U.S. Global Investors, Inc. (
), a boutique registered investment adviser offering actively managed mutual funds for investors and financial advisors who seek alpha in gold, resources and emerging markets, announced improvements to benefit shareholders and help drive asset growth.
One change is the elimination of all redemption fees charged to equity fund shares held longer than seven days. For those equity fund shares held seven days or less, fees have been substantially reduced up to 90 percent, resulting in a charge of 0.05 percent, or a fee of $5 per $10,000 investment.
Redemption fees were historically used across the mutual fund industry to discourage market timers, but improvements in technology and pricing practices have reduced the risk. In the interest of protecting shareholders with a long-term investment horizon, U.S. Global continues to monitor for disruptive short-term market timers.
“We are pleased to make this change while, at the same time, maintaining our high standards of regulatory oversight and exceptional service for our investors,” says Frank Holmes, U.S. Global Investors CEO. “We believe the move to substantially reduce fees makes it easier for our shareholders and our advisors to invest in the funds, increasing the attractiveness of the funds in a highly competitive arena.”
$1 Million Minimum Initial Investment for Institutional Share Class Should Encourage More Institutional Investors
The minimum initial investment for the institutional share class is now $1 million, reduced from $5 million. U.S. Global offers three
institutional share class funds, including the Global Resources (PIPFX), World Precious Minerals (UNWIX) and MegaTrends (MEGIX) Funds. This lower initial investment broadens the opportunity for registered investment advisors and other institutional investors.
“Smaller retail accounts are more costly for fund families to service due to the regulatory monitoring and distribution needs. Institutional accounts benefit from economies of scale, which translates into a lower expense ratio,” says Holmes.