U.s. Global Investors, Inc. · NASDAQ:GROW
U.s. Global Investors — Investor Presentation (October 2014)
123 slides from U.s. Global Investors's investor presentation, October 2014
Slide 1: One World Market, Many Central Banks: How Will Your Investment Be Impacted?
usfunds.com One World Market, Many Central Banks: How Will Your Investment Be Impacted? Frank Holmes, CEO and Chief Investment Officer John Derrick, CFA, Director of Research Brian Hicks, CFA, Portfolio Manager usfunds.com October 2014 14-488 Ralph Aldis, CFA, Portfolio Manager
Slide 2: Performance and Results Oriented
usfunds.com Performance and Results Oriented Investment leadership results in performance Winner of 29 Lipper performance awards, certificates and top rankings since 2000 (4 of the U.S. Global Investors Funds received Lipper performance awards from 2005 to 2008. 6 of the U.S. Global Investors Funds
Slide 3: Focus on Education — 54 Awards
usfunds.com Focus on Education — 54 Awards Mutual Fund Award MFEA STAR Awards for Excellence in Education usfunds.com 3 October 2014 14-488
Slide 4: Frank Holmes
usfunds.com Frank Holmes usfunds.com 4 October 2014 14-488
Slide 5: 7 Billion People — Tipping Point
usfunds.com 7 Billion People — Tipping Point 1970 Centuries to Decades to a Decade for a Billion People usfunds.com 5 October 2014 14-488
Slide 6: Facebook Use Around the World
usfunds.com Facebook Use Around the World 1.2 Billion People Connected Without Passports! See Disclosures page for any holdings in funds mentioned. usfunds.com 6 October 2014 14-488
Slide 7: Every American Born Will Need…
usfunds.com Every American Born Will Need… November 22, 2013 usfunds.com 7 October 2014 14-488
Slide 8: India Population Under 25
usfunds.com Did You Know? India has 600 million people under the age of 25 That’s 2 times the entire population of the U.S. usfunds.com 8 October 2014 14-488
Slide 9: Government Policy Model — Precursor for Change
usfunds.com Government Policy Model — Precursor for Change Janet Yellen, Chairman President Barack Obama of the Federal Reserve usfunds.com 9 October 2014 14-488
Slide 10: Emerging World Holds 49% of the Global Population, Just 24% of GDP
usfunds.com Emerging World Holds 49% of the Global Population, Just 24% of GDP usfunds.com 10 October 2014 14-488
Slide 11: E7 vs G7 Money Supply Three Years Ago
usfunds.com E7 vs G7 Money Supply Three Years Ago 2011 usfunds.com 11 October 2014 14-488
Slide 12: Compare E7 vs G7 Money Supply Growth
usfunds.com Compare E7 vs G7 Money Supply Growth Emerging World’s Money Supply is Robust 2014 usfunds.com 12 October 2014 14-488
Slide 13: The Keqiang Index — Sideways
usfunds.com The Keqiang Index — Sideways September 27, 2013 Keqiang Index Sectors Include: Bank Loans Rail Freight Electricity Output Premier Li Keqiang usfunds.com 13 October 2014 14-488
Slide 14: G7 Countries Printing Money
usfunds.com G7 Countries Printing Money usfunds.com 14 October 2014 14-488
Slide 15: Follow Global Money
usfunds.com Follow Global Money Money Supply Down from Peak in 2011 and Gold Peaked at $1900 usfunds.com 15 October 2014 14-488
Slide 16: Follow The Money – Emerging Market Money Supply Down, Commodity Demand Down
usfunds.com Follow The Money – Emerging Market Money Supply Down, Commodity Demand Down usfunds.com 16 October 2014 14-488
Slide 17: Asia Export Growth in U.S. Dollar Terms
usfunds.com Asia Export Growth in U.S. Dollar Terms usfunds.com 17 October 2014 14-488
