum group, palladium and diamonds. The fund focuses on selecting junior and intermediate exploration companies from around the world.
The fund’s benchmark is the NYSE Arca Gold Miners Index.
Read more about U.S. Global Investors’ investment process
The NYSE Arca Gold Miners Index is a modified market capitalization weighted index comprised of publicly traded companies involved primarily in the mining for gold and silver. The index benchmark value was 500.0 at the close of trading on December 20, 2002.
The World Precious Minerals Fund fell 2.07% in the first quarter of 2024, underperforming its benchmark, the NYSE Arca Gold Miners Index, which rose 1.40% on a total return basis. The S&P/TSX Venture Precious Metals & Minerals Index also recorded a negative return of 2.72% for the quarter, which better reflects the mix of small-cap junior mining companies the fund typically invests in. Relative to this index, the World Precious Mineral index outperformed its peer group of investable stocks. See complete fund performance here.
The performance data quoted represents past performance. Past performance does not guarantee 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.
Strengths
- Awale Resources was the largest contributor to fund performance with a gain of nearly 500% in its share price during the quarter. Awale is currently drilling its Odienné Copper Gold project located in Côte d’Ivoire, one of the more politically safer countries in West Africa. We were one of the first institutional investors to take a position in Awale Resources in March of 2022 because of management’s prior successes in West Africa. Newmont purchased 15% of Awale in the fourth quarter of 2023. In March of 2023, Awale released a drill intercept of 26 grams per ton (g/t) gold over 57 meters, which is one of the highest-grade gold intercepts in Africa in the decade.
- The second most significant contributor was TriStar Gold, which finished the quarter with a gain of 40.75%. TriStar is in the final phase of permitting, which covers the approval from the local community to construct and operate a mine. The project is expected to be approved and this would clear the path for TriStar to move forward with construction or engage with a major mining company on a potential takeover bid. Brazil is a place where gold miners can do business and there are few permitted shovel ready projects that are or will be permitted in the near term.
- Not owning Newmont, the largest member of the NYSE Arca Gold Miners Index, was our best call on relative performance as it significantly underperformed the peer group average of -0.63% with its loss of 12.76%. Newmont is currently integrating its acquisition of Newcrest Mining, creating the largest gold mining company in the world.
Weaknesses
- Nano One Materials Corp. was the fund’s biggest detractor for the quarter as it was down 30.05%, on no specific negative headlines regarding the company. Certainly the headlines were negative on lithium carbonate prices declining more that 80% in China in 2023. Nano One does not have any direct commodity price risks as its portfolio of patents and its One-Pot Process to lithium iron phosphate at the only plant in North America that can provide this product outside of China. Nano One is uniquely positioned to benefit from the long-term trend of cheaper batteries for electric vehicles.
- Barksdale Resources was the second biggest drag on performance, after reporting disappointing drill results in March from their Sunnyside copper-lead-zinc-silver exploration project in Arizona. Apparently, enough size traded in the stock relative to normal volumes which indicated a larger investor may have exited the stock as its price was down by 68.30% by quarter end. The stock is up 88.46% since the start of the second quarter of 2024.
- Arizona Metals was the third biggest drag on performance with its relatively larger position in the fund, the stock’s share price was off 19.33% for the quarter. There was only one set of drill results released during the quarter which were below average grades released in the past.
Outlook
Investors flocked to gold in record numbers in 2023 as global economic turbulence triggered a flight to safety, according to the Royal Mint. The number of people buying gold and precious metal bars and coins jumped by 7% year-on-year, surpassing the highs of the 2020 lockdown investing boom. The British coin maker said this was due to a jump in small-scale retail investors buying “safe haven” assets. At the same time, The Royal Mint’s total payouts to customers selling back their bullion surged by nearly half after gold prices hit an all-time high last year. The Silver Institute notes that the physical silver market has been in a deficit position for the last two years with another deficit forecast for 2024.
