U.S. Global Investors, Inc. (Nasdaq: GROW), a boutique registered investment adviser specializing in emerging markets and natural resources, announces today that it has reduced the expense ratio on the Global MegaTrends Fund (MEGAX) by 27.5 percent.
The fund’s expense ratio has been capped at 1.85 percent on an annualized basis through October 31, 2008, or such later date as the adviser determines. Prior to the expense cap, the fund’s uncapped expense ratio was 2.55 percent.
The Global MegaTrends Fund is a growth-oriented fund that invests primarily in equities that stand to benefit from dominant long-term trends, both established and emerging, within the global economy. U.S. Global Investors has identified global infrastructure as such a trend, and thus it is the main focus of the fund.
“As the Global MegaTrends Fund has attracted increasing interest from those who see the vast opportunities presented by the global infrastructure theme, we felt it was appropriate to cap its expenses to benefit current and future shareholders,” says Frank Holmes, U.S. Global’s CEO and chief investment officer.
“Our infrastructure focus is on the global boom in construction in both developed and emerging markets, and within that trend there are many promising investment opportunities in the companies that are supplying basic materials, metals, energy and a wide range of services,” Mr. Holmes says. “Our experience and expertise in the natural resources and emerging markets sectors are tremendous assets that we are applying to the global infrastructure theme.
“Anyone who travels to China, India, Brazil or the Middle East quickly sees the enormous scale of the infrastructure build-out, which has been estimated to require spending of $40 trillion worldwide over the next couple of decades,” Mr. Holmes continues. “In the case of China and India, it wasn’t that long ago that both were extremely poor and economically isolated. Today they represent 40 percent of the world’s population and their economies are growing at about 10 percent a year. Both countries are rapidly urbanizing and recognize that they need to expand their roads, aviation networks, telecom systems and other infrastructure to reflect their changing demographics. This is a multi-decade process, which convinces us that this is a strong growth opportunity over the long term.”
Total Annualized Returns as of 3-31-08
| Fund | One-Year | Five-Year | Ten-Year |
Gross |
Capped | |||||
| Global MegaTrends | 13.15% | 15.75% | 4.78% | 2.55% | 1.85% |
Gross expense ratio as stated in the most recent prospectus. Effective May 12, 2008, the Adviser has contractually limited total fund operating expenses (exclusive of acquired fund fees and expenses of 0.01%) not to exceed 1.85% for the Global MegaTrends Fund on an annualized basis through October 31, 2008, or such later date as the Adviser determines. Performance data quoted above is historical. Past performance is no guarantee of future results. Results reflect the reinvestment of dividends and other earnings. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Performance does not include the effect of any fees described in the fund’s prospectus (e.g. short-term trading fees of up to 0.25%) which, if applicable, would lower your total returns. Obtain performance data current to the most recent month-end at www.usfunds.com or 1-800-US-FUNDS.
About U.S. Global Investors, Inc.
U.S. Global Investors, Inc. (www.usfunds.com) is a registered investment adviser that focuses on profitable niche markets around the world. Headquartered in San Antonio, Texas, the company offers financial solutions and provides transfer agency and other services to U.S. Global Investors Funds, U.S. Global Accolade Funds and other clients.
With an average of $5.50 billion in assets under management in the quarter ended March 31, 2008, U.S. Global Investors manages domestic and offshore funds offering investment options from emerging markets to money markets.
Please consider carefully the 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.
Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk. This news release may include certain “forward-looking statements” including statements relating to expectations regarding market conditions. These statements involve certain risks and uncertainties. There can be no assurance that such statements will prove accurate and actual results and future events could differ materially from those anticipated in such statements. All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.
Contacts:
Terry Badger, 210-308-1221
Director
of Communications
tbadger@usfunds.com