Slide 18: Asia Down Since 2011 Peak
usfunds.com Asia Down Since 2011 Peak usfunds.com 18 October 2014 14-488
Slide 19: U.S. Money Supply
usfunds.com U.S. Money Supply usfunds.com 19 October 2014 14-488
Slide 20: Follow the Money
usfunds.com “Follow the Money” Presidential Election Cycle Government Policy Is a Precursor to Change March 2009 usfunds.com 20 October 2014 14-488
Slide 21: Follow the Money
usfunds.com Follow the Money Equities Continue to Outperform Past performance does not guarantee future results. usfunds.com 21 October 2014 14-488
Slide 22: Amazing Correlation – Fed’s Money Assets Rise with S&P 500
usfunds.com Amazing Correlation – Fed’s Money Assets Rise with S&P 500 usfunds.com 22 October 2014 14-488
Slide 23: S&P 500 Index Analysis — Buybacks and Dividends Help Drive Performance
usfunds.com S&P 500 Index Analysis — Buybacks and Dividends Help Drive Performance January 11, 2013 April 5, 2013 Past performance does not guarantee future results. usfunds.com 23 October 2014 14-488
Slide 24: Formation of Capital Model is Changing
usfunds.com Formation of Capital Model is Changing Options vs. Stock Grants usfunds.com 24 October 2014 14-488
Slide 25: Russell 2000 Index Down from July High
usfunds.com Russell 2000 Index Down from July High usfunds.com 25 October 2014 14-488
Slide 26: Opportunity for Mean Reversion
usfunds.com Opportunity for Mean Reversion usfunds.com 26 October 2014 14-488
Slide 27: Interest Rates Have Fallen While Government Prints Money
usfunds.com Interest Rates Have Fallen While Government Prints Money Yield usfunds.com 27 October 2014 14-488
Slide 28: Central Bank
usfunds.com Central Bank • The Fed has bought a net U.S. $1.5 trillion of securities since the beginning of 2013, compared with a net U.S. $2.16 trillion of securities purchased in the four years of quantitative easing that preceded it • The Fed has so far this year reduced its monthly asset purchas
Slide 29: Modest Rise in Interest Rates Expected Over Next 10 Years
usfunds.com Modest Rise in Interest Rates Expected Over Next 10 Years usfunds.com 29 October 2014 14-488
Slide 30: Central Bank
usfunds.com Central Bank • The Fed’s and the BoE’s total assets have risen from 6% of GDP in 2007 to 25.9% and 24.6% at present, while the ECB’s and the Bank of Japan’s assets have risen from 13% to 20% of GDP in 2007 to 20.8% and 57.4% • ECB’s assets have been declining since peaking at 33% of GDP
Slide 31: Europe in Search of Growth with Negative Interest Rate
usfunds.com Europe in Search of Growth with Negative Interest Rate usfunds.com 31 October 2014 14-488
Slide 32: U.S. Yield Curve
usfunds.com U.S. Yield Curve usfunds.com 32 October 2014 14-488
Slide 33: Major Price Reversal Up - Shanghai Composite Index Rising
usfunds.com Major Price Reversal Up - Shanghai Composite Index Rising usfunds.com 33 October 2014 14-488
Slide 34: A Short-Term Headwind for Commodity Demand
usfunds.com A Short-Term Headwind for Commodity Demand usfunds.com 34 October 2014 14-488
Slide 35: Despite a Slight Pullback, China’s PMI Maintains Growth
usfunds.com Despite a Slight Pullback, China’s PMI Maintains Growth August 26, 2013 April 2, 2013 March 5, 2013 usfunds.com 35 October 2014 14-488
Slide 36: Global Trade
usfunds.com Global Trade usfunds.com 36 October 2014 14-488
Slide 37: European Manufacturing PMIs
usfunds.com European Manufacturing PMIs Headwinds with France’s Socialistic Fiscal Plan Dragging down PMI usfunds.com 37 October 2014 14-488
