Company Website:
http://www.usfunds.com
SAN ANTONIO -- (Business Wire)
U.S. Global Investors, Inc. (Nasdaq: GROW),
a boutique registered investment advisory firm specializing in natural
resources and emerging markets, announces the Global
Resources Fund (PSPFX) finished 2010 as the top-performing fund for
the 1- and 10-year period in the global natural resources category,
according to data from Lipper. In addition, the Global
Resources Fund, the company’s largest fund, ranks in the top 5
percent for the 1-, 5- and 10-year periods among the entire mutual fund
universe.
The Global
Resources Fund (PSPFX) ranked 1 out of 131, 17 out of 54, and 1 out
of 32 global natural resources funds for total return for the 1-, 5- and
10-year periods as of December 31, 2010. Of course, our past performance
does not guarantee future results.
“We are very pleased to have achieved such outstanding relative short-
and long-term performance in a volatile, evolving and competitive
marketplace,” says Frank Holmes, U.S. Global’s CEO and chief investment
officer.
As of December 31, 2010, the fund achieved a 38 percent 1-year return,
nearly tripling the category average of 13.61 percent. Over the past 10
years, the fund has delivered a 19.49 percent annual return to
shareholders versus the category average of 13.85 percent annualized
return.
In addition, the fund’s diversified portfolio has outpaced the
performance of the underlying commodities such as oil and gold, which
have returned 13 percent and 17.9 percent annually over the past 10
years, respectively, as of December 31, 2010.
A hypothetical $10,000 invested in the S&P 500 ten years ago would have
been worth $11,507 as of December 31, 2010. The same $10,000 investment
in the Global
Resources Fund would have been worth $59,373 for the same time
period.
These results reflect a reinvestment of capital gains and dividends, but
does not include the effect of any direct fees described in the fund’s
prospectus which, if applicable, would lower your returns.
“We believe that active management is the key to success in commodity
and natural resource investing,” says Holmes. “This is how we’ve been
able to generate such tremendous alpha for our shareholders.” Alpha
measures the excess return of a fund relative to its benchmark.
The managers of the Global
Resources Fund recently shared their outlook for 2011. Click
here to see how they are positioning the portfolio for the future.
In addition to the Global
Resources Fund outperforming the S&P 500 for the past decade, three
other U.S. Global funds generated attractive returns relative to the
general market. Four of U.S. Global’s emerging market and
resource-oriented funds ranked among the top 45 funds (top 1 percent) in
the entire mutual fund universe over the past decade.
Though the past decade has been a boon for both natural resources and
emerging markets investors, U.S. Global believes that these asset
classes still have room to run.
“The long-term performance of these funds is a testament to the epic
transformation taking place in the emerging world. The world is
significantly different from the 1970s when China and India were
isolationists,” Holmes says. “Today countries like China, India, Brazil
and Russia have embraced the concept of free markets and still have a
long way to go before they catch up with the developed world.”
“The long-term supply restrictions, the impact of a global population
poised to push above the 7 billion mark, and the infrastructure needed
to support those people should continue to be a catalyst for strong
commodity prices,” says Holmes.
“We believe global resources are a key component of a diversified
portfolio and it’s important for investors to recognize the power of
diversification using natural resources and emerging markets,” says
Holmes.
“Research from Roger Gibson, the best-selling author of Asset
Allocation: Balancing Financial Risk, shows that $1 invested in 1971
through December 2009 would have been worth $51.79 if it were split
50-50 among U.S. stocks and commodity-linked securities and rebalanced
each year. If invested solely in one or the other, that dollar would
have been worth only $36.26 or $32.07, respectively,” says Holmes.
Total Annualized Returns as of December 31, 2010
Performance data quoted above is historical. Past performance is no
guarantee of future results. Results reflect the reinvestment of
dividends and other earnings.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 (e.g., short-term trading fees of up to 2.00%)
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. High double-digit returns are attributable, in part,
to unusually favorable market conditions and may not be repeated or
consistently achieved in the future.
About U.S. Global Investors, Inc.
U.S. Global Investors, Inc. (www.usfunds.com)
is an SEC-registered investment adviser 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 and other clients.
With an average of $2.45 billion in assets under management in the
quarter ended September 30, 2010, U.S. Global Investors manages domestic
and offshore funds offering a variety of 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 a fund’s investment objectives, risks,
charges and expenses. For this and other important information, obtain a
fund prospectus by visiting www.usfunds.com
or by calling 1-800-US-FUNDS (1-800-873-8637). Read it carefully before
investing. Distributed by U.S. Global Brokerage, Inc.
Foreign and emerging market investing involves special risks such as
currency fluctuation and less public disclosure, as well as economic and
political risk. 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. 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.
All opinions expressed and data provided are subject to change without
notice. Some of these opinions may not be appropriate to every investor.
The S&P 500 Stock Index is a widely recognized capitalization-weighted
index of 500 common stock prices in U.S. companies. Diversification does
not protect an investor from market risks and does not assure a profit.
Contacts:
U.S. Global Investors, Inc.
Ryan George, 210-308-1268
Public
Relations
rgeorge@usfunds.com
Source: U.S. Global Investors, Inc.
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