BMO continues to be excited about the increased pace of new technology adoption among mining companies. As companies prepare for the next phases of growth, technology leaders are increasingly likely to adopt new productivity improvements such as electric vehicles, autonomous haulage, advanced process control, etc. These technologies will be available to “fast followers” as well as the first movers. Mines built to large-cap companies with financial and technical resources should have cost and efficiency advantages in the future.
Mergers and acquisition (M&A) activity remained strong, and we expect this trend to accelerate in the second quarter. Alamos announced an agreement to acquire Argonaut Gold for a total consideration of C$0.40/share, a 34% premium to yesterday’s closing prices. The consideration consists of C$0.34/share of Alamos shares and a SpinCo holding Argonaut’s assets in Mexico valued at C$0.06/share.
Streamers are facing various headwinds. According to Scotia, they await an update from the Government of Canada on the time frame for implementation of the global minimum tax (GMT). The Canadian federal budget is scheduled to be presented on April 16, which makes it unlikely that GMT will be enacted before the end of Q1/24.
The NYSE Arca Gold Miners Index is a modified market capitalization weighted index comprised of publicly traded companies involved primarily in the mining for gold and silver. The S&P/TSX Venture Precious Metals & Minerals (Sub Industry) Index consists of all members of the S&P/TSX Venture Composite that are classified within the GICS precious metals & minerals sub-industry.
Fund portfolios are actively managed, and holdings may change daily. Holdings are reported as of the most recent quarter-end. Holdings in the World Precious Minerals Fund as a percentage of net assets as of 03/31/2024: Awale Resources Ltd. 1.45%, Newmont Corp. 0.00%, TriStar Gold Inc. 7.08%, Newcrest Mining Ltd. 0.00%, Nano One Materials Corp. 8.83%, Barksdale Resources Corp. 0.91%, Arizona Metals Corp. 3.82%, Alamos Gold Inc. 0.00%, Argonaut Gold Inc. 0.00%.
Standard Disclosure
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. Foreside Fund Services, LLC, Distributor. U.S. Global Investors is the investment adviser.
All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.
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.
Top 10 Equity and Debt Holdings as of 03-31-2024
| Holding | Percentage |
|---|---|
| Nano One Materials Corp. | 8.83% |
| K92 Mining, Inc. | 7.15% |
| TriStar Gold, Inc. | 7.08% |
| Ivanhoe Mines, Ltd. | 3.82% |
| Arizona Metals Corp. | 3.82% |
| Dolly Varden Silver Corp. | 3.29% |
| Radisson Mining Resources, Inc. | 3.23% |
| Asante Gold Corp. | 3.07% |
| Vizsla Silver Corp. | 3.01% |
| First Nordic Metals Corp. | 2.50% |
Industry Breakdown as of 03-31-2024
| Sector | Percentage |
|---|---|
| Gold, Precious Metals and Minerals | 94.97% |
| Other | 5.03% |
Regional Breakdown as of 03-31-2024
| Region | Percentage |
|---|---|
| Canada | 80.97% |
| United States | 7.97% |
| Australia | 6.19% |
| Other | 4.87% |
Growth of $10,000 Over 10 Years as of 03/31/2024
The chart illustrates the performance of a hypothetical $10,000 investment made in the fund during the depicted time frame. Figures include reinvestment of capital gains and dividends, but the performance does not include the effect of any direct fees described in the fund’s prospectus (e.g., short-term trading fees) which, if applicable, would lower your total returns.
Month End Average Annual Total Returns as of 04/30/2024
| YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
| 3.45% | -16.67% | 1.85% | -3.07% | 1.71% | 1.74% |
Quarter End Average Annual Total Returns as of 03/31/2024
| YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
| -2.07% | -21.55% | -0.32% | -3.54% | 1.57% | 1.74% |
Expense ratios as stated in the most recent prospectus.
The Adviser of the World Precious Minerals Fund has contractually limited total fund operating expenses (exclusive of acquired fund fees and expenses of extraordinary expenses, taxes, brokerage commissions and interest, and advisory fee performance adjustments) to not exceed 1.75% on an annualized basis through April 30, 2025. Total annual expenses after waiver or reimbursement of (0.27%) were 1.47%.
U.S. Global Investors, Inc. can modify or terminate the voluntary limits at any time, which may lower a fund’s yield or return.
Performance data quoted above is historical. Past performance is no guarantee of future results. Results reflect the reinvestment of dividends and other earnings. For a portion of periods, the fund had expense limitations, without which returns would have been lower. 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 direct fees described in the fund’s prospectus which, if applicable, would lower your total returns. Performance quoted for periods of one year or less is cumulative and not annualized. Obtain performance data current to the most recent month-end at www.usfunds.com or 1-800-US-FUNDS. High double-digit returns are attributable, in part, to unusually favorable market conditions and may not be repeated or consistently achieved in the future.
Global Resources Fund (PSPFX)
Fact Sheet
Fund Vitals:
NAV: $3.95
Change as of 06/04/2024
$-0.10
Ticker:
PSPFX
Inception Date:
08/03/1983
AUM
$41987905.23 as of 06/04/2024
How to Invest Request Info Download Prospectus
About the Global Resources Fund
The Global Resources Fund takes a multi-faceted approach to the natural resources sector by investing in energy and basic materials. The fund invests in companies involved in the exploration, production and processing of petroleum, natural gas, coal, alternative energies, chemicals, mining, iron and steel, and paper and forest products, and can invest in any part of the world.
Fund Objective
The Global Resources Fund seeks long-term growth of capital while providing protection against inflation and monetary instability.
Fund Strategy
Under normal market conditions, the Global Resources Fund normally invests at least 80 percent of its net assets in the common stock, preferred stock, convertible securities, rights and warrants, and depository receipts of companies involved in the natural resources industries. The fund may invest without limitation in any of the various natural resources industries.
Read more about U.S. Global Investors’ investment process.
The Global Resources Fund’s net asset value (NAV) finished the first quarter of 2024 unchanged, underperforming the fund’s benchmark, the S&P Global Natural Resources Index, which gained 2.00%. The Global Resources Fund invests in exploration and development companies and the junior mining and energy sector, unlike our benchmark, which is principally invested in large-capitalization natural resources companies with established revenue streams; as a result, there can be timing swings where money flows first to the most liquid names before investors rotate to smaller capitalization companies. See complete fund performance here.
The performance data quoted represents past performance. Past performance does not guarantee 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.
Strengths
- The three strongest commodities for the quarter were crude oil, crude palm oil and cotton, up 14.28%, 12.58% and 11.03%, respectively. Crude oil rose largely due to an increase over an escalation of a bigger conflict in the Middle East resulting from Israel’s mission to eliminate all members of Hamas. Palm oil inventories in Indonesia and Malaysia, the two biggest producers, are low due to poor weather conditions, plus Indonesia now has a higher mandated blending of biodiesel. Speculators may have played a roll in the surge in cotton prices as prices have now erased all gains for the year.
- The three best sector calls for the fund were an overweight position in precious metals, underweight position in steel and underweight pulp & paper. The gains in precious metals were driven by record gold prices, which delivered 192 basis points of outperformance relative to the benchmark. We were underweight steel and pulp & paper, and this yielded the fund 121 bp and 50 bp of outperformance, respectively.
- The three best dollar-performing stock decisions were Ivanhoe Mines, BHP Group and Montage Gold, which contributed 117 bp, 79 bp and 61 bp, respectively. Ivanhoe Mines expanded its copper production in a rising copper price environment. We were underweight BHP Group as iron ore dominates its revenue mix. Montage Gold was able to hire a new highly experienced CEO from the troubled management team at Endeavour Mining that has experience with building new mines in West Africa. The company also received a strategic investment from the Lundin Family Trust, increasing its stake to 19.9% of the company.
Weaknesses
- The three weakest commodities for the quarter were natural gas, lithium hydroxide and iron ore, down 20.72%, 19.96% and 16.51%, respectively. For U.S. natural gas, there has been a large storage surplus in the first quarter of 2024. Drillers are not detoured by the low price and are continuing to drill, thus having a waiting inventory of wells to frack, once prices recover. Lithium hydroxide futures in the U.S. declined, probably due to declining electric vehicle (EV) sales.