Slide 38: Lower Gas Pump Prices Spur Consumer Spending
usfunds.com Lower Gas Pump Prices Spur Consumer Spending usfunds.com 38 October 2014 14-488
Slide 39: U.S. ISM Manufacturing Index (PMI) is Strong
usfunds.com U.S. ISM Manufacturing Index (PMI) is Strong usfunds.com 39 October 2014 14-488
Slide 40: Global Trend is Your Friend — PMI and Commodities Uptrend
usfunds.com Global Trend is Your Friend — PMI and Commodities Relationship in Uptrend Past performance is no guarantee of future results. usfunds.com 40 October 2014 14-488
Slide 41: Global Trend is Your Friend — PMI and Commodities Downtrend
usfunds.com Global Trend is Your Friend — PMI and Commodities Relationship in Downtrend Past performance is no guarantee of future results. usfunds.com 41 October 2014 14-488
Slide 42: China: Average New Home Price Growth in Four Tier-1 Cities
usfunds.com China: Average New Home Price Growth in Four Tier-1 Cities New policy to ignite real estate Sep. 30 usfunds.com 42 October 2014 14-488
Slide 43: Improving PPI Inflation and Nominal GDP Growth
usfunds.com Improving PPI Inflation and Nominal GDP Growth usfunds.com 43 October 2014 14-488
Slide 44: India: Domestic Mutual Funds Net Equity Investment
usfunds.com India: Domestic Mutual Funds Net Equity Investment usfunds.com 44 October 2014 14-488
Slide 45: Opportunity in India: Investment as Percent of GDP
usfunds.com Opportunity in India: Investment as Percent of GDP usfunds.com 45 October 2014 14-488
Slide 46: India: Real GDP and Investment Growth
usfunds.com India: Real GDP and Investment Growth usfunds.com 46 October 2014 14-488
Slide 47: India: Domestic Car Sales and Truck Sales
usfunds.com India: Domestic Car Sales and Truck Sales Modi Frank usfunds.com 47 October 2014 14-488
Slide 48: Healthy U.S. Bank Loan Growth
usfunds.com Healthy U.S. Bank Loan Growth usfunds.com 48 October 2014 14-488
Slide 49: U.S. Dollar Index Good for Inflation, Headwind for Commodities
usfunds.com U.S. Dollar Index Good for Inflation, Headwind for Commodities usfunds.com 49 October 2014 14-488
Slide 50: U.S. Average Hourly Earnings Growth Stable
usfunds.com U.S. Average Hourly Earnings Growth Stable usfunds.com 50 October 2014 14-488
Slide 51: North America is Strong
usfunds.com North America is Strong U.S. and Mexico usfunds.com 51 October 2014 14-488
Slide 52: Global Interest Rates Are Low
usfunds.com Global Interest Rates Are Low usfunds.com 52 October 2014 14-488
Slide 53: Eurozone CPI Inflation an Opportunity
usfunds.com Eurozone CPI Inflation an Opportunity usfunds.com 53 October 2014 14-488
Slide 54: Spanish Nationals Moving to Germany
usfunds.com Spanish Nationals Moving to Germany usfunds.com 54 October 2014 14-488
Slide 55: What’s Happening with Gold?
usfunds.com What’s Happening with Gold? usfunds.com 55 October 2014 14-488
Slide 56: Managing Expectations — Gold Seasonality
usfunds.com Managing Expectations — Gold Seasonality Past performance is no guarantee of future results. usfunds.com 56 October 2014 14-488
Slide 57: Inverse Relationship Between Real Interest Rates and Gold
usfunds.com Inverse Relationship Between Real Interest Rates and Gold Real Rates usfunds.com 57 October 2014 14-488
Slide 58: Inverse Pattern of Gold vs. 5-Year Treasury Yield is Profound
usfunds.com Inverse Pattern of Gold vs. 5-Year Treasury Yield is Profound March 13, 2014 usfunds.com 58 October 2014 14-488
Slide 59: Insights On Resources
usfunds.com Brian Hicks Insights On Resources usfunds.com 59 October 2014 14-488
Slide 60: Opportunity: Inverse Relationship Between Oil and the Dollar
usfunds.com Opportunity: Inverse Relationship Between Oil and the Dollar usfunds.com 60 October 2014 14-488
Slide 61: PSPFX Top 50 vs. SPX
usfunds.com PSPFX Top 50 vs. SPX The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies. The “Top 50” is a group of resource stocks that U.S. Global Investors selects based on the factors shown above. This group of stocks represents
Slide 62: Opportunity: Inverse Relationship Between Energy Stocks and the Dollar
usfunds.com Opportunity: Inverse Relationship Between Energy Stocks and the Dollar See Disclosures page for any holdings in funds mentioned. usfunds.com 62 October 2014 14-488
Slide 63: Global Oil Demand and Global PMIs Are Highly Correlated
usfunds.com Global Oil Demand and Global PMIs Are Highly Correlated usfunds.com 63 October 2014 14-488
Slide 64: 2015 U.S. Tight Oil Production by Incentive Prices
usfunds.com 2015 U.S. Tight Oil Production by Incentive Prices usfunds.com 64 October 2014 14-488
Slide 65: Producer Country Budget Breakeven Prices
usfunds.com Producer Country Budget Breakeven Prices usfunds.com 65 October 2014 14-488
Slide 66: Long Term Demand for Oil Remains Strong
usfunds.com Long Term Demand for Oil Remains Strong Cleaner, Greener China August 7, 2013 See Disclosures page for any holdings in funds mentioned. usfunds.com 66 October 2014 14-488
Slide 67: OPEC’s Spare Capacity Is Below 5 Percent of Global Production
usfunds.com OPEC’s Spare Capacity Is Below 5 Percent of Global Production usfunds.com 67 October 2014 14-488
Slide 68: U.S. Crude Oil Production at a 25-Year High
usfunds.com U.S. Crude Oil Production at a 25-Year High usfunds.com 68 October 2014 14-488
Slide 69: U.S. Oilfield Cash Flow and Capex Expenditure
usfunds.com U.S. Oilfield Cash Flow and Capex Expenditure usfunds.com 69 October 2014 14-488
Slide 70: North American Natural Gas: A Global Bargain
usfunds.com North American Natural Gas: A Global Bargain usfunds.com 70 October 2014 14-488
Slide 71: Gas Replacing Coal in Power Generation
usfunds.com Gas Replacing Coal in Power Generation usfunds.com 71 October 2014 14-488
Slide 72: But Cheap Feed Stocks and Global Economic Recovery Fuel U.S. Chemical Industry
usfunds.com But Cheap Feed Stocks and Global Economic Recovery Fuel U.S. Chemical Industry Past performance does not guarantee future results. usfunds.com 72 October 2014 14-488
Slide 73: Railroad Stocks Continue to Outperform the Broader Market
usfunds.com Railroad Stocks Continue to Outperform the Broader Market Past performance does not guarantee future results. usfunds.com 73 October 2014 14-488
Slide 74: Government Policies in China Focus on Alternative Energy
usfunds.com Government Policies in China Focus on Alternative Energy Peking University students placed face masks over iconic statues throughout the campus in response to recent “Airpocalypse” in Beijing. usfunds.com 74 October 2014 14-488
Slide 75: Growth of Solar Energy in China and Japan
usfunds.com Growth of Solar Energy in China and Japan Wowism! Chinese Solar: From 3% of the Global Market to 30% in Three Years Trend usfunds.com 75 October 2014 14-488
Slide 76: Chinese Aluminum Demand Picks Up
usfunds.com Chinese Aluminum Demand Picks Up usfunds.com 76 October 2014 14-488
Slide 77: Increasing Palladium Requirements for Cars in China
