This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

U.S. Global Investors Reports Results For The Second Quarter Of 2012 Fiscal Year

U.S. Global Investors, Inc. ( NASDAQ: GROW), a boutique registered investment advisory firm specializing in natural resources and emerging markets, recorded net income of $409,382, or 3 cents per share, on revenues of $5.88 million for the quarter ended December 31, 2011.

This compares to net income of $2.33 million, or 15 cents per share, on revenues of $11.91 million for the second quarter of fiscal year 2011. A swing in performance fees was a significant factor that impacted revenue and earnings during the quarter ended December 31, 2011.

Revenues were also impacted by a decline in assets under management. Average assets under management were $2.08 billion for the quarter ended December 31, 2011, a 27.1 percent decrease from the same quarter a year ago. Sequentially, average assets under management decreased 15.4 percent from the previous quarter. Period-end assets under management stood at $1.89 billion as of December 31, 2011, a 37.9 percent decrease from $3.04 billion at December 31, 2010.

“The second half of last year was similar to 2008 as uncertainty surrounding the U.S. debt ceiling and the unraveling of the sovereign debt crisis in Europe spiked,” says Frank Holmes, U.S. Global Investors CEO. “This lack of confidence caused the selling of equities across the board despite roughly half of S&P 500 companies experiencing revenue growth of 10 percent or greater.”

According to the Investment Company Institute (ICI), investors pulled more than $130 billion from equity mutual funds during 2011. This represents the second-largest withdrawal of funds in the past 25 years and is four times the amount withdrawn in 2010. According to USA Today in December, 92 percent of the 8,036 U.S. diversified stock funds tracked by Lipper posted a loss in 2011.

Emerging markets and natural resources-related equities also fell victim to this uncertainty. The leading exchanges in Brazil, Russia, India and China all experienced double-digit declines in 2011. The MSCI Emerging Markets Index decreased 18 percent for the year, and the SPDR S&P Global Natural Resources ETF (GNR), which tracks a global basket of commodity-related equities, declined 17 percent.

Stock quotes in this article: GROW 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs