U.s. Global Investors, Inc. · NASDAQ:GROW
U.s. Global Investors — Cambridge House Canadian Investor Conference 2015
76 slides from U.s. Global Investors's conference presentation, May 2015
Slide 1: Fear Trade Sees Gold as a Store of Value When Interest Rates are Negative
Fear Trade Sees Gold as a Store of Value When Interest Rates are Negative Frank Holmes, CEO and Chief Investment Officer usfunds.com 1.800.US.FUNDS May 2015 • 15-279
Slide 2: Who is U.S. Global Investors?
Who is U.S. Global Investors? A boutique publicly listed investment adviser specializing in gold, natural resources, emerging markets, domestic equities and municipal bonds. May 2015 15-279 U.S. Global Investors 2
Slide 3: GROW Performance — Past Twelve Months Outperformed Gold Stocks
GROW Performance — Past Twelve Months Outperformed Gold Stocks Past performance does not guarantee future results. See disclosures pages for any holdings in mutual funds. May 2015 15-279 U.S. Global Investors 3
Slide 4: Performance and Results Oriented
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 received cer
Slide 5: Focus on Education — Awards
Focus on Education — 64 Awards Mutual Fund Education Alliance MFEA STAR Awards for Excellence in Education May 2015 15-279 U.S. Global Investors 5
Slide 6: Tipping Points, Melting Points Concept
Tipping Points, Melting Points Concept H2O is Like Money Ice Turns to Water at 32º, but Still H2O May 2015 15-279 U.S. Global Investors 6
Slide 7: Investment Triangles of Thinking: Want Alpha?
Investment Triangles of Thinking Want Alpha? May 2015 15-279 U.S. Global Investors 7
Slide 8: Investment Process: Knowledge Must Be Explicit and Tacit
Investment Process: Knowledge Must Be Explicit and Tacit May 2015 15-279 U.S. Global Investors 8
Slide 9: Copper Mountain
Copper Mountain www.usfunds.com/slideshows/on-a-quest-for-copper 9
Slide 10: Investment Triangles of Thinking
Investment Triangles of Thinking May 2015 15-279 U.S. Global Investors 10
Slide 11: 7 Billion People — Tipping Point
7 Billion People — Tipping Point 1970 Centuries to Decades to a Decade for a Billion People May 2015 15-279 U.S. Global Investors 11
Slide 12: Every American Born Will Need…
Every American Born Will Need… November 22, 2013 May 2015 15-279 U.S. Global Investors 12
Slide 13: Did You Know? India's Population
Did You Know? India has 600 million people under the age of 25 That’s 2 times the entire population of the U.S. India’s stock market was up 29% in 2014 May 2015 15-279 U.S. Global Investors 13
Slide 14: 1.2 Billion People Connected Without Passports!
1.2 Billion People Connected Without Passports! It took 9 years to have a billion people connected. See disclosures pages for any holdings in mutual funds. May 2015 15-279 U.S. Global Investors 14
Slide 15: China Surpasses U.S. — Compare GDP in Absolute Terms vs. PPP
China Surpasses U.S. — Compare GDP in Absolute Terms vs. GDP on Purchasing Power Parity Valuation May 2015 15-279 U.S. Global Investors 15
Slide 16: Chindia — 40% of the World's Population
Chindia — 40% of the World’s Population May 2015 15-279 U.S. Global Investors 16
Slide 17: Government Policy Model — Precursor for Change
Government Policy Model — Precursor for Change Janet Yellen, Chairman President Barack Obama of the Federal Reserve May 2015 15-279 U.S. Global Investors 17
Slide 18: “Follow the Money”: U.S. Money Supply
“Follow the Money” U.S. Money Supply May 2015 15-279 U.S. Global Investors 18
Slide 19: Compare E7 Money Supply Growth
Compare E7 Money Supply Growth Emerging World’s Money Supply Declines 2011 2014 May 2015 15-279 U.S. Global Investors 19
Slide 20: Follow Emerging Market E7 Money Supply
