emerging markets with strong dividends...emerging markets with strong dividends frank holmes, ceo...

usfunds.com 1.800.US.FUNDS July 2013 • 13-385

Emerging Markets with Strong Dividends Frank Holmes, CEO and Chief Investment Officer

usfunds.com July 2013 13-385

usfunds.com

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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 awards from 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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Fund Recognition: Lipper Leaders

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Lipper ratings for Preservation reflect funds’ historical loss avoidance relative to other funds within the same asset class, as of 6/30/2013. Preservation ratings are relative, rather than absolute, measures, and funds named Lipper Leaders for Preservation may still experience losses periodically; those losses may be larger for equity and mixed equity funds than for fixed income funds. Lipper ratings for Tax Efficiency reflect funds’ historical success in postponing taxable distributions relative to peers as of 6/30/2013.Tax Efficiency offers no benefit to in tax-sheltered accounts such as investors retirement plans. Past performance does not guarantee future results.

Global Emerging Markets Fund

Near-Term Tax Free Fund


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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 communication tools

 Our original, award-winning educational content is in high demand from investors via email, website, social media platforms, apps


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Are YOU Reading U.S. Global’s Investor Alert? Jim Cramer Is.

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Tweeted to his loyal 600,000 readers


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Thailand Stock Market vs. S&P 500

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Thailand Stock Market Up 42 Percent Under New Prime Minister

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President Obama Meets with Prime Minister Yingluck Shinawatra of Thailand

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Prime Minister Shinawatra is Thailand’s first female Prime Minister, and the youngest Thai Prime Minister in over 60 years.


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Metaphor: Tipping Points, Melting Points H2O is Like Money

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Ice Turns to Water at 32º, but Still H2O


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7 Billion People — Tipping Point Centuries to Decades to a Decade for a Billion People

1970


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Government Policy Model — Precursor for Change

President Barack Obama Ben Bernanke, Chairman of the Federal Reserve


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Emerging World Holds 50% of the Global Population, Just 22% of GDP


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Compare E7 vs G7 Money Supply Growth Emerging World s Money Supply is Robust

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Demographics is the Key – Super Shift Rural to Urban

  Half of the global population (>3 billion) is estimated to live in urban areas   Projected urban population is larger than the entire world population in 1965 Deng Xiaoping

1978


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Perpetual Global Central Bank Stimulus

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Implications of Global Easing Policies

  Higher commodity prices   Housing & auto rebound   Fund flows into risky assets

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Not Just the Fed: There s Been a Global Easing Cycle

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G7 — Easy Money, Inflation in Check

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E7— Emerging Markets Remain Attractive

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Emerging Markets Have Higher Saving and Investment Rates than G7

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E7 — Emerging Market Equities Offer Attractive Valuations

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Predicted Increase in Centa-Millionaires from 2011 – 2016

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American Dream Trade Massive Urbanization Trend in India and China

2020


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China/India is 40% of the World Population but Only 20% of World GDP

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China and India GDP Projected to Be Larger than G7 Countries’ GDPs

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+$4 Trillion Infrastructure Spending Globally

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Chindia – Rising Middle Class

Source: padanisaa.blogspot.com

2020


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China GDP Will Almost Equal U.S. GDP by 2025

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China’s Urban Residency Reform to Benefit Property Sales in Third Tier Cities

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Official Urban Residence Status (Hukou) Lags Urban Population

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High-Speed Rail is a Growth Opportunity for U.S. Companies

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2014


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Mobile Internet Adoption 4.5x Faster than Regular Internet in China

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Accelerating Smartphone Penetration in China Should Benefit Handset Component Suppliers

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Record Oil Demand in China

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Chinese Economy: Bottomed Out?

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Strong Dollar – Falling Commodity Prices

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Price Reversal — Chinese Stocks Undervalued

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Chinese Stocks Looking Like a Bargain October 22, 2012


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China, The USD and Commodity Prices – High Correlation

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Chinese Commodity Demand

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China s GDP Growth Tends to Stabilize in Fifth Year of Leadership Transition Cycle

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Asian Tigers

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ASEAN Population vs. Trade Partner Countries/Regions

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ASEAN is Association of Southeast Asian Nations


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Urbanization Remains Low in Southeast Asia

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Growing Labor Force in the ASEAN Area

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ASEAN is Association of Southeast Asian Nations


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Robust Growth of Visitor Arrivals in Southeast Asia to Benefit Tourism-Related Sectors

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Eastern European Countries Among the Better Values

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Growth in Turkey

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Manufacturing Output in Turkey Stronger Than Europe

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Turkish Stocks Still Attractive After the Selloff

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Expected Rate Hikes Causing Correction in Turkish Stocks

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Poland’s PMI Bouncing Back

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Contrarian Investing Model — Buy Signal

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Top 10 Equity Markets’ Total Return Since QE1

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Follow the Emerging Markets Money

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“Follow the Money” — Retail vs. Institutional

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Retail

Inst


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“Follow the Money” — Passive vs. Active

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ETFs


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Formation of Capital Model Is Changing Fund Flows and Growth in Assets 2008-2012

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Source: Investment Company Institute


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Formation of Capital Model Is Changing A Year Ago, Investors Shunned Stocks

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“Follow the Money” — Americans Have Been the Largest Investor in Emerging Markets

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“Follow the Money” — China and Brazil Have Received the Bulk of Funds

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Reasons for Active Management — Annual Rotation in Leadership

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Past performance does not guarantee future results.


