U.S. Global Investors, Inc.
), a boutique registered investment advisory firm specializing in natural resources and emerging markets, today reported that revenues for the fiscal year ended June 30, 2011 increased 20 percent and earnings per share increased 46 percent on a year-over-year basis.
For the fiscal year 2011, U.S. Global recorded net income of $7.8 million, or 51 cents per share, on revenues of $41.9 million. This compares to net income of $5.3 million, or 35 cents per share, on revenues of $35.0 million for the 2010 fiscal year. The company earned $1.5 million, or 11 cents per share, on revenues of $9.7 million in the fourth quarter of fiscal year 2011.
Assets under management at period end stood at $2.6 billion as of June 30, 2011, an 8 percent increase from $2.4 billion at June 30, 2010.
Average assets under management were $2.82 billion for the fiscal year ended June 30, 2011, an increase of 10 percent from $2.56 billion for the fiscal year ended June 30, 2010. Sequentially, average assets under management decreased from the previous quarter, in-line with the overall decline in global markets which began in April.
“Excluding the most recent quarter, year-over-year assets under management benefited as the natural resources sector fueled the global recovery over the past year,” says Frank Holmes, U.S. Global Investors CEO. “This strength led to the company’s strong performance and growth in assets under management during the 2011 fiscal year.”
Increase in AUM Drives Growth in Revenues
The increase in revenue is primarily a result of increased assets under management in the natural resources funds, an increase in offshore fund advisory fees and an increase in fund performance fees. Performance fees are received when a fund outperforms its benchmark by five or more percentage points for the previous 12 months.