Follow Emerging Market E7 Money Supply Money Supply Down from Peak in 2011 and Gold Peaked at $1,900 Gold hits $1,900 and Swiss Franc Peg to Euro 2011 Past performance is no guarantee of future results. May 2015 15-279 U.S. Global Investors 20
Slide 21: Inverse Relationship Between Real Interest Rates and Gold — Fear Trade
Inverse Relationship Between Real Interest Rates and Gold — Fear Trade Real Rates Past performance is no guarantee of future results. May 2015 15-279 U.S. Global Investors 21
Slide 22: Europe in Search of Growth with Negative Interest Rate
Europe in Search of Growth with Negative Interest Rate Past performance is no guarantee of future results. May 2015 15-279 U.S. Global Investors 22
Slide 23: Pay Attention to Currency Moves— Gold Priced in Euros
Pay Attention to Currency Moves— Gold Priced in Euros May 2015 15-279 U.S. Global Investors 23
Slide 24: Eurozone Consumer Confidence at 89-Month High
Eurozone Consumer Confidence at 89-Month High February 20, 2015 May 2015 15-279 U.S. Global Investors 24
Slide 25: Pay Attention to Currency Moves
Pay Attention to Currency Moves May 2015 15-279 U.S. Global Investors 25
Slide 26: Gold in Canadian Dollar Makes Canadian Gold Producers More Attractive
Gold in Canadian Dollar Makes Canadian Gold Producers More Attractive Past performance is no guarantee of future results. May 2015 15-279 U.S. Global Investors 26
Slide 27: G20 Global Synchronized Tax and Regulation Policy Focus vs. Free Trade
G20 Global Synchronized Tax and Regulation Policy Focus vs. Free Trade Prior to 2008 May 2015 15-279 U.S. Global Investors 27
Slide 28: Investment Triangles of Thinking
Investment Triangles of Thinking May 2015 15-279 U.S. Global Investors 28
Slide 29: Managing Expectations — Cycles
Managing Expectations — Cycles LIFE CYCLE ANNUAL PRESIDENTIAL OF MINE DAY MONTH SEASONAL 4-YEAR 8-YEAR May 2015 15-279 U.S. Global Investors 29
Slide 30: Managing Expectations — Gold Seasonality — Love Trade
Managing Expectations — Gold Seasonality — Love Trade Past performance is no guarantee of future results. May 2015 15-279 U.S. Global Investors 30
Slide 31: “Follow the Money”: 4-Year Presidential Cycle
“Follow the Money” 4-Year Presidential Cycle “Government Policy Is a Precursor to Change” March 2009 May 2015 15-279 U.S. Global Investors 31
Slide 32: 8-Year Mine Cycle
8-Year Mine Cycle Explorers All Fall 70% If Not Taken Over May 2015 15-279 U.S. Global Investors 32
Slide 33: Life is about managing expectations.
Life is about managing expectations. -Warren Buffett
Slide 34: Different Securities, Different Sigmas
Different Securities, Different Sigmas Each Asset Class Has Its Own DNA Volatility Standard deviation based on 10-year daily data as of 03/31/2015 Daily Rolling 1 Year NYSE Arca Gold Bugs ±3% ±36% Hang Seng Composite Index ±2% ±26% Gold Bullion ±1% ±19% S&P 500 ±1% ±17% Australian Dollar ±1% ±14% Eu
Slide 35: Gold vs. Dollar 3-Month Percent Change Oscillator
Gold vs. Dollar 3-Month Percent Change Oscillator March 20, 2015 May 2015 15-279 U.S. Global Investors 35
Slide 36: Peaks and Valleys of Global Investing
Peaks and Valleys of Global Investing May 2015 15-279 U.S. Global Investors 36
Slide 37: Global Trend is Your Friend — PMI and Commodities in Uptrend
Global Trend is Your Friend — PMI and Commodities Relationship in Uptrend Past performance is no guarantee of future results. May 2015 15-279 U.S. Global Investors 37
Slide 38: Global Trend is Your Friend — PMI and Commodities in Downtrend
Global Trend is Your Friend — PMI and Commodities Relationship in Downtrend Past performance is no guarantee of future results. May 2015 15-279 U.S. Global Investors 38