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Global Resources Fund (PSPFX)

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Average Dividend Yield of the Dividend-Paying Stocks and Bonds in the Fund as of 6/30/2013 Global Resources Fund 3.18%


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Emerging Europe Fund (EUROX)

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Average Dividend Yield of the Dividend-Paying Stocks and Bonds in the Fund as of 6/30/2013 Emerging Europe Fund 4.95%


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Gold and Precious Metals Fund (USERX)

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Average Dividend Yield of the Dividend-Paying Stocks and Bonds in the Fund as of 6/30/2013 Gold and Precious Metals Fund 4.01%


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Global Emerging Market Fund (GEMFX)

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Average Dividend Yield of the Dividend-Paying Stocks and Bonds in the Fund as of 6/30/2013 Global Emerging Markets Fund 6.08%


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China Region Fund (USCOX)

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Average Dividend Yield of the Dividend-Paying Stocks and Bonds in the Fund as of 6/30/2013 China Region Fund 2.15%


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Come Visit Us at

Facebook: www.facebook.com/usfunds Linkedin: www.linkedin.com/company/u.s.-global-investors

Twitter: www.twitter.com/usfunds

Frank Talk: www.usfunds.com/franktalk

Investor Alert: www.usfunds.com/alert


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Fund Performance

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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. Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk. By investing in a specific geographic region, a regional fund’s returns and share price may be more volatile than those of a less concentrated portfolio. 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. The Emerging Europe Fund invests more than 25% of its investments in companies principally engaged in the oil & gas or banking industries. The risk of concentrating investments in this group of industries will make the fund more susceptible to risk in these industries than funds which do not concentrate their investments in an industry and may make the fund’s performance more volatile. Because the Global Resources Fund concentrates its investments in a specific industry, the fund may be subject to greater risks and fluctuations than a portfolio representing a broader range of industries. Tax-exempt income is federal income tax free. A portion of this income may be subject to state and local income taxes, and if applicable, may subject certain investors to the Alternative Minimum Tax as well. Each tax free fund may invest up to 20% of its assets in securities that pay taxable interest. Income or fund distributions attributable to capital gains are usually subject to both state and federal income taxes. Bond funds are subject to interest-rate risk; their value declines as interest rates rise. The tax free funds may be exposed to risks related to a concentration of investments in a particular state or geographic area. These investments present risks resulting from changes in economic conditions of the region or issuer.

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Disclosures

Morningstar Ratings are based on risk-adjusted return. The Morningstar Rating for a fund is derived from a weighted-average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. Past performance does not guarantee future results. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Lipper ratings are subject to change every month and are based on an equal-weighted average of percentile ranks for the Preservation and Tax Efficiency over three-, five-, and ten-year periods (if applicable). The highest 20% of funds in each peer group are named Lipper Leader or a score of 5, the next 20% receive a score of 4, the middle 20% are scored 3, the next 20% are scored 2, and the lowest 20% are scored 1. Near-Term Tax Free Fund, in Lipper’s Short-Intermediate Municipal Debt classification, received the following ratings for the 3-, 5-, and 10-year periods, respectively: Preservation: 5 (4530 funds), 5 (3928 funds) and 5 (2731 funds). Tax Efficiency: 5 (42 funds), 5 (34 funds) and 5 (26 funds). The Global Emerging Markets Fund, in Lipper’s Emerging Markets classification, received the following ratings for the 3- and 5-year periods, respectively. Tax Efficiency: 5 (355 funds) and 5 (259 funds). Lipper ratings are not intended to predict future results, and Lipper does not guarantee the accuracy of this information. More information is available at www.lipperweb.com. Lipper Leader Copyright 2013, Reuters, All Rights Reserved. The Bangkok SET Index is a capitalization-weighted index of all the stocks traded on the Stock Exchange of Thailand. The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies. The Reuters/Jefferies CRB Index is an unweighted geometric average of commodity price levels relative to the base year average price. 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 Istanbul Stock Exchange National 100 Index (XU100) is a capitalization-weighted index composed of National Market companies except investment trusts. 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.

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Disclosures

M1 Money Supply includes funds that are readily accessible for spending. M2 Money Supply is a broad measure of money supply that includes M1 in addition to all time-related deposits, savings deposits, and non-institutional money-market funds. M3 money supply is the broadest monetary aggregate, including physical currency, demand accounts, savings and money market accounts, certificates of deposit, deposits of eurodollars and repurchase agreements. 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. Holdings in the U.S. Global Investors Funds mentioned as a percentage of net assets as of 6/30/2013: General Electric 0.00%; McDonalds 0.00%; Starbucks (All American Equity Fund 2.49%)

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emerging markets with strong dividends...emerging markets with strong dividends frank holmes, ceo...

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