U.S. Global Investors Funds Global Luxury Goods Fund · NASDAQ:USLUX
U.S. Global Investors Funds Global Luxury Goods Fund — U.S. Global Investors — Investor Presentation (November 2009)
64 slides from U.S. Global Investors Funds Global Luxury Goods Fund's investor presentation, November 2009
Slide 1: What's Driving Energy?
U.S. Global Investors Searching for Opportunities, Managing Risk What’s Driving Energy? Frank Holmes, CEO and Chief Investment Officer Brian Hicks, CFA Portfolio Manager Evan Smith, CFA Portfolio Manager www.usfunds.com November 2009 1.800.US.FUNDS 09-673
Slide 2: Fund Recognition
Fund Recognition Investment leadership results in performance Winner of 26 Lipper Fund Awards and certificates since 2000 www.usfunds.com November 2009 09-673 2
Slide 3: 6 Billion People-Tipping Point
6 Billion People-Tipping Point www.usfunds.com November 2009 09-673 3
Slide 4: Delayed Not Derailed Secular Bull Market in Commodities
Delayed Not Derailed Secular Bull Market in Commodities Significant events for S&P Financials and the VIX Natural Resources Outlook Webcast January 2009 www.usfunds.com November 2009 09-673 4
Slide 5: Demographics is the Key
Demographics is the Key Half of the global population (>3 billion) is estimated to live in urban areas Deng Xiaoping Projected urban population is larger than the entire world population in 1965 www.usfunds.com November 2009 09-673 5
Slide 6: Demographics is the Key
Demographics is the Key EM = Emerging Markets www.usfunds.com November 2009 09-673 6
Slide 7: Macro Theme-Tailwind for Infrastructure Spending
Macro Theme-Tailwind for Infrastructure Spending Source: PIRA www.usfunds.com November 2009 09-673 7
Slide 8: Macro Trend Tailwind for Investing in Emerging Economies
Macro Trend Tailwind for Investing in Emerging Economies Population Source: PIRA www.usfunds.com November 2009 09-673 8
Slide 9: Chindia — Rising Middle Class
Chindia — Rising Middle Class Source: PIRA www.usfunds.com November 2009 09-673 9
Slide 10: Infrastructure Spending and Oil Demand March Together
Infrastructure Spending and Oil Demand March Together Barrels of Oil per Day/1000 www.usfunds.com November 2009 09-673 10
Slide 11: Developing Nations' Per Capita Income and Oil Demand
Developing Nations’ Per Capita Income is at a Level Where Oil Demand Begins to Grow Rapidly www.usfunds.com November 2009 09-673 11
Slide 12: OECD and EM/FSU Oil Demand Growth
OECD and EM/FSU Oil Demand Growth OECD= Organization for Economic Co-Operation and Development EM= Emerging Markets www.usfunds.com November 2009 09-673 12
Slide 13: Super Shift – Energy
Super Shift – Energy Oil Consumption and Industrialization, 1900 to present Oil Consumption Oil per capita rises rapidly during early industrialization, then levels to rapid real income growth. Rising world trade actually stimulates the industrialization phase. per capita: Lower U.S. labor costs ver
Slide 14: Super Shift – Electricity
Super Shift – Electricity Intensity of electricity consumption Source: BHPB Power consumption has been growing faster than the rate of GDP growth. www.usfunds.com November 2009 09-673 14
Slide 15: Long-Term Power Demand Likely to Grow
Long-Term Power Demand Likely to Grow China’s per capita power consumption is only 16% that of the U.S. India’s is only 4% of per capita U.S. consumption As per capita income rises, power consumption likely to grow www.usfunds.com November 2009 09-673 15
Slide 16: Proposed Ultra Mega Power Projects
Proposed Ultra Mega Power Projects www.usfunds.com November 2009 09-673 16
Slide 17: Government Policy Model — Precursor for Change
Government Policy Model — Precursor for Change www.usfunds.com November 2009 09-673 17
Slide 18: E7 and G7 Population vs GDP — Inverse Relationship
E7 and G7 Population vs GDP — Inverse Relationship www.usfunds.com November 2009 09-673 18
Slide 19: Monetary Policy
Monetary Policy www.usfunds.com November 2009 09-673 19
Slide 20: Monetary Policy
Monetary Policy www.usfunds.com November 2009 09-673 20
Slide 21: Money Supply and GDP Expanded Fast Against Limited Oil Supplies
Before the Crisis Money Supply and GDP Expanded Fast Against Limited Oil Supplies www.usfunds.com November 2009 09-673 21
Slide 22: High Correlation of Oil and Money Supply
