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U.S. Global Investors Reports $11 Million Revenue in Fiscal 2024, Repurchasing Over $2 Million in Shares While Generating a Strong Shareholder Yield of 9.41%
SAN ANTONIO, Sept. 10, 2024 (GLOBE NEWSWIRE) -- U.S. Global Investors, Inc. (NASDAQ: GROW) (the “Company”), a registered investment advisory firm with deep
About this update from U.s. Global Investors, Inc.
[{"type":"text","content":"SAN ANTONIO, Sept. 10, 2024 (GLOBE NEWSWIRE) -- U.S. Global Investors, Inc. (NASDAQ: GROW) (the “Company”), a registered investment advisory firm with deep expertise in global markets and specialized sectors from gold mining to airlines, today announced operating revenues of approximately $11 million for the fiscal year ended June 30, 2024. The Company reported net income of $1.3 million, down from $3.1 million in the same period the previous year, largely due to a decrease in advisory fees stemming from lower assets under management (AUM). However, net investment income surged to $2.1 million, a remarkable 578% increase from the prior 12-month period. For fiscal year 2024, average AUM stood at $1.9 billion, with total AUM nearly $1.6 billion as of June 30, 2024, down from $2.4 billion the year prior. Despite the challenging macroeconomic environment, marked by a prolonged yield curve inversion—where the two-year Treasury yield exceeded the 10-year yield—investor sentiment toward the airline industry has weakened. This inversion, a historical recession signal, lasted for a record-breaking 783 days before reversing.1 The uncertainty surrounding the inversion led many investors to reduce exposure to industries like airlines, which are typically sensitive to economic slowdowns. Despite this, the airline industry’s fundamentals—marked by robust growth in passengers, revenue and cash flow—remained strong, although macroeconomic concerns kept many investors on the sidelines. Now that the yield curve has normalized, the Company expects a potential shift in market sentiment, as the reversal could signal renewed confidence in future economic stability. “We can’t control external factors like geopolitics, interest rates, taxes or regulations. However, we do have control over our internal processes, including robust governance, compliance and our smart beta 2.0 approach to developing thematic ETF products, which combines quantitative and fundamental analysis,” says Frank Holmes, CEO of U.S. Global Investors. “While we cannot directly influence investor sentiment, we remain optimistic, particularly following the reversal of the yield curve in September after its historic 783-day inversion. As illustrated in the chart, the correlation between the inverted yield curve and redemptions in the U.S. Global Jets ETF (NYSE: JETS) has been significa...