U.S. Global Investors€¦ · 2009 2010 Revenue $23.1M $35 ... Year ended June 30 Financial Snapshots Fiscal Year . September 2010 10-506 6 2009 2010 Revenue $6.5M $8.6M Net Income

www.usfunds.com 1.800.US.FUNDS

U.S. Global Investors Searching for Opportunities, Managing Risk

September 10, 2010 10-506

Frank E. Holmes CEO and CIO

Susan McGee President and General Counsel

Catherine Rademacher CFO

Terry Badger Director of Communications

GROW Earnings FY10

www.usfunds.com September 2010 10-506 2

Today’s Presenters

Frank Holmes Susan McGee Catherine Rademacher Terry Badger


Forward-Looking Statements During this webcast we may make forward-looking statements about our relative business outlook. Any forward-looking statements and all other statements made during this webcast that don’t pertain to historical facts are subject to risks and uncertainties that may materially affect actual results. Please refer to our press release and the corresponding Form 10-K filing for more detail on factors that could cause actual results to differ materially from any described today in forward-looking statements. Any such statements are made as of today, and U.S. Global Investors accepts no obligation to update them in the future.


GROW Strengths

  “Go-to” stock for exposure to emerging markets and resources

  Debt-free, strong balance sheet with a reflexive cost structure

  Monthly dividend and return on equity discipline


2009 2010

Revenue $23.1M $35.0M

Net Income $(2.2M) $5.3M

EPS (diluted) $(0.15) $0.35

Year ended June 30

Financial Snapshots

Fiscal Year


2009 2010

Revenue $6.5M $8.6M

Net Income $1.0M $1.0M

EPS (diluted) $0.06 $0.06

Quarter ended June 30*

Financial Snapshots

* unaudited

YoY Quarters


March 31, 2010 June 30, 2010

Revenue $9.4M $8.6M

Net Income $1.5M $1.0M

EPS (diluted) $0.10 $0.06

Quarter ended*

Financial Snapshots

Sequential Quarters

* unaudited


Assets Under Management

(Quarter-end average, in billions)


Calendar 2Q09 vs. 2Q10

U.S. Global Investors (GROW) 21%

Industry Peers* 33%

* Latest quarterly results filed by Affiliated Managers, Alliance Bernstein, BlackRock, Calamos Asset Mgmt, Cohen & Steers, Federated Investors, Franklin Resources, Invesco, Janus Capital Group, Legg Mason, Pzena Investment Mgmt, T. Rowe Price and Waddell & Reed.

Peer Comparison – AUM Growth


Net Income EPS U.S. Global Investors

(GROW) 0% 0%

Industry Peers** 57% 49%

* Fiscal year for U.S. Global Investors ends June 30, while most peers have December 31 fiscal year-end.

** Latest quarterly results filed by Affiliated Managers, Alliance Bernstein, BlackRock, Calamos Asset Mgmt, Cohen & Steers, Federated Investors, Franklin Resources, Invesco, Janus Capital Group, Pzena Investment Mgmt, T. Rowe Price and Waddell & Reed.

Peer Comparison – Earnings

Calendar 2Q09 vs. 2Q10*


1-Year 3-Year CAGR**

U.S. Global Investors (GROW) 15% 12%

Industry Peers* 10% 13%


** Compounded Annual Growth Rate Trailing twelve months, quarter ending June 30, 2010

Source: Bloomberg

Peer Comparison – Return on Equity


LT debt to total capital (average)

GROW 0%

Industry Peers* 28%

Major Banks** 67%


** Latest quarterly results filed by: Bank of America, Citigroup, JP Morgan, Wells Fargo, U.S. Bancorp, Morgan Stanley, Goldman Sachs.

Source: Baseline, latest available figures

Peer Comparison – Risk Leverage for Financials

www.usfunds.com September 2010 10-506

S&P Financials vs. S&P 500

13

Source: Bloomberg


Russell 2000 vs. S&P 500 — Domino Effect

14

Source: Bloomberg


Significant Events FY10

  Institutional Shares

  Institutional AUM

  Expense Caps

  GROW Dividends


New Developments on Our Website

16

Take this quiz and more at

www.usfunds.com


Investor Alert and Frank Talk

17


Income Statement


Income Statement


Income Statement


FY10 by Quarter


Balance Sheets


Balance Sheets


Opportunities in Gold and Emerging Markets


No Bubble in Gold

25


Deflation vs Inflation Debate

26


Even with Low Inflation, Gold Rises to All Time High

27


Low Real Interest Rates Fuel Gold & Silver

28


Why More Investors Like Gold

29


Less Debt in Emerging Economies

30


E7 vs G7

31


E7 vs G7

32


Gold Rises in Many Currencies

33


Gold Has Performed Well, With Low Volatility Over Past 10 Yrs

  Gold returns have substantially outperformed equities on a 3yr, 5yr and 10yr horizon (based on data in table below – see note for source).

  Historically, the volatility of gold returns has been lower than S&P 500 volatility.

  Gold has had a zero to modestly negative correlation to equities, providing strong portfolio diversification benefits.

34


Gold Seasonality


Holidays Drive Gold Demand

36


Anticipate Before You Participate

View the presentation “Anticipate Before You Participate” at www.usfunds.com/investor-resources/publications/research

Rolling 1 Year

U.S. Global Investors (GROW) 113.0% NYSE Arca Gold BUGS Index (HUI) 42.3%

Crude Oil 37.7% MSCI Emerging Markets (MXEF) 33.5%

S&P 500 Index (SPX) 19.6%

Gold Bullion 14.8%

12-month rolling volatility of price action over 10 year period

Standard Deviation (as of 6/30/10) based on 10-Year Data


Emerging Market Oil Demand Growth Rates

38


China Crude Oil Imports

39


China’s Metals Demand Stabilizing

40


China’s Industry Moving Inland

41


Russia Real Annual Growth Rates, 2010 est. – 2015 est.

42


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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 by U.S. Global Brokerage, Inc.

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 over short periods of time and may be affected by unpredicted international monetary and political policies. We suggest investing no more than 5% to 10% of your portfolio in these sectors.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.

The S&P 500 Financials Index is a capitalization-weighted index. The index was developed with a base level of 10 for the 1941-43 base period. Advanced G-20 economies references members of the G-20 whose economies are considered by the IMF to be developed. This includes Canada, United States, Austria, Belgium, France, Greece, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, United Kingdom, Australia, Japan and Korea. Emerging G-20 economies references members of the G-20 whose economies are considered by the IMF to be emerging. This includes Brazil, India, Indonesia, Hungary, Russia and Saudi Arabia. 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 also known as historical volatility. The Consumer Price Index (CPI) is one of the most widely recognized price measures for tracking the price of a market basket of goods and services purchased by individuals. The weights of components are based on consumer spending patterns. The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The NYSE Arca Gold BUGS (Basket of Unhedged Gold Stocks) Index (HUI) is a modified equal dollar weighted index of companies involved in gold mining. The HUI Index was designed to provide significant exposure to near term movements in gold prices by including companies that do not hedge their gold production beyond 1.5 years. The Russell 2000 Index is a U.S. equity index measuring the performance of the 2,000 smallest companies in the Russell 3000. The Russell 3000 Index consists of the 3,000 largest U.S. companies as determined by total market capitalization. The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies.

Documents

U.S. Global Investors€¦ · 2009 2010 Revenue $23.1M $35 ... Year ended June 30 Financial Snapshots Fiscal Year . September 2010 10-506 6 2009 2010 Revenue $6.5M $8.6M Net Income