Slide 39: Global Manufacturing PMI Turns Bearish
Global Manufacturing PMI Turns Bearish December 26, 2014 Past performance is no guarantee of future results. May 2015 15-279 U.S. Global Investors 39
Slide 40: China's Manufacturing Industry Negative
China’s Manufacturing Industry Negative August 26, 2013 April 2, 2013 March 5, 2013 May 2015 15-279 U.S. Global Investors 40
Slide 41: Oil Crash Translates into a $500 Billion Global Tax Break
Oil Crash Translates into a Tipping $500 Billion Global Tax Break Point Breakdown $90 per Barrel Past performance is no guarantee of future results. May 2015 15-279 U.S. Global Investors 41
Slide 42: Shanghai Composite's Breakout Continues
Shanghai Composite’s Breakout Continues April 10, 2015 September 22, 2014 May 2015 15-279 U.S. Global Investors 42
Slide 43: Chinese Stock Valuation Has Been Attractive
Chinese Stock Valuation Has Been Attractive China H-Shares Dividend Yield 3% 2% 3% May 2015 15-279 U.S. Global Investors 43
Slide 44: Compare: S&P 500 and China H-Share Dividends to U.S. Treasury Yields
Compare: S&P 500 and China H-Share Dividends to U.S. Treasury Yields Name Bond Yield or Dividend Yield Singapore Straits Times 3.3% China H-Share Index 3.0% S&P 500 Index 2.0% U.S. 10 Year Treasury Yield 2.3% U.S. 5 Year Treasury Yield 1.6% As of May 19, 2015. May 2015 15-279 U.S. Global Investors 4
Slide 45: Low Oil Prices Have Benefited Chinese Airlines
Low Oil Prices Have Benefited Chinese Airlines See disclosures pages for any holdings in mutual funds. May 2015 15-279 U.S. Global Investors 45
Slide 46: Government Leadership
Government Leadership Lee Kuan Yew’s Singapore Flourished March 26, 2015 while Fidel Castro’s Cuba Floundered Lee Kuan Yew Fidel Castro May 2015 15-279 U.S. Global Investors 46
Slide 47: Singapore Before and After
Singapore Before and After May 2015 15-279 U.S. Global Investors 47
Slide 48: Cuba — No Change
Cuba — No Change May 2015 15-279 U.S. Global Investors 48
Slide 49: Emerging High-Speed Rail Hub Cities
Emerging High-Speed Rail Hub Cities Past performance is no guarantee of future results. May 2015 15-279 U.S. Global Investors 49
Slide 50: President Xi Jinping's “One Belt, One Road” Strategy
President Xi Jinping’s “One Belt, One Road” Strategy May 2015 15-279 U.S. Global Investors 50
Slide 51: Geographic Coverage “One Belt, One Road” Strategy
Geographic Coverage “One Belt, One Road” Strategy May 2015 15-279 U.S. Global Investors 51
Slide 52: China Has Almost $4 Trillion in Reserves for Silk Road Economic Belt
China Has Almost $4 Trillion U.S. Dollars in Reserves for Silk Road Economic Belt Strategy Past performance is no guarantee of future results. May 2015 15-279 U.S. Global Investors 52
Slide 53: “One Belt, One Road” Strategy
“One Belt, One Road” Strategy International Support for Chinese Infrastructure Complex May 2015 15-279 U.S. Global Investors 53
Slide 54: Golden Silk Road
Golden Silk Road Gold Mining Projects Along the New Silk Road May 2015 15-279 U.S. Global Investors 54
Slide 55: Gold Demand Drivers
Gold Demand Drivers May 2015 15-279 U.S. Global Investors 55
Slide 56: Gold Was Second Best Performing Currency of 2014
Gold Was Second Best Performing Currency of 2014 Past performance is no guarantee of future results. May 2015 15-279 U.S. Global Investors 56
Slide 57: The Hobbdicator Makes for Great Gold Buys
The Hobbdicator Makes for Great Gold Buys +20% Past performance is no guarantee of future results. May 2015 15-279 U.S. Global Investors 57
Slide 58: Driver: The Love Trade
Driver: The Love Trade May 2015 15-279 U.S. Global Investors 58
Slide 59: Holidays Drive Gold Demand
