“We believe that active management is the key to success in commodity and natural resource investing,” says Holmes. “This is how we’ve been able to generate such tremendous alpha for our shareholders.” Alpha measures the excess return of a fund relative to its benchmark.The managers of the Global Resources Fund recently shared their outlook for 2011. Click here to see how they are positioning the portfolio for the future. In addition to the Global Resources Fund outperforming the S&P 500 for the past decade, three other U.S. Global funds generated attractive returns relative to the general market. Four of U.S. Global’s emerging market and resource-oriented funds ranked among the top 45 funds (top 1 percent) in the entire mutual fund universe over the past decade.
|10-Year Rank||5-Year Rank||1-Year Rank|
|Gold and Precious Metals Fund (USERX)||13||39||193|
|World Precious Minerals Fund (UNWPX)||7||48||72|
|Global Resources Fund (PSPFX)||45||622||142|
|Eastern European Fund (EUROX)||40||8,116||4,584|
|Total Number of Funds||8,647 funds||14,686 funds||21,767 funds|
“The long-term performance of these funds is a testament to the epic transformation taking place in the emerging world. The world is significantly different from the 1970s when China and India were isolationists,” Holmes says. “Today countries like China, India, Brazil and Russia have embraced the concept of free markets and still have a long way to go before they catch up with the developed world.”“The long-term supply restrictions, the impact of a global population poised to push above the 7 billion mark, and the infrastructure needed to support those people should continue to be a catalyst for strong commodity prices,” says Holmes. “We believe global resources are a key component of a diversified portfolio and it’s important for investors to recognize the power of diversification using natural resources and emerging markets,” says Holmes. “Research from Roger Gibson, the best-selling author of Asset Allocation: Balancing Financial Risk, shows that $1 invested in 1971 through December 2009 would have been worth $51.79 if it were split 50-50 among U.S. stocks and commodity-linked securities and rebalanced each year. If invested solely in one or the other, that dollar would have been worth only $36.26 or $32.07, respectively,” says Holmes. Total Annualized Returns as of December 31, 2010
|Fund||One-Year||Five-Year||Ten-Year||Gross Expense Ratio|
|Global Resources Fund (PSPFX)||38.00||%||8.50||%||19.49||%||1.63||%|
|World Precious Minerals Fund (UNWPX)||45.38||%||19.40||%||28.40||%||1.90||%|
|Gold and Precious Metals Fund (USERX)||36.88||%||20.19||%||26.49||%||1.70||%|
|Eastern European Fund (EUROX)||18.66||%||2.78||%||20.35||%||1.98||%|
|S&P 500 Index||15.06||%||2.29||%||1.41||%||N/A|
|Lipper Global Natural Resources Category||13.61||%||7.93||%||13.85||%||N/A|
Please consider carefully a fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a fund prospectus by visiting www.usfunds.com or by calling 1-800-US-FUNDS (1-800-873-8637). Read it carefully before investing. Distributed by U.S. Global Brokerage, Inc.Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk. Because the Global Resources Fund concentrates its investments in a specific industry, the fund may be subject to greater risks and fluctuations than a portfolio representing a broader range of industries. Gold, precious metals, and precious minerals funds may be susceptible to adverse economic, political or regulatory developments due to concentrating in a single theme. The prices of gold, precious metals, and precious minerals are subject to substantial price fluctuations over short periods of time and may be affected by unpredicted international monetary and political policies. We suggest investing no more than 5% to 10% of your portfolio in these sectors. All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies. Diversification does not protect an investor from market risks and does not assure a profit.