Business
U.S. Global Investors Reports Financial Results for the First Quarter of 2020 Fiscal Year
San Antonio, Nov. 07, 2019 (GLOBE NEWSWIRE) -- U.S. Global Investors, Inc. (NASDAQ: GROW) (the “Company”), a boutique registered investment advisory firm with
About this update from U.s. Global Investors, Inc.
[{"type":"text","content":"San Antonio, Nov. 07, 2019 (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 $3.6 million, or $0.24 per share loss, for the quarter ended September 30, 2019. That’s compared to a net loss of $1.1 million, or $0.08 per share loss, for the same three-month period a year earlier. The increase in loss is primarily attributable to unrealized losses on corporate investments along with a decrease in operating revenue.\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n Net unrealized losses on corporate investments in HIVE Blockchain Technologies Ltd. (“HIVE”) and GoldSpot Discoveries Corp. (“GoldSpot”) were major contributors to the net loss. The total unrealized losses recognized in the first fiscal quarter of 2020 amounted to approximately $3.1 million. Since fiscal year 2019, the Company records changes in unrealized gains and losses of all equity investments in investment income. Therefore, changes in these investments, whether short-term or long-term in nature, are recorded through earnings, resulting in investment income being more volatile quarter-over-quarter. Assets under management (AUM) for the quarter ended September 30 fell in comparison to the same period a year earlier, leading to operating revenues of $904,000, down from $1.2 million in the first quarter of fiscal 2019. Average AUM for the quarter ended September 30, 2019, was $541 million versus $624 million in the prior year period, a decrease of 13.3 percent. The decrease was primarily due to shareholder redemptions. U.S. Global Investors’ Gold Funds GOAU and USERX Attracted Healthy Fund Flows “I’m thrilled that our quantamental gold ETF, the U.S. Global GO GOLD and Precious Metal Miners ETF (GOAU), more than tripled its assets in the 12 months ended September 30, 2019,” comments Frank Holmes, CEO and Chief Investment Officer of U.S. Global Investors. “AUM at September 30, 2019, was $33.0 million, up an incredible 230 percent from $10.0 million at September 30, 2018. GOAU continues to perform as it was designed to do, and it has beaten its peers since becoming publicly available to trade more than two years ago. We’ve been aggressively promoting the ETF through email, content marketing, li...