High Correlation of Oil and Money Supply Government will likely continue to print money, like the bailout of Fannie Mae and Freddie Mac, to support the economy www.usfunds.com November 2009 09-673 22
Slide 23: Increases in Money Supply Translate Into Higher Commodity Prices
Increases in Money Supply Translate Into Higher Commodity Prices in the Long-Run www.usfunds.com November 2009 09-673 23
Slide 24: Commodities Respond First to Monetary Policy
Commodities Respond First to Monetary Policy While Retail Prices are More Sticky www.usfunds.com November 2009 09-673 24
Slide 25: Cycles – Where Are We on the…
Cycles – Where Are We on the… Kuznets Cycle – 20-year Emerging Market Cycle That Drives Commodity Demand Presidential Election Cycle – 4-Year Cycle Seasonal Cycle – Commodity and Stock Market Patterns www.usfunds.com November 2009 09-673 25
Slide 26: Annual Cyclical Pattern — Oil
Annual Cyclical Pattern — Oil Source: U.S. Global Research www.usfunds.com November 2009 09-673 26
Slide 27: Annual Cyclical Pattern – Natural Gas
Annual Cyclical Pattern – Natural Gas Source: U.S. Global Research www.usfunds.com November 2009 09-673 27
Slide 28: Oil vs. Dollar
Oil vs. Dollar Correlation over 10 years: -80% 60-day Std Dev Number of Times Up 2 Std Dev Number of Times Down 2 Std Dev Current Move in Std Dev Oil 18.78% 9 or 1.7% of time 19 or 3.6% of time 0.3 U.S. Dollar 4.51% 13 or 2.5% of time 5 or 1% of time (0.5) Source: Bloomberg, U.S. Global Investors ww
Slide 29: Household Consumption Contribution to Global GDP Growth: BRIC vs U.S.
Household Consumption Contribution to Nominal USD Global GDP Growth: BRIC vs U.S. BRIC = Brazil, Russia, India and China www.usfunds.com November 2009 09-673 29
Slide 30: Catch-Up Potential — Big Macro Trend
Catch-Up Potential — Big Macro Trend As of Sep 2006. Source: IMF, Merrill Lynch • Poor countries grow faster than rich ones • EM GDP per capita is US$5,000 vs. $40,000 in developed markets www.usfunds.com November 2009 09-673 30
Slide 31: Oil Consumption Per Day Per Person Vis-à-Vis Per Capita Income
Oil Consumption Per Day Per Person Vis-à-Vis Per Capita Income www.usfunds.com November 2009 09-673 31
Slide 32: Oil Consumption Per Day Per Person Vis-à-Vis Per Capita Income
Oil Consumption Per Day Per Person Vis-à-Vis Per Capita Income www.usfunds.com November 2009 09-673 32
Slide 33: Auto Sales, BRIC vs U.S.
Auto Sales, BRIC vs U.S. BRIC = Brazil, Russia, India and China www.usfunds.com November 2009 09-673 33
Slide 34: Car Ownership Rising in Asia
Car Ownership Rising in Asia . . . Less than 5% of the population has a car in China versus a 74% penetration in the U.S. Much lower penetration in India with lower per capita income Car penetration shoots up as per capita income crosses US$3,000 www.usfunds.com November 2009 09-673 34
Slide 35: Huge Pent-Up Demand for Automotive Transportation
Huge Pent-Up Demand for Automotive Transportation in the Developing World BYD (Build Your Dreams) president Wang Chuanfu sits inside the BYD E6 Electric Car during the North American International Auto Show in Detroit, Michigan January 12, 2009. Source: REUTERS/Mark Blinch www.usfunds.com November 2
Slide 36: China Passenger Car Sales Year-over-Year Growth
China Passenger Car Sales Year-over-Year Growth Sharp Rebound YTD www.usfunds.com November 2009 09-673 36
Slide 37: $800 Billion in Asia's Regional Stimulus
$800 Billion in Asia’s Regional Stimulus In the next five years, we expect $2.5 trillion infrastructure spending for Asia ex-Japan (a 15% CAGR) The global downturn impacts current infrastructure needs, e.g., power generation and ports Longer-term needs remain, e.g., road, rail, green energy ww
Slide 38: China: New Renminbi Bank Lending
China: New Renminbi Bank Lending www.usfunds.com November 2009 09-673 38
Slide 39: Uneven Growth in Infrastructure Spending
Uneven Growth in Infrastructure Spending China projected for 36.5% Year-over-Year growth in infrastructure spending in 2009, but is moderating into 2010 www.usfunds.com November 2009 09-673 39
Slide 40: China Crude Oil Net Imports
China Crude Oil Net Imports www.usfunds.com November 2009 09-673 40
Slide 41: Chinese Oil Demand Growth Offsets U.S. Demand Destruction