- The fund’s worst-performing sectors were its overweight position in metals and minerals, off 189 bp; underweight integrated oils, down 109 bp; and underweight containers/packaging, which lost 65 bp. Uranium stocks and senior copper producers in the metals and minerals outperformed, but non-revenue exploration or development stocks did not catch a bid. Although we were underweight integrated oils, our exposure to Permian Resources, Viper Energy and Chesapeake Energy offset what could have been a wider loss.
- The three biggest dollar-detractor performing stock decisions were Barksdale Resources, New Stratus Energy and Nano One Materials, which penalized the returns by 105 bp, 57 bp and 47 bp, respectively. Barksdale Resources released drill results in March that disappointed the market; apparently a larger investor exited and the share price has nearly recovered all the unrealized loss. New Stratus Energy is growing its oil production base in Venezuela; however, political sentiment towards the country was positive but are back to negative now with President Maduro reneging on his promise for open and fair elections.
Current Outlook
Key oil market gauges are signaling that crude’s rebound is reflecting a stronger underlying physical market, bolstering futures’ attempt to break out of their recent trading range. The U.S. benchmark’s prompt spread, a critical barometer for supply and demand, briefly flipped to a bullish structure known as backwardation for the first time since November. According to UBS, refining margins are expected to remain above mid-cycle in 2024. On paper, the market looks more balanced, but industry has not been able to operate at 95% utilization on a consistent basis. Global capacity additions will take a lot longer to supply product to international markets.
According to Bank of America, tin prices have been on an upward trend for a while now, since the early 2000s, when the metal was trading at around $4,000/ton. Given the persistent tightness in the tin market, a new floor seems to have been set around $25,000/ton. Low inventories in London Metals Exchange (LME) warehouses also made the metal prone to violent squeezes. Given the small size of the tin market, investors, which account for only about 5% of trading volumes, can have an outsized impact on prices and spreads.
According to Bank of America, aluminum prices have found support at around $2,200/ton, notwithstanding persistent macro headwinds. That support has been driven by a confluence of factors. Most importantly, perhaps, global aluminum supply is expanding by an average of only 2.4% out to 2025, compared to 4.7% between 2011 and 2017. Tying in demand, they expect consumption growth of 4% per annum until 2030 in their base case, compared to an average of 5% per year in the past decade, implying sustained deficits.
According to RBC, copper continued to strengthen on positive China trade data, further indications of supply tightening and a pullback in the U.S. dollar. Some Chinese smelters have curbed output, while others conducting planned maintenance over March-April will reportedly be challenged to resume production after.
The S&P Global Natural Resources Index includes 90 of the largest publicly traded companies in natural resources and commodities businesses that meet specific investability requirements, offering investors diversified, liquid and investable equity exposure across 3 primary commodity-related sectors: Agribusiness, Energy, and Metals & Mining.
Fund portfolios are actively managed, and holdings may change daily. Holdings are reported as of the most recent quarter-end. Holdings in the Global Resources Fund as a percentage of net assets as of 03/31/2024: Ivanhoe Mines Ltd. 6.19%, BHP Group Ltd. 0.47%, Montage Gold Corp. 1.38%, Endeavor Mining PLC 0.00%, Permian Resources Corp. 0.61%, Viper Energy Inc. 1.77%, Chesapeake Energy Corp. 1.02%, Barksdale Resources Corp. 0.45%, New Stratus Energy Inc. 1.61%, Nano One Materials Corp. 0.96%.
Standard Disclosure
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. Foreside Fund Services, LLC, Distributor. U.S. Global Investors is the investment adviser.
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 specific industries, the fund may be subject to greater risks and fluctuations than a portfolio representing a broader range of industries.
Top 10 Equity and Debt Holdings as of 03-31-2024
| Holding | Percentage |
|---|---|
| Abaxx Technologies, Inc. | 6.89% |
| Ivanhoe Mines, Ltd. | 6.19% |
| Filo Corp. | 4.83% |
| Cheniere Energy, Inc. | 2.79% |
| Aris Gold Corp. | 2.17% |
| Linde PLC | 2.14% |
| Kimbell Royalty Partners LP | 1.97% |
| OceanaGold Corp. | 1.82% |
| Viper Energy, Inc. | 1.77% |
| New Stratus Energy, Inc. | 1.61% |
Industry Breakdown as of 03-31-2024
| Sector | Percentage |
|---|---|
| Basic Materials | 49.28% |
| Energy | 24.63% |
| Technology | 8.06% |
| Funds | 7.99% |
| Cash Equivalents | 6.35% |
| Utilities | 1.69% |
| Financial | 1.37% |
| Industrial | 0.41% |
| Consumer Staples | 0.22% |
Regional Breakdown as of 03-31-2024
| Region | Percentage |
|---|---|
| Canada | 49.95% |
| United States | 32.70% |
| Cash Equivalents | 6.35% |
| Australia | 4.67% |
| United Kingdom | 3.29% |
| Jersey | 1.04% |
| Netherlands | 0.91% |
| Other | 1.09% |
Growth of $10,000 Over 10 Years as of 03/31/2024
The chart illustrates the performance of a hypothetical $10,000 investment made in the fund during the depicted time frame. Figures include reinvestment of capital gains and dividends, but the performance does not include the effect of any direct fees described in the fund’s prospectus (e.g., short-term trading fees) which, if applicable, would lower your total returns.
Month End Average Annual Total Returns as of 04/30/2024
| YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
| 0.25% | -7.01% | 5.84% | -3.58% | 3.18% | 1.69% |
Quarter End Average Annual Total Returns as of 03/31/2024
| YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
| 0% | -8.53% | 5.69% | -3.37% | 3.18% | 1.69% |
Expense ratios as stated in the most recent prospectus.
The Adviser of the Global Resources Fund has contractually limited total fund operating expenses (exclusive of acquired fund fees and expenses of extraordinary expenses, taxes, brokerage commissions and interest, and advisory fee performance adjustments) to not exceed 1.75%. Total annual expenses after reimbursement of (0.22%) were 1.47%.
Performance data quoted above is historical. Past performance is no guarantee of future results. Results reflect the reinvestment of dividends and other earnings. For a portion of periods, the fund had expense limitations, without which returns would have been lower. 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 direct fees described in the fund’s prospectus which, if applicable, would lower your total returns. Performance quoted for periods of one year or less is cumulative and not annualized. Obtain performance data current to the most recent month-end at www.usfunds.com or 1-800-US-FUNDS. High double-digit returns are attributable, in part, to unusually favorable market conditions and may not be repeated or consistently achieved in the future.
Near-Term Tax Free Fund (NEARX)
Fact Sheet
Fund Vitals:
NAV: $2.09
Change as of 06/04/2024
$0.01
Ticker:
NEARX
Inception Date:
12/04/1990
AUM
$25313351.1 as of 06/04/2024
How to Invest Request Info Download Prospectus
About the Near-Term Tax Free Fund
The Near-Term Tax Free Fund invests in municipal bonds with relatively short maturity. The fund seeks to provide tax-free monthly income by investing in debt securities issued by state and local governments from across the country.
Fund Objective
The Near-Term Tax Free fund seeks current income that is exempt from federal income tax and also seeks preservation of capital.
Fund Strategy
Under normal market conditions, the Near-Term Tax Free Fund invests at least 80 percent of its net assets in investment grade municipal securities whose interest is free from federal income tax, including the federal alternative minimum tax. The Near-Term Tax Free Fund will maintain a weighted-average portfolio maturity of five years or less.
The fund’s portfolio team applies a two-step approach in choosing investment, beginning by analyzing various macroeconomic factors in an attempt to forecast interest rate movements, and then positioning the fund’s portfolio by selecting investments that it believes fit that forecast.
The fund’s benchmark is the Barclay’s Capital 3-Year Municipal Bond Index.
Read more about U.S. Global Investors’ investment process
The Barclay 3-Year Municipal Bond Index is a total return benchmark designed for long-term municipal assets. The index includes bonds with a minimum credit rating BAA3, are issued as part of a deal of at least $50 million, have an amount outstanding of at least $5 million and have a maturity of 8 to 12 years.
The Near-Term Tax Free Fund had a positive return of 0.12% in the first quarter of 2024, outperforming its benchmark, the Bloomberg Barclays 3-Year Municipal Bond Index, which declined 0.28%. See complete fund performance here.
The performance data quoted represents past performance. Past performance does not guarantee 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.
The duration of the fund at the start of the quarter was 1.4 years, and by quarter end it had declined to 1.3 years. The fund is overweight Pennsylvania, Oklahoma and New Mexico, and significantly underweight California, New York and Illinois. Maturing municipal notes were reinvested in municipal notes bills of less than one year and a half in maturity. The average maturity of the benchmark is closer to 2.9 years; thus, it has had positive results to have a shorter average maturity than the benchmark.
Strengths
- The fund’s allocation to bonds from Oklahoma, Massachusetts and Washington made the biggest contribution to the fund’s return as we overweighted Oklahoma and Massachusetts credits and underweighted Washington.
- The fund benefited from its allocation to overweight school districts, general obligation and underweight general issues were the strongest subindustry returns.
- Our shorter duration of about 1.3 years has offered higher current income for the first three quarters of 2023.
Weaknesses
- The fund’s allocation to bonds from New Mexico, Hawaii and Arizona underperformed. Our overweight position in New Mexico was largely impacted by one note issued by the City of Rio Rancho, NM, which is part of the expansive Albuquerque metropolitan area and is the fastest growing city in the state.
- The fund’s exposure to single-family housing, airports and utility bonds contributed the least to our returns as these subindustries accounted for only about 4% of the benchmark.
- Our shorter duration of about 1.3 years did not offer as much price appreciation from expectations of falling yields in 2024.
Current Outlook
Investors were overly optimistic at the start of the quarter that the Federal Reserve might start cutting interest rates as soon as March, but they were certain this would be a first half of the year event. The outlook among bond investors for Fed policy in the second quarter of 2024 seems cautiously optimistic now with some underlying uncertainties. Expectations are tilting towards potential interest rate cuts as inflationary pressures show signs of moderating. Mixed economic date particularly in the job market and consumer spending have signaled the economy is strong but inflation remains sticky, forcing the Fed’s hand to remain data dependent. World supply chains are still constrained by shipping limitations and rising energy prices in March puts additional pressure on inflation to stick around longer than welcome.
Potential challenges such as a slowing economy that could reduce tax revenues but sectors like state and local governments and school districts are expected to show strong resilience thanks to substantial cash reserves. For fixed income investors, it has been a rocky start to the year with most bond portfolios with a duration approaching three years or more.
The Barclays 3-Year Municipal Bond Index is a total return benchmark designed for short-term municipal assets. The index includes bonds with a minimum credit rating BAA3, are issued as part of a deal of at least $50 million, have an amount outstanding of at least $5 million and have a maturity of 2 to 4 years.
Standard Disclosure
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. Foreside Fund Services, LLC, Distributor. U.S. Global Investors is the investment adviser.
All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.
Bond funds are subject to interest-rate risk; their value declines as interest rates rise. Though the Near-Term Tax Free Fund seeks minimal fluctuations in share price, it is subject to the risk that the credit quality of a portfolio holding could decline, as well as risk related to changes in the economic conditions of a state, region or issuer. These risks could cause the fund’s share price to decline. Tax-exempt income is federal income tax free. A portion of this income may be subject to state and local taxes and at times the alternative minimum tax. The Near-Term Tax Free Fund may invest up to 20% of its assets in securities that pay taxable interest. Income or fund distributions attributable to capital gains are usually subject to both state and federal income taxes.
