Business
U.S. Global Investors Pleased to Report Assets Under Management Up More Than Three Times, Financial Results for the 2020 Fiscal Year
San Antonio, TX, Sept. 10, 2020 (GLOBE NEWSWIRE) -- U.S. Global Investors, Inc. (NASDAQ: GROW) (the “Company”), a boutique registered investment advisory firm
About this update from U.s. Global Investors, Inc.
[{"type":"text","content":"San Antonio, TX, Sept. 10, 2020 (GLOBE NEWSWIRE) -- U.S. Global Investors, Inc. (NASDAQ: GROW) (the “Company”), a boutique registered investment advisory firm with longstanding experience in global markets and specialized sectors, today reported a net loss of $4.7 million, or $0.31 per share, for the fiscal year ended June 30, 2020. This compares to a net loss of $3.4 million, or $0.22 per share, for the prior fiscal year. Operating loss improved in fiscal 2020, from a $2.8 million loss in fiscal 2019 to a $2.4 million loss in fiscal 2020. This was due to an increase in operating revenues, somewhat offset by an increase in operating expenses. The increase in revenues was primarily driven by the Company’s two ETFs, which, as discussed further below, have seen increased inflows since the start of the COVID-19 pandemic. \n Although the Company recorded a net operating loss for fiscal 2020, it is pleased to have seen a significant improvement in the quarter ended June 30, which saw an operating loss of $245,000, a 75 percent improvement over the operating loss of $979,000 for the quarter ended March 31, 2020. What’s more, heading into August, the Company had over $2 billion in total net assets for the first time since February 2012. Almost half of the net loss for fiscal 2020 is due to unrealized investment losses related to decreases in valuation of corporate investments. The adoption of a new accounting pronouncement in fiscal year 2018 required changes in the fair value of the Company’s equity investments formerly classified as available-for-sale to no longer be reported through other comprehensive income, but rather through earnings. This change in accounting has resulted in investment income and losses being more volatile quarter-to-quarter. For fiscal year 2020, the Company had a total investment loss of $2.2 million compared to a $1.6 million investment loss in fiscal year 2019. Like net income, though, investment income was positive for the quarter ended June 30. Total assets under management (AUM) on June 30, 2020, stood at $1.7 billion, a more than threefold increase from $510.1 million a year earlier. The increase was primarily due to inflows into the Company’s two ETFs, particularly the smart-beta 2.0 airlines ETF, the U.S. Global Jets ETF (JETS). Assets in JETS started to accelerate in the latter part of March 2020 and ...