Chinese Oil Demand Growth Offsets U.S. Demand Destruction www.usfunds.com November 2009 09-673 41
Slide 42: China + U.S. Oil Demand Back to July 2008 Levels
China + U.S. Oil Demand Back to July 2008 Levels — Chimerica www.usfunds.com November 2009 09-673 42
Slide 43: China Asphalt Apparent Demand
China Asphalt Apparent Demand Zhanxi bridge highway, Beijing China www.usfunds.com November 2009 09-673 43
Slide 44: China's Overseas Oil and Gas Activity Rebounds
China’s Overseas Oil and Gas Activity Rebounds Source: PIRA www.usfunds.com November 2009 09-673 44
Slide 45: Historical 'Macro Trend' Since 1935
Historical ‘Macro Trend’ Since 1935 www.usfunds.com November 2009 09-673 45
Slide 46: Massive Bifurcation in Market Started Oct '07
Massive Bifurcation in Market Started Oct ‘07 www.usfunds.com November 2009 09-673 46
Slide 47: Emerging Markets are Driving Oil Demand
Emerging Markets are Driving Oil Demand www.usfunds.com November 2009 09-673 47
Slide 48: Geopolitical Threats to Oil Supply
Geopolitical Threats to Oil Supply Mahmoud Ahmadinejad, President of Iran www.usfunds.com November 2009 09-673 48
Slide 49: Longer-Term, Rising F&D Costs Render Higher Prices
Longer-Term, Rising F&D Costs Render Higher Prices F+D= Findings + Development www.usfunds.com November 2009 09-673 49
Slide 50: Long-Term Oil Prices Aligned with Fundamentals
Long-Term Oil Prices Aligned with Fundamentals www.usfunds.com November 2009 09-673 50
Slide 51: U.S. Consumer Spending on Gasoline
U.S. Consumer Spending on Gasoline www.usfunds.com November 2009 09-673 51
Slide 52: WTI Oil Rising Over 100% Is an Indicator of U.S. Recession
WTI Oil Rising by More than 100% Year-over-Year is a Reliable Indicator of the Onset of U.S. Recession www.usfunds.com November 2009 09-673 52
Slide 53: High Unemployment and Spare Capacity Suggest Muted Core Inflation
High Unemployment and Spare Capacity Suggest Core Inflation will Remain Muted www.usfunds.com November 2009 09-673 53
Slide 54: EM-Led Recovery Brings Higher Oil Prices, Rising Headline Inflation
EM-Led Recovery will Bring Higher Oil Prices, Suggesting Rising Headline Inflation www.usfunds.com November 2009 09-673 54
Slide 55: Is The Distillate Inventory Cycle About to Turn?
Is The Distillate Inventory Cycle About to Turn? www.usfunds.com November 2009 09-673 55
Slide 56: Improving Refining Prospects Should Boost Integrated Energy Stocks
Improving Refining Business Prospects Should Boost Integrated Energy Stocks www.usfunds.com November 2009 09-673 56
Slide 57: Seasonal Patterns: Returns Strongest December through May
Seasonal Patterns: Returns Strongest in December through May in 16 of 19 Years www.usfunds.com November 2009 09-673 57
Slide 58: Seasonal Cycle: Unusually Predictable
Seasonal Cycle: Unusually Predictable www.usfunds.com November 2009 09-673 58
Slide 59: Become a Fan of U.S. Global
Become a Fan of U.S. Global Check Out the U.S. Global Fan Page on Facebook @ www.facebook.com/usfunds www.usfunds.com November 2009 09-673 59
Slide 60: Follow U.S. Global on Twitter
Follow U.S. Global on Twitter Real-Time Updates on Market Events @ twitter.com/usfunds www.usfunds.com November 2009 09-673 60
Slide 61: Frank Holmes' CEO Blog "Frank Talk"
Frank Holmes’ CEO Blog “Frank Talk” Frank Talk offers insight into market events and discusses global investing topics like gold, commodities, infrastructure and emerging markets. Read what’s on Frank’s mind @ www.usfunds.com/investor-resources/frank-talk/ www.usfunds.com November 2009 09-673 61
Slide 62: Sign Up to Receive the Weekly Investor Alert
Sign Up to Receive the Weekly Investor Alert Each week our investment team analyzes key events in global markets. U.S. Global’s Weekly Investor Alert is delivered to your inbox each Friday evening. Subscribe to this free market newsletter @ www.usfunds.com/investor-resources/investor-alert/ www.usfu
Slide 63: Check Out the New usfunds.com
Check Out the New usfunds.com We’ve recently redesigned our Web site and added some new features. Visit www.usfunds.com to see the new look! www.usfunds.com November 2009 09-673 63
Slide 64: Disclosures
Disclosures Please consider carefully the 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. G
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