Holidays Drive Gold Demand May 2015 15-279 U.S. Global Investors 59
Slide 60: Gold “Love Trade”
Gold “Love Trade” Strong Correlation Between Rising Incomes and Gold Price Past performance is no guarantee of future results. May 2015 15-279 U.S. Global Investors 60
Slide 61: Chinese Jewelry Consumption Triples Since 2004
Chinese Jewelry Consumption Triples Since 2004 April 25, 2014 Past performance is no guarantee of future results. May 2015 15-279 U.S. Global Investors 61
Slide 62: Great Shift in Gold Ownership
Great Shift in Gold Ownership China from Price Taker to Price Maker April 25, 2014 May 2015 15-279 U.S. Global Investors 62
Slide 63: China's Gold Share of Total Reserves and Foreign Exchange Reserves
China’s Gold Share of Total Reserves and Foreign Exchange Reserves April 25, 2014 Past performance is no guarantee of future results. May 2015 15-279 U.S. Global Investors 63
Slide 64: Value Drivers for Superior Performance
Value Drivers for Superior Performance The key success factor to superior performance is growth on a per share basis in the 3 value drivers, Production, Cash Flow, Reserves. May 2015 15-279 U.S. Global Investors 64
Slide 65: How Does Gold Sector Compete Against Others Sectors?
How Does Gold Sector Compete Against Others Sectors? May 2015 15-279 U.S. Global Investors 65
Slide 66: Optimism In A Sea of Pessimism
Optimism In A Sea of Pessimism May 2015 15-279 U.S. Global Investors 66
Slide 67: +3 Million Ounce Discoveries Becoming Scarce — Look for M&A to Pick Up
+3 Million Ounce Discoveries Becoming Scarce — Look for M&A to Pick Up May 2015 15-279 U.S. Global Investors 67
Slide 68: Royalty Companies Have Outperformed GDX Gold Mines Index
Royalty Companies Have Outperformed GDX Gold Mines Index for 1, 3 and 5 Years Past performance does not guarantee future results. May 2015 15-279 U.S. Global Investors 68
Slide 69: 2015 To Be a Major Bottom for Mining Cost
2015 To Be a Major Bottom for Mining Cost May 2015 15-279 U.S. Global Investors 69
Slide 70: The Five M's for Gold Miners
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 May 2015 15-279 U.S. Global Investors 70
Slide 71: Kitco News — Gold Game Film Weekly
Kitco News — Gold Game Film Weekly May 2015 15-279 U.S. Global Investors 71
Slide 72: U.S. Global Investors
May 2015 15-279 U.S. Global Investors 72
Slide 73: Disclosures
Disclosures Lipper Fund Awards are earned for a fund’s consistent performance over one or more time periods, based on Lipper’s Consistent Return score. Consistent Return is a quantitative metric that incorporates two characteristics: risk-adjusted return, and the strength of the fund's performance t
Slide 74: Disclosures
Disclosures Alpha is a measure of performance on a risk-adjusted basis. Alpha takes the volatility (price risk) of a mutual fund and compares its risk-adjusted performance to a benchmark index. The excess return of the fund relative to the return of the benchmark index is a fund's alpha. M1 Money Su
Slide 75: Disclosures
Disclosures The Hang Seng Composite Index is a market-cap weighted index that covers about 95% of the total market capitalization of companies listed on the Main Board of the Hong Kong Stock Exchange. The MSCI China Free Index is a capitalization weighted index that monitors the performance of stock
Slide 76: Disclosures
Disclosures Fund portfolios are actively managed, and holdings may change daily. Holdings are reported as of the most recent quarter-end. The following securities mentioned in the presentation were held by one or more of U.S. Global Investors Funds as of 3/31/2015: Air China Limited, Facebook May 20
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