U.s. Global Investors, Inc. · NASDAQ:GROW
U.s. Global Investors — Sprott Conference 2014
78 slides from U.s. Global Investors's conference presentation, July 2014
Slide 1: From Asia with Love – The Ups & Downs in the World of Resources
From Asia with Love – The Ups & Downs in the World of Resources Frank Holmes, CEO and Chief Investment Officer usfunds.com July 2014 • 14-344 1.800.US.FUNDS
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 — Awards
usfunds.com Focus on Education — 54 Awards MFEA STAR Awards for Excellence in Education usfunds.com July 2014 14-344 3
Slide 4: Tipping Points, Melting Points
usfunds.com Tipping Points, Melting Points H2O is Like Money Ice Turns to Water at 32º, but Still H2O Demographics, Government Policies, Innovation and Discovery usfunds.com July 2014 14-344 4
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 July 2014 14-344 5
Slide 6: Facebook Use Around the World
usfunds.com Facebook Use Around the World 1.2 Billion People Connected Without Passports! See Disclosures pages for any holdings in U.S. Global Investors Funds. usfunds.com July 2014 14-344 6
Slide 7: Every American Born Will Need…
usfunds.com Every American Born Will Need… November 22, 2013 usfunds.com July 2014 14-344 7
Slide 8: Did You Know? India's 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 July 2014 14-344 8
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 July 2014 14-344 9
Slide 10: Emerging World Holds 50% of the Global Population, Just 23% of GDP
usfunds.com Emerging World Holds 50% of the Global Population, Just 23% of GDP usfunds.com July 2014 14-344 10
Slide 11: Follow Global Money
usfunds.com Follow Global Money Money Supply Down from Peak in 2011 Real Global GDP Peaked at 5.4% in 2011; Declined to 3% in 2013 usfunds.com July 2014 14-344 11
Slide 12: Global Money Supply Influences Markets
usfunds.com Global Money Supply Influences Markets Lending Regulations Slow the Velocity of Money, Which Prevents Money Supply from Growing the Economy usfunds.com July 2014 14-344 12
Slide 13: It's Not the Political Party, It's the Political Policies
usfunds.com It’s Not the Political Party, It’s the Political Policies usfunds.com July 2014 14-344 13
Slide 14: Follow the Money
usfunds.com “Follow the Money” Presidential Election Cycle Government Policy Is a Precursor to Change March 2009 usfunds.com July 2014 14-344 14
Slide 15: Follow the Money
usfunds.com Follow the Money Equities and Gold Have Outperformed Bonds See Disclosures pages for any holdings in U.S. Global Investors Funds. usfunds.com July 2014 14-344 15
Slide 16: 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 July 2014 14-344 16
Slide 17: Formation of Capital Model is Changing
usfunds.com Formation of Capital Model is Changing Options vs. Stock Grants usfunds.com July 2014 14-344 17
Slide 18: Formation of Capital Model is Changing
usfunds.com Formation of Capital Model is Changing Fund Flows and Growth in Assets 2008-2012 Source: Investment Company Institute usfunds.com July 2014 14-344 18
Slide 19: GROW Performance — Past Twelve Months Correlated with Gold Stocks
usfunds.com GROW Performance — Past Twelve Months Correlated with Gold Stocks Past performance does not guarantee future results. See Disclosures pages for any holdings in U.S. Global Investors Funds. usfunds.com 19 July 2014 14-344
Slide 20: GROW Above 200-Day Moving Average
usfunds.com GROW Above 200-Day Moving Average Past performance does not guarantee future results. usfunds.com July 2014 14-344 20
Slide 21: A Short-Term Headwind has Reversed
usfunds.com A Short-Term Headwind has Reversed Japan's PMI Pulled Down Global Economy with Consumption Tax in April usfunds.com July 2014 14-344 21
Slide 22: China's Flash PMI Reverses Up
usfunds.com China’s Flash PMI Reverses Up August 26, 2013 August 2, 2013 March 5, 2013 usfunds.com July 2014 14-344 22
Slide 23: The Keqiang Index
usfunds.com The Keqiang Index Premier Li Keqiang September 27, 2013 Keqiang Index Sectors Include: Bank Loans Rail Freight Electricity Output usfunds.com July 2014 14-344 23