usfunds.com Increasing Palladium Requirements for Cars in China usfunds.com 77 October 2014 14-488
Slide 78: Value Drivers for Superior Performance
usfunds.com Value Drivers for Superior Performance usfunds.com 78 October 2014 14-488
Slide 79: Global Resources Fund (PSPFX) Top 10 Holdings
usfunds.com Global Resources Fund (PSPFX) Top 10 Holdings usfunds.com 79 October 2014 14-488
Slide 80: 2014 Asset Class Returns
usfunds.com 2014 Asset Class Returns usfunds.com 80 October 2014 14-488
Slide 81: Industrial Metal Prices and the U.S. Dollar
usfunds.com Industrial Metal Prices and the U.S. Dollar usfunds.com 81 October 2014 14-488
Slide 82: Chinese Crude Stainless Steel Production – Positive for Nickel
usfunds.com Chinese Crude Stainless Steel Production – Positive for Nickel usfunds.com 82 October 2014 14-488
Slide 83: Nickel Market Balance With Price Forecasts
usfunds.com Nickel Market Balance With Price Forecasts usfunds.com 83 October 2014 14-488
Slide 84: China Consumer Durable Sales vs. Galvanized Steel Production – Bullish for Zinc
usfunds.com China Consumer Durable Sales vs. Galvanized Steel Production – Bullish for Zinc usfunds.com 84 October 2014 14-488
Slide 85: Insights On Gold
usfunds.com Ralph Aldis Insights On Gold usfunds.com 85 October 2014 14-488
Slide 86: Ah, the Power of Mean Reversion
usfunds.com Ah, the Power of Mean Reversion usfunds.com 86 October 2014 14-488
Slide 87: History of Gold and Gold Stocks During Fed Funds Rate Cycle
usfunds.com History of Gold and Gold Stocks During Fed Funds Rate Cycle usfunds.com 87 October 2014 14-488
Slide 88: Managing Expectations — Gold Oversold in the Year-over-Year Rolling Oscillator
usfunds.com Managing Expectations — Gold Oversold in the Year-over-Year Rolling Oscillator June 20, 2014 usfunds.com 88 October 2014 14-488
Slide 89: Oscillator Gold vs. Dollar Suggests Opportunity
usfunds.com Oscillator Gold vs. Dollar Suggests Opportunity usfunds.com 89 October 2014 14-488
Slide 90: Oscillator Gold Stocks vs. Dollar Suggests Opportunity
usfunds.com Oscillator Gold Stocks vs. Dollar Suggests Opportunity usfunds.com 90 October 2014 14-488
Slide 91: Strong Contrast
usfunds.com Strong Contrast usfunds.com 91 October 2014 14-488
Slide 92: Gold Stock Opportunities
usfunds.com Gold Stock Opportunities Gold Price to Cash Flow Multiples Recover Sentiment Swings from 24x to 5x usfunds.com 92 October 2014 14-488
Slide 93: Resource Stocks Underperform the Underlying Commodities
usfunds.com Resource Stocks Underperform the Underlying Commodities Past performance does not guarantee future results. usfunds.com 93 October 2014 14-488
Slide 94: Recent Dollar Strength Appears to Be Driven by Speculative Positioning
usfunds.com Recent Dollar Strength Appears to Be Driven by Speculative Positioning usfunds.com 94 October 2014 14-488
Slide 95: Great Shift in Gold Ownership
usfunds.com Great Shift in Gold Ownership April 25, 2014 usfunds.com 95 October 2014 14-488
Slide 96: Global Central Banks Hold Gold as Diversifier
usfunds.com Global Central Banks Hold Gold as Diversifier usfunds.com 96 October 2014 14-488
Slide 97: Why Central Banks Hold Gold Despite the Cost of the Dollar
usfunds.com Why Central Banks Hold Gold Despite the Cost of the Dollar Gold, as a form of money, is unique as no one else's liability. "It has never required the credit guarantee of a third party." –Alan Greenspan usfunds.com 97 October 2014 14-488
Slide 98: Is China Still in a Destocking Stage for Gold?