Top 10 Holdings as of 03-31-2024
| Holding | Percentage |
|---|---|
| County of Chisago MN | 4.39% |
| Harris County Water Control & Improvement District No. 21 | 3.92% |
| Williamsport Sanitary Authority | 3.06% |
| Tulsa Public Facilities Authority | 2.95% |
| Port St. Lucie Community Redevelopment Agency | 2.80% |
| City of Rio Rancho NM | 2.51% |
| Massachusets Port Authority | 2.20% |
| Los Alamos Public School District | 2.08% |
| Delaware River Port Authority | 2.06% |
| Nixa Public Schools | 2.04% |
Industry Breakdown as of 03-31-2024
| Sector | Percentage |
|---|---|
| General Obligation | 51.00% |
| School District | 10.75% |
| Water | 9.49% |
| Medical Facilities | 6.47% |
| Transportation | 5.30% |
| Cash Equivalents | 4.32% |
| Higher Education | 4.01% |
| Education | 2.09% |
| Power | 1.99% |
| Single Family Homes | 1.15% |
| Development | 1.00% |
| Utilities | 0.96% |
| Airport | 0.87% |
| Multi Family Homes | 0.60% |
Top 5 States as of 03-31-2024
| Sector | Percentage |
|---|---|
| Pennsylvania | 9.22% |
| Texas | 8.71% |
| Oklahoma | 5.76% |
| Minnesota | 5.40% |
| New Mexico | 4.85% |
Growth of $10,000 Over 10 Years as of 03/31/2024
The chart illustrates the performance of a hypothetical $10,000 investment made in the fund during the depicted time frame. Figures include reinvestment of capital gains and dividends, but the performance does not include the effect of any direct fees described in the fund’s prospectus (e.g., short-term trading fees) which, if applicable, would lower your total returns.
Month End Average Annual Total Returns as of 04/30/2024
| YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
| -0.15% | 2.25% | 0.33% | 0.63% | 3.16% | 1.29% |
Quarter End Average Annual Total Returns as of 03/31/2024
| YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
| 0.12% | 2.19% | 0.32% | 0.72% | 3.18% | 1.29% |
Expense ratios as stated in the most recent prospectus.
The Adviser of the Near-Term Tax Free Fund has contractually limited the total fund operating expenses (exclusive of acquired fund fees and expenses extraordinary expenses, taxes, brokerage commissions and interest) to not exceed 0.45% on an annualized basis through April 30, 2025. Total annual expenses after the waiver of (0.84%) were 0.45%. The fund’s yield calculation is based on the holdings’ yield to maturity for prior 30 days; distribution may differ.
U.S. Global Investors, Inc. can modify or terminate the voluntary limits at any time, which may lower a fund’s yield or return.
Performance data quoted above is historical. Past performance is no guarantee of future results. Results reflect the reinvestment of dividends and other earnings. For a portion of periods, the fund had expense limitations, without which returns would have been lower. 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 direct fees described in the fund’s prospectus which, if applicable, would lower your total returns. Performance quoted for periods of one year or less is cumulative and not annualized. Obtain performance data current to the most recent month-end at www.usfunds.com or 1-800-US-FUNDS. High double-digit returns are attributable, in part, to unusually favorable market conditions and may not be repeated or consistently achieved in the future.
U.S. Government Securities Ultra-Short Bond Fund (UGSDX)
Fact Sheet
Fund Vitals:
NAV: $1.94
Change as of 06/04/2024
$0.00
Ticker:
UGSDX
Inception Date:
11/01/1990
AUM
$28978270.3 as of 06/04/2024
How to Invest Request Info Download Prospectus
About the U.S. Government Securities Ultra-Short Bond Fund
The U.S. Government Securities Ultra-Short Bond Fund is designed to be used as an investment that takes advantage of the security of U.S. Government bonds and obligations, while simultaneously pursuing a higher level of current income than money market funds offer.
Fund Objective
The U.S. Government Securities Ultra-Short Bond Fund seeks to provide current income and preserve capital.
Fund Strategy
Under normal market conditions, the fund invests at least 80% of its net assets in United States Treasury debt securities and obligations of agencies and instrumentalities of the United States, including repurchase agreements collateralized with such securities. The fund’s dollar-weighted average effective maturity will be two years or less.