Slide 24: Global Trend is Your Friend
usfunds.com Global Trend is Your Friend — PMI and Commodities Relationship in Uptrend Past Past performance performance is is no no guarantee guarantee of of future future results. results. usfunds.com July 2014 14-344 24
Slide 25: European Manufacturing PMIs Remain Above 50 — Positive
usfunds.com European Manufacturing PMIs Remain Above 50 — Positive usfunds.com July 2014 14-344 25
Slide 26: Oil Stocks Are Undervalued
usfunds.com Oil Stocks Are Undervalued Enjoy Attractive Dividends: 5 Year CAGR 12% Yield S&P 500 Energy 2.0% Stocks Dividend 5-Year 1.6% Government usfunds.com July 2014 14-344 26
Slide 27: Global Oil Demand and Global PMIs Are Highly Correlated
usfunds.com Global Oil Demand and Global PMIs Are Highly Correlated usfunds.com July 2014 14-344 27
Slide 28: Demand for Oil Remains Strong
usfunds.com Demand for Oil Remains Strong Cleaner, Greener China August 7, 2013 See Disclosures pages for any holdings in U.S. Global Investors Funds. usfunds.com July 2014 14-344 28
Slide 29: 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 July 2014 14-344 29
Slide 30: 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 July 2014 14-344 30
Slide 31: 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 July 2014 14-344 31
Slide 32: Natural Gas Golden Cross at 50 Day and 200 Day
usfunds.com Natural Gas Golden Cross at 50 Day and 200 Day usfunds.com July 2014 14-344 32
Slide 33: North American Natural Gas: A Global Bargain
usfunds.com North American Natural Gas: A Global Bargain usfunds.com July 2014 14-344 33
Slide 34: 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 usfunds.com July 2014 14-344 34
Slide 35: Latin American Weathercasters
usfunds.com Latin American Weathercasters usfunds.com July 2014 14-344 35
Slide 36: Latin American Weathercasters
usfunds.com Latin American Weathercasters usfunds.com July 2014 14-344 36
Slide 37: Latin American Weathercasters
usfunds.com Latin American Weathercasters usfunds.com July 2014 14-344 37
Slide 38: usfunds.com
usfunds.com usfunds.com July 2014 14-344 38
Slide 39: Gold Demand Drivers
usfunds.com Gold Demand Drivers Elvis Presley usfunds.com July 2014 14-344 39
Slide 40: Driver: The Fear Trade
usfunds.com Driver: The Fear Trade Monetary Fiscal Janet Yellen, Chairman of the Federal Reserve President Barack Obama usfunds.com July 2014 14-344 40
Slide 41: The Hobbdicator Makes for Great Gold Buys
usfunds.com The Hobbdicator Makes for Great Gold Buys +20% usfunds.com July 2014 14-344 41
Slide 42: Low Real Interest Rates Historically Fuel Gold, Silver and Oil
usfunds.com Low Real Interest Rates Historically +2% Fuel Gold, Silver and Oil usfunds.com July 2014 14-344 42
Slide 43: Inverse Relationship Between Real Interest Rates and Gold
usfunds.com Inverse Relationship Between Real Interest Rates and Gold Real Rates usfunds.com July 2014 14-344 43
Slide 44: Great Roll Over or Rip Off Creates Opportunity
usfunds.com Great Roll Over or Rip Off Creates Opportunity $1,614 March 2013 usfunds.com July 2014 14-344 44
Slide 45: Short Term Headwind for Gold
usfunds.com Short Term Headwind for Gold $1,187 December 2013 usfunds.com July 2014 14-344 45
Slide 46: Gold Rallies
usfunds.com Gold Rallies $1,350 March 2014 usfunds.com July 2014 14-344 46
Slide 47: Gold Rallies
usfunds.com Gold Rallies $1,319 July 2014 usfunds.com July 2014 14-344 47
Slide 48: 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 July 2014 14-344 48
Slide 49: Great Shift in Gold Ownership
usfunds.com Great Shift in Gold Ownership April 25, 2014 usfunds.com July 2014 14-344 49
Slide 50: Russia is World's Largest Palladium Supplier
usfunds.com Russia is World’s Largest Palladium Supplier usfunds.com July 2014 14-344 50
Slide 51: Putin is Making Palladium Supply Politically Unstable
usfunds.com Putin is Making Palladium Supply Politically Unstable usfunds.com July 2014 14-344 51
Slide 52: Palladium Breaking Out?
usfunds.com Palladium Breaking Out? usfunds.com July 2014 14-344 52
Slide 53: Platinum ETF Observations
usfunds.com Platinum ETF Observations Buying Rises with Lower Prices usfunds.com July 2014 14-344 53
Slide 54: Opportunities in Gold
usfunds.com Opportunities in Gold usfunds.com July 2014 14-344 54
Slide 55: Driver: The Love Trade
usfunds.com Driver: The Love Trade usfunds.com July 2014 14-344 55
Slide 56: Gold Love Trade
usfunds.com Gold Love Trade Strong Correlation Between Rising Incomes and Gold Price usfunds.com July 2014 14-344 56
Slide 57: China's Increasing Jewelry Demand
usfunds.com China’s Increasing Jewelry Demand usfunds.com July 2014 14-344 57
Slide 58: Chinese Jewelry Consumption on the Rise
usfunds.com Chinese Jewelry Consumption on the Rise usfunds.com July 2014 14-344 58
Slide 59: Holidays Drive Gold Demand
usfunds.com Holidays Drive Gold Demand usfunds.com July 2014 14-344 59
Slide 60: Managing Expectations — Gold Seasonality
usfunds.com Managing Expectations — Gold Seasonality Past performance is no guarantee of future results. usfunds.com July 2014 14-344 60
Slide 61: Only 3 Times in 3 Decades Gold Stocks Declined 3 Consecutive Years
usfunds.com Only 3 Times in 3 Decades Gold Stocks Declined 3 Consecutive Years February 14, 2014 usfunds.com July 2014 14-344 61
Slide 62: Gold Price to Cash Flow Multiples Recover
usfunds.com Gold Price to Cash Flow Multiples Recover Volatility is Driven by Sentiment Swings from 24x to 5x for Same Ounce of Gold usfunds.com July 2014 14-344 62
Slide 63: Managing Expectations: Gold Mining Companies Have More Verbs and Adjectives than Nouns
usfunds.com Managing Expectations: Gold Mining Companies Have More Verbs and Adjectives than Nouns Tom Cruise, Jerry Maguire usfunds.com July 2014 14-344 63
Slide 64: 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 July 2014 14-344 64
Slide 65: World Precious Minerals Fund (UNWPX) Outperforming Its Benchmark
usfunds.com World Precious Minerals Fund (UNWPX) Outperforming Its Benchmark Gold Price Reversal Past performance does not guarantee future results. See performance page for complete fund performance. usfunds.com July 2014 14-344 65
Slide 66: Gold and Precious Metals Fund (USERX) Outperforming Its Benchmark
usfunds.com Gold and Precious Metals Fund (USERX) Outperforming Its Benchmark Gold Price Reversal Past performance does not guarantee future results. See performance page for complete fund performance. usfunds.com July 2014 14-344 66
Slide 67: 10 Percent Discipline
usfunds.com 10 Percent Discipline UPDATING The chart illustrates the performance of a hypothetical $10,000 investment made in the funds and strategy during the depicted time frame. Figures include reinvestment of capital gains and dividends, but the performance does not include the effect of any dir
Slide 68: Near-Term Tax Free Fund (NEARX)
usfunds.com Near-Term Tax Free Fund (NEARX) A Track Record of Performance and Low Volatility The Near-Term Tax Free Fund has generated consistent positive annual total returns (yield + appreciation) for investors for over 10 years in a row. The chart illustrates the performance of a hypothetical $10
Slide 69: NEARX vs S&P 500 Index
usfunds.com NEARX vs S&P 500 Index A Stable Record of Performance and Low Volatility See Performance page for complete fund performance. The chart illustrates the performance of a hypothetical $10,000 investment made in the fund during the depicted time frame. Figures include reinvestment of capital
Slide 70: Distinctive floating $2 NAV reduces the penny-move volatility in a portfolio
usfunds.com Based on Risk-Adjusted Return Distinctive floating $2 NAV reduces the penny-move volatility in a portfolio. usfunds.com July 2014 14-344 70
Slide 71: More Research from U.S. Global Investors
usfunds.com More Research from U.S. Global Investors Download our latest research at www.usfunds.com. usfunds.com July 2014 14-344 71
Slide 72: Go to usfunds.com
usfunds.com Go to usfunds.com To Sign Up for the Investor Alert Today Subscribe to the weekly, free e-newsletter at usfunds.com/subscribe And for advisors— Subscribe to Advisor Alert at usfunds.com/AAsubscribe usfunds.com July 2014 14-344 72
Slide 73: usfunds.com
usfunds.com usfunds.com July 2014 14-344 73
Slide 74: Fund Performance
usfunds.com Fund Performance usfunds.com July 2014 14-344 74
Slide 75: Disclosure
usfunds.com Disclosure 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 76: Disclosures
usfunds.com Disclosures All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. Although Lipper makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not gu
Slide 77: Disclosures
usfunds.com Disclosures The Purchasing Manager’s Index is an indicator of the economic health of the manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment. The S&P/TSX Venture Composite Inde
Slide 78: Disclosures
usfunds.com Disclosures Investment Objective: The Gold and Precious Metals Fund is an actively managed mutual fund that focuses on gold and precious metals producing companies. The World Precious Minerals Fund is an actively managed fund that focuses on junior and intermediate precious metals explor