usfunds.com Is China Still in a Destocking Stage for Gold? usfunds.com 98 October 2014 14-488
Slide 99: Understanding China’s Real Physical Gold Demand
usfunds.com Understanding China’s Real Physical Gold Demand usfunds.com 99 October 2014 14-488
Slide 100: Managing Expectations: Gold Mining Companies
usfunds.com Managing Expectations: Gold Mining Companies Have More Verbs and Adjectives than Nouns Tom Cruise, Jerry Maguire usfunds.com 100 October 2014 14-488
Slide 101: The Five M’s for Gold Miners
usfunds.com The Five M’s for Gold Miners • Management • Mine Lifecycle • Market Cap • Money (Burn Rate) • Minerals Weight of Truck: 423 tons Frank Holmes, Load Capacity: 240 tons Mauritania usfunds.com 101 October 2014 14-488
Slide 102: Value Drivers for Superior Performance
usfunds.com Value Drivers for Superior Performance usfunds.com 102 October 2014 14-488
Slide 103: Picking Gold Names – A Look at Our Investment Process
usfunds.com Picking Gold Names – A Look at Our Investment Process usfunds.com 103 October 2014 14-488
Slide 104: Case Study: A Look at Klondex Mines
usfunds.com Case Study: A Look at Klondex Mines See Disclosures page for any holdings in funds mentioned. usfunds.com 104 October 2014 14-488
Slide 105: Gold Stocks from Discovery to Production
usfunds.com Gold Stocks from Discovery to Production usfunds.com 105 October 2014 14-488
Slide 106: Klondex Closely Follows Normal Life Cycle of a Mine
usfunds.com Klondex Closely Follows Normal Life Cycle of a Mine usfunds.com 106 October 2014 14-488
Slide 107: The Undervaluation of Klondex Mines Creates Opportunity
usfunds.com The Undervaluation of Klondex Mines Creates Opportunity See Disclosures page for any holdings in funds mentioned. usfunds.com 107 October 2014 14-488
Slide 108: usfunds.com
usfunds.com usfunds.com 108 October 2014 14-488
Slide 109: Opportunity to Position for Rate Increases
usfunds.com Opportunity to Position for Rate Increases usfunds.com 109 October 2014 14-488
Slide 110: It Took S&P 13 Years to Pass the Steady Growth of Near-Term Tax Free
usfunds.com It Took S&P 13 Years to Pass the Steady Growth of Near-Term Tax Free Fund With History of No Drama Past performance does not guarantee future results. usfunds.com 110 October 2014 14-488
Slide 111: 13 Years of Positive Annual Total Returns
usfunds.com 13 Years of Positive Annual Total Returns Past performance does not guarantee future results. See performance page for complete fund performance information. usfunds.com 111 October 2014 14-488
Slide 112: 5 Stars for Three-Year Period
usfunds.com 5 Stars for Three-Year Period Morningstar ratings based on risk-adjusted Return and number of funds Category: Municipal National Short-Term Funds Through: 08/31/2014 usfunds.com 112 October 2014 14-488
Slide 113: NEARX Seeks to Preserve Your Capital
usfunds.com NEARX Seeks to Preserve Your Capital Our Near-Term Tax Free Fund is unique for its NAV that has floated in the $2 range. Past performance does not guarantee future results. See performance page for complete fund performance information. usfunds.com 113 October 2014 14-488
Slide 114: usfunds.com
usfunds.com usfunds.com 114 October 2014 14-488
Slide 115: usfunds.com
usfunds.com usfunds.com 115 October 2014 14-488
Slide 116: usfunds.com
usfunds.com usfunds.com 116 October 2014 14-488
Slide 117: Disclosures
usfunds.com Disclosures usfunds.com 117 October 2014 14-488
Slide 118: Disclosures
usfunds.com Disclosures 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
Slide 119: Disclosures
usfunds.com Disclosures 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 ove
Slide 120: Disclosures
usfunds.com Disclosures Morningstar Ratings are based on risk-adjusted return. The Morningstar Rating for a fund is derived from a weighted-average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. Past performance does not guarante
Slide 121: Disclosures
usfunds.com Disclosures The NYSE Arca Gold Miners Index is a modified market capitalization weighted index comprised of publicly traded companies involved primarily in the mining for gold and silver. The index benchmark value was 500.0 at the close of trading on December 20, 2002. The Russell 2000 I
Slide 122: Disclosures
usfunds.com Disclosures The U.S. Trade Weighted Dollar Index provides a general indication of the international value of the U.S. dollar. Standard deviation is a measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. Standard deviation is
Slide 123: Disclosures
usfunds.com Disclosures Fund portfolios are actively managed, and holdings may change daily. Holdings are reported as of the most recent quarter-end. Holdings in the funds mentioned as a percentage of net assets as of 6/30/2014: Africa Oilfield Logistics Ltd (PSPFX 2.27%); Alamos Gold (UNWPX 0.06%);
U.S. Global Investors — Investor Presentation (October 2014) on 6ix