U.S. Global Investors, Inc.
), a boutique registered investment advisory firm specializing in natural resources and emerging markets, today recorded net income of $1.5 million, or 10 cents per share, on revenues of $23.85 million for the fiscal year 2012. In the fourth quarter of fiscal year 2012, the company had a net loss of $115,604, or (0.01) cent per share, on revenues of $4.6 million.
For the fiscal year 2011, U.S. Global recorded net income of $7.8 million, or 51 cents per share, on revenues of $41.93 million.
During the fiscal year of 2012, average assets under management were $2.06 billion, compared to $2.82 billion in fiscal 2011. Assets under management at period end stood at $1.62 billion. As of June 30, 2011, assets under management were $2.60 billion.
U.S. Global was not the only asset management firm affected by the exodus out of money and equity funds. According to ICI data, the mutual fund industry has experienced a steady flow of redemptions by investors from equity funds to bond funds. In fact, over the past fiscal year, $171 billion was redeemed from all U.S. equity funds.
“Even though redemptions have been significant, we have strengthened our sales and marketing strategy, expanded our institutional sales team and enhanced technology. At the same time, we have lowered our general and administrative expenses,” says Frank Holmes, CEO of U.S. Global Investors.
“This positions us to take advantage of the greater opportunities we see today, both domestically and globally. For example, the Global Emerging Markets Fund’s portfolio of emerging markets small-cap stocks currently trade at 6 times earnings, have a dividend yield of 4.7 percent, and have revenues growing more than 40 percent. These valuations compare favorably to those of the S&P 500 Index, which trade at 14 times earnings, pay a dividend yield of 2 percent, and grow at 7 percent,” says Holmes. “In addition, many emerging countries are making a concerted effort to strengthen their economies compared to this time last year.”