Opportunities in Resources and Emerging Markets

7/27/2019 Opportunities in Resources and Emerging Markets

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usfunds.com1.800.US.FUNDS September 2013 13-467

Opportunities in Resources and Emerging Markets Frank Holmes, CEO and Chief Investment Officer


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usfunds.comSeptember 2013 13-467

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Performance and Results Oriented

Winner of 29 Lipper performance awards,certificates and top rankings since 2000

(Four out of 13 U.S. Global Investors Funds received Lipper performance awardsfrom 2005 to 2008, six out of 13 received certificates from 2000 to 2007,

and two out of 13 received top rankings from 2009 to 2010.)

Investment leadership results in performance


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Fund Recognition:2 Funds in the Top 12 Percent for 10-Year Period

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Based on Risk-Adjusted Return


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Focus on Education

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43 MFEA STAR Awards for Excellence in Education


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Branding Education

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Investor Alert and Advisor Alert are key communicationtools

Our original, award-winningeducational content is in highdemand from investors via

email, website, social mediaplatforms, apps


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Are YOU Reading U.S. Globals Investor Alert?Jim Cramer Is.

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Tweeted to his loyal 600,000 readers


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The Dow Then And Now

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Presidential Election CycleFollow the Money

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Government Policy Is aPrecursor to Change March 2009


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A Case for Commoditiesin a Rising Rate Environment

Download Your Free

Copy of Our NewSpecial CommoditiesReport at usfunds.com


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Where Does Gold Come From?

Interactive Map at www.usfunds.com

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Thailand Stock Market Up 42 PercentUnder New Prime Minister

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President Obama Meets with Prime Minister Yingluck Shinawatra of Thailand

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Government Policy Model Precursor for Change

President Barack ObamaBen Bernanke, Chairmanof the Federal Reserve


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Emerging World Holds 50% of theGlobal Population, Just 23% of GDP


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Compare E7 vs G7 Money Supply GrowthEmerging World s Money Supply is Robust

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Its Not the Political Party,Its the Political Policies


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Its Not the Political Party,Its the Political PoliciesDeclining Value of the U.S. Dollar Since 1970

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Alan Greenspan Ben Bernanke Richard Nixon


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Follow the Money Equities and Gold Have Outperformed Bonds

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Tipping Points, Melting PointsH2O is Like Money

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Ice Turns to Water at 32, but Stil l H 2O


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Gold Does Not Look Like a Bubble

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f d


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Facebook and Apple Lost MoreMoney for Investors than Gold ETF

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Even After a 2 Year Gold Selloff, Investors Are AheadWith 10 Percent Weighting in Our Gold Funds

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The chart illustrates the performance of a hypothetical $10,000 investment made in the funds and strategy during the depicted time frame. Figures includereinvestment of capital gains and dividends, but the performance does not include the effect of any direct fees described in the funds prospectus (e.g.,short-term trading fees) which, if applicable, would lower your total returns. This hypothetical portfolio is presented for educational and illustrative purposesonly and is not a recommendation to engage in any particular investment strategy. Past performance does not guarantee future results.

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Massive Liquidation of Financial Gold

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Contrarian Tool

Gold Net Commercial Posit ion

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Contrarian Investing Market Vane Bullish Consensus

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Shorting Gold is a Crowded Trade

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Managing Expectations Year-over-Year Rolling Oscillator

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Massive Redemptions in Emerging MarketEquity and Bond Fund Flows

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Fear of QE3 Slowing TriggeredMassive Outflows in Funds

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Ben Bernanke

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Although Yields on Long-Term Bonds and MortgagesRose, Money Markets Remained Unchanged

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The Spotty Track Record of the FederalReserves Economic Projections

Alan Greenspan Ben Bernanke

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Managing Expectations Yearly VolatilityThe Math

View the presentation Anticipate Before You Participate atwww.usfunds.com/investor-resources/publications/research

Roll ing 1 Year

NYSE Arca GoldBUGS Index (HUI) 35.7%

WTI Crude Oil 34.8%

MSCI Emerging Markets (MXEF) 30.6%

S&P 500 Index (SPX) 17.5%

Gold Bullion 15.2%

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

Standard Deviation (as of 6/30/13) based on 10-Year Data

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Card Counting Allowed Managing Expectations Anticipate Before You Participate

Measuring Monthly Volatility

Number of +10% Moves

Number of -10% Moves

Frequency of 10% Moves

NYSE Arca Gold BUGS Index (HUI) 468 323 30%

WTI Crude Oil 401 276 26%

MSCI Emerging Markets (MXEF) 135 174 12%

Gold Bull ion 126 71 8%

S&P 500 Index (SPX) 33 68 4%

Calculated over rolling 20-trading day periods. Based on approximately 2,550 total occurrences over the past 10 years as of 6/30/2013.

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Gold Demand Drivers

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Elvis Presley

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Follow the Money Global LiquidityBoom Good for Gold and Emerging Markets

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Follow the Money UnprecedentedCash Injections from Central Banks

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Low Real Interest Rates HistoricallyFuel Gold, Silver and Oil

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Tipping Point for Gold

2%

Gold & silver perform well inlow or negative real interestrate environments

+2%

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Great Roll Over or Rip Off Creates Opportunity

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Gold and U.S. Real Rates

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Manipulation of CPI Calculation?9.38% vs. 1.75% Debate

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Frugal American HouseholdFinancial Obligations Ratio

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U.S. GDP

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Gold in Rupee Terms Is Up58% Over Past Three Years

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Driver: The Love Trade

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Gold Love Trade Strong Correlation Between Rising Incomes and Gold Price

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M i E i


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Managing Expectations Gold Seasonality

Past performance is no guarantee of future results.