The fund’s benchmark is the Barclays U.S. Treasury Bills 6-9 Months Total Return Index
Read more about U.S. Global Investors’ investment process
The Barclays U.S. Treasury Bills 6-9 Months Total Return Index tracks the performance of U.S. Treasury Bills with a maturity of six to nine months.
The U.S. Government Securities Ultra-Short Bond Fund returned 1.04% in the first quarter of 2024, outperforming its benchmark, the Barclays U.S. Treasury Bills 6-9 Months Total Return Index, which returned 0.99%. See complete fund performance here.
The performance data quoted represents past performance. Past performance does not guarantee 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.
Current Outlook
Investors were overly optimistic at the start of the quarter that the Federal Reserve might start cutting interest rates as soon as March, but they were certain this would be a first half of the year event. The outlook among bond investors for Fed policy in the second quarter of 2024 seems cautiously optimistic now with some underlying uncertainties. Expectations are tilting towards potential interest rate cuts as inflationary pressures show signs of moderating. Mixed economic date particularly in the job market and consumer spending have signaled the economy is strong but inflation remains sticky, forcing the Fed’s hand to remain data dependent. World supply chains are still constrained by shipping limitations and rising energy prices in March puts additional pressure on inflation to stick around longer than welcome.
The Barclays U.S. Treasury Bills 6-9 Months Total Return Index tracks the performance of U.S. Treasury Bills with a maturity of six to nine months. Gross domestic product is the total value of goods produced and services provided in a country for one year. The personal consumption expenditures index reflects changes in the prices of goods and services purchased by consumers in the U.S.
Standard Disclosure
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. Foreside Fund Services, LLC, Distributor. U.S. Global Investors is the investment adviser.
Bond funds are subject to interest-rate risk; their value declines as interest rates rise.
All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.
Issuer Breakdown as of 03-31-2024
| Federal Home Loan Mortage Company | 38.13% |
| U.S. Treasury Bill | 22.44% |
| Federal Farm Credit Bank | 22.02% |
| Federal Home Loan Bank | 17.41% |
U.S. Government Securities Ultra-Short Bond Fund
Growth of $10,000 Over 10 Years as of 03/31/2024
The chart illustrates the performance of a hypothetical $10,000 investment made in the fund during the depicted time frame. Figures include reinvestment of capital gains and dividends, but the performance does not include the effect of any direct fees described in the fund’s prospectus (e.g., short-term trading fees) which, if applicable, would lower your total returns.
Month End Average Annual Total Returns as of 04/30/2024
| YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
| 0.89% | 3.98% | 0.83% | 0.76% | 2.37% | 1.17% |
Quarter End Average Annual Total Returns as of 03/31/2024
| YTD | 1 Year | 5 Year | 10 Year | Since Inception | Gross Expense Ratio |
| 1.04% | 3.90% | 0.88% | 0.77% | 2.38% | 1.17% |
Expense ratios as stated in the most recent prospectus.
The Adviser of the U.S. Government Securities Ultra-Short Bond Fund has voluntarily limited total fund operating expenses (exclusive of acquired fund fees and expenses, extraordinary expenses, taxes, brokerage commissions and interest) to not exceed 0.45%. With the voluntary expense waiver amount of (0.72%), total annual expenses after reimbursement were 0.45%. U.S. Global Investors, Inc. can modify or terminate the voluntary limit at any time, which may lower a fund’s yield or return. The fund’s yield calculation is based on the holdings’ yield to maturity for prior 30 days; distribution may differ.
U.S. Global Investors, Inc. can modify or terminate the voluntary limits at any time, which may lower a fund’s yield or return.
Performance data quoted above is historical. Past performance is no guarantee of future results. Results reflect the reinvestment of dividends and other earnings. For a portion of periods, the fund had expense limitations, without which returns would have been lower. 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 direct fees described in the fund’s prospectus which, if applicable, would lower your total returns. Performance quoted for periods of one year or less is cumulative and not annualized. Obtain performance data current to the most recent month-end at www.usfunds.com or 1-800-US-FUNDS. High double-digit returns are attributable, in part, to unusually favorable market conditions and may not be repeated or consistently achieved in the future.