U.S. Global Investors, Inc. ( NASDAQ: GROW), a boutique registered investment advisory firm specializing in natural resources and emerging markets, today reported that revenue increased 34 percent and earnings per share increased 88 percent on a quarter-over-quarter basis for the quarter ended December 31, 2010. Year-over-year revenue increased 32 percent and earnings per share increased 50 percent for the quarter.
In the second quarter of fiscal 2011, U.S. Global recorded net income of $2.3 million, or 15 cents per diluted share, on revenue of $11.9 million.
This compares to net income of $1.3 million, or 8 cents per diluted share, on revenue of $8.9 million in the first quarter of fiscal year 2011. The company earned $1.5 million, or 10 cents per diluted share, on revenue of $9.0 million for the same quarter a year earlier.
Assets under management for SEC-registered funds and other clients stood at $3.04 billion as of December 31, 2010. Total assets under management during the latest quarter averaged $2.85 billion. Average assets under management have increased 50 percent from the lows experienced during the third quarter of fiscal year 2009.Each of the company’s new institutional class of funds experienced positive quarter-over-quarter fund flows during the quarter. These funds were launched in March of 2010. “The midterm elections removed some uncertainty and negative sentiment from the marketplace and based on money flows, it appears that investors are beginning to return to equity markets,” says Frank Holmes. According to data from the Investment Company Institute, the velocity of industry fund flows increased to over $5 billion in December, and equity funds have seen that figure roughly double to more than $10 billion so far in 2011. "Globally, the resource sector has undergone significant consolidation activity over the past 18 months, particularly in the key producing regions of Australia and North America and our funds have benefited,” says Holmes.