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Holidays Drive Gold Demand

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Will G ld F ll It S l


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Will Gold Follow Its SeasonalPattern This Year?

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September 9, 2013


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All Known ETF Holdings


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All Known ETF Holdingsof Financial Gold Bullion Falls

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Follow the Money (Gold) to China


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Follow the Money (Gold) to ChinaChina Consumes Almost 100% of Worlds Gold Mine Production

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Gold Companies Are Getting Leaner with Write-Downs


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p gof $23.1 Billion, which Has Impacted Gold Equity Funds

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The Replacement Cost for an Ounce Of Gold is $1500


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with $1700 as a Sustainable Number (2012) SoUnder $1500 Many Projects Will Not Come on Stream


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Gold Exploration Spending Has


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p p gSkyrocketed Without True Success

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At $9 billion/year plus replacementrequirements of 90 Million oz/year a discovery cost of $100/oz isneeded. This is low.


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GROW: Best Performer Since June 30


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Past performance is no guarantee of future results.


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Disclosure


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Holdings in the U.S. Global Investors Funds mentioned as a percentage of net assets as of 6/30/2013: Agnico Eagle Mines (Gold and PreciousMetals Fund 2.10%, World Precious Minerals Fund 2.49%); Alamos Gold (Global Resources Fund 0.20%, Gold and Precious Metals Fund1.55%, World Precious Minerals Fund 1.62%); Anglogold Ashanti (Gold and Precious Metals Fund 0.01%, World Precious Minerals Fund0.01%); Apple 0.00%; Aurico Gold (Gold and Precious Metals Fund 0.95%, World Precious Minerals Fund 0.46%); Barrick Gold (Gold and

Precious Metals Fund 2.18%, World Precious Minerals Fund 0.12%); Cia De Minas Buenaventura (Gold and Precious Metals Fund 0.34%);Eldorado Gold (Gold and Precious Metals Fund 0.19%, World Precious Minerals Fund 0.12%); Enric 0.00%; Facebook 0.00%; Franco-Nevada(Gold and Precious Metals Fund 2.30%, World Precious Minerals Fund 0.89%); Gold Fields (Gold and Precious Metals Fund 0.01%, WorldPrecious Minerals Fund 0.01%); Goldcorp (Global Resources Fund 1.89%, Gold and Precious Metals Fund 0.21%, World Precious MineralsFund 0.12%); Harmony Gold (Gold and Precious Metals Fund 1.95%, World Precious Minerals Fund 1.55%); Hecla Mining 0.00%; Iamgold (Goldand Precious Metals Fund 0.07%, World Precious Minerals Fund 0.02%); Impala Platinum 0.00%; iShares Core Total US Bond 0.00%; iSharesRussell 2000 ETF 0.00%; Kinross Gold (Gold and Precious Metals Fund 1.00%, World Precious Minerals Fund 0.14%); Newcrest Mining (Goldand Precious Metals Fund 1.56%); Newmont Mining (Gold and Precious Metals Fund 2.25%, World Precious Minerals Fund 0.06%); Pan

American Silver Corp (Gold and Precious Metals Fund 2.00%, World Precious Minerals Fund 0.25%); Randgold Resources (Global Resources

Fund 1.47%, Gold and Precious Metals Fund 0.06%, World Precious Minerals Fund 0.06%); Royal Gold (Gold and Precious Metals Fund0.65%); Semafo (Gold and Precious Metals Fund 0.17%, World Precious Minerals Fund 0.15%); Silver Wheaton (Gold and Precious MetalsFund 0.35%, World Precious Minerals Fund 0.28%); SPDR Gold Trust (GLD) (Gold and Precious Metals Fund 4.45%, World Precious MineralsFund 2.59%); SPDR S&P 500 ETF (All American Equity Fund 0.34%); SPDR S&P Global Natural Resources ETF 0.00%; Yamana Gold (Goldand Precious Metals Fund 2.37%, World Precious Minerals Fund 1.54%)

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Disclosures


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Investment Objective: The Gold and Precious Metals Fund is an actively managed mutual fund that focuses on gold and preciousmetals producing companies. The World Precious Minerals Fund is an actively managed fund that focuses on junior and intermediateprecious metals exploration companies around the world.

The SPDR S&P 500 ETF Trust (SPY) is a passively managed fund that, before expenses, seeks to correspond generally to the priceand yield performance of the S&P 500 Index.

Liquidity: The Gold and Precious Metals Fund and World Precious Minerals Fund can be purchased or sold at a net asset value(NAV) determined at the end of each trading day. The SPDR S&P 500 ETF can be purchased or sold intraday. These purchases andredemptions may generate brokerage commissions and other charges not reflected in the ETFs published expense ratio.

Safety/Fluctuations of principal/return: Loss of money is a risk of investing in the Gold and Precious Metals Fund, the WorldPrecious Minerals Fund and the SPDR S&P 500 ETF. Shares of the three securities are subject to sudden fluctuations in value. TheSPDR S&P 500 ETF may also be subject to bid-ask premiums or discounts to net asset value (NAV) that could adversely affect ashareholders actual returns.

Tax features: The Gold and Precious Metals Fund and World Precious Minerals Fund intend to make distributions that may be taxedas ordinary income or capital gains. Under current federal law, long-term capital gains for individual investors in the fund are taxed at amaximum rate of 15%.

For the SPDR S&P 500 ETF, long-term capital gain distributions will result from gains on the sale or exchange of capital assets held bythe fund for more than one year. Any long-term capital gains distributions you receive from a fund are taxable as long-term capital gainregardless of how long you have owned your shares. Long-term capital gains are currently taxed at a maximum of 15%. Informationprovided here is neither tax nor legal advice and is general in nature. Federal and state laws and regulations are subject to change.

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Opportunities in Resources and Emerging Markets